P&F Industries, Inc. (PFIN) has reported an 84.79 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $0.06 million in the quarter, compared with $0.40 million for the same period last year.
Revenue during the quarter dropped 9.18 percent to $12.51 million from $13.77 million in the previous year period. Gross margin for the quarter contracted 307 basis points over the previous year period to 31.22 percent. Operating margin for the quarter stood at negative 15.09 percent as compared to a positive 2.90 percent for the previous year period.
Operating loss for the quarter was $1.89 million, compared with an operating income of $0.40 million in the previous year period.
Richard Horowitz, the Company's chairman of the board, chief executive officer and president commented, "Our results for 2016 were mixed, with certain items impacting the Company in a positive nature, while others negatively. The key factor contributing to the increase in our total net income was the gain on the sale of our Nationwide Industries subsidiary. As announced back in February 2016, the sale of Nationwide was a significant component of our objective to transform P&F into an organization focused on the air tools and related accessories market. In addition, the net proceeds of approximately $18.7 million allowed us to eliminate substantially all of our debt. Additionally, in November 2016, we completed a sale of the real property located in Tampa, Florida, in which we operated the Nationwide business, generating an additional $3.5 million of net proceeds. These transactions have provided us with additional band-width for future growth."
Debt comes down significantly
P&F Industries, Inc. has recorded a decline in total debt over the last one year. It stood at $0.10 million as on Dec. 31, 2016, down 99.37 percent or $15.95 million from $16.05 million on Dec. 31, 2015. Total debt was 0.19 percent of total assets as on Dec. 31, 2016, compared with 22.74 percent on Dec. 31, 2015.
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