8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

Form 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of report (Date of earliest event reported:) August 14, 2023

Tandy Leather Factory, Inc.

(Exact Name of Registrant as Specified in Its Charter)

Delaware

(State or Other Jurisdiction of Incorporation

1-12368	75-2543540
(Commission File Number)	(IRS Employer Identification Number)

1900 Southeast Loop 820, Fort Worth, Texas	76140
(Address of Principal Executive Offices)	(Zip Code)

(817) 872-3200

(Registrant's Telephone Number, Including Area Code)

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.0024	TLF	Nasdaq

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  False

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Item 2.02. Results of Operations and Financial Condition

On August 14, 2023, Tandy Leather Factory, Inc. (the “Company”) issued a press release (the “Press Release”) and filed its Quarterly Report on Form 10-Q announcing its financial results for the second fiscal quarter of 2023.  A copy of the Press Release is attached as Exhibit 99.1.

The information furnished pursuant to Item 2.02 of this report and the exhibits attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 as amended (the “Exchange Act”, or otherwise subject to liabilities under that section, nor shall they be deemed incorporated by reference in any filing of the Company with the Securities and Exchange Commission under the Exchange Act or the Securities Act of 1933, as amended (the “Securities Act”), whether made before or after the date hereof, except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

No.	Exhibit
99.1	Press Release dated August 14, 2023

Forward Looking Statements

Certain statements contained in this report and other materials the Company files with the SEC, as well as information included in oral statements or other written statements made or to be made by the Company, other than statements of historical fact, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally are accompanied by words such as “may,” “will,” “could,” “should,” “anticipate,” “believe,” “budgeted,” “expect,” “intend,” “plan,” “project,” “potential,” “estimate,” “continue,” “outlook,” “forecast” or “future,” variations thereof or other similar statements. Please refer to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2022 for additional information concerning these and other uncertainties that could negatively impact the Company. The Company assumes no obligation to update or otherwise revise its forward-looking statements, except as required by law.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	TANDY LEATHER FACTORY, INC.
Date:  August 14, 2023	By:	/s/ Janet Carr
		Janet Carr, Chief Executive Officer

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

August 14, 2023

Tandy Leather Factory Reports Second Quarter 2023 Results

FORT WORTH, TEXAS – August 14, 2023 (GLOBE NEWSWIRE) – Tandy Leather Factory, Inc. (Nasdaq: TLF) today announced the Company’s financial results for the second fiscal quarter 2023, ended June 30, 2023.

Second Quarter Highlights:

• Revenues were $17.5 million, down 5% from 2022

• Generated operating income of $0.8 million

• Net income of $0.5 million

• Gross margins of 62.5%

• Adjusted EBITDA* of $1.3 million

• Ended quarter with $10.0 million of cash and cash equivalents

Tandy Leather Factory’s second quarter sales were $17.5 million in 2023, down from $18.4 million in 2022.  First quarter 2023 gross profit was $10.9 million, up from $10.5 million in 2022.  As of March 31, 2023, the Company held $10.0 million of cash and cash equivalents, up from $8.0 million at year end.  The Company held inventory of $37.5 million, down from $38.2 million as of December 31, 2022.  The Company had net basic and diluted net income in the quarter of $0.06 per diluted share, versus a loss of $0.7 in the prior year.  Additional details regarding the Company’s second quarter 2023 results can be found in its Quarterly Report on Form 10-Q, filed with the SEC on August 14, 2023.

Janet Carr, Chief Executive Officer of the Company, said, “In the second quarter we continued to pursue our strategies to increase operating income and cash flow offsetting the ongoing weakening consumer demand.  Despite the expected decline in total sales, we were able to generate $0.8 in operating income, versus a quarterly loss in 2022, and a $2 million increase in cash year to date.  We have continued to successfully manage operating expenses, notably by putting a microscope on store staffing to maximize efficiency of operating and employee hours.  We were also pleased with excellent gross margins in the quarter, although some of those were attributable to non-recurring adjustments made in the quarter.  We believe we are well positioned to further leverage these efficiencies for more profitability when sales begin to rebound.

“We are also very happy to announce the opening in July of our first store in New York City.  Located on Decatur Street in up-and-coming Ridgewood, Queens, this flagship will serve as a prototype for a new category of Tandy retail stores offering expanded makers’ spaces and full product assortments,” Ms. Carr added.

The Company will host an investor presentation online (via Zoom) and by phone on August 16, 2023, at 9:00 am CDT to discuss the Company’s first quarter operating results.  Please note that those wishing to ask questions during the presentation will need to have an audio connection (by device or phone dial-in) in order to do so; questions submitted by text or chat will not be read aloud during the presentation but may be answered privately afterwards.  Investors and other interested participants may attend the presentation on the web or by phone as follows:

Topic: Tandy Leather 2023 Q2 Investor Call

Time: Aug 16, 2023, 9:00 AM Central Time (US and Canada)

Join Zoom Meeting

https://us02web.zoom.us/j/83700606204?pwd=VUlvZGZjeEVGUUdJMkZ2SFZsTGlYdz09

Meeting ID: 837 0060 6204

Passcode: 643059

One tap mobile

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Meeting ID: 837 0060 6204

Passcode: 643059

Find your local number: https://us02web.zoom.us/u/kHxIYriLN

*  Adjusted EBITDA is a non-GAAP financial measure that the Company believes helps investors to compare its operating performance to that of other companies.  The following is a reconciliation of the Company’s net income to Adjusted EBITDA (in millions):

	Three months ended June 30, 2023
Net income	$	531
Add back:
Depreciation and amortization		291
Interest expense		-
Income tax provision		261
Stock-based compensation		219
Adjusted EBITDA	$	1,302

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 103 North American stores located in 40 US states and six Canadian provinces, and one store located in Spain.  Its common stock trades on the Nasdaq Capital Market under the symbol “TLF”.  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.

Contact:  Janet Carr, Tandy Leather Factory, Inc.  (817) 872-3200 or janet.carr@tandyleather.com

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.

XML

Document and Entity Information	Aug. 14, 2023
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Aug. 14, 2023
Entity File Number	1-12368
Entity Registrant Name	Tandy Leather Factory, Inc.
Entity Central Index Key	0000909724
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	75-2543540
Entity Address, Address Line One	1900 Southeast Loop 820
Entity Address, City or Town	Fort Worth
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	76140
City Area Code	817
Local Phone Number	872-3200
Title of 12(b) Security	Common Stock, par value $0.0024
Trading Symbol	TLF
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false