Investor Relations| P & F INDUSTRIES REPORTS SECOND QUARTER AND SIX MONTHS 2000 RESULTS
Harriet Fried/Klea Theoharis
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P & F INDUSTRIES REPORTS SECOND QUARTER AND SIX MONTHS 2000 RESULTS
Revenue Up 10.9%, Net Income Increases 33.9% For the Quarter
Revenues for the second quarter of 2000 increased 10.9% to $19.0 million, from $17.1 million for the second quarter of 1999. Net income for the quarter increased 33.9% to $1.0 million, or diluted earnings per share of $0.27, compared to net income of $754,000, or diluted earnings per share of $0.20, for the comparable period of 1999.
For the six months ended June 30, 2000, revenues increased 13.0% to $39.8 million, from $35.2 million for the comparable period of 1999. Net income for the first half of 2000 was $2.1 million, or diluted earnings per share of $0.57, compared to $1.7 million, or diluted earnings per share of $0.46, for the comparable period of 1999.
Florida Pneumatic's sales in the second quarter increased by 18.7% to $10.0 million, due primarily to the addition of a new account that was obtained in the fourth quarter of 1999. Gross profits also increased, due primarily to a more profitable product mix and higher volumes.
Green Manufacturing's sales in the second quarter increased 4.9% to $5.5 million, due primarily to strong demand in the refuse market. Gross profit margins in the second quarter also increased, by 1.8%, as a result of better productivity and a more favorable product mix. As a result, Green's operating income increased by 52% over the comparable period of 1999.
Embassy Industries' sales of heating products in the second quarter increased by 2.5% to $2.1 million, due primarily to strong sales of commercial baseboard products. Earlier this year, Embassy secured a large new strategic account in the Rockies that is now beginning to impact sales. Gross profits, however, decreased slightly, due primarily to an increase in the cost of purchased raw materials. The Franklin division of Embassy continues to increase its presence in home centers and is also developing additional products for placement in its expanding distribution channels. Franklin's sales in the second quarter decreased slightly, but gross profits increased slightly, due primarily to a more favorable product mix.
Richard Horowitz, Chairman of the Board, President and CEO of P&F Industries, Inc., stated, "We are pleased with the growth we've experienced across the board and with the improvement in operations at Green Manufacturing that has occurred over the last few quarters. Although results for the first half of 2000 have substantially exceeded the results for the comparable period in 1999, we expect the results for the second half of 2000 to be consistent with the results for the first half of 2000. This is due primarily to the substantial amount of initial stocking orders shipped to a significant new account in the second half of 1999, which will not be repeated in 2000."
P & F Industries, Inc., through its three wholly owned subsidiaries, Florida Pneumatic Manufacturing Corporation, Green Manufacturing, Inc. and Embassy Industries, Inc. manufactures and/or imports air-powered tools, hydraulic cylinders, baseboard and radiant heating products. The Company also imports various security hardware items and compressor air filters, markets a line of pipe-cutting and threading tools and makes heavy-duty pipe wrenches. P&F's products are sold under their own trademarks, as well as under the private labels of major manufacturers and retailers.
This is a "Safe-Harbor" Statement under the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein, including those related to the Company's performance for the year 2000, are based upon the Company's historical performance and on current plans, estimates and expectations. They are subject to various risks and uncertainties, including, but not limited to, the impact of competition, product demand and pricing. These risks could cause the Company's actual results for the 2000 fiscal year and beyond to differ materially from those expressed in any forward-looking statement made by or on behalf of the Company. Forward-looking statements speak only as of the date on which they are made, and 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. CONSOLIDATED BALANCE SHEETS & SUMMARY OF EARNINGS (PDF)
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