P & F Industries Inc. (PFIN, Financial) filed Quarterly Report for the period ended 2011-09-30.
P & F Industries Inc. has a market cap of $13.52 million; its shares were traded at around $3.7399 with and P/S ratio of 0.27.
Revenue for the Tools group increased to $30,361,000 during the nine-month period ended September 30, 2011, compared to $27,124,000 for the same nine-month period in 2010. Hy-Tech s revenue during the nine-month period ended September 30, 2011 increased $2,276,000, or 22.3%, of which ATP revenue increased 21%. As noted above, this increase during the nine-month period ended September 30, 2011 has been due primarily to the strong demand for the ATP products within the distribution channels. Revenue also increased at one of its major customers 38% over the nine-month period in 2010. This improved year-to-date revenue attributable to this customer is due in part to their need to increase their product offerings and service level to their global business partners. Additionally, revenue generated from the sale of products for the mining, construction and industrial manufacturing markets increased approximately 27%. However, revenue from the sale of its Thaxton products, which for the nine-month period ended September 30, 2011 accounted for approximately 2% of its revenue, declined 29%, when compared to the nine-month period ended September 30, 2010.
During the first nine months of 2011, revenue at Florida Pneumatic increased over the same period in 2010 by $961,000 or 5.7%. This improvement is primarily the result of an increase of $1,272,000 or 33% at its higher margin industrial/catalog sector, which, for the nine-month period ended September 30, 2011 accounted for approximately 29% of Florida Pneumatics revenue, compared to approximately 23% during the same nine-month period in the prior year. Additionally, revenue increased by 40% at Florida Pneumatic s automotive product line for the nine-month period ended September 30, 2011 compared to the same period a year ago. Further, revenue also improved at its Berkley, filters and OEM product lines by an aggregate of 12%. However, revenue from its major customer during the nine-month period ended September 30, 2011 decreased 7%, due mostly to reduced levels of orders for promotional and specialty items compared to the same period in 2010. However, there was an increase in the number of orders for basic items from this customer. This customer accounts for approximately 57% of Florida Pneumatic s total revenue.
For the three-month period ended September 30, 2011, our SG&A were $4,581,000, compared to $3,845,000 for the three-month period ended September 30, 2010. As a percentage of revenue, our SG&A was 30.4% for the three-month period ended September 30, 2011, compared to 27.0% for the same period in the prior year. Significant line items contributing to the change were expenses such as commissions, freight out, travel and entertainment, advertising and warranty costs aggregating $186,000, which increased primarily due to higher revenue. Additionally, compensation, which includes wages, accrued performance-based bonus incentives, associated payroll taxes and employee benefits increased $463,000, due in part to the reinstatement in January 2011 of wage and benefit reductions that were put in effect in April 2009. Depreciation and amortization costs also increased $46,000, due primarily to amortizing certain costs incurred in connection with the credit agreement entered into with COLF in October 2010. Amortization of non-cash stock-based compensation expense increased by $39,000, when comparing the three-month periods ended September 30, 2011 and 2010.
Our SG&A for the nine-month period ended September 30, 2011 were $13,458,000, compared to $12,246,000 incurred during the same period in 2010. As a percentage of revenue SG&A for the nine-month period ended September 30, 2011 was 31.5% compared to 31.6% during the same period in 2010. As the result of revenue increasing our variable expenses, which includes commissions, freight out, travel and entertainment, advertising and warranty costs increased an aggregate amount of $379,000. Additionally, compensation, which includes wages, accrued performance-based bonus incentives, associated payroll taxes and employee benefits increased $1,248,000, due in part to the reinstatement in January 2011 of wage and benefit reductions that were put in effect in April 2009, as well as improved net earnings, which drives the accrued performance-based bonus. Depreciation and amortization costs also increased $131,000, due primarily to amortizing certain costs incurred in connection with the credit agreement entered into with COLF in October 2010. Amortization of non-cash stock-based compensation expense increased by $56,000, when comparing the nine-month periods ended September 30, 2011 and 2010. These increases were partially offset by decreases in legal and other professional fees we incurred in connection with resolving conflicts with our former banks, resulting in an aggregate reduction of $672,000.
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P & F Industries Inc. has a market cap of $13.52 million; its shares were traded at around $3.7399 with and P/S ratio of 0.27.
