MELVILLE, N.Y., Aug. 12, 2021 /PRNewswire/ -- P&F Industries,
Inc. (NASDAQ: PFIN) today announced its results from operations for
the three and six-month periods ended June
30, 2021. The Company is reporting net revenue of
$13,589,000, and $27,535,000, respectively, for the three and
six-month periods ended June 30,
2021, compared to $11,520,000
and $24,870,000, respectively, for
the same periods in 2020. For the three and six-month periods
ended June 30, 2021, the Company is
reporting net income before income taxes of $2,334,000, and $1,957,000, respectively, compared to net losses
before income taxes of $3,195,000 and
$4,458,000, respectively, for the
same periods a year ago. Further, for the three-and six-month
periods ended June 30, 2021, the
Company is reporting net income after-taxes of $2,423,000 and $2,116,000, respectively, compared to net loss
after-taxes of $2,381,000 and
$3,139,000, respectively, for the
three and six-month periods ended June
30, 2020. The income before income taxes for the three
and six-months ended June 30, 2021,
included the recognition of the forgiveness of a $2,929,200 Payroll Protection Program loan.
The Company's basic and diluted earnings per share for the
three-month period ended June 30,
2021, was $0.76. For the
six-month period ended June 30, 2021,
its basic and diluted earnings per share were $0.67 and $0.66,
respectively, compared to basic and diluted loss per share of
$0.76 and $1.00, respectively, for the same periods in
2020.
Richard Horowitz, the Company's
Chairman of the Board, Chief Executive Officer and President
commented, "We believe we have begun to exit the harsh grips of the
COVID-19 global pandemic during the latter portion of the second
quarter of 2021, as evidenced by improved performances of several
lines of business. The 18.0% increase in our consolidated second
quarter 2021 revenue, compared to the same period a year ago, was
driven primarily by improved results at our Florida Pneumatic
subsidiary, which recorded a 31.6% increase in its Retail revenue,
and a 29.2% increase in its Automotive sales. However, its
aerospace product line was down 10.3% this quarter, compared to the
same period in 2020, as recovery from the impact of the global
pandemic at its primary customers and this market segment in
general, remain sluggish. Revenue at Hy-Tech this quarter was
essentially flat to the prior year. Consolidated gross margin
for the three-month period ended June 30,
2021, improved 9.2 percentage points over the same period in
2020. This was driven primarily by higher gross margin at Hy-Tech,
which was mostly due to improved manufacturing overhead and the
non-recurrence of adjustments to its inventory that were recorded
during the second quarter of 2020.
Our second quarter 2021 SG&A expenses increased compared to
the same period a year ago, driven by higher variable expenses
related to the increase in revenue, higher total compensation
costs, and costs related to the May
2021 ransomware attack at our Florida Pneumatic subsidiary.
The above increases were partially offset by reductions in our
professional fees, general corporate expenses and depreciation and
amortization expenses."
Mr. Horowitz added, "In June 2021,
our PPP loan was forgiven, thus allowing us to record a non-taxable
$2.9 million gain, which was
accounted for as other income this quarter."
Mr. Horowitz concluded, "While we are happy with the improved
results over the prior year, we are excited for what we believe are
still better days ahead and remain cautiously optimistic about
future growth. However, for now, COVID-19 remains an issue, as
cases have once again risen in many parts of the country and
abroad. We intend to do our utmost to continue to serve our
customers, while ensuring the health and safety of our
employees. Through persistence by all of our employees, as
well as the loyalty of our customers, we made it through difficult
times, and firmly believe that when this pandemic truly is
contained, we will be well positioned for future growth."
The Company will be reporting the following:
TRENDS AND UNCERTAINTIES
COVID-19 PANDEMIC
On March 11, 2020, the World Health Organization designated
the recent novel coronavirus, or COVID-19, as a global
pandemic. COVID-19 was first detected in Wuhan City, Hubei
Province, China and
continued to spread, significantly impacting various markets around
the world, including the United
States. Various policies and initiatives have been
implemented to reduce the global transmission of COVID-19.
The COVID-19 virus and the resultant global economic down-turn
continues to have a negative impact on our three and six-month 2021
results. There are delays in receiving containers from Asia due to a significant increase in
international shipping traffic, which has caused intermittent
shortages of inventory. Further, the costs of international freight
has greatly increased. In addition, the COVID-19 pandemic has
caused many of our customers and potential customers to refuse
on-site visits, which is critical to generating revenue. We believe
that until this practice subsides, our business could be adversely
affected.
BOEING/AEROSPACE
The Federal Aviation Administration ("FAA") and the European
Union Aviation Safety Agency ("EASA") have lifted the grounding of
the 737 MAX. However, production is still very limited due to the
inventory at Boeing and the reluctance of airlines to accept
deliveries due to weak air travel demand. This will likely continue
to have an adverse effect on our revenue. In addition, production
of military and other commercial aircraft throughout the industry
has slowed as well, we believe due to the ongoing global COVID-19
pandemic. However, we believe when all other commercial and
military production lines throughout the
United States come back online, an increase in our revenue
should follow.
OIL AND GAS
The profitability of crude oil production generally declines
when prices fall. As a result, as prices dropped in 2020,
production slowed worldwide. However, the price of crude oil
has begun to improve. As such, orders and activity during
this quarter have begun to strengthen. In addition to the
price of crude oil we monitor the number of active rotary rigs,
which is discussed elsewhere. Until crude price and rig counts
return to pre-pandemic levels, it is likely we could continue to be
negatively impacted.
TECHNOLOGIES
We believe that over time, several newer technologies, and
features will have a greater impact on the market for our
traditional pneumatic tool offerings. The impact of this evolution
has been felt initially by the advent of advanced cordless operated
hand tools in the automotive aftermarket. For certain
non-automotive applications, we have begun to develop cordless
models of tools and expect to introduce these products in the near
future.
