MELVILLE, N.Y., Nov. 11, 2021 /PRNewswire/ -- P&F
Industries, Inc. (NASDAQ: PFIN) today announced its results from
operations for the three and nine-month periods ended September 30, 2021. The Company is reporting net
revenue of $12,985,000, and
$40,520,000, respectively, for the
three and nine-month periods ended September
30, 2021, compared to $12,406,000 and $37,276,000, respectively, for the same periods
in 2020. For the three and nine-month periods ended
September 30, 2021, the Company is
reporting a net loss before income taxes of $841,000, and net income before taxes of
$1,116,000, respectively, compared to
net losses before income taxes of $1,193,000 and $5,651,000, respectively, for the same periods a
year ago. Further, for the three-and nine-month periods ended
September 30, 2021, the Company is
reporting a net loss after-taxes of $733,000 and net income after taxes of
$1,383,000, respectively, compared to
net losses after-taxes of $857,000
and $3,996,000, respectively, for the
three and nine-month periods ended September
30, 2020. The income before income taxes for the nine-months
ended September 30, 2021, included
the recognition of the forgiveness of a $2,929,200 Paycheck Protection Program loan. The
Company's basic and diluted loss per share for the three-month
period ended September 30, 2021, was
$0.23, while its basic earnings per
share for the nine-month period ended September 30, 2021, was $0.44, and diluted earnings per share for the
same period was $0.43. For the three
and nine-month periods ended September 30,
2020, its basic and diluted loss per share were $0.27 and $1.27,
respectively.
Richard Horowitz, the Company's
Chairman of the Board, Chief Executive Officer and President
commented, "COVID-19 continues to impact our businesses; be it as a
limiting factor to our ability to engage with current and future
customers or, what we believe is a primary cause for the
supply-chain crisis. That said, I am pleased to report that
consolidated revenue increased by 4.7% this quarter, compared to
the same three-month period in 2020, which was driven primarily by
a 91.3% increase in Hy-Tech's OEM line with revenue increasing
$796,000. Overall, for the third
quarter of 2021, Hy-Tech's revenue increased by $653,000, or 24.7% over the same period in 2020.
Although we were beginning to see improved sales opportunities
during the third quarter compared to the same three-month period a
year ago, we also began to encounter strong headwinds within our
supply-chains. Specifically, a significant portion of
Asian-sourced items, which are marketed to our retail and
automotive sectors have and continue to be adversely affected by
the massive congestion at ports of entry. We believe these delays
were a major cause of the decline in revenue in both sectors.
We are attempting to mitigate this issue by placing larger than
normal purchase orders with our overseas vendors and believe the
arrival of these orders in early 2022 should help to reduce
inventory shortages in 2022. During the third quarter of
2021, Aircat sales relative to the same period in 2020 decreased by
$362,000. This was primarily
caused by two factors. First, pent up demand for our products
that were not generally available through our largest on-line
channel during the second quarter of 2020 caused a surge in orders
during the third quarter of 2020, which did not repeat in
2021. Second, during the third quarter of 2021, Aircat made a
change to its channel distribution strategy which caused a
temporary pause in shipments to the channel as customer inventory
levels were adjusted. We expect shipments to resume to prior levels
in the fourth quarter of 2021. Further, we are glad to
report that we are seeing a positive rebound in the aerospace
market. As a result, our Aerospace revenue increased 44.5%, when
compared to the third quarter of 2020.
Consolidated gross margin for the three-month period ended
September 30, 2021, improved 2.2
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 absorption. Additionally, a
better mix of product at all locations contributed to the stronger
gross margin. However, significant increases in ocean freight costs
during the third quarter partially offset these improvements. We
have raised our selling prices on most of our products to
levels which we believe substantially offset these increased
freight costs.
Mr. Horowitz concluded, "We are encouraged by the improved
results over the prior year and remain optimistic for the future.
However, for now, the global COVID-19 pandemic and its peripheral
negative effects remains an issue. We intend to do our utmost to
continue to serve our customers, while ensuring the health and
safety of our employees."
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 nine-month
2021 results. Additionally, we believe the supply-chain
crisis, which we believe is related to the pandemic. Beginning in
early 2021, but magnifying during the third quarter of 2021, we
encountered severe shipping / receiving delays of inventory /
containers from our Asian suppliers, 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 the above issues subside, our business will likely
continue to 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. 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, as well as the lack of
certification by China. 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. In spite of the return of crude oil prices to
pre-pandemic levels, we believe many oil drilling companies have
forgone the typical maintenance that would utilize our tools in
order to continue cash-flow generating production activities in
lieu of shutting down for required maintenance. We cannot say for
certain when the typical maintenance activity will resume.
