P&F Industries, Inc. Reports Results For The Year Ended December 31, 2020 |

MELVILLE, N.Y. , March 25, 2021 /PRNewswire/ — P&F Industries, Inc. (NASDAQ: PFIN) today announced its results from operations for the year ended December 31, 2020 . The Company is reporting net revenue of $49,136,000 , compared to $58,674,000 , reported in 2019. Additionally, the Company is reporting a 2020 loss before income taxes of $6,855,000 , compared to income before income taxes of $6,708,000 in 2019. Included in the current year’s loss before income taxes was an impairment charge of $1,612,000 , while 2019’s income before income taxes included a $7,817,000 gain realized from the sale of the Company’s Jupiter, Florida facility. After giving effect to income taxes, the Company is reporting for 2020 a net loss of $4,954,000 , compared to net income of $4,911,000 for 2019.

Richard Horowitz , the Company’s Chairman of the Board, Chief Executive Officer and President commented, “Our revenue and net results for 2020 were greatly affected by several factors, the most significant of which is the ongoing negative impact of the global COVID-19 pandemic. Additionally, we encountered extreme weakness in the aerospace sectors in which we do business. Specifically, during 2020 the Boeing Company severely limited the production of its 737 MAX aircraft. This was exacerbated by reduced production of military and other commercial aircraft throughout the industry. These factors caused a significant decline in our aerospace revenue. In addition, the downturn in global oil and gas exploration and production activity resulted in lower related revenue, compared to 2019. With lower sales, our production was reduced, in turn resulting in weak manufacturing absorption at our manufacturing facilities, which severely affected our overall gross margin. In an effort to lessen the impact of lower margins, we reduced our selling, and general administrative expenses by nearly $2,500,000 . Finally, during 2020 we recorded impairment charges of $1,612,000 .”

Mr. Horowitz continued, “On a more positive note, as the United States is beginning to show initial signs of recovery from the harsh effects that COVID-19 had brought upon us, we, in turn, are currently beginning to see modest signs of improvement. During the first two months of 2021, we have witnessed increases in overall customer order activity, compared to levels achieved during the latter half of 2020. Additionally, our ability this year to visit current and prospective customers has improved compared to 2020. Specifically, our Power Transmission Group, or PTG has witnessed an increase in order and sales activity during the first two months of 2021, compared to their average levels incurred in 2020. Lastly, Boeing has restarted its manufacture of their 737 MAX aircraft, as well as announcing increases in other aircraft production. We believe this ramp up in their activity, combined with increasing air travel, should generate revenue opportunities at Jiffy and Florida Pneumatic.”

Mr. Horowitz added, “We remain optimistic about sales opportunities in Europe . However, all were put on some form of hold during 2020, due to the global pandemic. With several key European countries still in some form of lockdown, combined with the sluggish rates of vaccination, we believe it is likely these opportunities may not begin to materialize, if at all, until the second half of 2021.”

Mr. Horowitz concluded his remarks with, “We continue our product development across the Company’s businesses. In addition, we expect to further expand our Engineered Solutions business and PTG, through the pursuit of new applications, customers, and markets, both in the United States and Europe . We remain confident that when this pandemic subsides, we will be well positioned to take advantage of the economic recovery. We remain focused on being a key provider and developer of power hand tools and accessories. In addition, as the Company has…