OTHER MATTERS
On May 13, 2021, Florida Pneumatic
detected a ransomware attack on its information technology systems
that caused data to be encrypted. The threat actor demanded a
ransom payment for the release of a decryption key. Florida
Pneumatic promptly launched an investigation and notified law
enforcement, and legal counsel, who in turn engaged independent
third-party incident response professionals to assist in, among
other areas, determining the extent of this cyber incident,
remediation and restoration. Additionally, Florida Pneumatic
implemented a series of containment measures. At the present time,
all critical Florida Pneumatic information technology systems have
been remediated and, as a result, are operational. We believe
that our corporate office and our other subsidiaries, all of which
operate on separate, independent networks, were not affected by
this incident.
Other than the aforementioned, or matters that may be discussed
below, there are no major trends or uncertainties that had, or we
could have reasonably expected to have a material impact on our
revenue, nor was there any unusual or infrequent event, transaction
or any significant economic change that materially affected our
results of operations.
REVENUE
During the second quarter of 2021, many of our product lines
were still affected to some degree by the global COVID-19 pandemic,
which caused our orders and revenue for the three-month period
ended June 30, 2021, to be less than
pre-pandemic levels.
The tables below provide an analysis of our net revenue for the
three and six-month periods ended June 30,
2021, and 2020:
Consolidated
|
|
|
|
Three months ended
June 30,
|
|
|
|
|
|
|
|
|
|
Increase
(decrease)
|
|
|
|
2021
|
|
|
2020
|
|
|
$
|
|
|
%
|
|
Florida
Pneumatic
|
|
$
|
10,712,000
|
|
|
$
|
8,640,000
|
|
|
$
|
2,072,000
|
|
|
|
24.0
|
%
|
Hy-Tech
|
|
|
2,877,000
|
|
|
|
2,880,000
|
|
|
|
(3,000)
|
|
|
|
(0.1)
|
|
Consolidated
|
|
$
|
13,589,000
|
|
|
$
|
11,520,000
|
|
|
$
|
2,069,000
|
|
|
|
18.0
|
%
|
|
|
Six months ended
June 30,
|
|
|
|
|
|
|
|
|
|
Increase
(decrease)
|
|
|
|
2021
|
|
|
2020
|
|
|
$
|
|
|
%
|
|
Florida
Pneumatic
|
|
$
|
21,614,000
|
|
|
$
|
18,670,000
|
|
|
$
|
2,944,000
|
|
|
|
15.8
|
%
|
Hy-Tech
|
|
|
5,921,000
|
|
|
|
6,200,000
|
|
|
|
(279,000)
|
|
|
|
(4.5)
|
|
Consolidated
|
|
$
|
27,535,000
|
|
|
$
|
24,870,000
|
|
|
$
|
2,665,000
|
|
|
|
10.7
|
%
|
Florida Pneumatic
Florida Pneumatic markets its air tool products to four primary
sectors within the pneumatic tool market; Automotive, Retail,
Aerospace and Industrial. It also generates revenue from its
Berkley products line, as well as a line of air filters and other
OEM parts ("Other").
|
|
Three months ended June
30,
|
|
|
|
2021
|
|
|
2020
|
|
|
Increase
(decrease)
|
|
|
|
Revenue
|
|
|
Percent of
revenue
|
|
|
Revenue
|
|
|
Percent of
revenue
|
|
|
$
|
|
|
%
|
|
Automotive
|
|
$
|
3,782,000
|
|
|
|
35.3
|
%
|
|
$
|
2,928,000
|
|
|
|
33.9
|
%
|
|
$
|
854,000
|
|
|
|
29.2
|
%
|
Retail
|
|
|
3,763,000
|
|
|
|
35.1
|
|
|
|
2,860,000
|
|
|
|
33.1
|
|
|
|
903,000
|
|
|
|
31.6
|
|
Industrial
|
|
|
1,303,000
|
|
|
|
12.3
|
|
|
|
817,000
|
|
|
|
9.4
|
|
|
|
486,000
|
|
|
|
59.5
|
|
Aerospace
|
|
|
1,734,000
|
|
|
|
16.2
|
|
|
|
1,934,000
|
|
|
|
22.4
|
|
|
|
(200,000)
|
|
|
|
(10.3)
|
|
Other
|
|
|
130,000
|
|
|
|
1.1
|
|
|
|
101,000
|
|
|
|
1.2
|
|
|
|
29,000
|
|
|
|
28.7
|
|
Total
|
|
$
|
10,712,000
|
|
|
|
100.0
|
%
|
|
$
|
8,640,000
|
|
|
|
100.0
|
%
|
|
$
|
2,072,000
|
|
|
|
24.0
|
%
|
|
|
Six months ended June
30,
|
|
|
|
2021
|
|
|
2020
|
|
|
Increase
(decrease)
|
|
|
|
Revenue
|
|
|
Percent of
revenue
|
|
|
Revenue
|
|
|
Percent of
Revenue
|
|
|
$
|
|
|
%
|
|
Automotive
|
|
$
|
7,884,000
|
|
|
|
36.5
|
%
|
|
$
|
6,160,000
|
|
|
|
33.0
|
%
|
|
$
|
1,724,000
|
|
|
|
28.0
|
%
|
Retail
|
|
|
7,553,000
|
|
|
|
34.9
|
|
|
|
5,851,000
|
|
|
|
31.3
|
|
|
|
1,702,000
|
|
|
|
29.1
|
|
Industrial
|
|
|
2,662,000
|
|
|
|
12.3
|
|
|
|
1,879,000
|
|
|
|
10.1
|
|
|
|
783,000
|
|
|
|
41.7
|
|
Aerospace
|
|
|
3,262,000
|
|
|
|
15.1
|
|
|
|
4,533,000
|
|
|
|
24.3
|
|
|
|
(1,271,000)
|
|
|
|
(28.0)
