P&F Industries Reports Results For The Year Ended December 31, 2012

     P&F Industries Reports Results For The Year Ended December 31, 2012

PR Newswire

MELVILLE, N.Y., March 27, 2013

MELVILLE, N.Y., March 27, 2013 /PRNewswire/ --P&F Industries, Inc. (Nasdaq:
PFIN) today announced its results of operations for the year ended December
31, 2012. The Company is reporting full year 2012 net revenue of $59,871,000,
compared to $54,541,000 in 2011. The Company is also reporting full year 2012
net income from continuing operations of $5,450,000, compared to $1,909,000,
in 2011. Included in the Company's 2012 net income from continuing operations
is a net deferred tax benefit of $2,250,000, which resulted from a reduction
in the valuation allowance on its deferred tax assets, partially offset by the
utilization of deferred tax assets in 2012.

The Company reported basic and diluted earnings (loss) per common share of:

                                     For the years ended December 31,
                                     2012                2011
Basic earnings (loss) per share
Continuing operations                   $   1.50         $  0.53
Discontinued operations                     (0.01)          0.18
Net income                              $   1.49         $  0.71
Diluted earnings (loss) per share
Continuing operations                   $   1.45         $  0.52
Discontinued operations                     (0.01)          0.17
Net income                              $   1.44         $  0.69
Weighted average common shares
outstanding:
Basic                                       3,641,000       3,615,000
Diluted                                     3,748,000       3,698,000

Richard Horowitz, the Company's Chairman of the Board, Chief Executive Officer
and President commented, "I am extremely pleased to report that we were able
to increase consolidated net revenue more than $5.3 million or 9.8%, during
2012, compared to the prior year. Additionally, when comparing 2012 to 2011,
P&F was able to improve its income before taxes from continuing operations
more than $1.3 million, or 67%, despite a generally weak economic environment
in the United States." Mr. Horowitz added, "In December 2012, we amended our
existing credit agreement with Capital One Leverage Finance. This amendment,
among other things, extended the maturity date of the credit facility to
December 17, 2017; increased the total commitment; increased maximum
borrowings under the terms of the revolving credit line and lowered the margin
rates added to our borrowings. Additionally, I am pleased to announce that in
late December 2012 we commenced our initial distribution of pneumatic air
tools to The Home Depot through our Florida Pneumatic subsidiary." Mr.
Horowitz concluded his remarks stating, "All employees throughout our Company
continue to remain focused on successfully expanding our respective market
presence, as well as increasing profits without sacrificing quality or
customer service." 

A summary of P&F's results of operations for the three and twelve months ended
December 31, 2012 and 2011 follows.

REVENUE:

Consolidated

                   Three months ended December 31,
                   2012               2011           Variance       Variance
                                                     $              %
Tools
Florida Pneumatic  $  5,397,000       $ 5,592,000    $ (195,000)    (3.5)  %
Hy-Tech               4,072,000         3,896,000      176,000      4.5
Tools Total           9,469,000         9,488,000      (19,000)     (0.2)
Hardware
Hardware Total        3,222,000         2,386,000      836,000      35.0
Consolidated       $  12,691,000      $ 11,874,000   $ 817,000      6.9    %



                      Year ended December 31,
                      2012           2011           Variance       Variance
Tools
 Florida Pneumatic  $ 25,484,000   $ 23,455,000   $ 2,029,000    8.7   %
 Hy-Tech              16,657,000     16,394,000     263,000      1.6
 Tools Total          42,141,000     39,849,000     2,292,000    5.8
Hardware
 Hardware Total       17,730,000     14,692,000     3,038,000    20.7
Consolidated          $ 59,871,000   $ 54,541,000   $ 5,330,000    9.8   %

Florida Pneumatic Manufacturing Corporation

An analysis of Florida Pneumatic's revenue for the three and twelve-month
periods ended December 31, 2012 and 2011 is as follows:

                    Three months ended December 31,
                    2012                      2011                      Increase (decrease)
                                  Percent                  Percent
                    Revenue                   Revenue                   $             %
                                  of                        of
                                  revenue                   revenue
Retail customers    $ 2,979,000   55.2     %  $ 2,970,000   53.1     %  $ 9,000       0.3     %
Industrial/catalog    1,754,000   32.5          1,682,000   30.1          72,000      4.3
Automotive            233,000     4.3           375,000     6.7           (142,000)   (37.9)
Other                 431,000     8.0           565,000     10.1          (134,000)   (23.7)
Total               $ 5,397,000   100.0    %  $ 5,592,000   100.0    %  $ (195,000)   (3.5)   %



