Tandy Leather Factory – Renewal of Share Repurchase Program
On September 17, 2024, the Board of Directors of Tandy Leather Factory (TLF) approved the renewal of the company's open market share repurchase program. The previously approved program, adopted in August 2022, had expired on August 31, 2024. Under the renewed program, the company may repurchase up to $5.0m of the company's common stock in open market transactions until or before September 30, 2026. TLF currently has a net cash balance of $11.5m and is expected to receive a significant cash inflow in the near future if they find a buyer for their large HQ property.
TLF currently has a market capitalization of $34.4m, so the buyback program allows for a total repurchase of 14.5% of NOSH. Currently, NOSH stands at 8.4m and has unfortunately been stagnant since 2022. Over the past ten years, the company has spent $14.4m on repurchases, of which $9.8m was unfortunately spent before 2019, when the stock was valued at over 1x TB.
Below is a brief summary of repurchase activity by year since 2014:
2014: No share repurchases.
2015: The board approved a repurchase program in August 2015, allowing for the purchase of up to 1.2 million shares at prevailing market prices through August 2016. During the year, the company repurchased 529,000 shares at an average price of $7.01, totaling $3.7m.
2016: The company repurchased 520,482 shares at an average price of $7.06.
2017: No share repurchases.
2018: The company repurchased 243,387 shares at an average price of $6.79.
2019: The company repurchased 131,782 shares at an average price of $5.58.
2020: No shares were repurchased during the year. The board approved a new program on August 9, 2020, to repurchase up to $5.0m of the company's shares between August 2020 and July 2022.
2021: The company repurchased 500,000 shares in January 2021 from an institutional investor in a private transaction at a price of $3.35 per share for a total of $1.7m. Additionally, 212,690 shares were repurchased in December from another institutional investor at a price of $5.00 per share for a total of $1.1m.
2022: The company repurchased 359,500 shares in April 2022 at a price of $5.00 per share, totaling $1.8m. An additional 600 shares were repurchased in July 2022 in open market transactions.
2023: No further repurchases were reported during 2023, and $5.0m remained available for repurchase under the program approved in August 2022.
(Disclaimer: at the time of publication, the writer owns shares in the mentioned company)