UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
INFORMATION CONCERNING FORWARD-LOOKING STATEMENTS - This report and the exhibit or exhibits attached hereto, contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements as to management’s good faith expectations and beliefs, which are subject to inherent uncertainties which are difficult to predict, and may be beyond the ability of the Company to control. Forward-looking statements are made based upon management’s expectations and belief concerning future developments and their potential effect upon the Company. There can be no assurance that future developments will be in accordance with management’s expectations or that the effect of future developments on the Company will be those anticipated by management.
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 the Company (or entities in which the Company 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 Form 8-K. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements, which may be made to reflect events or circumstance after the date hereof or to reflect the occurrence of unanticipated events, conditions or circumstances. For additional information about risks and uncertainties that could adversely affect the Company’s forward-looking statements, please refer to the Company’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2019.
ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On October 15, 2020, Omega Flex, Inc. (the “Company”) issued a press release reporting its results for the nine months and three months ended September 30, 2020. A copy of the earnings release issued by the Company with respect to these matters is attached hereto as Exhibit 99.1 and incorporated herein by reference.
The information in the earnings release and in this Item 2.02 is “furnished” and not “filed” for purposes of Section 18 of the Securities and Exchange Act of 1934, or otherwise subject to the liabilities of that section. Such information may be incorporated by reference in another filing under the Securities and Exchange Act of 1934 or the Securities Act of 1933 only if, and to the extent that, such subsequent filing specifically references such information.
ITEM 7.01. REGULATION FD DISCLOSURE
The information included in Item 2.02 of this Form 8-K, including the press release attached as Exhibit 99.1, is incorporated by reference into this Item 7.01 in satisfaction of the public disclosure requirements of Regulation FD. This information is “furnished” and not “filed” for purposes of Section 18 of the Securities and Exchange Act of 1934, or otherwise subject to the liabilities of that section. It may be incorporated by reference in another filing under the Securities and Exchange Act of 1934 or the Securities Act of 1933 only if, and to the extent that, such subsequent filing specifically references the information incorporated by reference herein.
ITEM 9.01. FINANCIAL STATEMENT AND EXHIBITS
| (a) | none |
| (b) | none |
| (c) | The following document is filed herewith as an exhibit to this Form 8-K: |
Exhibit 99.1 - Earnings Release
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant has caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| OMEGA FLEX, INC. | ||
| (Registrant) | ||
| Date: October 15, 2020 | ||
| By: | /s/ Kevin R. Hoben | |
| Kevin R. Hoben | ||
| Chairman and Chief Executive Officer | ||
Exhibit 99.1
OMEGA FLEX, INC.
Manufacturer of flexible metal hose and gas piping products
| Exton, Pennsylvania | Contact: Kevin R. Hoben |
| October 15, 2020 | (610) 524-7272 |
PRESS RELEASE
“Omega Flex, Inc. Announces Third Quarter 2020 Earnings”
| OMEGA FLEX, INC. (OFLX) | ||||||||||||||||
| Nine Months Ended September 30, | Three Months Ended September 30, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Net Sales | $ | 74,171,000 | $ | 81,627,000 | $ | 27,087,000 | $ | 28,030,000 | ||||||||
| Net Income attributable to Omega Flex, Inc. | $ | 12,732,000 | $ | 11,733,000 | $ | 4,817,000 | $ | 3,368,000 | ||||||||
Earnings Per Share – Basic and Diluted | $ | 1.26 | $ | 1.16 | $ | 0.48 | $ | 0.33 | ||||||||
Weighted Average Shares – Basic and Diluted | 10,094,322 | 10,092,756 | 10,094,322 | 10,094,322 | ||||||||||||
Kevin R. Hoben, Chairman and CEO, announced that the Company’s net sales for the first nine months of 2020 and 2019 were $74,171,000 and $81,627,000, respectively, decreasing 9.1%. Net sales for the three months ended September 30, 2020 were 3.4% lower than the third quarter of 2019.
The Company experienced a noticeable deterioration in its sales volume during the second quarter of 2020, as non-essential businesses were closed, most notably residential construction work sites, with April being the trough. Since May, the Company has generally experienced a progressive rise in sales, with multiple periods in excess of 2019.
The Company’s net income through September 2020 was $12,732,000 compared to $11,733,000 through the first nine months of 2019, increasing $999,000 or 8.5%. Net income for the third quarter of 2020 was 43.0% higher than 2019.
The growth in net income for the year and quarter is largely driven by decreases in several atypical SG&A items identified during 2019. The most prominent decreases relate to product liability defense costs associated primarily with one class action case, which was dismissed in favor of Omega Flex during the third quarter of 2020, and consulting costs related to our new product, MediTrac® flexible medical gas piping. These items more than offset a decrease in gross profit which was in line with lower sales volume.
INFORMATION CONCERNING FORWARD-LOOKING STATEMENTS – This news 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 news release constitute forward-looking statements with 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 news 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.
Cover |
Oct. 15, 2020 |
|---|---|
| Cover [Abstract] | |
| Document Type | 8-K |
| Amendment Flag | false |
| Document Period End Date | Oct. 15, 2020 |
| Entity File Number | 000-51372 |
| Entity Registrant Name | OMEGA FLEX, INC |
| Entity Central Index Key | 0001317945 |
| Entity Tax Identification Number | 23-1948942 |
| Entity Incorporation, State or Country Code | PA |
| Entity Address, Address Line One | 451 Creamery Way |
| Entity Address, City or Town | Exton |
| Entity Address, State or Province | PA |
| Entity Address, Postal Zip Code | 19341 |
| City Area Code | 610 |
| Local Phone Number | 524-7272 |
| Written Communications | false |
| Soliciting Material | false |
| Pre-commencement Tender Offer | false |
| Pre-commencement Issuer Tender Offer | false |
| Title of 12(b) Security | Common Stock, par value $0.01 per share |
| Trading Symbol | OFLX |
| Security Exchange Name | NASDAQ |
| Entity Emerging Growth Company | false |