Investors Update: P&F Industries (NASDAQ:PFIN)

P&F Industries (NASDAQ:PFIN) reported change of -2.61% to $8.23 with the recent traded volume of 416 shares in most recent trading session compared to an average volume of 4.64K. The stock was changed with -0.03% over last five days period.

 The one month performance of stock was noted at -1.79%. PFIN’s shares are moving at 8.72% for the quarter and managed a 5.77% return over the course of the past year and is now at 6.47% since this point in 2018. 

P&F Industries (NASDAQ:PFIN) disclosed its results from operations for the year ended December 31, 2018. The Company is reporting full-year 2018 net revenue of $64,995,000, compared to full-year 2017 net revenue of $58,974,000.  Additionally, for full-year 2018, the Company is reporting income before taxes of $1,109,000, compared to full-year 2017 loss before income taxes of $249,000.  After giving effect to income tax expenses, the Company is reporting net income for the full-year 2018 of $856,000, compared to a net loss of $884,000, for the full-year of 2017.  In 2017, the Company recorded a tax expense of $635,000, driven by the Tax Cuts and Jobs Act of 2017, which became effective in December 2017.

Richard Horowitz, the Company’s Chairman of the Board, Chief Executive Officer and President commented, “On behalf of our entire organization, I am proud and pleased to report that P&F’s 2018 net revenue increased more than ten percent over the prior year.  Key components to the revenue growth were, continued improvement in our Aerospace, Industrial/catalog and Automotive sectors, along with stronger results at Hy-Tech, primarily due to the increasing success of the OEM-Engineered Solutions initiative.  Additionally, shipments to The Home Depot during 2018 increased just under $1.2 million, compared to shipments in 2017, due primarily to the roll-out of a new and improved line of pneumatic hand tools, which is now being marketed as The Home Depot’s Husky brand.  The aforementioned improvements to our revenue was partially offset by our decision in late 2017 to exit our relationship with Sears.”

Mr. Horowitz continued, “The adoption of the new revenue recognition standard requires us to account for certain expenses during 2018, as a reduction to gross revenue that were, prior to the adoption on January 1, 2018, accounted for in our selling, general and administrative expenses.  While the adoption of this new accounting standard did not affect our net income, it did cause our full year 2018 revenue, gross profit and SG&A each to decrease by $1,007,000.  Taking this into consideration, our consolidated 2018 gross margin was only one basis point below the gross margin for 2017.  It should be noted that Hy-Tech’s gross margin improved 3.3 percentage points, while Florida Pneumatics’ gross margin, which was directly impacted by the new standard, declined 0.9 percentage points.”

Mr. Horowitz concluded his remarks by adding, “We remain focused on being a key provider of power hand tools and accessories.  We are confident that our ongoing developmental efforts and enhancements to our existing product lines will continue to pave the way for future growth, both in the United States, as well as internationally, where we have recently launched a new sales initiative, which will be spearheaded by a recently appointed Director of European sales and operations.  Lastly, we plan to continue our pursuit of business opportunities, which include acquisitions of complementary businesses, as well as new market initiatives.”      

 The stock beta value is 0.08. PFIN stock changed at 0.55% distance from its 200-day moving average. On a similar note, the stock marked distance of 1.19% from its 50-day moving average and moved -1.95% away from its 20-day moving average. The average volatility for the week and month was at 1.97% and 2.34% respectively. Its quarter to quarter sales remained 12.00% and sales observed at -0.30% over past 5 years. The company holds 3.65 million shares outstanding and 2 million shares are floated in market.

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