TLF 8-K
Tandy Leather Factory Inc (TLF)
8-K
2022-08-17
For: 2022-08-17
View Original
Added on
April 08, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Securities registered pursuant to Section 12(b) of the Act:
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Over-the-counter “pink sheets” |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of
the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised
financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02. |
Results of Operations and Financial Condition
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On August 17, 2022, Tandy Leather Factory, Inc. (the “Company”) hosted a web-based presentation, which was previously announced by the Company’s press
release dated August 10, 2022. The investor presentation includes certain information not previously announced regarding the Company’s balance sheet and historical performance, as well as certain projections for future performance. A copy of the
presentation materials is attached as Exhibit 99.1.
The information furnished pursuant to Item 2.02 of this report and the exhibits attached hereto shall not be deemed “filed” for purposes of Section 18 of
the Securities Exchange Act of 1934 as amended (the “Exchange Act”, or otherwise subject to liabilities under that section, nor shall they be deemed incorporated by reference in any filing of the Company with the Securities and Exchange Commission
under the Exchange Act or the Securities Act of 1933, as amended (the “Securities Act”), whether made before or after the date hereof, except as shall be expressly set forth by specific reference in such filing.
| Item 9.01 |
Financial Statements and Exhibits.
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Exhibits
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No.
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Exhibit
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Investor Presentation Materials dated August 17, 2022
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Certain statements contained in this report and other materials the Company
files with the SEC, as well as information included in oral statements or other written statements made or to be made by the Company, other than statements of historical fact, are forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally are accompanied by words such as “may,” “will,” “could,” “should,” “anticipate,” “believe,” “budgeted,”
“expect,” “intend,” “plan,” “project,” “potential,” “estimate,” “continue,” “outlook,” “forecast” or “future,” variations thereof or other similar statements. Please refer to the Company's Annual Report on Form 10-K for the fiscal year ended
December 31, 2018 for additional information concerning these and other uncertainties that could negatively impact the Company. The Company assumes no obligation to update or otherwise revise its forward-looking statements, except as
required by law.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.
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TANDY LEATHER FACTORY, INC.
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Date: August 17, 2022
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By:
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/s/ Michael Galvan
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Michael Galvan, Chief Financial Officer
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Exhibit 99.1
Q2 2022 MANAGEMENT DISCUSSION OF FINANCIAL RESULTS
2 Today’s presentation will include statements, other than historical results, that constitute
forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, each as amended. These statements reflect our expectations or estimates based on the information we have today but are not
guarantees or predictions of future performance. They involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results to differ materially from the statements contained
in this presentation. You are cautioned not to put undue reliance on these forward-looking statements. The Company assumes no obligation to update or otherwise revise these forward-looking statements, except as required by law. FORWARD-LOOKING
STATEMENTS
3 Financial Snapshot – 2022 Q2 2022 SALES GROSS MARGIN PROFIT BALANCE SHEET SHARE
BUY-BACKS $18.4MM (0.8%) vs 2021 57.0% ($0.7MM) operating loss ($0.1MM) adjusted EBITDA(1) $5.6MM cash $40.1MM inventory no debt 360k shares 4.2% of total shares $5.00 average price per share Year-to-date $38.9MM (2.6%) vs
2021 57.7% $0.1MM operating income $1.5MM adjusted EBITDA(1)
4 Sales Q2 2022 2022 Q2 sales were down less than 1% versus Q2 of 2021, an improvement in trend over the
first quarter. However, the retail environment remains challenging. (0.8%) (2.6%) RETAIL ECOMMERCE COMMERCIAL 73% 19% 8% 73% 20% 7%
5 Gross Profit Q2 2022 Q2 gross profit came in 6.9% below Q2 of 2021 due to slightly lower sales and
significantly lower margin rate. (6.9%) (4.4%)
6 Profitability Q2 2022 Profitability in 2022 has been affected by soft sales, gross margin impacts, and
higher operating costs associated mostly with the tight labor market.
7 Since 1919, Tandy Leather has been the leading supplier of quality leather, machines, tools, kits and
instructional resources for generations of hobbyists and trade craftspeople making a living selling leatherwork. Tandy Highlights LARGE & GROWING MARKET MARKET LEADER MULTI-CHANNEL DISTRIBUTION CAPABLE TEAM STRONG FINANCIAL
POSITION $40B global craft market $500MM leathercrafting market Growing at 8% 17% share in fragmented market Heritage brand 104* Retail Stores Global Ecommerce Commercial Division Transformed business Completed restatement Managed
through COVID Long-term plan to $100MM+/$15MM $5.6MM net cash $40MM inventory $13-15MM real estate No debt *July 2022
8 We have a roadmap to $100MM+ in sales and $15MM in operating income – and we have a plan to get
there. Future Roadmap CORE BUSINESS FOCUS ON TEACHING PILOT NEW FORMATS GROW COMMERCIAL @projectfree2fly PRODUCT IMPROVEMENTS @legacybrandleather OPTIMIZE RETAIL FLEET @powderriverleather NEW OPPORTUNITIES YOUTH CRAFTING ART
THERAPY CHAIN WHOLESALE INTERNATIONAL 4 KEY GROWTH INITATIVES Tandy is positioned to bring new customers into the craft and expand the leathercrafting category.
9 Key Principles Disciplined Capital Allocation Conservative Balance Sheet Focus on Long-Term
Shareholder Value Financial Focus on Consumer Proposition Build Durable Business Foundation Remain Nimble Operating
10 Questions & Discussion
11 (1)Non-GAAP Reconciliation @duckandchick