/C O R R E C T I O N -- P&F Industries, Inc./
In the news release, P&F INDUSTRIES, INC. REPORTS RESULTS FOR THE THREE AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2022, AND ANNOUNCES SPECIAL DIVIDEND, issued 09-Nov-2022 by P&F Industries, Inc. over PR Newswire, we are advised by the company that in the Statement of Cash Flows table, the value for the change in Operating Lease Liabilities for the nine-month period ended September 30, 2022, was shown as
P&F INDUSTRIES, INC. REPORTS RESULTS FOR THE THREE AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2022, AND ANNOUNCES SPECIAL DIVIDEND
MELVILLE, N.Y., Nov. 9, 2022 /PRNewswire/ -- P&F Industries, Inc. (NASDAQ: PFIN) today announced its results from operations for the three and nine-month periods ended September 30, 2022. The Company is reporting net revenue of
The Company further announced today that its Board of Directors declared a special cash dividend of
Richard Horowitz, the Company's Chairman of the Board, Chief Executive Officer, and President commented, "Although certainly not the quarterly results we strived for, we have been able to improve our after-tax results by almost
Our consolidated third quarter 2022 gross margin improved 2.8 percentage points, when compared to the same period in the prior year, driven primarily by customer and product mix, as well as increases in selling prices. Further, with increased revenue this quarter, our gross profit improved
SG&A, driven primarily by higher revenue and additional costs associated with the Jackson acquisition, increased
We are cautiously optimistic as we look to the future. However, it is difficult to foresee what the impact will be on our businesses from the on-going supply chain difficulties and associated delays, rising inflation, and a possible global recession. Further, COVID-19 does remain an issue, particularly with respect to our Asian suppliers. We intend to do our utmost to continue to serve our customers, while ensuring the health and safety of our employees."
Mr. Horowitz concluded his remarks, "Furthermore, I am pleased to report that our Board of Directors has declared a
The Company will be reporting the following:
REVENUE
The tables below provide an analysis of our net revenue for the three and nine-month periods ended September 30, 2022 and 2021:
Consolidated
Three months ended September 30, | ||||||||||||
Increase | ||||||||||||
2022 | 2021 | $ | % | |||||||||
Florida Pneumatic | $ | 9,906,000 | $ | 9,607,000 | $ | 299,000 | 3.1 | % | ||||
Hy-Tech | 4,610,000 | 3,378,000 | 1,232,000 | 36.5 | ||||||||
Consolidated | $ | 14,516,000 | $ | 12,985,000 | $ | 1,531,000 | 11.8 | % | ||||
Nine months ended September 30, | ||||||||||||
Increase | ||||||||||||
2022 | 2021 | $ | % | |||||||||
Florida Pneumatic | $ | 32,853,000 | $ | 31,221,000 | $ | 1,632,000 | 5.2 | % | ||||
Hy-Tech | 13,494,000 | 9,299,000 | 4,195,000 | 45.1 | ||||||||
Consolidated | $ | 46,347,000 | $ | 40,520,000 | $ | 5,827,000 | 14.4 | % | ||||
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, | ||||||||||||||||
2022 | 2021 | Increase (decrease) | ||||||||||||||
Percent of | Percent of | |||||||||||||||
Revenue | revenue | Revenue | revenue | $ | % | |||||||||||
