Good afternoon, ladies and gentlemen. And thank you for standing by. Welcome to the Rocky Brands Third Quarter Fiscal 2014 Earnings Conference Call. At this time, all participants are in a listen-only mode. Following the presentation, we’ll conduct a question-and answer session. Instructions will be provided at that time for you to queue up for questions. (Operator Instructions). I’d like to remind everyone that this conference call is being recorded. I will now turn the conference over to Brendon Frey of ICR. Thank you sir. You may begin.

Thank you. Please note that today’s discussion, including the Q&A period may contain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Such statements are based on information and assumptions available at this time and are subject to change, risks, and uncertainties, which may cause actual results to differ materially. We assume no obligation to update such statements. For a complete discussion of the risks and uncertainties, please refer to today’s press release, and reports filed with the Securities and Exchange Commission, including our 10-K for the year ended December 31, 2013. With that, I’ll turn the call over to David Sharp, Rocky’s President and CEO.

Thanks Brendon. Joining with me on the call today is Jim McDonald, our Chief Financial Officer. After a very strong first half of the year, our sales growth continued in the third quarter but at a more moderate pace. We continued to experience positive responses through our product line up, including several new collections that we brought to market this year that have helped increase our distribution footprint. The warm dry September coupled with the fact that consumers are buying to closer to need, a portion of the end demand we typically see late in the third quarter into the fourth quarter. But based on current momentum, we anticipate growth to reaccelerate through the remainder of the year. Before we discuss our outlook, let me walk through the drivers of our third quarter performance. Starting with our wholesale business, Work, our largest category was up 3% driven by a high single-digit gain for the Rocky Work footwear coupled with flat performances for Georgia Boot and our private label business with Tractor Supply. Selling these new products for the quarter was generally in line with our expectations and included several of our newest innovative boots such as Georgia’s Homeland series which is an extremely flexible with durable outsole and the Rocky branded elements collection of trade-specific footwear. However, primarily due to warm dry conditions in many parts of the country, we didn’t experienced the level of replenishment orders that we have forecasted for September. The good news is that as the climate has turned colder and wetter in many parts of the U.S. in October, sales of our Work lines especially our insulated products have started to accelerate. Turning to our second largest category, Western, sales increased 5% driven by another strong quarter for the Durango brand which was up 17%…

Thanks, David. Net sales for the third quarter increased 3.6% to $72.7 million, compared to $70.2 million for the corresponding period a year ago. Our wholesale sales for the third quarter increased 8.3% to $62.1 million which included $4.4 million of Creative Recreation sales compared to $57.4 million last year. Retail sales for the third quarter were $9.5 million compared to $9.6 million a year ago, while military segment sales decreased to $1.1 million versus $3.2 million for the same period in 2013. Gross profit in the third quarter was $24.3 million or 33.4% of sales compared to $22.7 million or 32.4% of sales for the same period last year. The 100 basis point increase was driven by improved wholesale margins that came from improved operating efficiencies in our company-owned manufacturing facilities, partially offset by lower retail gross margins due to our shift to the web based retail platform which carries lower gross margins than our previous mobile store structure, but lower operating expenses as well. Selling, general and administrative expenses were $19.4 million for the third quarter of 2014, compared to $18.3 million a year ago. The $1.1 million increase in SG&A was driven by additional expenses associated with the Creative Recreation brand, which was acquired in December of 2013, partially offset by a $400,000 decrease in operating expenses associated with our legacy brands. Income from operations was $4.9 million or 6.8% of net sales compared to $4.4 million or 6.3% of net sales, in the prior year period. For the third quarter, interest expense was $250,000, up from $2,000 last year due to higher bonds related t the acquisition of Creative Recreation. Net income was $3.1 million or $0.42 per diluted share compared to $2.9 million or $0.39 per diluted share last year. Turning to the balance sheet, our funded debt at September 30, 2014 increased to $50.7 million from $42.4 million at September 30, 2013, primarily due to the acquisition of Creative Recreation. During the quarter we paid out $750,000 to shareholders in quarterly dividends. Inventory increased 14.2% or $11.2 million to $90.1 million at September 30, 2014, which included approximately $2.9 million in Creative Recreation inventory compared with $78.9 million on the same date a year ago. We feel comfortable with our current inventory position and based on sales projections, we expect inventory comparisons on a year-over-year basis to be lower at the end of Q4 versus the end of Q3. I will now turn it back to David for some closing comments.