                    Year Ended December 31,
                    2012                       2011                       Increase(decrease)
                                   Percent                   Percent
                    Revenue                    Revenue                    $             %
                                   of                         of
                                   revenue                    revenue
Retail customers    $ 14,499,000     56.9   %  $ 13,078,000     55.8   %  $ 1,421,000    10.9   %
Industrial/catalog    7,813,000      30.7        6,855,000      29.2        958,000      14.0
Automotive            1,071,000      4.2         1,297,000      5.5         (226,000)    (17.4)
Other                 2,101,000      8.2         2,225,000      9.5         (124,000)    (5.6)
Total               $ 25,484,000     100.0  %  $ 23,455,000     100.0  %  $ 2,029,000    8.7    %

During the fourth quarter of 2012, Florida Pneumatic commenced its initial
product delivery, or roll-out to its new retail customer, The Home Depot
("THD"). Revenue from its other retail customer, Sears Holdings Corporation
("Sears"), declined when compared to the same three month period in 2011. The
decline in Sears' revenue is partially due to the timing of seasonal orders
delivered in the third quarter of 2012, compared to the fourth quarter of
2011. Florida Pneumatic continued its growth in the higher gross margin
industrial/catalog sector. Fourth quarter of 2012 Automotive product revenue,
as well as Other revenue, which includes revenue from its Berkley, air filters
and OEM lines, declined when compared to the same period in 2011, due
primarily to its decision to place greater emphasis on expanding its Retail
and Industrial/catalog lines.

With respect to the full-year 2012, Florida Pneumatic continued to expand its
presence in the higher gross margin, industrial/catalog sector. The Company
intends to continue to expand its marketing effort in this sector of the
pneumatic air tool market. As Florida Pneumatic commenced shipments to THD
during the latter half of 2012, revenue from its Retail customers, in the
aggregate, improved 10.9 % when comparing 2012 to 2011. This increase was due
primarily to the THD revenue, offset by a reduction in Sears' revenue of
certain specialty, promotional and basic items. As noted previously, the
decrease in Florida Pneumatic's Other and Automotive revenue were due in large
part to its decision to focus their efforts on expansion of the Retail and
Industrial/catalog product lines.

Hy-Tech Machines Inc.

Hy-Tech creates quality replacement parts for pneumatic tools, markets its own
value-added line of air tools and distributes a complementary line of sockets
("ATP"). Hy-Tech manufactures and markets a line of products that primarily
focus on power generation, mining, construction and general industrial
manufacturing markets ("Hy-Tech Machine").

An analysis of Hy-Tech's revenue for the three and twelve-month periods ended
December 31, 2012 and 2011 is as follows:

          Three months ended December 31,
          2012                      2011                      Increase (decrease)
                        Percent                  Percent
          Revenue                   Revenue                   $            %
                        of                        of
                        revenue                   revenue
ATP       $ 2,592,000   63.7     %  $ 2,477,000   63.6     %  $ 115,000    4.6     %
Hy-Tech     397,000     9.7           448,000     11.5          (51,000)   (11.4)
Machine
Major       1,014,000   24.9          892,000     22.9          122,000    13.7
customer
Other       69,000      1.7           79,000      2.0           (10,000)   (12.7)
Total     $ 4,072,000   100.0    %  $ 3,896,000   100.0    %  $ 176,000    4.5     %



          Year Ended December 31,
          2012                      2011                      Increase (decrease)
                         Percent                   Percent
          Revenue                   Revenue                   $             %
                         of                        of
                         revenue                   revenue
ATP       $ 10,840,000     65.1  %  $ 11,081,000     67.6  %  $ (241,000)    (2.2)%
Hy-Tech     1,664,000      10.0       1,922,000      11.7       (258,000)    (13.4)
Machine
Major       3,787,000      22.7       3,065,000      18.7       722,000      23.6
customer
Other       366,000        2.2        326,000        2.0        40,000       12.3
Total     $ 16,657,000     100.0 %  $ 16,394,000     100.0 %  $ 263,000      1.6    %

Hy-Tech's revenue from its Major customer, as well as revenue from its ATP
product line improved when comparing its fourth quarter of 2012 revenue to the
same period in the prior year. We believe both of these increases are due
primarily to improving general global economic conditions in this sector
during 2012, compared to the prior year. Reductions in revenue from its
Hy-Tech Machine and Other product lines partially offset the increase.

