P&F Industries, Inc. Reports Results For The Three And Six-Month Periods Ended June 30, 2017

MELVILLE, N.Y., Aug. 10, 2017

There were no discontinued operations in 2017, whereas during the second quarter of 2016, the Company reported a loss, net of taxes, from discontinued operations of $14,000, and for the six-month period ended June 30, 2016, income, net of tax, of $12,243,000, which was driven by the $12,171,000 gain on sale of Nationwide Industries, Inc., which occurred in February 2016.

Richard Horowitz, the Company's Chairman of the Board, Chief Executive Officer and President commented, "The acquisition of the Jiffy Air Tool business in April of this year, has catapulted us into the aerospace sector of pneumatic hand tools.  Not only does Jiffy expand our reach into yet another tool sector, it also provides a source of revenue that we believe should more than offset the reduction in revenue and profits resulting from our decision to exit the Sears relationship effective September 30, 2017.  For more than thirty years, we have been the primary provider to Sears of its Craftsman air tools, and the decision to exit this relationship was difficult.  However, Sears' continued financial difficulties and their decision to sell the Craftsman brand to Stanley Black and Decker made us reassess our return in relation to our risk.  Also, our Automotive revenue declined this quarter compared to the second quarter of 2016. The most significant cause for this decline was a major customer for our AIRCAT line of tools, during the second quarter, reduced its purchases, compared to the same period a year ago.  We believe this was the result of this customer's internal effort to adjust their inventory levels. I would like to note that despite this down quarter, AIRCAT's most recent twelve-month revenue reflects an increase of approximately 21%, when compared to the first twelve months post the acquisition."

Mr. Horowitz added, "I am pleased to report that Hy-Tech's revenue and gross margin this quarter both increased more than 11% over the second quarter of 2016.  Hy-Tech's initiative to expand its product and technology into new niche markets is beginning to show results, as approximately 10% of this quarter's ATP revenue was derived from these efforts. We remain highly optimistic that this trend will continue.   

Our selling and general and administrative expenses during the three-month period ended June 30, 2017, includes approximately $450,000 of SG&A expenses directly incurred at the Jiffy operation. Further, our SG&A this quarter included more than $200,000 of professional fees incurred in connection with the Jiffy acquisition."

Mr. Horowitz concluded his remarks by adding, "We continue to seek out business opportunities, including acquisitions of complementary businesses, as well as new market initiatives.  We are very excited about the future. Improving results at Hy-Tech, including its growth into new markets, along with Jiffy's immediate accretive effect to earnings and its promising outlook, gives us cause to be extremely excited about the future of P&F.  Lastly, as always, we remain focused on our mission, which is for P&F to be a key provider of pneumatic tools and accessories."   

In a separate announcement today, the Company also announced the authorization by its board of directors of a stock repurchase program and the declaration of a quarterly cash dividend.