Highlight of Business Operations:
Revenue reported by our Tools segment during the three-month period ended September 30, 2011 increased $573,000, when compared to the same period in 2010. Specifically, Hy-Tech, which focuses on the industrial sector of the pneumatic tools market, increased revenue $642,000 during the third quarter of 2011 compared to the same period in 2010. This improvement is due primarily to increased product demand within its distribution channels. Of note, Hy-Tech s ATP product lines (parts, tools and sockets), which accounted for approximately 70% of its revenue during the third quarter of 2011, improved 17%, when compared to the same three month period in 2010. Additionally, revenue generated from its sale of products that focus on mining, construction and industrial manufacturing markets, which accounted for approximately 13% of third quarter of 2011 revenue, increased approximately 26% over the same period in 2010. Further, revenue from a major customer of Hy-Tech, which for the three-month period ended September 30, 2011 accounted for approximately 16% of its revenue, increased 37% when compared to the same period a year ago. Revenue from its Thaxton product line decreased approximately 23% however, Thaxton accounted for only 2% of Hy-Tech s revenue during this quarter. We believe that Hy-Tech s relationships with its key customers, given the current economic conditions remain good.Revenue for the Tools group increased to $30,361,000 during the nine-month period ended September 30, 2011, compared to $27,124,000 for the same nine-month period in 2010. Hy-Tech s revenue during the nine-month period ended September 30, 2011 increased $2,276,000, or 22.3%, of which ATP revenue increased 21%. As noted above, this increase during the nine-month period ended September 30, 2011 has been due primarily to the strong demand for the ATP products within the distribution channels. Revenue also increased at one of its major customers 38% over the nine-month period in 2010. This improved year-to-date revenue attributable to this customer is due in part to their need to increase their product offerings and service level to their global business partners. Additionally, revenue generated from the sale of products for the mining, construction and industrial manufacturing markets increased approximately 27%. However, revenue from the sale of its Thaxton products, which for the nine-month period ended September 30, 2011 accounted for approximately 2% of its revenue, declined 29%, when compared to the nine-month period ended September 30, 2010.
During the first nine months of 2011, revenue at Florida Pneumatic increased over the same period in 2010 by $961,000 or 5.7%. This improvement is primarily the result of an increase of $1,272,000 or 33% at its higher margin industrial/catalog sector, which, for the nine-month period ended September 30, 2011 accounted for approximately 29% of Florida Pneumatics revenue, compared to approximately 23% during the same nine-month period in the prior year. Additionally, revenue increased by 40% at Florida Pneumatic s automotive product line for the nine-month period ended September 30, 2011 compared to the same period a year ago. Further, revenue also improved at its Berkley, filters and OEM product lines by an aggregate of 12%. However, revenue from its major customer during the nine-month period ended September 30, 2011 decreased 7%, due mostly to reduced levels of orders for promotional and specialty items compared to the same period in 2010. However, there was an increase in the number of orders for basic items from this customer. This customer accounts for approximately 57% of Florida Pneumatic s total revenue.
For the three-month period ended September 30, 2011, our SG&A were $4,581,000, compared to $3,845,000 for the three-month period ended September 30, 2010. As a percentage of revenue, our SG&A was 30.4% for the three-month period ended September 30, 2011, compared to 27.0% for the same period in the prior year. Significant line items contributing to the change were expenses such as commissions, freight out, travel and entertainment, advertising and warranty costs aggregating $186,000, which increased primarily due to higher revenue. Additionally, compensation, which includes wages, accrued performance-based bonus incentives, associated payroll taxes and employee benefits increased $463,000, due in part to the reinstatement in January 2011 of wage and benefit reductions that were put in effect in April 2009. Depreciation and amortization costs also increased $46,000, due primarily to amortizing certain costs incurred in connection with the credit agreement entered into with COLF in October 2010. Amortization of non-cash stock-based compensation expense increased by $39,000, when comparing the three-month periods ended September 30, 2011 and 2010.
Our SG&A for the nine-month period ended September 30, 2011 were $13,458,000, compared to $12,246,000 incurred during the same period in 2010. As a percentage of revenue SG&A for the nine-month period ended September 30, 2011 was 31.5% compared to 31.6% during the same period in 2010. As the result of revenue increasing our variable expenses, which includes commissions, freight out, travel and entertainment, advertising and warranty costs increased an aggregate amount of $379,000. Additionally, compensation, which includes wages, accrued performance-based bonus incentives, associated payroll taxes and employee benefits increased $1,248,000, due in part to the reinstatement in January 2011 of wage and benefit reductions that were put in effect in April 2009, as well as improved net earnings, which drives the accrued performance-based bonus. Depreciation and amortization costs also increased $131,000, due primarily to amortizing certain costs incurred in connection with the credit agreement entered into with COLF in October 2010. Amortization of non-cash stock-based compensation expense increased by $56,000, when comparing the nine-month periods ended September 30, 2011 and 2010. These increases were partially offset by decreases in legal and other professional fees we incurred in connection with resolving conflicts with our former banks, resulting in an aggregate reduction of $672,000.
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