Market Newsdesk

LONDON and MONTERREY, Mexico, May 13, 2021 /PRNewswire/ — bp (“bp”) and CEMEX, S.A.B. de C.V. (“CEMEX”) (NYSE: CX) announced today that they will work together on accelerating the progress of CEMEX’s 2050 ambition to deliver net-zero CO₂ concrete globally. 

The two companies have agreed to a memorandum of understanding to develop solutions to decarbonize the cement production process and transportation. These potential solutions may include low-carbon power, low-carbon transport, energy efficiency, natural carbon offsets, and carbon capture utilization and storage technologies. Additionally, they intend to work together to develop urbanization solutions envisioned to decarbonize cities.

“Concrete plays an integral role in society, and there are no substitutes for its key attributes, strength, and resilience. We believe it will continue to have a critical role in a low carbon economy, and the challenge for the industry is to find solutions to the manufacturing process emissions,” said Juan Romero, Executive Vice President Sustainability, Commercial, and Operations Development of CEMEX. “This initiative with bp is another example of the work we are doing with partners across industries, academia, and startups to tap into the latest innovation and disruptive technology to achieve our ambition of delivering net-zero CO₂ concrete globally to all of our customers.”

William Lin, bp’s executive vice president, regions, cities & solutions (RC&S), said: “At bp, we want to help ‘greening companies’ meet their sustainability aims just as we are trying to do in our own company. We know that 70 percent of global emissions come from transport, industry and energy and that cement making is energy intensive. Teaming up with progressive companies like CEMEX, that share a net-zero ambition and have complementary capabilities, will help speed up the decarbonization of the industry and the energy system. Now is the time to work together on the path to net-zero and along the way generate mutual value.”

Helping cities and corporations to decarbonize is a core part of bp’s long-term strategy. The RC&S team aims to build enduring relationships ‎with cities and corporations around the world to offer bespoke, integrated and decarbonized energy solutions to complex energy needs – providing energy that is clean, reliable – and also affordable. And to decarbonize high-tech, consumer products, heavy transport, and heavy industry sectors – working with companies that currently have significant carbon emissions to manage and share bp’s net zero ambition.

Angélica Ruiz, bp’s head of country for Mexico and senior vice president for Latin America, said: “We’re proud to collaborate with a global company that shares our goal to transition to a more sustainable future. CEMEX is taking a leading role in decarbonizing the global cement industry, setting a fast pace of progress in all regions, including Mexico and Latin America. Our collaboration with CEMEX is another step towards our ambition to be a net-zero company by 2050 or sooner and help the world to get to net-zero.”

About bp
bp’s purpose is to reimagine energy for people and our planet. It has set out an ambition to be a net zero company by 2050, or sooner and help the world get to net zero, and a strategy for delivering on that ambition. Partnering with countries, cities and corporations to provide innovative energy, mobility and decarbonization solutions as they shape their paths to net zero is a core part of this strategy. For more information visit bp.com

About CEMEX
CEMEX is a global building materials company that provides high-quality products and reliable services. CEMEX has a rich history of improving the well-being of those it serves through innovative building solutions, efficiency advancements, and efforts to promote a sustainable future. For more information, please visit: www.cemex.com

Cautionary statement

:
In order to utilize the ‘safe harbor’ provisions of the United States Private Securities Litigation Reform Act of 1995 (the ‘PSLRA’), bp is providing the following cautionary statement. This press release contains certain forward-looking statements – that is, statements related to future, not past events and circumstances – which may relate to one or more of the financial condition, results of operations and businesses of bp and certain of the plans and objectives of bp with respect to these items. These statements are generally, but not always, identified by the use of words such as ‘will’, ‘expects’, ‘is expected to’, ‘aims’, ‘should’, ‘may’, ‘objective’, ‘is likely to’, ‘intends’, ‘believes’, ‘anticipates’, ‘plans’, ‘we see’ or similar expressions. Actual results may differ from those expressed in such statements, depending on a variety of factors including the risk factors set forth in our most recent Annual Report and Form 20-F under “Risk factors” and in any of our more recent public reports.

Our most recent Annual Report and Form 20-F and other period filings are available on our website at www.bp.com, or can be obtained from the SEC by calling 1-800-SEC-0330 or on its website at www.sec.gov.

 

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SOURCE BP PLC

HAMILTON, Bermuda, May 13, 2021 /PRNewswire/ — White Mountains Insurance Group, Ltd. (NYSE: WTM) will hold its Annual Investor Information Meeting via live Webcast on:

Investors and other interested parties can participate via Webcast.  Manning Rountree, CEO, said, “We will discuss White Mountains’s operations and our outlook for the Company.  Following a short presentation, my partners and I will answer your questions.”

