Financial Performance - The Company's net sales for the year were $101,681,000, reflecting a decrease of $9,784,000, or 8.8%, compared to $111,465,000 in the previous year[103] - Gross profit margins were 61.2% for 2024, slightly down from 61.3% in 2023[104] - Operating profit decreased by $4,228,000, or 16.4%, to $21,571,000 in 2024 from $25,799,000 in 2023[108] - Cash provided from operating activities was $20,857,000 in 2024, down from $23,422,000 in 2023, illustrating a decrease of $2,565,000[117] - Dividend payments for 2024 amounted to $13,527,000, compared to $13,124,000 in 2023[120] Assets and Liabilities - Cash and cash equivalents increased by $5,343,000, or 11.5%, to $51,699,000 as of December 31, 2024, from $46,356,000 at the end of 2023[100] - Retained earnings increased by $4,387,000, or 6.4%, to $72,880,000 as of December 31, 2024, compared to $68,493,000 in 2023[101] - Interest income rose to $2,278,000 in 2024 from $1,700,000 in 2023, attributed to higher invested cash equivalent balances[110] - Income tax expense decreased by $1,118,000, or 16.4%, to $5,707,000 in 2024, with an effective tax rate of approximately 24%[112] Expenses - Engineering expenses increased by $200,000, or 5.2%, to $4,068,000 in 2024, representing 4.0% of net sales[107] Goodwill and Impairment - The Company performed an annual impairment test for goodwill as of December 31, 2024, which indicated no impairment as the estimated fair value exceeded carrying value[128] Legal and Regulatory Matters - Product liability reserves are estimated based on current data, with defense and settlement costs ranging from $250,000 to $3,000,000 per claim, potentially impacting future liquidity and operations[129] Employee Compensation - The Phantom Stock Plan allows for the granting of phantom stock units to key employees, with a vesting schedule over three years and adjustments to market value over time[131] - The amended Phantom Stock Plan effective January 1, 2023, introduces three-year cliff vesting and pro-rata acceleration upon retirement at age 67 or greater[132] Accounting and Reporting - The Company accounts for tax liabilities under FASB ASC Topic 740, recognizing deferred tax assets and liabilities based on enacted tax rates expected to apply in future periods[135] - Recent accounting updates, including ASU No. 2023-07 and ASU No. 2023-09, will enhance segment reporting and tax disclosures, effective for fiscal years beginning after December 15, 2023, and December 15, 2024, respectively[138][139] - The Company is evaluating the impact of ASU No. 2024-03, which requires disaggregation of income statement expenses, effective for annual periods beginning after December 15, 2026[140]

Core Insights - Omega Flex, Inc. reported a decrease in net sales for 2024, totaling $101.68 million, down from $111.47 million in 2023, representing an 8.8% decline [1][2] - The company's net income for 2024 was $18.01 million, a decrease of 13.2% from $20.76 million in 2023 [2] Financial Performance - Net Sales: $101,681,000 for 2024 vs. $111,465,000 for 2023, a decrease of $9,784,000 [1] - Net Income: $18,014,000 for 2024 vs. $20,763,000 for 2023, a decrease of $2,749,000 [2] - Earnings Per Share: Basic and diluted earnings per share were $1.78 for 2024 compared to $2.06 for 2023 [1] Quarterly Performance - Fourth Quarter Net Sales: $26,965,000 for 2024, down 4.2% from $28,147,000 in 2023 [1] - Fourth Quarter Net Income: $4,682,000 for 2024, a decrease of 4.2% from $4,889,000 in 2023 [2] Market Conditions - The decline in net sales is attributed to lower sales unit volumes, influenced by a decrease in housing starts and overall market suppression [1]

Financial Results - Omega Flex, Inc. reported its financial results for the twelve and three months ended December 31, 2024[3] - The earnings release was issued on March 5, 2025, detailing the company's performance[3] - The financial results include key metrics for revenue and earnings, although specific figures are not provided in the extracted content[3] Regulatory Information - The report is not deemed "filed" under the Securities Exchange Act of 1934, and the company does not incorporate it into other filings[4] - The company is not classified as an emerging growth company under the Securities Act[2] Company Information - The company is listed on the NASDAQ Global Market under the trading symbol OFLX[2] - The company operates from its principal executive offices located in Exton, Pennsylvania[1] Document Details - The press release is attached as Exhibit 99.1, providing further details on financial performance[5] - The report includes a cover page interactive data file embedded within the Inline XBRL document[5] - The Chief Executive Officer, Dean W. Rivest, signed the report on March 5, 2025[9]

