Ÿ/2ÿ—ñH9  d 1$&%*ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ1ñ'ROCKY SHOES & BOOTS, INC. AND SUBSIDIARIES,ñ'CONDENSED CONSOLIDATED BALANCE SHEETSñ^June 30, 2001ñ^December 31, 2000ñ^June 30, 2000ñ^Unauditedñ^Unauditedñ'ASSETS:ñ'CURRENT ASSETS: ñ'Cash and cash equivalentsñ"$ 1,453,055ñ"$ 2,117,994ñ"$ 1,351,350ñ'Trade receivables - netñ"20,197,326ñ"18,055,881ñ"22,850,112ñ 'Other receivablesñ "4,973,000ñ "2,956,900ñ "4,983,912ñ 'Inventoriesñ "41,384,116ñ "32,035,237ñ "46,284,130ñ 'Deferred income taxesñ "502,722ñ "536,012ñ "1,017,331ñ 'Prepaid expensesñ "1,454,132ñ "1,295,287ñ "1,991,155ñ'Total current assetsñ"69,964,351ñ"56,997,311ñ"78,477,990ñ'FIXED ASSETS - netñ"22,473,023ñ"24,330,319ñ"26,213,787ñ'OTHER ASSETSñ"4,684,036ñ"4,723,542ñ"2,515,139ñ'TOTAL ASSETSñ"$ 97,121,410ñ"$ 86,051,172ñ"$107,206,916ñ'LIABILITIES ANDñ'SHAREHOLDERS' EQUITY:ñ'CURRENT LIABILITIES:ñ'Accounts payableñ"$ 6,091,027ñ"$ 3,502,296ñ"$ 10,556,046*ñ'Current maturities - long term debtñ"9,516,681ñ"1,070,374ñ"37,774,865ñ'Accrued taxes - otherñ"910,612ñ"560,537ñ"896,153!ñ'Accrued salaries and wagesñ"1,063,461ñ"369,925ñ"863,749ñ'Accrued otherñ"558,948ñ"1,293,214ñ"838,620 ñ'Total current liabilitiesñ"18,140,729ñ"6,796,346ñ"50,929,433-ñ!'LONG TERM DEBT-less current maturitiesñ!"26,212,433ñ!"26,445,276ñ!"6,030,372ñ#'DEFERRED LIABILITIESñ#"2,646,331ñ#"2,483,878ñ#"1,290,261ñ%'TOTAL LIABILITIESñ%"46,999,493ñ%"35,725,500ñ%"58,250,066ñ''SHAREHOLDERS' EQUITY:"ñ)'Common stock, no par value;;ñ*'10,000,000 shares authorized; issued and outstanding,ñ+'June 30, 2001, December 31, 2000, and ñ,'June 30, 2000 - 4,489,215ñ,"35,284,159ñ,"35,284,159ñ,"35,284,159ñ-'Retained earningsñ-"14,837,758ñ-"15,041,513ñ-"13,672,691!ñ/'Total shareholders' equityñ/"50,121,917ñ/"50,325,672ñ/"48,956,8501ñ1'TOTAL LIABILITIES AND SHAREHOLDERS' EQUITYñ1"$ 97,121,410ñ1"$ 86,051,172ñ1"$107,206,916Vñ5'See notes to the interim unaudited condensed consolidated financial statements.1ñ7'ROCKY SHOES & BOOTS, INC. AND SUBSIDIARIES6ñ8'CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONSñ9'(UNAUDITED)ñ;^Three Months Endedñ;^Three Months Endedñ;^Six Months Endedñ;^Six Months Endedñ<^June 30,ñ<^June 30,ñ<^June 30,ñ<^June 30, ñ=^2001 ñ=^2000 ñ=^2001 ñ=^2000ñ?'NET SALESñ?"$ 22,006,132ñ?"$ 23,114,100ñ?"$ 38,070,027ñ?"