FORT WORTH, Texas--(BUSINESS WIRE)--April 22, 2003--The Leather Factory, Inc. (AMEX:TLF) today reported results for the first quarter of 2003.
Net income for the quarter ended March 31, 2003 was $774,518 or $0.07 per share (diluted), compared to a net loss of $(3,249,526) or $(0.30) per share (diluted) for the quarter ended March 31, 2002. Net income for the first quarter of 2002 before the cumulative effect of the change in accounting principle was $759,305 or $0.07 per share (diluted). (See the attached Consolidated Statements of Operations.) The accounting change resulted from the write-down of goodwill in accordance with SFAS No. 142.
Net sales for the quarter ended March 31, 2003 were $10,560,085, up 3.5% over net sales of $10,203,951 in the first quarter of last year. Leather Factory operations accounted for the increase while Tandy Leather and Roberts, Cushman sales were virtually flat. Comparable store sales in the first quarter of 2003 (29 Leather Factory and 2 Tandy Leather stores) increased $509,000 or 6% over the first quarter of 2002. Also, sales were fueled by the addition of 18 new stores (1 Leather Factory and 17 Tandy Leather) during the last 12 months.
Wray Thompson, Chairman and Chief Executive Officer, commented, "We're pleased with the sales gains from our comparable stores. Despite an overall weak retail environment, a 6% gain in that category is solid. The severe winter storms in February hurt us some as several of our new Tandy Leather stores are located in the Northeast. Overall however, the Tandy Leather stores are producing good results as they tend to operate very efficiently and produce profits quickly."
The Leather Factory, Inc., (http://www.leatherfactory.com), headquartered in Fort Worth, Texas, is an international marketer and wholesale distributor of a broad product line including leather, leatherworking tools, buckles and adornments for belts, leather dyes and finishes, shoe repair supplies, saddle and tack hardware, and do-it-yourself kits, and is a manufacturer and distributor of fancy hat trims, leather lacing and kits. The Company distributes its products through sales/distribution units located throughout the U.S. and Canada and through its subsidiary, Tandy Leather Company, via retail stores and mail/telephone/website orders (http://www.tandyleather.com). Its common stock trades on the American Stock Exchange with the symbol "TLF."
This news release may contain forward-looking statements. All forward-looking statements made here or in other news releases issued by The Leather Factory, Inc. are based on current expectations as of the date of the release. These forward-looking statements involve risks and uncertainties that could cause the results of The Leather Factory, Inc. to differ materially from management's current expectations. Many of these risks and uncertainties are detailed from time to time in TLF's reports filed with the Securities and Exchange Commission, including its most recent annual report on Form 10-K and the most recent quarterly report on Form 10-Q. Investors are reminded that past performance may not be predictive of future results.
THE LEATHER FACTORY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 2003 AND 2002
Quarter ended March 31,
2003 2002
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NET SALES $10,560,085 $10,203,951
COST OF SALES 4,914,581 4,835,356
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Gross Profit 5,645,504 5,368,595
OPERATING EXPENSES 4,529,832 4,175,136
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INCOME FROM OPERATIONS 1,115,672 1,193,459
OTHER EXPENSE:
Interest expense 63,352 89,869
Other, net (30,818) 16,355
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Total other expense 32,534 106,224
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INCOME BEFORE INCOME TAXES AND CUMULATIVE
EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE 1,083,138 1,087,235
PROVISION FOR INCOME TAXES 308,620 327,930
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NET INCOME BEFORE CUMULATIVE EFFECT OF CHANGE
IN ACCOUNTING PRINCIPLE 774,518 759,305
CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING
PRINCIPLE, NET OF INCOME TAXES -- (4,008,831)
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NET INCOME (LOSS) $774,518 $(3,249,526)
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NET INCOME (LOSS) PER COMMON SHARE - BASIC:
INCOME BEFORE CUMULATIVE EFFECT OF CHANGE IN
ACCTG PRINCIPLE $0.08 $0.08
CUMULATIVE EFFECT OF CHANGE IN ACCTG
PRINCIPLE, NET OF TAX -- (0.40)
------------ ------------
NET INCOME (LOSS) PER COMMON SHARE $ 0.08 $ (0.32)
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NET INCOME (LOSS) PER COMMON SHARE - ASSUMING
DILUTION:
INCOME BEFORE CUMULATIVE EFFECT OF CHANGE IN
ACCTG PRINCIPLE $0.07 $0.07
CUMULATIVE EFFECT OF CHANGE IN ACCTG
PRINCIPLE, NET OF TAX -- (0.37)
------------ ------------
NET INCOME (LOSS) PER COMMON SHARE $ 0.07 $ (0.30)
============ ============
Weighted Average Number of Shares
Outstanding:
Basic 10,177,433 10,001,717
Diluted 10,791,259 10,731,713
CONTACT: The Leather Factory, Inc., Fort Worth Wray Thompson,
SOURCE: The Leather Factory, Inc.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Tandy Leather Factory, Inc.'s business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.
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