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 MATTER
In May 2021, Florida Pneumatic
detected a ransomware attack on its information technology systems
that caused data to be encrypted. At the present time, all critical
Florida Pneumatic information technology systems have been
remediated and 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.
REVENUE
During the three and nine-month period ended September 30, 2021, various product lines were
affected to some degree by the global COVID-19 pandemic, which
caused orders and revenue for those product lines for the same
periods, to be less than pre-pandemic levels.
The tables below provide an analysis of our net revenue for the
three and nine-month periods ended September
30, 2021, and 2020:
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended September
30,
|
|
|
|
|
|
|
|
Increase (decrease)
|
|
|
|
2021
|
|
2020
|
|
$
|
|
%
|
|
Florida
Pneumatic
|
|
$
|
9,607,000
|
|
$
|
9,681,000
|
|
$
|
(74,000)
|
|
(0.8)
|
%
|
Hy-Tech
|
|
|
3,378,000
|
|
|
2,725,000
|
|
|
653,000
|
|
24.0
|
|
Consolidated
|
|
$
|
12,985,000
|
|
$
|
12,406,000
|
|
$
|
579,000
|
|
4.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended September 30,
|
|
|
|
|
|
|
|
Increase (decrease)
|
|
|
|
2021
|
|
2020
|
|
$
|
|
%
|
|
Florida
Pneumatic
|
|
$
|
31,221,000
|
|
$
|
28,351,000
|
|
$
|
2,870,000
|
|
10.1
|
%
|
Hy-Tech
|
|
|
9,299,000
|
|
|
8,925,000
|
|
|
374,000
|
|
4.2
|
|
Consolidated
|
|
$
|
40,520,000
|
|
$
|
37,276,000
|
|
$
|
3,244,000
|
|
8.7
|
%
|
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 September 30,
|
|
|
|
2021
|
|
2020
|
|
Increase (decrease)
|
|
|
|
|
|
|
Percent of
|
|
|
|
Percent of
|
|
|
|
|
|
|
|
Revenue
|
|
revenue
|
|
Revenue
|
|
revenue
|
|
$
|
|
%
|
|
Automotive
|
|
$
|
3,168,000
|
|
33.0
|
%
|
$
|
3,530,000
|
|
36.5
|
%
|
$
|
(362,000)
|
|
(10.3)
|
%
|
Retail
|
|
|
3,222,000
|
|
33.5
|
|
|
3,718,000
|
|
38.4
|
|
|
(496,000)
|
|
(13.3)
|
|
Industrial
|
|
|
1,257,000
|
|
13.1
|
|
|
1,044,000
|
|
10.8
|
|
|
213,000
|
|
20.4
|
|
Aerospace
|
|
|
1,832,000
|
|
19.1
|
|
|
1,268,000
|
|
13.1
|
|
|
564,000
|
|
44.5
|
|
Other
|
|
|
128,000
|
|
1.3
|
|
|
121,000
|
|
1.2
|
|
|
7,000
|
|
5.8
|
|
Total
|
|
$
|
9,607,000
|
|
100.0
|
%
|
$
|
9,681,000
|
|
100.0
|
%
|
$
|
(74,000)
|
|
(0.8)
|
%
|
For most of the third quarter of 2021, much of U.S. and global
economies were still feeling the ill effects of the global COVID-19
pandemic. Further, the negative impact of the world-wide
supply-chain crisis adversely affected nearly all of Florida
Pneumatic's product lines. Most seriously affected were its Retail
and Automotive inventory levels, which in turn hampered its ability
to fulfill orders in a timely manner. In an effort to combat future
potential shipping issues, Florida Pneumatic has increased its
purchases, which has caused a temporary up-tick in its inventory
levels through at least the first half of 2022. The decrease in
sales in our Automotive sector is primarily due to a one-time
reduction in the amount of inventory held by the distribution
channel. Florida Pneumatic's third quarter 2021 Industrial revenue
improved 20.4 percent over the same period a year ago. This
increase, we believe is due in part to a continuation of the
recovery than began during the second quarter occurring in certain
sectors from the ill effects of the pandemic. Most of the
Aerospace revenue is attributable to Jiffy Air Tool. The Boeing
Corporation is a major customer of Jiffy. The Boeing 737 MAX
aircraft had been grounded by the FAA and the EASA in March 2019. Earlier this year both agencies
lifted the "No Fly" ruling it imposed on all Boeing 737 MAX
aircraft, allowing it to begin flights in the United States, and Europe. As a result, order activity began to
improve, which was a primary factor for the improvement in
Aerospace revenue when comparing the third quarters of 2021 and
2020. However, it is uncertain how long, if ever, it will take 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. Lastly, orders from other aerospace companies and military
aircraft manufacturers improved slightly this quarter.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended September 30,
|
|
|
|
2021
|
|
2020
|
|
Increase (decrease)
|
|
|
|
|
|
|
Percent of
|
|
|
|
Percent of
|
|
|
|
|
|
|
|
Revenue
|
|
revenue
|
|
Revenue
|
|
revenue
|
|
$
|
|
%
|
|
Automotive
|
|
$
|
11,053,000
|
|
35.4
|
%
|
$
|
9,690,000
|
|
34.2
|
%
|
$
|
1,363,000
|
|
14.1
|
%
|
Retail
|
|
|
