FORT WORTH, Texas, September 03, 2021 (GLOBE NEWSWIRE) – Tandy Leather Factory, Inc. (pink: TLFA) today announced that it has filed with the Securities and Exchange Commission the company’s 2020 Annual Report on Form 10- K and Quarterly Reports for the first, second and third quarters of 2020. The Company continues to work diligently to complete its quarterly reports for the first and second quarters of 2021 as soon as possible.
The Company’s annual sales were $ 64.1 million in 2020, down from $ 74.9 million in 2019. Operating expenses fell to $ 41.3 million from $ 43. $ 6 million in 2019. The net loss was $ 4.9 million in 2020 compared to a net loss of $ 1.9 million in 2019 and included a cash impairment charge of $ 1.1 million in 2020 and $ 1.0 million in 2019. As at December 31, 2020, the Company held $ 10.3 million in cash and cash equivalents, compared to $ 15.9 million at the end of 2019.
Janet Carr, Chief Executive Officer of the Company, said: “After filing our 2017-18 restated and 2019 financial reports in June, we are pleased to do the same for 2020, marking another important step in being fully up to date. in our public finances. report. “
Ms. Carr continued, “The COVID-19 crisis and the closure of all of our stores, along with the costs of our financial reprocessing, had a significant negative impact on our business last year. But there are aspects of our results that we think are very positive and deserve to be explained. First, all of our stores were temporarily closed for most of the second quarter and some until the third quarter, with nine stores permanently closed during the year. Despite this, our sales were down $ 10.8 million or 14.5% from 2019, with strong web and commercial sales offsetting store closings. In addition, when we reopened our retail stores, we saw a strong rebound in sales relative to pent-up demand.
“Second, we were able to reduce operating expenses by over $ 2.2 million. This reflects savings of $ 4.6 million from the layoff of nearly 70% of our workforce during temporary store closures and other operating expense savings across the company, mainly offset by an increase of $ 2.4 million in non-current costs related to our financial restatement and the transition of the CFO.
“Third, we used cash in 2020 to invest in inventory, especially in key leather categories that were out of stock in 2019 and caused missed sales. As the costs of products, labor, inputs, freight and shipping are all expected to increase due to the global pandemic, we have taken the buying opportunities to build a key inventory at 2019 prices. With the feedback from consumers, we are well positioned relative to our competitors to meet their needs.
“Finally, as 2020 seems to be in the distant past, we want to remember the many sacrifices our employees have made to keep Tandy strong during this difficult time. From time off and pay cuts to long, long hours of work in fear and uncertainty, the courage and heart of our team is what Tandy has endured for over 100 years.
The Company continues to work towards the 2021 quarterly filings, which it expects to complete soon. Once the Company is up-to-date in its financial reports, it intends to apply for its re-listing on the Nasdaq Stock Market.
Tandy Leather Factory, Inc., (http://www.tandyleather.com), headquartered in Fort Worth, Texas, is a specialty retailer of a wide range of products, including leather, work tools, leather, belt buckles and ornaments, leather dyes and trims, saddle and tack hardware and DIY kits. The Company distributes its products through its 105 North American stores located in 40 US states and six Canadian provinces, and one store located in Spain. Its common stock trades over-the-counter in “pink leaves” with the symbol “TLFA”. To be on the Tandy Leather Factory email list, visit: http://www.b2i.us/irpass.asp?BzID=1625&to=ea&s=0.
Contact: Janet Carr, Tandy Leather Factory, Inc. (817) 872-3200 or [email protected]
This press release may contain statements regarding future events, events, circumstances, activities, performance, results and results which are considered “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Actual results and events may differ from these. projected due to certain risks and uncertainties. These risks and uncertainties include, but are not limited to: changes in general economic conditions, negative trends in general levels of consumer spending, failure to realize the expected benefits of opening retail stores; the availability of hides and skins and the resulting 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.
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