Omega Flex (OFLX) 10-Q 9 May 14 2014 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2014
Document and Entity Information:	'
Entity Registrant Name	'Omega Flex, Inc.
Document Type	'10-Q
Document Period End Date	31-Mar-14
Amendment Flag	'false
Entity Central Index Key	'0001317945
Current Fiscal Year End Date	'--12-31
Entity Common Stock, Shares Outstanding	10,091,822
Entity Filer Category	'Smaller Reporting Company
Entity Current Reporting Status	'Yes
Entity Voluntary Filers	'No
Entity Well-known Seasoned Issuer	'No
Document Fiscal Year Focus	'2014
Document Fiscal Period Focus	'Q1

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (USD $)	Mar. 31, 2014		Dec. 31, 2013
In Thousands, unless otherwise specified
Current Assets	'		'
Cash and Cash Equivalents	$6,899		$8,257
Accounts Receivable	11,241	[1]	12,968	[2]
Inventories-Net	7,019		6,728
Deferred Taxes	766		871
Other Current Assets	989		1,359
Total Current Assets	26,914		30,183
Property and Equipment - Net	4,645		4,762
Goodwill-Net	3,526		3,526
Other Long Term Assets	1,540		1,603
Total Assets	36,625		40,074
Current Liabilities:	'		'
Accounts Payable	1,356		1,793
Accrued Compensation	818		3,114
Accrued Commissions and Sales Incentives	1,711		3,934
Taxes Payable	472		134
Other Liabilities	2,457		3,575
Total Current Liabilities	6,814		12,550
Deferred Taxes	1,192		1,032
Other Long Term Liabilities	750		861
Total Liabilities	8,756		14,443
Omega Flex, Inc. Shareholders' Equity:	'		'
Common Stock	102	[3]	102	[3]
Treasury Stock	-1		-1
Paid-in Capital	10,808		10,808
Retained Earnings	17,124		14,929
Accumulated Other Comprehensive Loss	-315		-329
Total Omega Flex, Inc. Shareholders' Equity	27,718		25,509
Noncontrolling Interest	151		122
Total Shareholders' Equity	27,869		25,631
Total Liabilities and Shareholders' Equity	$36,625		$40,074
[1]	Less allowance of $589.
[2]	Less allowance of $729
[3]	Common Stock - par value $0.01 per share; authorized 20,000,000 shares: 10,153,633 shares issued and 10,091,822 outstanding at both, March 31, 2014 and December 31, 2013, respectively.

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS - PARENTHETICAL (unaudited) (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Thousands, except Share data, unless otherwise specified
CONDENSED CONSOLIDATED BALANCE SHEETS	'	'
Allowance for doubtful Accounts Receivable	$589	$729
Common Stock, Par Value	$0.01	$0.01
Common Stock, Shares Authorized	20,000,000	20,000,000
Common Stock, Shares Issued	10,153,633	10,153,633
Common Stock, Shares Outstanding	10,091,822	10,091,822

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
CONDENSED CONSOLIDATED STATEMENTS OF INCOME	'	'
Net Sales	$16,589	$16,382
Cost of Goods Sold	7,310	7,782
Gross Profit	9,279	8,600
Selling Expense	3,123	3,048
General and Administrative Expense	2,187	2,371
Engineering Expense	704	718
Operating Profit	3,265	2,463
Interest Income (Expense), Net	6	-1
Other Income (Expense), Net	-8	-84
Income Before Income Taxes	3,263	2,378
Income Tax Expense	1,041	794
Net Income	2,222	1,584
Net (Income) Loss attributable to the Noncontrolling Interest, net of tax	-27	-2
Net Income attributable to Omega Flex, Inc.	$2,195	$1,582
Basic and Diluted Earnings per Common Share	$0.22	$0.16
Basic and Diluted Weighted-Average Shares Outstanding	10,092	10,092

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME	'	'
Net Income	$2,222	$1,584
Other Comprehensive Income (Loss), Net of Tax:	'	'
Foreign Currency Translation Adjustment, Net of Taxes	16	-57
Other Comprehensive Income	16	-57
Comprehensive Income	2,238	1,527
Less: Comprehensive Income (Loss) Attributable to the Noncontrolling Interest	-28	2
Total Other Comprehensive Income	$2,210	$1,529

CONDENSED_CONSOLIDATED_STATEME2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Cash Flows from Operating Activities:	'	'
Net Income	$2,222	$1,584
Adjustments to Reconcile Net Income to Net Cash Provided By (Used In) Operating Activities:	'	'
Non-Cash Compensation Expense	85	126
Depreciation and Amortization	143	132
Provision for Losses on Accounts Receivable, net of write-offs and recoveries	-140	-80
Changes in Assets and Liabilities	'	'
Accounts Receivable Change	1,878	1,910
Inventory Change	-286	-514
Other Assets Change	534	277
Accounts Payable Change	-437	-653
Accrued Compensation Change	-2,296	254
Accrued Commissions and Sales Incentives Change	-2,224	-1,764
Other Liabilities Change	-820	-1,086
Net Cash Provided by (Used In) Operating Activities	-1,341	186
Cash Flows from Investing Activities:	'	'
Capital Expenditures	-25	-92
Net Cash Provided By (Used In) Investing Activities	-25	-92
Cash Flows from Financing Activities:	'	'
Principal Payments on Line of Credit	'	-324
Net Cash Provided by (Used In) Financing Activities	'	-324
Net Increase (Decrease) in Cash and Cash Equivalents	-1,366	-230
Translation effect on cash	8	-51
Cash and Cash Equivalents - Beginning of Period	8,257	939
Cash and Cash Equivalents - End of Period	6,899	658
Supplemental Disclosure of Cash Flow Information	'	'
Cash paid for Income Taxes	434	364
Cash paid for Interest	$0	$1