Automotive | $ | 3,110,000 | 31.4 | % | $ | 3,168,000 | 33.0 | % | $ | (58,000) | (1.8) | % | ||||
Retail | 2,779,000 | 28.0 | 3,222,000 | 33.5 | (443,000) | (13.7) | ||||||||||
Industrial | 1,305,000 | 13.2 | 1,257,000 | 13.1 | 48,000 | 3.8 | ||||||||||
Aerospace | 2,538,000 | 25.6 | 1,832,000 | 19.1 | 706,000 | 38.5 | ||||||||||
Other | 174,000 | 1.8 | 128,000 | 1.3 | 46,000 | 35.9 | ||||||||||
Total | $ | 9,906,000 | 100.0 | % | $ | 9,607,000 | 100.0 | % | $ | 299,000 | 3.1 | % | ||||
Nine months ended September 30, | ||||||||||||||||
2022 | 2021 | Increase (decrease) | ||||||||||||||
Percent of | Percent of | |||||||||||||||
Revenue | revenue | Revenue | revenue | $ | % | |||||||||||
Automotive | $ | 10,845,000 | 33.0 | % | $ | 11,053,000 | 35.4 | % | $ | (208,000) | (1.9) | % | ||||
Retail | 10,625,000 | 32.3 | 10,775,000 | 34.5 | (150,000) | (1.4) | ||||||||||
Industrial | 4,416,000 | 13.5 | 3,919,000 | 12.6 | 497,000 | 12.7 | ||||||||||
Aerospace | 6,531,000 | 19.9 | 5,094,000 | 16.3 | 1,437,000 | 28.2 | ||||||||||
Other | 436,000 | 1.3 | 380,000 | 1.2 | 56,000 | 14.7 | ||||||||||
Total | $ | 32,853,000 | 100.0 | % | $ | 31,221,000 | 100.0 | % | $ | 1,632,000 | 5.2 | % | ||||
Florida Pneumatic
When comparing the three-month periods ended September 30, 2022, and 2021, the most significant change in Florida Pneumatic's revenue occurred within its stronger gross margin Aerospace product line, which had a
The
Hy-Tech
Hy-Tech designs, manufactures, and sells a wide range of industrial products including tools, parts, accessories, and sockets, 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, | ||||||||||||||||
2022 | 2021 | Increase (decrease) | ||||||||||||||
Percent of | Percent of | |||||||||||||||
Revenue | revenue | Revenue | revenue | $ | % | |||||||||||
OEM | $ | 2,187,000 | 47.4 | % | $ | 1,668,000 | 49.4 | % | $ | 519,000 | 31.1 | % | ||||
ATP | 490,000 | 10.6 | 751,000 | 22.2 | (261,000) | (34.8) | ||||||||||
PTG | 1,693,000 | 36.8 | 882,000 | 26.1 | 811,000 | 92.0 | ||||||||||
Other | 240,000 | 5.2 | 77,000 | 2.3 | 163,000 | 211.7 | ||||||||||
Total | $ | 4,610,000 | 100.0 | % | $ | 3,378,000 | 100.0 | % | $ | 1,232,000 | 36.5 | % | ||||
Nine months ended September 30, | ||||||||||||||||
2022 | 2021 | Increase (decrease) | ||||||||||||||
Percent of | Percent of | |||||||||||||||
Revenue | revenue | Revenue | revenue | $ | % | |||||||||||
OEM | $ | 6,693,000 | 47.4 | % | $ | 4,688,000 | 50.4 | % | $ | 2,005,000 | 42.8 | % | ||||
ATP | 2,178,000 | 16.1 | 2,242,000 | 24.1 | (64,000) | (2.9) | ||||||||||
PTG | 4,216,000 | 31.2 | 2,132,000 | 22.9 | 2,084,000 | 97.7 | ||||||||||
Other | 407,000 | 3.0 | 237,000 | 2.5 | 170,000 | 71.7 | ||||||||||
Total | $ | 13,494,000 | 100.0 | % | $ | 9,299,000 | 100.0 | % | $ | 4,195,000 | 45.1 | % | ||||
A key factor driving the
Hy-Tech's nine-month, year-over-year growth essentially tracks its third quarter results. The JGC business acquisition resulted in PTG revenue growth. Additionally, continued revenue growth in the OEM line was primarily the result of expanded sales opportunities with a major customer. As noted above, the key component to Hy-Tech's other revenue was due to a large one-time order for its Thaxton products.
