UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
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 | September 30, 2019 |
( ) 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)
Pennsylvania | 23-1948942 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
451 Creamery Way, Exton, PA | 19341 |
(Address of principal executive offices) | (Zip Code) |
(610) 524-7272 |
Registrant's telephone number, including area code
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the
past 90 days. | Yes [x] No [ ] |
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was
required to submit and post such files). | Yes [x] No [ ] |
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, non-accelerated filer, or a smaller reporting company filer. See definition of "accelerated filer and large accelerated filer" in Rule 12b-2 of the Exchange. (Check one):
Large accelerated filer [ ] Accelerated filer [x] Non-accelerated filer [ ] Smaller reporting Company [ ]
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of The Exchange Act). Yes [ ] No [x]
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS
DURING THE PRECEDING FIVE YEARS.
Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 12 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by the courts.
The number of shares of the registrant's common stock outstanding as of September 30, 2019 was 10,094,322.
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OMEGA FLEX, INC.
QUARTERLY REPORT ON FORM 10-Q
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2019
INDEX
PART I - FINANCIAL INFORMATION | Page No. |
Item 1 - Financial Statements | |
Condensed consolidated balance sheets at September 30, 2019 (unaudited) | |
and December 31, 2018 | 3 |
Condensed consolidated statements of income for the | |
three-months and nine-months ended September 30, 2019 and 2018 (unaudited) | 4 |
Condensed consolidated statements of comprehensive income for the | |
three-months and nine-months ended September 30, 2019 and 2018 (unaudited) | 5 |
Condensed consolidated statements of shareholders' equity for the | |
three-months and nine-months ended September 30, 2019 and 2018 (unaudited) | 6 |
Condensed consolidated statements of cash flows for the | |
nine-months ended September 30, 2019 and 2018 (unaudited) | 8 |
Notes to the condensed consolidated financial statements (unaudited) | 9 |
Item 2 - Management's Discussion and Analysis of Financial Condition | |
and Results of Operations | 26 |
Item 3 - Quantitative and Qualitative Information About Market Risks | 40 |
Item 4 - Controls and Procedures | 40 |
PART II - OTHER INFORMATION | |
Item 1 - Legal Proceedings | 41 |
Item 1A - Risk Factors | 42 |
Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds | 42 |
Item 3 - Defaults Upon Senior Securities | 42 |
Item 4 - Mine Safety Disclosures | 42 |
Item 5 - Other Information | 42 |
Item 6 - Exhibits | 43 |
SIGNATURES | 43 |
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PART I - FINANCIAL INFORMATION
Item 1 - Financial Statements
OMEGA FLEX, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share Amounts) | |||||
September 30, | December 31, | ||||
2019 | 2018 | ||||
ASSETS | (unaudited) | ||||
Current Assets: | |||||
Cash and Cash Equivalents | $25,158 | $32,392 | |||
Accounts Receivable - less allowances of | |||||
$1,060 and $985, respectively | 16,814 | 16,451 | |||
Investments | 22,865 | 14,944 | |||
Inventories-Net | 10,466 | 7,976 | |||
Other Current Assets | 2,692 | 1,859 | |||
Total Current Assets | 77,995 | 73,622 | |||
Right-Of-Use Assets | 680 | --- | |||
Property and Equipment - Net | 8,899 | 8,378 | |||
Goodwill - Net | 3,526 | 3,526 | |||
Deferred Taxes | 3 | 3 | |||
Other Long Term Assets | 1,416 | 1,307 | |||
Total Assets | $92,519 | $86,836 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
Current Liabilities: | |||||
Accounts Payable | $2,859 | $2,775 | |||
Accrued Compensation | 3,159 | 5,295 | |||
Accrued Commissions and Sales Incentives | 4,284 | 4,264 | |||
Dividends Payable | 2,826 | 2,422 | |||
Taxes Payable | --- | 58 | |||
Lease Liability | 305 | --- | |||
Other Liabilities | 6,590 | 3,591 | |||
Total Current Liabilities | 20,023 | 18,405 | |||
Lease Liability, net of current portion | 392 | --- | |||
Deferred Taxes | 319 | 566 | |||
Other Long Term Liabilities | 1,813 | 1,544 | |||
Total Liabilities | 22,547 | 20,515 | |||
Commitments and Contingencies (Note 5) | |||||
Shareholders' Equity: | |||||
Omega Flex, Inc. Shareholders' Equity: | |||||
Common Stock - par value $0.01 share: authorized 20,000,000 shares: | |||||
10,153,633 shares issued at September 30, 2019 and December 31, 2018, | |||||
respectively, and 10,094,322 and 10,091,822 shares outstanding at | |||||
September 30, 2019 and December 31, 2018, respectively | 102 | 102 | |||
Treasury Stock | (1) | (1) | |||
Paid-in Capital | 11,025 | 10,808 | |||
Retained Earnings | 59,769 | 56,110 | |||
Accumulated Other Comprehensive Loss | (1,141) | (950) | |||
Total Omega Flex, Inc. Shareholders' Equity | 69,754 | 66,069 | |||
Noncontrolling Interest | 218 | 252 | |||
Total Shareholders' Equity | 69,972 | 66,321 | |||
Total Liabilities and Shareholders' Equity | $92,519 | $86,836 |
See Accompanying Notes to Unaudited Condensed Consolidated Financial Statements.