10,775,000
|
|
34.5
|
|
|
9,569,000
|
|
33.8
|
|
|
1,206,000
|
|
12.6
|
|
Industrial
|
|
|
3,919,000
|
|
12.6
|
|
|
2,383,000
|
|
8.4
|
|
|
1,536,000
|
|
64.5
|
|
Aerospace
|
|
|
5,094,000
|
|
16.3
|
|
|
6,341,000
|
|
22.4
|
|
|
(1,247,000)
|
|
(19.7)
|
|
Other
|
|
|
380,000
|
|
1.2
|
|
|
368,000
|
|
1.2
|
|
|
12,000
|
|
3.3
|
|
Total
|
|
$
|
31,221,000
|
|
100.0
|
%
|
$
|
28,351,000
|
|
100.0
|
%
|
$
|
2,870,000
|
|
10.1
|
%
|
Despite the impact during the third quarter 2021, relating to
the ongoing COVID-19 pandemic and supply chain delays, Florida
Pneumatic's Automotive revenue during the nine-month period ended
September 30, 2021, is more than 14
percent greater than the amount reported during the same period in
2020. This improvement is driven by growing demand for
its AIRCAT line of pneumatic hand tools, plus stronger sales
generated by its UK operations. Additionally, Florida Pneumatic's
Retail revenue improved 12.6 percent during the nine-month period
ended September 30, 2021, compared to
the same period in 2020, driven primarily by demand for spray
gun-type tools and accessories being sold to The Home Depot, which
we believe are being used to apply disinfectant to combat the
COVID-19 virus. Further, its Industrial revenue during the
nine-month period ended September 30,
2021, also encountered growth, which we believe is driven
primarily by certain sectors beginning to recover from the effects
of the pandemic. Partially offsetting the above increases, is
the year-to-date decline in Florida Pneumatic's Aerospace revenue.
Most of the Aerospace revenue is attributable to Jiffy Air Tool,
whose major customer is the Boeing Corporation. We believe however,
that as both domestic and international travel restrictions ease,
and Boeing and other major aircraft manufacturers begin to produce
and deliver new aircraft, we could see a continuation of the
improvement we witnessed in the third quarter of this year.
However, no assurance can be made, and it is possible that this
sector will remain depressed for the foreseeable future.
Hy-Tech
Hy-Tech designs, manufactures, and sells a wide range of
industrial products 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 September 30,
|
|
|
|
2021
|
|
2020
|
|
Increase (decrease)
|
|
|
|
|
|
|
Percent of
|
|
|
|
|
Percent of
|
|
|
|
|
|
|
|
|
Revenue
|
|
revenue
|
|
Revenue
|
|
revenue
|
|
$
|
|
%
|
|
OEM
|
|
$
|
1,668,000
|
|
49.4
|
%
|
$
|
872,000
|
|
32.0
|
%
|
$
|
796,000
|
|
91.3
|
%
|
ATP
|
|
|
751,000
|
|
22.2
|
|
|
624,000
|
|
22.9
|
|
|
127,000
|
|
20.4
|
|
PTG
|
|
|
882,000
|
|
26.1
|
|
|
1,027,000
|
|
37.7
|
|
|
(145,000)
|
|
(14.1)
|
|
Other
|
|
|
77,000
|
|
2.3
|
|
|
202,000
|
|
7.4
|
|
|
(125,000)
|
|
(61.9)
|
|
Total
|
|
$
|
3,378,000
|
|
100.0
|
%
|
$
|
2,725,000
|
|
100.0
|
%
|
$
|
653,000
|
|
24.0
|
%
|
During the third quarter of 2021, Hy-Tech continued to encounter
modest signs that the ill effects of the pandemic were beginning to
ease. As a result, its total revenue for the three-month period
ended September 30, 2021, increased
24 percent, over the same period a year ago. Customer orders
for its OEM and ATP product lines improved when compared to the
same three-month period a year ago, driving revenue growth of 91.3
percent and 20.4 percent, respectively. Significant orders from two
of its major OEM customers, along with its Engineered Solutions
approach, which continues to gain market momentum, provided the
impetus for the current quarter growth in OEM. Its ATP
revenue improvement and an 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 third quarter 2021
were 496, compared to 254 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 the marketing of its Magnum Force line of large
impact wrenches. Hy-Tech believes that the Magnum Force
line, a 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
beginning to gain acceptance. The above increases were offset by a
quarter over quarter decline in its PTG revenue. PTG continues to
encounter delays and disruptions in its outside third-party
processors, creating delays in its delivery time to its
customers. Additionally, PTG continues to encounter
reluctance to permit face to face visitation, which we believe is
critical to completing the sale of PTG products and services, by
its current and prospective customers. The decline in
Hy-Tech's Other revenue was due to a large order for its Thaxton
products shipping during the third quarter in 2020, with no similar
order this quarter.
