Tandy Leather Factory Reports Fourth Quarter and Full Year 2022 Results

About this update from Tandy Leather Factory, Inc.

[{"type":"text","content":"FORT WORTH, Texas, April 03, 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: Revenues were $80.3 million, down 3% from 2021Operating income of $1.4 millionNet income of $1.2 millionGross margins of 57.9%Adjusted EBITDA* of $4.0 millionRepurchased over 360,000 shares of common stock for a total of $1.8 millionEnded year with $8.0 million of cash and cash equivalents 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 ...

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