8-K
Tandy Leather Factory Inc (TLF)
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:) | August 14, 2023 |
|---|
| 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 False
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 August 14, 2023, Tandy Leather Factory, Inc. (the “Company”) issued a press release (the “Press Release”) and filed its Quarterly Report on Form 10-Q announcing its financial results for the second fiscal quarter of 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. |
|---|
(d) Exhibits
| No. | Exhibit |
|---|---|
| 99.1 | Press Release dated August 14, 2023 |
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.
| TANDY LEATHER FACTORY, INC. | ||
|---|---|---|
| Date: August 14, 2023 | By: | /s/ Janet Carr |
| Janet Carr, Chief Executive Officer |
Exhibit 99.1
FOR IMMEDIATE RELEASE
August 14, 2023
Tandy Leather Factory Reports Second Quarter 2023 Results
FORT WORTH, TEXAS – August 14, 2023 (GLOBE NEWSWIRE) – Tandy Leather Factory, Inc. (Nasdaq: TLF) today announced the Company’s financial results for the second fiscal quarter 2023, ended June 30, 2023.
Second Quarter Highlights:
| • | Revenues were $17.5 million, down 5% from 2022 |
|---|---|
| • | Generated operating income of $0.8 million |
| --- | --- |
| • | Net income of $0.5 million |
| --- | --- |
| • | Gross margins of 62.5% |
| --- | --- |
| • | Adjusted EBITDA* of $1.3 million |
| --- | --- |
| • | Ended quarter with $10.0 million of cash and cash equivalents |
| --- | --- |
Tandy Leather Factory’s second quarter sales were $17.5 million in 2023, down from $18.4 million in 2022. First quarter 2023 gross profit was $10.9 million, up from $10.5 million in 2022. As of March 31, 2023, the Company held $10.0 million of cash and cash equivalents, up from $8.0 million at year end. The Company held inventory of $37.5 million, down from $38.2 million as of December 31, 2022. The Company had net basic and diluted net income in the quarter of $0.06 per diluted share, versus a loss of $0.7 in the prior year. Additional details regarding the Company’s second quarter 2023 results can be found in its Quarterly Report on Form 10-Q, filed with the SEC on August 14, 2023.
Janet Carr, Chief Executive Officer of the Company, said, “In the second quarter we continued to pursue our strategies to increase operating income and cash flow offsetting the ongoing weakening consumer demand. Despite the expected decline in total sales, we were able to generate $0.8 in operating income, versus a quarterly loss in 2022, and a $2 million increase in cash year to date. We have continued to successfully manage operating expenses, notably by putting a microscope on store staffing to maximize efficiency of operating and employee hours. We were also pleased with excellent gross margins in the quarter, although some of those were attributable to non-recurring adjustments made in the quarter. We believe we are well positioned to further leverage these efficiencies for more profitability when sales begin to rebound.
“We are also very happy to announce the opening in July of our first store in New York City. Located on Decatur Street in up-and-coming Ridgewood, Queens, this flagship will serve as a prototype for a new category of Tandy retail stores offering expanded makers’ spaces and full product assortments,” Ms. Carr added.
The Company will host an investor presentation online (via Zoom) and by phone on August 16, 2023, 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 Q2 Investor Call
Time: Aug 16, 2023, 9:00 AM Central Time (US and Canada)
Join Zoom Meeting
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Meeting ID: 837 0060 6204
Passcode: 643059
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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):
| Three months ended<br><br> <br>June 30, 2023 | ||
|---|---|---|
| Net income | $ | 531 |
| Add back: | ||
| Depreciation and amortization | 291 | |
| Interest expense | - | |
| Income tax provision | 261 | |
| Stock-based compensation | 219 | |
| Adjusted EBITDA | $ | 1,302 |
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 103 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.