|
|
Nine months ended September 30,
|
|
|
|
2021
|
|
2020
|
|
Increase (decrease)
|
|
|
|
|
|
|
Percent of
|
|
|
|
|
Percent of
|
|
|
|
|
|
|
|
|
Revenue
|
|
revenue
|
|
Revenue
|
|
revenue
|
|
$
|
|
%
|
|
OEM
|
|
$
|
4,688,000
|
|
50.4
|
%
|
$
|
3,513,000
|
|
39.4
|
%
|
|
1,175,000
|
|
33.4
|
%
|
ATP
|
|
|
2,242,000
|
|
24.1
|
|
|
2,254,000
|
|
25.2
|
|
|
(12,000)
|
|
(0.5)
|
|
PTG
|
|
|
2,132,000
|
|
22.9
|
|
|
2,783,000
|
|
31.2
|
|
|
(651,000)
|
|
(23.4)
|
|
Other
|
|
|
237,000
|
|
2.6
|
|
|
375,000
|
|
4.2
|
|
|
(138,000)
|
|
(36.8)
|
|
Total
|
|
$
|
9,299,000
|
|
100.0
|
%
|
$
|
8,925,000
|
|
100.0
|
%
|
|
374,000
|
|
4.2
|
%
|
Hy-Tech's year-to-date revenue improvement over the same
nine-month period in 2020 was driven by continued growth in its OEM
line, which saw a 33.4 percent increase, the majority of which
occurring during the third quarter of 2021. This improvement
was partially offset by 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) delays and
disruptions from outside third-party processors. As discussed
above, 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. PTG's nine-month 2021 revenue
declined due primarily to the factors discussed earlier.
However, as travel restrictions 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 September 30,
|
|
Increase
|
|
|
|
2021
|
|
2020
|
|
Amount
|
|
|
%
|
|
Florida
Pneumatic
|
|
$
|
3,381,000
|
|
$
|
3,291,000
|
|
$
|
90,000
|
|
|
2.7
|
%
|
As percent of
respective revenue
|
|
|
35.2
|
%
|
|
34.0
|
%
|
|
1.2
|
%
|
pts
|
|
|
Hy-Tech
|
|
$
|
593,000
|
|
$
|
232,000
|
|
$
|
361,000
|
|
|
155.6
|
|
As percent of
respective revenue
|
|
|
17.6
|
%
|
|
8.5
|
%
|
|
9.1
|
%
|
pts
|
|
|
Total
|
|
$
|
3,974,000
|
|
$
|
3,523,000
|
|
$
|
451,000
|
|
|
12.8
|
%
|
As percent of
respective revenue
|
|
|
30.6
|
%
|
|
28.4
|
%
|
|
2.2
|
%
|
pts
|
|
|
The improvement in Florida Pneumatic's gross margin was due
primarily to product mix. Specifically, the increase in Industrial
and Aerospace revenue, both of which generally have stronger gross
margin than Florida Pneumatic's other product lines, contributed to
the increase in gross margin. Additionally, stronger overhead
absorption at Jiffy this quarter, compared to the same three-month
period a year ago contributed to the improved gross margin.
However, increased freight costs partially offset the improvement.