GROSS MARGIN/PROFIT
Three months ended September 30, | Increase (decrease) | ||||||||||||
2022 | 2021 | Amount | % | ||||||||||
Florida Pneumatic | $ | 4,113,000 | $ | 3,381,000 | $ | 732,000 | 21.7 | % | |||||
As percent of respective revenue | 41.5 | % | 35.2 | % | 6.3 | % | pts | ||||||
Hy-Tech | $ | 734,000 | $ | 593,000 | $ | 141,000 | 23.8 | ||||||
As percent of respective revenue | 15.9 | % | 17.6 | % | (1.7) | % | pts | ||||||
Total | $ | 4,847,000 | $ | 3,974,000 | $ | 873,000 | 22.0 | % | |||||
As percent of respective revenue | 33.4 | % | 30.6 | % | 2.8 | % | pts | ||||||
The 6.3 percentage point improvement in Florida Pneumatic's gross margin was due to price increases, which were put in place to partially offset rising material, labor, and other costs, as well as an increase in its higher margin Aerospace revenue. Additionally, a decline in ocean freight costs during the third quarter of 2022 and a stronger U.S. Dollar to the TWD contributed to Florida Pneumatic's gross margin improvement this quarter, compared to the same period in 2021. The stronger gross margin drove the
Hy-Tech's gross profit declined 1.7 percentage points this quarter, compared to the same three-month period in 2021, due primarily to increased revenue attributable to low margin customers during the third quarter of 2022. Additionally, its PTG product line under absorbed its manufacturing overhead costs during the third quarter of 2022, as it is going through the process of integrating the JGC acquisition and its customer base.
Nine months ended September 30, | Increase (decrease) | ||||||||||||
2022 | 2021 | Amount | % | ||||||||||
Florida Pneumatic | $ | 12,834,000 | $ | 11,746,000 | $ | 1,088,000 | 9.3 | % | |||||
As percent of respective revenue | 39.1 | % | 37.6 | % | 1.5 | % | pts | ||||||
Hy-Tech | $ | 2,160,000 | $ | 1,712,000 | $ | 488,000 | 26.2 | ||||||
As percent of respective revenue | 16.0 | % | 18.4 | % | (2.4) | % | pts | ||||||
Total | $ | 14,994,000 | $ | 13,458,000 | $ | 1,536,000 | 11.4 | % | |||||
As percent of respective revenue | 32.4 | % | 33.2 | % | (0.8) | % | pts | ||||||
Florida Pneumatic's gross margin strengthened by 1.5 percentage points and its gross profit increased nearly
Similar to the discussion above, the primary causes for the decline in Hy-Tech's nine-month period ended September 30, 2022, as compared to the gross margin for the same period in the prior year include under-absorption of PTG manufacturing overhead and customer/product mix. In an effort to improve the current year's gross margin, we have increased selling prices, wherever possible, particularly for products that were most significantly impacted by raw material and freight costs that Hy-Tech was forced to absorb throughout the year. Additionally, we are in the process of completing the integration of the JGC business acquisition that occurred during the first quarter of this year. The integration is taking longer than expected and will continue well into 2023. We believe the completion of the integration of the JGC business into the facility in Punxsutawney, PA. will result in improved manufacturing, productivity. Lastly, combined with recent price increases, we believe Hy-Tech's overall gross margin will begin to improve in 2023.
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 2022, our SG&A was
i) | Our compensation expense increased |
ii) | We incurred increases this quarter, compared to the same quarter in 2021 in professional fees of |
iii) | Our variable expenses, which among other things includes commissions, freight out, advertising and travel and entertainment expenses declined |
Our nine-month 2022 total SG&A was
i) | Compensation expenses increased |
ii) | Professional fees and expenses increased |
iii) | Our variable expenses decreased |
iv) | Our computer-related expenses declined |
v) | Lastly, temporary labor and stock-based compensation expense increased |
OTHER EXPENSE (INCOME)
Other expense (income) consists primarily of adjustments to the fair value of certain assets, partially offset by the gain recognized during the three-month period ended September 30, 2022, as the result of the early termination of a real property lease.