Hy-Tech's full-year 2012 revenue improved 1.6%, when compared to 2011. The
increase in revenue from its Major customer, we believe, is due primarily to
improved global economic conditions in this sector, which favorably impacted
on this customer. ATP revenue declined, due primarily to a one-time
significant order for sockets in 2011, which did not repeat in 2012. The
decline in Hy-Tech Machine revenue is due in large part to management's
decision to assign additional labor and overhead to the manufacturing for, and
servicing of, its Major customer. 

Nationwide Industries Inc.

An analysis of Nationwide's revenue for the three and twelve-month periods
ended December 31, 2012 and 2011 is as follows:

          Three months ended December 31,
          2012                      2011                      Increase (decrease)
                        Percent                  Percent
          Revenue                   Revenue                   $            %
                        of                        of
                        revenue                   revenue
Fence
and gate  $ 2,061,000   64.0     %  $ 1,356,000   56.8     %  $ 705,000    52.0   %
hardware
Kitchen     528,000     16.4          553,000     23.2          (25,000)   (4.5)
and bath
OEM         364,000     11.3          276,000     11.6          88,000     31.9
Patio       269,000     8.3           201,000     8.4           68,000     33.8
Total     $ 3,222,000   100.0    %  $ 2,386,000   100.0    %  $ 836,000    35.0   %



          Year ended December 31,
          2012                       2011                       Increase (decrease)
                         Percent                   Percent
          Revenue                    Revenue                    $             %
                         of                         of
                         revenue                    revenue
Fence
and gate  $ 12,265,000   69.2     %  $ 9,630,000    65.5     %  $ 2,635,000   27.4  %
hardware
Kitchen     2,709,000    15.3          2,606,000    17.8          103,000     4.0
and bath
OEM         1,599,000    9.0           1,571,000    10.7          28,000      1.8
Patio       1,157,000    6.5           885,000      6.0           272,000     30.7
Total     $ 17,730,000   100.0    %  $ 14,692,000   100.0    %  $ 3,038,000   20.7  %

Fence and gate hardware continues to be the strength behind Nationwide's
revenue growth, with fourth quarter of 2012 exceeding the same period in 2011
by 52.0%. This improvement is due primarily to the expanded customer base and
new product releases. The increase in patio revenue is due primarily to
increased activity in the sale of foreclosed houses occurring in Florida. When
comparing the fourth quarter of 2012 to the same period in 2011, revenue
increased at its OEM product line primarily due to certain orders being
delayed by its customers from the fourth quarter 2011 to the first quarter of
2012. During the fourth quarter of 2012, Kitchen and bath encountered a
softening of the market.

When comparing the full-year 2012 to 2011, Nationwide was able to increase
revenue throughout its suite of product lines. However, nearly 87% of
Nationwide's revenue growth was generated from its fence and gate hardware
product line, which was due primarily to the introduction of new products, as
well as to expanded marketing efforts and increased customer base.
Nationwide's kitchen and bath product line revenue improved slightly. Despite
significant pricing pressure, along with a dwindling market and other factors,
OEM product line revenue for the full year 2012 recorded a minimal increase.
As a result, it is likely we will continue to place less emphasis on this
product line. Patio revenue during the full-year 2012, increased when
compared to the same period in 2011, due primarily to an increase in the sale
of foreclosed housing units, which tend to require repair/ replacement of
patio enclosures. As fence and gate hardware continue to be the primary
contributor to Nationwide's revenue growth, we intend to continue our current
strategy, which is to develop new, innovative fence and gate hardware products
and accessories, as well as to continue to expand our national market
campaign.

