Tandy Leather Factory, Inc. (TLF) has reported 19.05 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $1.23 million, or $0.13 a share in the quarter, compared with $1.52 million, or $0.16 a share for the same period last year. Revenue during the quarter went down marginally by 2.53 percent to $20.15 million from $20.67 million in the previous year period. Gross margin for the quarter contracted 23 basis points over the previous year period to 60.97 percent. Total expenses were 91.38 percent of quarterly revenues, up from 88.57 percent for the same period last year. That has resulted in a contraction of 281 basis points in operating margin to 8.62 percent.
Operating income for the quarter was $1.74 million, compared with $2.36 million in the previous year period.
Shannon L Greene, chief executive officer, commented, “Our results this quarter reflect not only soft sales, but the investment we are making in our personnel, including our new district manager program. On the sales front, similar to what other retailers are reporting, were seeing a pattern where consumer spending starts weak, but is expected to pick up as we move through the year. While it is still early, we are pleased with the performance of our new district managers and the active role they are taking in helping their local stores aggressively build our customer base and strengthen our brand. I am confident that, while the first year investment is painful, it will pay off in the long run. Further, despite the retail headwinds, we are moving forward with our new store openings. Our Allen, TX store opened a few weeks ago, and we will be announcing the opening of several more new stores in the very near future."
Operating cash flow drops significantlyTandy Leather Factory, Inc. has generated cash of $0.16 million from operating activities during the quarter, down 85.54 percent or $ 0.92 million, when compared with the last year period. The company has spent $0.61 million cash to meet investing activities during the quarter as against cash outgo of $0.58 million in the last year period.
Cash and cash equivalents stood at $16.41 million as on Mar. 31, 2017, up 43.37 percent or $4.96 million from $11.44 million on Mar. 31, 2016.
Working capital increases
Tandy Leather Factory, Inc. has recorded an increase in the working capital over the last year. It stood at $45.97 million as at Mar. 31, 2017, up 13.06 percent or $5.31 million from $40.66 million on Mar. 31, 2016. Current ratio was at 6.90 as on Mar. 31, 2017, up from 6.50 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 174 days for the quarter from 362 days for the last year period. Days sales outstanding were almost stable at 2 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 197 days for the quarter compared with 381 days for the previous year period. At the same time, days payable outstanding went up to 25 days for the quarter from 22 for the same period last year.
Debt moves up
Tandy Leather Factory, Inc. has witnessed an increase in total debt over the last one year. It stood at $7.44 million as on Mar. 31, 2017, up 10.67 percent or $0.72 million from $6.73 million on Mar. 31, 2016. Total debt was 10.45 percent of total assets as on Mar. 31, 2017, compared with 10.31 percent on Mar. 31, 2016. Debt to equity ratio was almost stable at 0.13 as on Mar. 31, 2017, when compared with the last year. Interest coverage ratio deteriorated to 47.81 for the quarter from 100.85 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
