2E I5 Arial5! Arial5" Arial5# Arial5$ Arial5% Arial5& Arial5'  Arial5(  Arial !!""            !!!"!#!$!%% &%'% (&)&*&+&,&-'.(/(0' 1' 2(3(4( @ @  @ @   @  @ @@ @ @  @   @   @  @  @  @  @  @   @   @   @   @   @   @   @   @   @   @   @   @   @  @  ! @  " @  # @  $ @  % @  & @  ( @  * @  , @  . @  0 @  1 @  2 @  3 @  4 @  5 @  6 @  8 @  : @  ; @  < @  >@ @  ?@ @  @@ @  B @  C @  D @  F @  H @  J @  L @  M @  N @  P @  R @  S @  T @  U @  V @  X @  Y @  [ @  ] @  _ @  ` @  a @  b @  d @  e @  f @  g @  h @  i @  j @  l@ @  m@ @  n@ @  p @  q @  r @  s @  t @  u @  v @  w @  x @  y @  z @  | @  } @  ~ @   @  @  @  @  @  @  @  @  @  @  @  @  @ @ @ @  @  @  @  @  @  @  @  @  q@' q@' q@'q0*0'ROCKY SHOES & BOOTS, INC. AND SUBSIDIARIES+'CONDENSED CONSOLIDATED BALANCE SHEETS^September 30, 2002^December 31, 2001^September 30, 2001^Unaudited^Unaudited 'ASSETS:'CURRENT ASSETS:$' Cash and cash equivalents"$ 1,893,242"$ 2,954,935"$ 2,553,804" ' Trade receivables - net "29,104,380 "15,091,100 "34,716,895 ' Other receivables "1,747,279 "2,225,498 "2,351,058 ' Inventories "30,253,309 "27,713,664 "37,899,594 ' Deferred income taxes "615,609 "615,609 "502,722 ' Prepaid expenses "1,321,298 "1,053,192 "1,498,935)' Total current assets"64,935,117"49,653,998"79,523,008'FIXED ASSETS - net"19,212,820"20,766,094"21,541,734'DEFERRED PENSION ASSET"2,493,590"1,802,922"2,526,603'DEFERRED INCOME TAXES "295,784 "295,784"-'OTHER ASSETS"2,230,565"2,141,016"2,075,593'TOTAL ASSETS"$ 89,167,876"$ 74,659,814"$ 105,666,938'LIABILITIES AND'SHAREHOLDERS' EQUITY:'CURRENT LIABILITIES:' Accounts payable"$ 4,068,998"$ 1,559,444"$ 3,538,230. ' Current maturities - long term debt "484,200 "469,143 "17,845,423 !' Accrued taxes - other !"457,225 !"991,295 !"683,637%"' Accrued salaries and wages""1,029,411 ""985,992""1,360,540&#' Accrued plant closing costs #"270,499 #"903,291#"1,300,000$' Accrued other$"1,257,086 $"477,938$"1,481,547.&' Total current liabilities&"7,567,419&"5,387,103&"26,209,377,('LONG TERM DEBT-less current maturities("29,055,129("16,976,023("26,095,736*'DEFERRED LIABILITIES *"152,500*"1,253,355*"1,760,214,'TOTAL LIABILITIES,"36,775,048,"23,616,481,"54,065,327.'SHAREHOLDERS' EQUITY:!0'Common stock, no par value;?1' 10,000,000 shares authorized; issued and outstanding*2' September 30, 2002 - 4,505,465;(3' December 31, 2001- 4,492,215;44' 4,492,215; September 30, 2001 - 4,489,2154"35,373,5784"35,302,1594"35,284,159/5' Accumulated other comprehensive loss5"(831,161)5"(831,161)5"-6' Retained earnings6"17,850,4116"16,572,3356"16,317,452/8' Total shareholders' equity8"52,392,8288"51,043,3338"51,601,6110:'TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY:"$ 89,167,876:"$ 74,659,814:"$ 105,666,938U<'See notes to the interim unaudited condensed consolidated financial statements.0>'ROCKY SHOES & BOOTS, INC. AND SUBSIDIARIES1?'CONDENSED CONSOLIDATED STATEMENTS OF INCOME@'(UNAUDITED)B^Three Months EndedB^Three Months EndedB^Nine Months EndedB^Nine Months