Press Releases

Lippert/Heilshorn & Assoc., Inc.
Harriet Fried/Klea Theoharis
Investors Relations
212-838-3777 or


Sales Increased 18%
FARMINGDALE, NY, November 12, 1998 - P & F Industries, Inc. (Nasdaq NM: PFINA), today announced results of operations for the third quarter and nine months ended September 30, 1998. The comparison of these results to the prior year is affected by two non-recurring events that improved results for 1997: a) a large, one-time sale amounting to $2,993,515 was shipped during the period; and b) net income included income from discontinued operations totaling $542,837, or diluted earnings per share of $0.15.

Revenues for the third quarter of 1998 were $14,118,689 versus $14,981,455 in 1997. Sales increased 18% compared to 1997, as adjusted. Net income rose 40% to $1,220,719, or diluted earnings per share of $0.33, compared to net income from continuing operations of $871,556, or diluted earnings per share of $0.25, in 1997.

For the nine months ended September 30, 1998, revenues increased 11% to $38,657,185 versus $34,842,586 in 1997. Revenues for the period increased 21% compared to 1997, as adjusted. Net income for 1998 increased 72% to $2,951,597, or diluted earnings per share of $0.80, versus net income from continuing operations of $1,720,068, or diluted earnings per share of $0.49, in 1997.

Richard A. Horowitz, Chairman of the Board, President and CEO of P&F Industries, stated, "This was a very good quarter in terms of increased sales and improved profitability in our established businesses. We achieved several milestones during the third quarter, including:

* The completion of the acquisition of Green Manufacturing, a hydraulic cylinder manufacturer. Although its contribution to this quarter was minimal because the acquisition occurred on September 16th, we expect Green to provide a significant increase in annual sales;
* Sales to Florida Pneumatic's top two customers increased a combined 15% in the third quarter of 1998 compared to the third quarter of last year ;
* Home Depot, a new customer of Franklin Manufacturing, has already had a significant positive impact on its business; and
* The warehouse upgrade at Florida Pneumatic, which will improve delivery times and space utilization, is near completion."
"With the acquisition of Green Manufacturing we have added a major business segment, hydraulic cylinders, to our existing pneumatic tool, baseboard/radiant heating and hardware segments. We are pursuing further acquisitions with the objective of adding to these existing product lines, enabling us to better serve these niche markets and gain additional economies of scale."

"In addition, it is clear from the increased business that our customers appreciate our reputation for delivering high-quality products at reasonable prices with a high level of service. The growth of sales to Home Depot is a good example of this and we look forward to it being an even larger customer in 1999. We believe that P&F, by continuing to grow internally and by pursuing additional strategic acquisitions, will continue to increase its market share in each of its business segments."

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.

The foregoing release contains a number of matters, including those related to the acquisition of Green Manufacturing, anticipated future acquisitions, and expectations regarding customer growth and market share. This release represents the current views of P&F's management with respect to future events and is subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward-looking statements. P&F's actual results in the future could differ significantly from the results discussed or implied in such forward-looking statements. CONSOLIDATED BALANCE SHEETS (PDF)

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