Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 01, 2020 | Jun. 28, 2019 | |
Document And Entity Information | |||
Entity Registrant Name | Omega Flex, Inc. | ||
Entity Central Index Key | 0001317945 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2019 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business Flag | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 220,797,258 | ||
Entity Common Stock, Shares Outstanding | 10,094,322 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2019 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current Assets: | ||
Cash and Cash Equivalents | $ 16,098 | $ 32,392 |
Accounts Receivable - less allowances of $1,433 and $985, respectively | 17,047 | 16,451 |
Investments | 14,944 | |
Inventories - Net | 11,078 | 7,976 |
Other Current Assets | 2,097 | 1,859 |
Total Current Assets | 46,320 | 73,622 |
Right-Of-Use Assets - Operating | 771 | |
Property and Equipment - Net | 8,909 | 8,378 |
Goodwill - Net | 3,526 | 3,526 |
Deferred Taxes | 4 | 3 |
Other Long Term Assets | 1,454 | 1,307 |
Total Assets | 60,984 | 86,836 |
Current Liabilities: | ||
Accounts Payable | 2,383 | 2,775 |
Accrued Compensation | 4,618 | 5,295 |
Accrued Commissions and Sales Incentives | 4,461 | 4,264 |
Dividends Payable | 2,826 | 2,422 |
Taxes Payable | 423 | 58 |
Lease Liability - Operating | 369 | |
Other Liabilities | 5,404 | 3,591 |
Total Current Liabilities | 20,484 | 18,405 |
Lease Liability - Operating, net of current portion | 418 | |
Deferred Taxes | 331 | 566 |
Other Long Term Liabilities | 2,175 | 1,544 |
Total Liabilities | 23,408 | 20,515 |
Commitments and Contingencies (Note 10) | ||
Omega Flex, Inc. Shareholders' Equity: | ||
Common Stock - par value $0.01 share: authorized 20,000,000 shares: 10,153,633 shares issued at December 31, 2019 and 2018, respectively, and 10,094,322 and 10,091,822 outstanding at December 31, 2019 and 2018, respectively | 102 | 102 |
Treasury Stock | (1) | (1) |
Paid-in Capital | 11,025 | 10,808 |
Retained Earnings | 27,165 | 56,110 |
Accumulated Other Comprehensive Loss | (909) | (950) |
Total Omega Flex, Inc. Shareholders' Equity | 37,382 | 66,069 |
Noncontrolling Interest | 194 | 252 |
Total Shareholders' Equity | 37,576 | 66,321 |
Total Liabilities and Shareholders' Equity | $ 60,984 | $ 86,836 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 1,433 | $ 985 |
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 | 10,094,322 | 10,091,822 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Net Sales | $ 111,360 | $ 108,313 | $ 101,799 |
Cost of Goods Sold | 40,873 | 42,217 | 40,033 |
Gross Profit | 70,487 | 66,096 | 61,766 |
Selling Expense | 19,032 | 17,117 | 16,359 |
General and Administrative Expense | 24,818 | 17,800 | 17,897 |
Engineering Expense | 4,715 | 4,813 | 3,293 |
Operating Profit | 21,922 | 26,366 | 24,217 |
Interest Income | 876 | 488 | 117 |
Other Income (Expense) | 56 | (126) | (38) |
Income Before Income Taxes | 22,854 | 26,728 | 24,296 |
Income Tax Expense | 5,429 | 6,451 | 8,450 |
Net Income | 17,425 | 20,277 | 15,846 |
Less: Net Income - Noncontrolling Interest | (139) | (138) | (184) |
Net Income attributable to Omega Flex, Inc. | $ 17,286 | $ 20,139 | $ 15,662 |
Basic and Diluted Earnings per Common Share | $ 1.71 | $ 2 | $ 1.55 |
Cash Dividends Declared per Common Share | $ 4.58 | $ 0.94 | $ 0.66 |
Basic and Diluted Weighted Average Shares Outstanding | 10,093 | 10,092 | 10,092 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |||
Net Income | $ 17,425 | $ 20,277 | $ 15,846 |
Other Comprehensive Income (Loss): | |||
Foreign Currency Translation Adjustment | 46 | (48) | 822 |
Other Comprehensive Income (Loss) | 46 | (48) | 822 |
Comprehensive Income | 17,471 | 20,229 | 16,668 |
Less: Comprehensive Income Attributable to the Noncontrolling Interest | (144) | (132) | (229) |
Total Other Comprehensive Income | $ 17,327 | $ 20,097 | $ 16,439 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Treasury Stock [Member] | Paid In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Noncontrolling Interest [Member] | Total |
Balance at Dec. 31, 2016 | $ 102 | $ (1) | $ 10,808 | $ 36,455 | $ (1,685) | $ 382 | $ 46,061 |
Balance, shares at Dec. 31, 2016 | 10,091,822 | ||||||
Net Income | 15,662 | 184 | 15,846 | ||||
Cumulative Translation Adjustment | 777 | 45 | 822 | ||||
Dividends Declared | (6,660) | (6,660) | |||||
Balance at Dec. 31, 2017 | $ 102 | (1) | 10,808 | 45,457 | (908) | 611 | 56,069 |
Balance, shares at Dec. 31, 2017 | 10,091,822 | ||||||
Net Income | 20,139 | 138 | 20,277 | ||||
Cumulative Translation Adjustment | (42) | (6) | (48) | ||||
Dividends Declared | (9,486) | (491) | (9,977) | ||||
Balance at Dec. 31, 2018 | $ 102 | (1) | 10,808 | 56,110 | (950) | 252 | 66,321 |
Balance, shares at Dec. 31, 2018 | 10,091,822 | ||||||
Net Income | 17,286 | 139 | 17,425 | ||||
Cumulative Translation Adjustment | 41 | 5 | 46 | ||||
Shares Reissued From Treasury Pursuant To Restricted Stock Unit Awards | 217 | 217 | |||||
Shares Reissued From Treasury Pursuant To Restricted Stock Unit Awards, shares | 2,500 | ||||||
Dividends Declared | (46,231) | (202) | (46,433) | ||||
Balance at Dec. 31, 2019 | $ 102 | $ (1) | $ 11,025 | $ 27,165 | $ (909) | $ 194 | $ 37,576 |
Balance, shares at Dec. 31, 2019 | 10,094,322 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flows from Operating Activities: | |||
Net Income | $ 17,425 | $ 20,277 | $ 15,846 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | |||
Non-Cash Compensation Expense | 2,472 | 118 | 1,042 |
Depreciation and Amortization | 719 | 543 | 502 |
Provision for Losses on Accounts Receivable, net of write-offs and recoveries | 748 | 57 | 6 |
Deferred Taxes | (236) | 366 | 72 |
Provision for Inventory Reserves | (15) | (105) | 171 |
Changes in Assets and Liabilities: | |||
Accounts Receivable | (1,282) | (979) | (463) |
Inventories | (3,025) | 61 | (699) |
Other Assets | (383) | 1,804 | (40) |
Accounts Payable | (401) | 205 | 251 |
Accrued Compensation | (693) | 468 | 490 |
Accrued Commissions and Sales Incentives | 190 | (11) | 574 |
Lease Liability, Net | 16 | ||
Other Liabilities | 506 | (1,746) | 296 |
Net Cash Provided by Operating Activities | 16,041 | 21,058 | 18,048 |
Cash Flows from Investing Activities: | |||
Purchase of Investments | (55,938) | (35,099) | |
Net Proceeds from Sale of Investments | 70,882 | 20,155 | |
Capital Expenditures | (1,225) | (1,924) | (3,093) |
Net Cash Provided by (Used In) Investing Activities | 13,719 | (16,868) | (3,093) |
Cash Flows from Financing Activities: | |||
Dividends Paid | (46,028) | (9,775) | (13,018) |
Net Cash Used In Financing Activities | (46,028) | (9,775) | (13,018) |
Net (Decrease) Increase in Cash and Cash Equivalents | (16,268) | (5,585) | 1,937 |
Translation effect on cash | (26) | 39 | 683 |
Cash and Cash Equivalents - Beginning of Year | 32,392 | 37,938 | 35,318 |
Cash and Cash Equivalents - End of Year | 16,098 | 32,392 | 37,938 |
Supplemental Disclosure of Cash Flow Information | |||
Cash paid for Income Taxes | 5,431 | 7,310 | 7,608 |
Declared Dividend | $ 2,826 | $ 2,422 | $ 2,220 |
Basis of Presentation and Conso
Basis of Presentation and Consolidation | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation | 1. BASIS OF PRESENTATION AND CONSOLIDATION Description of Business The accompanying consolidated financial statements include the accounts of Omega Flex, Inc. (Omega) and its subsidiaries (collectively the “Company”). The Company’s audited consolidated financial statements for the years ended December 31, 2019, 2018 and 2017 have been prepared in accordance with accounting standards set by the Financial Accounting Standards Board (FASB), and with the instructions of Form 10-K and Article 5 of Regulation S-X. All material inter-company accounts and transactions have been eliminated in consolidation. 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. The Company’s business is controlled as a single operating segment that consists of the manufacture and sale of flexible metal hose and accessories. These applications include carrying liquefied gases in certain processing applications, fuel gases within residential and commercial buildings, medical gases in health care facilities, and vibration absorbers in high vibration applications. The Company’s flexible metal piping is also used to carry other types of gases and fluids in a number of industrial applications where the customer requires the piping to have both a degree of flexibility and/or an ability to carry corrosive compounds or mixtures, or to carry at both very high and very low (cryogenic) temperatures. The Company manufactures flexible metal hose at its facilities in Exton, Pennsylvania and Houston, Texas, in the United States, and in Banbury, Oxfordshire in the UK, and sells its products through distributors, wholesalers and to original equipment manufacturers (“OEMs”) throughout North America, and in certain European markets. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. SIGNIFICANT ACCOUNTING POLICIES Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles (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 allowances, investment valuations, inventory valuations, goodwill valuation, product liability reserves, phantom stock and accounting for income taxes. Actual amounts could differ significantly from these estimates. Revenue Recognition Effective January 1, 2018, the Company adopted the requirements of Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606) The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the modified retrospective approach). The Company selected the modified retrospective approach however there was no material impact which required a cumulative effect adjustment. The principle of Topic 606 was achieved through applying the following five-step approach: ● Identification of the contract, or contracts, with a customer — ● Identification of the performance obligations in the contract — ● Determination of the transaction price ● Allocation of the transaction price to the performance obligations in the contract ● Recognition of revenue when, or as, the Company satisfies a performance obligation ● The Company has a present right to payment ● The customer has legal title to the goods ● The Company has transferred physical possession of the goods ● The customer has the significant risks and rewards of ownership of the goods ● The customer has accepted the goods It is important to note that the indicators are not a set of conditions that must be met before the Company can conclude that control of the goods has transferred to the customer. The indicators are a list of factors that are often present if a customer has control of the goods. The Company has typical, unmodified FOB shipping point terms. As the seller, the Company can determine that the shipped goods meet the agreed-upon specifications in the contract or customer purchase order (e.g. items, quantities, and prices) with the buyer, so customer acceptance would be deemed a formality, as noted in ASC 606-10-55-86. As a result, the Company has a legal right to payment upon shipment of the goods. Based upon the above, the Company has concluded that transfer of control substantively transfers to the customer upon shipment. Other considerations of Topic 606 include the following: ● Contract Costs - ● Warranties ● Returned Goods ● Volume Rebates (Promotional Incentives) ● The amount of consideration is highly susceptible to factors outside the Company’s influence. ● The uncertainty about the amount of consideration is not expected to be resolved for a long period of time. ● The Company’s experience with similar types of contracts is limited. ● The contract has a large number and broad range of possible consideration amounts. If it was concluded that the above factors were in place for the Company, it would support the probability of a significant reversal of revenue. However, as none of the four factors apply to the Company, promotional incentives are recorded as a reduction of revenue based upon estimates of the eligible products expected to be sold. Regarding disaggregated revenue disclosures, as previously noted, the Company’s business is controlled as a single operating segment that consists of the manufacture and sale of flexible metal hose. Most of the Company’s transactions are very similar in nature, contract, terms, timing, and transfer of control of goods. As indicated within Note 2, under the caption “Significant Concentration”, the majority of the Company’s sales were geographically contained within North America, with the remainder scattered internationally. All performance assessments and resource allocations are generally based upon the review of the results of the Company as a whole. Cash Equivalents The Company considers all highly liquid investments with an original maturity of 90 days or less at the time of purchase to be cash equivalents. Cash equivalents include investments in an institutional money market fund, which invests in U.S. Treasury bills, notes and bonds, and/or repurchase agreements, backed by such obligations. Carrying value approximates fair value. Cash and cash equivalents are deposited at various area banks, which at times may exceed federally insured limits. The Company monitors the viability of the banking institutions carrying its assets on a regular basis, and has the ability to transfer cash to various institutions during times of risk. The Company has not experienced any losses related to these cash balances, and believes its credit risk to be minimal. Accounts Receivable and Provision for Doubtful Accounts 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. The allowance for doubtful accounts reflects our best estimate of probable losses inherent in the accounts receivable balance. The Company determines the allowance based on any known collection issues, historical experience, and other currently available evidence. The reserve for future credits, discounts, and doubtful accounts was $1,433,000 and $985,000 as of December 31, 2019 and 2018, respectively. In regards to identifying uncollectible accounts, the Company reviews an aging report on a consistent basis to determine past due accounts, and utilizes a well-established credit rating agency. The Company charges off those accounts that are deemed uncollectible once all collection efforts have been exhausted. Investments The Company invests excess funds in liquid interest earning instruments including U.S. Treasury bills and bank time deposits. These investments are stated at fair value, which approximates amortized cost, and are classified as available-for-sale in accordance with Accounting Standards Codification 320, Investments – Debt and Equity Securities Inventories Inventories are valued at the lower of cost or net realizable value. The cost of inventories is determined by the first-in, first-out (FIFO) method. The Company generally considers inventory quantities beyond two years of non-usage, measured on a historical usage basis, to be excess inventory and reduces the carrying value of inventory accordingly. Property and Equipment Property and equipment are carried at cost. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets or, for leasehold improvements, the life of the lease, if shorter. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in other income or expense for the period. The cost of maintenance and repairs is expensed as incurred; significant improvements are capitalized. 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, 2019 and also at December 31, 2018. These analyses did not indicate any impairment of goodwill at the end of either period. Stock-Based Compensation Plans In 2006, the Company adopted a Phantom Stock Plan (the “Plan”), which allows the Company to grant phantom stock units (Units) to certain key employees, officers or directors. The Units each represent a contractual right to payment of compensation in the future based upon the market value of the Company’s common stock. The Units follow a vesting schedule of three years from the grant date, and are then paid upon maturity. In accordance with FASB ASC Topic 718, Stock Compensation, the Company uses the Black-Scholes option pricing model as its method for determining the fair value of the Units. Further details of the Plan are provided in Note 11. Product Liability Reserves Product liability reserves represent the estimated unpaid amounts under the Company’s insurance policies with respect to existing claims. The Company uses the most current available data to estimate claims. As explained more fully under Note 10, for various product liability claims covered under the Company’s general liability insurance policies, the Company must pay certain defense and settlement costs within its deductible or self-insured retention limits, ranging primarily from $25,000 to $1,000,000 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. Leases Effective January 1, 2019, the Company adopted the requirements of FASB ASU 2016-02, Leases 1. The lease transfers ownership of the underlying asset to the lessee by the end of the lease term. 2. The lease grants the lessee an option to purchase the underlying asset that the lessee is reasonably certain to exercise. 3. The lease term is for the major part of the remaining economic life of the underlying asset. 4. The present value of the sum of lease payments and any residual value guaranteed by the lessee equals or exceeds substantially all of the fair value of the underlying asset. 5. The underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term. For any leases that do not meet the criteria identified above for finance leases, the Company treats such leases as operating leases. As of December 31, 2019, each of the Company’s leases are classified as operating leases. Under the new guidance, both finance and operating leases are reflected on the balance sheet as lease or “right-of-use” assets and lease liabilities. It should be noted that under previous guidance operating leases (non-capital leases) were not required to be recorded as an asset on the balance sheet. There are some exceptions, which the Company has elected in its accounting policies. For leases with terms of twelve months or less, or below the Company’s general capitalization policy threshold, the Company elects an accounting policy to not recognize lease assets and lease liabilities for all asset classes. The Company recognizes lease expense for such leases generally on a straight-line basis over the lease term. The Company determines if a contract is a lease at the inception of the arrangement. The Company reviews all options to extend, terminate, or purchase its right-of-use assets at the inception of the lease and accounts for these options when they are reasonably certain to be exercised. Certain leases contain non-lease components, such as common area maintenance, which are generally accounted for separately. In general, the Company will assess if non-lease components are fixed and determinable, or variable, when determining if the component should be included in the lease liability. For purposes of calculating the present value of the lease obligations, the Company utilizes the implicit interest rate within the lease agreement when known and/or determinable, and otherwise utilizes its incremental borrowing rate at the time of the lease agreement. As permitted under ASU 2018-11, the Company elected the optional transition method to adopt the new leases standard. Under this new transition method, the Company initially applied the new leases standard at the adoption date of January 1, 2019 and would have recognized a cumulative-effect adjustment, if appropriate, to the opening balance of retained earnings in the period of adoption. No cumulative-effect adjustment was recognized. The Company’s reporting for the comparative periods prior to 2019 in the financial statements are presented in accordance with existing GAAP in effect for 2018 and earlier (ASC Topic 840, Leases The impact of the adoption of this new standard resulted in an increase to the Company’s operating lease assets and liabilities on January 1, 2019 of approximately $800,000. The implementation did not have a material impact on the Company’s consolidated statements of income and statements of cash flows. 