EndedC^September 30,C^September 30,C^September 30,C^September 30, D^2002 D^2001 D^2002 D^2001F'NET SALESF"$ 30,453,543F"$ 38,490,267F"$ 63,397,202F"$ 76,560,294H'COST OF GOODS SOLDH"21,601,185H"28,685,843H"47,266,558H"57,436,667J'GROSS MARGINJ"8,852,358J"9,804,424J"16,130,644J"19,123,627L'SELLING, GENERAL AND"M' ADMINISTRATIVE EXPENSESM"5,119,050M"5,723,654M"13,535,584M"14,424,135N'PLANT CLOSING COSTSN"--N"1,300,000N"--N"1,300,000P'INCOME FROM OPERATIONSP"3,733,308P"2,780,770P"2,595,060P"3,399,492"R'OTHER INCOME AND (EXPENSES):S' Interest expenseS"(422,366)S"(764,539)S"(1,038,434)S"(1,976,321)T' Other - net T"102,168 T"50,097 T"269,197 T"330,124&V' Total other - netV"(320,198)V"(714,442)V"(769,237)V"(1,646,197)X'INCOME BEFORE INCOMEY' TAXESY"3,413,110Y"2,066,328Y"1,825,823Y"1,753,295['INCOME TAX EXPENSE["1,024,933 ["586,634 ["547,747 ["477,356]'NET INCOME]"$ 2,388,177]"$ 1,479,694]"$ 1,278,076]"$ 1,275,939_'NET INCOME PER SHARE`' Basic `"$0.53 `"$0.33 `"$0.28 `"$0.28b' Diluted b"$0.52 b"$0.32 b"$0.28 b"$0.28 d'WEIGHTED AVERAGE NUMBER OFe' SHARES OUTSTANDINGf' Basicf"4,505,465f"4,489,215f"4,500,675f"4,489,215h' Dilutedh"4,555,208h"4,564,929h"4,613,994h"4,540,675Uj'See notes to the interim unaudited condensed consolidated financial statements.0l'ROCKY SHOES & BOOTS, INC. AND SUBSIDIARIES5m'CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWSn'(UNAUDITED)p^Nine Months Endedp^Nine Months Endedq^September 30,q^September 30, r^2002 r^2001+t'CASH FLOWS FROM OPERATING ACTIVITIES:u'Net incomeu"$ 1,278,076u"$ 1,275,9390v'Adjustments to reconcile net income to net.w' cash used in operating activities:(x' Depreciation and amortizationx"3,073,782x"3,381,7380y' Deferred income taxes and liabilitiesy"(1,791,524)y"(690,374)'z' Loss on sale of fixed assets z"9,583 z"123,040'|'Change in assets and liabilities:}' Receivables}"(13,535,061)}"(16,055,172)~' Inventories~"(2,539,645)~"(5,864,357)' Prepaid expenses"(268,106)"(203,648)' Other assets"(109,325) "90,972' Accounts payable"2,495,946 "45,275(' Accrued and other liabilities"(344,295)"2,602,0486' Net cash used in operating activities"(11,730,569)"(15,294,539)+'CASH FLOWS FROM INVESTING ACTIVITIES:'Purchase of fixed assets"(1,509,457)"(701,658)('Proceeds from sale of fixed assets "12,750 "6,4985' Net cash used in investing activities"(1,496,707)"(695,160)+'CASH FLOWS FROM FINANCING ACTIVITIES:"'Proceeds from long term debt"64,882,869"76,046,760 'Payments on long term debt"(52,788,705)"(59,621,251)-'Proceeds from exercise of stock options "71,4199' Net cash provided by financing activities"12,165,583"16,425,509*'INCREASE (DECREASE) IN CASH AND CASH'EQUIVALENTS"(1,061,693) "435,810 'CASH AND CASH EQUIVALENTS,'BEGINNING OF PERIOD"2,954,935"2,117,994 'CASH AND CASH EQUIVALENTS,'END OF PERIOD"$ 1,893,242"$ 2,553,804U'See notes to the interim unaudited condensed consolidated financial statements. 6Sheet1 6Sheet2 6Sheet3d_ Arial  O4!*d"""dFM3FM3 PropertyWK3WK3 Property  0 .0 0.t0 p0CMHdr0