Notes to Unaudited Condensed Consolidated Financial Statements
1
. NATURE OF OPERATIONS AND BASIS OF PRESENTATION
We are a leading designer, manufacturer and marketer of premium quality footwear and apparel marketed under a portfolio of well recognized brand names including Rocky, Georgia Boot, Durango and Lehigh. Our brands have a long history of representing high quality, comfortable, functional and durable footwear and our products are organized around six target markets: outdoor, work, duty, commercial military, western and
lifestyle
. In addition, as part of our strategy of outfitting consumers from head-to-toe, we market complementary branded apparel and accessories that we believe leverage the strength and positioning of each of our brands.
In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments that are necessary for a fair presentation of the financial results. All such adjustments reflected in the unaudited condensed consolidated financial statements are considered to be of a normal and recurring nature. The results of operations for the
three and nine months ended September 30, 2018 and 2017
are not necessarily indicative of the results to be expected for the whole year. The December 31, 2017 condensed consolidated balance sheet data was derived from the audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America ("GAAP"). This Quarterly Report on Form 10-Q should be read in connection with our Annual Report on Form 10-K for the year ended December 31, 2017, which includes all disclosures required by GAAP.
2
. ACCOUNTING STANDARDS UPDATES
Recently Issued Accounting Pronouncements
Rocky Brands, Inc. is currently evaluating the impact of certain
Accounting Standards Updates
(“
ASU
”)
on its Unaudited Condensed Consolidated Financial Statements or Notes to the Unaudited Condensed Consolidated Financial Statements:
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Standard
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Description
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Anticipated Adoption Period
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Effect on the financial statements or other significant matters
|
ASU 2018-15 Internal-use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract (A Consensus of the FASB EITF)
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This pronouncement aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). It also provides criteria for determining which implementation costs to capitalize as an asset related to the service contract and which costs to expense. The capitalized implementation costs are required to be expensed over the term of the hosting arrangement. The guidance also clarifies the presentation requirements for reporting such costs in the entity’s financial statements.
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Q4 2018
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The Company is planning to adopt this standard early and will adopt prospectively. Costs that previously would have been expensed in the fourth quarter of 2018 will be capitalized and amortized over the life of the cloud computing arrangement in accordance with this new standard.
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ASU 2018-13 Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement
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This pronouncement changes the fair value measurement disclosure requirements of ASC 820. The amendments in this ASU are the result of a broader disclosure project called FASB Concepts Statement, Conceptual Framework for Financial Reporting — Chapter 8: Notes to Financial Statements.
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Q1 2020
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The Company is evaluating the impact of the new standard on its Unaudited Condensed Consolidated Financial Statements, but does not anticipate the standard will have a significant impact.
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ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-based Payment Accounting
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The pronouncement simplifies the accounting for share-based payments granted to nonemployees for goods and services. Under the ASU, most of the guidance on such payments to nonemployees would be aligned with the requirements for share-based payments granted to employees.
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Q1 2019
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The Company is evaluating the impact of the new standard on its Unaudited Condensed Consolidated Financial Statements, but does not anticipate the standard will have a significant impact.
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ASU 2016-13, Measurement of Credit Losses on Financial Instruments
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The pronouncement seeks to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date by replacing the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates.
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Q1 2020
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The Company is evaluating the impacts of the new standard on its existing financial instruments, including trade receivables.
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ASU 2016-02, Leases (Topic 842)
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The pronouncement introduces a lessee model that brings most leases on the balance sheet. The standard requires that lessees recognize the following for all leases (with the exception of short-term leases, as that term is defined in the standard) at the lease commencement date: (1) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term.
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Q1 2019
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The Company has formed an internal project team to begin gathering data relating to leasing activity at the Company. This includes compiling a list of all contracts that could meet the definition of a lease under the new standard and evaluating the accounting for these contracts under the new standard to determine the ultimate impact the new standard will have on the Company's financial statements.