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 upon Level 1 inputs in determining the fair value of investments and the fair value of the Company’s reporting unit in its annual impairment test as described in the FASB ASC Topic 350, Intangibles - Goodwill and Other. Advertising Expense Advertising costs are charged to operations as incurred and are included in selling expenses in the accompanying consolidated Statement of Operations. Such charges aggregated $1,056,000, $1,037,000 and $1,075,000 for the years ended December 31, 2019, 2018, and 2017, respectively. Research and Development Expense Research and development expenses are charged to operations as incurred. Such charges totaled $1,191,000, $1,531,000 and $923,000 for the years ended December 31, 2019, 2018 and 2017, respectively and are included in engineering expense in the accompanying consolidated statements of operations. Shipping Costs Shipping costs are included in selling expense on the consolidated statements of operations. The expense relating to shipping was $2,862,000, $2,973,000 and $2,562,000 for the years ended December 31, 2019, 2018 and 2017, respectively. 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 Operations 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 the Statements of Operations (other income (expense)) in the period in which they occur. Income Taxes The Company accounts for tax liabilities in accordance with the FASB ASC Topic 740, Income Taxes. Under this method the Company recorded tax expense, related deferred taxes and tax benefits, and uncertainties in tax positions. 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 that includes the enactment date. 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. The FASB ASC Topic 740, Income Taxes, clarifies the criteria that an individual tax position must satisfy for some or all of the benefits of that position to be recognized in a company’s financial statements. This guidance prescribes a recognition threshold of more-likely than-not, and a measurement attribute for all tax positions taken or expected to be taken on a tax return, in order for those tax positions to be recognized in the financial statements. The Company follows the provisions of ASC 740-10 relative to accounting for uncertainties in tax positions. These provisions provide guidance on the recognition, de-recognition and measurement of potential tax benefits associated with tax positions. The Company reflected the effects of the Tax Cuts and Jobs Act (the “Act”), in its 2017 financial statements. This included the effects of the change in the US corporate tax rate from 35% to 21% on deferred tax assets and liabilities, and a provision related to previously deferred taxes on earnings of the Company’s foreign subsidiary. The Company’s tax expense for the periods ended December 31, 2018 and 2019 includes the effect of the reduction in the US corporate tax rate from 35% to 21%, effective for the Company’s 2018 and 2019 tax years. The Company’s tax provision also reflects other changes as a result of the Act, including the impact of the Global Intangible Low Taxed Income (“GILTI”) provisions, and changes affecting the deductibility of certain executive compensation. Other Comprehensive Income For the years ended December 31, 2019, 2018 and 2017, respectively, the components of other comprehensive income consisted solely of foreign currency translation adjustments. Significant Concentrations One customer represented 14% to 15% of sales during the period from 2017 to 2019, and that same customer accounted for approximately 22% to 24% of the Accounts Receivable balance over the last two years. No other customer represented more that 10% of Accounts Receivable or Sales. Geographically, North America accounted for approximately 90% of the Company’s sales during the last three years. The remaining portion of sales for each respective year was scattered among other countries, with the United Kingdom being the Company’s most dominant market outside North America. Subsequent Events The Company evaluates all events or transactions through the date of the related filing that may have a material impact on its consolidated financial statements. Refer to Note 13. Recent Accounting Pronouncements In January 2017, the FASB amended ASC Topic 350, Intangibles – Goodwill and Other In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | 3. INVENTORIES Inventories, net of reserves of $355,000 and $363,000, respectively, were as follows at December 31: 2019 2018 (in thousands) Finished Goods $ 5,409 $ 4,756 Raw Materials 5,669 3,220 Total Inventories - Net $ 11,078 $ 7,976 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | 4. PROPERTY AND EQUIPMENT Property and equipment consisted of the following at December 31: 2019 2018 Depreciation and Amortization Est. Useful Lives (in thousands) Land $ 1,205 $ 1,205 Buildings 6,630 6,452 39 Years Leasehold Improvements 409 403 3-10 Years (Lesser of Life or Lease) Equipment 13,064 11,960 3-10 Years 21,308 20,020 Accumulated Depreciation (12,399 ) (11,642 ) Property and Equipment - Net $ 8,909 $ 8,378 The above amounts include capital related items of $199,000 and $511,000 as of December 31, 2019 and 2018, respectively, which had not yet been placed in service by the Company, and therefore no depreciation was recorded in the related periods for those assets. Depreciation and amortization expense was approximately $719,000, $543,000 and $502,000 for the years ended December 31, 2019, 2018 and 2017, respectively. |
Line of Credit
Line of Credit | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Line of Credit | 5. LINE OF CREDIT The Company has a line of credit with Santander Bank, N.A. (the “Bank”). The Amended and Restated Revolving Line of Credit Note and Third Amendment to the Loan Agreement with the Bank has been in place since December 1, 2017. The line of credit facility allows for borrowing up to the maximum amount of $15,000,000, and matures on December 1, 2022, with funds available for working capital purposes and other cash needs. The loan is unsecured. The loan agreement provides for the payment of any borrowings under the agreement at an interest rate range of either LIBOR plus 0.75% to plus 1.75% (for borrowings with a fixed term of 30, 60, or 90 days), or, Prime Rate up to Prime Rate plus 0.50% (for borrowings with no fixed term other than the December 1, 2022 maturity date), depending upon the Company’s then existing financial ratios. Currently, the Company’s ratio would allow for the most favorable rate under the agreement’s range, which would be a rate of 2.51%. The Company is also required to pay on a quarterly basis an unused facility fee of 10 basis points of the average unused balance of the note. The Company may terminate the line at any time during the five year term, as long as there are no amounts outstanding. As of December 31, 2019 and 2018, the Company had no outstanding borrowings on its line of credit, and was in compliance with all debt covenants. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Shareholders' Equity | 6. SHAREHOLDERS’ EQUITY As of December 31, 2019 and December 31, 2018, the Company had authorized 20,000,000 common stock shares with par value of $0.01 per share. At these same dates, the total number of outstanding shares was 10,094,322 and 10,091,822, shares held in Treasury was 59,311 and 61,811, and total shares issued was 10,153,633 for both periods. During 2019 and 2018, upon approval of the Board of Directors (the “Board”) the Company has made regular quarterly dividend payments, as set forth in the following table: Dividend Declared Dividend Paid Date Price Per Share Date Amount December 16, 2019 $ 3.50 December 30, 2019* $ 35,330,000 December 14, 2019 $ 0.28 January 3, 2020* $ 2,826,000 September 6, 2019 $ 0.28 October 2, 2019* $ 2,826,000 June 13, 2019 $ 0.28 July 2, 2019* $ 2,826,000 April 9, 2019 $ 0.24 April 29, 2019** $ 2,422,000 December 13, 2018 $ 0.24 January 3, 2019** $ 2,422,000 September 11, 2018 $ 0.24 October 2, 2018** $ 2,422,000 June 18, 2018 $ 0.24 July 3, 2018** $ 2,422,000 April 10, 2018 $ 0.22 April 30, 2018** $ 2,220,000 December 13, 2017 $ 0.22 January 3, 2018** $ 2,220,000 The number of shares outstanding on the dividend payment date was *10,094,322 and **10,091,822. In addition to the above dividend amounts, there were dividends approved by the Company’s foreign subsidiary during April 2018, which amounted to an outlay of cash of $491,000 to the foreign subsidiary’s noncontrolling interest, and in 2019 during July and December, with the cash distribution to the noncontrolling interest of $137,000 and $65,000, respectively, also paid during those respective months. It should be noted that from time to time, the Board may elect to pay special dividends, in addition to or in lieu of the regular quarterly dividends, depending upon the financial condition of the Company. The Board approved and granted a total of 2,500 restricted stock unit awards (the “Awards”) to be allocated to the existing non-employee directors of the Company. The Awards were approved by the shareholders’ of the Company at the annual meeting on June 11, 2019, and distributed on June 20, 2019. A Form S-8 registration statement, and the restricted stock unit award agreements, were filed with the SEC on December 13, 2018 (2,000 units) and May 24, 2019 (500 units). The related director compensation cost of approximately $217,000 was recognized during June 2019. On April 4, 2014, the Board 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, which were held as treasury shares. The Company has not made any stock repurchases since 2014; however, as stated above, there were 2,500 shares distributed from treasury to non-employee directors during June 2019. