EX-99.1 2 brhc10041005_ex99-1.htm EXHIBIT 99.1
Exhibit 99.1
 Q2 2022  MANAGEMENT DISCUSSION OF FINANCIAL RESULTS 
 

 2  Today’s presentation will include statements, other than historical results, that constitute forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, each as amended.  These statements reflect our expectations or estimates based on the information we have today but are not guarantees or predictions of future performance.  They involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results to differ materially from the statements contained in this presentation.  You are cautioned not to put undue reliance on these forward-looking statements.  The Company assumes no obligation to update or otherwise revise these forward-looking statements, except as required by law.  FORWARD-LOOKING STATEMENTS 
 

 3  Financial Snapshot – 2022 Q2  2022  SALES  GROSS MARGIN  PROFIT  BALANCE SHEET  SHARE BUY-BACKS  $18.4MM  (0.8%) vs 2021  57.0%  ($0.7MM) operating loss  ($0.1MM) adjusted EBITDA(1)  $5.6MM cash  $40.1MM inventory  no debt  360k shares  4.2% of total shares  $5.00 average price per share  Year-to-date  $38.9MM  (2.6%) vs 2021  57.7%  $0.1MM operating income  $1.5MM adjusted EBITDA(1) 
 

 4  Sales  Q2 2022  2022 Q2 sales were down less than 1% versus Q2 of 2021, an improvement in trend over the first quarter. However, the retail environment remains challenging.  (0.8%)  (2.6%)  RETAIL  ECOMMERCE  COMMERCIAL  73%  19%  8%  73%  20%  7% 
 

 5  Gross Profit  Q2 2022  Q2 gross profit came in 6.9% below Q2 of 2021 due to slightly lower sales and significantly lower margin rate.   (6.9%)  (4.4%) 
 

 6  Profitability  Q2 2022  Profitability in 2022 has been affected by soft sales, gross margin impacts, and higher operating costs associated mostly with the tight labor market. 
 

 7  Since 1919, Tandy Leather has been the leading supplier of quality leather, machines, tools, kits and instructional resources for generations of hobbyists and trade craftspeople making a living selling leatherwork.  Tandy Highlights  LARGE & GROWING MARKET  MARKET LEADER  MULTI-CHANNEL DISTRIBUTION  CAPABLE TEAM  STRONG FINANCIAL POSITION  $40B global craft market  $500MM leathercrafting market  Growing at 8%  17% share in fragmented market  Heritage brand  104* Retail Stores  Global Ecommerce  Commercial Division  Transformed business  Completed restatement  Managed through COVID  Long-term plan to $100MM+/$15MM  $5.6MM net cash  $40MM inventory  $13-15MM real estate  No debt  *July 2022 
 

 8  We have a roadmap to $100MM+ in sales and $15MM in operating income – and we have a plan to get there.  Future Roadmap  CORE BUSINESS  FOCUS ON TEACHING  PILOT NEW FORMATS  GROW COMMERCIAL  @projectfree2fly  PRODUCT IMPROVEMENTS  @legacybrandleather  OPTIMIZE RETAIL FLEET  @powderriverleather  NEW OPPORTUNITIES  YOUTH CRAFTING  ART THERAPY  CHAIN WHOLESALE  INTERNATIONAL  4 KEY GROWTH INITATIVES  Tandy is positioned to bring new customers into the craft and expand the leathercrafting category. 
 

 9  Key Principles  Disciplined Capital Allocation  Conservative Balance Sheet  Focus on Long-Term Shareholder Value  Financial  Focus on Consumer Proposition  Build Durable Business Foundation  Remain Nimble  Operating 
 

 10  Questions & Discussion 
 

 11  (1)Non-GAAP Reconciliation  @duckandchick