Archived Interviews with:
Tandy
Leather Factory, Inc.
April 21, 2005
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Tandy Leather
Factory more accurately describes our company, reflecting the long-term stability of
The Leather Factory while furthering the name recognition associated with Tandy Leather
Company
Consumer Cyclical
Apparel/Accessories
(TLF-AMEX)
Tandy Leather Factory, Inc.
3847 East Loop 820 South
Fort Worth, TX 76119
Phone: 817-496-4414
Shannon L. Greene
Chief Financial Officer
Interview conducted by:
Lynn Fosse, Senior Editor
CEOCFOinterviews.com
August 25, 2005
BIO:
Shannon L. Greene has served as Chief Financial Officer and Treasurer of the
Company since May 2000. She was appointed to serve on the Board of Directors in
January 2001. Ms. Greene served as the Company’s Controller and Assistant
Controller since September 1997. From January 1996 until she joined TLF, she served as
CFO/Controller for a venture capital group specializing in the computer industry in
Dallas, Texas. From 1987 to 1995, she worked in public accounting. Ms. Greene
received the Bachelor of Accountancy from New Mexico State University in 1987 and was
licensed as a Certified Public Accountant (CPA) in 1991. Her professional affiliations
include the American Institute of Certified Public Accountants, the Texas Society of
Certified Public Accountants and its Fort Worth chapter, the Fort Worth Association of
Financial Professionals, and the National Investor Relations Institute.
Company Profile:
Tandy Leather Factory, Inc. ("TLF"), founded in 1980, is the world’s
largest retailer and wholesale distributor of leather and leathercraft-related items. Its
product lines consist of leather, leatherworking tools, buckles and adornments for belts,
leather dyes and finishes, saddle and tack hardware, do-it-yourself craft kits, suede
lace, and instructional materials specifically dedicated to the art of leathercraft. Its
North American distribution network consists of 30 Leather Factory stores, targeting the
wholesale customer, and 47 Tandy Leather stores, focusing on the retail market. It also
sells products via mail/telephone/Website orders.
Tandy Leather Factory frequently introduces new products either through its own
manufacturing capability or by purchasing from vendors. The Company holds a substantial
number of copyrights for its designs, which have been incorporated throughout its product
line. There are 2,700 items in the current product line, which are sold to hobbyists,
retailers, wholesalers, and manufacturers. The Company extends an invitation for
retailers, including craft stores, western stores, hardware stores and general merchandise
stores, to become a Leather Factory or Tandy Leather Authorized Sales Center.
Tandy Leather Factory welcomes anyone with an interest in leather and leathercraft,
whether it's a hobby or a way-of-life, to think of Tandy Leather Factory as "your
one-stop source" for leather and supplies. The Company offers its customers 100%
satisfaction, the lowest possible prices on every item, plus wholesale and manufacturing
options, the broadest leather and leathercraft line found anywhere and orders that
generally ship within 24-48 hours.
CEOCFO: Ms. Greene, you recently changed your name to Tandy
Leather Factory; please tell us about the significance?
Ms. Greene: “We changed our name for two reasons: (1) we
wanted our corporate name to better reflect who we are and where we are headed as a
company and (2) we wanted to take advantage of the name recognition associated with Tandy
Leather. “The Leather Factory” represents our wholesale distribution operation,
which is what this company was founded on. “Tandy Leather Company” represents
the retail operation, which is what is driving our growth now. So, a combination of the
two names seemed logical from that perspective. Secondly, one of the reasons we acquired
Tandy Leather Company in 2000 was because of its name recognition. Most people are
familiar with many of the companies that were once part of the Tandy family of companies
(RadioShack, Pier 1, Color Tile, etc.). What most people don’t know is that Tandy
Leather was the first Tandy company. Founded in 1920, it is the best-known supplier
in our industry. Brand recognition is very important in most industries and ours is no
different. So it made sense to incorporate “Tandy” into our corporate name to
get the benefit of the name.”
CEOCFO: Please tell us about your recently released Q2
results?
Ms. Greene: “We were very pleased with our 2nd
Quarter results, reporting a solid increase in top-line revenue of 11% and an even
stronger increase in EPS of 40%, from 5 cents to 7 cents for the quarter. Our Retail
Leathercraft operation, the Tandy Leather retail store chain, is driving most of the
revenue growth. We opened 14 retail stores during the twelve months ended June 2005,
bringing the number of stores in the chain to 46. With regard to the increase in earnings,
I think we are finally achieving success from our cost containing and expense cutting
efforts, particularly in our central support departments. Our stores operate very
efficiently, which is why they generate profits so quickly. If the first half of 2005 is
any indication, we are looking forward to a great year.”
CEOCFO: Finally, what should investors look for a couple of
years down the line from Tandy Leather Factory?
Ms. Greene: “We will continue doing what we are doing -
opening an average of a dozen retail stores per year until the chain is 100 to 120 stores
strong domestically. The stores are inexpensive to open, reach profitability quickly, and
generate solid cash. The wholesale operation continues to contribute stability and
predictability, which is a nice complement to our expanding retail operation. We have a
solid management team, committed to running a conservative, profitable company because we
believe that ultimately rewards our stockholders.”
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