EX-99.1 2 brhc10041005_ex99-1.htm EXHIBIT 99.1

Exhibit 99.1
Q2 2022 MANAGEMENT DISCUSSION OF FINANCIAL RESULTS

2 Today’s presentation will include statements, other than historical results, that constitute forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, each as amended. These statements reflect our expectations or estimates based on the information we have today but are not guarantees or predictions of future performance. They involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results to differ materially from the statements contained in this presentation. You are cautioned not to put undue reliance on these forward-looking statements. The Company assumes no obligation to update or otherwise revise these forward-looking statements, except as required by law. FORWARD-LOOKING STATEMENTS

3 Financial Snapshot – 2022 Q2 2022 SALES GROSS MARGIN PROFIT BALANCE SHEET SHARE BUY-BACKS $18.4MM (0.8%) vs 2021 57.0% ($0.7MM) operating loss ($0.1MM) adjusted EBITDA(1) $5.6MM cash $40.1MM inventory no debt 360k shares 4.2% of total shares $5.00 average price per share Year-to-date $38.9MM (2.6%) vs 2021 57.7% $0.1MM operating income $1.5MM adjusted EBITDA(1)

4 Sales Q2 2022 2022 Q2 sales were down less than 1% versus Q2 of 2021, an improvement in trend over the first quarter. However, the retail environment remains challenging. (0.8%) (2.6%) RETAIL ECOMMERCE COMMERCIAL 73% 19% 8% 73% 20% 7%

5 Gross Profit Q2 2022 Q2 gross profit came in 6.9% below Q2 of 2021 due to slightly lower sales and significantly lower margin rate. (6.9%) (4.4%)

6 Profitability Q2 2022 Profitability in 2022 has been affected by soft sales, gross margin impacts, and higher operating costs associated mostly with the tight labor market.

7 Since 1919, Tandy Leather has been the leading supplier of quality leather, machines, tools, kits and instructional resources for generations of hobbyists and trade craftspeople making a living selling leatherwork. Tandy Highlights LARGE & GROWING MARKET MARKET LEADER MULTI-CHANNEL DISTRIBUTION CAPABLE TEAM STRONG FINANCIAL POSITION $40B global craft market $500MM leathercrafting market Growing at 8% 17% share in fragmented market Heritage brand 104* Retail Stores Global Ecommerce Commercial Division Transformed business Completed restatement Managed through COVID Long-term plan to $100MM+/$15MM $5.6MM net cash $40MM inventory $13-15MM real estate No debt *July 2022

8 We have a roadmap to $100MM+ in sales and $15MM in operating income – and we have a plan to get there. Future Roadmap CORE BUSINESS FOCUS ON TEACHING PILOT NEW FORMATS GROW COMMERCIAL @projectfree2fly PRODUCT IMPROVEMENTS @legacybrandleather OPTIMIZE RETAIL FLEET @powderriverleather NEW OPPORTUNITIES YOUTH CRAFTING ART THERAPY CHAIN WHOLESALE INTERNATIONAL 4 KEY GROWTH INITATIVES Tandy is positioned to bring new customers into the craft and expand the leathercrafting category.

9 Key Principles Disciplined Capital Allocation Conservative Balance Sheet Focus on Long-Term Shareholder Value Financial Focus on Consumer Proposition Build Durable Business Foundation Remain Nimble Operating

10 Questions & Discussion

11 (1)Non-GAAP Reconciliation @duckandchick