GROSS MARGIN

                   ThreemonthsendedDecember 31,    Increase (decrease)
                   2012               2011            Amount           %
Tools              $  3,663,000       $  3,482,000    $ 181,000         5.2  %
As % of                                                         %
respective            38.7       %       36.7      %    2.0     pts.
revenue
Hardware           $  1,154,000       $  791,000      $ 363,000         45.9 %
As % of                                                         %
respective            35.8       %       33.2      %    2.6     pts.
revenue
Consolidated       $  4,817,000       $  4,273,000    $ 544,000         12.7 %
As % of                                                         %
respective            38.0       %       36.0      %    2.0     pts.
revenue



                   Year Ended December 31,         Increase (decrease)
                   2012            2011            Amount               %
Tools              $ 15,416,000    $ 14,631,000    $ 785,000            5.4  %
As % of
respective           36.6       %    36.7       %    (0.1)     % pts.
revenue
Hardware           $ 6,726,000     $ 5,614,000     $ 1,112,000          19.8 %
As % of
respective           37.9       %    38.2       %    (0.3)     %pts.
revenue
Consolidated       $ 22,142,000    $ 20,245,000    $ 1,897,000          9.4  %
As % of
respective           37.0       %    37.1       %    (0.1)     %pts.
revenue



                 ThreemonthsendedDecember 31,    Increase (decrease)
                 2012               2011            Amount              %
Florida          $  2,019,000       $  1,905,000    $ 114,000            6.0 %
Pneumatic
As % of
respective          37.4       %       34.1      %    3.3     % pts.
revenue
Hy-Tech          $  1,644,000       $  1,577,000    $ 67,000             4.2 %
As % of
respective          40.4       %       40.5      %    (0.1)   % pts.
revenue
Total Tools      $  3,663,000       $  3,482,000    $ 181,000            5.2 %
As % of
respective          38.7       %       36.7      %    2.0     % pts.
revenue



                     Year Ended December 31,         Increase (decrease)
                     2012            2011            Amount             %
Florida Pneumatic    $ 8,482,000     $ 7,875,000     $ 607,000           7.7 %
As % of respective     33.3       %    33.6       %    (0.3)   % pts.
revenue
Hy-Tech              $ 6,934,000     $ 6,756,000     $ 178,000           2.6 %
As % of respective     41.6       %    41.2       %    0.4     % pts.
revenue
Total Tools          $ 15,416,000    $ 14,631,000    $ 785,000           5.4 %
As % of respective     36.6       %    36.7       %    (0.1)   % pts.
revenue

When comparing the fourth quarters of 2012 and 2011, gross margins generated
by P&F's Tools segment increased 2.0 percentage points. Combined with improved
revenue, gross profit increased $181,000. Specifically, gross margins at
Florida Pneumatic increased due primarily to: (1) improved absorption of
warehouse and manufacturing overhead during the fourth quarter of 2012,
compared to the same period in 2011 due to the increase in inventory for THD,
and (2) product mix. When comparing the three-month periods ended December
31, 2012 and 2011, Hy-Tech's gross margin declined slightly, mostly due to
product mix, however, as revenue increased over last year, its gross profit
improved slightly.

When comparing the full years of 2012 and 2011, gross margins generated by
P&F's Tools segment decreased 0.1 percentage points, however gross profit
increased $785,000. Florida Pneumatic's gross margin decreased when compared
to the same period in 2011, primarily due to the impact of the increase in the
lower gross margin retail sales on its overall gross margin.However, as the
result of the increase in revenue, Florida Pneumatic's gross profit improved
by $607,000, compared to the same period a year ago. Hy-Tech increased its
gross margin and gross profit primarily through product mix, as well as
through improved cost of manufacturing.

Nationwide's gross margin for the fourth quarter of 2012 increased 2.6
percentage points, compared to the same period in 2011. This increase is due
primarily to a change in product mix and to a lesser extent, improved burden
absorption, due to increased volume through the warehouse. However, Nationwide
continues to incur increases in overseas raw material costs, such as aluminum,
copper and magnets, as well as increased overseas labor costs. With improved
revenue in the fourth quarter of 2012, along with stronger gross margins,
Nationwide increased its gross profit by $363,000 when compared to the same
period in 2011.