A replay of the webcast and presentation will be accessible on the White Mountains website for 30 days after the event.

For your convenience we have also posted this announcement and the Webcast instructions on the Company’s website at www.whitemountains.com.  The Company’s 2020 Annual Report on Form 10-K, Notice of 2021 Annual General Meeting of Members and Proxy Statement, and 2020 Management Report are available online at www.envisionreports.com/WTM for viewing and downloading.  These documents are also available on our website. 

ADDITIONAL INFORMATION

White Mountains is a Bermuda-domiciled financial services holding company traded on the New York Stock Exchange and the Bermuda Stock Exchange under the symbol WTM. Additional financial information and other items of interest are available at the Company’s web site located at www.whitemountains.com.

White Mountains Insurance Group, Ltd. Hosts Virtual Investor Meeting

Date: Friday, June 4, 2021
Time:  10:00 a.m. ET

You may pre-register at the event website or register the day of the meeting.  

Please follow these instructions to attend the live Webcast.  

Webcast Instructions via the Investor Meeting site

:

• Access the White Mountains Investor Meeting website: 
  https://investorday.whitemountains.com/
• Click on the Register hyperlink
• When prompted, enter the following:
• Your full name and email address
• Your company name, title and country
• You will now be connected to the meeting

or

 Webcast Instructions via the White Mountains website:

• Access the White Mountains website:  www.whitemountains.com
• Click on the For Shareholders link at the top of the home page
• On the Overview page, click on the hyperlink “2021 Annual Investor Meeting” under Upcoming Events
• When prompted, enter the following:
• Your full name and email address
• Your company name, title and country
• You will now be connected to the meeting

Replay Access

:

• Follow the same procedures as for the live Webcast.

 

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SOURCE White Mountains Insurance Group, Ltd.

BATTLE CREEK, Mich., May 13, 2021 /PRNewswire/ — In honor of International Day of Families, Kellogg Company is identifying how its expanded employee benefits are helping to close the equality gap.

According to the United Nations (UN), there is a real opportunity to rethink and transform the way our societies function in order to foster greater equality for all, which cannot be achieved unless greater equality exists within family units. Each year, in order to promote awareness of issues relating to families and to increase the knowledge of the social, economic and demographic processes affecting families, we recognize May 15 as International Day of Families.

In a recent blog post, Teresa Macfarlane, Senior Director, Category Supply Chain, Kellogg Company, shares what these expanded benefits mean to her as a Kellogg employee.

Social K: Kellogg Company Blog
 

With operations and employees around the world, Kellogg offers varying benefits to support our global family including flexible work options and paid time off benefits. In the U.S., we offer Milk Stork – a program for working mothers to send their breast milk home while traveling for work – as well as reimbursement for dependent care while away on business. Recently, Kellogg also expanded our parental benefits in the U.S. to include:

• Expanded paid parental leave – for mothers and fathers – to 12 weeks;
• Increased fertility benefit to $30K for assisted reproductive procedures;
• And increased adoption benefit to $10K per eligible adoption.

Today, there are more young women graduating from school and prioritizing careers in lieu of starting families than there were decades ago. As women age, there are more challenges and complications they face with having children. I know so many people – myself included – that have faced infertility. It requires us to choose a different path when starting a family and it certainly isn’t easy. The fertility financial help Kellogg is offering is life-altering for some employees. Going through treatments can be incredibly expensive, physically exhaustive and mentally draining, and this added benefit helps to lift some of that burden. Women can still be ambitious and pursue careers – doing the same jobs as our male counterparts – and we can also have families. We don’t need to choose one or the other.    

And my story isn’t unique – I have colleagues throughout the company who have benefited tremendously from the expanded offerings and many more who will in the years to come.

For example, my colleague Bert Bachand and his wife recently welcomed their fifth child. He is now taking paternity leave a few months after the baby was born, helping to prolong the time before the baby goes to daycare. He’s able to lead household responsibilities and alleviate a huge burden off his wife, allowing her to go back to work with more peace of mind. I know they are extremely grateful to have this time which is critical for the baby’s development as well as their newly expanded family.

Another colleague, Megan Adams Hagist, with her two young kids, has also benefited from these progressive Kellogg benefits. Megan expressed that the additional time is so beneficial as it allows parents to figure out how to be first-time parents or adjust to having another child in the home. The company has made it clear that it’s willing to step up and be a leader in supporting working parents. As a co-chair for our Women of Kellogg Business Employee Resource Group, Megan and her fellow co-chairs have held discussions over the years with our Total Rewards partners to help guide and support enhancements to our parental benefits.

We believe people must be our competitive advantage – it underpins our Deploy for Growth Strategy, our investment in our employees’ Total Health, and finding the right balance between our personal and professional lives is essential –  it ultimately impacts the way we function as a society – and Kellogg is committed to doing its part.

