SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): April 22, 2003
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The Leather Factory, Inc.
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(Exact Name of Registrant as Specified in Its Charter)
Delaware
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(State or Other Jurisdiction of Incorporation)
1-12368 75-2543540
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(Commission File Number) (IRS Employer Identification Number)
3847 East Loop 820 South, Fort Worth, Texas 76119
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(Address of Principal Executive Offices) (Zip Code)
(817) 496-4414
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(Registrant's Telephone Number, Including Area Code)
_____________________________________________________________________________
(Former Name or Former Address, if Changed Since Last Report)
ITEM 9. REGULATION FD DISCLOSURE
The Registrant is furnishing the press release attached as Exhibit 9.1
announcing the Registrant's 1st quarter 2003 financial results. This press
release was issued on April 22, 2003.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
THE LEATHER FACTORY, INC.
Date: April 25, 2003 BY: /s/ Wray Thompson
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Wray Thompson, Chairman of the Board
and Chief Executive Officer
EXHIBIT 9.1
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FOR IMMEDIATE RELEASE APRIL 22, 2003
THE LEATHER FACTORY REPORTS 1ST QUARTER 2003 RESULTS
FORT WORTH, TEXAS - The Leather Factory, Inc. (AMEX: TLF) today reported results
for the first quarter of 2003. Net income for the quarter ended March 31, 2003
was $774,518 or $0.07 per share (diluted), compared to a net loss of
$(3,249,526) or $(0.30) per share (diluted) for the quarter ended March 31,
2002. Net income for the first quarter of 2002 before the cumulative effect of
the change in accounting principle was $759,305 or $0.07 per share (diluted).
(See the attached Consolidated Statements of Operations.) The accounting change
resulted from the write-down of goodwill in accordance with SFAS No. 142.
Net sales for the quarter ended March 31, 2003 were $10,560,085, up 3.5% over
net sales of $10,203,951 in the first quarter of last year. Leather Factory
operations accounted for the increase while Tandy Leather and Roberts, Cushman
sales were virtually flat. Comparable store sales in the first quarter of 2003
(29 Leather Factory and 2 Tandy Leather stores) increased $509,000 or 6% over
the first quarter of 2002. Also, sales were fueled by the addition of 18 new
stores (1 Leather Factory and 17 Tandy Leather) during the last 12 months.
Wray Thompson, Chairman and Chief Executive Officer, commented, "We're pleased
with the sales gains from our comparable stores. Despite an overall weak retail
environment, a 6% gain in that category is solid. The severe winter storms in
February hurt us some as several of our new Tandy Leather stores are located in
the Northeast. Overall however, the Tandy Leather stores are producing good
results as they tend to operate very efficiently and produce profits quickly."
The Leather Factory, Inc., (http://www.leatherfactory.com), headquartered in
Fort Worth, Texas, is an international marketer and wholesale distributor of a
broad product line including leather, leatherworking tools, buckles and
adornments for belts, leather dyes and finishes, shoe repair supplies, saddle
and tack hardware, and do-it-yourself kits, and is a manufacturer and
distributor of fancy hat trims, leather lacing and kits. The Company distributes
its products through sales/distribution units located throughout the U.S. and
Canada and through its subsidiary, Tandy Leather Company, via retail stores and
mail/telephone/website orders (http://www.tandyleather.com). Its common stock
trades on the American Stock Exchange with the symbol "TLF"
THE LEATHER FACTORY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 2003 AND 2002
Quarter ended March 31,
2003 2002
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NET SALES $10,560,085 $10,203,951
COST OF SALES 4,914,581 4,835,356
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Gross Profit 5,645,504 5,368,595
OPERATING EXPENSES 4,529,832 4,175,136
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INCOME FROM OPERATIONS 1,115,672 1,193,459
OTHER EXPENSE:
Interest expense 63,352 89,869
Other, net (30,818) 16,355
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Total other expense 32,534 106,224
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INCOME BEFORE INCOME TAXES AND CUMULATIVE
EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE 1,083,138 1,087,235
PROVISION FOR INCOME TAXES 308,620 327,930
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NET INCOME BEFORE CUMULATIVE EFFECT OF CHANGE
IN ACCOUNTING PRINCIPLE 774,518 759,305
CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE,
NET OF INCOME TAXES - (4,008,831)
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NET INCOME (LOSS) $ 774,518 $(3,249,526)
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NET INCOME (LOSS) PER COMMON SHARE - BASIC:
INCOME BEFORE CUMULATIVE EFFECT OF CHANGE IN ACCTG PRINCIPLE. $ 0.08 $ 0.08
CUMULATIVE EFFECT OF CHANGE IN ACCTG PRINCIPLE, NET OF TAX. . - (0.40)
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NET INCOME (LOSS) PER COMMON SHARE. . . . . . . . . . . . . . $ 0.08 $ (0.32)
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NET INCOME (LOSS) PER COMMON SHARE - ASSUMING DILUTION:
INCOME BEFORE CUMULATIVE EFFECT OF CHANGE IN ACCTG PRINCIPLE. $ 0.07 $ 0.07
CUMULATIVE EFFECT OF CHANGE IN ACCTG PRINCIPLE, NET OF TAX. . - (0.37)
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NET INCOME (LOSS) PER COMMON SHARE. . . . . . . . . . . . . . $ 0.07 $ (0.30)
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WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING:
Basic 10,177,433 10,001,717
Diluted 10,731,713 10,791,259