Omega Flex, Inc. Announces Second Quarter 2024 Earnings

Rhea-AI Summary

Omega Flex, Inc. (OFLX) reported its second quarter 2024 earnings, showing a decline in both net sales and net income. Net sales for the first six months of 2024 decreased by 10.7% to $49,836,000 compared to the same period in 2023. The second quarter of 2024 saw a 4.7% decrease in net sales compared to Q2 2023. Net income for the first half of 2024 fell by 15.4% to $8,715,000.

The company attributed the decrease in net sales primarily to lower sales unit volumes, citing a suppressed overall market due to factors including a decline in housing starts. The decrease in net income was mainly due to lower net sales and reduced production, resulting in lower absorption of factory labor and overhead costs. However, these negative impacts were partially offset by lower raw material costs, reduced executive compensation, lower product liability reserves, and higher interest income.

Positive

• Lower raw material costs improving margins
• Reduced executive incentive and stock-based compensation
• Lower product liability reserves and expenses
• Higher interest income

Negative

• Net sales decreased 10.7% to $49,836,000 for H1 2024
• Net income fell 15.4% to $8,715,000 for H1 2024
• Q2 2024 net sales down 4.7% compared to Q2 2023
• Lower sales unit volumes due to suppressed market conditions
• Decline in housing starts affecting sales
• Decreased production leading to lower absorption of factory labor and overhead costs

	OMEGA FLEX, INC. (OFLX)
	Six Months Ended June 30,					Three Months Ended June 30,
	2024			2023		2024		2023
Net Sales	$49,836,000			$55,822,000		$24,620,000		$25,835,000
Net Income attributable to Omega Flex, Inc.	$8,715,000			$10,298,000		$4,496,000		$4,556,000
Earnings Per Share – Basic and Diluted	$0.86			$1.02		$0.45		$0.45
Weighted Average Shares – Basic and Diluted	10,094,322			10,094,322		10,094,322		10,094,322

EXTON, Pa., July 31, 2024 (GLOBE NEWSWIRE) -- Dean W. Rivest, CEO, announced that net sales of Omega Flex, Inc. (the “Company”) for the first six months of 2024 and 2023 were $49,836,000 and $55,822,000, respectively, decreasing $5,986,000 or 10.7%. Net Sales for the three months ended June 30, 2024 were 4.7% lower than for the second quarter of 2023. The decrease in net sales was mainly due to lower sales unit volumes as the overall market continued to be suppressed because of, among other factors, a decline in housing starts.

The Company’s net income for the first six months of 2024 was $8,715,000, compared to $10,298,000 for the first six months of 2023, decreasing $1,583,000 or 15.4%. Net income for the second quarter of 2024 was 1.3% below the same period in 2023. The decrease in net income is mainly due to the decrease in net sales and a related decrease in production, which resulted in lower absorption of factory labor and overhead costs. Factors partially offsetting the impact of the lower net sales and related decrease in production include lower raw material costs; lower executive incentive and stock based compensation; lower product liability reserves and expenses; lower marketing commissions and freight; lower provision for income taxes; and higher interest income.

INFORMATION CONCERNING FORWARD-LOOKING STATEMENTS – This press release contains forward-looking statements, which are subject to inherent uncertainties which are difficult to predict and may be beyond the ability of Omega Flex to control. Certain statements in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform act of 1995 that are not historical facts, but rather reflect Omega Flex’s current expectations concerning future results and events. The words “believes,” “expects,” “intends,” “plans,” “anticipates,” “hopes,” “likely,” “will,” and similar expressions identify such forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance, or achievements of Omega Flex (or entities in which Omega Flex has interests) or industry results, to differ materially from future results, performance or achievements expressed or implied by such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s view only as of the date of this press release. Omega Flex undertakes no obligation to publicly release the result of any revisions to these forward-looking statements which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, conditions, or circumstances.

Contact:	Dean W. Rivest
	(610) 524-7272

FAQ

What were Omega Flex's (OFLX) net sales for the first six months of 2024?

Omega Flex's net sales for the first six months of 2024 were $49,836,000, representing a 10.7% decrease compared to the same period in 2023.

How did Omega Flex's (OFLX) net income change in the first half of 2024?

Omega Flex's net income for the first half of 2024 decreased by 15.4% to $8,715,000, compared to $10,298,000 for the same period in 2023.

What factors contributed to Omega Flex's (OFLX) decrease in net sales in Q2 2024?

The decrease in Omega Flex's net sales was mainly due to lower sales unit volumes, attributed to a suppressed overall market and factors such as a decline in housing starts.

How did Omega Flex's (OFLX) earnings per share (EPS) change in Q2 2024?

Omega Flex's earnings per share remained unchanged at $0.45 for the second quarter of 2024, the same as Q2 2023.