|
|
Other
|
|
|
253,000
|
|
|
|
1.2
|
|
|
|
247,000
|
|
|
|
1.3
|
|
|
|
6,000
|
|
|
|
2.4
|
|
Total
|
|
$
|
21,614,000
|
|
|
|
100.0
|
%
|
|
$
|
18,670,000
|
|
|
|
100.0
|
%
|
|
$
|
2,944,000
|
|
|
|
15.8
|
%
|
Although much of U.S. and global economies were still suppressed
due to the global COVID-19 pandemic during the second quarter of
2021, all of Florida Pneumatic's lines of business, other than
aerospace, are reporting improvements. As a result, Florida
Pneumatic's second quarter 2021 total revenue increased
$2,072,000, or 24%, compared to the
same period in 2020. Of note, driven by among other things,
increased demand for various "spray gun" tools and accessories,
which we believe is being driven by the ongoing battle to disinfect
and sanitize homes and businesses alike, and other
"Do-It-Yourself", or DIY pneumatic hand tools, its Retail revenue
increased 31.6%, quarter over quarter. Additionally, stronger
consumer demand for its AIRCAT products and, to a lesser degree,
modest increased sales at our United
Kingdom ("U.K.") operations, were the primary factors for
the increase in Automotive revenue. Further, Florida
Pneumatic's second quarter 2021 Industrial revenue improved 59.5%
over the same period a year ago. This increase, we believe is due
in part to certain sectors beginning to recover from the ill
effects of the pandemic. However, its second quarter 2021
Aerospace revenue declined 10.3%, compared to the same period in
2020. The Boeing Corporation is a major customer of Jiffy.
The Boeing 737 MAX aircraft was grounded by the FAA and the EASA in
March 2019. Although both agencies have lifted the "No Fly"
ruling it imposed on all Boeing 737 MAX aircraft, allowing it to
begin flights in the United
States, and Europe, we
believe it will take several years for the Boeing Corporation to
increase its manufacturing of its 737 MAX aircraft to a volume that
would be comparable to pre COVID-19 levels, and thus require a
material amount of our Jiffy tools. Lastly, orders from other
aerospace companies and military aircraft manufacturers declined,
we believe, due to COVID-19 constraints placed on manufacturing
facilities.
An analysis of Florida Pneumatic's six-month revenue is fairly
consistent with its second quarter 2021 results discussed above.
Specifically, its Automotive revenue, driven by growing demand for
its AIRCAT line of pneumatic hand tools, plus stronger sales
generated by its UK operations, improved 28% when compared to the
same six-month period in 2020. Additionally, its year-to-date
Retail revenue, driven primarily by demand for spray gun type tools
and accessories, as well as other DIY pneumatic tools and
accessories, improved by 29.1%. Further, its Industrial revenue
also encountered growth, which we believe is driven primarily by
certain sectors beginning to recover from the effects of the
pandemic during 2020. As discussed above, the on-going weakness in
Jiffy's aviation customer base continues to result in lower
revenue. We do believe however, that this trend should ease and
slowly reverse.
Hy-Tech
Hy-Tech designs, manufactures, and sells a wide range of
industrial products under the brands ATP and ATSCO which are
categorized as ATP for reporting purposes. In addition to
Engineered Solutions, products and components manufactured for
other companies under their brands are included in the OEM category
in the table below. PTG revenue is comprised of products
manufactured and sold by Hy-tech's gear business. NUMATX, Thaxton
and other peripheral product lines, such as general machining, are
reported as Other.
|
|
Three months ended
June 30,
|
|
|
|
2021
|
|
|
2020
|
|
|
Increase
(decrease)
|
|
|
|
Revenue
|
|
|
Percent of
revenue
|
|
|
Revenue
|
|
|
Percent of
revenue
|
|
|
$
|
|
|
%
|
|
OEM
|
|
$
|
1,408,000
|
|
|
|
48.9
|
%
|
|
$
|
1,202,000
|
|
|
|
41.7
|
%
|
|
$
|
206,000
|
|
|
|
17.1
|
%
|
ATP
|
|
|
779,000
|
|
|
|
27.1
|
|
|
|
569,000
|
|
|
|
19.8
|
|
|
|
210,000
|
|
|
|
36.9
|
|
PTG
|
|
|
604,000
|
|
|
|
21.0
|
|
|
|
1.021,000
|
|
|
|
35.5
|
|
|
|
(417,000)
|
|
|
|
(40.8)
|
|
Other
|
|
|
86,000
|
|
|
|
3.0
|
|
|
|
88,000
|
|
|
|
3.0
|
|
|
|
(2,000)
|
|
|
|
(2.3)
|
|
Total
|
|
$
|
2,877,000
|
|
|
|
100.0
|
%
|
|
$
|
2,880,000
|
|
|
|
100.0
|
%
|
|
$
|
(3,000)
|
|
|
|
(0.1)
|
%
|
|
|
Six months ended
June 30,
|
|
|
|
2021
|
|
|
2020
|
|
|
Increase
(decrease)
|
|
|
|
Revenue
|
|
|
Percent of
revenue
|
|
|
Revenue
|
|
|
Percent of
revenue
|
|
|
$
|
|
|
%
|
|
OEM
|
|
$
|
3,019,000
|
|
|
|
51.0
|
%
|
|
$
|
2,641,000
|
|
|
|
42.6
|
%
|
|
$
|
378,000
|
|
|
|
14.3
|
%
|
ATP
|
|
|
1,492,000
|
|
|
|
25.2
|
|
|
|
1,629,000
|
|
|
|
26.3
|
|
|
|
(137,000)
|
|
|
|
(8.4)
|
|
PTG
|
|
|
1,250,000
|
|
|
|
21.1
|
|
|
|
1,757,000
|
|
|
|
28.3
|
|
|
|
(507,000)
|
|
|
|
(28.9)
|
|
Other
|
|
|
160,000
|
|
|
|
2.7
|
|
|
|
173,000
|
|
|
|
2.8
|
|
|
|
(13,000)
|
|
|
|
(7.5)
|
|
Total
|
|
$
|
5,921,000
|
|
|
|
100.0
|
%
|
|
$
|
6,200,000
|
|
|
|
100.0
|
%
|
|
$
|
(279,000)
|
|
|
|
(4.5)
|
%
|
During the second quarter of 2021, Hy-Tech began to encounter
modest signs that the ill effects of the pandemic may be beginning
to ease. Customer orders for its OEM and ATP product lines improved
when compared to the same three-month period a year ago, resulting
in revenue growth of 17.1% and 36.9%, respectively. Its
Engineered Solutions approach continues to gain momentum, which is
driving its OEM revenue growth. ATP revenue improvement was due in
large part to a rebound in the pneumatic tool rental sector, and a
slight increase in the number of oil and gas rigs. According to
Baker Hughes Inc., the average number of oil and gas rotary rigs in
operation during the fiscal second quarter 2021 were 453, compared
to 392 during the same three-month period in 2020. Additionally, in
an effort to increase market penetration, Hy-Tech has "refreshed"
and or improved a number of its ATP tools, as well as began to
market a new line of large impact wrenches. Hy-Tech believes that
the Magnum Force line, its new series of super duty
industrial impact tools, that are designed specifically for use in
demanding environments, such as refinery turnarounds, power
generation outages, structural steel erection, mining and other
similar bolting applications, is gaining acceptance. The above
increases were offset by a quarter over quarter decline in its PTG
revenue. It should be noted that the backlog entering the second
quarter of 2020 was much greater than that entering the second
quarter of 2021, which was prior to the pandemic.
