Rocky Brands, Inc. Announces Completion of Cost Savings Review
June 07 2022 - 7:30AM
Business Wire
Rocky Brands, Inc. (NASDAQ: RCKY) today announced the completion
of a cost savings review aimed at better positioning the Company
for profitable growth. Following the integration of the lifestyle
footwear business acquired from Honeywell International Inc. in
March 2021, the Company identified a number of operational
synergies and cost saving opportunities. As the result of this
process, Rocky Brands will close its Boston office acquired via the
transaction and will reduce non-manufacturing headcount related to
the acquired brands by approximately 13%. These actions are
expected to result in approximately $3.0 - $4.0 million in
annualized savings.
Jason Brooks, President and Chief Executive Officer of Rocky
Brands, Inc., said, “The success of our acquisition is evident by
our sales performance over the last year. These cost saving
measures will allow us to better convert our top-line performance
into enhanced margins and profitability. We are now in a stronger
position to more efficiently capitalize on near-term marketplace
opportunities while remaining agile and flexible for the
future."
Brooks added, “The actions we are announcing today were the
result of diligent planning for the long-term success of our
organization, but the decisions that impact colleagues are not ones
that we ever take lightly. We greatly value the contributions of
the Boston team members who are not continuing on with our Company
and look to support them through this transition.”
The Company expects to record a one-time severance charge of
approximately $1.0 million in the second quarter 2022 associated
with the reduction in force.
About Rocky Brands, Inc.
Rocky Brands, Inc. is a leading designer, manufacturer and
marketer of premium quality footwear and apparel marketed under a
portfolio of well recognized brand names. Brands in the portfolio
include Rocky®, Georgia Boot®, Durango®, Lehigh®, The Original Muck
Boot Company®, XTRATUF®, Servus®, NEOS® and Ranger®. More
information can be found at RockyBrands.com.
Safe Harbor Language
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 of
1934, as amended, which are intended to be covered by the safe
harbors created thereby. 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. These forward-looking statements involve numerous risks
and uncertainties, including, without limitation, the 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, 2021 (filed March 15, 2022) and quarterly report on Form 10-Q
for the period ended March 31, 2022 (filed May 9, 2022). One or
more of these factors have affected historical results, and could
in the future affect the Company’s business 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, no person should 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20220607005533/en/
Company: Tom Robertson Chief Financial Officer (740) 753-9100
Investor Relations: Brendon Frey ICR, Inc. (203) 682-8200
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