FORT WORTH, Texas, Oct. 1, 2012 (GLOBE NEWSWIRE) -- Tandy Leather Factory, Inc. (Nasdaq:TLF) (the "Company") announced Friday that an agreement had been reached and preliminarily approved by the Court to settle a lawsuit filed by three former store managers, who alleged that the Company violated certain requirements of the Fair Labor Standards Act (FLSA), as well as various state wage laws. The plaintiffs, who have sought to represent themselves and all similarly situated U.S. current and former store managers of the defendants, sought reimbursement for an unspecified amount of unpaid overtime compensation, liquidated damages, attorneys' fees and costs. As a result of that settlement agreement, the Company will record a charge to operations of approximately $1 million dollars in the 3rd quarter of 2012.
Therefore, the Company is revising its 2012 earnings guidance downward from 50 to 52 cents per share to 42 to 45 cents per share. The Company's 2012 revenue guidance of $72-$73 million has not changed.
Jon Thompson, CEO and President, commented, "Resolving this litigation is in the best interest of our company, our stockholders, and our employees. We value our store managers and that attitude will not change."
Tandy Leather Factory, Inc., (http://www.tandyleatherfactory.com), headquartered in Fort Worth, Texas, is a specialty retailer and wholesale distributor of a broad product line including leather, leatherworking tools, buckles and adornments for belts, leather dyes and finishes, saddle and tack hardware, and do-it-yourself kits. The Company distributes its products through its 29 Leather Factory stores, located in 19 states and 3 Canadian provinces, 77 Tandy Leather retail stores, located in 36 states and 6 Canadian provinces, and three combination wholesale/retail stores located in the United Kingdom, Australia and Spain. Its common stock trades on the Nasdaq with the symbol "TLF". To be included on Tandy Leather Factory's email distribution list, go to http://www.b2i.us/irpass.asp?BzID=1625&to=ea&s=0.
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This news release may contain statements regarding future events, occurrences, circumstances, activities, performance, outcomes and results that are considered "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Actual results and events may differ from those projected as a result of certain risks and uncertainties. These risks and uncertainties include but are not limited to: changes in general economic conditions, negative trends in general consumer-spending levels, failure to realize the anticipated benefits of opening retail stores; availability of hides and leathers and resultant price fluctuations; change in customer preferences for our product, and other factors disclosed in our filings with the Securities and Exchange Commission. These forward-looking statements are made only as of the date hereof, and except as required by law, we do not intend to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Source:Tandy Leather Factory, Inc.