/2}HSd 1$&|&A%|Page #*%'PART 1 - FINANCIAL INFORMATION$'ITEM 1 - FINANCIAL STATEMENTS1'ROCKY SHOES & BOOTS, INC. AND SUBSIDIARIES,'CONDENSED CONSOLIDATED BALANCE SHEETS"Sept. 30, 1997"Dec. 31, 1996 "(Unaudited) "-------------- "------------- 'ASSETS:'Current Assets: 'Cash and Cash Equivalents vA WA'Trade Receivables A gA'Other Receivables h.A *$A'Inventories TA 6xA'Other Current Assets h~A/'Shareholders' Equity:/0'Preferred Stock, Series A, no par value;31'$.06 stated value;125,000 shares authorized; 1 1p42'issued 1997-90,000 shares;1996-100,000 shares*3'and outstanding 1997-82,857 shares;4'1996-92,857 shares"5'Common Stock, no par value;+6'10,000,000 shares authorized; issued7'1997-3,873,730 shares; 7 =mA 7`kA!8'1996-3,782,500 shares; and)9'outstanding 1997-3,756,778 shares;:'1996-3,665,548 shares&;'Stock held in Treasury, at cost ;K2 ;K2<'Retained Earnings < nA < hA="-----------="-----------!?'Total Shareholders' Equity ?|A ?;'yA@"-----------@"-----------1B'Total Liabilities and Shareholders' Equity BA BAC"===========C"===========NF'The accompanying notes are an integral part of the financial statements1I'ROCKY SHOES & BOOTS, INC. AND SUBSIDIARIES6J'CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONSK'(UNAUDITED)O"Three Months EndedO"Three Months EndedO"Nine Months EndedO"Nine Months EndedP"September 30,P"September 30,P"September 30,P"September 30, R R R R S"---- S"---- S"---- S"----U'Net Sales U~A U^vA UcA U懇AX'Cost of Goods Sold XuA XP(~qA XxA XtAY"-----------Y"-----------Y"-----------Y"-----------['Gross Margin [ϭ`A [0UA [ptqA [ OhA*]'Selling, General and Administrative ]nSA ]HA ]@fA ];`A^"-----------^"-----------^"-----------^"-----------_'Expensesa'Income From Operations aKA aAA aGXA aNA#c'Other Income And (Expenses):d'Interest Expense d(+ d($ du> dr5e'Other - net e` e*G eP3 ef"-----------f"-----------f"-----------f"-----------g'Total other - net gH- g-$ g*? g6h"-----------h"-----------h"-----------h"-----------!k'Income Before Income Taxes kDA kC8A k@PA kCCAm'Income Taxes mN+A m|gA m5A m`jAn"-----------n"-----------n"-----------n"-----------p'Net Income p3;A pd4A pFA p>Aq"===========q"===========q"===========q"===========t'Net Income Per Share t)\(? t ףp= ? t? tHzG?u"===========u"===========u"===========u"===========(x'Weighted Average Number of Common)y'Shares and Equivalents Outstanding yNA yRLA yTNA yLAz"===========z"===========z"===========z"===========O}'The accompanying notes are an integral part of the financial statements.1'ROCKY SHOES & BOOTS, INC. AND SUBSIDIARIES6'CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS'(UNAUDITED)"Nine Months Ended"Nine Months Ended"Sept. 30,"Sept. 30,   "---- "----'CASH FLOWS FROM'OPERATING ACTIVITIES:'Net Income FA >A*'Adjustments to Reconcile Net Income'to Net Cash Used In'Operating Activities:$'Depreciation and Amortization R@A  :A#'Loss on Sale of Fixed Assets "-- `@'Deferred Taxes and Other P@ ('Change in Assets and Liabilities:'Receivables *y `9Mm'Inventories `h `h'Other Assets  'Accounts Payable cA `>`A$'Accrued and Other Liabilities -0A z?A"------------"------------'Net Cash Used In'Operating Activities @`v  l"------------"------------'CASH FLOWS FROM'INVESTING ACTIVITIES:'Purchase of Fixed Assets ZD N>"------------"------------'CASH FLOWS FROM'FINANCING ACTIVITIES:#'Proceeds from Long-Term Debt 8YA ?xA!'Payments on Long-Term Debt F|a Sb.'Proceeds from exercise of stock options*'including related income tax effect 'A "--"------------"------------'Net Cash Provided By'Financing Activities xA @,nA"------------"------------"'(DECREASE) IN CASH AND CASH'EQUIVALENTS `7 F"!'CASH AND CASH EQUIVALENTS,'BEGINNING OF PERIOD WA J