Despite a year over year decline of 0.3 percentage points in its gross margin,
Nationwide's gross profit improved nearly 20%. The most significant factors
contributing to the slight decline in its gross margin were increases in
overseas raw material costs, such as aluminum, copper and magnets, as well as
increased overseas labor costs. Additionally, during 2012, Nationwide elected
to secure certain higher volume, slightly lower priced fence and gate hardware
customers. Gross margins on its OEM and Kitchen and bath product lines
declined in 2012 compared to 2011, due primarily to significant pricing
pressures, along with dwindling markets and other factors.

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 amortization and depreciation and
general corporate overhead and certain engineering expenses.

SG&A during the fourth quarter of 2012 was $4,188,000, compared to $4,033,000
for the same three-month period in 2011. Stated as a percentage of revenue,
SG&A was 33.0%, compared to 34.0% during the three-month periods ended
December 31, 2012 and 2011, respectively. Significant line items include an
increase of $384,000 in compensation, which is comprised of base salaries and
wages, performance-based bonus incentives, as well as associated payroll taxes
and employee benefits, partially offset by reductions in corporate overhead of
$200,000, which consists primarily of legal, accounting, general insurance,
banking fees, and other corporate professional service fees.

SG&A for 2012 was $18,281,000, compared to $17,491,000 incurred in
2011.Stated as a percentage of revenue, our SG&A for 2012 was 30.5%,
compared to 32.1% during the prior year. Although our revenue increased more
than $5,300,000, our variable expenses, which consist primarily of
commissions, freight out, warranty, advertising and promotional costs, and
travel and entertainment costs, increased an aggregate of $71,000.
Compensation, which includes wages, associated payroll taxes and employee
benefits and performance-based bonus incentives, which are driven primarily by
net earnings, increased $993,000. Additionally, during the second quarter of
2012, we recorded a charge of $166,000 for estimated potential penalties, and
related fees, and expenses in connection with unpaid import duty relating to
certain products imported by Florida Pneumatic during the period January 1,
2009 through June 19, 2012. These increases were partially offset by
reductions in corporate overhead, which consists primarily of legal,
accounting, general insurance, banking fees, and other corporate professional
service fees of $338,000 and a decrease of $69,000 in rent and utilities, due
in part to a new lease agreement covering our corporate offices in New York.

INTEREST

                                            Threemonthsended
                                            December 31,
                                            2012        2011       Decrease
Short-term borrowings                       $ 47,000    $ 67,000   $ (20,000)
Term loans, including Capital Expenditure     78,000      90,000     (12,000)
Term Loans
Subordinated loans                            ---         6,000      (6,000)
Other                                         ---         4,000      (4,000)
Total                                       $ 125,000   $ 167,000  $ (42,000)



                                        Year Ended December 31,
                                        2012         2011       Decrease
Short-term borrowings                   $  190,000   $ 315,000  $ (125,000)
Term loans, including Capital              325,000     359,000    (34,000)
Expenditure Term Loans
Subordinated loans                         11,000      44,000     (33,000)
Other - net                                ---         38,000     (38,000)
Total                                   $  526,000   $ 756,000  $ (230,000)

The Company noted that the decrease in the average balance of short-term
borrowings during the three-month period ended December 31, 2012, compared to
the same period in the prior year, was the key factor contributing to the
reduction in interest expense. The reduction of $12,000 of interest on its
Term Loans consisted of lower interest expense on its Term Loan, partially
offset by interest expense incurred on the Capital Expenditure Term Loans
("Capex loans") that were created during 2012. Additionally, during 2011, P&F
repaid $500,000 of the Subordinated loans. In July 2012, P&F repaid the
remaining $250,000 of the Subordinated loans from its Chief Executive Officer.
The repayment of these Subordinated loans caused the Company not to have any
interest expense during the fourth quarter of 2012, compared to interest
expense of $6,000 incurred in the fourth quarter of 2011. Further, in 2011,
P&F repaid the balance owed to the sellers of Hy-Tech; as a result, there was
no interest expense attributable to this debt during the fourth quarter of
2012, compared to $4,000 in the fourth quarter of 2011.