Additionally, PTG encountered delays and disruptions in its supply
channel during the second quarter of 2021.
The decline in Hy-Tech's total revenue for the six-month period
ended June 30, 2021, compared to the
same period in 2020, was primarily due to the following key
factors: i) the ongoing negative effects on the U.S. economy caused
by the global COVID-19 pandemic, particularly adversely affecting
PTG revenue and operations; and ii) supply chain interruptions from
both domestic and international suppliers. When comparing the
six-month periods ended June 30,
2021, and 2020, ATP revenue decreased by 8.4%. We believe
the second quarter results discussed earlier is more reflective of
the business. We are beginning to see improvement in the number and
size of ATP orders and are optimistic about market acceptance of
our Magnum Force line. OEM revenue increased 14.3%
during the six-month period ended June 30,
2021, compared to the same period in 2020, due primarily to
the year over year growth in its Engineered Solutions marketing
campaign. PTG's six-month 2021 revenue declined 28.9%, due
primarily to the factors discussed earlier. As travel
restriction ease and customers begin to accept visitors, we believe
order levels should improve. In addition, we are working with
vendors and improving internal systems toward the goal of greatly
reducing supply chain issues moving forward.
GROSS
MARGIN/PROFIT
|
|
|
|
Three months ended
June 30,
|
|
|
Increase
|
|
|
|
2021
|
|
|
2020
|
|
|
Amount
|
|
|
|
|
%
|
|
Florida
Pneumatic
|
|
$
|
4,165,000
|
|
|
$
|
3,208,000
|
|
|
$
|
957,000
|
|
|
|
|
|
29.8
|
%
|
As percent of
respective revenue
|
|
|
38.9
|
%
|
|
|
37.1
|
%
|
|
|
1.8
|
%
|
|
pts
|
|
|
|
|
Hy-Tech
|
|
$
|
683,000
|
|
|
$
|
(160,000)
|
|
|
$
|
843,000
|
|
|
|
|
|
526.9
|
|
As percent of
respective revenue
|
|
|
23.7
|
%
|
|
|
(5.6)
|
%
|
|
|
29.3
|
%
|
|
pts
|
|
|
|
|
Total
|
|
$
|
4,848,000
|
|
|
$
|
3,048,000
|
|
|
$
|
1,800,000
|
|
|
|
|
|
59.1
|
%
|
As percent of
respective revenue
|
|
|
35.7
|
%
|
|
|
26.5
|
%
|
|
|
9.2
|
%
|
|
pts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The slight improvement in Florida Pneumatic's gross margin was
due primarily to product mix. The improved Industrial and
Automotive revenue this quarter, compared to the same three-month
period in 2020, contributed to its overall increase in gross
margin. This improvement was partially offset by reduced
manufacturing at Jiffy, which in turn resulted in under absorption
of its manufacturing overhead. While Hy-Tech's overall
product/customer mix is a key factor in its overall gross margin,
it should be noted that Hy-Tech's second quarter gross margin of
23.7% reflects a 29.3 percentage point improvement, when compared
to the same three-month period in 2020. This increase was driven by
a slight improvement in its manufacturing overhead
absorption. Additionally, during the second quarter of 2020,
Hy-Tech recorded an additional charge to its obsolete, slow moving
inventory ("OSMI"), and recorded a physical inventory adjustment,
whereas no additional charges were incurred during the three-month
period ended June 30, 2021.
|
|
Six months ended
June 30,
|
|
|
Increase
|
|
|
|
2021
|
|
|
2020
|
|
|
Amount
|
|
|
|
|
%
|
|
Florida
Pneumatic
|
|
$
|
8,365,000
|
|
|
$
|
6,984,000
|
|
|
$
|
1,381,000
|
|
|
|
|
|
19.8
|
%
|
As percent of
respective revenue
|
|
|
38.7
|
%
|
|
|
37.4
|
%
|
|
|
1.3
|
%
|
|
pts
|
|
|
|
|
Hy-Tech
|
|
$
|
1,119,000
|
|
|
$
|
547,000
|
|
|
$
|
572,000
|
|
|
|
|
|
104.6
|
|
As percent of
respective revenue
|
|
|
18.9
|
%
|
|
|
8.8
|
%
|
|
|
10.1
|
%
|
|
pts
|
|
|
|
|
Total
|
|
$
|
9,484,000
|
|
|
$
|
7,531,000
|
|
|
$
|
1,953,000
|
|
|
|
|
|
25.9
|
%
|
As percent of
respective revenue
|
|
|
34.4
|
%
|
|
|
30.3
|
%
|
|
|
4.1
|
%
|
|
pts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Generally, customer and product mix greatly affect Florida
Pneumatic's gross margin. As discussed earlier, the increase in
Florida Pneumatic's higher margin Industrial and, to lesser degree,
its Automotive sales, contributed to the higher gross margin this
quarter compared to the same six-month period in 2020. This
improvement was partially offset by under absorption of Jiffy's
manufacturing overhead, due to the reduction of product being
produced. As Hy-Tech's nearly manufactures all of its
products, its gross margin will be impacted not only by
customer/product mix, but also by, among other factors, absorption
of manufacturing overhead, raw material pricing and third-party
costs. Additionally, Hy-Tech's OSMI can fluctuate more easily than
Florida Pneumatic's. That said, Hy-Tech's gross margin for
the six months ended June 30, 2021,
was 18.9%, which reflects a 10.1 percentage point increase over the
same period in the prior year. As discussed above, during the
six-month period ended June 30, 2020,
Hy-Tech recorded additional charges to its OSMI allowance and an
adjustment to its physical inventory, both adversely affecting its
2020 gross margin, whereas there were no additional charges
incurred during the six months ended June
30, 2021.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Selling, general and administrative expenses ("SG&A")
include salaries and related costs, commissions, travel,
administrative facilities costs, communications costs and
promotional expenses for our direct sales and marketing staff,
administrative and executive salaries and related benefits, legal,
accounting, and other professional fees as well as general
corporate overhead and certain engineering expenses.
