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

Date of report (Date of earliest event reported:)
November 12, 2024

graphic

Tandy Leather Factory, Inc.
(Exact Name of Registrant as Specified in Its Charter)

Delaware
(State or Other Jurisdiction of Incorporation

1-12368
  
75-2543540
(Commission File Number)
  
(IRS Employer Identification Number)

1900 Southeast Loop 820, Fort Worth, Texas
  
76140
(Address of Principal Executive Offices)
  
(Zip Code)

(817) 872-3200
(Registrant's Telephone Number, Including Area Code)

 
(Former Name or Former Address, if Changed Since Last Report)

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):

☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock, par value $0.0024
TLF
Nasdaq

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

On November 12, 2024, Tandy Leather Factory, Inc. (the “Company”) issued a press release (the “Press Release”) and filed its Quartterly Report on Form 10-Q announcing its financial results for the third quarter of fiscal year 2024.  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.

(d) Exhibits

No.
Exhibit
Press Release dated November 12, 2024

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, 2023 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.
 
 
TANDY LEATHER FACTORY, INC.
     
Date:  November 12, 2024
 By:
 /s/ Janet Carr
   
Janet Carr, Chief Executive Officer


Exhibit 99.1

FOR IMMEDIATE RELEASE
November 12, 2024

Tandy Leather Factory Reports Third Quarter 2024 Results

FORT WORTH, TEXAS – November 12, 2024 (GLOBE NEWSWIRE) – Tandy Leather Factory, Inc. (Nasdaq: TLF) today announced the Company’s financial results for the third fiscal quarter of 2024.

Highlights from Third Quarter 2024:


 •
Revenues were $17.4 million, down 1.1% from 2023

•
Operating loss of $0.3 million

•
Net loss of $0.1 million, down from net income of $0.6 million in 2023

•
Gross margins of 57.8%, down from 62.4% in 2023

•
Operating expenses $10.3 million, up 2.3% from 2023

•
Adjusted EBITDA* of $0.2 million

•
Ended quarter with $10.1 million of cash and cash equivalents

Tandy Leather Factory’s third quarter sales were $17.4 million in 2024, down from $17.5 million in 2023.  Third quarter 2024 gross profit was $10.0 million, down from $10.9 million in 2023.  Third quarter saw an operating loss of $0.3 million, down from operating income of $0.9 million in 2023.  As of September 30, 2024, the Company held $10.1 million of cash and cash equivalents, up from $8.6 million a year earlier.  The Company held inventory of $38.1 million, up from $38.0 million as of December 31, 2023.  The Company had a basic and diluted net loss in the quarter of ($0.02) per share, versus income of $0.08 in the prior year.
 
Janet Carr, Chief Executive Officer of the Company, said, “Sales in the third quarter were consistent with the trend we saw in Q2, down about 1%, and although our September sale was strong, our customers are still spending less on discretionary items and our traffic is down.  The biggest impact to our overall financial performance compared to last year is the difference in gross margin rate.  Last year’s rate was driven by accounting adjustments; this year was in line with our projection, but also reflected increased promotional activity as we respond to weaker consumer demand.  The 2.3% increase in operating expenses was driven primarily by inflationary pressures across all expense categories, especially employment costs.  Importantly, cash remains strong, up from this time last year even with a significant increase in capital expenditures compared to last year for store relocations, necessary upgrades of store computer equipment, and a new roof on our headquarters facility.”
 
Investors are encouraged to send their questions to the Company’s investor relations hotline at [email protected].
 
*  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):

   
Three months ended
September 30, 2024
  
Net income
  
$ 
(0.1
)
Add back:
        
Depreciation and amortization
    
0.3
  
Interest income
    
(0.1
)
Income tax provision
    
(0.1
)
Stock-based compensation
    
0.2
  
Adjusted EBITDA
  
$
0.2
  

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 99 North American stores (including two temporarily closed for relocation as of September 30, 2024) 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 [email protected]
 
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.