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Accounting Standards Adopted in the Current Year
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Standard
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Description
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Effect on the financial statements or other significant matters
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ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force).
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The pronouncement provides specific guidance on eight cash flow classification issues to reduce the diversity in practice.
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The Company adopted this ASU in the first quarter of 2018, which did not have a material effect on the Unaudited Condensed Consolidated Financial Statements.
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ASU 2014-09, Revenue from Contracts with Customers (Topic 606).
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The pronouncement outlines a single, comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. The core principle of the new standard is that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.
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The Company adopted this ASU in the first quarter of 2018, which did not have a material effect on the Unaudited Condensed Consolidated Financial Statements. The Company elected to adopt this standard using the modified retrospective method. For additional information please see Note 4.
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3. FAIR VALUE
Generally accepted accounting standards establish a framework for measuring fair value. The fair value accounting standard defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. This standard clarifies how to measure fair value as permitted under other accounting pronouncements.
The fair value accounting standard defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. This standard also establishes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:
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Level 1 – Quoted prices in active markets for identical assets or liabilities.
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·
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Level 2 – Observable inputs other than quoted market prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.
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·
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Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.
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The fair values of cash and cash equivalents, receivables, and payables approximated their carrying values because of the short-term nature of these instruments. Receivables consist primarily of amounts due from our customers, net of allowances, amounts due from employees (sales persons’ advances in excess of commissions earned and employee travel advances); other customer receivables, net of allowances; and expected insurance recoveries. The carrying amounts of our long-term credit facility and other short-term financing obligations also approximate fair value, as they are comparable to the available financing in the marketplace during the year. The fair value of our revolving line of credit is categorized as Level 2.
4. REVENUE
On January 1, 2018, we adopted the new accounting standard ASC 606, Revenue from Contracts with Customers and all the related amendments (“New Revenue Standard”) for all contracts not yet completed as of January 1, 2018 using the modified retrospective method. This method requires a cumulative effect adjustment to reflect the impact of initially applying the New Revenue Standard as an adjustment to the opening balance of retained earnings. The New Revenue Standard did not result in a material impact to the opening balance of retained earnings, and therefore no adjustment was made. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. We expect the impact of the adoption of the New Revenue Standard to be immaterial to our net income on an ongoing basis.
Nature of Performance Obligations
Our products are distributed through three distinct channels, which represent our business segments: Wholesale, Retail, and Military. In our Wholesale business, we distribute our products through a wide range of
distribution channels representing over ten thousand retail store locations
in the U.S., Canada, and internationally. Our Wholesale channels vary by product line and include sporting goods stores, outdoor
specialty stores, online
retai
lers, independent
retailers,
mass merchants, retail uniform stores, and specialty safety shoe stores.
Our Retail business includes direct sales of our products to consumers through our e-commerce websites, our Rocky outlet store, and Lehigh business. We also sell footwear under the Rocky label to the U.S. Military.
Significant Accounting Policies and Judgements
Revenue is recognized when obligations under the terms of a contract with our customer are satisfied; this generally occurs upon shipment of our product to our customer, which is when the transfer of control of our products passes to the customer. The duration of our arrangements with our customers are typically one year or less. Revenue is measured as the amount of consideration we expect to receive in exchange for the transfer of our products at a point in time and consists of either fixed or variable consideration or a combination of both.
Revenues from sales are recorded at the net sales price, which includes estimates of variable consideration for which reserves are established. Components of variable consideration include prompt payment discounts, volume rebates, and product returns. These reserves, as detailed below, are based on the amounts earned, or to be claimed on the related sales, and are classified as reductions of accounts receivable (if the amount is payable to the customer) or a current liability (if the amount is payable to a party other than a customer).