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7. INCOME TAXES Income tax expense consisted of the following: December 31, 2019 2018 2017 (in thousands) Federal Income Tax: Current $ 4,310 $ 4,618 $ 6,848 Deferred (216 ) 306 48 State Income Tax: Current 748 885 667 Deferred (36 ) 50 16 Foreign Income Tax: Current 607 575 863 Deferred 16 17 8 Income Tax Expense $ 5,429 $ 6,451 $ 8,450 Pre-tax income included foreign income of $3,330,000, $3,123,000 and $4,528,000 in 2019, 2018 and 2017, respectively. Total income tax expense differed from statutory income tax expense, computed by applying the U.S. federal income tax rate of 21% (2019 and 2018) and 35% (2017) to earnings before income tax, as follows: December 31, 2019 2018 2017 (in thousands) Computed Statutory Income Tax Expense $ 4,770 $ 5,584 $ 8,440 State Income Tax, Net of Federal Tax Benefit 598 760 447 Foreign Tax Rate Differential (67 ) (63 ) (713 ) Impact of Deemed Repatriation Related to the 2017 U.S. Tax Law Changes — — 827 Manufacturing Deduction — — (401 ) Impact of Federal Tax Rate Reduction on Deferred Taxes — — (118 ) Executive Compensation Limitation 340 440 — Foreign Derived Intangible Income Deduction (76 ) (100 ) — Research Credit (141 ) (143 ) (47 ) Increase/(Reduction) in Tax Uncertainties — — — Valuation Allowance for Foreign Loss Carryover — — — Other - Net 5 (27 ) 15 Income Tax Expense $ 5,429 $ 6,451 $ 8,450 The 2017 tax expense reflects changes made by the 2017 Tax Cuts and Jobs Act, which resulted in a reduction of the U.S. federal tax rate from 35% to 21%, and also included a one-time repatriation of accumulated earnings of foreign subsidiaries. During 2017, the Company was deemed to have paid a dividend out of its U.K. subsidiary of all its unremitted earnings, resulting in U.S. incremental taxes of $827,000. A deferred income tax (expense) benefit results from temporary timing differences in the recognition of income and expense for income tax and financial reporting purposes. The components of and changes in the net deferred tax assets (liabilities) which give rise to this deferred income tax (expense) benefit for the years ended December 31, 2019 and 2018 are as follows: December 31, 2019 2018 (in thousands) Deferred Tax Assets: Compensation Assets $ 118 $ 103 Inventory Valuation 238 164 Accounts Receivable Valuation 265 232 Deferred Litigation Costs 12 12 Foreign Net Operating Losses 70 70 Valuation Allowance for Loss Carryover (70 ) (70 ) Other 82 71 Compensation Liabilities 877 510 Total Deferred Assets $ 1,592 $ 1,092 Deferred Tax Liabilities: Prepaid Expenses (476 ) (409 ) Depreciation and Amortization (1,443 ) (1,246 ) Total Deferred Liabilities $ (1,919 ) $ (1,655 ) Total Deferred Tax Liability $ (327 ) $ (563 ) Management believes it is more likely than not that the Company will have sufficient taxable income when these timing differences reverse and that the deferred tax assets will be realized with the exception of a carryover of foreign operating losses. Due to the uncertainty of future income in the foreign subsidiary, the Company has recognized a valuation allowance related to the foreign operating losses carrying forward. The Company is currently subject to audit by the Internal Revenue Service for the calendar years ended 2016 through 2018. The Company and its Subsidiaries’ state income tax returns are subject to audit for the calendar years ended 2015 through 2018. As of December 31, 2019, the Company had no liability for unrecognized tax benefits related to various federal and state income tax matters. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | 8. LEASES In the United States, the Company owns its two main operating facilities located in Exton, PA. In addition to the owned facilities, the Company also has operations in other locations that are leased, as well as other leased assets. In conjunction with the new guidance for leases, as defined by the FASB with ASU 2016-02, Leases In the United States, the Company owns its main operating facility located at 451 Creamery Way in Exton, PA, and in early 2017 consummated an agreement to purchase another facility at 427 Creamery Way in Exton, which was previously under lease through January 2018. Both facilities provide manufacturing, warehousing and distribution space. The Company also leases a warehousing and distribution center in Houston, Texas, which currently provides manufacturing, stocking and sales operations, with the original lease term running through October 2019. In April 2019, the Company entered into a new operating lease agreement extending the lease term through October 2024. Additionally, the Company leases its corporate office space in Middletown, CT, with the lease term expiring in 2022. In the United Kingdom, the Company leases a facility in Banbury, England, which serves sales, warehousing and operational functions. The lease in Banbury was effective April 1, 2006 and has a 15-year term ending in March 2021. In addition to property rentals, the Company also has lease agreements in place for various fleet vehicles and equipment with various lease terms. In the December 31, 2019 consolidated balance sheet, the Company has recorded right-of-use assets of $771,000, and a lease liability of $787,000, of which $369,000 is reported as a current liability. The respective weighted average remaining lease term and discount rate are approximately 2.70 years and 3.50%. Rent expense for operating leases was approximately $298,000, $377,000 and $393,000 for the years ended December 31, 2019, 2018 and 2017, respectively. Future minimum lease payments under non-cancelable leases as of December 31, 2019 is as follows: Year Ending December 31, Operating Leases (in thousands) 2020 $ 369 2021 218 2022 119 2023 43 2024 38 Thereafter — Total Minimum Lease Payments $ 787 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | 9. EMPLOYEE BENEFIT PLANS Defined Contribution and 401(K) Plans The Company maintains a qualified non-contributory profit-sharing plan (the “Plan”) covering all eligible employees. There were $380,000, $361,000 and $338,000 of contributions accrued for the Plan in 2019, 2018 and 2017 respectively, which were charged to expense in those respective years. Contributions to the Plan are defined as three percent (3%) of gross wages up to the current Old Age, Survivors, and Disability (OASDI) limit and six percent (6%) of the excess over the OASDI limit, subject to the maximum allowed under the Employee Retirement Income Security Act (ERISA). Participants vest over six years. The Company also maintains a savings and retirement plan qualified under Internal Revenue Code Section 401(k) for all employees. Employees are eligible to participate in the Plan the first day of the month following date of hire. Participants may elect to have up to fifty percent (50%) of their compensation withheld, up to the maximum allowed by the Internal Revenue Code. After completing one year of service, the Company contributed an additional amount equal to 50% of all employee contributions, up to a maximum of 6% of an employee’s gross wages. Contributions are funded on a current basis. Contributions to the Plan charged to expense for the years ended December 31, 2019, 2018 and 2017 were $276,000, $256,000 and $227,000, respectively. The participant’s Company contribution vests ratably over six year |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 10. 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. 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 $492,000 at December 31, 2019, of which $480,000 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, 2018 liability of $462,000 had $450,000 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 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 $1,417,000 at December 31, 2019 and $1,296,000 at December 31, 2018. In addition to the above, the Company has other contractual employment and or change of control agreements in place with key employees, as previously disclosed and noted in the Exhibit Index to this Form 10-K. Obligations related to these arrangements are currently indeterminable due to the variable nature and timing of possible events required to incur such obligations. As disclosed in detail in Note 8, under the caption “Leases”, the Company has several lease obligations in place that will be paid out over time. Most notably, the Company leases a facility in Banbury, England that serves the manufacturing, warehousing and distribution functions. Additionally, the Company purchased the operating facility at 427 Creamery Way in Exton, PA in February 2017, which was previously under lease through January 2018. Lastly, as provided earlier in Item 7 under the “Tabular Disclosure of Contractual Obligations and Off-Balance Sheet Arrangements”, the Company has numerous purchase obligations in place for the forthcoming year, largely related to the Company’s core material inventory components, totaling $27,595,000. Contingencies: In the ordinary and normal conduct of the Company’s business, it is subject to periodic lawsuits, investigations and claims (collectively, the “Claims”). Most of the Claims, including a putative class-action claim, relate to potential lightning damage to our flexible gas piping products, which impact legal and product liability related expenses. The Company does not believe the Claims have legal merit, and therefore has commenced a vigorous defense in response to the Claims. It is possible that the Company may incur increased litigation costs in the future due to a variety of factors, including a higher numbers of Claims, higher legal costs, and higher insurance deductibles or retentions. 