1_Basis_of_Presentation_and_De

1. Basis of Presentation and Description of Business	3 Months Ended
	Mar. 31, 2014
Notes	'
1. Basis of Presentation and Description of Business	'
	1.  BASIS OF PRESENTATION AND DESCRIPTION OF BUSINESS
	Basis of Presentation
	The accompanying unaudited condensed consolidated financial statements include the accounts of Omega Flex, Inc. (Omega) and its subsidiaries (collectively the “Company”).  The Company’s unaudited  condensed consolidated financial statements for the quarter ended March 31, 2014 have been prepared in accordance with accounting principles generally accepted in the United States (GAAP), and with the instructions of Form 10-Q and Article 10 of Regulation S-X.  Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to those rules and regulations, although the company believes that the disclosures made are adequate to make the information not misleading.  It is suggested that these condensed consolidated financial statements be read in conjunction with the financial statements and the notes thereto included in the Company’s latest shareholders’ annual report (Form 10-K).  All material inter-company accounts and transactions have been eliminated in consolidation.  It is Management’s opinion that all adjustments necessary for a fair statement of the results for the interim periods have been made, and that all adjustments are of a normal recurring nature or a description is provided for any adjustments that are not of a normal recurring nature.
	Description of Business
	The Company is a leading manufacturer of flexible metal hose, which is used in a variety of applications to carry gases and liquids within their particular applications.  These applications include carrying liquefied gases in certain processing applications, fuel gases within residential and commercial buildings and vibration absorbers in high vibration applications.  In addition, our flexible metal piping is used to carry other types of gases or fluids in a number of industrial applications where the customer requires a degree of flexibility, an ability to carry corrosive compounds or mixtures, a double containment system, or piping to carry gases or fluids at very high or very low (cryogenic) temperatures.
	The Company manufactures flexible metal hose at its facility in Exton, Pennsylvania, with a minor amount of manufacturing performed in the United Kingdom.  The Company sells its product through distributors, wholesalers and to original equipment manufacturers (“OEMs”) throughout North America, and in certain European markets.

2_Significant_Accounting_Polic

2. Significant Accounting Policies	3 Months Ended
	Mar. 31, 2014
Notes	'
2. Significant Accounting Policies	'
	2. SIGNIFICANT ACCOUNTING POLICIES
	Use of Estimates
	The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and, the disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. The most significant estimates and assumptions relate to revenue recognition and related sales incentives, accounts receivable valuations, inventory valuations, goodwill valuation, product liability reserve and accounting for income taxes.  Actual amounts could differ significantly from these estimates.
	Revenue Recognition
	The Company’s revenue recognition activities relate almost entirely to the manufacture and sale of flexible metal hose and pipe.  Under GAAP, revenues are considered to have been earned when the Company has substantially accomplished what it must do to be entitled to the benefits represented by the revenues.  The following criteria represent preconditions to the recognition of revenue:
	·    Persuasive evidence of an arrangement for the sale of product or services must exist.
	·    Delivery has occurred or services rendered.
	·    The sales price to the customer is fixed or determinable.
	·    Collection is reasonably assured.
	The Company recognizes revenue upon shipment in accordance with the above principles.
	Gross sales are reduced for all consideration paid to customers for whom no identifiable benefit is received by the Company.  This includes promotional incentives, which includes various programs including year-end rebates and discounts.  The amounts of certain incentives are known with reasonable certainty at the time of sale, while others are projected based upon the most reliable information available at the reporting date.
	Commissions, for which the Company receives an identifiable benefit, are accounted for as a sales expense.
	Accounts Receivable
	Accounts receivable are reduced by an allowance for amounts that may become uncollectible in the future. The estimated allowance for uncollectible amounts is based primarily on specific analysis of accounts in the receivable portfolio and historical write-off experience. While management believes the allowance to be adequate, if the financial condition of the Company’s customers were to deteriorate, resulting in their inability to make payments, additional allowances may be required.
	Inventory
	Inventories are valued at the lower of cost or market.  Cost of inventories is determined by the first-in, first-out (FIFO) method.  The Company generally considers inventory quantities beyond two-years usage, measured on a historical usage basis, to be excess inventory and reduces the gross carrying value of inventory accordingly.
	Goodwill
	In accordance with Financial Accounting Standards Board (FASB) ASC Topic 350, Intangibles – Goodwill and Other, the Company performed an annual impairment test in accordance with this guidance as of December 31, 2013.  This analysis did not indicate any impairment of goodwill.  There are no circumstances that indicate that Goodwill might be impaired at March 31, 2014.
	Product Liability Reserves
	Product liability reserves represent the unpaid amounts under the Company’s insurance policies with respect to claims that have been resolved.  The Company uses the most current available data to estimate claims.  As explained more fully under Contingencies, for various product liability claims covered under the Company’s general liability insurance policies, the Company must pay certain defense costs within its deductible or self-insured retention limits, ranging primarily from $25,000 to $250,000 per claim, depending on the terms of the policy in the applicable policy year, up to an aggregate amount.  The Company is vigorously defending against all known claims.
	Fair Value of Financial and Nonfinancial Instruments
	The Company measures financial instruments in accordance with FASB ASC Topic 820, Fair Value Measurements and Disclosures.  The accounting standard defines fair value, establishes a framework for measuring fair value under GAAP, and enhances disclosures about fair value measurements.  Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.  Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs.  The standard creates a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels as follows: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and Level 3 inputs are unobservable inputs that reflect the Company’s own assumptions about the assumptions market participants would use in pricing the asset or liability. The Company relies on its actively traded share value – a level 1 input – in determining the fair value of the reporting unit in its annual impairment test as described in the FASB ASC Topic 350, Intangibles - Goodwill and Other.
	Earnings per Common Share
	Basic earnings per share have been computed using the weighted-average number of common shares outstanding.  For the periods presented, there are no dilutive securities.  Consequently, basic and dilutive earnings per share are the same.
	Currency Translation
	Assets and liabilities denominated in foreign currencies are translated into U.S. dollars at exchange rates prevailing on the balance sheet dates.  The Statements of Income are translated into U.S. dollars at average exchange rates for the period.  Adjustments resulting from the translation of financial statements are excluded from the determination of income and are accumulated in a separate component of shareholders’ equity.  Exchange gains and losses resulting from foreign currency transactions are included in operations (other (income) expense) in the period in which they occur.
	Income Taxes
	The Company accounts for taxes in accordance with the FASB ASC Topic 740, Income Taxes.  Under this method the Company records income tax expense and the related deferred taxes and tax benefits.
	Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases.  Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.  The effect on deferred tax assets and liabilities from a change in tax rates is recognized in income in the period in which the rate is enacted.  A valuation allowance is provided for deferred tax assets if it is more likely than not that these items will either expire before the Company is able to realize the benefit, or that future deductibility is uncertain.  No valuation reserve was deemed necessary at March 31, 2014 or at December 31, 2013.  Also, in accordance with FASB ASC Topic 740 (formerly FIN 48), the Company had reserves on the books for uncertainties in tax positions of $105,000 at March 31, 2014, and $100,000 at December 31, 2013.  These reserves are reviewed each quarter.
	Other Comprehensive Income
	For the quarter ended March 31, 2014 and 2013, respectively, the sole component of Other Comprehensive Income was a foreign currency translation adjustment.
	New Accounting Pronouncements
	ASU 2013-11, “Income Taxes (Topic 740): Presentation of Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (a consensus of the FASB Emerging Issues Task Force).  Per this ASU, an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows.  To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets.  The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013.  The adoption of this guidance did not have a material effect on the Company’s financial statements.
	Concentrations
	The Company has one significant customer who represents more than 10% of the Company’s Net Sales for the first three months of 2014 and 2013, and more than 10% of the Company’s Accounts Receivable balance at March 31, 2014 and December 31, 2013.  Geographically, the Company has a significant amount of sales in the United States versus internationally. These concentrations are discussed in detail in the Company’s December 31, 2013 Form 10-K, and there has been little change as of this quarterly report.

