P & F Industries Inc. (PFIN, Financial) filed Quarterly Report for the period ended 2010-09-30.
P & F Industries Inc. has a market cap of $7.3 million; its shares were traded at around $2.02 with a P/E ratio of 101 and P/S ratio of 0.1.
In spite of the continued economic sluggishness, P&F has begun to show revenue growth as the result of market share gains as we take advantage of the weakness of competitors and also the sales of products that have been developed over the last several years. This revenue increase, coupled with the results of major cost reduction initiatives introduced during 2009, dramatically improved profits for the third quarter of 2010. Overall revenues increased 8.5% in the third quarter of 2009 as compared to the third quarter of 2009. This increase was contributed to by both the Tools and Hardware lines. Whiles the sales increase is important, there was an even more dramatic improvement in overall net income, increasing from $56,000 in the third quarter of 2009 to $632,000 for the third quarter of 2010. The two main reasons we are seeing such results at this point are that we believe that the bottom of the market for sales of P&F s products was approximately the third quarter of 2009 and that the third quarter of 2010 saw relatively little in expenses related to addressing the Company s bank issues that were incurred in the first six months of 2010. To that end, it should be noted that following the third quarter of 2010, the Company secured a new comprehensive credit facility in late October.
When comparing the three-month periods ended September 30, 2010 and 2009, revenue reported by our Tools segment increased $856,000 or 8.8%. Specifically, Florida Pneumatic increased its revenue from its major retail customer by $981,000, when comparing the three-month periods ended September 30, 2010 and 2009. Additionally, when comparing the three-month period ended September 30, 2010 to the same period in the prior year, Florida Pneumatic improved its industrial/catalog, automotive and filters productsrevenue by $277,000, $68,000 and $13,000, respectively. As the result of our decision to no longer market the Franklin products line effective December 31, 2009, revenue from the Franklin products line reflect a decrease of $590,000. We believe that Florida Pneumatic s relationships with its key customers, given the current economic conditions remain good.
During the nine-month period ended September 30, 2010, revenue for our Tools segment decreased to $27,124,000 from $28,234,000 in the same period a year ago. It should be noted that Hy-Tech revenue during the three month period ended March 31, 2009 included unusually large orders from one of its customers that have not repeated thus far in 2010. Although its revenue for the for both the second and third quarters of 2010 reflect an increase over the prior year, revenue for the nine-month period ended September 30, 2010 is down $699,000 when compared to the same period in 2009. Revenue at Florida Pneumatic for the nine-month period ended September 30, 2010, has decreased 2.4% or $411,000. This decrease in revenue is, primarily due to the decision effective December 31, 2009, to discontinue marketing the Franklin products line, resulting in revenue decreasing $1,336,000, partially offset by revenue growth in the more profitable Industrial/Catalog line of $738,000. Additionally, during the nine month period ended September 30, 2010, revenue in the automotive product line increased by $211,000, with revenue decreasing $68,000 from Florida Pneumatic s major customer during the nine-month period ended September 30, 2010.
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P & F Industries Inc. has a market cap of $7.3 million; its shares were traded at around $2.02 with a P/E ratio of 101 and P/S ratio of 0.1.
Highlight of Business Operations:
Hy-Tech manufactures and distributes pneumatic tools and parts for industrial applications. Hy-Tech manufactures approximately sixty types of industrial pneumatic tools, most of which are sold at prices ranging from $300 to $7,000, under the names “ATP”, “Thaxton”, “THOR” and “Eureka”, as well as under the trade names or trademarks of other private label customers. This line of products includes grinders, drills, saws, impact wrenches and pavement breakers.In spite of the continued economic sluggishness, P&F has begun to show revenue growth as the result of market share gains as we take advantage of the weakness of competitors and also the sales of products that have been developed over the last several years. This revenue increase, coupled with the results of major cost reduction initiatives introduced during 2009, dramatically improved profits for the third quarter of 2010. Overall revenues increased 8.5% in the third quarter of 2009 as compared to the third quarter of 2009. This increase was contributed to by both the Tools and Hardware lines. Whiles the sales increase is important, there was an even more dramatic improvement in overall net income, increasing from $56,000 in the third quarter of 2009 to $632,000 for the third quarter of 2010. The two main reasons we are seeing such results at this point are that we believe that the bottom of the market for sales of P&F s products was approximately the third quarter of 2009 and that the third quarter of 2010 saw relatively little in expenses related to addressing the Company s bank issues that were incurred in the first six months of 2010. To that end, it should be noted that following the third quarter of 2010, the Company secured a new comprehensive credit facility in late October.
When comparing the three-month periods ended September 30, 2010 and 2009, revenue reported by our Tools segment increased $856,000 or 8.8%. Specifically, Florida Pneumatic increased its revenue from its major retail customer by $981,000, when comparing the three-month periods ended September 30, 2010 and 2009. Additionally, when comparing the three-month period ended September 30, 2010 to the same period in the prior year, Florida Pneumatic improved its industrial/catalog, automotive and filters productsrevenue by $277,000, $68,000 and $13,000, respectively. As the result of our decision to no longer market the Franklin products line effective December 31, 2009, revenue from the Franklin products line reflect a decrease of $590,000. We believe that Florida Pneumatic s relationships with its key customers, given the current economic conditions remain good.
During the nine-month period ended September 30, 2010, revenue for our Tools segment decreased to $27,124,000 from $28,234,000 in the same period a year ago. It should be noted that Hy-Tech revenue during the three month period ended March 31, 2009 included unusually large orders from one of its customers that have not repeated thus far in 2010. Although its revenue for the for both the second and third quarters of 2010 reflect an increase over the prior year, revenue for the nine-month period ended September 30, 2010 is down $699,000 when compared to the same period in 2009. Revenue at Florida Pneumatic for the nine-month period ended September 30, 2010, has decreased 2.4% or $411,000. This decrease in revenue is, primarily due to the decision effective December 31, 2009, to discontinue marketing the Franklin products line, resulting in revenue decreasing $1,336,000, partially offset by revenue growth in the more profitable Industrial/Catalog line of $738,000. Additionally, during the nine month period ended September 30, 2010, revenue in the automotive product line increased by $211,000, with revenue decreasing $68,000 from Florida Pneumatic s major customer during the nine-month period ended September 30, 2010.
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