For more stories and information on Kellogg’s Total Health, visit our site now.

At Kellogg Company (NYSE: K), our vision is a good and just world where people are not just fed but fulfilled. We are creating better days and a place at the table for everyone through our trusted food brands. Our beloved brands include Pringles®, Cheez-It®, Special K®, Kellogg’s Frosted Flakes®, Pop-Tarts®, Kellogg’s Corn Flakes®, Rice Krispies®, Eggo®, Mini-Wheats®, Kashi®, RXBAR®, MorningStar Farms® and more. Net sales in 2020 were approximately $13.8 billion, comprised principally of snacks and convenience foods like cereal, frozen foods, and noodles. As part of our Kellogg’s® Better Days purpose platform, we’re helping to end hunger and are committed to creating Better Days for 3 billion people by the end of 2030. Visit www.KelloggCompany.com or www.OpenforBreakfast.com.

Contact:
Kellogg Company
[email protected]
269-961-3799

 

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SOURCE Kellogg Company

NEWARK, N.J., May 13, 2021 /PRNewswire/ — Leading analytics software firm FICO (NYSE:FICO), will host a free online financial education event with national and local nonprofit partners for Newark-area consumers on May 20. The event will provide attendees with the knowledge and tools to help them better understand their financial health. Senator Bob Menendez will join live to provide opening remarks.

The event is part of FICO’s “Score A Better Future” program, which focuses on helping consumers improve their understanding of their credit and overall financial health. Consumers will learn from credit experts what the key ingredients are that make up the FICO^® Score, and the myths and facts about FICO Scores, which are used by 90% of the top U.S. lenders.

“I’m pleased to be able to join this special virtual event that that will help the people of New Jersey better understand the impact of credit and FICO Scores to their overall financial health. We all want to build a strong future for ourselves and our families, and credit education is important to understanding how to achieve our financial goals,” said Senator Menendez.

FICO has partnered with Operation HOPE to provide attendees with the opportunity to make appointments for free one-on-one credit coaching from non-profit financial well-being coaches to help attendees develop a plan to address their financial goals.

Other FICO partners for the event include:

• National Association of Women Business Owners
• US Hispanic Chamber of Commerce
• Consumer Action
• National Urban League
• National Consumers League
• NAREB
• Diversified Resource Network
• Greater Newark Habitat for Humanity
• The Newark Public Library
• Newark Downtown District
• DoughMain Financial Literacy Foundation
• New Jersey Coalition for Financial Education
• Urban League of Essex County
• The Hudson County Latino Foundation

To register for the event or get more information about the Score A Better Future program, visit http://www.scoreabetterfuture.com/

Who:  FICO and Operation HOPE credit counselors

What: Score A Better Future is a free community education and financial empowerment program by FICO in partnership with local and national nonprofits.

When: Thursday, May 20, 2021 from 12:00-1:15 pm Eastern

Where:  http://www.scoreabetterfuture.com/ (Virtual link to webinar provided upon registration)

About FICO


FICO (NYSE: FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956 and based in Silicon Valley, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. FICO holds more than 195 US and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, telecommunications, health care, retail and many other industries. Using FICO solutions, businesses in more than 100 countries do everything from protecting 2.6 billion payment cards from fraud, to helping people get credit, to ensuring that millions of airplanes and rental cars are in the right place at the right time. Learn more at http://www.fico.com. 

Join the conversation at https://twitter.com/fico, https://www.facebook.com/FICODecisions/ and https://www.instagram.com/ficoscoreabetterfuture/.

 

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SOURCE FICO

MELVILLE, N.Y., May 13, 2021 /PRNewswire/ — P&F Industries, Inc. (NASDAQ: PFIN) today announced its results from operations for the three-month period ended March 31, 2021. The Company is reporting net revenue of $13,945,000, compared to $13,350,000 reported in the same period in 2020.  Additionally, the Company is reporting a loss before income taxes of $377,000, compared to a loss of $1,263,000, for the same period in 2020.  After giving effect to income taxes, the Company is reporting a loss of $307,000, compared to $758,000 for the first quarter of 2020.

