Investor Relations| P & F INDUSTRIES, INC. Reports Record Fourth Quarter and Year-End Results
Harriet Fried/Klea Theoharis
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P & F INDUSTRIES, INC. Reports Record Fourth Quarter and Year-End Results
Revenues Increased 39.2%, Net Income Up 61% in Quarter
For the year ended December 31, 1999, revenues increased 42.2% to $82.7 million, versus $58.2 million in 1998. Net income for 1999 increased 15.3% to $4.5 million, or diluted earnings per share of $1.23, versus net income of $3.9 million, or diluted earnings per share of $1.07, in 1998.
Florida Pneumatic was the major contributor to the growth in revenues in the fourth quarter of 1999, primarily due to the launch of Home Depot's Husky(TM) private label line, which began shipping in October to their stores nationwide. For the full year, revenues at Florida Pneumatic totaled $46.7 million.
Embassy Industries' heating products generated a 3.1% growth in revenues and an 18.4% increase in gross profit during the fourth quarter of 1999 versus last year's fourth quarter. For the year, Embassy showed a modest growth in revenues of 4.5%, but the Company continues to be successful in capturing market share. The Franklin division of Embassy experienced growth in revenues of 27.3% in 1999, primarily as a result of shipments to Home Depot for an entire twelve months versus only a limited time in 1998.
Revenues at Green Manufacturing totaled $5.3 million in the fourth quarter of 1999, down 4.0% from 1998. In spite of the slightly lower revenues, however, Green achieved strong profits for the period. Initiatives to improve labor productivity and employee turnover that were put in place during the third quarter of the year began to show results during the fourth quarter. For all of 1999, revenues at Green totaled $20.6 million.
Richard A. Horowitz, Chairman of the Board, President and CEO of P&F Industries stated, "We are proud of the fact that 1999 was the Company's eighth consecutive year of increased income. Although the fourth quarter was buoyed by the success of Florida Pneumatic, we are also pleased with the progress made at Green Manufacturing during the quarter. From a consolidated P&F perspective, gaining deeper penetration in the markets that we already serve continues to be a key objective. We believe that our focus on manufacturing, sales and acquisitions will allow us to continue to expand our market penetration and profitability."
P & F Industries, Inc., through its three wholly owned subsidiaries, Florida Pneumatic, Green Manufacturing and Embassy Industries 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 1955. 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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