Thanks Jim. [Followed] by the uncertain cold temperatures in several parts of the country, the fourth quarter is off to a solid start and will benefit from the pickup of sales that shifted out of the third quarter as select retailers pushed out some deliveries of our insulated and waterproof boots closer to (inaudible). Based on current momentum and visibility, we feel comfortable with the external fourth quarter projections which call for approximately 20% top-line growth over last year inclusive of sales of the Creative Recreation brand. Looking at next year, we believe we’re well positioned from a product and distribution standpoint to build on the positive gains we’ve made in several areas of our wholesale and retail businesses during 2014. We look forward to sharing more details on our fourth quarter call in February. Operator, we’re now ready to take questions.

Thank you. At this time, we’ll be conducting a question-and-answer session. (Operator Instructions). Our first question today is coming from Mitch Kummetz from Robert W. Baird. Please proceed with your question.

Yes. Thank you. Kind of have four questions and David I want to start just drilling down on a wholesale a little bit more. So in your prepared remarks you mentioned that deliveries were pushed out, replenishment was below plan all of this having to do with the weather. I mean did you see retailers canceling orders at all or are they just looking for later deliveries?

I think they just go with the later deliveries. I mean there were no orders cancelled because of replenishment. There were orders that were in January because of replenishment.

So what about -- because I know you had a really strong backlog going into the back half. I mean I think you’d said in the past your backlog was up double-digits. I’m just wondering if how those forward orders work and if the product wasn’t shipped in the quarter on that order book, is that now just being scheduled for later delivery?

It’s been scheduled for later delivery. We’re already -- and what we shipped now in the first two to three weeks in October. And we picked up what we felt we’ve lost in September.

Okay, okay. And now it’s kind of my next question because -- and again I just want to make sure I’m clear on this because it seems like we’re not going to dealing with the compressed season because the season is off to a slow start. I mean I would think normally in a compressed season situation maybe end up with less volume than you would had the season started out strong. But again, to your comments just then, it sounds like you’ve already made up for what you are. So you’re kind of back on track with where you thought you would have been. Is that right?

Yes. That is correct.

Okay, okay. And inventory levels at retail given the slow start and then the pick-up in the last few weeks, are the pretty clean? I mean do you think that we can proceed through the quarter?

We’re not getting any push back, no.

Okay, all right. And then on Creative Rec. I mean it sounds like the business is kind of on track here. I know you’ve previously said that you’re looking for about $17 million to $18 million in revenue for the year. Is that still kind of the range given kind of where you are or has that got any better or worse?

Yes. I think at this point we’ll sign up for 17.

Okay, all right. And then Jim on the SG&A, it was only up I think about a million year-over-year from Q3 last year which was below what I thought it was going to be especially with the addition of expenses tied to Creative Rec. I mean did you guys deferred some spending or is some of that tied to maybe bonus accruals or anything just kind of given where you are year-to-date?

No, the only deferral that we had on spending was about $0.5 million in advertising in some late third quarter into early fourth quarter. So that’s the only deferral. We were up $1.5 million in Creative Recreation. Creative Recreation was $1.5 million, so the expenses were down about $400,000 all of the coming trends of kind of advertising.

Okay. Thanks for clearing that out. And then I guess just lastly Jim can you just kind of touch upon the gross margin by segment in the quarter?

Yes. Wholesale was 32.2, retail was 43.8 and military was 15.3.

Okay. All right. Thanks a lot. Good luck guys.

Thank you.

Thank you. (Operator Instructions). If there are no further questions at this time; I’d like to turn the floor back over to management for any further or closing comments.

Okay. Well, thanks operator. And thank you everyone for joining us on the call. We look forward to speaking with you in February.

All right. So that does conclude today’s teleconference. You may disconnect your lines at this time. And have a wonderful. We thank you for your participation today.