Financial Performance - Net sales for the three months ended September 30, 2024, were $24,880,000, a decrease of 9.3% compared to $27,496,000 for the same period in 2023[11] - Gross profit for the three months ended September 30, 2024, was $15,350,000, down from $16,947,000 in 2023, reflecting a gross margin of 61.6%[11] - Operating profit for the three months ended September 30, 2024, was $5,468,000, a decline of 20.3% from $6,859,000 in the prior year[11] - Net income attributable to Omega Flex, Inc. for the three months ended September 30, 2024, was $4,617,000, compared to $5,576,000 in 2023, representing a decrease of 17.3%[11] - Basic and diluted earnings per common share for the three months ended September 30, 2024, were $0.46, down from $0.55 in the same period last year[11] - Comprehensive income for the three months ended September 30, 2024, was $4,767,000, compared to $5,422,000 in 2023[12] - For the nine months ended September 30, 2024, the net cash provided by operating activities was $11,097,000, slightly lower than $11,496,000 for the same period in 2023, representing a decrease of approximately 3.5%[18] - Net sales for the first nine months of 2024 were $74,716,000, a decrease of $8,602,000 or 10.3% from $83,318,000 in the same period of 2023[125] - Operating profits for the first nine months of 2024 were $15,809,000, a decrease of $3,877,000 or 19.7% from $19,686,000 in 2023[131] Assets and Liabilities - Total current assets increased to $80,913,000 as of September 30, 2024, from $80,188,000 at December 31, 2023[9] - Total liabilities decreased to $20,785,000 as of September 30, 2024, compared to $21,382,000 at December 31, 2023[9] - The reserve for credit losses was $796,000 as of September 30, 2024, down from $1,126,000 as of December 31, 2023, indicating a decrease in expected credit losses[42] - The Company had no outstanding borrowings on the credit facility and was in compliance with all debt covenants as of September 30, 2024[77] - Cash balance as of September 30, 2024, was $45,873,000, with no borrowings against the $15,000,000 line of credit[136] Shareholder Equity and Dividends - Retained earnings increased to $71,630,000 as of September 30, 2024, from $68,493,000 at December 31, 2023[9] - Cash dividends declared per common share for the three months ended September 30, 2024, were $0.34, compared to $0.33 in the same period of 2023[11] - The company declared dividends of $10,195,000 in September 2024, compared to $9,892,000 in September 2023, marking an increase of about 3.1%[18] - Retained earnings increased by $3,137,000 or 4.6%, reaching $71,630,000 as of September 30, 2024, compared to $68,493,000 at December 31, 2023, mainly due to net income[115] Expenses - Selling expenses decreased by $83,000 or 1.6% to $4,976,000 for the quarter ended September 30, 2024, compared to $5,059,000 in 2023, but increased as a percentage of net sales to 20.0% from 18.4%[118] - General and administrative expenses decreased by $189,000 or 4.7% to $3,848,000 for the quarter ended September 30, 2024, while the percentage of sales increased to 15.5% from 14.7%[120] - Selling expenses for the first nine months of 2024 were $15,202,000, a decrease of $429,000 or 2.7% compared to $15,631,000 in 2023[127] - General and administrative expenses decreased to $11,687,000 for the first nine months of 2024, down $1,517,000 or 11.5% from $13,204,000 in 2023[128] Inventory and Capital Expenditures - As of September 30, 2024, net inventories amounted to $16,053,000, an increase of 2.9% from $15,597,000 as of December 31, 2023[70] - The Company maintains inventories estimated to be used beyond the next twelve months, primarily for corrugated medical tubing products, with reserves of $1,000,000 as of September 30, 2024[72] - The company’s capital expenditures for the nine months ended September 30, 2024, were $1,443,000, slightly lower than $1,455,000 for the same period in 2023[18] Revenue Recognition and Operations - The Company recognizes revenue upon shipment of goods, concluding that control transfers to the customer at that point[30] - The Company operates in a single segment focused on the manufacture and sale of flexible metal hose and accessories, serving various industries including healthcare and automotive[21] - The majority of the Company's sales are geographically concentrated in North America, with limited international sales[38] Other Financial Information - Interest income for Q3 2024 was $586,000, an increase of $84,000 or 16.7% compared to $502,000 in Q3 2023[123] - Interest income for the first nine months of 2024 was $1,741,000, an increase of $562,000 or 47.7% compared to $1,179,000 in 2023[132] - The Company recorded compensation expense of $60,000 for the nine months ended September 30, 2024, compared to $285,000 for the same period in 2023[97] - The total unrecognized compensation costs as of September 30, 2024, were $368,000, expected to be recognized through March 2027[99] Compliance and Risk Management - The Company has not experienced any losses related to cash balances and believes its credit risk to be minimal[39] - The Company has a broad distribution network in North America and other global markets, focusing on flexible metal hose and fittings for various industries[112] - No additional risks attributable to the quarter were reported[154] - There were no unregistered sales of equity securities during the quarter[154] - The company has not experienced any defaults upon senior securities[154] - There are no mine safety disclosures applicable to the company[154] - The report includes certifications from the Chief Executive Officer and Chief Financial Officer[156]

