FORT WORTH, Texas, Oct. 24 /PRNewswire/ -- The Leather Factory, Inc. (Amex: TLF) today reported results for the third quarter of 2001. Net income for the quarter ended September 30, 2001 was $396,528 or $0.04 per share, compared to net income of $315,099 or $0.03 per share for the third quarter of 2000. Net sales during the third quarter were $9,198,401 - up 25% over sales of $7,374,556 for the same quarter last year. Tandy Leather Company, a subsidiary of TLF acquired in November 2000, accounted for 80% of the sales increase.
For the nine months ended September 30, 2001, sales increased 25% to $27,930,907 from $22,382,518 in sales for the first nine months of 2000. Tandy's sales contributed approximately 90% of the increase. Net income for the nine months ended September 30, 2001 was $1,515,722, or $0.15 per share, compared to net income of $1,192,435, or $0.12 per share, for the same period in 2000.
Ron Morgan, President and Chief Operating Officer, commented, "We are pleased with our results again this quarter. Sales dropped off slightly during the last several weeks of the quarter, as was expected given the state of the nation. However, it didn't have a significant impact on our results, and the beginning of our fourth quarter is rebounding nicely and looks promising."
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".
Contact:
Wray Thompson, The Leather Factory, Inc. (817) 496-4414
Shannon L. Greene, The Leather Factory, Inc. sgreene@leatherfactory.com
Mark Tyler, T.T. Communications, Inc. (845) 368-4377
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. In addition, although the recent terrorist action in the country did not have a significant effect on the Company's financial performance, uncertainties surrounding these events could adversely affect the Company's sales and costs of operations in future periods.
THE LEATHER FACTORY, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
THREE and NINE MONTHS ENDED SEPTEMBER 30, 2001 and 2000
THREE MONTHS NINE MONTHS
2001 2000 2001 2000
NET SALES $ 9,198,401 $ 7,374,556 $ 27,930,907 $22,382,518
COST OF SALES 4,586,827 3,660,995 13,456,322 11,297,333
Gross profit 4,611,574 3,713,561 14,474,585 11,085,185
OPERATING EXPENSES 3,857,354 3,012,409 11,568,286 8,619,243
INCOME FROM OPERATIONS 754,220 701,152 2,906,299 2,465,942
OTHER EXPENSE:
Interest expense 67,919 135,316 341,126 439,878
Other, net 20,317 14,547 31,959 30,752
Total other expense 88,236 149,863 373,085 470,630
INCOME BEFORE
INCOME TAXES 665,984 551,289 2,533,214 1,995,312
PROVISION
FOR INCOME TAXES 269,456 236,190 1,017,492 802,877
NET INCOME $ 396,528 $ 315,099 $ 1,515,722 $ 1,192,435
NET INCOME
PER COMMON SHARE $ 0.04 $ 0.03 $ 0.15 $ 0.12
NET INCOME PER
COMMON SHARE--
Assuming Dilution $ 0.04 $ 0.03 $ 0.15 $ 0.12
"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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