Tandy Leather Factory, Inc. · NASDAQ:TLF
Tandy Leather Factory — Investor Presentation (June 2022)
21 slides from Tandy Leather Factory's investor presentation, Jun 7, 2022
Slide 1: Management Presentation 2022
MANAGEMENT PRESENTATION 2022
Slide 2: Forward-Looking Statements
2 Today’s presentation will include statements, other than historical results, that constitute forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, each as amended. These statements reflect our expectations or estimates based on the inf
Slide 3: Tandy Highlights
3 Since 1919, Tandy Leather has been the leading supplier of quality leather, machines, tools, kits and instructional resources for generations of hobbyists and trade craftspeople making a living selling leatherwork. Tandy Highlights LARGE & GROWING MARKET MARKET LEADER MULTI-CHANNEL DISTRIBUTION CA
Slide 4: Crafting is a large and growing market
Crafting is a large and growing market. GLOBAL CRAFT MARKET LEATHERCRAFTING MARKET MARKET OPPORTUNITY $40B 4 $500MM 1% of global crafting market 11% of US adult population leathercrafts Tandy is capturing about 17% of US market share Significant opportunity to grow share CAGR of 8% over next 5 years
Slide 5: The time for leathercrafting is right
5 The time for leathercrafting is right… LEATHERCRAFTING HITS BULLSEYE OF CRAFTING FOR MANY REASONS @damonmarkmakeit @whiskeyboundleather @teotanartistry BROAD APPEAL Both men and women leathercraft at similar levels Multi-generational –Boomers, Gen X, Millennials, Gen Z, and parents crafting with k
Slide 6: Tandy: supplying the craft and trade of leatherworking
6 Tandy: supplying the craft and trade of leatherworking. CUSTOMERS Making leather goods transcends gender and age. Tandy appeals to both hobbyists and trade professionals. Growth in younger 18-35 age groups LEATHER MACHINES HAND TOOLS HARDWARE KITS & GUIDES KEY PRODUCTS Tandy supplies leatherworker
Slide 7: Our Mission
7 OUR MISSION To build on our legacy of inspiring the timeless art and trade of leatherworking. @dalegeorgebooher
Slide 8: Tandy is uniquely positioned to grow share and the category
8 Tandy is uniquely positioned to grow share and the category. STRONG BRAND EQUITY Heritage brand with 100+ years in leathercraft. Legacy in craft has built strong brand trust and pride. Leathercrafters have deep rooted love for Tandy. DISTINCT COMPETITIVE ADVANTAGE Tandy has 105 retail store locati
Slide 9: Investing in brand transformation
9 Investing in brand transformation. IMPROVE CONSUMER PROPOSITION REBUILD FOUNDATION POSITION FOR LONG-TERM GROWTH Broader product assortment Better quality and consistency New everyday value pricing Updated branding – more professional look and feel Engaging marketing - better storytelling and pers
Slide 10: Financial Snapshot – 2021
10 Financial Snapshot – 2021 2021 SALES GROSS MARGIN PROFIT BALANCE SHEET SHARE BUY-BACKS $82.7MM +29% vs 2020 +10% vs 2019 56.9% $2.3MM operating income ($3.6 MM adjusting for restatement-related expenses)(1) $5.4MM adjusted EBITDA (2) $10.2MM cash $38.1MM inventory $0.4MM debt 713k shares 7.8% of
Slide 11: Financial Snapshot – 2022
11 Financial Snapshot – 2022 Q1 2022 SALES GROSS MARGIN PROFIT BALANCE SHEET SHARE BUY-BACKS* $20.5MM -4% vs 2021 58.2% $0.8MM operating income $1.6MM adjusted EBITDA(2) $10.3MM cash $37.8MM inventory $0.4MM debt 360k shares 4.2% of total shares $5.00 average price per share *April, 2022
Slide 12: Sales 2017-2021
12 Sales 2017-2021 NUMBER OF STORES RETAIL ECOMMERCE COMMERCIAL 74% 19% 7% 68% 26% 6% 87% 9% 3% 2021 sales are flat to 2017, but with 13 fewer stores, store sales productivity has increased 13%. Ecommerce grew 140% in 2020 over 2019 due to COVID, but as store sales rebounded in 2021, much of those g
Slide 13: Gross Profit 2017-2021
13 Gross Profit 2017-2021 Since our strategic shift to EDLP pricing in 2019, we gave up 300-400 bps in gross margin rate, or about $3MM in gross profit dollars in 2021 vs 2018 or 2017 on similar levels of sales.
Slide 14: Profitability 2017-2021
14 Profitability 2017-2021 Profitability has been affected by the restatement and the pandemic in 2019 and 2020. The difference in operating income in 2021 vs 2017-18 after adjusting for restatement-related expenses is due to decline in margin rate associated with our competitive pricing strategy.
Slide 15: Inventory & Cash From Operations 2017-2021
15 Inventory & Cash From Operations 2017-2021
Slide 16: Shares Outstanding 2017-2021
16 Shares Outstanding 2017-2021 We have taken advantage of opportunities to buy shares in transactions with individual shareholders to reduce our share count by over 1MM shares over the last 5 years.
Slide 17: Roadmap to $100MM+ in sales and $15MM operating income
17 We have a roadmap to $100MM+ in sales and $15MM in operating income – and we have a plan to get there. Roadmap to $100MM+ CORE BUSINESS FOCUS ON TEACHING PILOT NEW FORMATS GROW COMMERCIAL @projectfree2fly PRODUCT IMPROVEMENTS @legacybrandleather OPTIMIZE RETAIL FLEET @powderriverleather NEW OPPOR
Slide 18: Questions & Discussion
18 Questions & Discussion
Slide 19: Non-GAAP Reconciliation (1)
19 (1)Non-GAAP Reconciliation
Slide 20: Non-GAAP Reconciliation (2)
20 (2)Non-GAAP Reconciliation @duckandchick
Slide 21: Non-GAAP Reconciliation
é = = ‘Tandy Leather Factory, Ine GBYNon-GAAP Reconciliation Tandy Leather Factory, Inc. Reconciliation of Net cash provided by (used in) operating activities to Adjusted net cash provided by (used in) operating activities 2024 2020 2019 2018 2017 Net cash provided by (used in) operating activities,
Tandy Leather Factory — Investor Presentation (June 2022) on 6ix