Richard Horowitz, the Company’s Chairman of the Board, Chief Executive Officer and President commented, “In the first quarter of 2021, the world was still in the throes of this horrific, global COVID-19 pandemic.  It is therefore somewhat difficult to compare to the first quarter of 2020, when for the most part, the harsh effects of pandemic had not yet begun to be felt.  Despite the aforementioned, our results this quarter improved, compared to a year ago. That being said, during the first quarter of 2021, we began to see indications in several markets we serve that the COVID-19 pandemic might be behind us.  Specifically, Florida Pneumatic’s total first quarter 2021 revenue improved $871,000, or 8.7% over the same three-month period in 2020, even though most of the prior period did not include the full effects of the pandemic. Revenue increases ranged between 27% and 28% in Automotive, Retail, and Industrial products sales, which were partially offset by a decrease in Aerospace revenue of 41%.  This decline was driven primarily by weak demand from Boeing and other commercial and military aircraft manufacturers.  Improvement at Hy-Tech is occurring slower, with first quarter 2021 revenue declining $276,000 or 8.3%, compared to same period in 2020.  However, Hy-Tech’s first quarter 2021, is 57% greater than its fourth quarter 2020 revenue and its gross margin also significantly improved, this quarter, compared to the fourth quarter of 2020.  Further, we are encouraged by the increase in customer orders being received at Hy-Tech, and its current level of open orders.  This strong demand should prove beneficial for the balance of 2021 and beyond.  Our selling, general and administrative expenses declined approximately $700,000, driven by lower compensation costs and costs incurred in 2020 related to the relocation of the gear manufacturing businesses not recurring. Lastly, again considering the impact of the pandemic, our consolidated gross margin was down only 0.4 percentage points, with a slight decline in Hy-Tech gross margin, partially offset by improved gross margin at Florida Pneumatic.”

Mr. Horowitz added, “We are cautiously optimistic about future growth; however, COVID-19 remains a global issue. We intend to do our utmost to continue to serve our customers, while ensuring the health and safety of our employees.  Through persistence by all of our employees, as well as the loyalty of our customers, we made it through very difficult times, and firmly believe that when this pandemic truly is behind us, we will be well positioned to take advantage of an economic recovery.  

Mr. Horowitz concluded his remarks by stating, “Primarily due to the COVID-19 pandemic and its effect on our results, our Board of Directors has determined to continue its suspension of our quarterly cash dividend for the time being. The Board intends to evaluate the dividend policy going forward based on all of the relevant facts, and we look forward to resuming dividends as soon as possible.”

The Company will be reporting the following.

OVERVIEW  

During the first quarter of 2021, significant factors that impacted our results of operations were the:

• Ongoing negative impact of the COVID-19 pandemic on revenue and income;
• Ongoing production slow-down by Boeing of its 737 MAX aircraft, as well as significant reductions in activity at other commercial and military aerospace manufacturing facilities; and
• Continued weakness in oil and gas exploration and drilling.

TRENDS AND UNCERTAINTIES

COVID-19 PANDEMIC

On March 11, 2020, the World Health Organization designated the recent novel coronavirus, or COVID-19, as a global pandemic. COVID-19 was first detected in Wuhan City, Hubei Province, China and continued to spread, significantly impacting various markets around the world, including the United States. Various policies and initiatives have been implemented to reduce the global transmission of COVID-19.

The impact of the COVID-19 virus and the resultant global economic down-turn has had a material impact on our results in the first quarter of 2021. There are delays in receiving containers from Asia due to a significant increase in international shipping traffic, which has caused intermittent shortages of inventory. In addition, the COVID-19 pandemic has caused many of our customers and potential customers to refuse on-site visits which is critical to generating revenue. We believe that until this pandemic subsides, these two issues will continue to affect our operations.

BOEING/AEROSPACE

The Federal Aviation Administration (“FAA”) and the European Union Aviation Safety Agency (“EASA”) have lifted the grounding of the 737 MAX. However, production is still very limited due to the inventory at Boeing and the reluctance of airlines to accept deliveries due to weak air travel demand. This will likely continue to have an adverse effect on our revenue. In addition, production of military and other commercial aircraft throughout the industry has slowed as well due to the ongoing global COVID-19 pandemic. However, we believe when all other commercial and military production lines throughout the United States come back online, an increase in our revenue should follow.

OIL AND GAS

We believe the primary factor contributing to the significant decline occurring in our oil and gas revenue is due to a decline in the price for oil and gas that began in 2020 related to the COVD-19 pandemic. The profitability of crude oil production generally declines as prices fall. As a result, as prices dropped in 2020, production slowed worldwide.  This activity is most easily measured by analyzing the number of active rotary rigs, which is discussed further below.  Until these counts return to pre-pandemic levels, we will continue to be impacted negatively.

TECHNOLOGIES

We believe that over time, several newer technologies, and features will have a greater impact on the market for our traditional pneumatic tool offerings. The impact of this evolution has been felt initially by the advent of advanced cordless operated hand tools in the automotive aftermarket. For certain non-automotive applications, we have begun to develop cordless models of tools and expect to introduce these products in the near future.

OTHER MATTERS

Other than the aforementioned, or matters that may be discussed below, there are no major trends or uncertainties that had, or we could have reasonably expected to have a material impact on our revenue, nor was there any unusual or infrequent event, transaction or any significant economic change that materially affected our results of operations.

