Omega Flex(OFLX)

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OFLX's Q2 Earnings Slip Y/Y Amid Housing Market Slowdown
ZACKS· 2025-08-05 18:45
Core Insights - Omega Flex, Inc. (OFLX) shares have decreased 4.5% since the earnings report for Q2 2025, contrasting with a 0.6% decline in the S&P 500 index during the same period [1] - The company reported earnings per share (EPS) of 41 cents, down from 45 cents a year ago [1] Financial Performance - Net sales for Q2 2025 were $25.5 million, a 3.7% increase from $24.6 million in the same quarter last year, driven by higher sales volume despite market softness [2] - Net income attributable to Omega Flex was $4.2 million, down 7.6% from $4.5 million in the prior-year quarter [2] Profitability Metrics - Gross profit increased to $15.4 million from $15.2 million, but gross margin narrowed to 60.4% from 61.8% year-over-year [3] - Operating profit declined 10.6% year-over-year to $4.7 million, reflecting cost pressures across various functional areas [3] Expense Analysis - Engineering expenses surged 37.2% to $1.4 million due to increased product development and certification costs [4] - Selling expenses rose 7% to $5.2 million, driven by higher advertising, travel, and commissions [4] - General and administrative expenses increased 1.3% to $4.1 million, with stock-based compensation and staffing costs partially offset by lower director-related expenses [4] - Overall operating margin fell to 18.5% from 21.5% in the same quarter last year [4] Management Commentary - Management acknowledged headwinds from a soft housing market, which contributed to lower unit volumes in the first half of 2025, particularly citing a decline in housing starts [5] - The company emphasized a strong cash position with $50.7 million in cash and equivalents and no outstanding debt at the end of the quarter [5] Product Performance - The flagship TracPipe and CounterStrike flexible gas piping systems performed robustly, with growth potential noted for the MediTrac corrugated medical tubing line [6] Revenue Influencers - The modest revenue increase was insufficient to offset higher expenses in engineering, marketing, and administrative functions [7] - Foreign currency fluctuations positively impacted performance, contributing $0.2 million in other income compared to a $0.03 million loss a year earlier [7] - Interest income declined from $0.6 million to $0.5 million year-over-year due to lower interest rates [7] Tax and Equity Developments - Tax expense decreased 3.3% to $1.3 million in line with lower pre-tax income [8] - The company granted 420,000 shares of restricted stock under the 2025 Equity Incentive Plan, aligning management incentives with long-term performance objectives [9] Dividend Information - Omega Flex continued regular dividend payments, declaring $0.34 per share in June, consistent with prior quarters, totaling $6.9 million in dividends paid for the first half of 2025 [10]
Omega Flex(OFLX) - 2025 Q2 - Quarterly Report
2025-08-01 17:00
FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________________________ to ______________________ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Commission file number 000-51372 Omega Flex, Inc. (Exact name of registrant as specified in its charter) Pennsy ...
Omega Flex, Inc. Announces Second Quarter 2025 Earnings
Globenewswire· 2025-07-30 20:15
EXTON, Pa., July 30, 2025 (GLOBE NEWSWIRE) -- OMEGA FLEX, INC. (OFLX) Six Months Ended June 30, Three Months Ended June 30, 2025 2024 2025 2024 <td colspan="3" style="border-top: solid black 1pt ; vertical-alig ...
Omega Flex(OFLX) - 2025 Q2 - Quarterly Results
2025-07-30 20:01
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): July 30, 2025 OMEGA FLEX, INC. (Exact name of registrant as specified in charter) Pennsylvania 000-51372 23-1948942 (State or other jurisdiction (Commission (I.R.S. Employer of incorporation) File Number) Identification No.) 451 Creamery Way | Title of each class | Trading Symbol(s) | Name of eac ...
