Rocky Brands Inc. is back in the black.
The company reported Tuesday it made a second-quarter net income of $523,600, or 8 cents a share — a reversal from a net loss of $1.4 million, or 25 cents, a year ago.
Excluding one-time charges of about $600,000, net of tax, associated with the early repayment of a portion of the company’s senior term loan, net income was $1.1 million, or 17 cents.
Sales for the Nelsonville, Ohio-based company increased 8 percent to $55.2 million, from $51.2 million in the second quarter of 2009.
Notably, Rocky reduced its funded debt by more than half to $36.9 million as of June 30, compared with $87.5 million on June 30, 2009. The company ended the period with cash and cash equivalents totaling $3.2 million, up from $2.9 million in the previous corresponding quarter.
Mike Brooks, Rocky’s chairman and CEO, said in a company statement that the combination of sales growth, an improvement in wholesale gross margin and meaningful operating expense leverage helped deliver “profitability that was well above plan.”
“2010’s year-to-date sales results really exceeded our expectations,” Brooks said in a conference call with analysts late Tuesday. He added that sales could have been higher if not for supply-chain problems coming out of Asia that were beyond the company’s control.
Brooks also said he believes demand will hold fairly well across all categories going forward, and he expects to see solid sales increases in the back half.