Omega Flex, Inc. Announces Third Quarter 2024 Earnings

Rhea-AI Summary

Omega Flex (OFLX) reported declining financial results for Q3 2024. Net sales decreased by 10.3% to $74.7 million for the first nine months of 2024, compared to $83.3 million in 2023. Third-quarter net sales fell 9.5% year-over-year. Net income dropped 16% to $13.3 million for the nine-month period, with Q3 net income declining 17.2% compared to 2023. The company attributed these decreases to lower sales volumes amid suppressed market conditions and declining housing starts. Higher overhead expenses from newly leased facilities impacted profitability, though lower raw material costs helped partially offset the decline.

Positive

• Lower raw material costs helped mitigate profit decline

Negative

• Net sales decreased 10.3% to $74.7M for first nine months of 2024
• Q3 net sales declined 9.5% year-over-year
• Net income fell 16% to $13.3M in first nine months
• Q3 net income dropped 17.2% compared to 2023
• Lower production volumes led to reduced factory cost absorption
• Higher overhead expenses from new facility leases
• Decreased sales unit volumes due to suppressed market conditions

		OMEGA FLEX, INC. (OFLX)
		Nine Months Ended September 30,							Three Months Ended September 30,
			2024				2023			2024			2023
Net Sales		$74,716,000				$83,318,000			$24,880,000			$27,496,000
Net Income attributable to Omega Flex, Inc.		$13,332,000				$15,874,000			$4,617,000			$5,576,000
Earnings Per Share – Basic and Diluted		$1.32				$1.57			$0.46			$0.55
Weighted Average Shares – Basic and Diluted			10,094,322				10,094,322			10,094,322			10,094,322

EXTON, Pa., Oct. 30, 2024 (GLOBE NEWSWIRE) -- Dean W. Rivest, CEO, announced that net sales of Omega Flex, Inc. (the “Company”) for the first nine months of 2024 and 2023 were $74,716,000 and $83,318,000, respectively, decreasing $8,602,000 or 10.3%. Net Sales for the three months ended September 30, 2024 were 9.5% lower than for the third 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 nine months of 2024 was $13,332,000, compared to $15,874,000 for the first nine months of 2023, decreasing $2,542,000 or 16.0%. Net income for the third quarter of 2024 was 17.2% 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. Higher overhead expenses, mainly due to newly leased facilities, also contributed to the decrease in net income, and lower raw material costs were among the factors mitigating the decrease. 

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 was Omega Flex (OFLX) revenue for Q3 2024?

Omega Flex reported net sales of $24.88 million for Q3 2024, down 9.5% from $27.496 million in Q3 2023.

How much did Omega Flex (OFLX) earnings per share decline in Q3 2024?

Earnings per share decreased to $0.46 in Q3 2024 from $0.55 in Q3 2023.

What factors caused Omega Flex (OFLX) revenue decline in Q3 2024?

The revenue decline was primarily due to lower sales unit volumes resulting from suppressed market conditions and declining housing starts.

What was Omega Flex (OFLX) net income for the first nine months of 2024?

Net income for the first nine months of 2024 was $13.332 million, down 16% from $15.874 million in the same period of 2023.