Tandy Leather Factory Inc 8-K, filed Mar 22, 2024
Tandy Leather Factory Inc (TLF)
8-K
2024-03-22
For: 2024-03-22
View Original
Added on
April 08, 2026
About this 8-K
Tandy Leather Factory Inc filed this 8-K on March 22, 2024.
Items reported
- Item 2.02: Financial results
- Item 9.01: Financial statements and exhibits
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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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
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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 March 22, 2024, Tandy Leather Factory, Inc. (the “Company”) issued a press release (the “Press Release”) and filed its Annual Report on Form 10-K
announcing its financial results for fiscal year 2023. A copy of the Press Release 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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(d) Exhibits
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No.
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Exhibit
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Press Release dated March 22, 2024
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Forward Looking Statements
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, 2022 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: March 22, 2024
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By: /s/ Janet Carr
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Janet Carr, Chief Executive Officer
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Exhibit 99.1
FOR IMMEDIATE RELEASE
March 22, 2024
Tandy Leather Factory Reports Fourth Quarter and Full Year 2023 Results
FORT WORTH, TEXAS – March 22, 2024 (GLOBE NEWSWIRE) – Tandy Leather Factory, Inc. (Nasdaq: TLF) today announced the Company’s financial results for the fourth fiscal quarter and full year 2023.
Highlights from 2023:
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Revenues were $76.2 million, down 5.1% from 2022
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Generated operating income of $4.4 million
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Net income of $3.8 million, up from $1.2 million in 2022
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Gross margins of 59.3%, up from 57.9% in 2022
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Operating expenses $40.8 million, down 9.7% from 2022
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Adjusted EBITDA* of $6.5 million
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Ended year with $12.2 million of cash and cash equivalents
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The Company’s full year sales were $76.2 million in 2023, down from $80.3 million in 2022. Operating expenses decreased to $40.8 million from $45.1 million in 2022
and decreased as a percentage of sales to 53.5% from 56.2% in 2022. 2023 full year gross profit was $45.2 million, or 59.2%, vs $46.5 million, or 57.9%, in 2022. Net income was $3.8 million in 2023, compared to $1.2 million in 2022. Additional
details regarding the Company’s 2023 results can be found in its Annual Report on Form 10-K, filed with the SEC on March 22, 2024.
Tandy Leather Factory’s fourth quarter sales were $20.8 million in 2023, down from $22.4 million in 2022. Fourth quarter 2023 gross profit was $11.5 million, down
from $12.5 million in 2022. Fourth quarter operating income was $1.7 million, up from $0.3 million in 2022. As of December 31, 2023, the Company held $12.2 million of cash and cash equivalents, up from $8.0 million a year earlier. The Company
held inventory of $38.0 million, down from $38.2 million as of December 31, 2022. The Company had basic and diluted net income in the quarter of $0.23 per share, versus $0.06 in the prior year.
Janet Carr, Chief Executive Officer of the Company, said, “In 2023, Tandy focused on growing profits and cash against the backdrop of an environment of weaker retail
sales and continued high inflation. Our total sales did decline, by about 5% including 6 stores closed in 2022 and 2023. However, we grew our operating income by more than $3 million versus 2022 driven by disciplined management of operating
expenses and some capitalizable costs like freight. Operating expenses declined by nearly 10% over 2022, as we established a new baseline cost structure. Our year-end cash also grew by $4.2 million to $12.2 million. For 2024, we will continue to
manage costs while putting renewed focus on sales with selective new stores and continued improvement in the customer experience.”
The Company will host an investor presentation online (via Zoom) and by phone on Tuesday March 26, at 9:00 am CDT to discuss the Company’s first quarter operating
results. Please note that those wishing to ask questions during the presentation will need to have an audio connection (by device or phone dial-in) in order to do so; questions submitted by text or chat will not be read aloud during the
presentation but may be answered privately afterwards. Investors and other interested participants may attend the presentation on the web or by phone as follows:
Topic: Tandy Leather 2023 Year-End Investor Call
Time: March 26, 2024, 9:00 AM
Central Time (US and Canada)
Join Zoom Meeting
https://us06web.zoom.us/j/84143000816
Meeting ID: 841 4300 0816
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* Adjusted EBITDA is a non-GAAP financial measure that the Company believes helps investors to compare its
operating performance to that of other companies. The following is a reconciliation of the Company’s net income to Adjusted EBITDA (in millions):
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Year ended
December 31, 2023
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Net income
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$
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3.8
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Add back:
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Depreciation and amortization
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1.2
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Interest income
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(0.1
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Income tax provision
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0.8
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Stock-based compensation
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0.8
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Adjusted EBITDA
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$
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6.5
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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 101 North American stores located in 40 US states and six Canadian provinces, and one store located in Spain. Its common stock
trades on the Nasdaq Capital Market under the symbol “TLF”. 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.
Contact: Janet Carr, Tandy Leather Factory, Inc. (817) 872-3200 or janet.carr@tandyleather.com
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.