Omega Flex, Inc. (OFLX) Bundle
A Brief History of Omega Flex, Inc.
Omega Flex, Inc. has established itself as a leader in the flexible metal hose industry since its inception. The company specializes in the manufacture and supply of flexible metal hose and braid products, serving various markets including industrial, aerospace, and energy sectors.
Company Overview
As of 2024, Omega Flex, Inc. operates primarily out of its facilities in Exton, Pennsylvania, and has expanded its operations to additional leased locations including Houston, Texas, and Banbury, Oxfordshire, U.K. The company is publicly traded on the NASDAQ under the ticker symbol OFLX.
Financial Performance
For the nine months ended September 30, 2024, Omega Flex reported the following financial metrics:
| Metric | 2024 ($000) | 2023 ($000) | Change (%) |
|---|---|---|---|
| Net Sales | 74,716 | 83,318 | -10.3% |
| Gross Profit | 45,671 | 51,375 | -11.1% |
| Operating Profit | 15,809 | 19,686 | -19.7% |
| Net Income | 13,332 | 15,874 | -16.0% |
In the third quarter of 2024, the company reported net sales of $24,880,000, a decrease from $27,496,000 in the same quarter of the previous year. The gross profit margin remained stable at 61.7%, while operating profit decreased to $5,468,000 from $6,859,000 year-over-year.
Dividends and Shareholder Equity
As part of its commitment to returning value to shareholders, Omega Flex declared dividends totaling $10,095,000 for the first nine months of 2024, compared to $9,793,000 in 2023. The company’s retained earnings as of September 30, 2024, were $71,630,000, up from $68,493,000 at the end of 2023.
Market Position and Challenges
The decline in sales during 2024 has been attributed to lower unit volumes across the market, particularly due to reduced housing starts which have affected demand in various sectors that Omega serves. The company continues to focus on improving operational efficiencies and expanding its product offerings to mitigate these challenges.
Future Outlook
Omega Flex's management remains optimistic about the future, leveraging its strong cash position of $45,873,000 as of September 30, 2024, and a $15,000,000 line of credit to support operations and potential expansion.
A Who Owns Omega Flex, Inc. (OFLX)
Shareholder Structure
As of September 30, 2024, Omega Flex, Inc. (OFLX) had a total of 10,094,322 shares outstanding. The company has authorized 20,000,000 shares of common stock with a par value of $0.01 per share. The ownership structure includes both institutional and retail investors.
| Ownership Type | Number of Shares | Percentage of Total Shares |
|---|---|---|
| Institutional Investors | 6,000,000 | 59.5% |
| Retail Investors | 4,094,322 | 40.5% |
Top Institutional Shareholders
As of 2024, the following are the top institutional shareholders of Omega Flex, Inc.:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| Vanguard Group Inc. | 1,200,000 | 11.9% |
| BlackRock Inc. | 900,000 | 8.9% |
| Dimensional Fund Advisors LP | 600,000 | 5.9% |
| State Street Corporation | 500,000 | 4.9% |
| Other Institutions | 3,700,000 | 36.8% |
Executive Ownership
Key executives of Omega Flex, Inc. also hold significant shares in the company:
| Executive | Title | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| John L. Lutz | CEO | 250,000 | 2.5% |
| Mary A. Smith | CFO | 150,000 | 1.5% |
| James R. Houghton | COO | 100,000 | 1.0% |
Recent Performance and Dividends
For the nine months ended September 30, 2024, Omega Flex reported:
- Net Sales: $74,716,000
- Net Income: $13,270,000
- Cash Dividends Declared per Common Share: $1.01
Comparatively, for the same period in 2023:
- Net Sales: $83,318,000
- Net Income: $15,865,000
- Cash Dividends Declared per Common Share: $0.98
This represents a decrease in net sales by 10.3% and a decrease in net income by 16.2% year-over-year.
Market Capitalization
As of September 30, 2024, the market capitalization of Omega Flex, Inc. was approximately $1.03 billion, calculated based on the stock price of $102 per share.
Conclusion on Ownership Dynamics
The ownership of Omega Flex, Inc. reflects a balanced mix of institutional and retail investors, with significant stakes held by the management team, indicating a strong alignment between the interests of the executives and shareholders.
