Financial Performance - Net revenue for the year ended December 31, 2022, was $59,041,000, an increase of 10.3% compared to $53,554,000 in 2021[130] - Gross profit for 2022 was $18,939,000, representing a gross margin of 32.1%, compared to a gross profit of $17,347,000 in 2021[130] - Operating loss for 2022 was $(1,482,000), an improvement from a loss of $(2,597,000) in 2021[130] - Net loss for 2022 was $(1,476,000), compared to a net income of $2,290,000 in 2021, resulting in a basic and diluted loss per share of $(0.46)[130] - The company reported a net loss of $1,476,000 for the year ended December 31, 2022, compared to a net income of $2,290,000 in 2021[201] Assets and Liabilities - Total assets as of December 31, 2022, were $61,004,000, an increase from $58,190,000 in 2021[124] - Total liabilities increased to $19,048,000 in 2022 from $14,350,000 in 2021, primarily due to an increase in short-term borrowings[126] - Cash and cash equivalents at the end of 2022 were $667,000, up from $539,000 at the end of 2021[124] - The company’s goodwill increased to $4,822,000 in 2022 from $4,447,000 in 2021, reflecting ongoing investments[124] - Total cash provided by operating activities was $3,288,000 in 2022, a recovery from a cash used of $4,149,000 in 2021, indicating improved operational cash flow[134] Operational Costs - Selling, general and administrative expenses rose to $20,373,000 in 2022, compared to $19,856,000 in 2021, indicating increased operational costs[130] - The company experienced a decrease in inventories by $223,000 in 2022, contrasting with a significant decrease of $5,671,000 in 2021, indicating improved inventory management[134] - Advertising expenses decreased to $884,000 in 2022 from $1,276,000 in 2021, reflecting a reduction of approximately 30.8%[198] Strategic Moves and Investments - The company acquired the net assets of the Jackson Gear Company for $2,300,000, indicating a strategic move for expansion[137] - Capital expenditures increased to $2,374,000 in 2022 from $642,000 in 2021, highlighting a focus on investment in assets[137] - The Company acquired JGC for approximately $2.3 million in cash, funded by Revolver borrowings, enhancing market exposure in larger gears[214] Revenue Breakdown - Total revenue for the year ended December 31, 2022, was $41,398,000, a slight decrease of 0.2% compared to $41,488,000 in 2021[161] - Revenue from the Automotive segment decreased by 5.8% to $13,699,000, while Aerospace revenue increased by 20.5% to $8,658,000[161] - Revenue generated at Hy-Tech increased by 46.2% to $17,643,000 in 2022, driven by a significant rise in OEM sales[165] Cash Flow and Financing - The Company had borrowing availability on its bank facility of $7,678,000 as of December 31, 2022, and is not in default on any bank covenant[154] - The Company has a $16,000,000 revolver line of credit, with $7,678,000 available under the Revolver portion as of December 31, 2022[237] - The average balance of short-term borrowings from the bank rose significantly to $9,845,000 in 2022 compared to $2,686,000 in 2021[238] Tax and Compliance - The effective tax rate for 2022 was (20.3)%, a significant decrease from (0.1)% in 2021, primarily due to changes in state and local taxes and the impact of the CARES Act[275] - The Company recognized a total income tax benefit of $376,000 for the year ended December 31, 2022, compared to a benefit of $2,000 in 2021[267] Future Outlook - Management believes that sufficient funds will be generated from operations and existing credit facilities to fund its operations for at least one year[154] - The company has contingency plans to reduce or defer expenses and cash outlays if operations weaken beyond current forecasts[154] - The Company intends to declare a cash dividend of $0.20 per share per annum, with a quarterly cash dividend of $0.05 per share declared for stockholders of record on March 31, 2023[279]
P&F Industries(PFIN) - 2022 Q4 - Annual Report