Omega Flex(US:OFLX)2025-10-31 18:01Financial Performance - For the three months ended September 30, 2025, net sales were $24,234,000, a decrease of 2.6% compared to $24,880,000 for the same period in 2024[17] - Gross profit for the three months ended September 30, 2025, was $14,581,000, down from $15,350,000 in 2024, reflecting a gross margin of 60.3%[17] - Operating profit for the three months ended September 30, 2025, was $4,185,000, a decline of 23.4% from $5,468,000 in the prior year[17] - Net income attributable to Omega Flex, Inc. for the three months ended September 30, 2025, was $3,688,000, compared to $4,617,000 in 2024, representing a decrease of 20.1%[17] - Comprehensive income attributable to Omega Flex, Inc. for the three months ended September 30, 2025, was $3,632,000, compared to $4,767,000 in 2024, indicating a decline in overall financial performance[19] - The Company reported net sales of $73,089,000 for the nine months ended September 30, 2025, a decrease of $1,627,000 or 2.2% compared to $74,716,000 for the same period in 2024[144] - Gross profit margins decreased to 60.3% for the nine months ended September 30, 2025, down from 61.1% in 2024, primarily due to increased staffing costs and tariffs[145] - Operating profits were $12,957,000 for the nine months ended September 30, 2025, a decrease of $2,852,000 or 18.0% compared to $15,809,000 in 2024[150] Assets and Liabilities - Total current assets as of September 30, 2025, were $81,621,000, a slight decrease from $83,622,000 as of December 31, 2024[15] - Total liabilities decreased to $19,740,000 as of September 30, 2025, from $22,710,000 at the end of 2024, indicating improved financial stability[15] - Cash and cash equivalents were $49,368,000 as of September 30, 2025, down from $51,699,000 at the end of 2024[15] - Retained earnings increased to $73,995,000 as of September 30, 2025, from $72,880,000 at the end of 2024, reflecting ongoing profitability[15] - The cash and cash equivalents at the end of the period were $49,368,000, down from $51,699,000 at the beginning of the period, indicating a decrease of about 4.3%[30] - The net cash provided by operating activities for the nine months ended September 30, 2025, was $9,668,000, compared to $11,097,000 for the same period in 2024, representing a decline of approximately 12.9%[30] - The reserve for credit losses was $800,000 as of September 30, 2025, down from $866,000 as of December 31, 2024, indicating a reduction of approximately 7.6%[49] Expenses - Engineering expenses increased by $263,000 or 24.9% to $1,321,000 for the third quarter of 2025, attributed to product development and certification costs[138] - General and administrative expenses rose by $234,000 or 6.1% to $4,082,000 for the third quarter of 2025, with an increase in staffing-related costs[137] - Selling expenses for the third quarter of 2025 were $4,993,000, an increase of $17,000 or 0.3% compared to $4,976,000 in the same quarter of 2024[136] - General and administrative expenses rose by $419,000 or 3.6% to $12,106,000 for the nine months ended September 30, 2025, increasing as a percentage of sales to 16.6%[147] Dividends - The company declared cash dividends of $0.34 per common share for both the three months ended September 30, 2025, and 2024[17] - Dividends paid increased to $10,296,000 in 2025 from $10,095,000 in 2024, marking an increase of about 2%[30] - The Company has declared and paid regular quarterly dividends totaling $10,296,000 during 2025[131] Inventory - As of September 30, 2025, inventories net of reserves were $14,310,000, a decrease from $14,559,000 as of December 31, 2024[78] - Finished goods inventory increased to $7,163,000 as of September 30, 2025, compared to $6,676,000 as of December 31, 2024[78] - Raw materials inventory decreased to $7,147,000 as of September 30, 2025, from $7,883,000 as of December 31, 2024[78] - The company applies the first-in, first-out (FIFO) method for inventory valuation[50] Other Information - The company operates manufacturing facilities in Exton, Pennsylvania, Houston, Texas, and Banbury, Oxfordshire, UK, serving North America and certain European markets[33] - The company applies ASC Topic 606 for revenue recognition, ensuring revenue reflects the transfer of goods or services to customers[36] - The Company has an unsecured revolving credit facility with a maximum amount of $15,000,000, expiring on September 1, 2028, with an interest rate range of 5.06% based on financial ratios[82] - As of September 30, 2025, the Company had no outstanding borrowings and was in compliance with all debt covenants[83] - The Company recorded compensation expense of $112,000 for the nine months ended September 30, 2025, compared to $60,000 for the same period in 2024[104] - The Company granted 420,000 shares of restricted stock under the 2025 Equity Incentive Plan, representing 4% of the shares of FTI Common Stock[109]