Tandy Leather Factory(US:TLF)2025-11-10 21:11Financial Performance - Net sales for Q3 2025 were $17,264, a slight decrease of 0.5% compared to $17,351 in Q3 2024[11] - Gross profit for the nine months ended September 30, 2025, increased to $31,460, up 1.6% from $30,960 in the same period of 2024[11] - Net income for the nine months ended September 30, 2025, was $10,032, significantly higher than $495 in the same period of 2024[13] - Operating expenses for Q3 2025 were $10,848, an increase of 5.4% compared to $10,289 in Q3 2024[11] - The company reported a loss from operations of $678 in Q3 2025, compared to a loss of $267 in Q3 2024[11] - For the three months ended September 30, 2025, net sales were $17.264 million, a slight decrease from $17.351 million in the same period of 2024[29] - For the nine months ended September 30, 2025, net sales totaled $54.072 million, compared to $53.913 million in 2024, indicating a year-over-year increase[29] - The company reported a net loss of $1.35 million for the three months ended September 30, 2025, compared to a loss of $0.13 million in 2024[68] - Basic earnings per share (EPS) for the nine months ended September 30, 2025, was $1.20, compared to $0.06 in 2024[68] Cash and Assets - Cash and cash equivalents at the end of Q3 2025 were $12,018, up from $10,055 at the end of Q3 2024[13] - The company recognized a gain of $16,225 from the disposal of headquarters assets during the nine months ended September 30, 2025[11] - Total other income for the nine months ended September 30, 2025, was $13,740, compared to $228 in the same period of 2024[11] - The company paid dividends totaling $12,745 during the nine months ended September 30, 2025[13] - Finished goods inventory as of September 30, 2025, was valued at $32.376 million, an increase from $31.022 million as of December 31, 2024[39] - The total inventory on hand as of September 30, 2025, was $35.947 million, compared to $35.556 million as of December 31, 2024[39] - The net book value of the disposed headquarters assets was $8.7 million, leading to a net gain of $16.225 million[76] Corporate Developments - As of September 30, 2025, the Company operates a total of 101 retail stores, with 91 in the U.S., 9 in Canada, and 1 in Spain[20] - The Company signed a 10-year lease for new corporate headquarters and distribution facilities in Benbrook, Texas, effective July 1, 2025[78] - Johan Hedberg was appointed as the new Chief Executive Officer on January 6, 2025, following the resignation of Janet Carr[79] Tax and Compliance - The effective income tax rate for the three months ended September 30, 2025, was 26.2%, down from 27.9% in 2024, primarily due to tax benefits from corporate property sales[61] - The Company operates under GAAP and has made normal recurring adjustments to present its financial position fairly as of September 30, 2025[21] - As of the date of the filing, no funds had been borrowed under the credit facility, and the Company is in compliance with all covenants[81] Stock and Compensation - The weighted average number of shares outstanding for Q3 2025 was 8,142,441, compared to 8,422,514 in Q3 2024[11] - The company has a credit facility of up to $5 million with JPMorgan Chase Bank, with no funds borrowed as of the filing date[59] - Stock-based compensation expense for the three months ended September 30, 2025, was $0.1 million, compared to $0.2 million in 2024[65] - The company granted a total of 1,018,000 RSUs during the nine months ended September 30, 2025[65] - The company completed the purchase of 430,897 shares from the former CEO at $3.00 per share, totaling $1.29 million[72] - The company has $5 million remaining available for stock repurchase under the renewed program until September 30, 2026[71] Errors and Corrections - An immaterial error related to the accounting for the sale of property resulted in an overstatement of gain by approximately $1.4 million pre-tax, which was corrected in the third quarter of 2025[76] - Net income for the three months ended March 31, 2025, was overstated by $1.1 million net of tax, equating to $0.11 per share basic and $0.12 per share diluted[77]