NASDAQ$RCKY

Rocky Brands Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Net sales increased, driven by cost-saving initiatives and strategic restructuring, leading to higher operating income and net income.

Rocky Brands reported a 2.2% increase in net sales to $112.9 million. Operating income saw a significant increase of 92% to $8.0 million. The company's net income was $2.6 million, or $0.34 per diluted share, compared to a net loss in the same period last year. Inventories decreased by 26% year-over-year.

  • Net sales increased by 2.2% to $112.9 million, or 7.6% excluding the Servus brand.
  • Operating income increased by 92% to $8.0 million.
  • Net income was $2.6 million, or $0.34 per diluted share, compared to a net loss of $0.4 million, or $0.05 per diluted share, in the first quarter of 2023.
  • Inventories decreased by 26% year-over-year to $165.1 million.

Headline financials

Total Revenue

$113M

Previous: $110M+2.2%
EPS

$0.34

Previous: -$0.12+383.3%
Gross Margin

39.1%

Previous: 39.6%-1.3%
OpEx % of Sales

32.0%

No prior period
Operating Margin

7.1%

No prior period
Inventories

$165M

No prior period
Capital Expenditures

-$280K

Previous: -$431K+35.0%
Free Cash Flow

$2.27M

Previous: -$829K+373.8%
Net Income

$2.55M

Previous: -$398K+740.7%
Operating Income

$7.98M

Previous: $4.16M+92.1%
Gross Profit

$44.1M

Previous: $43.8M+0.9%
Cash & Equivalents

$3.06M

Previous: $4.95M-38.2%
Total Assets

$467M

Previous: $539M-13.4%
Stock-Based Comp

$339K

Previous: $347K-2.3%

Revenue & EPS history

Rocky Brands · Revenue · Quarterly

$113M

Q1 2024+2.2%vs Q1 2023
Beat estimate in 9 of 14 quarters(64%)
ActualEstimate

Revenue by segment

Rocky Brands · $126M total across 3 segments · Q3 2023

  • Wholesale
    $99.7M-17.4%
  • Retail
    $24.5M+4.7%
  • Contract Manufacturing
    $1.4M-57.6%

Forward guidance

The company expects interest savings of approximately $2.9 million for the remainder of 2024, offset by fees and amortization of approximately $2.6 million. In 2025, the combined transactions are expected to generate a combined annualized savings of approximately $4.4 million.

Tailwinds

  • Anticipated interest savings of approximately $2.9 million for the remainder of 2024 from debt refinance.
  • Expected combined annualized savings of approximately $4.4 million in 2025 due to debt refinance.
  • Upsized, amended and extended ABL facility comprised of a $175 million revolving credit facility and a $50 million term facility.
  • Proceeds from the refinance were used to retire the Company’s existing senior secured term loan facility.
  • The company is well positioned to generate enhanced profitability and increased shareholder value as 2024 unfolds.

Headwinds

  • Fees and amortization associated with the retirement of the senior secured term loan facility of approximately $2.6 million will offset some savings in 2024.
  • Macroeconomic outlook remains uncertain.
  • Risks related to interest rate changes.
  • The amount of the Company's indebtedness.
  • Risks inherent in the Company’s business as set forth in periodic reports filed with the Securities and Exchange Commission.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

+3.0%

Avg return

Earnings day

+6.3%

Avg return

5 days after

+6.7%

Avg return

30 days after

62%

40 / 65 earnings

Positive

+53.3%

Q1 2025

Best reaction

-26.6%

Q3 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.4%+3.1%+2.6%
Q4 2025+37.8%+35.3%+13.2%
Q3 2025-2.0%-4.7%+1.5%
Q1 2025+53.3%+34.6%+63.1%
Q4 2024-10.9%-19.6%-25.4%
Q3 2024-26.6%-25.1%-21.7%
Q2 2024-2.8%-16.7%-10.7%
Q1 2024+22.2%+29.7%+37.4%
Q4 2023-18.4%-14.4%-11.3%
Q3 2023+47.5%+78.8%+135.2%
Q2 2023+2.4%+1.6%-11.7%
Q1 2023-26.6%-26.7%-33.6%
Q4 2022+1.4%-2.2%-15.9%
Q3 2022+11.4%+14.5%+42.3%
Q2 2022-15.7%-18.0%-23.5%
Q1 2022+1.9%-5.5%-4.8%
Q4 2021+23.2%+19.5%+7.9%
Q3 2021-23.2%-24.8%-38.1%
Q2 2021-14.0%-7.9%-15.0%
Q1 2021+13.5%+18.9%-0.7%
Q4 2020+13.6%+35.2%+39.8%
Q3 2020+4.5%+11.1%+27.1%
Q2 2020+49.7%+27.3%+30.2%
Q1 2020+4.0%-6.5%+1.6%
Q4 2019+5.6%-1.4%-24.3%
Q3 2019-13.6%-13.3%-15.4%
Q2 2019+4.8%+9.0%-2.7%
Q1 2019+7.5%+5.9%+6.0%
Q4 2018+5.3%+8.5%-12.4%
Q3 2018+3.0%+7.8%-0.9%
Q2 2018+22.0%+15.3%+13.8%
Q1 2018+6.2%+10.0%+21.6%
Q4 2017+9.4%+12.1%+25.2%
Q3 2017+1.4%+24.9%+34.4%
Q2 2017+13.4%+10.6%+6.3%
Q1 2017+10.6%+27.2%+27.6%
Q4 2016-0.9%+1.8%-2.2%
Q3 2016+2.9%+4.4%+8.7%
Q2 2016-9.1%-12.9%-13.8%
Q1 2016-11.6%
Q4 2015-6.2%
Q3 2015-15.8%
Q2 2015-10.6%
Q1 2015+0.6%
Q4 2014+29.4%
Q3 2014-1.7%
Q2 2014+4.0%
Q1 2014-0.8%
Q4 2013+0.5%
Q3 2013-21.2%
Q2 2013+13.6%
Q1 2013+3.3%
Q4 2012-10.0%
Q3 2012-1.5%
Q2 2012-10.6%
Q1 2011+3.1%
Q1 2012+1.9%
Q4 2011-0.8%
Q3 2010-2.0%
Q3 2011-2.0%
Q2 2011+3.4%
Q2 2010+3.4%
Q4 2009+3.4%
Q4 2010+3.4%
Q1 2010+3.6%

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