On April 20, 2020, we received a Paycheck Protection Program ("PPP") loan, in the amount of
INTEREST EXPENSE (INCOME)
Three months ended September 31, | Increase | |||||||||||
2022 | 2021 | Amount | % | |||||||||
Interest expense attributable to: | ||||||||||||
Short-term borrowings | $ | 102,000 | $ | 10,000 | $ | 92,000 | 920.0 | % | ||||
Amortization expense of debt issue costs | 4,000 | 4,000 | — | — | ||||||||
Total | $ | 106,000 | $ | 14,000 | $ | 92,000 | 657.1 | % | ||||
Nine months ended September 30, | Increase (decrease) | |||||||||||
2022 | 2021 | Amount | % | |||||||||
Interest expense attributable to: | ||||||||||||
Short-term borrowings | $ | 239,000 | $ | 28,000 | $ | 211,000 | 753.6 | % | ||||
PPP loan | — | (19,000) | 19,000 | 100.0 | ||||||||
Amortization expense of debt issue costs | 12,000 | 12,000 | — | NA | ||||||||
Other | (7,000) | — | (7,000) | NA | ||||||||
Total | $ | 244,000 | $ | 21,000 | $ | 223,000 | 1061.9 | % | ||||
Our average short-term borrowings during the three and nine-month periods ended September 30, 2022, increased significantly, when compared to the same periods in 2021. This increase was due primarily to our decision to increase safety stock levels of inventory, due primarily to delays and other supply chain issues, and the purchase and related costs associated with the acquisition in the first quarter of 2022 of the JGC business. Further, our borrowings increased to support the working capital needs as a result of significant revenue growth. Additionally, the Applicable Margins, as defined in the Credit Agreement with Capital One bank, NA, also increased.
As discussed earlier, during the second quarter of 2021, we received forgiveness of the PPP loan. Accordingly, we recorded the reversal of associated interest expense.
Debt issue costs are associated with an amendment to the Credit Agreement. There were no amortizable debt issue costs incurred with Amendment No. 9, or Amendment No. 10 to the Credit Agreement.
Other interest relates to interest recorded in connection with federal income tax refunds received during the second quarter of 2022.
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, the effective tax rate for the three and nine-month periods ended September 30, 2022, were an income tax benefit of
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, 2022 | December 31, 2021 | |||||
Working capital | $ | 22,125,000 | $ | 24,598,000 | ||
Current ratio | 2.47 to 1 | 3.04 to 1 | ||||
Shareholders' equity | $ | 42,525,000 | $ | 43,840,000 | ||
Credit facility
We and our bank entered into an amendment that, among other things, increased the Revolver borrowing commitment by
At September 30, 2022, there was
Should the need arise whereby the current Credit Agreement is insufficient; we believe that the current Agreement could be expanded, and/or we could obtain additional funds based on the value of our real property.
Cash flows
For the nine-month period ended September 30, 2022, cash provided by operating activities was
Our total debt to total book capitalization (total debt divided by total debt plus equity) on September 30, 2022, was
During the nine-month period ended September 30, 2022, we completed the JGC acquisition, with a purchase price of
During the nine-month period ended September 30, 2022, we used
The major portion of these planned capital expenditures will be for new metal cutting equipment, tooling and information technology hardware and software.
Our liquidity and capital is primarily sourced from our credit facility,
ABOUT P&F INDUSTRIES, INC.
P&F Industries, Inc., through its wholly owned subsidiaries, is a 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.
For information relating to the products and services we offer, please visit our website at www.pfina.com. From there you can link to our subsidiary websites.
OTHER INFORMATION
P&F Industries Inc. has scheduled a conference call on November 10, 2022 at 11:00 A.M. Eastern Time, to discuss its third quarter 2022 results and financial condition. Investors and other interested parties who wish to listen to or participate can dial 1-866-580-3963. 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 11, 2022.