We believe that our relationships with our key customers and suppliers remain satisfactory.

RESULTS OF OPERATIONS

REVENUE

During the first quarter of 2021, many of our product lines were adversely affected by the global COVID-19 pandemic, which continues to result in greatly reduced orders and revenue for the three-month period ended March 31, 2021.

The tables below provide an analysis of our net revenue for the three-month periods ended March 31, 2021 and 2020:

 

Florida Pneumatic

Florida Pneumatic markets its air tool products to four primary sectors within the pneumatic tool market; Automotive, Retail, Aerospace and Industrial. It also generates revenue from its Berkley products line, as well as a line of air filters and other OEM parts (“Other”).

 

Despite the ongoing negative effects on the US and global economies, total fiscal first quarter 2021 revenue at Florida Pneumatic increased 8.7% over the same three-month period in 2020.  This improvement was driven by revenue gains in its Automotive, Retail and Industrials sectors.  A decline in Aerospace revenue partially offset the above improvements. Stronger consumer demand for its AIRCAT products and, to a lesser degree, modest increased sales at our United Kingdom (“U.K.”) operations, were the primary factors for the increase in Automotive revenue.  We believe that as the result of the ongoing battle to disinfect and sanitize homes and businesses alike, Florida Pneumatic encountered an increase in demand, compared to the first quarter of 2020, for various “spray gun” tools and accessories which are sold into the retail channel. Stronger Industrial revenue this quarter than in the same period in the prior year, was driven primarily by increased industrial production. The Boeing Corporation is a major customer of Jiffy. The Boeing 737 MAX aircraft was grounded by the FAA and the EASA in March 2019. Although both agencies have lifted the “No Fly” ruling it imposed on all Boeing 737 MAX aircraft, allowing it to begin flights in the United States, we believe it will take several years for the Boeing Corporation to increase its manufacturing of its 737 MAX aircraft to a volume that would be comparable to pre COVID-19 levels, and thus require our Jiffy tools.  Further, the travel restrictions that developed as the result of the COVID-19 pandemic, caused most commercial airlines to curtail orders for other aircraft, which also negatively impacted Florida Pneumatic’s Aerospace revenue. Lastly, orders relating to military aircraft declined, we believe due to COVID-19 constraints placed in manufacturing facilities. 

Hy-Tech

Hy-Tech designs, manufactures, and sells a wide range of industrial products under the brands ATP and ATSCO which are categorized as ATP for reporting purposes. In addition to Engineered Solutions, products and components manufactured for other companies under their brands are included in the OEM category in the table below. PTG revenue is comprised of products manufactured and sold by Hy-tech’s gear business.  NUMATX, Thaxton and other peripheral product lines, such as general machining, are reported as Other.

 

 

The decline in Hy-Tech’s fiscal first quarter 2021 total revenue, compared to the same period in 2020, was primarily due to the following key factors: i) the ongoing negative effects on the US economy caused by the global COVID-19 pandemic; and ii) the severe downturn of the oil and gas market.  We believe that our ATP products offering is likely to continue to struggle due to among other things, the ongoing sluggishness of the price of oil and natural gas, which in turn inhibits exploration and drilling.  The oil and gas sector in the US has been hindered by the downward pricing pressure caused by among other things, excess supply, and ripple effects from the pandemic. This is evidenced by the significant decline in drilling rigs, which is a metric that we monitor. According to Baker Hughes Inc., the average number of oil rotary rigs in operation during fiscal first quarter 2021 were 302, compared to 671 during the same three-month period in 2020.  Similarly, the average number of active gas rotary rigs during the three-month period ended March 31, 2021 was 90, compared to 112, during the same period in the prior year.  In the aggregate, the average rotary rigs in operation during the first quarter of 2021 is down by 392, or 50%, when compared to the same three-month period in 2020.  As such, early in 2020 we made a decision to focus a greater portion of our product development and marketing efforts on our OEM and PTG products offering. We believe the development of these lines of business should provide Hy-Tech an opportunity to generate new, additional sources of revenue in the future.   Further, we are optimistic that as travel restrictions and on-site visitation controls begin to ease, Hy-Tech’s revenue could increase.

 

 

The slight improvement in Florida Pneumatic’s gross margin was due primarily to product mix. The improved Automotive, Industrial and Retail revenue this quarter, compared to the same three-month period in 2020, contributed to the overall increase in gross margin. This improvement was partially offset by reduced manufacturing at Jiffy, which in turn resulted in under absorption of its manufacturing overhead.  As previously discussed, the COVID-19 pandemic continued to have an adverse effect on Hy-Tech, notably reducing revenue causing a reduction in volume through both manufacturing facilities.  The reduced manufacturing volume resulted in lower absorption of manufacturing costs during the first quarter of 2021, compared to the same three-month period in 2020.  Additionally, Hy-Tech recorded an increase in its obsolete, slow moving inventory charge during the first quarter of 2021, compared to the same period in 2020. Lastly, Hy-Tech’s overall product/customer mix negatively impacted its gross margin during the three-month period ended March 31, 2021.