The amount of variable consideration which is included in the transaction price may be constrained, and is included in the net sales price only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized under the contract will not occur in a future period. Our analyses also contemplated application of the constraint in accordance with the guidance, under which it determined a material reversal of revenue would not occur in a future period for the estimates detailed below as of
September 30, 2018
. Actual amounts of consideration ultimately received may differ from our estimates. If actual results in the future vary from our estimates, we will adjust these estimates, which would affect net revenue and earnings in the period such variances become known.
When a customer has a right to a prompt payment discount, we estimate the likelihood that the customer will earn the discount using historical data and adjust our estimate when the estimate of the likelihood that a customer will earn the discount changes or the consideration becomes fixed, whichever occurs earlier. The estimated amount of variable consideration is recognized as a credit to trade receivables and a reduction in revenue until the uncertainty of the variable consideration is alleviated. Because most of our customers have payment terms less than six months there is not a significant financing component in our contracts with customers.
When a customer is offered a rebate on purchases retroactively this is accounted for as variable consideration because the consideration for the current and past purchases is not fixed until it is known if the discount is earned. We estimate the expected discount the customer will earn at contract inception using historical data and projections and update our estimates when projections materially change or consideration becomes fixed. The estimated rebate is recognized as a credit to trade receivables and offset against revenue until the rebate is earned or the earning period has lapsed.
When a right of return is part of the arrangement with the customer, we estimate the expected returns based on an analysis using historical data. We adjust our estimate either when the most likely amount of consideration we expect to receive changes or when the consideration becomes fixed, whichever occurs earlier. Previously, we recorded the return reserve liability as a contra balance within accounts receivable, and we will continue to do so under ASC 606. Previously, the related return reserve asset for the right to recover cost of goods sold was recognized within the inventory balance, and we will continue to do so under ASC 606. Please see Notes 5 and 6 for additional information.
Trade receivables represent our right to unconditional payment that only relies on the passage of time.
Contract receivables represent contractual minimum payments required under non-cancellable contracts with the U.S. Military with a duration of one year or less.
Contract liabilities are performance obligations that we expect to satisfy or relieve within the next twelve months, advance consideration obtained prior to satisfying a performance obligation, or unconditional obligations to provide goods or services under non-cancellable contracts before the transfer of goods or services to the customer has occurred. Our contract liability represents unconditional obligatio
ns to provide goods
under non-cancellable contracts with the U.S. Military.
Items considered immaterial within the context of the contract are recognized as an expense.
Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue producing transaction, that are collected from customers, are excluded from revenue.
Costs associated with our manufacturer’s warranty continue to be recognized as expense when the products are sold in accordance with guidance surrounding product warranties.
Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment
cost and are in included in operating
expenses. This treatment is consistent with how we accounte
d for these costs in prior periods
.
Costs associated with obtaining a contract are expensed as incurred in accordance with the practical expedient in ASC 340-40 in instances where the amortization period is one year or
less. We anticipate substantially all
of our costs incurred to obtain a contract would be subject to this practical expedient.
Contract Balances
The following table provides information about contract liabilities from contracts with our customers.
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September 30,
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December 31,
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September 30,
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2018
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2017
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2017
|
Contract liabilities
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$
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4,849,176
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$
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-
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$
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-
|
Significant changes in the contract liabilities balance during the period are as follows:
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Contract liabilities
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Balance, December 31, 2017
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-
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Non-cancelable contracts with customers recognized as a result of ASC 606 adoption
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$
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9,394,130
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Non-cancelable contracts with customers entered into during the period
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10,176,280
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Revenue recognized related to non-cancelable contracts with customers during the period
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(14,721,234)
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Balance, September 30, 2018
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$
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4,849,176
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Disaggregation of Revenue
All revenues are recognized at a point in time when control of our products pass to the customer at point of shipment. Because all revenues are recognized at a point in time and are disaggregated by channel, our segment disclosures are consistent with ASC 606 disaggregation requirements. See Note 12 for segment disclosures.
5
.