During the second quarter of 2021, our SG&A increased
to $5,458,000, from $4,620,000 incurred during the same three-month
period in 2020. There were three major factors causing the
increase. First, there was an increase in variable expenses of
$421,000, driven by improved revenue
this quarter in certain sectors, compared to revenue in the same
three-month period in the prior year. Variable expenses include
among other things, commissions, freight out, travel, advertising,
shipping supplies and warranty costs. The unusually high variable
costs this quarter were also driven by significant increases in
both ocean and ground freight, where in some instances freight
costs have more than doubled. Second, we incurred approximately
$288,000 in costs related to the
May 2021 ransomware attack at our
Florida Pneumatic subsidiary. Additionally, compensation
expenses increased $204,000.
Compensation expense is comprised of base salaries and wages,
accrued performance-based bonus incentives and associated payroll
taxes and employee benefits. Partially offsetting the above
increases, our expenses related to professional fees, general
corporate expenses and depreciation and amortization costs declined
in the aggregate $119,000.
Our SG&A expenses for the six-month period ended
June 30, 2021, were $10,449,000, compared to $10,310,000, during the same six-month period in
2020. The most significant factors contributing to the net change
were i) a reduction of professional fees of $545,000, which was driven by expenses in 2020
related to the relocation and set up the two gear businesses that
were acquired in late 2019, none of which reoccurring in 2021, ii)
as discussed above, we incurred approximately $288,000 in costs related to the May 2021 ransomware attack at our Florida
Pneumatic subsidiary, and iii) driven by an increase of more than
$2,600,000 in revenue, our variable
expenses, which again include among other items, commissions,
freight out, travel, advertising, shipping supplies and warranty
costs, increased $570,000.
Significant increases in both ocean and ground freight, where, in
certain instances, freight costs have more than doubled, is a
significant factor to the unusually large increase in the variable
expense. Additionally, our compensation expenses declined
$92,000. Compensation expense is
comprised of base salaries and wages, accrued performance-based
bonus incentives and associated payroll taxes and employee
benefits. Lastly, when comparing the six-month periods ended
June 30, 2021, and 2020, depreciation
and amortization expenses declined $74,000.
OTHER INCOME
On April 20, 2020, we received a Paycheck Protection
Program ("PPP") loan, in the amount of $2,929,000. Under the terms of the CARES Act, as
amended, we were eligible to apply for forgiveness for all or a
portion of the PPP loan. In February
2021, we filed an application for forgiveness with the
lender, who approved this submission and submitted the application
for forgiveness to the SBA. On June 9,
2021, we were advised that the SBA had approved our PPP loan
forgiveness application and as such, the PPP loan and interest were
forgiven in its entirety. Accordingly, the lender applied the
funds and paid off PPP loan principal in its entirety and interest
in full. In accordance with current accounting guidance this
forgiveness of debt and related accrued interest is to be accounted
for as Other Income and shall not be considerable as taxable
income.
INTEREST
|
|
|
|
Three months ended June
30,
|
|
|
Increase
(decrease)
|
|
|
|
2021
|
|
|
2020
|
|
|
Amount
|
|
|
%
|
|
Interest expense
attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
borrowings
|
|
$
|
8,000
|
|
|
$
|
31,000
|
|
|
$
|
(23,000)
|
|
|
|
(74.2)
|
%
|
PPP loan
|
|
|
(27,000)
|
|
|
|
6,000
|
|
|
|
(33,000)
|
|
|
|
(550.0)
|
|
Amortization expense
of debt issue costs
|
|
|
4,000
|
|
|
|
4,000
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
(15,000)
|
|
|
$
|
41,000
|
|
|
$
|
(56,000)
|
|
|
|
(136.6)
|
%
|
|
|
Six months ended June 30,
|
|
|
Increase
(decrease)
|
|
|
|
2021
|
|
|
2020
|
|
|
Amount
|
|
|
%
|
|
Interest expense
attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
borrowings
|
|
$
|
18,000
|
|
|
$
|
83,000
|
|
|
$
|
(65,000)
|
|
|
|
(78.3)
|
%
|
PPP loan
|
|
|
(19,000)
|
|
|
|
6,000
|
|
|
|
(25,000)
|
|
|
|
(416.7)
|
|
Amortization expense
of debt issue costs
|
|
|
8,000
|
|
|
|
8,000
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
7,000
|
|
|
$
|
97,000
|
|
|
$
|
(90,000)
|
|
|
|
(92.8)
|
%
|
The Applicable Margin, as defined in our Credit Agreement was
the same during the three-month periods ended June 30, 2021, and 2020. The average balance of
short-term borrowings during the three-month periods ended
June 30, 2021, and 2020, were
$1,921,000 and $5,347,000, respectively. As the average balance
of our short-term borrowings was significantly lower during the
first three months of 2021, compared to the same three-month period
in 2020, our short-term interest expense (revolver borrowings)
declined.
In late April 2020, we borrowed approximately $2.9 million from BNB Bank as provided under the
Coronavirus Aid, Relief and Economic Security ("CARES") Act. This
PPP Loan, accrued interest at a rate of 1.0% per annum. Pursuant to
the Flexibility Act, interest on any unforgiven amount is deferred
until the forgiveness determination is made by the SBA. On
June 9, 2021, we received notice that
the SBA had forgiven our obligation to repay the PPP loan and
related accrued interest. As such, we recorded a reversal of
the accrued interest related to the PPP loan.
Lastly, we and our bank amended the Credit Agreement in
February 2019. The debt issue costs are associated with such
amendment.