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

Selling, general and administrative expenses (“SG&A”) include salaries and related costs, commissions, travel, administrative facilities, communications costs and promotional expenses for our direct sales and marketing staff, administrative and executive salaries and related benefits, legal, accounting, and other professional fees as well as general corporate overhead and certain engineering expenses.

During the first quarter of 2021, our SG&A declined to $4,991,000, from $5,690,000 incurred during the same three-month period in 2020.  The most significant factor contributing to the net decrease was a reduction of professional fees of $493,000. During the first quarter of 2020, we incurred more than $480,000 of expenses related to the relocation and set up the two gear businesses that were acquired in late 2019.  Additionally, we reduced our compensation expenses by $246,000.  Compensation expense is comprised of base salaries and wages, accrued performance-based bonus incentives and associated payroll taxes and employee benefits. A reduction in accrued performance-based bonus incentives was the bulk of the savings. Further, depreciation expense declined by $40,000. Partially offsetting the above reductions of operating expenses was an increase in variable expenses of $103,000, driven by improved revenue this quarter in certain sectors, compared to revenue in the same three-month period in the prior year. Variable expenses include among other things, commissions, freight out, travel, advertising, shipping supplies and warranty costs.

 

 

The Applicable Margin, as defined in our Credit Agreement was the same during the three-month periods ended March 31, 2021 and 2020. The average balance of short-term borrowings during the three-month periods ended March 31, 2021 and 2020, were $2,167,000 and $6,281,000, respectively. As the average balance of our short-term borrowings was significantly lower during the first three months of 2021, compared to the same three-month period in 2020, our short-term interest expense (revolver borrowings) declined.

In late April 2020, we borrowed approximately $2.9 million from BNB Bank as provided under the Coronavirus Aid, Relief and Economic Security (“CARES”) Act. The PPP Loan accrues interest at a rate of 1.0% per annum. Pursuant to the Flexibility Act, interest on any unforgiven amount is deferred until the forgiveness determination is made by the Small Business Administration (“SBA”). We will continue to accrue interest charges until a final determination is received from the SBA.

Lastly, we and our bank amended the Credit Agreement in February 2019. The debt issue costs are associated with such amendment.

INCOME TAXES

On March 27, 2020, the CARES Act was signed into law. The CARES Act includes provisions relating to refundable payroll tax credits, deferment of the employer portion of certain payroll taxes, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitation and technical corrections to tax depreciation methods for qualified improvement property.

At the end of each interim reporting period, the Company estimates its effective tax rate expected to be applied for the full year. This estimate is used to determine the income tax provision or benefit on a year-to-date basis and may change in subsequent interim periods. Accordingly, our effective tax rate for the three-month period ended March 31, 2021 was a tax benefit of 18.6%, compared to a tax benefit of 40.0% for the three-month period ended March 31, 2020. Included in the three-month period ended March 31, 2020 is a discrete item for net operating loss carrybacks under the CARES Act. The effective tax rates for all periods presented were impacted primarily by state taxes, and non-deductible expenses.

LIQUIDITY AND CAPITAL RESOURCES

We monitor such metrics as days’ sales outstanding, inventory requirements, inventory turns, estimated future purchasing requirements and capital expenditures to project liquidity needs, as well as evaluate return on assets. Our primary sources of funds are operating cash flows, existing working capital and our Revolver Loan (“Revolver”) with our Bank.

We gauge our liquidity and financial stability by various measurements, some of which are shown in the following table:

 

Credit facility

In October 2010, the Company entered into a Loan and Security Agreement (“Credit Agreement”) with an affiliate of Capital One, National Association (“Capital One” or the “Bank”). The Credit Agreement, as amended and restated in April 2017 and further amended from time-to-time, among other things, provides the ability to borrow funds under a $16,000,000 revolver line (“Revolver”), subject to certain borrowing base criteria. Additionally, there is a $2,000,000 line for capital expenditures (“Capex Loan”), with $1,600,000 available for future borrowings. Revolver and Capex Loan borrowings are secured by the Company’s accounts receivable, inventory, equipment, and real property, among other things. P&F and certain of its subsidiaries are borrowers under the Credit Agreement, and their obligations are cross guaranteed by certain other subsidiaries. The Credit Agreement expires on February 8, 2024.