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 ® In March 2017, a putative class action case was re-filed against the Company and other parties in Missouri state court after the predecessor case was dismissed without prejudice by the federal court. The Company successfully removed the case to federal court and is currently vigorously defending the case. The Company has in place commercial general liability insurance policies that cover most Claims, which are subject to deductibles or retentions, ranging primarily from $25,000 to $1,000,000 per claim (depending on the terms of the policy and the applicable policy year), up to an aggregate amount. 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 $1,000,000, depending upon the circumstances, and insurance deductible or retention in place for the respective claim year. The aggregate maximum exposure for all current open Claims, excluding the Missouri class action case, as of December 31, 2019 is estimated to not exceed approximately $3,300,000, which represents the potential costs that may be incurred over time for the Claims within the applicable insurance policy deductibles or retentions. From time to time, depending upon the nature of a particular case, the Company may decide to spend in excess of a deductible or retention to enable more discretion regarding the defense, although this is not common. 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 or anticipated settlements for Claims. The liabilities recorded on the Company’s books at December 31, 2019 and 2018 were $215,000 and $150,000, respectively, and are included in Other Liabilities. |
Stock - Based Compensation Plan
Stock - Based Compensation Plans | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock - Based Compensation Plans | 11. STOCK – BASED COMPENSATION PLANS Phantom Stock Plan Plan Description. ● 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, at an amount equal to the closing price of the Company’s common stock on the grant date, but are recorded at fair value using the Black-Scholes method as described below. The Units follow a vesting schedule, with a maximum vesting of three 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, Appreciation Only minus 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. Full Value Full Value Full Value 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 December 31, 2019. The total Phantom Stock related liability as of December 31, 2019 was $3,201,000 of which $1,508,000 is included in Other Liabilities, as it is expected to be paid in February and August 2020, and the balance of $1,693,000 is included in Other Long Term Liabilities. The total Phantom Stock related liability as of December 31, 2018 was $1,692,000 of which $599,000 is included in Other Liabilities, and the balance of $1,093,000 is included in Other Long Term Liabilities. In accordance with FASB ASC Topic 718, Stock Compensation, the Company recorded compensation expense of approximately $2,255,000, $118,000 and $1,042,000 related to the Phantom Stock Plan for the years ended December 31, 2019, 2018 and 2017, respectively. The following table summarizes information about the Company’s nonvested phantom stock Units at December 31, 2019: Units Weighted Average Grant Date Fair Value Number of Phantom Stock Unit Awards: Nonvested at December 31, 2018 17,805 $ 46.08 Granted 7,558 $ 67.67 Vested (9,870 ) $ 41.31 Forfeited — — Canceled — — Nonvested at December 31, 2019 15,493 $ 59.65 Phantom Stock Unit Awards Expected to Vest 15,493 $ 59.65 The total unrecognized compensation costs calculated at December 31, 2019 are $957,000 which will be recognized through August of 2022. The Company will recognize the related expense over the weighted average period of 1.1 years. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 12. RELATED PARTY TRANSACTIONS From time to time the Company may have related party transactions (“RPTs”). In short, RPTs represent any transaction between the Company and any Company employee, director or officer, or any related entity, or relative, etc. The Company performs a review of transactions each year to determine if any RPTs exist, and if so, determines if the related parties act independently of each other in a fair transaction. Through this investigation the Company noted a handful of RPTs which are disclosed hereto. Legal services were performed by a firm which formerly employed one member of the board. On occasion the Company shares a small amount of services with its former parent Mestek, Inc., mostly related to board meeting expenses. The Company is aware of transactions between a few service providers which employ individuals indirectly associated to Omega Flex employees. In all cases, these transactions have been determined to be independent transactions with no indication that they are influenced by the related relationships. The Company had note agreement assets with related parties amounting to approximately $5,000 at December 31, 2018, which were contractually secured by the Company. In February 2019, the amounts due from related parties were collected. Other than as disclosed above, the Company is currently not aware of any RPTs between the Company and any of its current directors or officers outside the scope of their normal business functions or expected contractual duties. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 13. SUBSEQUENT EVENTS The Company evaluated all events or transactions that occurred through the date of this filing. During this period, no events came to the Company’s attention that would impact the consolidated financial statements for 2019. During February 2020, the Company was made aware of the incurrence of a potential legal liability. After reviewing currently available information and a range of possible scenarios, the loss is estimated to be between $200,000 and $500,000. |
Quarterly Consolidated Financia
Quarterly Consolidated Financial Statements (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Consolidated Financial Statements (Unaudited) | 14. QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) The table below sets forth selected quarterly information for each quarter of 2019 and 2018. For the Year-Ended December 31, 2019 First Second Third Fourth Year (dollars in thousands except per share data) Net Sales $ 26,788 $ 26,809 $ 28,030 $ 29,733 $ 111,360 Gross Profit $ 16,946 $ 16,736 $ 17,704 $ 19,101 $ 70,487 Net Income attributable to Omega Flex, Inc. $ 4,382 $ 3,983 $ 3,368 $ 5,553 $ 17,286 Basic and Diluted Earnings per common share $ 0.43 $ 0.39 $ 0.33 $ 0.55 $ 1.71 For the Year-Ended December 31, 2018 First Second Third Fourth Year (dollars in thousands except per share data) Net Sales $ 25,397 $ 26,847 $ 27,199 $ 28,870 $ 108,313 Gross Profit $ 15,033 $ 16,214 $ 16,547 $ 18,302 $ 66,096 Net Income attributable to Omega Flex, Inc. $ 4,163 $ 4,776 $ 5,176 $ 6,024 $ 20,139 Basic and Diluted Earnings per common share $ 0.41 $ 0.47 $ 0.51 $ 0.60 $ 2.00 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles (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 allowances, investment valuations, inventory valuations, goodwill valuation, product liability reserves, phantom stock and accounting for income taxes. Actual amounts could differ significantly from these estimates. |
Revenue Recognition | Revenue Recognition Effective January 1, 2018, the Company adopted the requirements of Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606) The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the modified retrospective approach). The Company selected the modified retrospective approach however there was no material impact which required a cumulative effect adjustment. The principle of Topic 606 was achieved through applying the following five-step approach: ● Identification of the contract, or contracts, with a customer — ● Identification of the performance obligations in the contract — ● Determination of the transaction price ● Allocation of the transaction price to the performance obligations in the contract ● Recognition of revenue when, or as, the Company satisfies a performance obligation ● The Company has a present right to payment ● The customer has legal title to the goods ● The Company has transferred physical possession of the goods ● The customer has the significant risks and rewards of ownership of the goods ● The customer has accepted the goods It is important to note that the indicators are not a set of conditions that must be met before the Company can conclude that control of the goods has transferred to the customer. The indicators are a list of factors that are often present if a customer has control of the goods. The Company has typical, unmodified FOB shipping point terms. As the seller, the Company can determine that the shipped goods meet the agreed-upon specifications in the contract or customer purchase order (e.g. items, quantities, and prices) with the buyer, so customer acceptance would be deemed a formality, as noted in ASC 606-10-55-86. As a result, the Company has a legal right to payment upon shipment of the goods. Based upon the above, the