Revenue Performance - Consolidated revenue for Q2 2022 was $17,810,000, an increase of 31.1% compared to $13,589,000 in Q2 2021[108] - Florida Pneumatic's revenue for Q2 2022 was $12,666,000, up 18.2% from $10,712,000 in Q2 2021[108] - Hy-Tech's revenue for Q2 2022 reached $5,144,000, a significant increase of 78.8% from $2,877,000 in Q2 2021[108] - For the six-month period ended June 30, 2022, consolidated revenue was $31,831,000, reflecting a 15.6% increase from $27,535,000 in the same period of 2021[108] - Florida Pneumatic's six-month revenue was $22,947,000, a 6.2% increase from $21,614,000 in the prior year[108] - Hy-Tech's six-month revenue was $8,884,000, marking a 50.0% increase from $5,921,000 in the same period of 2021[108] - Total revenue for the three months ended June 30, 2022, was $12,666,000, an increase of 18.2% compared to $10,712,000 in the same period of 2021[110] - Retail sector revenue increased by 28.2% to $4,826,000, driven by a stocking rollout to The Home Depot[111] - Aerospace revenue grew by 25.7% to $2,179,000, primarily due to increased orders from commercial and defense customers[111] - Automotive revenue saw a modest increase of 1.9% to $3,853,000, but future revenue may decline due to changes in distribution strategy[111] - Hy-Tech's OEM product line revenue surged by 80.5% to $2,542,000, attributed to increased orders and improved economic conditions[116] - Hy-Tech's PTG product line revenue increased by 162.1% to $1,583,000, significantly impacted by the acquisition of the JGC business[116] Cost and Expenses - The ongoing supply chain crisis, exacerbated by COVID-19, has led to increased costs and inventory shortages[100] - The company is monitoring the impact of inflation on operating costs, particularly in freight, raw materials, and labor[103] - Selling, general and administrative expenses (SG&A) for the second quarter of 2022 were $5,479,000, slightly up from $5,458,000 in the same period in 2021[122] Profitability - Total gross profit for the three months ended June 30, 2022, was $5,636,000, a 16.3% increase from $4,848,000 in the prior year[118] - Florida Pneumatic's gross margin declined by 1.2 percentage points to 37.7%, influenced by a higher mix of lower-margin Retail revenue[118] Financing and Capital Structure - Interest expense for short-term borrowings increased significantly to $89,000 in Q2 2022 from $8,000 in Q2 2021, representing a 1,012.5% increase[126] - Total interest expense for the six-month period ended June 30, 2022, was $138,000, compared to $7,000 in the same period in 2021, marking an increase of 1,871.4%[126] - The total debt to total book capitalization ratio increased to 18.9% as of June 30, 2022, from 11.6% at December 31, 2021[135] - The company had $7,000,000 available under its Revolver arrangement as of June 30, 2022[133] Working Capital and Liquidity - Working capital decreased to $22,407,000 as of June 30, 2022, from $24,598,000 at the end of 2021[131] - The current ratio declined to 2.40:1 as of June 30, 2022, compared to 3.04:1 at December 31, 2021[131] Acquisitions and Investments - The acquisition of Jackson Gear Company is expected to enhance market exposure in the larger gears market[91] - The company completed the acquisition of JGC for a total purchase price of $2,300,000 during the six-month period ended June 30, 2022[136] - Capital expenditures for the six-month period ended June 30, 2022, were $923,000, up from $247,000 in the same period in 2021, with an additional $700,000 planned for the remainder of 2022[137] Taxation - The effective tax rate for the three-month period ended June 30, 2022, was a tax expense of 138.2%, compared to a tax benefit of 3.8% in the same period in 2021[130] Government Assistance - The company received a Paycheck Protection Program (PPP) loan of $2,929,000, which was fully forgiven by the SBA in June 2021, resulting in the recognition of this amount as Other Income in 2021[125]
P&F Industries(PFIN) - 2022 Q2 - Quarterly Report