3_Inventories

3. Inventories	3 Months Ended
	Mar. 31, 2014
Notes	'
3. Inventories	'
	3. INVENTORIES
	Inventories, net of reserves of $1,006,000 and $1,094,000, respectively, consisted of the following:
		March 31,	December 31,
		2014	2013
		(dollars in thousands)
	Finished Goods	$5,098	$4,839
	Raw Materials	1,921	1,889
	Inventories - Net	$7,019	$6,728

4_Line_of_Credit

4. Line of Credit	3 Months Ended
	Mar. 31, 2014
Notes	'
4. Line of Credit	'
	4. LINE OF CREDIT
	On December 30, 2010, the Company agreed to a new Revolving Line of Credit Note and Loan Agreement with Santander Bank, formerly Sovereign Bank, NA (“Sovereign”).  The Company established a line of credit facility in the maximum amount of $10,000,000, maturing on December 31, 2014, with funds available for working capital purposes and other cash needs.  The loan is collateralized by all of the Company’s tangible and intangible assets.  The loan agreement provides for the payment of any borrowings under the agreement at an interest rate range of either LIBOR plus 1.75% to plus 2.75% (for borrowings with a fixed term of 30, 60, or 90 days), or, Prime less 0.50% to plus 0.50% (for borrowings with no fixed term other than the December 31, 2014 maturity date), depending upon the Company’s then existing financial ratios.  At March 31, 2014, the Company’s ratio would allow for the most favorable rate under the agreement’s range, which would be a rate of 1.98% (LIBOR plus 1.75%). The Company is required to pay an annual commitment fee for the access to the funds, and is also obligated to pay a “Line Fee” ranging from 17.5 to 35.0 basis points of the average unused balance on a quarterly basis, depending again upon the Company’s then existing financial ratios.  The Company may terminate the line at any time during the four year term, as long as there are no amounts outstanding.
	As of March 31, 2014 and December 31, 2013, the Company had no outstanding balance withdrawn on the Line of Credit.
	As of March 31, 2014 and December 31, 2013, the Company was in compliance with all debt covenants.