Florida Pneumatic's ocean freight costs have increased
approximately four-fold when compared to a year ago. We are
attempting to pass through a portion of these increases; however,
we may not be able to fully neutralize the negative effects. The
improvement in Hy-Tech's gross margin is due primarily to its
overall product/customer mix. Additionally, there was a slight
improvement in its manufacturing overhead absorption this quarter,
when compared to the same three-month period in 2020, further
contributing to its improved gross margin.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended September 30,
|
|
Increase
|
|
|
|
2021
|
|
2020
|
|
Amount
|
|
|
%
|
|
Florida
Pneumatic
|
|
$
|
11,746,000
|
|
$
|
10,274,000
|
|
$
|
1,472,000
|
|
|
14.3
|
%
|
As percent of
respective revenue
|
|
|
37.6
|
%
|
|
36.2
|
%
|
|
1.4
|
%
|
pts
|
|
|
Hy-Tech
|
|
$
|
1,712,000
|
|
$
|
779,000
|
|
$
|
933,000
|
|
|
119.8
|
|
As percent of
respective revenue
|
|
|
18.4
|
%
|
|
8.7
|
%
|
|
9.7
|
%
|
pts
|
|
|
Total
|
|
$
|
13,458,000
|
|
$
|
11,053,000
|
|
$
|
2,405,000
|
|
|
21.8
|
%
|
As percent of
respective revenue
|
|
|
33.2
|
%
|
|
29.7
|
%
|
|
3.5
|
%
|
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 revenue contributed to
the higher gross margin this quarter, compared to the same
nine-month period in 2020. This improvement was partially offset by
the significant increases in its ocean freight costs that have been
incurred for most of 2021. Additionally, in early 2021, Jiffy was
under absorbing its manufacturing overhead, due to the reduction of
product being produced. However, with increased production during
the third quarter of 2021 this under absorption issue has been
reduced. Hy-Tech's manufactures most of its products. Its
gross margin is impacted by customer/product mix.
Factors such as absorption of manufacturing overhead, raw material
pricing and third-party costs also affect its gross margin.
Hy-Tech's gross margin for the nine months ended September 30, 2021, improved 9.7 percentage
points, when comparing the three-month periods ended September 30, 2021, and 2020. During the
nine-month period ended September 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 nine months ended
September 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 third quarter of 2021, our SG&A were $4,734,000, compared to $4,673,000 incurred during the same three-month
period in 2020. The most significant factors contributing to the
net increase were: i) Compensation expenses increased $74,000. Compensation expense is comprised of
base salaries and wages, accrued performance-based bonus incentives
and associated payroll taxes and employee benefits; ii) information
systems-related expenses increased $35,000, driven by increased cyber security
costs, and iii) a decline of $31,000
in professional fees and expenses.
Our SG&A expenses for the nine-month period ended
September 30, 2021, were $15,183,000, compared to $14,983,000, during the same nine-month period in
2020. There were significant factors which contributed to the net
change. First, driven by an increase of more than $3,200,000 in revenue, our variable expenses
increased $487,000. Variable expenses
include among other items, commissions, freight out, travel,
advertising, shipping supplies and warranty costs. Additionally, we
incurred approximately $318,000 in
additional information systems costs during the nine-month period
ended September 30, 2021, which
related to the May 2021 ransomware
attack at our Florida Pneumatic subsidiary. Further, compensation
expenses increased $72,000. Partially
offsetting the above increases was a decline in professional fees
of $576,000, most of which was driven
by expenses in 2020 related to the relocation and set up of the two
gear businesses that were acquired in late 2019, none of the
relocation expenses repeated in 2021. Lastly, when comparing the
nine-month periods ended September 30,
2021, and 2020, depreciation and amortization expenses
declined $75,000, corporate expenses
and stock-based compensation declined $30,000 and $19,000, respectively.
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.
31
INTEREST
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended September
30,
|
|
Decrease
|
|
|
|
2021
|
|
2020
|
|
Amount
|
|
%
|
|
Interest expense
attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
borrowings
|
|
$
|
10,000
|
|
$
|
12,000
|
|
$
|
(2,000)
|
|
(16.7)
|
%
|
PPP loan
|
|
|
—
|
|
|
5,000
|
|
|
(5,000)
|
|
(100.0)
|
|
Amortization expense of
debt issue costs
|
|
|
4,000
|
|
|
4,000
|
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
14,000
|
|
$
|
21,000
|
|
$
|
(7,000)
|
|
(33.3)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended September
30,
|
|
Decrease
|
|
|
|
2021
|
|
2020
|
|
Amount
|
|
%
|
|
Interest expense
attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
borrowings
|
|
$
|
28,000
|
|
$
|
95,000
|
|
$
|
(67,000)
|
|
(70.5)
|
%
|
PPP loan
|
|
|
(19,000)
|
|
|
11,000
|
|
|
(30,000)
|
|
(272.7)
|
|
Amortization expense of
debt issue costs
|
|
|
12,000
|
|
|
12,000
|
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
21,000
|
|
$
|
118,000
|
|
$
|
(97,000)
|
|
(82.2)
|
%
|
The Applicable Margin, as defined in our Credit Agreement was
the same during the three-month periods ended September 30, 2021, and 2020. The average balance
of short-term borrowings during the three-month periods ended
September 30, 2021, and 2020, were
$2,050,000 and $2,260,000, respectively.