Company Overview - Omega Flex is a leader in the flexible metal hose niche, particularly in corrugated stainless steel tubing (CSST), demonstrating that substantial returns can be achieved from various stock types [1] - Since its IPO in 2005, Omega Flex has produced total returns over six times higher than the S&P 500 index, despite a recent 74% decline in share price due to cyclical operations [2] Market Position and Product Advantages - Omega Flex's CSST systems offer significant advantages over traditional black iron piping, including easier installation and better performance during earthquakes and lightning strikes, leading to a 50% market share in new and remodeled housing construction in the U.S. [4][5] - The company has a flexible production capability, allowing it to respond to demand effectively, although its sales are closely tied to the cyclical U.S. housing industry [6] Current Challenges and Market Outlook - The company has faced challenges as U.S. housing starts have slowed due to rising interest rates and inflation, resulting in a drop in sales [7] - Research indicates a shortage of 4.5 million homes in the U.S., suggesting potential long-term growth in housing starts, although the timing of this recovery remains uncertain [8] Financial Metrics and Valuation - Omega Flex currently holds a return on invested capital (ROIC) of 24%, indicating a strong competitive position, with an 18% net income margin maintained despite economic challenges [10][11] - The company's price-to-earnings (P/E) ratio is at 25, near 10-year lows, and its dividend yield is at an all-time high of 2.8%, with only 69% of net income used for payouts [12][13] Investment Perspective - Despite being a less flashy investment, Omega Flex presents a compelling opportunity with its profitable operations available at a once-in-a-decade valuation, making it an attractive dividend stock for long-term holding [14]

