Financial Reporting and Disclosures - Tandy Leather Factory, Inc. announced its financial results for the third quarter of fiscal year 2024 on November 12, 2024 [2] - The company filed its Quarterly Report on Form 10-Q along with a press release detailing the financial results [2] - The press release is attached as Exhibit 99.1 in the Form 8-K filing [4] Forward-Looking Statements and Risks - The company's forward-looking statements are subject to uncertainties and risks as outlined in its Annual Report on Form 10-K for the fiscal year ended December 31, 2023 [4] - The company assumes no obligation to update or revise its forward-looking statements except as required by law [4]

Core Insights - Tandy Leather Factory, Inc. reported a revenue of $17.4 million for Q3 2024, reflecting a 1.1% decrease from $17.5 million in Q3 2023 [1] - The company experienced an operating loss of $0.3 million, a decline from an operating income of $0.9 million in the same quarter last year [1] - Net loss for the quarter was $0.1 million, compared to a net income of $0.6 million in Q3 2023 [1] - Gross margins decreased to 57.8% from 62.4% in the previous year [1] - Operating expenses rose by 2.3% to $10.3 million, primarily due to inflationary pressures [2] Financial Performance - Adjusted EBITDA for Q3 2024 was reported at $0.2 million [1] - Cash and cash equivalents at the end of the quarter stood at $10.1 million, an increase from $8.6 million a year earlier [1] - Inventory levels were reported at $38.1 million, slightly up from $38.0 million as of December 31, 2023 [1] - Basic and diluted net loss per share was ($0.02), compared to income of $0.08 per share in the prior year [1] Management Commentary - The CEO noted that sales trends were consistent with Q2, with a slight decline of about 1% [2] - Increased promotional activity was a response to weaker consumer demand, impacting gross margin rates [2] - The rise in operating expenses was attributed to inflation, particularly in employment costs [2] - The company maintained strong cash reserves despite increased capital expenditures for store relocations and upgrades [2] Company Overview - Tandy Leather Factory, Inc. is a specialty retailer offering a wide range of leather products and tools [3] - The company operates 99 stores across North America and one store in Spain [3]