At the Company’s option, Revolver borrowings bear interest at either London Interbank Offered Rate (“LIBOR”) or the Base Rate, as the term is defined in the Credit Agreement, plus an Applicable Margin, as defined in the Credit Agreement. The Company is subject to limitations on the number of LIBOR borrowings.

The Company provides Capital One with monthly borrowing base certificates, and in certain circumstances, it is required to deliver monthly financial statements and certificates of compliance with various financial covenants. Should an event of default occur the interest rate would increase by two percent per annum during the period of default, in addition to other remedies provided to Capital One.

At March 31, 2021, short-term or Revolver borrowing was $3,481,000, compared to $1,374,000, at December 31, 2020. Applicable Margin Rates at March 31, 2021 and December 31, 2020 for LIBOR and Base Rates were 1.50% and 0.50%, respectively. Additionally, at March 31, 2021 and December 31, 2020, there was approximately $12,011,000 and $11,971,000, respectively, available to the Company under its Revolver arrangement.

The average balance of short-term borrowings from our Bank during the three-month period ended March 31, 2021 was $2,167,000, compared to $6,281,000, for the same three-month periods in 2020.

Payroll Protection Program Loan

On April 20, 2020, we received a $2.9 million PPP Loan, as provided pursuant to the CARES Act. This loan obtained from BNB Bank is unsecured and is guaranteed by the SBA.

Cash flows

During the three-month period ended March 31, 2021, our net cash increased to $1,047,000 from $904,000 on December 31, 2020. Our total bank debt, which includes borrowings under the CARES Act, at March 31, 2021 was $6,410,000 compared to $4,303,000 at December 31, 2020. The total debt to total book capitalization (total debt divided by total debt plus equity); at March 31, 2021 was 13.4% compared to 9.4% at December 31, 2020.

During the three-month period ended March 31, 2021, we used $68,000 for capital expenditures, compared to $658,000 during the same period in the prior year. Capital expenditures for the balance of 2021 is expected to be approximately $800,000, some of which may be financed through our credit facilities with Capital One Bank or financed through independent third-party financial institutions. The remaining 2021 capital expenditures will likely be for machinery and equipment, tooling, and computer hardware and software.

Customer concentration

At March 31, 2021 and December 31, 2020, accounts receivable from The Home Depot (“THD”) was 36.8% and 38.0%, respectively, of total accounts receivable. Revenue from THD during the three-month period ended March 31, 2021 and 2020 were 27.2% and 22.4% respectively, of total revenue.  Additionally, during the three-month periods ended March 31, 2021 and 2020, revenue attributable to Amazon.Com, Inc (“Amazon”) was 12.1% and 8.6%, respectively of the Company’s total net revenue.  Accounts receivable attributable to Amazon at March 31, 2021 and December 31, 2020 was 12.3% and 15.8%, respectively of total net accounts receivable. There were no other customers that accounted for more than 10% of consolidated revenue or accounts receivable during the three-month periods ended March 31, 2021 or 2020.

ABOUT P&F INDUSTRIES, INC

P&F Industries, Inc., through its wholly owned subsidiaries, is a leading manufacturer and importer of air-powered tools and accessories sold principally to the aerospace, industrial, automotive, and retail markets.  P&F’s products are sold under its own trademarks, as well as under the private labels of major manufacturers and retailers.

OTHER INFORMATION

P&F Industries Inc. has scheduled a conference call for May 13, 2021, at 11:00 A.M., Eastern Time, to discuss its first quarter 2021 results and financial condition.  Investors and other interested parties who wish to listen to or participate can dial 1-800-353-6461. It is suggested you call at least 10 minutes prior to the call commencement.  For those who cannot listen to the live broadcast, a replay of the call will also be available on the Company’s website beginning on or about May 14, 2021.

Forward Looking Statement

The Private Securities Litigation Reform Act of 1995 (the “Reform Act”) provides a safe harbor for forward-looking statements made by or on behalf of P&F Industries, Inc. and subsidiaries (“P&F”, or the “Company”). P&F and its representatives may, from time-to-time, make written or verbal forward-looking statements, including statements contained in the Company’s filings with the Securities and Exchange Commission and in its reports to shareholders. Generally, the inclusion of the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “will,” “may,” “would,” “could,” “should,” and their opposites and similar expressions identify statements that constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and that are intended to come within the safe harbor protection provided by those sections. Any forward-looking statements contained herein, including those related to the Company’s future performance, are based upon the Company’s historical performance and on current plans, estimates and expectations. All forward-looking statements involve risks and uncertainties. These risks and uncertainties could cause the Company’s actual results for all or part the 2021 fiscal year and beyond to differ materially from those expressed in any forward-looking statement made by or on behalf of the Company for a number of reasons including, but not limited to:

and those other risks and uncertainties described in its Annual Report on Form 10-K for the year ended December 31, 2020 (“2020 Form 10-K”), its Quarterly Reports on Form 10-Q, and its other reports and statements filed by the Company with the Securities and Exchange Commission. Forward-looking statements speak only as of the date on which they are made. The Company undertakes no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future developments or otherwise. The Company cautions you against relying on any of these forward-looking statements.