$ 38,245,133ñA'COST OF GOODS SOLDñA"15,854,003ñA"17,642,373ñA"28,750,824ñA"29,240,724ñD'GROSS MARGINñD"6,152,129ñD"5,471,727ñD"9,319,203ñD"9,004,409ñF'SELLING, GENERAL ANDñG'ADMINISTRATIVE EXPENSESñG"4,691,982ñG"4,588,195ñG"8,700,481ñG"9,864,027$ñJ'INCOME (LOSS) FROM OPERATIONSñJ"1,460,147ñJ"883,532ñJ"618,722ñJ"(859,618)#ñL'OTHER INCOME AND (EXPENSES):ñM'Interest expenseñM"(632,685)ñM"(473,662)ñM"(1,211,782)ñM"(1,131,721)ñN'Other - netñN"147,041 ñN"71,557ñN"280,027ñN"180,059ñP'Total other - netñP"(485,644)ñP"(402,105)ñP"(931,755)ñP"(951,662)"ñR'INCOME (LOSS) BEFORE INCOME ñS'TAXESñS"974,503ñS"481,427ñS"(313,033)ñS"(1,811,280)#ñU'INCOME TAX (BENEFIT) EXPENSEñU"272,164ñU"138,139ñU"(109,278)ñU"(539,000)ñX'NET INCOME (LOSS)ñX"$ 702,339ñX"$ 343,288ñX"$ (203,755)ñX"$ (1,272,280)"ñ['NET INCOME (LOSS) PER SHARE ñ\'Basicñ\"$ 0.16 ñ\"$ 0.08ñ\"$ (0.05)ñ\"$ (0.28)ñ^'Dilutedñ^"$ 0.16 ñ^"$ 0.08ñ^"$ (0.05)ñ^"$ (0.28)!ña'WEIGHTED AVERAGE NUMBER OFñb'SHARES OUTSTANDING ñc'Basicñc"4,489,215ñc"4,489,215ñc"4,489,215ñc"4,489,215ñe'Dilutedñe"4,522,039ñe"4,489,714ñe"4,489,215ñe"4,489,215Vñh'See notes to the interim unaudited condensed consolidated financial statements.1ñj'ROCKY SHOES & BOOTS, INC. AND SUBSIDIARIES6ñk'CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWSñl'(UNAUDITED)ñn^Six Months Endedñn^Six Months Endedño^June 30,ño^June 30, ñp^2001 ñp^2000,ñq'CASH FLOWS FROM OPERATING ACTIVITIES:ñr'Net lossñr"$ (203,755)ñr"$ (1,272,280)=ñs'Adjustments to reconcile net loss to net cash provided*ñt'by (used in) operating activities:$ñu'Depreciation and amortizationñu"2,304,910ñu"2,286,699+ñv'Deferred taxes and liabilities - netñv"195,743ñv"(21,328)#ñw'Loss on sale of fixed assets ñw"7,434 ñw"1,226(ñy'Change in assets and liabilities:ñz'Receivablesñz"(4,157,545)ñz"(3,894,042)ñ{'Inventoriesñ{"(9,348,879)ñ{"(13,711,063)ñ|'Prepaid expensesñ|"(158,845)ñ|"(768,241)ñ}'Other assets ñ}"20,602ñ}"(413,304)ñ~'Accounts payableñ~"2,598,861ñ~"8,315,069$ñ'Accrued and other liabilitiesñ"309,344ñ"710,814-ñ‚'Net cash used in operating activitiesñ‚"(8,432,130)ñ‚"(8,766,450),ñ„'CASH FLOWS FROM INVESTING ACTIVITIES:ñ…'Purchase of fixed assetsñ…"(452,772)ñ…"(2,426,429))ñ†'Proceeds from sale of fixed assets ñ†"6,498ñ†"185,483,ñ‰'Net cash used in investing activitiesñ‰"(446,274)ñ‰"(2,240,946),ñ‹'CASH FLOWS FROM FINANCING ACTIVITIES:#ñŒ'Proceeds from Long Term DebtñŒ"45,171,590ñŒ"26,845,000!ñ'Payments on Long Term Debtñ"(36,958,125)ñ"(16,816,578)0ñ'Net cash provided by financing activitiesñ"8,213,465ñ"10,028,422,ñ”'DECREASE IN CASH AND CASH EQUIVALENTSñ”"(664,939)ñ”"(978,974)!ñ–'CASH AND CASH EQUIVALENTS,ñ—'BEGINNING OF PERIODñ—"2,117,994ñ—"2,330,324!ñš'CASH AND CASH EQUIVALENTS,ñ›'END OF PERIODñ›"$ 1,453,055ñ›"$ 1,351,350VñŸ'See notes to the interim unaudited condensed consolidated financial statements.