Tandy Leather Factory Reports Fourth Quarter and Full Year 2023 Results

FORT WORTH, Texas, March 22, 2024 (GLOBE NEWSWIRE) -- Tandy Leather Factory, Inc. (Nasdaq: TLF) today announced the Company’s financial results for the fourth fiscal quarter and full year 2023.

Highlights from 2023:

• Revenues were $76.2 million, down 5.1% from 2022
• Generated operating income of $4.4 million
• Net income of $3.8 million, up from $1.2 million in 2022
• Gross margins of 59.3%, up from 57.9% in 2022
• Operating expenses $40.8 million, down 9.7% from 2022
• Adjusted EBITDA* of $6.5 million
• Ended year with $12.2 million of cash and cash equivalents
  

The Company’s full year sales were $76.2 million in 2023, down from $80.3 million in 2022. Operating expenses decreased to $40.8 million from $45.1 million in 2022 and decreased as a percentage of sales to 53.5% from 56.2% in 2022. 2023 full year gross profit was $45.2 million, or 59.2%, vs $46.5 million, or 57.9%, in 2022. Net income was $3.8 million in 2023, compared to $1.2 million in 2022. Additional details regarding the Company’s 2023 results can be found in its Annual Report on Form 10-K, filed with the SEC on March 22, 2024.

Tandy Leather Factory’s fourth quarter sales were $20.8 million in 2023, down from $22.4 million in 2022. Fourth quarter 2023 gross profit was $11.5 million, down from $12.5 million in 2022. Fourth quarter operating income was $1.7 million, up from $0.3 million in 2022. As of December 31, 2023, the Company held $12.2 million of cash and cash equivalents, up from $8.0 million a year earlier. The Company held inventory of $38.0 million, down from $38.2 million as of December 31, 2022. The Company had basic and diluted net income in the quarter of $0.23 per share, versus $0.06 in the prior year.

Janet Carr, Chief Executive Officer of the Company, said, “In 2023, Tandy focused on growing profits and cash against the backdrop of an environment of weaker retail sales and continued high inflation. Our total sales did decline, by about 5% including 6 stores closed in 2022 and 2023. However, we grew our operating income by more than $3 million versus 2022 driven by disciplined management of operating expenses and some capitalizable costs like freight. Operating expenses declined by nearly 10% over 2022, as we established a new baseline cost structure. Our year-end cash also grew by $4.2 million to $12.2 million. For 2024, we will continue to manage costs while putting renewed focus on sales with selective new stores and continued improvement in the customer experience.”