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OMEGA FLEX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In Thousands, Except per Share and Share Amounts)
For the three-months ended | For the nine-months ended | ||||||||||
September 30, | September 30, | ||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
(Unaudited) | |||||||||||
Net Sales | $ | 28,030 | $ | 27,199 | $ | 81,627 | $ | 79,443 | |||
Cost of Goods Sold | 10,326 | 10,652 | 30,241 | 31,649 | |||||||
Gross Profit | 17,704 | 16,547 | 51,386 | 47,794 | |||||||
Selling Expense | 5,383 | 4,265 | 14,193 | 12,960 | |||||||
General and Administrative Expense | 6,786 | 4,385 | 18,430 | 12,939 | |||||||
Engineering Expense | 1,162 | 1,221 | 3,655 | 3,361 | |||||||
Operating Profit | 4,373 | 6,676 | 15,108 | 18,534 | |||||||
Interest Income | 229 | 130 | 685 | 275 | |||||||
Other Income (Expense) | (55) | (40) | (50) | (80) | |||||||
Income Before Income Taxes | 4,547 | 6,766 | 15,743 | 18,729 | |||||||
Income Tax Expense | 1,153 | 1,556 | 3,896 | 4,504 | |||||||
Net Income | 3,394 | 5,210 | 11,847 | 14,225 | |||||||
Less: Net Income attributable to the | |||||||||||
Noncontrolling Interest | (26) | (34) | (114) | (110) | |||||||
Net Income attributable to Omega Flex, Inc. | $ | 3,368 | $ | 5,176 | $ | 11,733 | $ | 14,115 | |||
Basic and Diluted Earnings per Common Share | $ | 0.33 | $ | 0.51 | $ | 1.16 | $ | 1.40 | |||
Cash Dividends Declared per Common Share | $ | 0.28 | $ | 0.24 | $ | 0.80 | $ | 0.70 | |||
Basic and Diluted Weighted-Average Shares Outstanding | 10,092,428 | 10,091,822 | 10,092,027 | 10,091,822 |
See Accompanying Notes to Unaudited Condensed Consolidated Financial Statements.
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OMEGA FLEX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In Thousands)
For the three-months ended | For the nine-months ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||
(Unaudited) | |||||||||||||
Net Income | $ | 3,394 | $ | 5,210 | $ | 11,847 | $ 14,225 | ||||||
Other Comprehensive Income (Loss): | |||||||||||||
Foreign Currency Translation Adjustment | (147) | (38) | (202) | 29 | |||||||||
Other Comprehensive Income (Loss) | (147) | (38) | (202) | 29 | |||||||||
Comprehensive Income | 3,247 | 5,172 | 11,645 | 14,254 | |||||||||
Less: Comprehensive Income Attributable to the | |||||||||||||
Noncontrolling Interest | (18) | (32) | (103) | (110) | |||||||||
Total Comprehensive Income | |||||||||||||
$ | 3,229 | $ | 5,140 | $ | 11,542 | $ 14,144 |
See Accompanying Notes to Unaudited Condensed Consolidated Financial Statements.
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Omega Flex Inc. published this content on 04 November 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 November 2019 21:29:03 UTC