Tandy Leather Factory Reports Second Quarter 2024 Results

Core Insights - Tandy Leather Factory, Inc. reported a revenue of $17.3 million for Q2 2024, reflecting a 1.1% decrease from $17.5 million in Q2 2023 [1] - The company generated an operating income of $63,000, down from $0.8 million in the same quarter last year [1] - Net income for the quarter was $0.1 million, a decline from $0.5 million in Q2 2023, resulting in basic and diluted net income per share of $0.01 compared to $0.06 in the prior year [1] - Gross margins decreased to 58.0% from 62.5% in 2023, attributed to accounting adjustments and increased promotional activities [2] - Operating expenses were $10.0 million, down 1.7% from the previous year, indicating cost management efforts in response to declining sales [1][2] - Adjusted EBITDA for the quarter was reported at $0.8 million [1][3] - The company ended the quarter with $11.5 million in cash and cash equivalents, an increase from $10.0 million a year earlier [1] Financial Performance - Revenue: $17.3 million, down 1.1% from 2023 [1] - Operating Income: $63,000, down from $0.8 million in 2023 [1] - Net Income: $0.1 million, down from $0.5 million in 2023 [1] - Gross Margin: 58.0%, down from 62.5% in 2023 [1][2] - Operating Expenses: $10.0 million, down 1.7% from 2023 [1] - Adjusted EBITDA: $0.8 million [1][3] - Cash and Cash Equivalents: $11.5 million, up from $10.0 million a year earlier [1] Management Commentary - The CEO noted that the sales decline reflects customers' lower discretionary income and sluggish spending trends [2] - The company managed to reduce operating expenses nearly by 2% to offset the decline in sales and gross margin [2] - Cash position remains strong despite additional capital expenditures [2]