Rocky Shoes & Boots, Inc. Announces $16.4 Million Agreement to Manufacture Boots
for the U.S. Military
NELSONVILLE, Ohio, March 9 /PRNewswire-FirstCall/ -- Rocky Shoes & Boots, Inc.
today announced it has entered into a subcontract agreement with Belleville Shoe
Manufacturing Company ("Belleville") to produce 200,000 pairs of Infantry Combat
Boots ("ICBs") for $16.4 million. The ICBs will be delivered to the U.S. military under Belleville's prime contract with the U.S. Government.
Shipment of the ICBs is expected begin in June 2004 and continue at the rate of
20,000 pairs per 30 day period. All of the ICBs will be manufactured in the
Company's factory in Puerto Rico.
This agreement also includes a provision permitting Belleville, at its sole
option, to order up to an additional 675,000 pairs of ICBs to be produced by the
Company following shipment of the 200,000 pairs of ICBs. The maximum delivery
requirement for any such orders would be 20,000 pairs per 30 day period, and the
maximum quantity of ICBs remaining to be delivered at any point in time under
the agreement may not exceed 240,000 pairs. The price for any additional pairs
to be manufactured by the Company beyond the initial 200,000 pairs would be
adjusted for changes in the cost of leather.
Mike Brooks, Chairman, President and Chief Executive Officer, stated, "We are
delighted to participate in this contract as a subcontractor to Belleville, a
company with whom we have worked before, to produce high quality boots for the
U.S. military. While our growth strategy is not focused on the military market,
we are pleased to produce these boots when manufacturing capacity is available
at our factory in Puerto Rico. We remain committed to leveraging our brands
through expandinglines of clothing and footwear." The Company plans to update earnings guidance for 2004 to include the accretive
effect of this subcontract agreement when the first quarter 2004 financial
results are announced, which is anticipated to be in late April.
Rocky Shoes & Boots, Inc. designs, develops, manufactures and markets premium
quality rugged outdoor, occupational, and casual footwear, as well as branded
apparel and accessories. The Company's footwear, clothing and accessories are
marketed throughseveral distribution channels, primarily under the brands,
ROCKY(R) and GATES(R).
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, as amended. 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 the contract
for the manufacture of 200,000 pairs of ICBs for shipment to the U.S. military
(paragraph 1), expected shipments from June 2004 and continue at the rate of
20,000 pairs per 30 day period (paragraph 2), a contract provision that permits
Belleville, at its option to order up to an additional 675,000 pairs of ICBs
(paragraph 3), and the Company's intent to update its earnings guidance for 2004
to include the accretive effect of this agreement (paragraph 5). There can be
no assurance that the forward-looking statements included in this press release
will prove to be accurate, and actual results may differ materially from present
plans. These forward-looking statements involve numerous risks and
uncertainties, including, without limitation, that the U.S. Government could
terminate the prime contract with Belleville, in which case some or all of the
200,000 pairs of ICBs would not be manufactured or delivered as presently
contemplated, the boots may not be produced on the schedule now contemplated,
Belleville may not exercise its option to order any additional ICBs under its
contract option to purchase up to an additional 675,000 pairs of ICBs, and all
of the other 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, 2002.
Oneor 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. DATASOURCE: Rocky Shoes & Boots, Inc.
CONTACT: James E. McDonald, Chief Financial Officer of Rocky Shoes & Boots, Inc., +1-740-753-1951
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