TRADE RECEIVABLES
Trade receivables are presented net of the related allowance for uncollectible accounts of approximately
$1,357,000
,
$177,000
and
$556,000
at
September 30, 2018
, December 31, 2017
and
September 30, 2017
, respectively.
We record
the allowance based on historical experience, the age of the receivables, and identification of customer accounts that are likely to prove difficult to collect due to various criteria including pending bankruptcy. However, estimates of the allowance in any future period are inherently uncertain and actual allowances may differ from these estimates. If actual or expected future allowances were significantly greater or less than established reserves, a reduction or increase to bad debt expense would be recorded in the period this determination was made. Our credit policy generally provides that trade receivables will be deemed uncollectible and written-off once we have pursued all reasonable efforts to collect on the account.
In accordance wit
h ASC 606, the return
reserve
liability
netted against trade receivables is
$908,000
at
September 30, 2018
.
6
.
INVENTORIES
Inventories are comprised of the following:
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September 30,
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December 31,
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September 30,
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|
|
2018
|
|
2017
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|
2017
|
Raw materials
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$
|
14,310,672
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$
|
11,394,657
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$
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15,287,467
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Work-in-process
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|
876,298
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709,406
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1,286,966
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Finished goods
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63,221,510
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53,518,369
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60,310,720
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Total
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$
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78,408,480
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$
|
65,622,432
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$
|
76,885,153
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In accordance
with ASC 606, the return
reserve
asset
netted against inventories is
$555,000
at
September 30, 2018
.
7
.
IDENTIFIED INTANGIBLE ASSETS
A schedule of identified intangible assets is as follows:
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Gross
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Accumulated
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Carrying
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September 30, 2018
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Amount
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Amortization
|
|
Amount
|
Trademarks
|
|
|
|
|
|
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|
Wholesale
|
|
$
|
27,192,281
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|
-
|
$
|
27,192,281
|
Retail
|
|
|
2,900,000
|
|
-
|
|
2,900,000
|
Patents
|
|
|
895,477
|
$
|
704,953
|
|
190,524
|
Customer Relationships
|
|
|
-
|
|
-
|
|
-
|
Total Intangibles
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|
$
|
30,987,758
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$
|
704,953
|
$
|
30,282,805
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|
|
|
|
|
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|
|
Gross
|
|
Accumulated
|
|
Carrying
|
December 31, 2017
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|
|
Amount
|
|
Amortization
|
|
Amount
|
Trademarks
|
|
|
|
|
|
|
|
Wholesale
|
|
$
|
27,192,281
|
|
-
|
$
|
27,192,281
|
Retail
|
|
|
2,900,000
|
|
-
|
|
2,900,000
|
Patents
|
|
|
895,477
|
$
|
673,009
|
|
222,468
|
Customer Relationships
|
|
|
-
|
|
-
|
|
-
|
Total Intangibles
|
|
$
|
30,987,758
|
$
|
673,009
|
$
|
30,314,749
|
|
|
|
|
|
|
|
|
|
|
|
Gross
|
|
Accumulated
|
|
Carrying
|
September 30, 2017
|
|
|
Amount
|
|
Amortization
|
|
Amount
|
Trademarks
|
|
|
|
|
|
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|
Wholesale
|
|
$
|
29,343,578
|
|
-
|
$
|
29,343,578
|
Retail
|
|
|
2,900,000
|
|
-
|
|
2,900,000
|
Patents
|
|
|
2,595,477
|
$
|
2,413,054
|
|
182,423
|
Customer Relationships
|
|
|
2,200,000
|
|
1,306,667
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|
893,333
|
Total Intangibles
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|
$
|
37,039,055
|
$
|
3,719,721
|
$
|
33,319,334
|
The weighted average life for our patents is
4.3
years.