Financial Performance - Net sales for Q3 2024 were $17,351,000, a decrease of 1.1% from $17,542,000 in Q3 2023[9] - Gross profit for Q3 2024 was $10,022,000, down 8.4% from $10,938,000 in Q3 2023[9] - The company reported a net loss of $132,000 in Q3 2024, compared to a net income of $636,000 in Q3 2023[9] - For the nine months ended September 30, 2024, net income was $495,000, down from $1,831,000 in the same period of 2023[11] - Consolidated net sales for the quarter ended September 30, 2024, decreased by $0.2 million, or 1.1%, compared to the same period in 2023, attributed to temporary store closures and weak consumer demand[78] - Gross profit for the quarter decreased by $0.9 million, or 8.4%, with a gross margin percentage of 57.8%, down 460 basis points year-over-year[81] - Consolidated net sales for the nine months ended September 30, 2024, decreased by $1.5 million, or 2.7%, compared to the same period in 2023, attributed to temporary store closures and weak consumer demand[88] - Gross profit decreased by $2.7 million, or 8.1%, with gross margin percentage declining to 57.4% from 60.8% year over year[87] - Income from operations fell to $445,000, down 83.3% from $2.65 million in the same period last year[87] Operating Expenses - Operating expenses increased to $10,289,000 in Q3 2024, compared to $10,058,000 in Q3 2023, reflecting a rise of 2.3%[9] - Operating expenses for the quarter increased by $231,000, or 2.3%, compared to the same period in 2023[82] - Operating expenses for the quarter increased by $0.2 million or 2.3% compared to the prior year, with operating expenses as a percentage of sales rising to 59.3% from 57.3%[85] - Operating expenses include all selling, general and administrative costs, which are essential for maintaining operations[27] Cash and Liquidity - Cash and cash equivalents at the end of Q3 2024 were $10,055,000, compared to $8,623,000 at the end of Q3 2023, representing an increase of 16.6%[11] - As of September 30, 2024, the company had cash balances totaling $10.1 million[95] - Cash from operations generated $0.1 million for the nine months ended September 30, 2024, compared to $1.2 million in the same period in 2023[101] - The company has a credit facility of up to $5,000,000 with JPMorgan Chase Bank, with no funds borrowed as of the filing date, maintaining compliance with all covenants[55] - The company has a credit facility of up to $5 million with JPMorgan Chase Bank, with no funds borrowed as of the reporting date[98] - The company approved a new stock repurchase program allowing for the repurchase of up to $5 million of common stock until September 30, 2026[100] Inventory and Store Operations - The company operates 100 retail stores, with 90 in the U.S., nine in Canada, and one in Spain, as of September 30, 2024[18] - The company closed 5 stores and opened 2 new stores, resulting in a net decrease of 3 stores, with a total of 100 stores as of September 30, 2024[89] - As of September 30, 2024, total inventory on hand was $38,149,000, an increase from $37,993,000 on December 31, 2023, representing a 0.4% growth[34] Tax and Interest Income - The effective tax rate for the three months ended September 30, 2024, was 27.7%, compared to 24.0% for the same period in 2023, indicating an increase of 3.7 percentage points[56] - The effective tax rate for the nine months ended September 30, 2024, was 26.5%, compared to 28.8% for the same period in 2023[94] - Interest income for the nine months ended September 30, 2024, was $266,000, compared to no interest income in the same period of 2023[9] Stock-Based Compensation - The company reported stock-based compensation expenses of $180,000 for the three months ended September 30, 2024[14] - Stock-based compensation expense for the three months ended September 30, 2024, was $0.2 million, consistent with the same period in 2023[59] - The balance of non-vested restricted stock and RSU awards as of September 30, 2024, was 714,000 shares, with a weighted average price of $4.38[59] - As of September 30, 2024, there was unrecognized compensation cost related to non-vested, service-based RSU awards of $1.2 million, to be recognized over the next five years[62] - The company granted a total of 276,000 service-based RSUs to the CEO in October 2023, which will vest over the next three years[58] - The company’s stock-based compensation plan reserves up to 800,000 shares for restricted stock and RSU awards, with a minimum vesting period of four years[57] Other Financial Metrics - The company experienced a decrease in comprehensive income, reporting a loss of $98,000 in Q3 2024 compared to a gain of $451,000 in Q3 2023[9] - The company recognized $0.3 million in gift card revenue for the nine months ended September 30, 2024, compared to $0.4 million in 2023[24] - As of September 30, 2024, the gift card liability was $0.1 million, down from $0.3 million at the end of 2023[24] - Foreign currency translation adjustments for the nine months ended September 30, 2024, resulted in a net gain of $170,000[14] - Total adjustments to reconcile net income to net cash provided by operating activities were $(458,000) for the nine months ended September 30, 2024[11] - The company’s other international net sales were less than 2.0% of consolidated net sales for the three and nine months ended September 30, 2024[25] Asset Management - The company evaluates long-lived assets quarterly for impairment, with triggering events potentially including declines in operational performance or planned asset use changes[40] - The carrying values of financial instruments approximated their fair values as of September 30, 2024, with no transfers between fair value hierarchy levels during the reporting period[42] - The company’s inventory valuation includes provisions to reduce carrying amounts when costs exceed net realizable value, ensuring accurate financial reporting[29] - The weighted average amortization period for trademarks and copyrights is 15 years, with expected annual amortization expense of less than $0.01 million over the next five years[53] - Amortization expense related to other intangible assets was less than $0.01 million during each of the nine months ended September 30, 2024, and 2023, reflecting minimal impact on financials[53] - The allowance for expected credit losses for trade receivables was less than $0.1 million as of September 30, 2024, December 31, 2023, and January 1, 2023, indicating stable credit risk management[52]

Financial Results Announcement - Tandy Leather Factory, Inc. announced its financial results for Q2 2024 on August 7, 2024[3] - The company filed its Quarterly Report on Form 10-Q along with a press release detailing the results[3] - The financial results include key metrics that will be elaborated in the attached press release[3] Regulatory Compliance - The company is not classified as an emerging growth company under the Securities Act[3] - The report was signed by Janet Carr, Chief Executive Officer, confirming its authenticity[6] - The filing is made in compliance with the Securities Exchange Act of 1934[6] Forward-Looking Statements - Forward-looking statements are included in the report, indicating potential future performance and uncertainties[5] - The company is committed to updating its forward-looking statements as required by law[5] Risk and Uncertainties - The report emphasizes the importance of the Annual Report on Form 10-K for understanding risks and uncertainties[5] - The press release is attached as Exhibit 99.1, providing further insights into the financial performance[5]