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 2022 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;
- Exposure to fluctuations within the cost of raw materials;
- The strength of the retail economy in the United States and abroad;
- 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, 2021 ("2021 Form 10-K"), 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 SUBSIDIARIES | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(In Thousands $) | September 30, 2022 | December 31, 2021 | ||||||
(Unaudited) | (Audited) | |||||||
Assets | ||||||||
Cash | $ | 410 | $ | 539 | ||||
Accounts receivable - net | 9,458 | 7,550 | ||||||
Inventories | 24,731 | 24,021 | ||||||
Prepaid expenses and other current assets | 2,600 | 4,566 | ||||||
Total current assets | 37,199 | 36,676 | ||||||
Net property and equipment | 8,846 | 8,080 | ||||||
Goodwill | 4,808 | 4,447 | ||||||
Other intangible assets - net | 5,480 | 5,592 | ||||||
Deferred income taxes - net | 487 | 349 | ||||||
Right-of-use assets – operating leases | 3,189 | 2,969 | ||||||
Other assets – net | 65 | 77 | ||||||
Total assets | $ | 60,074 | $ | 58,190 | ||||
Liabilities and Shareholders' Equity | ||||||||
Short-term borrowings | $ | 8,087 | $ | 5,765 | ||||
Accounts payable | 3,056 | 2,920 | ||||||
Accrued compensation and benefits | 1,475 | 1,475 | ||||||
Accrued other liabilities | 1,630 | 1,078 | ||||||
Current leased liabilities – operating leases | 826 | 840 | ||||||
Total current liabilities | 15,074 | 12,078 | ||||||
Noncurrent leased liabilities – operating leases | 2,399 | 2,176 | ||||||
Other liabilities | 76 | 96 | ||||||
Total liabilities | 17,549 | 14,350 | ||||||
Total shareholders' equity | 42,525 | 43,840 | ||||||
Total liabilities and shareholders' equity | $ | 60,074 | $ | 58,190 | ||||
P & F INDUSTRIES, INC. AND SUBSIDIARIES | ||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | ||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||
(In Thousand $) | 2022 | 2021 | 2022 | 2021 | ||||
Net revenue | $ | 14,516 | $ | 12,985 | $ | 46,347 | $ | 40,520 |
9,669 | 9,011 | 31,353 | 27,062 | |||||
Gross profit | 4,847 | 3,974 | 14,994 | 13,458 | ||||
Selling | 5,084 | 4,734 | 15,736 | 15,183 | ||||
Operating loss | (237) | (760) | (742) | (1,725) | ||||
Other (expense) income | (3) | --- | (24) | 2,929 | ||||
(Loss) gain on sale of property and equipment | --- | (67) | 5 | (67) | ||||
Interest expense | (106) | (14) | (244) | (21) | ||||
(Loss) income before income taxes | (346) | (841) | (1,005) | 1,116 | ||||
Income tax benefit | 109 | 108 | 129 | 267 | ||||
Net (loss) income | $ | (237) | $ | (733) | $ | (876) | $ | 1,383 |
P&F INDUSTRIES, INC. AND SUBSIDIARIES | Nine months | |||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) | ended September 30, | |||||||||||||
(In Thousands $) | 2022 | 2021 | ||||||||||||
Cash Flows from Operating Activities: | ||||||||||||||
Net (loss) income | $ | (876) | $ | 1,383 | ||||||||||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||||||||||||||
Non-cash and other charges: | ||||||||||||||
Depreciation and amortization | 1,270 | 1,345 | ||||||||||||
Amortization of other intangible assets | 514 | 474 | ||||||||||||
Rent expense from leased obligations | 710 | 670 | ||||||||||||
Amortization of debt issue costs | 12 | 12 | ||||||||||||
Amortization of consideration payable to a customer | 157 | 202 | ||||||||||||
Provision for losses on (recovery of) accounts receivable | (33) | 19 | ||||||||||||
Stock-based compensation | 1 | 4 | ||||||||||||
Stock-based compensation – exercise of options | 38 | --- | ||||||||||||