INCOME TAXES
At the end of each interim reporting period, we compute an
effective tax rate based upon our estimated full year results. This
estimate is used to determine the income tax provision or benefit
on a year-to-date basis and may change in subsequent interim
periods. Accordingly, our effective tax rate for the three-month
and six-month periods ended June 30,
2021, was a tax benefit of 3.8% and 8.1%, compared to a tax
benefit of 25.5% and 29.6% for the same periods in the prior year.
The effective tax rates for all periods presented were impacted
primarily by state taxes, and non-deductible expenses.
Additionally, for the three- and six-month period ended
June 30, 2021, the gain resulting
from the forgiveness of debt of the PPP loan was not included in
the computation of the effective tax rate.
On March 11, 2021, the American
Rescue Plan Act of 2021 (the "APRA") was signed into law in the
U.S. to provide relief as a result of the COVID-19 pandemic. As of
June 30, 2021, the Company has
determined that the APRA had no significant impact on the Company's
effective tax rate. On March 27,
2020, the CARES Act was signed into law. The CARES Act
includes provisions relating to refundable payroll tax credits,
deferment of the employer portion of certain payroll taxes, net
operating loss carryback periods, alternative minimum tax credit
refunds, modifications to the net interest deduction limitation and
technical corrections to tax depreciation methods for qualified
improvement property.
LIQUIDITY AND CAPITAL RESOURCES
We monitor such metrics as days' sales outstanding, inventory
requirements, inventory turns, estimated future purchasing
requirements and capital expenditures to project liquidity needs,
as well as evaluate return on assets. Our primary sources of funds
are operating cash flows, existing working capital and our Revolver
Loan ("Revolver") with our Bank.
We gauge our liquidity and financial stability by various
measurements, some of which are shown in the following table:
|
|
June 30,
2021
|
|
|
December 31, 2020
|
|
Working
capital
|
|
$
|
23,557,000
|
|
|
$
|
21,258,000
|
|
Current
ratio
|
|
|
4.17 to 1
|
|
|
|
3.57 to 1
|
|
Shareholders'
equity
|
|
$
|
43,703,000
|
|
|
$
|
41,538,000
|
|
Credit facility
Our Credit Facility will be discussed in our upcoming filing of
our Form 10-Q for the there-month period ended June 30, 2021.
Cash flows
During the six-month period ended June
30, 2021, our net cash increased to $1,017,000 from $904,000 on December 31, 2020. Our total
bank debt at June 30, 2021, was
$370,000 compared to $4,303,000 at December 31, 2020, included
borrowings under the CARES Act. The total debt to total book
capitalization (total debt divided by total debt plus equity) at
June 30, 2021, was 0.8% compared to
9.4% at December 31, 2020.
At June 30, 2021, our short-term
or Revolver borrowing was $370,000
compared to $1,374,000, at
December 31, 2020. Additionally, at June 30, 2021, and December 31, 2020, there
was approximately $13,627,000 and
$11,971,000, respectively, available
to us under the Revolver arrangement.
During the six-month period ended June
30, 2021, we used $247,000 for
capital expenditures, compared to $915,000 during the same period in the prior
year. Capital expenditures for the balance of 2021 is expected
to be approximately $750,000, some of
which may be financed through our credit facilities with Capital
One Bank or financed through independent third-party financial
institutions. The remaining 2021 capital expenditures will likely
be for machinery and equipment, tooling, and computer hardware and
software.
ABOUT P&F INDUSTRIES, INC
P&F Industries, Inc., through its wholly owned subsidiaries,
is a leading manufacturer and importer of air-powered tools and
accessories sold principally to the aerospace, industrial,
automotive, and retail markets. P&F's products are sold
under its own trademarks, as well as under the private labels of
major manufacturers and retailers.
OTHER INFORMATION
P&F Industries Inc. has scheduled a conference call later
today at 11:00 A.M. Eastern Time, to
discuss its second quarter 2021 results and financial
condition. Investors and other interested parties who wish to
listen to or participate can dial 1-800-367-2403. It is suggested
you call at least 10 minutes prior to the call commencement.
For those who cannot listen to the live broadcast, a replay of the
call will also be available on the Company's website beginning on
or about August 13, 2021.
Forward Looking Statement
The Private Securities Litigation Reform Act of 1995 (the
"Reform Act") provides a safe harbor for forward-looking statements
made by or on behalf of P&F Industries, Inc. and
subsidiaries ("P&F", or the "Company"). P&F and its
representatives may, from time-to-time, make written or verbal
forward-looking statements, including statements contained in the
Company's filings with the Securities and Exchange Commission and
in its reports to shareholders. Generally, the inclusion of the
words "believe," "expect," "intend," "estimate," "anticipate,"
"will," "may," "would," "could," "should," and their opposites and
similar expressions identify statements that constitute
"forward-looking statements" within the meaning of Section 27A
of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934 and that are intended to come
within the safe harbor protection provided by those sections. Any
forward-looking statements contained herein, including those
related to the Company's future performance, are based upon the
Company's historical performance and on current plans, estimates
and expectations. All forward-looking statements involve risks and
uncertainties. These risks and uncertainties could cause the
Company's actual results for all or part the 2021 fiscal year and
beyond to differ materially from those expressed in any
forward-looking statement made by or on behalf of the Company for a
number of reasons including, but not limited to:
|
·
|
Risks related to the
global outbreak of COVID-19 and other public health
crises;
|
|
·
|
Risks associated with
sourcing from overseas;
|
|
·
|
Disruption in the
global capital and credit markets;
|
|
·
|
Importation
delays;
|
|
·
|
Customer
concentration;
|
|
·
|
Unforeseen inventory
adjustments or changes in purchasing patterns;
|
|
·
|
Market acceptance of
products;
|
|
·
|
Competition;
|
|
·
|
Price
reductions;
|
|
·
|
Exposure to
fluctuations in energy prices;
|
|
·
|
The strength of the
retail economy in the United States and abroad;
|
|
·
|
Risks associated with
Brexit;
|
|
·
|
Adverse changes in
currency exchange rates;
|
|
·
|
Interest
rates;
|
|
·
|
Debt and debt service
requirements;
|
|
·
|
Borrowing and
compliance with covenants under our credit facility;
|
|
·
|
Impairment of
long-lived assets and goodwill;
|
|
·
|
Retention of key
personnel;
|
|
·
|
Acquisition of
businesses;
|
|
·
|
Regulatory
environment;
|
|
·
|
Litigation and
insurance;
|
|
·
|
The threat of
terrorism and related political instability and economic
uncertainty; and
|
|
·
|
Business disruptions
or other costs associated with information technology,
cyber-attacks, system implementations, data privacy or catastrophic
losses,
|
and those other risks and uncertainties described in its Annual
Report on Form 10-K for the year ended December 31, 2020, its Quarterly Reports on Form
10-Q, and its other reports and statements filed by the Company
with the Securities and Exchange Commission. Forward-looking
statements speak only as of the date on which they are made. The
Company undertakes no obligation to update publicly or revise any
forward-looking statement, whether as a result of new information,
future developments or otherwise. The Company cautions you against
relying on any of these forward-looking statements.