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. The 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,
during the three-month period ended June 30,
2021, 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 rates for the three-month
and nine-month periods ended September 30,
2021, were a tax benefit of 12.8% and 23.9%, compared to a
tax benefit of 28.2% and 29.3% 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 nine-month period ended September 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 27, 2020, the CARES Act
was signed into law. The CARES Act, among other things, 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. On March 11,
2021, the American Rescue Plan Act of 2021 (the "ARP") was
signed into law to provide relief as a result of the COVID-19
pandemic. The ARP, among other things, extended and modified the
employee retention credit. As of September
30, 2021, the Company is evaluating the impact of the ARP on
the Company's effective tax rate.
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:
|
|
|
|
|
|
|
|
|
September
30, 2021
|
|
December 31, 2020
|
Working
capital
|
|
$
|
23,200,000
|
|
$
|
21,258,000
|
Current
ratio
|
|
|
3.26 to 1
|
|
|
3.57 to 1
|
Shareholders'
equity
|
|
$
|
42,918,000
|
|
$
|
41,538,000
|
Credit facility
Our Credit Facility will be discussed in the Notes to the
consolidated financial statements.
Cash flows
During the nine-month period ended September 30, 2021, our net cash decreased to
$789,000 from $904,000 on December 31,
2020. Our total bank debt at September 30, 2021, was $3,295,000 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 September 30, 2021,
was 7.1% compared to 9.4% at December 31,
2020.
At September 30, 2021, our
short-term or Revolver borrowing was $3,295,000 compared to $1,374,000, at December
31, 2020. Additionally, at September
30, 2021, and December 31,
2020, there was approximately $12,700,000 and $11,971,000, respectively, available to us under
the Revolver arrangement.
During the nine-month period ended September 30, 2021, we used $428,000 for capital expenditures, compared to
$956,000 during the same period in
the prior year. Capital expenditures for the balance of 2021 is
expected to be approximately $381,000, 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 facility upgrades.
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 third quarter 2021 results and
financial condition. Investors and other interested parties
who wish to listen to or participate can dial 1-866-337-5532. 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 November 12, 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.
P & F
INDUSTRIES, INC. AND UBSIDIARIES
|
|
|
|
|
|
CONSOLIDATED BALANCE
SHEETS
|
|
|
|
|
|
(In Thousands
$)
|
September 30,
2021
|
December 31,
2020
|
|
(Unaudited)
|
(Audited)
|
Assets
|
|
|
Cash
|
|
$
|
789
|
|
|
$
|
904
|
|
Accounts receivable -
net
|
|
|
8,448
|
|
|
|
7,468
|
|
Inventories
|
|
|
21,623
|
|
|
|
18,362
|
|
Prepaid expenses and
other current assets
|
|
|
2,608
|
|
|
|
2,806
|
|
|
|
|
|
|
|
|
|
|
Total current
assets
|
|
|
33,468
|
|
|
|
29,540
|
|
|
|
|
|
|
|
|
|
|
Net property and
equipment
|
|
|
8,279
|
|
|
|
9,395
|
|
Goodwill
|
|
|
4,446
|
|
|
|
4,449
|
|
Other intangible assets
- net
|
|
|
5,749
|
|
|
|
6,226
|
|
Deferred income taxes -
net
|
|
|
496
|
|
|
|
226
|
|
Right-of-use assets –
operating leases
|
|
|
3,031
|
|
|
|
3,281
|
|
Other assets –
net
|
|
|
80
|
|
|
|
250
|
|
Total
assets
|
|
$
|
55,549
|
|
|
$
|
53,367
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
|
|
Short-term
borrowings
|
|
$
|
3,295
|
|
