FORT WORTH, Texas, Sept. 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 on completing as soon as possible its quarterly reports for the first and second quarters of 2021.
The Company’s full year 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. Net loss was $4.9 million in 2020 compared to net loss of $1.9 million in 2019 and included non-cash impairment expense of $1.1 million in 2020 and $1.0 million in 2019. As of December 31, 2020, the Company held $10.3 million of cash and cash equivalents, versus $15.9 million at the end of 2019.
Janet Carr, Chief Executive Officer of the Company, said, “After filing our 2017-2018 restated and 2019 financial reports in June, we are happy to now do the same for 2020, marking another significant milestone toward being fully current in our public financial reporting.”
Ms. Carr continued, “The COVID-19 crisis and shutdown of all of our stores, together with the costs of our financial restatement, had significant negative impact on our business last year. But there are aspects of our results that we feel were very positive and worth explaining. First, all of our stores were temporarily closed for most of the second quarter and some into 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 closures. Furthermore, when our retail stores did reopen, we saw a strong rebound in sales from pent-up demand.
“Second, we were able to reduce operating expenses by more than $2.2 million. This reflected $4.6 million in savings from furloughing nearly 70% of our workforce during temporary store closures and other operating expense savings across the company, offset mostly by a $2.4 million increase in the non-routine costs related to our financial restatement and CFO transition.
“Third, we used cash during 2020 to invest in inventory, especially in key leather categories that were out of stock in 2019 and caused missed sales. With product costs, labor, inputs, freight and shipping all projected to rise as a result of the global pandemic, we took advantage of buying opportunities to build key inventory at 2019 prices. As consumers have returned, we are well-positioned relative to our competitors to serve their needs.
“Finally, while 2020 seems to be in the distant past, we want to remember the many sacrifices that our employees made to keep Tandy strong during this difficult time. From furloughs to pay cuts to long, long hours working through fear and uncertainty, the grit and heart of our team are why Tandy has endured for over 100 years.”
The Company continues to work toward 2021 quarterly filings, which it expects to complete soon. Once the Company is current in its financial reporting, it intends to apply for relisting on the Nasdaq Stock Market.
Tandy Leather Factory, Inc., (http://www.tandyleather.com), headquartered in Fort Worth, Texas, is a specialty retailer of a broad product line, including leather, leatherworking tools, buckles and adornments for belts, leather dyes and finishes, saddle and tack hardware, and do-it-yourself 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 “pink sheets” with the symbol “TLFA”. To be included on Tandy Leather Factory’s email distribution list, go to: http://www.b2i.us/irpass.asp?BzID=1625&to=ea&s=0.
This news release may contain statements regarding future events, occurrences, circumstances, activities, performance, outcomes and results that are considered “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Actual results and events may differ from those projected as a result of certain risks and uncertainties. These risks and uncertainties include but are not limited to: changes in general economic conditions, negative trends in general consumer-spending levels, failure to realize the anticipated benefits of opening retail stores; availability of hides and leathers and resultant 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.