Tandy Leather Factory, Inc. · NASDAQ:TLF
Tandy Leather Factory — Q3 2022 Earnings Presentation
11 slides from Tandy Leather Factory's earnings presentation, Nov 15, 2022
Slide 1: Q3 2022 Management Discussion of Financial Results
{ ° a3 2022 ES 1919 and MANAGEMENT DISCUSSION OF LEATHER FINANCIAL RESULTS
Slide 2: Forward-Looking Statements
NT DISCUSSION 3 2022 MANAGEM ‘Tandy Leather Factory, Ine. FORWARD-LOOKING STATEMENTS clude statemets, other than historical sus, that constitute foreard-okng statements wth the meaning ofthe Secures ct of 133 and the Secures Exchange At of 1934, cach as amened. These statements fect our expectations
Slide 3: Financial Snapshot — 2022 Q3
= = & ‘Tandy Leather Factory, Ine 2022 Financial Snapshot — 2022 Q3 SALES GROSS. MARGIN PROFIT BALANCE SHEET $19.1MM 60.8% $1.0MM operating $3.1MM ash (1.2%) vs 2021 none $423NM inventory $1.5MM adjusted EBITDA no debt Year-to-date $58.0MM 58.7% $1.1MM operating (2.2%) vs 2021 Tome $3.0MM adjusted E
Slide 4: Sales
a3 2022 wawactent oiscussion BAM ‘Tandy Leather Factory, Ine Q@ 2022 Sales 2022 (3 sales were down 1.2% versus Q3 of 2021, a sight declnein trend over Q2. Ecommerce saw strong growth ovr last year. (1.2%) B27 Q2 and YTD SALES $ MILLION (2.2%) 2021 @yID 2022 59.2 BD 2001 COMMERCIAL ECOMMERCE RETAIL S
Slide 5: Gross Profit
aa 2022 wawactmen oiscussion BM ‘Tandy Leather Factory, Ine Q3 2022 Gross Profit QB gross proft came in 4.6% above (3 of 2021 due to higher margin rate, Year-to-date gross profit is down 1.5% to last year. GROSS PROFIT $ MILLION 60.8% 11.6 Il = L] Q3 2022 Q3 2021 34.0 (1.5%) Q3 YTD 2022 34.6 Q3 YTD
Slide 6: Profitability
Q3 2022 Profitability While operating income of $1MM in Q3 was better than QB of last year, weaker-than-last-year performance in the first half of 2022 erodes the YTD compare. OPERATING INCOME (LOSS) ADJUSTED EBITDA (!) é = = & $ MILLION $ MILLION 5% 8% 2% 0% 4 & 0.0 08 | i a 1 202 @2021 W222 = By 2
Slide 7: Key Principles
Key Principles Financial |. Disciplined Capital Allocation 2. Conservative Balance Sheet 3. Focus on Long-Term Shareholder Value Operating I. Focus on Consumer Proposition 2. Build Durable Business Foundation 3. Remain Nimble
Slide 8: Focus for 2023
=| 3 2022 MANAGEMENT DISCUSSION ‘Tandy Leather Factory, Ine US. Inflation Rate Focus for 2023 Economic headwinds growing stronger Focus on growing profits and cash, even in an environment of declining demand ’ Pause investments in driving sales growth... ...-But continue incremental improvements in
Slide 9: The opportunity for growth remains, but our near-term focus will be on sustainability
The opportunity for growth remains, é : but our near-term focus will be on 8 Future Roadmap ere eae ener oltre 5 sustainability = : OPTIMIZE RETAIL FOCUS ON PILOT NEW PRODUCT Grow 8 FLEET TEACHING FORMATS IMPROVEMENTS CONMERCIAL 3 —-._ ‘ = — 3 F s . YOUTH CRAFTING ART THERAPY CHAIN WHOLESALE INTERNA
Slide 10: Questions & Discussion
Slide 11: Non-GAAP Reconciliation
(Non-GAAP Reconciliation * Adjusted EBITDA is a non-GAAP financial measure that excludes depreciation and amortization, interest expense, income tax provision (benefit), non-routine items, and stock-based compensation expense (which does not require settlement in cash) in order to provide helpful in
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