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Tandy Leather Factory (TLFA)

Tandy Leather Factory, Inc. is an American specialty retailer and wholesale distributor of leather and leather related products. It operates in three divisions: wholesale leathercraft, retail leathercraft and international leathercraft. Originally part of the Tandy Corporation, Tandy Leather has gone through a series of acquisitions and mergers, eventually being sold to The Leather Factory in 2000. Tandy Leather Factory had over 100 stores worldwide. The Tandy Leather headquarters in Fort Worth, Texas also houses the Al and Ann Stohlman Museum. Tandy Leather began as a family-owned leather goods company based in Fort Worth, Texas in 1919. Norton Hinckley and Dave L. Tandy partnered to start the Hinckley-Tandy Leather Company and concentrated their efforts on selling sole leather and other supplies to shoe repair dealers in Texas. During World War II, civilian leather rationing prompted the company to move towards leatherworking as a hobby, which gave the company supply priority by providing for the armed forces.

Company profile

Ticker
TLFA
Exchange
CEO
Jon Thompson
Employees
Incorporated
Location
Fiscal year end
Former names
LEATHER FACTORY INC
SEC CIK
Subsidiaries
The Leather Factory, Inc. • The Leather Factory of Nevada Investments, Inc. • The Leather Factory, LP • Hi-Line Leather & Manufacturing Company • Roberts, Cushman & Company, Inc. • The Leather Factory of Canada Ltd. • Tandy Leather Company, Inc. • Tandy Leather Company • Tandy Leather Company, LP • Tandy Leather Factory Australia Pty Ltd ...
IRS number
752543540

TLFA stock data

Calendar

16 May 22
26 Jun 22
31 Dec 22
Quarter (USD) Mar 22 Dec 21 Sep 21 Jun 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21 Dec 20 Dec 19 Dec 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 10.34M 10.34M 10.34M 10.34M 10.34M 10.34M
Cash burn (monthly) (no burn) 35.5K (no burn) (no burn) (no burn) (no burn)
Cash used (since last report) n/a 102.01K n/a n/a n/a n/a
Cash remaining n/a 10.23M n/a n/a n/a n/a
Runway (months of cash) n/a 288.3 n/a n/a n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
7 Jun 22 Victoria Marie Cantrell RSU Grant Acquire A No No 2800 2,800 7.84M 2,800
7 Jun 22 Pappas James C RSU Grant Acquire A No No 2800 2,800 7.84M 2,800
7 Jun 22 William M Warren RSU Grant Acquire A No No 2800 2,800 7.84M 2,800
7 Jun 22 Sejal Vinu Patel RSU Grant Acquire A No No 2800 2,800 7.84M 2,800
2.7% owned by funds/institutions
13F holders Current Prev Q Change
Total holders 3 2 +50.0%
Opened positions 1 0 NEW
Closed positions 0 0
Increased positions 0 0
Reduced positions 1 0 NEW
13F shares Current Prev Q Change
Total value 372K 79K +370.9%
Total shares 234.61K 155.97K +50.4%
Total puts 0 0
Total calls 0 0
Total put/call ratio
Largest owners Shares Value Change
Central Square Management 140.67K $0 0.0%
Ancora Advisors 84.55K $325K NEW
LSV Asset Management 9.4K $47K -38.6%
Largest transactions Shares Bought/sold Change
Ancora Advisors 84.55K +84.55K NEW
LSV Asset Management 9.4K -5.9K -38.6%
Central Square Management 140.67K 0 0.0%

Financial report summary

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Risks
  • The COVID-19 pandemic has had, and likely may continue to have, a material adverse effect on our business and liquidity.
  • Disruptions in the operation of our Fort Worth distribution center or manufacturing facility due to disease, including COVID-19, natural disaster, fire, or other crises, could have an adverse effect on our ability to supply our retail stores, fulfill web orders and/or manufacture product, resulting in possible decreases in sales and margin.
  • Our continued delisting from the Nasdaq Market or a continued suspension of broker trading of our common stock could reduce liquidity or impair the value of your investment.
  • Material weaknesses in our system of internal controls were identified during our investigation and financial restatement. Some of these material weaknesses are still in the process of remediation. If not remediated, these material weaknesses could result in additional material misstatements in our Consolidated Financial Statements. We may be unable to develop, implement and maintain appropriate controls in future periods.
  • If our cash from operations falls short and we are unable to raise additional working capital, we might be unable to fully fund our operations or to otherwise execute our business plan.
  • Failure to protect the integrity and security of personal information of our customers and employees could result in substantial costs, expose us to litigation and damage our reputation.
  • Unreliable or inefficient information technology or the failure to successfully implement or invest in technology initiatives in the future could adversely impact operating results.
  • Our business may be negatively impacted by general economic conditions in the United States and abroad.
  • Foreign currency fluctuations could adversely impact our financial condition and results of operations.
  • We face risks related to the effect of economic uncertainty.
  • If the United States maintains current tariffs on products manufactured in China, or if additional tariffs or trade restrictions are implemented by other countries or by the U.S., the cost of our products manufactured in China or other countries and imported into the U.S. or other countries could increase. This could in turn adversely affect the profitability for these products and have an adverse effect on our business, financial condition and results of operations.
  • Our success depends on the continued protection of our trademarks and other proprietary intellectual property rights.
  • The successful execution of our multi-year transformation and operational efficiency initiatives is key to the long-term growth of our business.
  • Our business is subject to the risks inherent in global sourcing activities.
  • Increases in the price of leather and other items we sell or a reduction in availability of those products could increase our cost of goods and decrease our profitability.
  • We are subject to risks associated with leasing retail space under long-term and non-cancelable leases. We may be unable to renew leases on acceptable terms. If we close a leased retail space, we might remain obligated under the applicable lease.
  • We may be unable to sustain our financial performance or our past growth, which could have a material adverse effect on our future operating results.
  • Competition, including internet-based competition, could negatively impact our business.
  • Declines in foot traffic in our retail store locations could negatively impact our sales and profits.
  • Our business could be harmed if we are unable to maintain our brand image.
  • Changes in customer demand could materially adversely affect our sales, results of operations and cash flow.
  • Our success depends, in part, on attracting, developing and retaining qualified employees, including key personnel.
Management Discussion
  • Consolidated net sales increased by $18.6 million, or 29.0%, from 2021 to 2020.  This sales growth is a reflection of continued strong demand from customers in all channels of distribution: retail stores, our website and our Commercial Division.  While staffing challenges and sporadic store closures due to COVID-19 limited sales upside in some areas, consumers continued to invest COVID-era stimulus payments in their leatherworking interests, especially in our retail stores.  At the same time, we believe our improved product quality, broader assortment, improved in-store expertise and service, and focused and efficient marketing communications were continuing to work together to drive sales.
  • Our store footprint consisted of 106 stores at both December 31, 2021 and December 31, 2020.
  • Gross profit increased by $10.9 million, or 30.3%, from 2021 to 2020 as a result of higher net sales as well as improved gross margin.  Our gross margin percentage for the year ended December 31, 2021 increased to 56.9%, versus 56.3% in the same period in 2020.  This increase was a result of a combination of factors, including product and customer mix shifts as well as refining the process we use to capitalize cost into our inventory value for freight, warehousing and handling expenditures, updating from a manual, higher-level process to a more automated mechanism using our new ERP system, partially offset by higher costs for warehouse handling and freight costs.

Content analysis

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