FORT WORTH, Texas, July 24 /PRNewswire/ -- The Leather Factory, Inc. (Amex: TLF) today reported results for the second quarter of 2001. Net income for the quarter ended June 30, 2001 was $621,910 or $0.06 per share, compared to net income of $493,394 or $0.05 per share for the second quarter of 2000. Net sales during the second quarter were $9,359,893 -- up 23% over sales of $7,602,405 for the same quarter last year. Tandy Leather Company, a subsidiary of TLF acquired in November 2000, accounted for the sales increase. For the six months ended June 30, 2001, sales increased 25% to $18,732,506 from $15,007,962 in sales for the first six months of 2000. Net income for the six months ended June 30, 2001 was $1,119,194, or $0.11 per share, compared to net income of $877,336, or $0.09 per share, for the same period in 2000.
Wray Thompson, Chairman and Chief Executive Officer, commented, "Tandy Leather, our subsidiary, has made a significant contribution to our sales growth. However, it is our TLF operation that has generated the recent improvement to our bottom line. We are continuing to improve Tandy's operating results with cost controls and inventory management and believe it is close to being in a position to add to our profits as well as our sales. Overall, our performance continues to beat internal projections with increasing margins and higher net profits."
The Leather Factory, Inc., (http://www.leatherfactory.com ), headquartered in Fort Worth, Texas, is an international marketer and wholesale distributor of a broad product line including leather, leatherworking tools, buckles and adornments for belts, leather dyes and finishes, shoe repair supplies, saddle and tack hardware, and do-it-yourself kits, and is a manufacturer and distributor of fancy hat trims, leather lacing and kits. The Company distributes its products through 29 sales and distribution units located throughout the U.S. and Canada and through its subsidiary, Tandy Leather Company, via mail/telephone/website orders (http://www.tandyleather.com ). Its common stock trades on the American Stock Exchange with the symbol "TLF".
This news release may contain forward-looking statements. All forward- looking statements made here or in other news releases issued by The Leather Factory, Inc. are based on current expectations as of the date of the release. These forward-looking statements involve risks and uncertainties that could cause the results of The Leather Factory, Inc. to differ materially from management's current expectations. Many of these risks and uncertainties are detailed from time to time in TLF's reports filed with the Securities and Exchange Commission, including its most recent annual report on Form 10-K.
THE LEATHER FACTORY, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
THREE and SIX MONTHS ENDED JUNE 30, 2001 and 2000
THREE MONTHS SIX MONTHS
2001 2000 2001 2000
NET SALES $9,359,893 $7,602,405 $18,732,506 $15,007,962
COST OF SALES 4,381,098 3,801,372 8,869,495 7,636,338
Gross profit 4,978,795 3,801,033 9,863,011 7,371,624
OPERATING EXPENSES 3,790,618 2,818,907 7,710,932 5,597,296
INCOME FROM
OPERATIONS 1,165,297 982,126 2,129,199 1,774,328
OTHER EXPENSE:
Interest expense 136,052 144,905 273,207 314,100
Other, net 4,351 10,864 11,641 16,206
Total other
expense 117,523 155,769 261,968 330,306
INCOME (LOSS) BEFORE
INCOME TAXES 1,047,774 826,357 1,867,231 1,444,022
PROVISION (BENEFIT)
FOR INCOME TAXES 425,864 332,963 748,037 566,686
NET INCOME (LOSS) $621,910 $493,394 $1,119,194 $877,336
NET INCOME (LOSS) PER
COMMON SHARE $0.06 $0.05 $0.11 $0.09
NET INCOME (LOSS) PER
COMMON SHARE --
Assuming Dilution $0.06 $0.05 $0.11 $0.09
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Tandy Leather Factory, Inc.'s business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.
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