A schedule of approximate amortization expense related to finite-lived intangible assets
for the
three and nine months ended September 30, 2018 and 2017
is as follows:
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Three Months Ended
|
|
Nine Months Ended
|
|
|
September 30,
|
|
September 30,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Amortization expense
|
$
|
10,000
|
$
|
32,000
|
|
32,000
|
$
|
96,000
|
A
schedule of approximate
expected amortization expense related to finite-lived intangible assets
for the years ending December 31,
is as follows:
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Amortization
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Expense
|
2018
|
$
|
41,000
|
2019
|
|
33,000
|
2020
|
|
31,000
|
2021
|
|
26,000
|
2022
|
|
22,000
|
2023+
|
|
69,000
|
8
.
LONG-TERM DEBT
In December 2014, we amended and restated our financing agreement with PNC Bank (“PNC”) to increase the credit facility to $
75.0
million and extend the term of the facility an additional five years to November 2019. The credit facility’s base interest rate is the current prime rate less
0.25%
, however the credit facility provides us the option to borrow on up to eight fixed loans at LIBOR plus
1.25%
in accordance with the 2014 amended and restated credit agreement. The LIBOR rate is determined based on the fixed loan maturities, which vary from 30, 60, 90, or 180 days.
Our
credit facility borrowings consist of the following:
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September 30,
|
|
December 31,
|
|
September 30,
|
|
|
2018
|
|
2017
|
|
2017
|
LIBOR borrowings
|
|
-
|
|
-
|
$
|
10,000,000
|
Prime borrowings
|
|
-
|
$
|
2,199,423
|
|
1,630,000
|
Total credit facility borrowings
|
|
-
|
$
|
2,199,423
|
$
|
11,630,000
|
The total amount available under our amended and restated revolving credit facility is subject to a borrowing base calculation based on various percentages of accounts receivable and inventory. As of
September 30, 2018
, we had total capacity of
$68.3
million.
Credit Facility Covenants
Our amended and restated credit facility contains a restrictive covenant which requires us to maintain a fixed charge coverage ratio. This restrictive covenant is only in effect upon a triggering event taking place (as defined in the amended and restated credit facility agreement).
Our amended and restated credit facility places a restriction on the amount of dividends that may be paid.
At
September 30, 2018
, there was no triggering event and the covenant was not in effect.
9
.
TAXES
We are subject to tax examinations in various taxing jurisdictions. The earliest exam years open for examination are as follows:
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Earliest Exam Year
|
Taxing Authority Jurisdiction:
|
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U.S. Federal
|
|
2014
|
Various U.S. States
|
|
2013
|
Puerto Rico (U.S. Territory)
|
|
2012
|
Canada
|
|
2012
|
Our policy is to accrue interest and penalties on any uncertain tax position as a component of income tax expense. No such expenses were recognized during the
three and nine months ended September 30, 2018
. We do not believe there will be any material changes in our uncertain tax positions over the next 12 months.
Accounting for uncertainty in income taxes requires financial statement recognition, measurement and disclosure of uncertain tax positions recognized in an enterprise’s financial statements. Under this guidance, income tax positions must meet a more-likely-than-not recognition threshold at the effective date to be recognized upon the adoption of the standard. We did not have any unrecognized tax benefits and there was
no
effect on its financial condition or results of operations.
In the third quarter of this year, we recognized a tax benefit of approximately $561
,000
as we adjusted the amount of tran
sition tax we need to pay on earnings from our Dominican Republic subsidiary that were brought back to the U.S. following last year’s tax reform
.
Our original estimate, wh
ich was based on initial
guidelines, proved to be too high once more specific rules were published midway through 2018.
Due to this one-time adjustment,
our effective tax rate was
10.5%
and
16.2%
for the
three and nine months ended September 30, 2018
, respectively
.
Excluding this adjustment, we estimate our 2018 effective tax rate to be
20.5%
.
Our effective tax rate was
34.0%
for
the
three and nine months ended September 30, 2017
.
10
.
