/2H5d 1$&|&A%|Page #* 'ROCKY SHOES & BOOTS, INC.'AND SUBSIDIARIESV'- -----------------------------------------------------------------------------"'CONSOLIDATED BALANCE SHEETS"DECEMBER 31,"DECEMBER 31,     'CURRENT ASSETS: 'Cash and cash equivalents  WA  J'Total current liabilities >UbA >@fZA/@'LONG-TERM DEBT - Less current maturities @СrA @@oAB'DEFERRED LIABILITIES:C'Deferred compensation C A CXAD'Deferred income taxes D4A DC"A!E'Deferred pension liability E&A E2AF"-----------F"-----------!H'Total deferred liabilities H AA H?AI"-----------I"-----------K'Total liabilities K>~A K@aTxAN'SHAREHOLDERS' EQUITY:;O'Preferred stock, Series A, no par value, $.06 stated#P'value; 100,000 shares issued Pp Pp4Q'Common stock, no par value; 10,000,000 shares*R'authorized; 3,782,500 shares issued R`kA R`kA7S'Stock held in treasury, at cost - 116,952 common(T'shares and 7,143 preferred shares TK2 TK2U'Retained earnings U hA U@cAV"-----------V"-----------!X'Total shareholders' equity X;'yA X.zvAY"-----------Y"-----------1['TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY [A [GgA\"===========\"===========6`'See notes to consolidated financial statements. c'ROCKY SHOES & BOOTS, INC.d'AND SUBSIDIARIESVe'- -----------------------------------------------------------------------------,g'CONSOLIDATED STATEMENTS OF OPERATIONSk"TWELVE MONTHSk"SIX MONTHSl"YEAR ENDED l"ENDED l"ENDEDm"DECEMBER 31,m"DECEMBER 31,m"DECEMBER 31,m"YEAR ENDED JUNE 30 n n n n no"(UNAUDITED)q'NET SALES qpA qh ˌA q9A qX跌A qp8Ar'COST OF GOODS SOLD rЂFA r8QA ra{A r@A rXAs"----------s"------------s"------------s"-----------s"-----------t'GROSS MARGIN t0U5qA teA t[A t` ~>~"(1,197,123 ~q> ~$"----------"------------"------------"-----------"-----------('INCOME (LOSS) BEFORE INCOME TAXES iLA lF7 !) 2A 2@A#'INCOME TAX EXPENSE (BENEFIT) ,A ). V  \A"----------"------------"------------"-----------"-----------'NET INCOME (LOSS) chEA c  8 5A ];A"----------"------------"------------"-----------"-----------"'NET INCOME (LOSS) PER SHARE Gz? 333333ÿ p= ף RQ? Gz?"----------"------------"------------"-----------"-----------'WEIGHTED AVERAGE'NUMBER OF COMMON'SHARES AND EQUIVALENTS'OUTSTANDING XLA FKA FKA fLA ZOMA"----------"------------"------------"-----------"-----------6'See notes to consolidated financial statements. 'ROCKY SHOES & BOOTS, INC.'AND SUBSIDIARIESV'- -----------------------------------------------------------------------------,'CONSOLIDATED STATEMENTS OF CASH FLOWS"TWELVE MONTHS"SIX MONTHS"YEAR ENDED "ENDED "ENDED"YEAR ENDED JUNE 30"DECEMBER 31,"DECEMBER 31,"DECEMBER 31,"------------------     "(UNAUDITED) 'CASH FLOWS FROM OPERATING'ACTIVITIES:'Net income (loss) chEA c  8 5A ];A1'Adjustments to reconcile net income (loss)('to net cash provided by (used in)'operating activities:$'Depreciation and amortization FABA T?A /A H;A >2A'Deferred income taxes t@  f% ^w! `@ HE.'Deferred compensation and pension - net ! h-A @A ` 0A#'Loss on sale of fixed assets `@('Change in assets and liabilities:'Receivables *; A UEA xA U'Inventories Z 9RA `A ; ^'Other current assets @ +A ģ3A k5 *'Other assets @A 0( B&   'Accounts payable 2i9A b6 @[T HA A /A [P IA @5eA'financing activities"-----------"-------------"------------"------------"------------&'INCREASE (DECREASE) IN CASH AND'CASH EQUIVALENTS Q6 v A y9A   1jR!'CASH AND CASH EQUIVALENTS,'BEGINNING OF PERIOD J