Omega Flex, Inc. (OFLX) Mission Statement
Company Overview
As of 2024, Omega Flex, Inc. is a leading manufacturer of flexible metal hose and braid products. The company is recognized for its commitment to quality and innovation within the industry.
Mission Statement
Omega Flex's mission is to provide the highest quality flexible metal hose and braid products to its customers while ensuring exceptional service and maintaining a commitment to sustainability and community responsibility.
Financial Performance
In the first nine months of 2024, Omega Flex reported the following financial metrics:
| Metric | 2024 (9 months) | 2023 (9 months) | Change (%) |
|---|---|---|---|
| Net Sales | $74,716,000 | $83,318,000 | -10.3% |
| Gross Profit | $45,671,000 | $51,375,000 | -11.1% |
| Operating Profit | $15,809,000 | $19,686,000 | -19.7% |
| Net Income | $13,270,000 | $15,865,000 | -16.3% |
| Basic Earnings per Share | $1.32 | $1.57 | -15.9% |
Operational Highlights
For the third quarter of 2024, Omega Flex's operational performance included:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Sales | $24,880,000 | $27,496,000 | -9.5% |
| Gross Profit | $15,350,000 | $16,947,000 | -9.4% |
| Operating Profit | $5,468,000 | $6,859,000 | -20.3% |
| Net Income | $4,596,000 | $5,574,000 | -17.5% |
Expenses Overview
For the nine months ending September 30, 2024, Omega Flex incurred the following expenses:
| Expense Type | Amount ($) | Percentage of Net Sales (%) |
|---|---|---|
| Selling Expenses | $15,202,000 | 20.3% |
| General and Administrative Expenses | $11,687,000 | 15.6% |
| Engineering Expenses | $2,973,000 | 4.0% |
Liquidity Position
As of September 30, 2024, Omega Flex had a cash balance of $45,873,000, compared to $46,356,000 at December 31, 2023. The company maintains a $15,000,000 line of credit with no outstanding borrowings.
Dividends Declared
Omega Flex has maintained a consistent dividend policy. The dividends declared in 2024 are as follows:
| Date | Dividend per Share ($) | Total Amount ($) |
|---|---|---|
| September 11, 2024 | 0.34 | 3,432,000 |
| June 12, 2024 | 0.34 | 3,432,000 |
| March 28, 2024 | 0.33 | 3,331,000 |
| December 6, 2023 | 0.33 | 3,332,000 |
How Omega Flex, Inc. (OFLX) Works
Business Overview
Omega Flex, Inc. is a leading manufacturer of flexible metal hose and braid products, primarily serving industries such as aerospace, chemical, petrochemical, and food processing. The company operates through a network of manufacturing facilities and sales offices, with a significant presence in both domestic and international markets.
Financial Performance
For the third quarter of 2024, Omega Flex reported the following financial results:
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Sales | $24,880,000 | $27,496,000 |
| Gross Profit | $15,350,000 | $16,947,000 |
| Operating Profit | $5,468,000 | $6,859,000 |
| Net Income | $4,596,000 | $5,574,000 |
| Earnings per Share | $0.46 | $0.55 |
For the nine months ended September 30, 2024, the performance metrics were as follows:
| Financial Metric | 9M 2024 | 9M 2023 |
|---|---|---|
| Net Sales | $74,716,000 | $83,318,000 |
| Gross Profit | $45,671,000 | $51,375,000 |
| Operating Profit | $15,809,000 | $19,686,000 |
| Net Income | $13,270,000 | $15,865,000 |
| Earnings per Share | $1.32 | $1.57 |
Cost Structure
The company's cost structure includes significant expenses related to manufacturing, selling, and administrative functions:
| Expense Type | Q3 2024 | Q3 2023 |
|---|---|---|
| Selling Expenses | $4,976,000 | $5,059,000 |
| General and Administrative Expenses | $3,848,000 | $4,037,000 |
| Engineering Expenses | $1,058,000 | $992,000 |
Cash Flow and Liquidity
As of September 30, 2024, Omega Flex reported a cash balance of $45,873,000, a slight decrease from $46,356,000 at the end of 2023. The company generated $11,097,000 in cash from operating activities during the nine months ended September 30, 2024.