|
$
|
1,374
|
|
Accounts
payable
|
|
|
3,598
|
|
|
|
2,199
|
|
Accrued compensation
and benefits
|
|
|
1,231
|
|
|
|
525
|
|
Accrued other
liabilities
|
|
|
1,328
|
|
|
|
1,354
|
|
Current leased
liabilities – operating leases
|
|
|
816
|
|
|
|
847
|
|
Current maturities of
long-term debt (PPP loan)
|
|
|
---
|
|
|
|
1,983
|
|
|
|
|
|
|
|
|
|
|
Total current
liabilities
|
|
|
10,268
|
|
|
|
8,282
|
|
|
|
|
|
|
|
|
|
|
Noncurrent leased
liabilities – operating leases
|
|
|
2,261
|
|
|
|
2,474
|
|
Long-term debt, less
current maturities (PPP loan)
|
|
|
---
|
|
|
|
946
|
|
Other
liabilities
|
|
|
102
|
|
|
|
127
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
12,631
|
|
|
|
11,829
|
|
|
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
|
|
42,918
|
|
|
|
41,538
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
and shareholders' equity
|
|
$
|
55,549
|
|
|
$
|
53,367
|
|
|
|
|
|
|
|
|
|
|
P & F
INDUSTRIES, INC. AND SUBSIDIARIES
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS (Unaudited)
|
|
|
|
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
(In Thousand
$)
|
2021
|
2020
|
2021
|
2020
|
|
|
|
|
|
Net revenue
|
$
|
12,985
|
$
|
12,406
|
$
|
40,520
|
$
|
37,276
|
Cost of
sales
|
9,011
|
8,883
|
27,062
|
26,223
|
Gross profit
|
3,974
|
3,523
|
13,458
|
11,053
|
Selling, general and
administrative expenses
|
4,734
|
4,673
|
15,183
|
14,983
|
Impairment of goodwill
and other intangible assets
|
---
|
---
|
---
|
1,612
|
Operating
loss
|
(760)
|
(1,150)
|
(1,725)
|
(5,542)
|
Loss on sale of
property and equipment
|
(67)
|
(22)
|
(67)
|
(22)
|
Other income
|
---
|
---
|
2,929
|
31
|
Interest
expense
|
(14)
|
(21)
|
(21)
|
(118)
|
(Loss) income before
income taxes
|
(841)
|
(1,193)
|
1,116
|
(5,651)
|
Income tax
benefit
|
(108)
|
(336)
|
(267)
|
(1,655)
|
Net (loss)
income
|
$
|
(733)
|
$
|
(857)
|
$
|
1,383
|
$
|
(3,996)
|
P&F INDUSTRIES
INC. AND SUBSIDIARIES
|
|
(LOSS) EARNINGS PER
SHARE (UNAUDITED)
|
|
|
|
|
Three months
ended
September 30,
|
|
Nine months
ended
September 30,
|
|
|
|
2021
|
|
|
|
2020
|
|
|
|
2021
|
|
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic (loss) earnings
per share
|
|
$
|
(0.23)
|
|
|
$
|
(0.27)
|
|
|
$
|
0.44
|
|
|
$
|
(1.27)
|
|
Diluted (loss) earnings
per share
|
|
$
|
(0.23)
|
|
|
$
|
(0.27)
|
|
|
$
|
0.43
|
|
|
$
|
(1.27)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
P&F
INDUSTRIES, INC. AND SUBSIDIARIES
|
|
Nine
months
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS (unaudited)
|
|
ended September
30,
|
|
(In Thousands
$)
|
|
2021
|
|
|
2020
|
|
Cash Flows from
Operating Activities:
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
1,383
|
|
|
$
|
(3,996)
|
|
|
|
|
|
|
|
|
|
|
Adjustments to
reconcile net income (loss) to net cash (used in) provided by
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash and other
charges:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
1,345
|
|
|
|
1,339
|
|
Amortization of other
intangible assets
|
|
|
474
|
|
|
|
544
|
|
Amortization of
operating lease assets
|
|
|
670
|
|
|
|
675
|
|
Amortization of debt
issue costs
|
|
|
12
|
|
|
|
12
|
|
Amortization of
consideration payable to a customer
|
|
|
202
|
|
|
|
202
|
|
Provision for losses on
accounts receivable
|
|
|
19
|
|
|
|
47
|
|
Stock-based
compensation
|
|
|
4
|
|
|
|
39
|
|
Restricted stock-based
compensation
|
|
|
35
|
|
|
|
33
|
|
Forgiveness of PPP
loan
|
|
|
(2,929)
|
|
|
|
---
|
|
Deferred income
taxes
|
|
|
(267)
|
|
|
|
(771)
|
|
Loss on sale of fixed
assets
|
|
|
33
|
|
|
|
22
|
|
Fair value
adjustment to assets held for sale
|
|
|
40
|
|
|
|
---