www.pfina.com
P & F
INDUSTRIES, INC. AND SUBSIDIARIES
|
|
|
|
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
|
|
(In Thousands
$)
|
|
June 30,
2021
|
|
|
December 31,
2020
|
|
|
|
(Unaudited)
|
|
|
(Audited)
|
|
Assets
|
|
|
|
Cash
|
|
|
$
|
1,017
|
|
|
$
|
904
|
|
Accounts receivable -
net
|
|
|
|
8,164
|
|
|
|
7,468
|
|
Inventories
|
|
|
|
19,269
|
|
|
|
18,362
|
|
Prepaid expenses and
other current assets
|
|
|
|
2,527
|
|
|
|
2,806
|
|
|
|
|
|
|
|
|
|
|
|
Total current
assets
|
|
|
|
30,977
|
|
|
|
29,540
|
|
|
|
|
|
|
|
|
|
|
|
Net property and
equipment
|
|
|
|
8,597
|
|
|
|
9,395
|
|
Goodwill
|
|
|
|
4,452
|
|
|
|
4,449
|
|
Other intangible
assets - net
|
|
|
|
5,914
|
|
|
|
6,226
|
|
Deferred income taxes
- net
|
|
|
|
386
|
|
|
|
226
|
|
Right-of-use assets –
operating leases
|
|
|
|
2,958
|
|
|
|
3,281
|
|
Other assets –
net
|
|
|
|
107
|
|
|
|
250
|
|
Total
assets
|
|
|
$
|
53,391
|
|
|
$
|
53,367
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
Short-term
borrowings
|
|
|
$
|
370
|
|
|
$
|
1,374
|
|
Accounts
payable
|
|
|
|
3,681
|
|
|
|
2,199
|
|
Accrued compensation
and benefits
|
|
|
|
1,244
|
|
|
|
525
|
|
Accrued other
liabilities
|
|
|
|
1,280
|
|
|
|
1,354
|
|
|
|
|
|
|
|
|
|
|
|
Current leased
liabilities – operating leases
|
|
|
|
845
|
|
|
|
847
|
|
Current maturities of
long-term debt (PPP loan)
|
|
|
|
-
|
|
|
|
1,983
|
|
|
|
|
|
|
|
|
|
|
|
Total current
liabilities
|
|
|
|
7,420
|
|
|
|
8,282
|
|
|
|
|
|
|
|
|
|
|
|
Noncurrent leased
liabilities – operating leases
|
|
|
|
2,158
|
|
|
|
2,474
|
|
Long-term debt, less
current maturities (PPP loan)
|
|
|
|
-
|
|
|
|
946
|
|
Other
liabilities
|
|
|
|
110
|
|
|
|
127
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
|
9,688
|
|
|
|
11,829
|
|
|
|
|
|
|
|
|
|
|
|
Total
shareholders' equity
|
|
|
|
43,703
|
|
|
|
41,538
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
and shareholders' equity
|
|
|
$
|
53,391
|
|
|
$
|
53,367
|
|
|
|
|
|
|
|
|
|
|
|
P & F
INDUSTRIES, INC. AND SUBSIDIARIES
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS (Unaudited)
|
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
(In Thousand
$)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
Net
revenue
|
$
|
13,589
|
|
$
|
11,520
|
|
$
|
27,535
|
|
$
|
24,870
|
Cost of
sales
|
|
8,741
|
|
8,472
|
|
18,051
|
|
|
17,339
|
Gross
profit
|
|
4,848
|
|
3,048
|
|
9,484
|
|
|
7,531
|
Selling, general and
administrative
expenses
|
|
5,458
|
|
4,620
|
|
10,449
|
|
|
10,310
|
Impairment of
goodwill and other
intangible assets
|
|
-
|
|
1,612
|
|
-
|
|
|
1,612
|
Operating
loss
|
|
(610)
|
|
(3,184)
|
|
(965)
|
|
|
(4,391)
|
Loss on sale of
property and
equipment
|
|
-
|
|
(1)
|
|
-
|
|
|
(1)
|
Other
income
|
|
2,929
|
|
31
|
|
2,929
|
|
|
31
|
Interest income
(expense)
|
|
15
|
|
(41)
|
|
(7)
|
|
|
(97)
|
Income (loss) before
income taxes
|
|
2,334
|
|
(3,195)
|
|
1,957
|
|
|
(4,458)
|
Income tax
benefit
|
|
(89)
|
|
(814)
|
|
(159)
|
|
|
(1,319)
|
Net income
(loss)
|
$
|
2,423
|
|
$
|
(2,381)
|
|
$
|
2,116
|
|
$
|
(3,139)
|
P&F INDUSTRIES
INC. AND SUBSIDIARIES
|
|
EARNINGS PER SHARE
(UNAUDITED)
|
|
|
|
|
Three months ended
June 30,
|
|
|
Six months ended
June 30,
|
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
Basic earnings (loss)
per
share
|
|
$
|
0.76
|
|
|
$
|
(0.76)
|
|
|
$
|
0.67
|
|
|
$
|
(1.00)
|
|
Diluted earnings
(loss) per
share
|
|
$
|
0.76
|
|
|
$
|
(0.76)
|
|
|
$
|
0.66
|
|
|
$
|
(1.00)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
P&F
INDUSTRIES, INC. AND SUBSIDIARIES
|
|
Six
months
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS (unaudited)
|
|
ended June
30,
|
|
(In Thousands
$)
|
|
2021
|
|
|
2020
|
|
Cash Flows from
Operating Activities:
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
2,116
|
|
|
$
|
(3,139)
|
|
|
|
|
|
|
|
|
|
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash and other
charges:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
902
|
|
|
|
881
|
|
Amortization of other
intangible assets
|
|
|
316
|
|
|
|
386
|
|
Rent expense from
leased obligations
|
|
|
449
|
|
|
|
452
|
|
Amortization of debt
issue costs
|
|
|
8
|
|
|
|
8
|
|
Amortization of