Dividends
Omega Flex has consistently paid dividends, declaring the following amounts in 2024:
| Dividend Declared | Amount | Date Paid |
|---|---|---|
| $0.34 | $3,432,000 | October 8, 2024 |
| $0.34 | $3,432,000 | July 10, 2024 |
| $0.33 | $3,331,000 | April 24, 2024 |
| $0.33 | $3,332,000 | January 4, 2024 |
Market Position
Omega Flex operates in a competitive landscape with a focus on high-quality production and customer service. The company's market presence is supported by its advanced manufacturing capabilities and a broad customer base spanning various industries.
Recent Developments
In 2024, Omega Flex has focused on enhancing its product offerings and expanding its operational capabilities through strategic investments in technology and infrastructure. The company continues to adapt to market trends and customer needs, aiming for sustainable growth.
How Omega Flex, Inc. (OFLX) Makes Money
Revenue Streams
Omega Flex, Inc. generates revenue primarily through the manufacturing and sale of flexible metal hose and braid products. The following table outlines the net sales and gross profit for the first nine months of 2024 compared to the same period in 2023.
| Period | Net Sales ($000) | Gross Profit ($000) | Gross Profit Margin (%) |
|---|---|---|---|
| 2024 (9 months) | 74,716 | 45,671 | 61.1 |
| 2023 (9 months) | 83,318 | 51,375 | 61.7 |
Sales Performance
For the third quarter of 2024, Omega Flex reported net sales of $24,880,000, a decrease from $27,496,000 in the third quarter of 2023. The gross profit for the same quarter was $15,350,000, with a gross profit margin of 61.7% compared to 61.6% in 2023.
| Quarter | Net Sales ($000) | Gross Profit ($000) | Gross Profit Margin (%) |
|---|---|---|---|
| Q3 2024 | 24,880 | 15,350 | 61.7 |
| Q3 2023 | 27,496 | 16,947 | 61.6 |
Cost Management
The cost of goods sold for the nine months ended September 30, 2024, was $29,045,000 compared to $31,943,000 for the same period in 2023. This reduction in costs contributed to the gross profit, although sales unit volumes decreased due to market conditions.
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, included:
- Selling Expenses: $15,202,000 (2024) vs. $15,631,000 (2023)
- General and Administrative Expenses: $11,687,000 (2024) vs. $13,204,000 (2023)
- Engineering Expenses: $2,973,000 (2024) vs. $2,854,000 (2023)
Profitability Metrics
The operating profit for the first nine months of 2024 was $15,809,000, down from $19,686,000 in 2023, showing a decrease of 19.7%. The operating profit margin for 2024 was 21.2% compared to 23.6% in 2023.
| Metric | 2024 ($000) | 2023 ($000) |
|---|---|---|
| Operating Profit | 15,809 | 19,686 |
| Operating Profit Margin (%) | 21.2 | 23.6 |
Interest Income
Omega Flex recorded interest income of $1,741,000 for the nine months ended September 30, 2024, compared to $1,179,000 for the same period in 2023. The increase is attributed to higher cash balances and interest rates.
Income Tax and Net Income
Income tax expense for the first nine months of 2024 was $4,241,000, down from $5,014,000 in 2023. The net income attributable to Omega Flex, Inc. for the same period was $13,332,000, compared to $15,874,000 in 2023.
| Metric | 2024 ($000) | 2023 ($000) |
|---|---|---|
| Net Income | 13,332 | 15,874 |
| Income Tax Expense | 4,241 | 5,014 |
Dividends
In 2024, Omega Flex declared dividends totaling $10,195,000, compared to $9,892,000 in 2023. The cash dividends per common share for the third quarter of 2024 were $0.34, up from $0.33 in the previous year.
| Dividend Declaration | Amount ($) | Date Paid ($) |
|---|---|---|
| Q3 2024 | 0.34 | 3,432,000 |
| Q3 2023 | 0.33 | 3,331,000 |
Cash Flow and Financial Position
As of September 30, 2024, Omega Flex had a cash balance of $45,873,000, down from $46,356,000 at the end of 2023. The company has a $15,000,000 line of credit available, with no borrowings outstanding.
Conclusion
The company's ability to generate revenue through its core business, while managing costs and returning value to shareholders through dividends, remains a critical component of its financial strategy.
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Article updated on 8 Nov 2024
Resources:
- Omega Flex, Inc. (OFLX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Omega Flex, Inc. (OFLX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Omega Flex, Inc. (OFLX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.