Tandy Leather Factory Reports First Quarter 2022 Results; Announces Investor Day Presentation June 7
FORT WORTH, Texas, May 17, 2022 (GLOBE NEWSWIRE) -- Tandy Leather Factory, Inc. (Pink: TLFA) today announced the Company's financial results for the first quarter 2022.
First Quarter Highlights:
Net sales of $20.5 million
Generated gross profit of $11.9 million and a gross margin of 58.2%
Operating income of $0.8 million
Net income of $0.6 million, or $0.08 per diluted share
Adjusted EBITDA* of $1.6 million
Ended the quarter with $10.3 million in cash and cash equivalents
Janet Carr, Chief Executive Officer of the Company, said, "After a strong 2021, our first quarter sales softened, which we believe was largely due to lower consumer demand as a result of inflation and other global events, coupled with comparison to prior year COVID-era stimulus payments that fueled sales. In addition, the decrease in sales was partly impacted by our change in promotional cadence versus the first quarter of 2021."
"Despite the challenges, we were able to deliver positive operating and net income and positive cash flow from operations while investing in inventory to mitigate increasing supply chain costs and lead times and increasing product costs. More importantly, we are really pleased with the significant improvements we've continued to make with all of the key consumer-facing aspects of the brand - maintaining competitive pricing while improving quality and assortment. We have kept our focus on making our customers happy while weathering restatement, COVID, inflation, war and other uncontrollable events."
Tandy Leather Factory's first quarter sales were $20.5 million in 2022, down from $21.4 million in 2021. 2022 first quarter gross profit was $11.9 million versus $12.2 million in 2021. As of March 31, 2022, the Company held $10.3 million of cash and cash equivalents, up from $10.2 million at December 31, 2021. The Company had net basic and diluted net income in the quarter of $0.08 per diluted share, which was flat from the prior year. Additional details regarding the Company's first quarter 2022 results can be found in its Quarterly Report on Form 10-Q, filed with the SEC on May 16, 2022.
The Company will host an in-person investor presentation on June 7, 2022, at 12:30 pm CT (following the conclusion of the Company's Annual Meeting of Stockholders) at its Flagship Fort Worth Store at 1900 SE Loop 820, Fort Worth, TX 76140. Investors will be invited to attend the presentation, participate in discussion and a tour of our facilities. For those not attending in person, the presentation and discussion will also be available online at the same time. For investors and others planning to watch the presentation online, the Company will issue a press release prior to the meeting with log-in information. Persons wishing to attend (whether in person or online) are requested to notify the Company in advance by completing a brief attendance survey, which can be found at: https://www.surveymonkey.com/r/9ZH2NYK.
The Company's common stock currently trades on the OTC "Pink Current Information" Market. The Company submitted its application to re-list its stock on Nasdaq and is working to obtain Nasdaq's final approval. Trading remains restricted under the SEC's recently revised Rule 15c2-11, pending FINRA's approval of a broker-dealer to act as a market maker for Tandy stock; an application to FINRA was filed in February 2022 and is currently awaiting approval.
* Adjusted EBITDA is a non-GAAP financial measure that excludes non-routine items and stock-based compensation expense (which does not require settlement in cash) in order to provide helpful information to investors to facilitate a comparison of the Company's operating performance to that of other companies. Non-routine items are primarily legal and accounting costs associated with the restatement. The following is a reconciliation of the Company's net income to Adjusted EBITDA (in thousands):
Three Months Ended March 31, 2022
Depreciation and amortization
Income tax provision
Non-routine items related to restatement
Tandy Leather Factory, Inc., (http://www.tandyleather.com), headquartered in Fort Worth, Texas, is a specialty retailer of a broad product line, including leather, leatherworking tools, buckles and adornments for belts, leather dyes and finishes, saddle and tack hardware, and do-it-yourself kits. The Company distributes its products through its 104 North American stores located in 40 US states and six Canadian provinces, and one store located in Spain. Its common stock currently trades over the counter with the symbol "TLFA". To be included on Tandy Leather Factory's email distribution list, go to: http://www.b2i.us/irpass.asp?BzID=1625&to=ea&s=0.
This news release may contain statements regarding future events, occurrences, circumstances, activities, performance, outcomes and results that are considered "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Actual results and events may differ from those projected as a result of certain risks and uncertainties. These risks and uncertainties include but are not limited to: changes in general economic conditions, negative trends in general consumer-spending levels, failure to realize the anticipated benefits of opening retail stores; availability of hides and leathers and resultant price fluctuations; change in customer preferences for our product, and other factors disclosed in our filings with the Securities and Exchange Commission. These forward-looking statements are made only as of the date hereof, and except as required by law, we do not intend to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Tandy Leather was founded in 1919 with the dream of sharing leathercraft with the world. Today, we're proud to continue this legacy as trusted source of quality leather, tools, and teaching materials for leatherworkers everywhere.