Omega Flex, Inc. Announces Regular Quarterly Dividend for the Second Quarter 2025
Globenewswire· 2025-06-18 14:00
Group 1 - The Board of Directors of Omega Flex, Inc. declared a regular quarterly dividend of $0.34 per share, payable on July 10, 2025, to shareholders of record on June 30, 2025 [1] - Future regular quarterly dividends will be determined based on the Company's cash needs, operational results, financial condition, capital expenditure plans, potential acquisitions, and other relevant factors [1] Group 2 - The press release contains forward-looking statements that reflect Omega Flex's current expectations regarding future results and events [2] - These forward-looking statements involve known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied [2]
Omega Flex Q1 Earnings Drop Y/Y on Weak Housing Demand, Stock Down 2%
ZACKS· 2025-05-06 19:20
Core Viewpoint - Omega Flex, Inc. has experienced a decline in both stock performance and financial results for the first quarter of 2025, primarily due to a slowdown in the housing market impacting demand for its products [1][2][4]. Financial Performance - Earnings per share for the first quarter of 2025 were reported at 35 cents, down from 42 cents in the same quarter of the previous year [2]. - Revenues decreased to $23.3 million, reflecting a 7.5% decline from $25.2 million year-over-year [2]. - Net income fell to $3.6 million, marking a 15.4% year-over-year decline from $4.2 million [2]. Market Conditions - The declines in revenue and net income were attributed to reduced unit volumes, linked to a broader market slowdown, particularly a downturn in housing starts [3][5]. - The housing sector, a key market for Omega Flex, is under pressure, potentially due to elevated interest rates or a pullback in construction activity [5]. Management Insights - CEO Dean W. Rivest indicated that the subdued market environment significantly affected the first-quarter results, specifically citing decreased housing starts as a factor for lower sales volumes [4]. - Management did not provide forward-looking guidance but suggested that the performance shortfall is due to macroeconomic conditions rather than internal execution issues [4].
Omega Flex(OFLX) - 2025 Q1 - Quarterly Report
2025-05-02 17:30
Financial Performance - Net sales for Q1 2025 were $23,330,000, a decrease of 7.5% compared to $25,216,000 in Q1 2024[17] - Gross profit for Q1 2025 was $14,072,000, down 6.8% from $15,099,000 in Q1 2024[17] - Operating profit decreased to $4,050,000 in Q1 2025, a decline of 20% from $5,058,000 in Q1 2024[17] - Net income attributable to Omega Flex, Inc. for Q1 2025 was $3,568,000, a decrease of 15.4% compared to $4,219,000 in Q1 2024[17] - Basic and diluted earnings per common share for Q1 2025 were $0.35, down from $0.42 in Q1 2024[17] - Comprehensive income for Q1 2025 was $3,574,000, compared to $4,204,000 in Q1 2024, reflecting a decrease of 14.9%[18] - The Company's net sales for Q1 2025 were $23,330,000, a decrease of $1,886,000 or 7.5% compared to Q1 2024's $25,216,000, primarily due to lower sales unit volumes and a decline in housing starts[128] - Gross profit margin improved to 60.3% in Q1 2025 from 59.9% in Q1 2024, with gross profit of $14,072,000 compared to $15,099,000 in the prior year[129] - Operating profit decreased by $1,008,000 or 19.9%, totaling $4,050,000 in Q1 2025 compared to $5,058,000 in Q1 2024[134] - Engineering expenses increased by $199,000 or 21.4% to $1,130,000 in Q1 2025, representing 4.8% of sales, up from 3.7% in Q1 2024[133] - Interest income for Q1 2025 was $511,000, slightly down from $546,000 in Q1 2024[134] - Selling expenses decreased by $351,000 or 6.6% to $5,001,000 in Q1 2025, representing 21.4% of net sales, up from 21.2% in Q1 2024[130] Assets and Liabilities - Total current assets decreased to $80,520,000 as of March 31, 2025, from $83,622,000 as of December 31, 2024[14] - Total liabilities decreased to $19,479,000 as of March 31, 2025, from $22,710,000 as of December 31, 2024[14] - Cash and cash equivalents at the end of Q1 2025 were $49,226,000, down from $51,699,000 at the end of Q4 2024[14] - The reserve for credit losses was $786,000 as of March 31, 2025, down from $866,000 as of December 31, 2024[46] - As of March 31, 2025, the Company's net inventories amounted to $15,177,000, an increase from $14,559,000 as of December 31, 2024, reflecting a growth of approximately 4.24%[75] - The Company maintains a revolving credit facility with a maximum amount of $15,000,000, with no outstanding borrowings as of March 31, 2025, indicating strong liquidity[78][79] - The Company reported a net present value of retirement payments associated with salary continuation agreements of $291,000 as of March 31, 2025, down from $302,000 as of December 31, 2024[81] - The Company has an unused facility fee of 10 basis points on the average unused balance of the revolving credit facility, which reflects prudent financial management[78] Dividends and Stock - Dividends declared per common share increased to $0.34 in Q1 2025 from $0.33 in Q1 2024[17] - The Company paid dividends totaling $3,432,000 in Q1 2025, compared to $3,332,000 in Q1 2024, reflecting a consistent dividend policy[148] - The Company declared a dividend of $0.34 per share on March 25, 2025, resulting in a total payment of $3,432,000[113] - The Company granted 12,829 phantom stock units