Company has concluded that transfer of control substantively transfers to the customer upon shipment. Other considerations of Topic 606 include the following: ● Contract Costs - ● Warranties ● Returned Goods ● Volume Rebates (Promotional Incentives) ● The amount of consideration is highly susceptible to factors outside the Company’s influence. ● The uncertainty about the amount of consideration is not expected to be resolved for a long period of time. ● The Company’s experience with similar types of contracts is limited. ● The contract has a large number and broad range of possible consideration amounts. If it was concluded that the above factors were in place for the Company, it would support the probability of a significant reversal of revenue. However, as none of the four factors apply to the Company, promotional incentives are recorded as a reduction of revenue based upon estimates of the eligible products expected to be sold. Regarding disaggregated revenue disclosures, as previously noted, the Company’s business is controlled as a single operating segment that consists of the manufacture and sale of flexible metal hose. Most of the Company’s transactions are very similar in nature, contract, terms, timing, and transfer of control of goods. As indicated within Note 2, under the caption “Significant Concentration”, the majority of the Company’s sales were geographically contained within North America, with the remainder scattered internationally. All performance assessments and resource allocations are generally based upon the review of the results of the Company as a whole. |
Cash Equivalents | Cash Equivalents The Company considers all highly liquid investments with an original maturity of 90 days or less at the time of purchase to be cash equivalents. Cash equivalents include investments in an institutional money market fund, which invests in U.S. Treasury bills, notes and bonds, and/or repurchase agreements, backed by such obligations. Carrying value approximates fair value. Cash and cash equivalents are deposited at various area banks, which at times may exceed federally insured limits. The Company monitors the viability of the banking institutions carrying its assets on a regular basis, and has the ability to transfer cash to various institutions during times of risk. The Company has not experienced any losses related to these cash balances, and believes its credit risk to be minimal. |
Accounts Receivable and Provision for Doubtful Accounts | Accounts Receivable and Provision for Doubtful Accounts 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. The allowance for doubtful accounts reflects our best estimate of probable losses inherent in the accounts receivable balance. The Company determines the allowance based on any known collection issues, historical experience, and other currently available evidence. The reserve for future credits, discounts, and doubtful accounts was $1,433,000 and $985,000 as of December 31, 2019 and 2018, respectively. In regards to identifying uncollectible accounts, the Company reviews an aging report on a consistent basis to determine past due accounts, and utilizes a well-established credit rating agency. The Company charges off those accounts that are deemed uncollectible once all collection efforts have been exhausted. |
Investments | Investments The Company invests excess funds in liquid interest earning instruments including U.S. Treasury bills and bank time deposits. These investments are stated at fair value, which approximates amortized cost, and are classified as available-for-sale in accordance with Accounting Standards Codification 320, Investments – Debt and Equity Securities |
Inventories | Inventories Inventories are valued at the lower of cost or net realizable value. The cost of inventories is determined by the first-in, first-out (FIFO) method. The Company generally considers inventory quantities beyond two years of non-usage, measured on a historical usage basis, to be excess inventory and reduces the carrying value of inventory accordingly. |
Property and Equipment | Property and Equipment Property and equipment are carried at cost. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets or, for leasehold improvements, the life of the lease, if shorter. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in other income or expense for the period. The cost of maintenance and repairs is expensed as incurred; significant improvements are capitalized. |
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, 2019 and also at December 31, 2018. These analyses did not indicate any impairment of goodwill at the end of either period. |
Stock-Based Compensation Plans | Stock-Based Compensation Plans In 2006, the Company adopted a Phantom Stock Plan (the “Plan”), which allows the Company to grant phantom stock units (Units) to certain key employees, officers or directors. The Units each represent a contractual right to payment of compensation in the future based upon the market value of the Company’s common stock. The Units follow a vesting schedule of three years from the grant date, and are then paid upon maturity. In accordance with FASB ASC Topic 718, Stock Compensation, the Company uses the Black-Scholes option pricing model as its method for determining the fair value of the Units. Further details of the Plan are provided in Note 11. |
Product Liability Reserves | Product Liability Reserves Product liability reserves represent the estimated unpaid amounts under the Company’s insurance policies with respect to existing claims. The Company uses the most current available data to estimate claims. As explained more fully under Note 10, for various product liability claims covered under the Company’s general liability insurance policies, the Company must pay certain defense and settlement costs within its deductible or self-insured retention limits, ranging primarily from $25,000 to $1,000,000 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. |
Leases | Leases Effective January 1, 2019, the Company adopted the requirements of FASB ASU 2016-02, Leases 1. The lease transfers ownership of the underlying asset to the lessee by the end of the lease term. 2. The lease grants the lessee an option to purchase the underlying asset that the lessee is reasonably certain to exercise. 3. The lease term is for the major part of the remaining economic life of the underlying asset. 4. The present value of the sum of lease payments and any residual value guaranteed by the lessee equals or exceeds substantially all of the fair value of the underlying asset. 5. The underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term. For any leases that do not meet the criteria identified above for finance leases, the Company treats such leases as operating leases. As of December 31, 2019, each of the Company’s leases are classified as operating leases. Under the new guidance, both finance and operating leases are reflected on the balance sheet as lease or “right-of-use” assets and lease liabilities. It should be noted that under previous guidance operating leases (non-capital leases) were not required to be recorded as an asset on the balance sheet. There are some exceptions, which the Company has elected in its accounting policies. For leases with terms of twelve months or less, or below the Company’s general capitalization policy threshold, the Company elects an accounting policy to not recognize lease assets and lease liabilities for all asset classes. The Company recognizes lease expense for such leases generally on a straight-line basis over the lease term. The Company determines if a contract is a lease at the inception of the arrangement. The Company reviews all options to extend, terminate, or purchase its right-of-use assets at the inception of the lease and accounts for these options when they are reasonably certain to be exercised. Certain leases contain non-lease components, such as common area maintenance, which are generally accounted for separately. In general, the Company will assess if non-lease components are fixed and determinable, or variable, when determining if the component should be included in the lease liability. For purposes of calculating the present value of the lease obligations, the Company utilizes the implicit interest rate within the lease agreement when known and/or determinable, and otherwise utilizes its incremental borrowing rate at the time of the lease agreement. As permitted under ASU 2018-11, the Company elected the optional transition method to adopt the new leases standard. Under this new transition method, the Company initially applied the new leases standard at the adoption date of January 1, 2019 and would have recognized a cumulative-effect adjustment, if appropriate, to the opening balance of retained earnings in the period of adoption. No cumulative-effect adjustment was recognized. The Company’s reporting for the comparative periods prior to 2019 in the financial statements are presented in accordance with existing GAAP in effect for 2018 and earlier (ASC Topic 840, Leases The impact of the adoption of this new standard resulted in an increase to the Company’s operating lease assets and liabilities on January 1, 2019 of approximately $800,000. The implementation did not have a material impact on the Company’s consolidated statements of income and statements of cash flows. |
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 upon Level 1 inputs in determining the fair value of investments and the fair value of the Company’s reporting unit in its annual impairment test as described in the FASB ASC Topic 350, Intangibles - Goodwill and Other. |