Restricted stock-based compensation | 36 | 35 | ||||||||||||
Forgiveness of PPP loan | --- | (2,929)) | ||||||||||||
Deferred income taxes | (129) | (267)) | ||||||||||||
(Gain) loss on sale of fixed assets | (5) | 33 | ||||||||||||
Gain on early termination of lease | (19) | --- | ||||||||||||
Fair value adjustment of assets held for sale | --- | 40 | ||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||
Accounts receivable | (1,262) | (1,007) | ||||||||||||
Inventories | (554) | (3,274) | ||||||||||||
Prepaid expenses and other current assets | 1,608 | 248 | ||||||||||||
Accounts payable | (45) | 1,406 | ||||||||||||
Accrued compensation and benefits | 28 | 711 | ||||||||||||
Accrued other liabilities and other current liabilities | 582 | (14) | ||||||||||||
Operating lease liabilities | (703) | (665) | ||||||||||||
Other liabilities | (25) | (36) | ||||||||||||
Total adjustments | 2,181 | (2,993) | ||||||||||||
Net cash provided by (used in) operating activities | 1,305 | (1,610) | ||||||||||||
Cash Flows from Investing Activities: | ||||||||||||||
Capital expenditures | $ | (1,222) | $ | (428) | ||||||||||
Proceed from sale of fixed assets | --- | 28 | ||||||||||||
Purchase of net assets of Jackson Gear Company business | (2,300 | — | ||||||||||||
Net cash used in investing activities | (3,522) | (400) | ||||||||||||
Cash Flows from Financing Activities: | ||||||||||||||
Proceeds from exercise of stock options | 2 | — | ||||||||||||
Dividend Payment | (160) | — | ||||||||||||
Net payments relating to short-term borrowings | 2,323 | 1,921 | ||||||||||||
Net cash used in financing activities | 2,165 | 1,921 | ||||||||||||
Effect of exchange rate changes on cash | (77) | (26) | ||||||||||||
Net decrease in cash | (129) | (115) | ||||||||||||
Cash at beginning of period | 539 | 904 | ||||||||||||
Cash at end of period | $ | 410 | $ | 789 | ||||||||||
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 | $ | 213 | $ | 25 | ||||||
Taxes | $ | 126 | 12 | |||||||
Cash paid for amounts included in the measurement of operating lease liabilities | $ | — | $ | 6 | ||||||
Noncash information: | ||||||||||
Right of Use ("ROU") assets recognized for new operating lease liabilities | $ | 987 | $ | 320 | ||||||
ROU adjustment due to early termination | $ | 359 | $ | — | ||||||
P & F INDUSTRIES, INC. AND SUBSIDIARIES | ||||||||||||||||
NON-GAAP FINANCIAL MEASURE AND RECONCILIATION | ||||||||||||||||
COMPUTATION OF (EBITDA) - EARNINGS (LOSS) BEFORE INTEREST, TAXES, DEPRECIATION, AND AMORIZATION | ||||||||||||||||
(UNAUDITED) | ||||||||||||||||
(In Thousands $) | For the three-month periods ended | For the nine-month periods ended September 30, | ||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Net (loss) income (2) | $ | (237) | (733) | $ | (876) | 1,383 | ||||||||||
Add: | ||||||||||||||||
Depreciation & amortization (3) | 828 | 893 | 2,664 | 2,703 | ||||||||||||
Interest expense | 106 | 14 | 244 | 21 | ||||||||||||
Income tax benefit | (109) | (108) | (129) | (267)) | ||||||||||||
825 | 799 | 2,779 | 2,457 | |||||||||||||
EBITDA (1) | $ | 588 | 66 | $ | 1,903 | 3,840 | ||||||||||
(1)
(2) | 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.
Included in the 2021 three and nine-month net income values is the forgiveness of the
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(3)
| Includes depreciation, and amortization of: (a) intangible assets; (b) operating lease assets; (c) debt issue costs, and (d) consideration payable to a customer.
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SOURCE P&F Industries, Inc.
