Exhibit 99
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ROCKY BRANDS, INC.
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Company Contact:
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Jim McDonald
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Chief Financial Officer
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(740) 753-1951
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Investor Relations:
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Integrated Corporate Relations, Inc.
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Brendon Frey/Chad Jacobs
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(203) 682-8200
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ROCKY BRANDS, INC. ANNOUNCES FIRST QUARTER FISCAL 2008 RESULTS
NELSONVILLE, Ohio, April 24, 2008 — Rocky Brands, Inc. (Nasdaq: RCKY) today announced financial
results for its first quarter ended March 31, 2008.
For the first quarter of 2008, net sales decreased to $60.5 million, or 1.9% versus net sales of
$61.7 million in the first quarter of 2007. Net income was $0.3 million versus net income of $0.8
million and diluted earnings per share were $0.05 compared to diluted earnings per share of $0.14 a
year ago. It is important to note that the first quarter of fiscal 2007 included a one-time,
after-tax reimbursement of expenses from the military of $0.4 million, or $0.07 per diluted share.
Mike Brooks, Chairman and Chief Executive Officer, commented, “Our first quarter results were
in-line with our internal forecasts. In light of the challenging retail environment here in the
U.S. we are encouraged by our recent performance particularly the double digit sales increase for
our Lehigh retail business, as well as the continued market share gains for our licensed brand
Dickies. We are also pleased with our progress toward controlling production costs and believe we
are on track to deliver improved profitability this year. We move ahead focused on achieving our
near-term objectives and committed to better positioning our Company for long-term sales and
earnings growth.”
First Quarter Results
Net sales for the first quarter decreased to $60.5 million compared to $61.7 million a year ago.
The decrease was attributable to a decline in wholesale sales offset by increases in retail sales
and sales to the U.S. military.
Gross profit in the first quarter of 2008 was $25.9 million, or 42.9% of sales compared to $26.1
million, or 42.3% for the same period last year. It is important to note that gross profit for the
first quarter of last year included a one-time, pre-tax reimbursement of expenses from the military
of $0.7 million. Excluding the reimbursement, gross margin was 41.2% in the first quarter of fiscal
2007. The year-over-year improvement in gross margin was primarily due to an increase in sales
price per unit and a decrease in manufacturing costs.
Selling, general and administrative (SG&A) expenses were $23.1 million, or 38.1% of sales, for the
first quarter of 2008 compared to $22.3 million, or 36.2% of sales, a year ago. The increase in
SG&A expenses was driven by additional selling and distribution expenses to support the growth of
the retail division.
Income from operations was $2.9 million, or 4.8% of net sales, for the period compared to $3.8
million, or 6.1% of net sales, in the prior year. Excluding the aforementioned pre-tax
reimbursement of $0.7 million from the military, income from operations a year ago was $3.1
million, or 5.0% of sales.
Funded Debt and Interest Expense
The Company’s funded debt at March 31, 2008 was $94.1 million versus $89.9 million at March 31,
2007. Interest expense decreased to $2.4 million for the first quarter of 2008 versus $2.5 million
for the same period last year.
Inventory
Inventory increased $8.0 million, or 11.2%, to $79.8 million at March 31, 2008 compared with $71.8
million on the same date a year ago. The increase in inventory is to support the expected growth
in the retail division.
About Rocky Brands, Inc.
Rocky Brands, Inc. is a leading designer, manufacturer and marketer of premium quality footwear and
apparel marketed under a portfolio of well recognized brand names including Rocky Outdoor Gear®,
Georgia Boot®, Durango®, Lehigh®, and the licensed brands Dickies®, Zumfoot® and Michelin®.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This press release contains certain forward-looking statements within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934,
as amended, which are intended to be covered by the safe harbors created thereby. Those statements
include, but may not be limited to, all statements regarding intent, beliefs, expectations,
projections, forecasts, and plans of the Company and its management, and include statements in this
press release regarding prospects in 2008 (paragraph 3) and expected growth in the retail division
(paragraph 9). These forward-looking statements involve numerous risks and uncertainties,
including, without limitation, the various risks inherent in the Company’s business as set forth in
periodic reports filed with the Securities and Exchange Commission, including the Company’s annual
report on Form 10-K for the year ended December 31, 2007 (filed March 6, 2008). One or more of
these factors have affected historical results, and could in the future affect the Company’s
businesses and financial results in future periods and could cause actual results to differ
materially from plans and projections. Therefore there can be no assurance that the forward-looking
statements included in this press release will prove to be accurate. In light of the significant
uncertainties inherent in the forward-looking statements included herein, the Company, or any other
person should not regard the inclusion of such information as a representation that the objectives
and plans of the Company will be achieved. All forward-looking statements made in this press
release are based on information presently available to the management of the Company. The Company
assumes no obligation to update any forward-looking statements.