Rocky Brands, Inc. (NASDAQ: RCKY) witnessed a remarkable upswing in its market performance during the preceding trading session, with shares soaring by 28.41% and reaching a pinnacle of $33.09. This surge synchronizes notably with the publication of its quarterly financial report.
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Rocky Brands (RCKY) declared its first-quarter financial results, which ended on March 31, 2024. The first quarter’s performance indicates a strong start to the fiscal year since 2023’s targeted cost-cutting initiatives allowed for more funds to be allocated to marketing initiatives. Consequently, this led to a more rapid growth trajectory and significant cost reductions.
The upward trajectory experienced by Rocky Brands is underscored by a surge in sales across its spectrum of offerings, particularly evident in the double-digit expansion witnessed by its Durango and XTRATUF brands. Despite lingering uncertainties in the macroeconomic landscape, Rocky Brands maintains a cautiously optimistic outlook, foreseeing favorable conditions for bolstered profitability and heightened shareholder returns as the year unfolds.
Notably, first-quarter net sales surged by 2.2% to reach $112.9 million, excluding revenues from the divested Servus brand. Wholesale transactions contributed $79.8 million to this tally, marking a notable 7.0% upsurge, while retail sales climbed by 3.0% to $30.4 million. Sales for Contract Manufacturing were $2.7 million during the quarter.
The total debt of the corporation as of March 31, 2024, net of unamortized loan issuance charges, was $156.0 million. This includes borrowings of $83.3 million under the senior secured asset-backed credit facility and a $74.3 million senior term loan. Later, on April 29, 2024, Rocky Brands announced the completion of a final contract with Bank of America, N.A. about debt refinancing.
The updated arrangement includes a larger, modified, and extended Asset-Based Lending (ABL) facility with a $50 million term facility and a $175 million revolving credit component. By taking this step, the prior $175 million revolving credit agreement with Bank of America is effectively replaced. The proceeds from this refinancing endeavor were directed towards retiring Rocky Brands’ existing senior secured term loan, which was previously managed by TCW Asset Management Company, LLC.
