Core Insights - Omega Flex, Inc. reported a decrease in net sales for the first six months of 2025, totaling $48.855 million, down 2.0% from $49.836 million in the same period of 2024 [1][2] - Net income for the first six months of 2025 was $7.724 million, reflecting an 11.4% decrease from $8.715 million in the first half of 2024 [2] - The decline in sales and income is attributed to lower sales unit volumes, influenced by a decrease in housing starts in the overall market [2] Financial Performance - For the three months ended June 30, 2025, net sales increased by 3.7% compared to the second quarter of 2024 [1] - Earnings per share for the first six months of 2025 were $0.77, down from $0.86 in the same period of 2024 [1] - The weighted average shares remained constant at 10,094,322 for both periods [1] Market Conditions - The overall market conditions are described as suppressed, primarily due to a decline in housing starts, which has negatively impacted sales unit volumes [2]

Financial Results - Omega Flex, Inc. reported its financial results for the six months and three months ended June 30, 2025[3] - The earnings release was issued on July 30, 2025, detailing the company's performance[3] - The report is not deemed "filed" under the Securities Exchange Act of 1934, indicating it is for informational purposes only[4] - The press release is attached as Exhibit 99.1, providing further details on financial performance[5] Company Information - The company is listed on the NASDAQ Global Market under the trading symbol OFLX[2] - The report was signed by Dean W. Rivest, the Chief Executive Officer, on July 30, 2025[9] Product and Market Activity - The report does not indicate any new product launches or technological advancements during this period[3] - There is no mention of market expansion or acquisitions in the current report[3] - The company has not identified any emerging growth company status in this filing[2] - No specific financial metrics or performance indicators were disclosed in the provided content[3]

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]

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]

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].

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].