Tandy Leather Factory Inc 8-K, filed Apr 6, 2023
Tandy Leather Factory Inc (TLF)
8-K
2023-04-06
For: 2023-04-03
View Original
Added on
April 08, 2026
About this 8-K
Tandy Leather Factory Inc filed this 8-K on April 6, 2023, reporting on events of April 3, 2023.
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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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 of
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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
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| Item 2.02. |
Results of Operations and Financial Condition
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On April 3, 2023, Tandy Leather Factory, Inc. (the “Company”) issued a press release (the “Press Release”) announcing its financial results for the
fourth fiscal quarter of and full year 2022, as disclosed in the Company’s Annual Report on Form 10-K. 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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Exhibits
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No.
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Exhibit
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Press Release dated April 3, 2023
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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: April 5, 2023
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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
April 3, 2023
Tandy Leather Factory Reports Fourth Quarter and Full Year 2022 Results
FORT WORTH, TEXAS – April 3, 2023 (GLOBE NEWSWIRE) – On March 31, 2023, Tandy Leather Factory, Inc. (Nasdaq: TLF) announced the Company’s financial results for the fourth quarter and full year 2022.
Highlights from 2022:
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Revenues were $80.3 million, down 3% from 2021
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Operating income of $1.4 million
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Net income of $1.2 million
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Gross margins of 57.9%
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Adjusted EBITDA* of $4.0 million
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Repurchased over 360,000 shares of common stock for a total of $1.8 million
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Ended year with $8.0 million of cash and cash equivalents
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Janet Carr, Chief Executive Officer of the Company, said, “In 2022 our sales declined 2.8% and gross profits declined 1.1% from a strong 2021, as consumer demand was
inhibited by inflation and ongoing economic uncertainty, and moderated over stimulus-driven highs in 2021. Operating expenses increased by $0.4 million, or 0.9%, from 2021, driven by higher wages and some irregular expenses. Although gross profits
declined by 1.1%, our gross margins increased by a percentage point to 57.9%, as our pricing strategies and channel mix continued to gain traction with our customers. We ended the year with a solid $8.0 million in cash after the repurchase of $1.8
million of Tandy shares.”
“We expect that the current macroeconomic challenges could continue to impact top-line sales for the foreseeable future. And while some unexpected
expenses dampened 2022 results, we have taken aggressive action to manage costs in 2023, including the closure of 5 underperforming stores since the beginning of 2022. We have already begun to see benefits of these initiatives, and we expect this to
result in increased profits and cash from operations in 2023.”
Tandy Leather Factory’s fourth quarter sales were $22.4 million in 2022, down from $23.4 million in 2021. 2022 fourth quarter gross profit was $12.5 million or 55.8%,
versus $12.4 million or 53.1% in 2021. As of December 30, 2022, the Company held $8.0 million of cash and cash equivalents, versus $10.2 million at December 31, 2021.
The Company’s full year sales were $80.3 million in 2022, down from $82.7 million in 2021. Operating expenses increased to $45.1 million from $44.7 million in 2021 and
increased as a percentage of sales to 56.2% from 54.1% in 2021. 2022 full year gross profit was $46.5 million, or 57.9%, vs $47.0 million, or 56.9%, in 2021. Net income was $1.2 million in 2022, compared to $1.4 million in 2021. Additional details
regarding the Company’s 2022 results can be found in its Annual Report on Form 10-K, filed with the SEC on March 31, 2023.
The Company will host an investor call online (via Zoom) and by phone on Tuesday, April 4, 2023, at 9:00 am CDT to discuss the Company’s fourth quarter and full-year
operating results and longer-term strategies. Please note that those wishing to ask questions during the call 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 call but may be answered privately afterwards. Investors and other interested participants may attend the call on the web or by phone as follows:
Topic: Tandy Leather Investor Call 4/4/23
Time: Apr 4, 2023 09:00 AM Central Time (US and Canada)
Join Zoom Meeting
https://us02web.zoom.us/j/83653058929
Meeting ID: 836 5305 8929
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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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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 102 North American stores located in 40 US states and six Canadian provinces, one store located in Spain and fulfills ecommerce orders
through its distribution center in Texas. 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.