with a fair value of $32.35 per unit in February 2025[93] - Total unrecognized compensation costs related to phantom stock units as of March 31, 2025, were $568,000, expected to be recognized through February 2028[100] - The Company had 19,232 nonvested and unmatured phantom stock units outstanding as of March 31, 2025[100] - The fair value of restricted stock awards granted on January 2, 2025, was $0.27 per share, totaling $113,400[104] Operational Insights - The Company manufactures flexible metal hose at facilities in Exton, Pennsylvania, Houston, Texas, and Banbury, Oxfordshire, UK[30] - The Company applies the five-step approach of ASC Topic 606 for revenue recognition, ensuring revenue reflects the transfer of goods or services[33] - The Company considers all highly liquid investments with an original maturity of 90 days or less as cash equivalents[43] - The Company has not experienced any losses related to cash balances and believes its credit risk to be minimal[43] - The Company does not offer a warranty as a separate component, and warranties are included with each purchase[39] - The Company uses the first-in, first-out (FIFO) method for inventory valuation[47] - The Company performed an annual impairment test for goodwill as of December 31, 2024, which did not indicate any impairment[49] - The Company is subject to potential claims related to its products, which may result in increased litigation costs, although it believes these claims lack legal merit[85] - The Company has recognized foreign currency translation adjustments as the sole component of other comprehensive income for the three months ended March 31, 2025[69] - The Company has an estimated maximum exposure for all current open claims as of March 31, 2025, not exceeding approximately $3,661,000[86] Lease Obligations - The Company recorded right-of-use assets of $4,838,000 and a lease liability of $5,169,000 as of March 31, 2025[110] - Rent expense for operating leases was $233,000 for the three months ended March 31, 2025, compared to $194,000 for the same period in 2024, reflecting a 20.1% increase[111] - Future minimum lease payments under non-cancelable leases as of March 31, 2025, total $5,780,000[112] - The Company has several lease obligations, including a facility in Banbury, England, which supports its manufacturing and distribution functions[84] Internal Controls - The management evaluated the effectiveness of disclosure controls and procedures, concluding they were effective at a reasonable assurance level as of the end of the reporting period[157] - There were no changes in internal control over financial reporting during the most recent quarter that materially affected internal control[159]
Omega Flex, Inc. Announces First Quarter 2025 Earnings
Globenewswire· 2025-04-30 20:15
Core Viewpoint - Omega Flex, Inc. reported a decline in both net sales and net income for the first quarter of 2025 compared to the same period in 2024, primarily due to lower sales unit volumes and a decrease in housing starts [2]. Financial Performance - Net sales for the first quarter of 2025 were $23,330,000, down from $25,216,000 in 2024, representing a decrease of $1,886,000 or 7.5% [2]. - Net income attributable to Omega Flex, Inc. for the first quarter of 2025 was $3,568,000, compared to $4,219,000 in 2024, a decrease of $651,000 or 15.4% [2]. - Earnings per share (basic and diluted) decreased from $0.42 in 2024 to $0.35 in 2025 [2]. Market Conditions - The overall market for Omega Flex, Inc. continued to be suppressed, influenced by a decline in housing starts, which contributed to the lower sales unit volumes [2].
Omega Flex(OFLX) - 2025 Q1 - Quarterly Results
2025-04-30 20:01
Financial Performance - Omega Flex, Inc. reported its results for the three months ended March 31, 2025[3]. - The earnings release was issued on April 30, 2025, detailing the company's financial performance[3]. - The financial results will likely influence future market strategies and investor decisions[3]. Regulatory Compliance - The report is not deemed "filed" under the Securities Exchange Act of 1934, ensuring it is treated as "furnished" information[4]. - The report is part of the company's compliance with the Exchange Act requirements[7]. Company Information - The company is listed on the NASDAQ Global Market under the trading symbol OFLX[2]. - The company has not indicated any changes in its status as an emerging growth company[2]. Document Details - The press release is attached as Exhibit 99.1, providing further details on financial results[5]. - The report includes a cover page interactive data file embedded within the Inline XBRL document[5]. - The CEO, Dean W. Rivest, signed the report, indicating executive approval of the financial disclosures[9].
Omega Flex, Inc. Announces Regular Quarterly Dividend for the First Quarter 2025
Globenewswire· 2025-03-27 20:15
EXTON, Pa., March 27, 2025 (GLOBE NEWSWIRE) -- Omega Flex, Inc. (the “Company”) (NASDAQ: OFLX) today announced that the Board of Directors declared a regular quarterly dividend of $0.34 per share payable on April 22, 2025, to shareholders of record on April 10, 2025. In determining the amount of future regular quarterly dividends, the Board will review the cash needs of the Company, and based on results of operations, financial condition, capital expenditure plans, and consideration of possible acquisitions ...