Rocky Brands(RCKY)2025-02-25 21:11Financial Performance - Fourth quarter net sales increased 1.7% to 126.0 million in Q4 2023, or 8.8% after excluding non-recurring sales[5] - Full year 2024 net sales decreased 1.7% to 461.8 million in 2023, but increased 5.3% when excluding non-recurring sales[13] - Net sales for Q4 2024 were 125,952,000 in Q4 2023[31] - Retail segment sales for Q4 increased 15.3% to 37.8 million in Q4 2023[5] - Contract Manufacturing segment sales increased 72.2% to 7.9 million in 2023[13] Profitability - Adjusted net income for Q4 2024 rose 22.7% to 1.19 per diluted share, compared to 0.98 per diluted share in Q4 2023[12] - Net income for Q4 2024 was 6,712,000 in Q4 2023[31] - The company reported a basic income per share of 0.91 in Q4 2023[31] Expenses and Margins - Fourth quarter gross margin improved by 120 basis points to 41.5% of net sales, up from 40.3% in the same period last year[6] - Operating expenses for Q4 2024 were 36.0 million, or 28.6% of net sales in Q4 2023[8] - Operating expenses increased to 35,993,000 in Q4 2023[31] Debt and Liabilities - Total debt decreased by 128.7 million as of December 31, 2024[7] - Total current assets decreased to 258,173,000 in 2023[29] - Total liabilities decreased to 255,830,000 in 2023[29] - Interest expense for 2024 decreased to 21.2 million in 2023, driven by lower interest rates and reduced debt levels[17] Shareholder Actions - The company announced a new share repurchase program of up to $7.5 million of its outstanding common stock[23] Non-GAAP Measures - Excluded returns related to a supplier dispute for calculating non-GAAP measures, as these returns were inconsistent in size with normal business operations[36] - Supplier dispute inventory adjustment excluded from cost of goods sold for non-GAAP measures, facilitating evaluation of current operating performance[36] - Trademark impairment costs excluded from non-GAAP measures, as they do not reflect current operating performance[36] - Amortization of acquisition-related intangible assets excluded for non-GAAP measures, due to inconsistency in size and impact from acquisition valuation[36] - Costs associated with the closure of the Rock Island manufacturing facility excluded from non-GAAP measures, as they do not reflect current operating performance[37] - Restructuring costs related to headcount reductions excluded from non-GAAP measures, facilitating evaluation of current operations[37] - Term debt extinguishment costs excluded from non-GAAP measures, as they are one-time costs not reflecting current operating performance[37] - Gain on the sale of the brand Servus excluded from non-GAAP measures, as it does not accurately reflect current operating performance[37] Future Outlook - The company expressed optimism about carrying fourth quarter momentum into 2025 and investing in growth for enhanced earnings[27]