5_Commitments_and_Contingencie

5. Commitments and Contingencies	3 Months Ended
	Mar. 31, 2014
Notes	'
5. Commitments and Contingencies	'
	5. COMMITMENTS AND CONTINGENCIES
	Commitments:
	Under a number of indemnity agreements between the Company and each of its officers and directors, the Company has agreed to indemnify each of its officers and directors against any liability asserted against them in their capacity as an officer or director, or both.  The Company’s indemnity obligations under the indemnity agreements are subject to certain conditions and limitations set forth in each of the agreements.  Under the terms of the Agreement, the Company is contingently liable for costs which may be incurred by the officers and directors in connection with claims arising by reason of these individuals’ roles as officers and directors.  The Company has obtained directors’ and officers’ insurance policies to fund certain obligations under the indemnity agreements.
	The Company has salary continuation agreements with one current employee, and one former employee who retired at the end of 2010.  These agreements provide for monthly payments to each of the employees or their designated beneficiary upon the employee’s retirement or death.  The payment benefits range from $1,000 per month to $3,000 per month with the term of such payments limited to 15 years after the employee’s retirement at age 65.  The agreements also provide for survivorship benefits if the employee dies before attaining age 65, and severance payments if the employee is terminated without cause; the amount of which is dependent on the length of company service at the date of termination.  The net present value of the retirement payments associated with these agreements is $453,000 at March 31, 2014, of which $441,000 is included in Other Long Term Liabilities, and the remaining current portion of $12,000 is included in Other Liabilities, associated with the retired employee previously noted who is now receiving benefit payments.  The December 31, 2013 liability of $451,000, had $439,000 reported in Other Long Term Liabilities, and a current portion of $12,000 in Other Liabilities.
	The Company has obtained and is the beneficiary of three whole life insurance policies with respect to the two employees discussed above, and one other employee policy.  The cash surrender value of such policies (included in Other Long Term Assets) amounts to $987,000 at March 31, 2014 and $962,000 at December 31, 2013.
	As disclosed in the Company’s December 31, 2013 Form 10-K in Note 9, under the caption “Leases”, the Company has several lease obligations in place that will be paid out over time.  Most notably, the Company has a lease for the manufacturing facility in Banbury, England, and also the new building lease in Exton, Pennsylvania near the current main operating facility, which provides additional manufacturing, warehousing and distribution space.
	Contingencies:
	The Company’s general liability insurance policies are subject to deductibles or retentions, ranging primarily from $25,000 to $250,000 per claim, (depending on the terms of the policy and the applicable policy year) up to an aggregate amount.  The Company is insured on a ‘first dollar’ basis for workers’ compensation subject to statutory limits.  In the ordinary and normal conduct of the Company’s business, it is subject to periodic lawsuits, investigations and claims (collectively, the “Claims”).  Compared to the Company’s experience prior to 2010, when the Company took its first lightning related case to trial in Pennsylvania as detailed below, there has been an increase in the number of those Claims relating primarily to product liability.  Although the pace of new Claims has slowed during 2014, many of the new Claims are associated with higher deductable or retention programs.  The Company does not believe that the Claims have legal merit, and is therefore vigorously defending against those Claims.  In 2013, the Company won two of the Claims at two separate trials, both of which were held in U.S. District Court; one in St. Louis, Missouri and the other in Bridgeport, Connecticut.  In both cases, the jury unanimously found that the Company was not negligent in designing its TracPipe® product, and that the TracPipe® product was not defective or unreasonably dangerous.  In 2010, the Company took its first Claim to trial in Pennsylvania, and the jury returned a verdict that the Company was not negligent in designing and selling the TracPipe product, but that under the unique law in Pennsylvania for strict liability, the product lacked “any element” necessary to make it safe for its intended use.  The Company has appealed that portion of the verdict, and the Supreme Court of Pennsylvania heard oral arguments on that case with the focus on whether the product liability law in Pennsylvania should be revised.  A decision is expected in 2014.
	The Company has in place commercial general liability insurance policies that cover the Claims, as noted above, including those alleging damages as a result of product defects.  Litigation is subject to many uncertainties and management is unable to predict the outcome of the pending suits and claims. The potential liability for a given claim could range from zero to a maximum of $250,000, depending upon the insurance deductible or retention in place for the respective claim year.  The aggregate maximum exposure for all current open Claims is estimated to not exceed approximately $4,000,000, which represents the potential costs that may be incurred over time for the Claims within the applicable insurance policy deductibles or retentions.  It is possible that the results of operations or liquidity of the Company, as well as the Company’s ability to procure reasonably priced insurance, could be adversely affected by the pending litigation, potentially materially. The Company is currently unable to estimate the ultimate liability, if any, that may result from the pending litigation, or potential litigation from future claims or claims that have not yet come to our attention, and accordingly, the liability in the consolidated financial statements primarily represents an accrual for legal costs for services previously rendered and outstanding settlements for existing claims. The liabilities recorded on the Company’s books at March 31, 2014 and December 31, 2013 were $488,000 and $686,000, respectively, and are included in Other Liabilities.
	Finally, two putative class action cases have been filed against the Company; one in U.S. District Court for the Middle District of Florida titled Hall v. Omega Flex, Inc. and one in U.S. District Court for the Southern District of Ohio titled Schoelwer v. Omega Flex, Inc.  In both cases, the lead plaintiffs claimed that they are exposed to an increased likelihood of harm if one of the plaintiffs’ houses that contain TracPipe CSST is struck by lightning, that could damage the CSST causing a release of fuel gas in the house and causing a fire.  However, none of the lead plaintiffs have suffered any actual harm.  In January 2014, the judge in the Hall case granted the Company’s motion to dismiss all of the plaintiff’s claims due primarily to a lack of jurisdiction because there is no actual case or controversy posed by these claims.  The plaintiff in Schoelwer voluntarily dismissed her claims in January 2014.
	In February of 2012, the Company was made aware of a fraud perpetrated by an outside party involving insurance related premiums that the Company had prepaid for umbrella coverage. The assets are currently secured by a governmental agency who investigated the case, held in a custodial account.  As of May of 2014, utilizing the secured funds, the court has ordered restitution to all victims including Omegaflex.  It is not clear however at this point what amount will eventually be received by the Company.  The value of the assets on the books amount to $213,000 at March 31, 2014, and $227,000 at December 31, 2013, and are included in Other Long Term Assets.  It is possible that not all of those funds will be returned to the Company, or the Company may need to incur additional costs to procure collection.  The Company is currently pursing all avenues in an effort to bring closure to the event, reclaim the assets, and has since replaced the aforementioned insurance coverage.