FORT WORTH, Texas, Aug. 07, 2024 (GLOBE NEWSWIRE) -- Tandy Leather Factory, Inc. (Nasdaq: TLF) today announced the Company's financial results for the second fiscal quarter of 2024. Highlights from Second Quarter 2024: Revenues were $17.3 million, down 1.1% from 2023 Generated operating income of $63,000 Net income of $0.1 million, down from $0.5 million in 2023 Gross margins of 58.0%, down from 62.5% in 2023 Operating expenses $10.0 million, down 1.7% from 2023 Adjusted EBITDA* of $0.8 million Ended quarte ...

FORT WORTH, Texas, Aug. 07, 2024 (GLOBE NEWSWIRE) -- Tandy Leather Factory, Inc. (Nasdaq: TLF) today announced the Company's financial results for the second fiscal quarter of 2024. Highlights from Second Quarter 2024: Revenues were $17.3 million, down 1.1% from 2023 Generated operating income of $63,000 Net income of $0.1 million, down from $0.5 million in 2023 Gross margins of 58.0%, down from 62.5% in 2023 Operating expenses $10.0 million, down 1.7% from 2023 Adjusted EBITDA* of $0.8 million Ended quarte ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of report (Date of earliest event reported:) May 10, 2024 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 E ...

or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to ______________ Commission File Number 1-12368 (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Registrant's telephone number, including area code) TANDY LEATHER FACTORY, INC. (Exact name of re ...

Financial Data and Key Metrics Changes - Sales decreased by approximately 5.1% to $76.2 million, attributed to weak consumer demand and the closure of six stores, which accounted for about $1.4 million of the sales decline [32] - Gross profit dollars fell by 2.9% to $45.2 million, but the gross margin rate improved by 130 basis points due to reductions in freight and warehouse overhead, better full-price selling, and product mix adjustments [33] - Operating income increased by $3 million to $4.4 million, driven by a 9.7% decline in operating expenses [20][22] Business Line Data and Key Metrics Changes - The company opened a new store in Queens, New York, in July 2023, which is performing well despite ongoing sales ramp-up [32] - Two additional stores are set to open in Margate, Florida, and Richmond, Virginia, to recoup lost sales from previous closures [21] Market Data and Key Metrics Changes - The company is focusing on optimizing its retail fleet, with 38 leases up for renewal in the next 18 months, indicating a proactive approach to managing underperforming locations [15] Company Strategy and Development Direction - The company is prioritizing profitability and cash flow, with plans to open three to five new stores while maintaining a focus on its core business [23] - A new store model emphasizes a smaller footprint, lower rents, and enhanced customer engagement through workshops and classes [11] - The company is exploring the sale of its Fort Worth property to unlock potential value and excess cash [13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging consumer demand environment and emphasized a conservative investment approach to drive sales growth [19] - The focus remains on long-term shareholder value and disciplined capital allocation [12] Other Important Information - The company has no debt and reported a cash increase of $4 million to $12.2 million [10] - Interest income from cash balances was low, approximately $90,000, due to investments in risk-free securities and fluctuations in cash balances throughout the year [37] Q&A Session Summary Question: How far along is the company in optimizing the retail fleet? - Management indicated that the optimization process is ongoing, with substantial work still to be done [25] Question: Why is the interest income on cash balances low? - Management explained that interest income was around $90,000 last year due to cash reaching a low point in Q3 and the initiation of a T-Bill investment program [37] Question: Is there strong interest in the sale of the headquarters? - Management confirmed that there has been strong interest in the sale of the Fort Worth property [43]

Exhibit 99.1 FOR IMMEDIATE RELEASE March 22, 2024 Topic: Tandy Leather 2023 Year-End Investor Call Time: March 26, 2024, 9:00 AM Central Time (US and Canada) Join Zoom Meeting https://us06web.zoom.us/j/84143000816 Meeting ID: 841 4300 0816 Tandy Leather Factory Reports Fourth Quarter and Full Year 2023 Results FORT WORTH, TEXAS – March 22, 2024 (GLOBE NEWSWIRE) – Tandy Leather Factory, Inc. (Nasdaq: TLF) today announced the Company's financial results for the fourth fiscal quarter and full year 2023. Highli ...