Rocky Brands Inc. reported a robust fourth quarter and announced a new contract with the U.S. military late Thursday.
For the period ended Dec. 31, 2012, the Nelsonville, Ohio-based firm earned a net income of $2.5 million, or 34 cents a share, up from $300,000, or 4 cents, in the fourth quarter of 2011. Revenue totaled $58 million, down from $64 million a year ago.
Wholesale revenue slipped 11 percent to $46 million, while retail sales advanced 1.7 percent to $12 million. There were no military segment sales this fourth quarter, compared with $400,000 last year.
Rocky said it has a new contract with the U.S. military to produce “hot weather” combat boots. This guarantees the firm military revenue of between $3 million and $15 million for the first year of the contract, which includes an option for four additional years under the same terms. The boots start to ship next month.
“In an effort to mitigate the impact of weather and further diversify our operations, we’ve been developing new product lines with good success, evidenced by the increase in Durango lifestyle and Western sales, which were both up 44 percent in 2012,” David Sharp, president and CEO of Rocky, said in a statement.
He added, “We believe we are well positioned to generate solid top-line expansion in the first half of 2013. Looking further out, we remain confident that the adjustments we’re making to the business will allow us to grow sales annually on a consistent basis and leverage costs to drive improved profitability and greater shareholder value.”
For the full year, Rocky earned a net income of $8.9 million, or $1.18 a share, compared with net income of $8.3 million, or $1.11, for fiscal 2011. Net sales fell to $228.3 million, from $239.6 million.