6_Stock_Based_Plans

6. Stock Based Plans	3 Months Ended
	Mar. 31, 2014
Notes	'
6. Stock Based Plans	'
	6. STOCK BASED PLANS
	Phantom Stock Plan
	Plan Description.  On April 1, 2006, the Company adopted the Omega Flex, Inc. 2006 Phantom Stock Plan (the “Plan”).  The Plan authorizes the grant of up to one million units of phantom stock to employees, officers or directors of the Company and of any of its subsidiaries.  The phantom stock units ("Units") each represent a contractual right to payment of compensation in the future based on the market value of the Company’s common stock.
	The Units are not shares of the Company’s common stock, and a recipient of the Units does not receive any of the following:
	§         ownership interest in the Company
	§         shareholder voting rights
	§         other incidents of ownership to the Company’s common stock
	The Units are granted to participants upon the recommendation of the Company’s CEO, and the approval of the Compensation Committee.  Each of the Units that are granted to a participant will be initially valued by the Compensation Committee, and at a minimum, the Unit’s value will be equal to the closing price of the Company’s common stock on the grant date.  The Units follow a vesting schedule, with a maximum vesting of 3 years after the grant date.  Upon vesting, the Units represent a contractual right of payment for the value of the Unit. The Units will be paid on their maturity date, one year after all of the Units granted in a particular award have fully vested, unless an acceptable event occurs under the terms of the Plan prior to one year, which would allow for earlier payment.  The amount to be paid to the participant on the maturity date is dependent on the type of Unit granted to the participant.
	The Units may be Full Value, in which the value of each Unit at the maturity date, will equal the closing price of the Company’s common stock as of the maturity date; or Appreciation Only, in which the value of each Unit at the maturity date will be equal to the closing price of the Company’s common stock at the maturity date minus the closing price of the Company’s common stock at the grant date.
	On December 9, 2009, the Board of Directors authorized an amendment to the Plan to pay an amount equal to the value of any cash or stock dividend declared by the Company on its common stock to be accrued to the phantom stock units outstanding as of the record date of the common stock dividend.  The dividend equivalent will be paid at the same time the underlying phantom stock units are paid to the participant.
	In certain circumstances, the Units may be immediately vested upon the participant’s death or disability.  All Units granted to a participant are forfeited if the participant is terminated from his relationship with the Company or its subsidiary for “cause,” which is defined under the Plan.  If a participant’s employment or relationship with the Company is terminated for reasons other than for “cause,” then any vested Units will be paid to the participant upon termination.  However, Units granted to certain “specified employees” as defined in Section 409A of the Internal Revenue Code will be paid approximately 181 days after termination.
	Grants of Phantom Stock Units.  As of December 31, 2013, the Company had 17,193 unvested units outstanding, all of which were granted at Full Value.  On February 19, 2014, the Company granted an additional 10,460 Full Value Units with a fair value of $17.72 per unit on grant date, using historical volatility. In March 2014, the Company paid $199,000 for the 8,100 fully vested and matured units that were granted on March 3, 2010, including their respective earned dividend values.  As of March 31, 2014, the Company had 22,056 unvested units outstanding.
	The Company uses the Black-Scholes option pricing model as its method for determining fair value of the Units.  The Company uses the straight-line method of attributing the value of the stock-based compensation expense relating to the Units.  The compensation expense (including adjustment of the liability to its fair value) from the Units is recognized over the vesting period of each grant or award.
	The FASB ASC Topic 718, Stock Compensation, requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates in order to derive the Company’s best estimate of awards ultimately to vest.
	Forfeitures represent only the unvested portion of a surrendered Unit and are typically estimated based on historical experience.  Based on an analysis of the Company’s historical data, which has limited experience related to any stock-based plan forfeitures, the Company applied a 0% forfeiture rate to Plan Units outstanding in determining its Plan Unit compensation expense as of March 31, 2014.
	The total Phantom Stock related liability as of March 31, 2014 was $385,000 of which $181,000 is included in other liabilities, as it is expected to be paid in March 2015, and the balance of $204,000 is included in other long term liabilities.
	In accordance with FASB ASC Topic 718, Stock Compensation, the Company recorded compensation expense of approximately $85,000 and $126,000 related to the Phantom Stock Plan for the three months ended March 31, 2014 and 2013, respectively.
	The following table summarizes information about the Company’s nonvested phantom stock Units at March 31, 2014:
		Units	Weighted Average Grant Date Fair Value
	Number of Phantom Stock Unit Awards:
	Nonvested at December 31, 2013	17,193	$12.89
	Granted	10,460	$17.72
	Vested	(5,597)	$12.56
	Forfeited	(---)	---
	Canceled	(---)	---
	Nonvested at March 31, 2014	22,056	$15.27
	Phantom Stock Unit Awards Expected to Vest	22,056	$15.27
	The total unrecognized compensation costs calculated at March 31, 2014 are $359,000 which will be recognized through March of 2017.  The Company will recognize the related expense over the weighted average period of 1.98 years.

7_Noncontrolling_Interests

7. Noncontrolling Interests	3 Months Ended
	Mar. 31, 2014
Notes	'
7. Noncontrolling Interests	'
	7.  NONCONTROLLING INTERESTS
	The Company owns 100% of all subsidiaries, except for its UK subsidiary Omega Flex, Limited, of which it owns 95%.  A noncontrolling interest owns the other 5%, and held a value of $122,000 at December 31, 2013.  The total equity of the Company including the non-controlling interest was $25,631,000 at December 31, 2013.
	For the three months ended March 31, 2014, the operations of Omega Flex, Limited had income of $550,000.  The noncontrolling interest’s portion of the income was $27,000.
	The noncontrolling interest must also recognize its share of any currency translation adjustment, since the subsidiary’s functional currency is British Pounds, and the local books are translated into US Dollars for consolidation purposes.  The noncontrolling interest’s share of foreign currency translation gain was $1,000 as of March 31, 2014.
	At March 31, 2014, after considering the income and foreign currency translation components described above, the balance of the noncontrolling interest was $151,000.

8_Shareholders_Equity

8. Shareholders' Equity	3 Months Ended
	Mar. 31, 2014
Notes	'
8. Shareholders' Equity	'
	8. SHAREHOLDERS’ EQUITY
	As of March 31, 2014 and December 31, 2013, the Company had authorized 20,000,000 common stock shares with par value of $0.01 per share.  For both periods, the number of shares issued was 10,153,633, and the total number of outstanding shares was 10,091,822, with the 61,811 variance representing shares held in Treasury.
	On April 4, 2014, the Company’s Board of Directors authorized an extension of its stock repurchase program without expiration, up to a maximum amount of $1,000,000.  The original program established in December 2007 authorized the purchase of up to $5,000,000 of its common stock.  The purchases may be made from time-to-time in the open market or in privately negotiated transactions, depending on market and business conditions.  The Board retained the right to cancel, extend, or expand the share buyback program, at any time and from time-to-time.  Since inception, the Company has purchased a total of 61,811 shares for approximately $932,000, or approximately $15 per share.  The Company did not make any stock repurchases during the first three months of 2014, or during 2013.

9_Subsequent_Events

9. Subsequent Events	3 Months Ended
	Mar. 31, 2014
Notes	'
9. Subsequent Events	'
	9.    SUBSEQUENT EVENTS
	The Company evaluated all events or transactions that occurred through the date of this filing.  During this period, the Company did not have any material subsequent events that impacted its condensed consolidated financial statements that are not disclosed.

2_Significant_Accounting_Polic1

2. Significant Accounting Policies: Use of Estimates (Policies)	3 Months Ended
	Mar. 31, 2014
Policies	'
Use of Estimates	'
	Use of Estimates
	The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and, the disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. The most significant estimates and assumptions relate to revenue recognition and related sales incentives, accounts receivable valuations, inventory valuations, goodwill valuation, product liability reserve and accounting for income taxes.  Actual amounts could differ significantly from these estimates.