 

 

 

 

 

 

 

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SOURCE P&F Industries, Inc.

CAMBRIDGE, Mass., May 13, 2021 /PRNewswire/ — According to Forrester’s (Nasdaq: FORR) Trust Imperative research, a slew of corporate and governmental scandals and an influx of misinformation have destabilized the public’s trust in many traditional institutions. As consumers lose trust in governments and the media, they redirect their trust to other entities — yielding an unprecedented opportunity for businesses to boost trust across their stakeholder ecosystem. Forrester’s new Trust Assessment and Scorecard will help brands develop a systematic plan to cultivate and safeguard trust to enhance their organization’s performance.

According to Forrester, more consumers across the US, UK, France, and India are willing to trust businesses than their national government, their local government, and the media. Additionally, consumers are giving brands permission to play a bigger role in their well-being: Nearly half of US (47%) and UK (48%) consumers rely on brands for overall advice on how to stay healthy, and about a third (32%) of US respondents and 33% of UK respondents look for brand guidance on how to manage stress and anxiety. Similarly, if consumers observe that a company has contradicted its values, 18% of US, 26% of French, and 23% of Singaporean consumers say they would stop doing business with that company permanently.

With consumers holding the organizations they do business with and work for to new standards of integrity, dependability, and social responsibility, business leaders must detect and understand this new pattern of trust. However, this trust transformation is occurring in the blind spots of the C-suite. In its latest research, Forrester outlines seven key levers that make the concept of trust concrete and provides actionable recommendations to help executives build trust for everyone they serve — customers, employees, and partners. The impact of each trust lever varies depending on the business.

Highlights include:

• Customers, employees, and partners will have their own trust perspective
  . Different stakeholders have different interactions with a company and as such will have different perspectives on what a firm needs to do to earn their trust. For example, in the US, the levers of empathy, accountability, and dependability are the most important to driving trust with employees.

• Regional differences are a key factor
  . For a service-oriented company such as an airline, hotel, or bank, the most important lever in driving trust for consumers is consistency in the US, empathy in France, and dependability in India, Singapore, and the UK.

• Each audience needs trust levers that are relevant and contextual
  . Corporate social responsibility (CSR) reports and security certifications help make a partner feel more comfortable doing business with an organization but do not increase consumers’ trust. To make the most positive impact, trust should manifest itself in the way and in the measures most relevant for each audience.

• Trust shapes business ecosystems with a unique set of leading levers
  . The brands that an organization affiliates with can waste or increase their trust capital. Organizations must leverage the levers of trust to optimize how partners trust them. The type of products or services they exchange and the overall risk related to the relationship are important variables.

“Trust is not an abstract concept — there are known levers that can build and strengthen trust with stakeholders,” said Sharyn Leaver, senior vice president of research at Forrester. “Companies that earn trust among customers, employees, and partners drive revenue-generating loyalty behaviors like retention and advocacy. Highly trusted firms also have greater growth potential, as their customers are more likely to experiment with new offerings, their employees are more likely to be productive, and their partners are more likely to facilitate faster routes to market. Forrester’s Trust Assessment and Scorecard will help brands cultivate their trust capital so that trust becomes an actionable strategy rather than an inspirational goal.”

Resources:

• Download the Forrester report “The Trust Imperative” to learn about the seven levers of trust (client access required).
• The new trust imperative and related research will be available in Forrester Decisions, a new portfolio of research services tailored to leaders’ most pressing priorities.
• Watch this video and read this blog to learn how to strengthen trust with your key stakeholders.
• Leaders can learn more about the new trust imperative at Forrester’s upcoming live virtual experience, CX North America. Register to attend CX North America.

About Forrester
Forrester (Nasdaq: FORR) is one of the most influential research and advisory firms in the world. We help leaders across technology, marketing, customer experience, product, and sales functions use customer obsession to accelerate growth. Through Forrester’s proprietary research, consulting, and events, leaders from around the globe are empowered to be bold at work — to navigate change and put their customers at the center of their leadership, strategy, and operations. Our unique insights are grounded in annual surveys of more than 675,000 consumers, business leaders, and technology leaders worldwide; rigorous and objective research methodologies, including Forrester Wave™ evaluations; over 52 million real-time feedback votes; and the shared wisdom of our clients. To learn more, visit Forrester.com.

Media Contact:
Shweta Agarwal
(617) 613-6805
[email protected]

 

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SOURCE Forrester