Key Developments For Rocky Brands, Inc.
Rocky Brands, Inc. (RCKY.O) (Nasdaq)
Rocky Brands, Inc. Announces Footwear Order From General Services Administration
Rocky Brands, Inc. announced that it has received a blanket purchase agreement to produce insulated boots for the General Services Administration (GSA). Under the terms of the blanket purchase agreement, the GSA has the right to purchase approximately $29 million of these boots through July 2014. The Company has received an initial order to produce 205,000 pairs of these boots with an approximate value of $14.5 million. Shipment of this order is expected to begin in September 2009. All of these boots will be manufactured in the Company's factory in Moca, Puerto Rico.
Rocky Brands, Inc. Announces Agreement With Garlands To Distribute Hunting Gear In United Kingdom
Rocky Brands, Inc. announced that it has entered into a new, multi year distribution agreement with United Kingdom-based Garlands, a distributor of hunting apparel and sporting goods.
Rocky Brands, Inc. Adopts Shareholder Rights Plan
Rocky Brands, Inc. announced that its Board of Directors has adopted a Shareholder Rights Plan (Rights Plan) under which Rocky Brands, Inc. will issue a dividend of one Right for each of the Company's common shares, no par value, held by shareholders of record as of the close of business on June 22, 2009. The Rights Plan is designed to assure shareholders fair value in the event of a future unsolicited business combination or similar transaction involving the Company. The Company added that the Plan was not adopted in response to any attempt to acquire the Company and that it is not aware of any such efforts. Each Right will initially entitle shareholders to purchase one one-hundredth of a share of Series B Junior Participating Cumulative Preferred Stock (approximately equivalent to one share of Common Stock) for $16.00. The Rights, however, are not immediately exercisable and will become exercisable only upon the occurrence of certain events. Under the Rights Plan, the Rights, with certain exceptions, will be exercisable only if a person or group acquires 20% or more of the Company's common shares or announces a tender or exchange offer that could result in ownership by a person or group of 20% or more of the Company's common shares. The Rights Plan has a term of three years, and the Rights will expire on June 11, 2012, unless earlier terminated or redeemed by the Board of Directors.
Rocky Brands, Inc. Announces Amendment Of Credit Facility
Rocky Brands, Inc. announced that it has amended its credit facility with GMAC Commercial Finance LLC to extend the facility's maturity through April 30, 2012. The credit facility was originally scheduled to mature on January 5, 2010. In addition, the amendment reduces the commitment under the facility from $100 million to $85 million. In addition, the Company proactively reduced the amount of the facility in order to save expenses associated with charges on the undrawn portion of the credit facility as the Company do not expect to have a need for more than $85 million at any point through April 2012.
Rocky Brands, Inc. Comments On Q4 2008 Profit Outlook-Conference Call
Rocky Brands, Inc. announced that it expects to deliver improved profitability on a year-over-year basis in the fourth quarter of 2008. The Company reported net profit of $0.10 million in the fourth quarter of 2007. According to Reuters Estimates, analysts are expecting the Company to report net profit of $0.38 million for the fourth quarter of 2008.
