P&F Industries (PFIN) Reports Q2 EPS of $0.08 on Revenues of $16.19M

P&F Industries (NASDAQ: PFIN) reported Q2 EPS of $0.08. Revenue for the quarter came in at $16.19 million.

Richard Horowitz, the Company's Chairman of the Board, Chief Executive Officer and President commented, "I am pleased to report that our second quarter 2018 income before taxes has greatly improved from just a year ago, more than twenty-six fold. We accomplished this with stronger revenue, improved margin and controlled operating expenses.

The acquisition of the business assets of Jiffy Air Tool, Inc. in April of 2017 has enabled us to penetrate deeper into the aerospace sector of the pneumatic tool industry. Our second quarter 2018 Aerospace revenue increased more than $1,000,000 or 54.9% over the prior year's level. This was Jiffy\'s highest revenue quarter since its acquisition. Automotive and Industrial/catalog revenue also contributed to the improved revenue, increasing 11.3% and 13.8%, respectively over the second quarter of 2017. However, we experienced a decline in our Retail revenue this quarter compared to the second quarter of 2017, due primarily to the decision not to renew, as of September 30, 2017, an agreement in which we delivered Craftsman® pneumatic tools and accessories to Sears."

Mr. Horowitz added, "Hy-Tech continues to out-pace its 2017 results. This quarter's revenue reflects a 15.2% increase over the same period one year ago. The resurgence of a major customer is testimony to the success that the revitalized management team under new leadership at Hy-Tech has been able to accomplish. Additionally, Hy-Tech\'s OEM-Engineered Solutions initiative, which is designed to expand its products and technologies into new niche markets, continues to gain momentum. We believe growth in this product offering should continue."

Mr. Horowitz continued, "As I noted in previous announcements, effective January 1, 2018, we adopted the new revenue recognition standard, which requires us to account for certain expenses that we had previously accounted for in our selling, general and administrative expenses, or SG&A, prior to the adoption, as a reduction to gross revenue. While the adoption of this new accounting standard did not affect our net income, it did cause our three-month revenue, gross profit and SG&A to each decrease by $243,000."

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 recent acquisitions along with ongoing enhancements to our existing product lines will continue to pave the way to future growth. Lastly, we plan to continue our pursuit of business opportunities, which include acquisitions of complementary businesses, as well as new market initiatives."

For earnings history and earnings-related data on P&F Industries (PFIN) click here.

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