The most significant factor contributing to the reduction in interest expense
during 2012, compared to 2011, was the reduction in our short-term borrowings
during the comparative periods. The average balance of short-term borrowings
during 2012 was $5,981,000, compared to $8,138,000 in 2011. Despite $900,000
of Capex loans during 2012, P&F's interest expense, in the aggregate, from
both the Term loans and Capex loans, decreased a net $34,000. In 2011, P&F
repaid the balance owed to the sellers of Hy-Tech; as a result, there was no
interest expense attributable to this debt in 2012, compared to $38,000
interest paid in 2011. Further, in 2011, P&F repaid $500,000 of the
Subordinated loans, which effectively reduced their interest expense in 2012
attributable to these Subordinated loans, to $11,000, compared to $44,000 in
2011. Additionally, in November 2011 and December 2012, P&F and Capital One
Leverage Finance Corporation, entered into Amendments to the Credit Agreement,
which, among other things, lowered the Applicable Margin rates that Capital
One Leverage Finance Corporation adds to their borrowings.

INCOME TAX EXPENSE

During 2012, P&F recorded a net deferred tax benefit of $2,243,000, resulting
from a reduction in the valuation allowance on its deferred tax assets, which
was partially offset by the utilization of deferred tax assets in 2012. A
deferred tax benefit of $2,250,000 was attributable to the Company's
continuing operations, and a deferred tax expense of $7,000 was attributable
to discontinued operations. P&F believes it was appropriate to reduce the
valuation allowance, based upon evidence, such as profitability, for the years
ended December 31, 2010, 2011 and 2012, as well as projected future sources of
taxable income. As a result, its effective tax rate for the twelve-month
period ended December 31, 2012, is not directly correlated to the amount of
our pretax income, and is not comparable to the effective tax rate for the
same period in the prior year. P&F still maintains a full valuation allowance
on certain state deferred tax assets.

The effective tax rates applicable to income from continuing operations for
the years ended December 31, 2012 and 2011, respectively, were (63.4)% and
4.5%.The primary factor affecting the 2012 effective tax rate, was the
partial reversal of the valuation allowance, as described above. The primary
factor affecting the 2011 effective tax rate was the decrease in the valuation
allowance, resulting from the utilization of a portion of net deferred tax
assets.

LIQUIDITY AND CAPITAL RESOURCES

On December 19, 2012, the Company and Capital One Leverage Finance Corporation
entered into an Amendment to its Loan and Security Agreement. This Amendment,
among other things:

  oIncreased the total commitment from $24,500,000 to $29,453,000.
  oExtended the term of the Credit Agreement through December 19, 2017, the
    Loan Maturity Date, on which date all principal, interest and other
    amounts owing with respect to this Credit Agreement shall be due and
    payable in full.
  oIncreased the maximum aggregate amount of borrowings on the Revolver from
    $15,910,000 to $20,000,000.
  oIncreased the Term Loan, to $7,000,000 from $6,090,000, the original
    principal amount, of which $4,611,000 was outstanding immediately prior to
    the effectiveness of this Amendment.
  oExtended the rate of amortization on the Term Loan from 20 to 25 years.
  oIncreased the amount of borrowings for permitted Capital Expenditures to
    $2,453,000, from $1,601,000, which was the net amount available to borrow
    immediately preceding this Amendment.
  oReduced the unused line fee to 0.375% from a range of 0.5% to 0.75%.
  oRemoved the requirement of a prepayment on the Term Loan from Excess Cash
    Flows, as defined in the Credit Agreement. (In 2012, we were required to
    make a $633,000 prepayment toward our Term Loan.)
  oReduced the Applicable Margin on all borrowings. The Applicable Margin on
    Revolver borrowings is based on the corresponding Leverage Ratio (as
    defined in the Credit Agreement). The Applicable Margin for each type of
    borrowing is as follows:

Type of borrowing  New Applicable Margin  Old Applicable Margin
 Revolver
 Base rate      .50% to 1.50%          1.50% to 2.50%
 LIBOR          1.50% to 2.50%         2.50% to 3.50%
 Term Loan
 Base rate      2.00%                  4.75%
 LIBOR          3.00%                  5.75%
 Capex Term Loan
 Base rate      2.00%                  2.50%
 LIBOR          3.00%                  3.50%

The percent of debt to total book capitalization (debt plus equity) decreased
5.1 percentage points to 23.2% at December 31, 2012, from 28.3% at December
31, 2011.

