P&F INDUSTRIES INC

CIK:0000075340|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (unaudited)
Net revenue	$ 14,404,000	$ 14,516,000	$ 46,309,000	$ 46,347,000
Cost of sales	9,511,000	9,669,000	29,839,000	31,353,000
Gross profit	4,893,000	4,847,000	16,470,000	14,994,000
Selling, general and administrative expenses	5,785,000	5,084,000	16,327,000	15,736,000
Operating (loss) income	(892,000)	(237,000)	143,000	(742,000)
Other (expense) income	0	(3,000)	15,000	(24,000)
Gain on sale of property and equipment	23,000		40,000	5,000
Interest expense	(110,000)	(106,000)	(326,000)	(244,000)
Loss before income tax	(979,000)	(346,000)	(128,000)	(1,005,000)
Income tax benefit (expense)	258,000	109,000	(18,000)	129,000
Net loss	$ (721,000)	$ (237,000)	$ (146,000)	$ (876,000)
Basic loss per share	$ (0.23)	$ (0.08)	$ (0.05)	$ (0.28)
Diluted loss per share	$ (0.23)	$ (0.08)	$ (0.05)	$ (0.28)
Weighted average common shares outstanding:
Basic	3,195,000	3,195,000	3,195,000	3,183,000
Diluted	3,195,000	3,195,000	3,195,000	3,183,000
Net loss	$ (721,000)	$ (237,000)	$ (146,000)	$ (876,000)
Other comprehensive loss - foreign currency translation adjustment	(97,000)	(160,000)	(28,000)	(356,000)
Total comprehensive loss	$ (818,000)	$ (397,000)	$ (174,000)	$ (1,232,000)

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Cash Flows from Operating Activities:
Net loss	$ (146,000)	$ (876,000)
Non-cash and other charges:
Depreciation	1,476,000	1,271,000
Amortization of other intangible assets	519,000
Amortization of operating lease assets	697,000	710,000
Amortization of debt issue costs	34,000	12,000
Amortization of consideration payable to a customer		157,000
Provision for losses on accounts receivable	(1,000)	(33,000)
Stock-based compensation	24,000	1,000
Stock-based compensation-options exercised		38,000
Restricted stock-based compensation	14,000	35,000
Deferred income taxes	19,000	(129,000)
Gain on disposal of fixed assets	(40,000)	(5,000)
Gain on early termination of a lease		(19,000)
Changes in operating assets and liabilities:
Accounts receivable	(1,361,000)	(1,262,000)
Inventories	3,984,000	(554,000)
Prepaid expenses and other current assets	1,844,000	1,608,000
Other assets	(50,000)
Accounts payable	(327,000)	(45,000)
Accrued compensation and benefits	320,000	28,000
Accrued other liabilities and other current liabilities	701,000	582,000
Operating lease liabilities	(625,000)	(703,000)
Other liabilities	(21,000)	(25,000)
Total adjustments	7,207,000	2,181,000
Net cash provided by operating activities	7,061,000	1,305,000
Cash Flows from Investing Activities:
Capital expenditures	(1,909,000)	(1,222,000)
Proceeds from the sale of fixed assets	57,000
Purchase of net assets of the Jackson Gear Company business		(2,300,000)
Net cash used in investing activities	(1,852,000)	(3,522,000)
Cash Flows from Financing Activities:
Dividend payments	(480,000)	(160,000)
Net (repayments on) proceeds from short-term borrowings	(4,906,000)	2,323,000
Proceeds from exercise of stock options		2,000
Bank financing costs	(84,000)
Net cash (used in) provided by financing activities	(5,470,000)	2,165,000
Effect of exchange rate changes on cash	(68,000)	(77,000)
Net decrease in cash	(329,000)	(129,000)
Cash at beginning of period	667,000	539,000
Cash at end of period	338,000	410,000
Cash paid for:
Taxes	31,000	126,000
Interest	331,000	213,000
Non-cash information:
Right of Use ("ROU") assets recognized for new operating lease liabilities		987,000
ROU adjustment due to early termination	$ 160,000	$ 359,000

CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2023	Dec. 31, 2022
CURRENT ASSETS
Cash	$ 338,000	$ 667,000
Accounts receivable - net	8,734,000	7,370,000
Inventories	20,517,000	24,491,000
Prepaid expenses and other current assets	908,000	2,753,000
TOTAL CURRENT ASSETS	30,497,000	35,281,000
PROPERTY AND EQUIPMENT
Land	507,000	507,000
Buildings and improvements	4,330,000	4,087,000
Machinery and equipment	29,345,000	28,057,000
Property and Equipment, Gross	34,182,000	32,651,000
Less accumulated depreciation and amortization	24,403,000	23,288,000
NET PROPERTY AND EQUIPMENT	9,779,000	9,363,000
GOODWILL	4,823,000	4,822,000
OTHER INTANGIBLE ASSETS - net	4,809,000	5,326,000
DEFERRED INCOME TAXES - net	639,000	629,000
RIGHT-OF-USE ASSETS	4,745,000	5,521,000
OTHER ASSETS - net	161,000	62,000
TOTAL ASSETS	55,453,000	61,004,000
CURRENT LIABILITIES
Short-term borrowings	2,664,000	7,570,000
Accounts payable	2,767,000	3,094,000
Accrued compensation and benefits	2,078,000	1,757,000
Accrued other liabilities	1,706,000	1,002,000
Current leased liabilities - operating leases	860,000	1,020,000
TOTAL CURRENT LIABILITIES	10,075,000	14,443,000
Noncurrent leased liabilities - operating leases	3,991,000	4,535,000
Other liabilities	47,000	70,000
TOTAL LIABILITIES	14,113,000	19,048,000
SHAREHOLDERS' EQUITY
Preferred stock - $10 par; authorized - 2,000,000 shares; no shares issued
Additional paid-in capital	14,284,000	14,246,000
Retained earnings	33,625,000	34,251,000
Treasury stock, at cost - 1,273,000 shares at September 30, 2023, and December 31, 2022	(10,213,000)	(10,213,000)
Accumulated other comprehensive loss	(823,000)	(795,000)
TOTAL SHAREHOLDERS' EQUITY	41,340,000	41,956,000
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	55,453,000	61,004,000
Class A Common Stock
SHAREHOLDERS' EQUITY
Common stock	$ 4,467,000	$ 4,467,000