Financial Performance - Net sales for Q2 2024 were $24,620,000, a decrease of 4.7% compared to $25,835,000 in Q2 2023[9] - Gross profit for Q2 2024 was $15,222,000, down from $15,800,000 in Q2 2023, reflecting a gross margin of 61.8%[9] - Operating profit for the first half of 2024 was $10,341,000, compared to $12,827,000 in the same period of 2023, indicating a decline of 19.4%[9] - Net income for Q2 2024 was $4,474,000, slightly down from $4,550,000 in Q2 2023, resulting in basic and diluted earnings per share of $0.45[9] - Net income was $8,674,000, a decrease from $10,291,000 in the same period of 2023, representing a decline of approximately 15.7%[15] - Net sales for the first six months of 2024 were $49,836,000, a decrease of $5,986,000 or 10.7% compared to $55,822,000 in the first six months of 2023[93] Assets and Liabilities - Total current assets decreased to $76,481,000 as of June 30, 2024, from $80,188,000 at the end of 2023[8] - Total liabilities reduced to $18,860,000 as of June 30, 2024, down from $21,382,000 at the end of 2023[8] - The total shareholders' equity as of June 30, 2024, was $80,763,000, an increase from $78,852,000 at the end of 2023[8] - Cash and cash equivalents at the end of the period were $45,705,000, down from $46,356,000 at the beginning of the period, showing a decrease of about 1.4%[15] - The reserve for credit losses was $774,000 as of June 30, 2024, down from $1,126,000 as of December 31, 2023[32] Earnings and Dividends - Cash dividends declared per common share increased to $0.34 in Q2 2024, up from $0.33 in Q2 2023[9] - The company declared dividends totaling $6,763,000 for the six months ended June 30, 2024, compared to $6,561,000 in the same period of 2023, indicating an increase of approximately 3.1%[15] - Retained earnings increased to $70,445,000 as of June 30, 2024, compared to $68,493,000 at the end of 2023[8] - Retained earnings increased by $1,952,000 (2.8%) to $70,445,000 as of June 30, 2024, driven by net income[87] Expenses - Selling expenses decreased by $125,000 (2.5%) to $4,874,000 in Q2 2024, primarily due to lower sales commissions[89] - General and administrative expenses decreased by $292,000 or 6.7% to $4,081,000 for the quarter ended June 30, 2024, compared to $4,373,000 in the same quarter of 2023[90] - General and administrative expenses for the six months ended June 30, 2024, were $7,839,000, down $1,328,000 or 14.5% from $9,167,000 in 2023[96] - Engineering expenses increased by $77,000 or 8.5% to $984,000 for the quarter ended June 30, 2024, with engineering expenses as a percentage of sales rising to 4.0% from 3.5%[91] Cash Flow - Net cash provided by operating activities for the six months ended June 30, 2024, was $7,107,000, compared to $9,457,000 in the same period of 2023, a decline of approximately 25%[15] - The cash balance decreased by $651,000 (1.4%) to $45,705,000 as of June 30, 2024, primarily due to dividend payments of $6,663,000[86] Inventory and Assets Management - As of June 30, 2024, inventories net of reserves were $15,932,000, an increase from $15,597,000 as of December 31, 2023, with finished goods at $7,113,000 and raw materials at $8,819,000[56] - The Company maintains inventories estimated to be used beyond the next twelve months, primarily for corrugated medical tubing products, totaling $1,000,000 as of June 30, 2024[57] Compliance and Governance - The report includes certifications from the Chief Executive Officer and Chief Financial Officer[114] - The company has filed its report in compliance with the Securities Exchange Act of 1934[115] - The report was signed by Matthew F. Unger, Vice President – Finance, Chief Financial Officer, and Assistant Secretary[116]

Core Insights - Omega Flex, Inc. reported stable earnings per share (EPS) of 45 cents for Q2 2024, unchanged from Q2 2023, despite a decline in net sales [1] - For the first half of 2024, EPS decreased to 86 cents from $1.02 in the same period of 2023, with net sales dropping by 10.7% to $49.8 million [2] Quarterly Performance Overview - The company's performance in Q2 2024 faced challenges due to reduced sales unit volumes, attributed to a decline in housing starts, leading to a 15.4% decrease in net income for the first six months to $8.7 million [3] - Net income for Q2 2024 slightly decreased by 1.3% to $4.5 million compared to $4.6 million in Q2 2023 [3] Cost Management Strategies - Omega Flex implemented effective cost management strategies to partially offset the impact of lower sales and production volumes, including reductions in raw material costs and operational expenses [4] - The company reduced expenses related to executive incentives, stock-based compensation, product liability reserves, marketing commissions, and freight costs [4] Tax and Interest Income Benefits - The company benefited from a lower provision for income taxes and higher interest income during the quarter, which helped mitigate some negative impacts on net income [5]

Financial Results - Omega Flex, Inc. reported its financial results for the six months and three months ended June 30, 2024[3] - The earnings release was issued on July 31, 2024, detailing the company's performance[3] Company Information - The company is listed on the NASDAQ Global Market under the trading symbol OFLX[1] - The report is not intended to be filed under the Securities Act of 1933 or the Exchange Act[3] - The Chief Executive Officer of Omega Flex, Dean W. Rivest, signed the report[5]

Core Points - Omega Flex, Inc. announced a regular quarterly dividend of $0.34 per share, payable on July 10, 2024, to shareholders of record on June 26, 2024 [2] - The Board of Directors will review the cash needs of the company and consider various factors such as operational results, financial condition, capital expenditure plans, and potential acquisitions when determining future dividends [2] Financial Information - The declared dividend amount is $0.34 per share [2] - The payment date for the dividend is set for July 10, 2024 [2] - Shareholders must be on record by June 26, 2024, to receive the dividend [2]

Washington, D.C. 20549 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 March 31, 2024 UNITED STATES SECURITIES AND EXCHANGE COMMISSION ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________________________ to ______________________ Commission file number 000-51372 Omega Flex, Inc. (Exact name of registrant as specified in its charter) Penns ...