Advertising Expense | Advertising Expense Advertising costs are charged to operations as incurred and are included in selling expenses in the accompanying consolidated Statement of Operations. Such charges aggregated $1,056,000, $1,037,000 and $1,075,000 for the years ended December 31, 2019, 2018, and 2017, respectively. |
Research and Development Expense | Research and Development Expense Research and development expenses are charged to operations as incurred. Such charges totaled $1,191,000, $1,531,000 and $923,000 for the years ended December 31, 2019, 2018 and 2017, respectively and are included in engineering expense in the accompanying consolidated statements of operations. |
Shipping Costs | Shipping Costs Shipping costs are included in selling expense on the consolidated statements of operations. The expense relating to shipping was $2,862,000, $2,973,000 and $2,562,000 for the years ended December 31, 2019, 2018 and 2017, respectively. |
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. |
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 Operations 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 the Statements of Operations (other income (expense)) in the period in which they occur. |
Income Taxes | Income Taxes The Company accounts for tax liabilities in accordance with the FASB ASC Topic 740, Income Taxes. Under this method the Company recorded tax expense, related deferred taxes and tax benefits, and uncertainties in tax positions. 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 that includes the enactment date. 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. The FASB ASC Topic 740, Income Taxes, clarifies the criteria that an individual tax position must satisfy for some or all of the benefits of that position to be recognized in a company’s financial statements. This guidance prescribes a recognition threshold of more-likely than-not, and a measurement attribute for all tax positions taken or expected to be taken on a tax return, in order for those tax positions to be recognized in the financial statements. The Company follows the provisions of ASC 740-10 relative to accounting for uncertainties in tax positions. These provisions provide guidance on the recognition, de-recognition and measurement of potential tax benefits associated with tax positions. The Company reflected the effects of the Tax Cuts and Jobs Act (the “Act”), in its 2017 financial statements. This included the effects of the change in the US corporate tax rate from 35% to 21% on deferred tax assets and liabilities, and a provision related to previously deferred taxes on earnings of the Company’s foreign subsidiary. The Company’s tax expense for the periods ended December 31, 2018 and 2019 includes the effect of the reduction in the US corporate tax rate from 35% to 21%, effective for the Company’s 2018 and 2019 tax years. The Company’s tax provision also reflects other changes as a result of the Act, including the impact of the Global Intangible Low Taxed Income (“GILTI”) provisions, and changes affecting the deductibility of certain executive compensation. |
Other Comprehensive Income | Other Comprehensive Income For the years ended December 31, 2019, 2018 and 2017, respectively, the components of other comprehensive income consisted solely of foreign currency translation adjustments. |
Significant Concentrations | Significant Concentrations One customer represented 14% to 15% of sales during the period from 2017 to 2019, and that same customer accounted for approximately 22% to 24% of the Accounts Receivable balance over the last two years. No other customer represented more that 10% of Accounts Receivable or Sales. Geographically, North America accounted for approximately 90% of the Company’s sales during the last three years. The remaining portion of sales for each respective year was scattered among other countries, with the United Kingdom being the Company’s most dominant market outside North America. |
Subsequent Events | Subsequent Events The Company evaluates all events or transactions through the date of the related filing that may have a material impact on its consolidated financial statements. Refer to Note 13. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In January 2017, the FASB amended ASC Topic 350, Intangibles – Goodwill and Other In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories, Net of Reserves | Inventories, net of reserves of $355,000 and $363,000, respectively, were as follows at December 31: 2019 2018 (in thousands) Finished Goods $ 5,409 $ 4,756 Raw Materials 5,669 3,220 Total Inventories - Net $ 11,078 $ 7,976 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consisted of the following at December 31: 2019 2018 Depreciation and Amortization Est. Useful Lives (in thousands) Land $ 1,205 $ 1,205 Buildings 6,630 6,452 39 Years Leasehold Improvements 409 403 3-10 Years (Lesser of Life or Lease) Equipment 13,064 11,960 3-10 Years 21,308 20,020 Accumulated Depreciation (12,399 ) (11,642 ) Property and Equipment - Net $ 8,909 $ 8,378 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of Regular Quarter Dividend Payments | During 2019 and 2018, upon approval of the Board of Directors (the “Board”) the Company has made regular quarterly dividend payments, as set forth in the following table: Dividend Declared Dividend Paid Date Price Per Share Date Amount December 16, 2019 $ 3.50 December 30, 2019* $ 35,330,000 December 14, 2019 $ 0.28 January 3, 2020* $ 2,826,000 September 6, 2019 $ 0.28 October 2, 2019* $ 2,826,000 June 13, 2019 $ 0.28 July 2, 2019* $ 2,826,000 April 9, 2019 $ 0.24 April 29, 2019** $ 2,422,000 December 13, 2018 $ 0.24 January 3, 2019** $ 2,422,000 September 11, 2018 $ 0.24 October 2, 2018** $ 2,422,000 June 18, 2018 $ 0.24 July 3, 2018** $ 2,422,000 April 10, 2018 $ 0.22 April 30, 2018** $ 2,220,000 December 13, 2017 $ 0.22 January 3, 2018** $ 2,220,000 The number of shares outstanding on the dividend payment date was *10,094,322 and **10,091,822. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense consisted of the following: December 31, 2019 2018 2017 (in thousands) Federal Income Tax: Current $ 4,310 $ 4,618 $ 6,848 Deferred (216 ) 306 48 State Income Tax: Current 748 885 667 Deferred (36 ) 50 16 Foreign Income Tax: Current 607 575 863 Deferred 16 17 8 Income Tax Expense $ 5,429 $ 6,451 $ 8,450 |
Schedule of Effective Income Tax Rate Reconciliation | Total income tax expense differed from statutory income tax expense, computed by applying the U.S. federal income tax rate of 21% (2019 and 2018) and 35% (2017) to earnings before income tax, as follows: December 31, 2019 2018 2017 (in thousands) Computed Statutory Income Tax Expense $ 4,770 $ 5,584 $ 8,440 State Income Tax, Net of Federal Tax Benefit 598 760 447 Foreign Tax Rate Differential (67 ) (63 ) (713 ) Impact of Deemed Repatriation Related to the 2017 U.S. Tax Law Changes — — 827 Manufacturing Deduction — — (401 ) Impact of Federal Tax Rate Reduction on Deferred Taxes — — (118 ) Executive Compensation Limitation 340 440 — Foreign Derived Intangible Income Deduction (76 ) (100 ) — Research Credit (141 ) (143 ) (47 ) Increase/(Reduction) in Tax Uncertainties — — — Valuation Allowance for Foreign Loss Carryover — — — Other - Net 5 (27 ) 15 Income Tax Expense $ 5,429 $ 6,451 $ 8,450 |
Schedule of Deferred Tax Assets and Liabilities | The components of and changes in the net deferred tax assets (liabilities) which give rise to this deferred income tax (expense) benefit for the years ended December 31, 2019 and 2018 are as follows: December 31, 2019 2018 (in thousands) Deferred Tax Assets: Compensation Assets $ 118 $ 103 Inventory Valuation 238 164 Accounts Receivable Valuation 265 232 Deferred Litigation Costs 12 12 Foreign Net Operating Losses 70 70 Valuation Allowance for Loss Carryover (70 ) (70 ) Other 82 71 Compensation Liabilities 877 510 Total Deferred Assets $ 1,592 $ 1,092 Deferred Tax Liabilities: Prepaid Expenses (476 ) (409 ) Depreciation and Amortization (1,443 ) (1,246 ) Total Deferred Liabilities $ (1,919 ) $ (1,655 ) Total Deferred Tax Liability $ (327 ) $ (563 ) |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum lease payments under non-cancelable leases as of December 31, 2019 is as follows: Year Ending December 31, Operating Leases (in thousands) 2020 $ 369 2021 218 2022 119 2023 43 2024 38 Thereafter — Total Minimum Lease Payments $ 787 |
Stock - Based Compensation Pl_2
Stock - Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Nonvested Phantom Stock Units | The following table summarizes information about the Company’s nonvested phantom stock Units at December 31, 2019: Units Weighted Average Grant Date Fair Value Number of Phantom Stock Unit Awards: Nonvested at December 31, 2018 17,805 $ 46.08 Granted 7,558 $ 67.67 Vested (9,870 ) $ 41.31 Forfeited — — Canceled — — Nonvested at December 31, 2019 15,493 $ 59.65 Phantom Stock Unit Awards Expected to Vest 15,493 $ 59.65 |
Quarterly Consolidated Financ_2
Quarterly Consolidated Financial Statements (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | The table below sets forth selected quarterly information for each quarter of 2019 and 2018. For the Year-Ended December 31, 2019 First Second Third Fourth Year (dollars in thousands except per share data) Net Sales $ 26,788 $ 26,809 $ 28,030 $ 29,733 $ 111,360 Gross Profit $ 16,946 $ 16,736 $ 17,704 $ 19,101 $ 70,487 Net Income attributable to Omega Flex, Inc. $ 4,382 $ 3,983 $ 3,368 $ 5,553 $ 17,286 Basic and Diluted Earnings per common share $ 0.43 $ 0.39 $ 0.33 $ 0.55 $ 1.71 For the Year-Ended December 31, 2018 First Second Third Fourth Year (dollars in thousands except per share data) Net Sales $ 25,397 $ 26,847 $ 27,199 $ 28,870 $ 108,313 Gross Profit $ 15,033 $ 16,214 $ 16,547 $ 18,302 $ 66,096 Net Income attributable to Omega Flex, Inc. $ 4,163 $ 4,776 $ 5,176 $ 6,024 $ 20,139 Basic and Diluted Earnings per common share $ 0.41 $ 0.47 $ 0.51 $ 0.60 $ 2.00 |