|
|
Gain on lease
obligation settlement
|
|
|
---
|
|
|
|
(31)
|
|
Impairment of
goodwill and other intangible assets
|
|
|
---
|
|
|
|
1,612
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
(1,007)
|
|
|
|
712
|
|
Inventories
|
|
|
(3,274)
|
|
|
|
3,384
|
|
Prepaid expenses and
other current assets
|
|
|
248
|
|
|
|
(341)
|
|
Other assets
|
|
|
---
|
|
|
|
(32)
|
|
Accounts
payable
|
|
|
1,406
|
|
|
|
708
|
|
Accrued compensation
and benefits
|
|
|
711
|
|
|
|
(1,190)
|
|
Accrued other
liabilities and other current liabilities
|
|
|
(14)
|
|
|
|
(239)
|
|
Payments on lease
liabilities
|
|
|
(665)
|
|
|
|
(702)
|
|
Other
liabilities
|
|
|
(36)
|
|
|
|
(2)
|
|
Total
adjustments
|
|
|
(2,993)
|
|
|
|
6,021
|
|
Net cash (used in)
provided by operating activities
|
|
|
(1,610)
|
|
|
|
2,025
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
$
|
(428)
|
|
|
$
|
(956)
|
|
Proceeds from disposal
of property and equipment
|
|
|
28
|
|
|
|
1
|
|
Net cash used in
investing activities
|
|
|
(400)
|
|
|
|
(955)
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
|
|
|
|
Dividend
payments
|
|
|
—
|
|
|
|
(157)
|
|
Proceeds from exercise
of stock options
|
|
|
—
|
|
|
|
3
|
|
Net proceeds
(repayments) relating to short-term borrowings
|
|
|
1,921
|
|
|
|
(3,314)
|
|
Proceeds from PPP
loan
|
|
|
—
|
|
|
|
2,929
|
|
Net cash provided by
(used in) financing activities
|
|
|
1,921
|
|
|
|
(539)
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate
changes on cash
|
|
|
(26)
|
|
|
|
(3)
|
|
Net (decrease) increase
in cash
|
|
|
(115)
|
|
|
|
528
|
|
Cash at beginning of
period
|
|
|
904
|
|
|
|
380
|
|
Cash at end of
period
|
|
$
|
789
|
|
|
$
|
908
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
P&F
INDUSTRIES, INC. AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS (unaudited)
(continued)
|
|
|
|
|
|
|
|
|
(In Thousands
$)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosures of cash flow information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid
for:
|
|
|
|
|
|
Interest
|
|
$
|
25
|
|
|
$
|
109
|
|
Taxes
|
|
$
|
12
|
|
|
|
26
|
|
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
|
|
$
|
320
|
|
|
$
|
140
|
|
|
|
|
|
|
|
|
|
|
P & F
INDUSTRIES, INC. AND SUBSIDIARIES
|
NON-GAAP FINANCIAL
MEASURE AND RECONCILIATION
|
|
COMPUTATION OF (EBITDIA) - EARNINGS
BEFORE INTEREST, TAXES, DEPRECIATION, IMPAIRMENT, AND
AMORIZATION
|
(UNAUDITED)
|
|
|
|
(In Thousands
$)
|
|
For the three-month
periods ended September 30,
|
For the nine-month
periods ended September
30,
|
|
|
|
2021
|
|
|
|
2020
|
|
|
|
2021
|
|
|
2020
|
|
Net (loss) income
(2)
|
|
$
|
(733)
|
|
|
$
|
(857)
|
|
|
$
|
1,383
|
|
$
|
(3,996)
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
601
|
|
|
|
616
|
|
|
|
1,819
|
|
|
1,883
|
|
Interest
expense
|
|
|
14
|
|
|
|
21
|
|
|
|
21
|
|
|
118
|
|
Impairment
|
|
|
---
|
|
|
|
---
|
|
|
|
---
|
|
|
1,612
|
|
Income tax
benefit
|
|
|
(108)
|
|
|
|
(336)
|
|
|
|
(267)
|
|
|
(1,655)
|
|
|
|
|
507
|
|
|
|
301
|
|
|
|
1,573
|
|
|
1,958
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA (1)
|
|
$
|
(226)
|
|
|
$
|
(556)
|
|
|
$
|
2,956
|
|
$
|
(2,038)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
The Company discloses
a tabular comparison of EBITDIA, 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 EBITDIA provides greater insight into the Company's results of
operations for the periods presented. EBITDIA 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
nine-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-nine-month-periods-ended-september-30-2021-301421760.html
SOURCE P&F Industries, Inc.