FORT WORTH, Texas, Feb. 21 /PRNewswire-FirstCall/ -- The Leather Factory, Inc. (Amex: TLF) today reported results for the year and fourth quarter ended December 31, 2001. Sales for the year were up 24% to $37.3 million over 2000 sales of $30.1 million. Annual sales attributable to the Tandy Leather acquisition, completed late in 2000, were $6.6 million. Overall, the company posted net income of $2.0 million or $0.20 per share compared to net income of $1.5 million or $0.16 per share in 2000. Diluted earnings per share for 2001 were $0.19 versus $0.15 in 2000.
Fourth quarter sales increased 21% to $9.3 million compared to $7.7 million for the last quarter of 2000. Sales by the new Tandy Leather subsidiary contributed $1.0 million of the increase. Gross profit margins continued to increase, and in part due to this improvement, the company reported net income of $491,000 for this quarter or $0.05 per share, up 40% over net income of $349,000 or $0.04 per share a year ago. Diluted earnings per share in the fourth quarter were $0.04 compared to $0.03 in the last quarter of 2000.
Wray Thompson, Chairman and Chief Executive Officer, commented, "We are pleased with the results for 2001. Both sales and profits increased despite the less than favorable economy. We have a good profit trend with eleven consecutive quarters of higher earnings over the same quarter the previous year. Also, our Tandy Leather acquisition continues to look like a good investment."
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 30 sales and 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".
Contact:
Wray Thompson, The Leather Factory, Inc. (817) 496-4414
Shannon L. Greene, The Leather Factory, Inc. sgreene@leatherfactory.com
Mark Tyler, T.T. Communications, Inc. (845) 368-4377
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. In addition, investors should be aware that there are business risks associated with opening a new line of retail stores. These risks include the possibility that stores will not be economically successful or that economic conditions will impede their profitability.
CONSOLIDATED STATEMENTS OF INCOME
FOR THE YEARS ENDED DECEMBER 31, 2001 AND 2000
2001 2000
NET SALES $37,279,262 $30,095,264
COST OF SALES 17,934,935 15,147,547
Gross Profit 19,344,327 14,947,717
OPERATING EXPENSES 15,442,359 11,702,633
INCOME FROM OPERATIONS 3,901,968 3,245,084
OTHER (INCOME) EXPENSE:
Interest expense 458,558 617,400
Other, net 74,924 36,379
Total other (income) expense 533,482 653,779
INCOME BEFORE INCOME TAXES 3,368,486 2,591,305
PROVISION FOR INCOME TAXES 1,362,053 1,049,985
NET INCOME $2,006,433 $1,541,320
EARNINGS (LOSS) PER COMMON SHARE $0.20 $0.16
EARNINGS (LOSS) PER COMMON
SHARE--Assuming Dilution $0.19 $0.15
"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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