Investor Relations| P & F INDUSTRIES, INC. REPORTS RECORD FOURTH QUARTER AND YEAR-END
Harriet Fried/Klea Theoharis
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P & F INDUSTRIES, INC. REPORTS RECORD FOURTH QUARTER AND YEAR-END
Revenues Increased 16.3%, Net Income Up 56.9% in 1998
Revenues for the fourth quarter of 1998 were $19.5 million versus $15.2 million in 1997, an increase of 28.5%. Net income rose 25%, to $991,844, or diluted earnings per share of $0.27, compared to net income of $793,711, or diluted earnings per share of $0.22, in 1997.
For the year ended December 31, 1998, revenues increased 16.3%, to $58.2 million, versus $50.0 million in 1997. Net income for 1998 increased 56.9%, to $3.9 million, or diluted earnings per share of $1.07, versus net income of $2.5 million, or diluted earnings per share of $0.71, in 1997.
Green Manufacturing, which was acquired in September 1998, contributed $5.5 million in revenues to P&F's fourth quarter. Embassy's and Franklin Manufacturing's revenues increased by 19.4% and 8.7%, respectively, for the quarter. Florida Pneumatic's revenues were up 6% after adjusting for a $2.5 million one-time order that was shipped in the fourth quarter of 1997. Gross margins increased at Franklin Manufacturing and Florida Pneumatic, the result of favorable exchange rates, the addition of new customers at higher margins and a better sales mix.
Richard A. Horowitz, Chairman of the Board, President and CEO of P&F Industries, stated, "1998 was an outstanding year for P&F. We are pleased with our newest acquisition, Green Manufacturing, and with the performance of our other two subsidiaries, which are growing at very respectable rates. After adjusting for the $5.5 million one-time order spread between the third and fourth quarters of 1997, pneumatic tools sales would have grown over 18% for 1998. In addition, heating equipment sales grew a robust 13% for the year. We added Home Depot to the customer list of our hardware division, which grew 4% in 1998, and we anticipate revenues to reflect increased business from that organization in the near future."
Mr. Horowitz continued, "We are very excited that our net income for 1998 increased by almost 57% and that our earnings per share rose 51%. This is our seventh consecutive year of increased net income. Looking forward, we will continue to seek acquisitions that expand our product offerings and help us to gain even greater market share in our various industries, even as we continue to grow organically. We will also strive to continue to make improvements in our manufacturing operations, which will result in lower costs and higher gross margins. As an example, we expect the market for radiant heating to keep growing rapidly and we will take advantage of this increased demand by bringing a portion of the manufacturing of this product in-house in the second half of 1999, further improving our margins. Combined with the addition of new customers and some new product introductions, we expect this year to be another successful one for P&F."
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. CONSOLIDATED BALANCE SHEETS (PDF)
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