Investor Relations| P & F INDUSTRIES REPORTS SECOND QUARTER AND SIX MONTHS 1999 RESULTS
Harriet Fried/Klea Theoharis
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P & F INDUSTRIES REPORTS SECOND QUARTER AND SIX MONTHS 1999 RESULTS
42% Increase in Revenues in the Second Quarter of 1999
For the six months ended June 30, 1999, revenues were $35.2 million, versus $24.5 million for the 1998 period. Net income for the first half of 1999 was $1.72 million, compared to $1.73 million in the 1998 period, with diluted earnings per share of $0.46, versus $0.47 in the first half of 1998.
The second quarter results were impacted by two one-time events, as well as by the increased strength of the Japanese yen in relation to the U.S. dollar. An important customer of Florida Pneumatic temporarily slowed its purchasing to ease its own inventory levels. Management expects that orders will return to prior levels during the third quarter. At Green Manufacturing, the installation of a new computer system, which is now running smoothly, caused some temporary manufacturing delays.
In commenting on the quarter, Richard Horowitz, Chairman, President and CEO of P&F Industries stated, "Notwithstanding the impact of the two one-time events during the quarter, P&F still recorded very encouraging results - its second highest second quarter earnings in history. Revenues were also the best in our history, up 42% in the quarter, primarily due to Green Manufacturing, which was acquired during the third quarter of 1998. Hardware sales at Embassy Industries' Franklin division were also strong, helped by steadily increasing sales to Home Depot, as well as to several other large accounts. Franklin's products can now be found in about 90 Home Depot locations in the Northeast. Heating product sales at Embassy Industries were strong, but they were flat compared to the year-ago period, which included significant sales to two new customers. Results for the current quarter were also negatively affected by the fact that the Japanese yen is approximately 15% stronger than it was at this time a year ago, which increases the cost of imported product for Florida Pneumatic."
Mr. Horowitz concluded, "Despite the slowdown this quarter, we expect to have another strong year at P & F. By continually improving internal operations, developing new products for our customers and seeking strategic acquisitions, we will fuel our sales and earnings growth."
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, and 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 press release contains "forward-looking statements" within the meaning of the federal securities laws. It is important to note that these statements involve a number of risks, uncertainties and other factors that could cause the Company's actual results to differ materially from those projected in such forward-looking statements. Additional information concerning such matters is contained in the Company's Annual Report on Form 10-K for the year ended December 31, 1998, and other documents subsequently filed by the Company with the Securities and Exchange Commission, all of which are available from the Securities and Exchange Commission. CONSOLIDATED BALANCE SHEETS AND SUMMARY OF EARNINGS (PDF)
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