consideration payable to a customer
|
|
|
135
|
|
|
|
135
|
|
Provision for losses
on (recovery of) accounts receivable
|
|
|
59
|
|
|
|
(7)
|
|
Stock-based
compensation
|
|
|
3
|
|
|
|
29
|
|
Restricted
stock-based compensation
|
|
|
27
|
|
|
|
25
|
|
Forgiveness of PPP
loan
|
|
|
(2,929)
|
|
|
|
—
|
|
Deferred income
taxes
|
|
|
(159)
|
|
|
|
(656)
|
|
Loss on sale of fixed
assets
|
|
|
7
|
|
|
|
1
|
|
Forgiveness of
grant obligation
|
|
|
—
|
|
|
|
(31)
|
|
Impairment of
goodwill and other intangible assets
|
|
|
—
|
|
|
|
1,612
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
(750)
|
|
|
|
1,882
|
|
Inventories
|
|
|
(895)
|
|
|
|
1,206
|
|
Prepaid expenses and
other current assets
|
|
|
414
|
|
|
|
(732)
|
|
Accounts
payable
|
|
|
1,482
|
|
|
|
1,332
|
|
Accrued compensation
and benefits
|
|
|
718
|
|
|
|
(1,215)
|
|
Accrued other
liabilities and other current liabilities
|
|
|
(64)
|
|
|
|
(477)
|
|
Payments on lease
liabilities
|
|
|
(443)
|
|
|
|
(482)
|
|
Other
liabilities
|
|
|
(28)
|
|
|
|
6
|
|
Total
adjustments
|
|
|
(748)
|
|
|
|
4,355
|
|
Net cash provided by
operating activities
|
|
|
1,368
|
|
|
|
1,216
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
$
|
(247)
|
|
|
$
|
(915)
|
|
Proceeds from disposal
of property and equipment
|
|
|
—
|
|
|
|
1
|
|
Net cash used in
investing activities
|
|
|
(247)
|
|
|
|
(914)
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
|
|
|
|
Dividend
payments
|
|
|
—
|
|
|
|
(157)
|
|
Proceeds from exercise
of stock options
|
|
|
—
|
|
|
|
3
|
|
Net payments relating
to short-term borrowings
|
|
|
(1,004)
|
|
|
|
(3,074)
|
|
Proceeds from PPP
loan
|
|
|
—
|
|
|
|
2,929
|
|
Net cash used in
financing activities
|
|
|
(1,004)
|
|
|
|
(299)
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash
|
|
|
(4)
|
|
|
|
(15)
|
|
Net increase
(decrease) in cash
|
|
|
113
|
|
|
|
(12)
|
|
Cash at beginning of
period
|
|
|
904
|
|
|
|
380
|
|
Cash at end of
period
|
|
$
|
1,017
|
|
|
$
|
368
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosures of cash flow information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid
for:
|
|
|
|
|
|
|
Interest
|
|
$
|
19
|
|
|
$
|
97
|
|
Taxes
|
|
$
|
12
|
|
|
|
—
|
|
Cash paid for amounts
included in the measurement of operating lease
liabilities
|
|
$
|
6
|
|
|
$
|
5
|
|
|
|
|
|
|
|
|
|
Noncash
information:
|
|
|
|
|
|
|
|
Right of Use ("ROU")
assets recognized for new operating lease liabilities
|
|
$
|
53
|
|
|
$
|
140
|
|
|
|
|
|
|
|
|
|
|
P & F
INDUSTRIES, INC. AND SUBSIDIARIES
|
NON-GAAP FINANCIAL
MEASURE AND RECONCILIATION
|
|
COMPUTATION OF (EBITDA) - EARNINGS
BEFORE INTEREST, TAXES, DEPRECIATION, AND
AMORTIZATION
|
(UNAUDITED)
|
|
|
|
(In Thousands
$)
|
|
For the
three-month periods ended
June 30,
|
For the six-month
periods ended
June
30,
|
|
|
|
2021
|
|
|
|
2020
|
|
|
|
2021
|
|
|
2020
|
|
Net income (loss)
(2)
|
|
$
|
2,423
|
|
|
$
|
(2,381)
|
|
|
$
|
2,116
|
|
$
|
(3,139)
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
608
|
|
|
|
639
|
|
|
|
1,218
|
|
|
1,267
|
|
Interest (income)
expense
|
|
|
(15)
|
|
|
|
41
|
|
|
|
7
|
|
|
97
|
|
Income tax
benefit
|
|
|
(89)
|
|
|
|
(814)
|
|
|
|
(159)
|
|
|
(1,319)
|
|
|
|
|
504
|
|
|
|
(134)
|
|
|
|
1,066
|
|
|
45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA (1)
|
|
$
|
2,927
|
|
|
$
|
(2,515)
|
|
|
$
|
(3,182)
|
|
$
|
(3,094)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
The Company discloses
a tabular comparison of EBITDA, which is a non-GAAP measure because
it is instrumental in comparing the results from period to
period. The Company's management believes that the comparison
of EBITDA provides greater insight into the Company's results of
operations for the periods presented. EBITDA should not be
considered in isolation or as a substitute for operating income as
reported on the face of our statement of operations.
|
|
|
|
|
(2)
|
Included in the
three- and six-month Net income for 2021 is the forgiveness of the
$2,929,200 PPP loan.
|
View original
content:https://www.prnewswire.com/news-releases/pf-industries-inc-reports-results-for-the-three-and-six-month-periods-ended-june-30-2021-301353917.html
SOURCE P&F Industries, Inc.