/2H1d 1$&|&A%|Page #*1'ROCKY SHOES & BOOTS, INC. AND SUBSIDIARIES,'CONDENSED CONSOLIDATED BALANCE SHEETS `c@"Dec. 31,1996"(Unaudited)"-----------"------------'ASSETS:'Current Assets: 'Cash and Cash Equivalents  z(A  WA 'Trade Receivables  sA  gA 'Other Receivables  f0A  *$A 'Inventories  5jA  6xA 'Other Current Assets  ew?A  8A"------------"------------'Total Current Assets ؎A JA'Fixed Assets - Net oA mA'Other Assets r@A j/@A"------------"------------'Total Assets 3ӓA A"============"============,'LIABILITIES AND SHAREHOLDERS' EQUITY:'Current Liabilities:'Accounts Payable  *iA +GA*'Current Maturities - Long Term Debt [hA KA'Accrued Liabilities yEA /tHA"------------"------------ 'Total Current Liabilities  s{A  UbA-"'Long-Term Debt-less current maturities "0vA "СrA$'Deferred Liabilities $xMBA $ AA%"------------%"------------''Total Liabilities '-'A '>~A)'Shareholders' Equity:/*'Preferred Stock, Series A, no par value;:+'issued 1997 - 90,000 shares; 1996 - 100,000 shares;3,'and outstanding 1997 - 82,857 shares; 1996 --'92,857 shares - -p".'Common Stock, no par value;$/'10,000,000 shares authorized;70'issued 1997 - 3,856,480 shares; 1996 - 3,782,50071'shares; and outstanding 1997 - 3,749,528 shares;2'1996 - 3,665,548 shares 2]mA 2`kA&3'Stock held in Treasury, at cost 3K2 3K24'Retained Earnings 41kA 4 hA5"------------5"------------!6'Total Shareholders' Equity 6 szA 6;'yA7"------------7"------------19'Total Liabilities and Shareholders' Equity 93ӓA 9A:"============:"============N<'The accompanying notes are an integral part of the financial statements1@'ROCKY SHOES & BOOTS, INC. AND SUBSIDIARIES6A'CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONSB'(UNAUDITED)D"Three Months EndedD"Three Months EndedD"Six Months EndedD"Six Months EndedE"June 30,E"June 30,E"June 30,E"June 30, F F F F G"---- G"---- G"---- G"----H'Net Sales HtA H lA H#WA H nExAJ'Cost of Goods Sold J.mA J@dA JཐwA JjqAK"-----------K"-----------K"-----------K"-----------M'Gross Margin M@WA M@ PA M;bA Mam[A*O'Selling, General and AdministrativeP'Expenses POA P;`FA PYA P*UAQ"-----------Q"-----------Q"-----------Q"-----------S'Income From Operations S S@A S5A SEA S 9AU'Other Income (Expense):V'Interest Expense V# VB Vz0 V&W'Other - net W W@ WQ W`X"-----------X"-----------X"-----------X"-----------Y'Total other - net Y*H$ Y Y)1 Y2'Z"-----------Z"-----------Z"-----------Z"-----------!\'Income Before Income Taxes \6A \0A \P:A \*A^'Income Taxes ^A ^!A ^A ^A_"-----------_"-----------_"-----------_"-----------a'Net Income a /A a7*A a5g2A a$Ab"===========b"===========b"===========b"===========d'Net Income Per Share dp= ף? dq= ףp? dףp= ? d(\?e"-----------e"-----------e"-----------e"-----------(g'Weighted Average Number of Common)h'Shares and Equivalents Outstanding hmNNA hLA hNA hJLAi"===========i"===========i"===========i"===========Nk'The accompanying notes are an integral part of the financial statements1o'ROCKY SHOES & BOOTS, INC. AND SUBSIDIARIES6p'CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWSq'(UNAUDITED)s"Six Months Endeds"Six Months Endedt"June 30,t"June 30, u u v"---- v"----w'CASH FLOWS FROMx'OPERATING ACTIVITIESz'Net Income z5g2A z$A{"------------{"------------*|'Adjustments to Reconcile Net Income}'To Net Cash Used In~'Operating Activities:$'Depreciation and Amortization 4A )Y1A'Deferred taxes and other  @ >#'Loss on sale of fixed assets @('Change in Assets and Liabilities:'Receivables g^ M'Inventories  m;m @dg'Other current assets l;  "'Other Assets  'Accounts payable LbA @>dA$'Accrued and Other Liabilities e .&A"------------"------------'Net Cash Used In'Operating Activities: @g )GK"------------"------------'CASH FLOWS FROM'INVESTING ACTIVITIES:'Purchase of Fixed Assets N/6 7"------------"------------'CASH FLOWS FROM'FINANCING ACTIVITIES:#'Proceeds from Long Term Debt rsA accA!'Payments on Long Term Debt * [ @U Y.'Proceeds from exercise of stock options*'including related income tax effect &A"------------"------------'Net Cash Provided By'Financing Activities jA xKA"------------"------------"'INCREASE (DECREASE) IN CASH'AND CASH EQUIVALENTS (A 6!'CASH AND CASH EQUIVALENTS,'BEGINNING OF PERIOD WA J