Capital spending during the year ended December 31, 2012, was $1,969,000,
compared to $598,000 in 2011. In 2012, P&F purchased two new computer
numerically controlled machines (CNC), totaling $1,260,000. Capital
expenditures currently planned for 2013 are approximately $1,200,000, most of
which the Company expects will be financed through its credit facility and
cash flows. The majority of the projected 2013 capital expenditures will
relate to new equipment at Hy-Tech, which it believes will increase output,
while reducing manufacturing costs. A portion of the planned capital
expenditures will be for tooling required for new product development at all
three subsidiaries.

OTHER INFORMATION

General. P&F Industries has scheduled a conference call for today, March 27,
2013, at 11:00 A.M., Eastern Time to discuss its 2012 results. Investors and
other interested parties can listen to the call by dialing 866-796-3865, or
via a live web cast accessible at www.pfina.com. To listen to the web cast,
please register and download audio software at the site at least 15 minutes
prior to the call. For those who cannot listen to the live broadcast, a
replay of the call will also be available on the Company's web-site beginning
on or about March 28, 2013.

P&F Industries, Inc., through its two wholly owned operating subsidiaries,
Continental Tool Group, Inc. and Countrywide Hardware, Inc., manufactures
and/or imports air-powered tools sold principally to the industrial, retail
and automotive markets, as well as various residential hardware such as,
fencing hardware, door and window hardware, and kitchen and bath hardware.
P&F's products are sold under their own trademarks, as well as under the
private labels of major manufacturers and retailers.

Safe Harbor Statement. This is a Safe-Harbor Statement under the Private
Securities Litigation Reform Act of 1995. Any forward-looking statements
contained herein, including those related to the Company's future performance,
and those contained in the comments of management, are based upon the
Company's historical performance and on current plans, estimates and
expectations, which are subject to various risks and uncertainties, including,
but not limited to, the strength of the retail, industrial, housing and other
markets in which the Company operates, the impact of competition, product
demand, supply chain pricing, the Company's debt and debt service requirements
and those other risks and uncertainties described in the Company's most recent
Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and its other
reports and statements filed by the Company with the Securities and Exchange
Commission. These risks could cause the Company's actual results for the 2013
fiscal year and beyond to differ materially from those expressed in any
forward-looking statement made by or on behalf of the Company. Forward-looking
statements speak only as of the date on which they are made, and 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.

www.pfina.com

P & F INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(In Thousand $)                            December 31, 2012 December 31, 2011
                                                             (Audited)
Assets
Cash                                       $      695  $      443
Accounts receivable - net                  6,675             6,327
Inventories - net                          24,073            18,588
Deferred income taxes - net                1,139             512
Prepaid expenses and other current assets  524               454
Assets of discontinued operations          23                23
Total current assets                       33,129            26,347
Net property and equipment                 11,102            10,766
Goodwill                                   5,150             5,150
Other intangible assets - net              1,752             1,950
Deferred income taxes – net                3,211             1,595
Other assets – net                         813               778
Total assets                               $    55,157    $   46,586
Liabilities and Shareholders' Equity
Short-term borrowings                      $    2,793    $     5,648
Accounts payable                           4,843             2,229
Accrued liabilities                        4,313             3,338
Liabilities of discontinued operations     19                24
Current maturities of long-term debt       460               1,039
Total current liabilities                  12,428            12,278
Long-term debt, less current maturities    7,363             4,861
Liabilities of discontinued operations     278               292
Total liabilities                          20,069            17,431
Total shareholders' equity                 35,088            29,155
Total liabilities and shareholders' equity $  55,157        $  46,586



P & F INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
In Thousands $                                      Years ended December 31,
                                                     2012           2011
                                                                    (Audited)
Net revenue                                          $  59,871      $  54,541
Cost of sales                                           37,729         34,296
Gross profit                                            22,142         20,245
Selling, general and administrative expenses            18,281         17,491
Operating income                                        3,861          2,754
Interest expense - net                                  526            756
Income from continuing operations before income         3,335          1,998
taxes
Income tax (benefit) expense                            (2,115)        89
Income from continuing operations                       5,450          1,909
(Loss) income from discontinued operations (net of
tax

expense of $7 and $9 for the years ended December       (39)           646
31,

2012 and 2011)
Net income                                           $  5,411       $  2,555



SOURCE P&F Industries, Inc.

Website: http://www.pfina.com
Contact: P&F Industries, Inc., Joseph A. Molino, Jr., Chief Financial Officer,
631-694-9800
 
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