Exhibit 99.1
OMEGA FLEX, INC.
Manufacturer of flexible metal hose and gas piping products
Westfield, Massachusetts | Contact: Kevin R. Hoben |
April 27, 2006 | (413) 564-5731 |
INFORMATION CONCERNING FORWARD-LOOKING STATEMENTS - This news release contains forward-looking statement, which are subject to inherent uncertainties which are difficult to predict, and may be beyond the ability of Omega Flex to control.
Certain statement 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.
Omega Flex today reported its results of operations for the First Quarter, 2006:
OMEGA FLEX, INC. (OFLX) | EARNINGS DIGEST |
| | |
First Quarter Ended March 31: | 2006 | 2005 |
| | |
Revenues | $17,315,000 | $13,268,000 |
| | |
Net income before unusual items (Non-GAAP Financial Measure) | 2,860,000 | 1,635,000 |
Stock-based compensation expense (net of tax) | --- | (141,000) |
Unusual legal expenses (net of tax) | (619,000) | (106,000) |
Net income (GAAP Financial Measure) | $2,241,000 | $1,388,000 |
| | |
Basic and diluted earnings per share: | | |
Net income before unusual items (Non-GAAP Financial Measure) per common share | $0.28 | $0.16 |
Stock-based compensation expense (net of tax) | --- | (0.01) |
Unusual legal expenses (net of tax) | (0.06) | (0.01) |
Net income (GAAP Financial Measure) per common share | $0.22 | $0.14 |
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OMEGA FLEX, Inc., 451 Creamery Way, Exton, PA 19341-2509
Tel: 800-671-8622 or 610-524-7272 Fax: 610-524-7582
Omega Flex Corporate Office, 260 North Elm St., Westfield, MA 01085, Tel: 413-875-1000, Fax: 413-564-5814
Kevin R. Hoben, President and CEO, indicated the Company’s sales and earnings for the first quarter of 2006 improved 31% and 61% respectively, over first quarter 2005 results. Income Before Unusual Items, a Non GAAP financial measure which looks at net income before unusual or anomalous items, was up 75% reflecting more clearly the rate of growth in the Company’s operations. The increases are due principally to continued strong sales of the Company’s flexible piping products. Results overall were impacted adversely by non-recurring expenses for stock-based compensation in the first quarter 2005 impacting earnings one cent per share and unusual significant legal expenses in the first quarter 2006 and 2005 impacting earnings six cents per share this year and one cent per share last year, as explained more fully in the Company’s public filings with the Securities and Exchange Commission.
Net Income Before Unusual Items (a "Non-GAAP Financial Measure") for the years first quarter ended March 31, 2006 and 2005 represent the Company's after tax earnings exclusive of items which the Company believes are unusual in nature. Management believes that the unusual items identified, while not necessarily "nonrecurring", are sufficiently anomalous to warrant the presentation of a separate financial measure which allows investors to evaluate the Company's performance exclusive of these items. The unusual items consist of (1) non-recurring stock-based compensation, a non-cash charge to earnings, the obligation for which was cancelled at the time of the “Spin-Off” in July 2005 as explained more fully in the Company’s filings with the Securities and Exchange Commission and (2) unusual legal expenses, also explained more fully in the Company’s filings with the Securities and Exchange Commission.
OMEGA FLEX, Inc., 451 Creamery Way, Exton, PA 19341-2509
Tel: 800-671-8622 or 610-524-7272 Fax: 610-524-7582
Omega Flex Corporate Office, 260 North Elm St., Westfield, MA 01085, Tel: 413-875-1000, Fax: 413-564-5814
