Omega Flex(OFLX) - 2024 Q2 - Quarterly Report

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]