EARNINGS PER SHARE
Basic earnings per share (“EPS”) is computed by dividing net income applicable to common shareholders by the weighted average number of common shares outstanding during each period. The diluted earnings per share computation includes common share equivalents, when dilutive.
A reconciliation of the shares used in the basic and diluted income per common
share computation for the
three and nine months ended September 30, 2018 and 2017
is
as follows:
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|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
September 30,
|
|
September 30,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
Basic - weighted average shares outstanding
|
|
7,418,028
|
|
7,437,913
|
|
7,411,670
|
|
7,438,061
|
|
|
|
|
|
|
|
|
|
Dilutive restricted share units
|
|
2,267
|
|
4,339
|
|
966
|
|
3,123
|
Dilutive stock options
|
|
60,045
|
|
749
|
|
41,128
|
|
194
|
|
|
|
|
|
|
|
|
|
Diluted - weighted average shares outstanding
|
|
7,480,340
|
|
7,443,001
|
|
7,453,764
|
|
7,441,378
|
|
|
|
|
|
|
|
|
|
Anti-dilutive securities
|
|
-
|
|
37,361
|
|
39,500
|
|
87,180
|
11
.
SUPPLEMENTAL CASH FLOW INFORMATION
Supplementa
l cash flow information is
as follows:
|
|
|
|
|
|
|
Nine Months Ended
|
|
|
September 30,
|
|
|
2018
|
|
2017
|
|
|
|
|
|
Interest paid
|
$
|
140,427
|
$
|
292,961
|
|
|
|
|
|
Federal, state, and local income taxes (refund) paid, net
|
$
|
496,678
|
$
|
646,129
|
|
|
|
|
|
Change in contract receivables, net
|
$
|
(4,849,176)
|
$
|
-
|
|
|
|
|
|
Change in contract liabilities, net
|
$
|
4,849,176
|
$
|
-
|
|
|
|
|
|
Property, plant, and equipment purchases in accounts payable
|
$
|
119,604
|
$
|
284,370
|
12. SEGMENT INFORMATION
We have identified
three
reportable segments: Wholesale, Retail and Military. Wholesale includes sales of footwear and accessories to several classifications of retailers, including sporting goods stores, outdoor specialty stores, online retailers, independent retailers, mass merchants, retail uniform stores, and specialty safety shoe stores.
Our Retail business includes direct sales of our products to consumers through our e-commerce websites, our Rocky outlet store, and Lehigh business.
Military includes sales to the U.S. Military. The following is a summary of segment results for the Wholesale, Retail, and Military segments.
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
|
September 30,
|
|
|
September 30,
|
|
|
2018
|
|
2017
|
|
|
2018
|
|
2017
|
NET SALES:
|
|
|
|
|
|
|
|
|
|
Wholesale
|
$
|
47,000,718
|
$
|
46,049,837
|
|
$
|
127,235,693
|
$
|
122,323,991
|
Retail
|
|
11,915,337
|
|
11,069,669
|
|
|
36,712,440
|
|
33,944,718
|
Military
|
|
6,999,509
|
|
7,555,576
|
|
|
21,559,944
|
|
29,934,280
|
Total Net Sales
|
$
|
65,915,564
|
$
|
64,675,082
|
|
$
|
185,508,077
|
$
|
186,202,989
|
|
|
|
|
|
|
|
|
|
|
GROSS MARGIN:
|
|
|
|
|
|
|
|
|
|
Wholesale
|
$
|
15,448,657
|
$
|
14,087,674
|
|
$
|
42,492,453
|
$
|
38,623,219
|
Retail
|
|
5,344,274
|
|
4,877,916
|
|
|
16,145,274
|
|
14,889,559
|
Military
|
|
1,607,310
|
|
545,954
|
|
|
4,260,109
|
|
3,910,366
|
Total Gross Margin
|
$
|
22,400,241
|
$
|
19,511,544
|
|
$
|
62,897,836
|
$
|
57,423,144
|