2_Significant_Accounting_Polic2

2. Significant Accounting Policies: Revenue Recognition (Policies)	3 Months Ended
	Mar. 31, 2014
Policies	'
Revenue Recognition	'
	Revenue Recognition
	The Company’s revenue recognition activities relate almost entirely to the manufacture and sale of flexible metal hose and pipe.  Under GAAP, revenues are considered to have been earned when the Company has substantially accomplished what it must do to be entitled to the benefits represented by the revenues.  The following criteria represent preconditions to the recognition of revenue:
	·    Persuasive evidence of an arrangement for the sale of product or services must exist.
	·    Delivery has occurred or services rendered.
	·    The sales price to the customer is fixed or determinable.
	·    Collection is reasonably assured.
	The Company recognizes revenue upon shipment in accordance with the above principles.
	Gross sales are reduced for all consideration paid to customers for whom no identifiable benefit is received by the Company.  This includes promotional incentives, which includes various programs including year-end rebates and discounts.  The amounts of certain incentives are known with reasonable certainty at the time of sale, while others are projected based upon the most reliable information available at the reporting date.
	Commissions, for which the Company receives an identifiable benefit, are accounted for as a sales expense.

2_Significant_Accounting_Polic3

2. Significant Accounting Policies: Accounts Receivable (Policies)	3 Months Ended
	Mar. 31, 2014
Policies	'
Accounts Receivable	'
	Accounts Receivable
	Accounts receivable are reduced by an allowance for amounts that may become uncollectible in the future. The estimated allowance for uncollectible amounts is based primarily on specific analysis of accounts in the receivable portfolio and historical write-off experience. While management believes the allowance to be adequate, if the financial condition of the Company’s customers were to deteriorate, resulting in their inability to make payments, additional allowances may be required.

2_Significant_Accounting_Polic4

2. Significant Accounting Policies: Inventory (Policies)	3 Months Ended
	Mar. 31, 2014
Policies	'
Inventory	'
	Inventory
	Inventories are valued at the lower of cost or market.  Cost of inventories is determined by the first-in, first-out (FIFO) method.  The Company generally considers inventory quantities beyond two-years usage, measured on a historical usage basis, to be excess inventory and reduces the gross carrying value of inventory accordingly.

2_Significant_Accounting_Polic5

2. Significant Accounting Policies: Goodwill (Policies)	3 Months Ended
	Mar. 31, 2014
Policies	'
Goodwill	'
	Goodwill
	In accordance with Financial Accounting Standards Board (FASB) ASC Topic 350, Intangibles – Goodwill and Other, the Company performed an annual impairment test in accordance with this guidance as of December 31, 2013.  This analysis did not indicate any impairment of goodwill.  There are no circumstances that indicate that Goodwill might be impaired at March 31, 2014.

2_Significant_Accounting_Polic6

2. Significant Accounting Policies: Product Liability Reserves (Policies)	3 Months Ended
	Mar. 31, 2014
Policies	'
Product Liability Reserves	'
	Product Liability Reserves
	Product liability reserves represent the unpaid amounts under the Company’s insurance policies with respect to claims that have been resolved.  The Company uses the most current available data to estimate claims.  As explained more fully under Contingencies, for various product liability claims covered under the Company’s general liability insurance policies, the Company must pay certain defense costs within its deductible or self-insured retention limits, ranging primarily from $25,000 to $250,000 per claim, depending on the terms of the policy in the applicable policy year, up to an aggregate amount.  The Company is vigorously defending against all known claims.

2_Significant_Accounting_Polic7

2. Significant Accounting Policies: Fair Value of Financial and Nonfinancial Instruments (Policies)	3 Months Ended
	Mar. 31, 2014
Policies	'
Fair Value of Financial and Nonfinancial Instruments	'
	Fair Value of Financial and Nonfinancial Instruments
	The Company measures financial instruments in accordance with FASB ASC Topic 820, Fair Value Measurements and Disclosures.  The accounting standard defines fair value, establishes a framework for measuring fair value under GAAP, and enhances disclosures about fair value measurements.  Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.  Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs.  The standard creates a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels as follows: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and Level 3 inputs are unobservable inputs that reflect the Company’s own assumptions about the assumptions market participants would use in pricing the asset or liability. The Company relies on its actively traded share value – a level 1 input – in determining the fair value of the reporting unit in its annual impairment test as described in the FASB ASC Topic 350, Intangibles - Goodwill and Other.

2_Significant_Accounting_Polic8

2. Significant Accounting Policies: Earnings Per Common Share (Policies)	3 Months Ended
	Mar. 31, 2014
Policies	'
Earnings Per Common Share	'
	Earnings per Common Share
	Basic earnings per share have been computed using the weighted-average number of common shares outstanding.  For the periods presented, there are no dilutive securities.  Consequently, basic and dilutive earnings per share are the same.

2_Significant_Accounting_Polic9

2. Significant Accounting Policies: Currency Translation (Policies)	3 Months Ended
	Mar. 31, 2014
Policies	'
Currency Translation	'
	Currency Translation
	Assets and liabilities denominated in foreign currencies are translated into U.S. dollars at exchange rates prevailing on the balance sheet dates.  The Statements of Income are translated into U.S. dollars at average exchange rates for the period.  Adjustments resulting from the translation of financial statements are excluded from the determination of income and are accumulated in a separate component of shareholders’ equity.  Exchange gains and losses resulting from foreign currency transactions are included in operations (other (income) expense) in the period in which they occur.

Recovered_Sheet1

2. Significant Accounting Policies: Income Taxes (Policies)	3 Months Ended
	Mar. 31, 2014
Policies	'
Income Taxes	'
	Income Taxes
	The Company accounts for taxes in accordance with the FASB ASC Topic 740, Income Taxes.  Under this method the Company records income tax expense and the related deferred taxes and tax benefits.
	Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases.  Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.  The effect on deferred tax assets and liabilities from a change in tax rates is recognized in income in the period in which the rate is enacted.  A valuation allowance is provided for deferred tax assets if it is more likely than not that these items will either expire before the Company is able to realize the benefit, or that future deductibility is uncertain.  No valuation reserve was deemed necessary at March 31, 2014 or at December 31, 2013.  Also, in accordance with FASB ASC Topic 740 (formerly FIN 48), the Company had reserves on the books for uncertainties in tax positions of $105,000 at March 31, 2014, and $100,000 at December 31, 2013.  These reserves are reviewed each quarter.

