Rocky Brands CEO pleased with top-line performance for Q1
08 May '07
3 min read
Selling, general and administrative (SG&A) expenses were $22.3 million, or 36.2% of sales, for the first quarter of 2007 compared to $21.1 million, or 36.7% of sales, a year ago. The increase in SG&A expenses is partially due to additional selling expenses related to increased sales and higher professional fees.
Income from operations was $3.8 million, or 6.1% of net sales, for the period compared to $3.8 million, or 6.6% of net sales, in the prior year.
Funded Debt and Interest Expense: The Company's funded debt at March 31, 2007 was $89.9 million versus $94.1 million at March 31, 2006. Interest expense increased to $2.5 million for the first quarter of 2007 versus $2.4 million for the same period last year. The slight increase in interest expense was due to higher interest rates versus a year ago.
Inventory: Inventory decreased $11.2 million, or 13.5%, to $71.8 million at March 31, 2007 compared with $83.0 million on the same date a year ago.
Outlook: The Company stated it remains comfortable with its previously issued guidance and continues to expect fiscal 2007 revenues to increase approximately 5% over 2006 levels, and diluted earnings per share to increase approximately 35% over 2006 levels.
Mr. Brooks concluded, “We have made important progress over the past several months diversifying our business, reducing our expenses, and improving our balance sheet. While we still have much work to do we are excited about several upcoming product introductions and believe recent investments in research and development will lead to future market share gains in each of our operating segments. We are committed to capitalizing on all the opportunities we believe exist for our entire portfolio of brands and move forward more focused than ever on successfully executing our growth strategy.”
marketing@alchempro.com