Recovered_Sheet2

2. Significant Accounting Policies: Other Comprehensive Income (loss) (Policies)	3 Months Ended
	Mar. 31, 2014
Policies	'
Other Comprehensive Income (loss)	'
	Other Comprehensive Income
	For the quarter ended March 31, 2014 and 2013, respectively, the sole component of Other Comprehensive Income was a foreign currency translation adjustment.

Recovered_Sheet3

2. Significant Accounting Policies: New Accounting Pronouncements (Policies)	3 Months Ended
	Mar. 31, 2014
Policies	'
New Accounting Pronouncements	'
	New Accounting Pronouncements
	ASU 2013-11, “Income Taxes (Topic 740): Presentation of Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (a consensus of the FASB Emerging Issues Task Force).  Per this ASU, an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows.  To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets.  The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013.  The adoption of this guidance did not have a material effect on the Company’s financial statements.

Recovered_Sheet4

2. Significant Accounting Policies: Concentrations (Policies)	3 Months Ended
	Mar. 31, 2014
Policies	'
Concentrations	'
	Concentrations
	The Company has one significant customer who represents more than 10% of the Company’s Net Sales for the first three months of 2014 and 2013, and more than 10% of the Company’s Accounts Receivable balance at March 31, 2014 and December 31, 2013.  Geographically, the Company has a significant amount of sales in the United States versus internationally. These concentrations are discussed in detail in the Company’s December 31, 2013 Form 10-K, and there has been little change as of this quarterly report.

3_Inventories_Schedule_of_Inve

3. Inventories: Schedule of Inventory, Current (Tables)	3 Months Ended
	Mar. 31, 2014
Tables/Schedules	'
Schedule of Inventory, Current	'
		March 31,	December 31,
		2014	2013
		(dollars in thousands)
	Finished Goods	$5,098	$4,839
	Raw Materials	1,921	1,889
	Inventories - Net	$7,019	$6,728

6_Stock_Based_Plans_Schedule_o

6. Stock Based Plans: Schedule of nonvested phantom stock units (Tables)	3 Months Ended
	Mar. 31, 2014
Tables/Schedules	'
Schedule of nonvested phantom stock units	'
		Units	Weighted Average Grant Date Fair Value
	Number of Phantom Stock Unit Awards:
	Nonvested at December 31, 2013	17,193	$12.89
	Granted	10,460	$17.72
	Vested	(5,597)	$12.56
	Forfeited	(---)	---
	Canceled	(---)	---
	Nonvested at March 31, 2014	22,056	$15.27
	Phantom Stock Unit Awards Expected to Vest	22,056	$15.27

Recovered_Sheet5

2. Significant Accounting Policies: Income Taxes (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Details	'	'
Liability for Uncertain Tax Positions, Current	$105	$100

3_Inventories_Schedule_of_Inve1

3. Inventories: Schedule of Inventory, Current (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Details	'	'
Inventory, Finished Goods, Gross	$5,098	$4,839
Inventory, Raw Materials, Gross	1,921	1,889
Inventories-Net	$7,019	$6,728

4_Line_of_Credit_Details

4. Line of Credit (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Line of Credit Facility, Description	'On December 30, 2010, the Company agreed to a new Revolving Line of Credit Note and Loan Agreement with Santander Bank, formerly Sovereign Bank, NA (“Sovereign”). The Company established a line of credit facility in the maximum amount of $10,000,000, maturing on December 31, 2014, with funds available for working capital purposes and other cash needs.	'
Sovereign Bank, NA	'	'
Line of Credit Facility, Maximum Borrowing Capacity	$10,000	'
Line of Credit Facility, Collateral	'The loan is collateralized by all of the Company’s tangible and intangible assets.	'
Line of Credit Facility, Interest Rate Description	'The loan agreement provides for the payment of any borrowings under the agreement at an interest rate range of either LIBOR plus 1.75% to plus 2.75% (for borrowings with a fixed term of 30, 60, or 90 days), or, Prime less 0.50% to plus 0.50% (for borrowings with no fixed term other than the December 31, 2014 maturity date), depending upon the Company’s then existing financial ratios. At March 31, 2014, the Company’s ratio would allow for the most favorable rate under the agreement’s range, which would be a rate of 1.98% (LIBOR plus 1.75%).	'
Line of Credit Facility, Commitment Fee Description	'The Company is required to pay an annual commitment fee for the access to the funds, and is also obligated to pay a “Line Fee” ranging from 17.5 to 35.0 basis points of the average unused balance on a quarterly basis, depending again upon the Company’s then existing financial ratios.	'
Line of Credit Facility, Amount Outstanding	$0	$0

5_Commitments_and_Contingencie1

5. Commitments and Contingencies (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Details	'	'
Loss Contingency, Management's Assessment and Process	'Under a number of indemnity agreements between the Company and each of its officers and directors, the Company has agreed to indemnify each of its officers and directors against any liability asserted against them in their capacity as an officer or director, or both. The Company’s indemnity obligations under the indemnity agreements are subject to certain conditions and limitations set forth in each of the agreements. Under the terms of the Agreement, the Company is contingently liable for costs which may be incurred by the officers and directors in connection with claims arising by reason of these individuals’ roles as officers and directors. The Company has obtained directors’ and officers’ insurance policies to fund certain obligations under the indemnity agreements.	'
Deferred Compensation Arrangements, Overall, Description	'The Company has salary continuation agreements with one current employee, and one former employee who retired at the end of 2010. These agreements provide for monthly payments to each of the employees or their designated beneficiary upon the employee’s retirement or death. The payment benefits range from $1,000 per month to $3,000 per month with the term of such payments limited to 15 years after the employee’s retirement at age 65. The agreements also provide for survivorship benefits if the employee dies before attaining age 65, and severance payments if the employee is terminated without cause; the amount of which is dependent on the length of company service at the date of termination.	'
Other Deferred Compensation Arrangements, Liability, Current and Noncurrent	$453	$451
Other Deferred Compensation Arrangements, Liability, Classified, Noncurrent	441	439
Other Deferred Compensation Arrangements, Liability, Current	12	12
Cash Surrender Value of Life Insurance	$987	$962

5_Commitments_and_Contingencie2

5. Commitments and Contingencies: Contingencies (Details) (USD $)	3 Months Ended
	Mar. 31, 2014	Dec. 31, 2013
Positive Outcome of Litigation	'	'
Loss Contingency, Range of Possible Loss, Maximum	$213,000	$227,000
Loss Contingency, Balance Sheet Caption	'Other Long Term Assets	'
Insurance Claims	'	'
Product Liability Inurance Deductible - Range, minimum	25,000	'
Product Liability Inurance Deductible - Range, maximum	250,000	'
Pending or Threatened Litigation	'	'
Product Liability Contingency, Loss Exposure Not Accrued, High Estimate	4,000,000	'
Loss Contingency Accrual	$488,000	$686,000

6_Stock_Based_Plans_Details

6. Stock Based Plans (Details) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Employee Service Share-based Compensation, Unrecognized Compensation Costs on Nonvested Awards, Weighted Average Period of Recognition	1.98	'	'
Phantom Stock Plan	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award, Description	'Plan Description. On April 1, 2006, the Company adopted the Omega Flex, Inc. 2006 Phantom Stock Plan (the “Plan”). The Plan authorizes the grant of up to one million units of phantom stock to employees, officers or directors of the Company and of any of its subsidiaries. The phantom stock units ('Units') each represent a contractual right to payment of compensation in the future based on the market value of the Company’s common stock. The Units are not shares of the Company’s common stock,	'	'
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	1,000,000	'	'
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award	'The phantom stock units ('Units') each represent a contractual right to payment of compensation in the future based on the market value of the Company's common stock. The Units are not shares of the Company's common stock, and a recipient of the Units does not receive any of the following: (a) ownership interest in the Company, (b) shareholder voting rights, and (c) other incidents of ownership to the Company's common stock. The Units are granted to participants upon the recommendation of the Company's CEO, and the approval of the Compensation Committee. Each of the Units that are granted to a participant will be initially valued by the Compensation Committee, and at a minimum, the Unit's value will be equal to the closing price of the Company's common stock on the grant date. The Units follow a vesting schedule, with a maximum vesting of 3 years after the grant date. Upon vesting, the Units represent a contractual right of payment for the value of the Unit. The Units will be paid on their maturity date, one year after all of the Units granted in a particular award have fully vested, unless an acceptable event occurs under the terms of the Plan prior to one year, which would allow for earlier payment. The amount to be paid to the participant on the maturity date is dependent on the type of Unit granted to the participant.	'	'
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights	'The Units follow a vesting schedule, with a maximum vesting of 3 years after the grant date. Upon vesting, the Units represent a contractual right of payment for the value of the Unit.	'	'
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period, Maximum	'3 years	'	'
Unvested units outstanding	22,056	'	17,193
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures	10,460	'	'
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value	$17.72	'	'
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Share-based Liabilities Paid	$199,000	'	'
Employee Service, Share-based Compensation, Paid Shares	8,100	'	'
Fair Value, Option, Methodology and Assumptions	'The Company uses the Black-Scholes option pricing model as its method for determining fair value of the Units. The Company uses the straight-line method of attributing the value of the stock-based compensation expense relating to the Units. The compensation expense (including adjustment of the liability to its fair value) from the Units is recognized over the vesting period of each grant or award.	'	'
Deferred Compensation Share-based Arrangements, Liability, Current and Noncurrent	385,000	'	'
Deferred Compensation Share-based Arrangements, Liability, Current	181,000	'	'
Deferred Compensation Share-based Arrangements, Liability, Classified, Noncurrent	204,000	'	'
Allocated Share-based Compensation Expense	85,000	126,000	'
Employee Service Share-based Compensation, Unrecognized Compensation Costs on Nonvested Awards	$359,000	'	'

6_Stock_Based_Plans_Schedule_o1

6. Stock Based Plans: Schedule of nonvested phantom stock units (Details) (Phantom Stock Plan, USD $)	3 Months Ended
	Mar. 31, 2014
Phantom Stock Plan	'
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Beginning Balance	17,193
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value, Beginning Balance	$12.89
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	10,460
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value	$17.72
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period	-5,597
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value	$12.56
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period	0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period, Weighted Average Grant Date Fair Value	$0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance	0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value, Ending Balance	$15.27
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expected to Vest, Outstanding, Number	22,056

7_Noncontrolling_Interests_Det

7. Noncontrolling Interests (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Total Shareholders' Equity	$27,869	'	$25,631
Income (Loss) Attributable to Parent	550	'	'
Net (Income) Loss attributable to the Noncontrolling Interest, net of tax	-27	-2	'
A non-controlling interest	'	'	'
Shareholders' Equity attributable to non-controlling interest	151	'	122
Net (Income) Loss attributable to the Noncontrolling Interest, net of tax	27	'	'
Other Comprehensive (Income) Loss, Foreign Currency Transaction and Translation Adjustment, before Tax, Portion Attributable to Noncontrolling Interest	$1	'	'

8_Shareholders_Equity_Details

8. Shareholders' Equity (Details) (USD $)	3 Months Ended	12 Months Ended
	Mar. 31, 2014	Dec. 31, 2013
Common Stock, Shares Authorized	20,000,000	20,000,000
Common Stock, Par Value	$0.01	$0.01
Common Stock, Shares Issued	10,153,633	10,153,633
Common Stock, Shares Outstanding	10,091,822	10,091,822
Treasury Stock, Number of Shares Held	61,811	61,811
Stock Repurchased During Period, Shares	0	0
4-Apr-12	'	'
Stock Repurchase Program, Authorized Amount	$1,000,000	'
Dec-07	'	'
Stock Repurchase Program, Authorized Amount	$5,000,000	'