Significant Accounting Polici_3
Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 02, 2019 | |
Allowance for doubtful accounts receivable | $ 1,433 | $ 985 | ||
Investments | 14,944 | |||
Operating lease assets | 771 | $ 800 | ||
Operating lease liabilities | 787 | $ 800 | ||
Advertising expense | 1,056 | 1,037 | $ 1,075 | |
Research and development expense | 1,191 | 1,531 | 923 | |
Shipping costs | $ 40,873 | $ 42,217 | $ 40,033 | |
Income tax rate examination description | This included the effects of the change in the US corporate tax rate from 35% to 21% on deferred tax assets and liabilities, and a provision related to previously deferred taxes on earnings of the Company's foreign subsidiary. The Company's tax expense for the periods ended December 31, 2018 and 2019 includes the effect of the reduction in the US corporate tax rate from 35% to 21%, effective for the Company's 2018 and 2019 tax years. | |||
Corporate tax rate percentage | 21.00% | 21.00% | 35.00% | |
Concentration risk percentage description | One customer represented 14% to 15% of sales during the period from 2017 to 2019, and that same customer accounted for approximately 22% to 24% of the Accounts Receivable balance over the last two years. No other customer represented more that 10% of Accounts Receivable or Sales. Geographically, North America accounted for approximately 90% of the Company's sales during the last three years. The remaining portion of sales for each respective year was scattered among other countries, with the United Kingdom being the Company's most dominant market outside North America. | |||
Geographic Concentration Risk [Member] | Sales Revenue Net [Member] | North America [Member] | ||||
Concentration risk percentage | 90.00% | 90.00% | 90.00% | |
Customer One [Member] | Customer Concentration Risk [Member] | Sales Revenue Net [Member] | ||||
Concentration risk percentage | 15.00% | 14.00% | ||
Customer One [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member] | ||||
Concentration risk percentage | 24.00% | 22.00% | ||
Shipping Costs [Member] | ||||
Shipping costs | $ 2,862 | $ 2,973 | $ 2,562 | |
Minimum [Member] | ||||
Defense costs per claim | 25 | |||
Maximum [Member] | ||||
Defense costs per claim | $ 1,000 |
Inventories (Details Narrative)
Inventories (Details Narrative) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Inventory valuation reserves | $ 355 | $ 363 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories, Net of Reserves (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Finished Goods | $ 5,409 | $ 4,756 |
Raw Materials | 5,669 | 3,220 |
Inventories - Net | $ 11,078 | $ 7,976 |
Property and Equipment (Details
Property and Equipment (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |||
Construction in progress, gross | $ 199 | $ 511 | |
Depreciation and amortization expense | $ 719 | $ 543 | $ 502 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property and Equipment - Gross | $ 21,038 | $ 20,020 |
Accumulated depreciation | (12,399) | (11,642) |
Property and Equipment - Net | 8,909 | 8,378 |
Land [Member] | ||
Property and Equipment - Gross | 1,205 | 1,205 |
Buildings [Member] | ||
Property and Equipment - Gross | $ 6,630 | 6,452 |
Property and Equipment, Useful Lives | 39 years | |
Leasehold Improvements [Member] | ||
Property and Equipment - Gross | $ 409 | 403 |
Leasehold Improvements [Member] | Minimum [Member] | ||
Property and Equipment, Useful Lives | 3 years | |
Leasehold Improvements [Member] | Maximum [Member] | ||
Property and Equipment, Useful Lives | 10 years | |
Equipment [Member] | ||
Property and Equipment - Gross | $ 13,064 | $ 11,960 |
Equipment [Member] | Minimum [Member] | ||
Property and Equipment, Useful Lives | 3 years | |
Equipment [Member] | Maximum [Member] | ||
Property and Equipment, Useful Lives | 10 years |
Line of Credit (Details Narrati
Line of Credit (Details Narrative) - USD ($) $ in Thousands | Dec. 01, 2017 | Dec. 31, 2019 | Dec. 31, 2018 |
Line of credit interest rate percentage | 2.51% | ||
Line of credit facility, outstanding | |||
Loan Agreement [Member] | |||
Line of credit facility, description | The Company has a line of credit with Santander Bank, N.A. (the "Bank"). The Amended and Restated Revolving Line of Credit Note and Third Amendment to the Loan Agreement with the Bank has been in place since December 1, 2017. | ||
Line of credit facility, maximum borrowing capacity | $ 15,000 | ||
Line of credit facility, expiration date | Dec. 1, 2022 | ||
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 0.75% to plus 1.75% (for borrowings with a fixed term of 30, 60, or 90 days), or, Prime Rate up to Prime Rate plus 0.50% (for borrowings with no fixed term other than the December 1, 2022 maturity date), depending upon the Company's then existing financial ratios. | ||
Line of credit facility, commitment fee description | The Company is also required to pay on a quarterly basis an unused facility fee of 10 basis points of the average unused balance of the note. The Company may terminate the line at any time during the five year term, as long as there are no amounts outstanding. | ||
Line of credit period | 5 years | ||
Loan Agreement [Member] | LIBOR plus [Member] | |||
Line of credit interest rate percentage | 0.75% | ||
Loan Agreement [Member] | LIBOR plus One [Member] | |||
Line of credit interest rate percentage | 1.75% | ||
Loan Agreement [Member] | Prime Rate Plus [Member] | |||
Line of credit interest rate percentage | 0.50% |
Shareholders' Equity (Details N
Shareholders' Equity (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | May 24, 2019 | Dec. 13, 2018 | Dec. 31, 2019 | Jul. 31, 2019 | Jun. 30, 2019 | Apr. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Apr. 04, 2014 | Dec. 31, 2007 |
Common stock, shares authorized | 20,000,000 | 20,000,000 | 20,000,000 | |||||||||
Common stock, par value | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||
Common stock, shares outstanding | 10,094,322 | 10,094,322 | 10,091,822 | |||||||||
Treasury stock, common, shares | 59,311 | 59,311 | 61,811 | |||||||||
Common stock, shares issued | 10,153,633 | 10,153,633 | 10,153,633 | |||||||||
Dividend paid | $ 46,028 | $ 9,775 | $ 13,018 | |||||||||
Stock repurchase program, authorized amount | $ 1,000 | $ 5,000 | ||||||||||
Non-Employee Directors [Member] | ||||||||||||
Share based payment award, granted | 2,500 | |||||||||||
Since Inception [Member] | ||||||||||||
Stock repurchased during period, shares | 61,811 | |||||||||||
Stock repurchased during period, value | $ 932 | |||||||||||
Stock repurchased during period, value per share | $ 15 | |||||||||||
Restricted Stock Unit Awards [Member] | ||||||||||||
Share based payment award, granted | 500 | 2,000 | 2,500 | |||||||||
Compensation cost | $ 217 | |||||||||||
Foreign Subsidiary's [Member] | ||||||||||||
Dividend paid | $ 491 | |||||||||||
Payments of noncontrolling interest | $ 65 | $ 137 |
Shareholders' Equity - Schedule
Shareholders' Equity - Schedule of Regular Quarter Dividend Payments (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 16, 2019 | Dec. 14, 2019 | Sep. 06, 2019 | Jun. 13, 2019 | Apr. 09, 2019 | Dec. 13, 2018 | Sep. 11, 2018 | Jun. 18, 2018 | Apr. 10, 2018 | Dec. 13, 2017 | ||||||||||
Equity [Abstract] | ||||||||||||||||||||
Dividend Declared, Date | Dec. 16, 2019 | Dec. 14, 2019 | Sep. 6, 2019 | Jun. 13, 2019 | Apr. 9, 2019 | Dec. 13, 2018 | Sep. 11, 2018 | Jun. 18, 2018 | Apr. 10, 2018 | Dec. 13, 2017 | ||||||||||
Dividend Declared, Price Per Share | $ 3.50 | $ 0.28 | $ 0.28 | $ 0.28 | $ 0.24 | $ 0.24 | $ 0.24 | $ 0.24 | $ 0.22 | $ 0.22 | ||||||||||
Dividend Paid on or Before Date | Dec. 30, 2019 | [1] | Jan. 3, 2020 | [1] | Oct. 2, 2019 | [1] | Jul. 2, 2019 | [1] | Apr. 29, 2019 | [2] | Jan. 3, 2019 | [2] | Oct. 2, 2018 | [2] | Jul. 3, 2018 | [2] | Apr. 30, 2018 | [2] | Jan. 3, 2018 | [2] |
Dividend Paid on or Before Date, Amount | $ 35,330 | $ 2,826 | $ 2,826 | $ 2,826 | $ 2,422 | $ 2,422 | $ 2,422 | $ 2,422 | $ 2,220 | $ 2,220 | ||||||||||
[1] | The number of shares outstanding on the dividend payment date was 10,094,322. | |||||||||||||||||||
[2] | The number of shares outstanding on the dividend payment date was 10,091,822. |
Shareholders' Equity - Schedu_2
Shareholders' Equity - Schedule of Regular Quarter Dividend Payments (Details) (Parenthetical) - shares | Dec. 31, 2019 | Dec. 31, 2018 |
Equity [Abstract] | ||
Common stock, shares outstanding | 10,094,322 | 10,091,822 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Foreign income included in pre-tax income | $ 3,330 | $ 3,123 | $ 4,528 |
Federal income tax percentage | 21.00% | 21.00% | 35.00% |
Income tax examination description | This included the effects of the change in the US corporate tax rate from 35% to 21% on deferred tax assets and liabilities, and a provision related to previously deferred taxes on earnings of the Company's foreign subsidiary. The Company's tax expense for the periods ended December 31, 2018 and 2019 includes the effect of the reduction in the US corporate tax rate from 35% to 21%, effective for the Company's 2018 and 2019 tax years. | ||
Taxes on unremitted foreign earnings | $ 827 | ||
Unrecognized tax benefits |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Federal Income Tax, Current | $ 4,310 | $ 4,618 | $ 6,848 |
Federal Income Tax, Deferred | (216) | 306 | 48 |
State Income Tax, Current | 748 | 885 | 667 |
State Income Tax, Deferred | (36) | 50 | 16 |
Foreign Income Tax, Current | 607 | 575 | 863 |
Foreign Income Tax, Deferred | 16 | 17 | 8 |
Income Tax Expense | $ 5,429 | $ 6,451 | $ 8,450 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Computed Statutory Income Tax Expense | $ 4,770 | $ 5,584 | $ 8,440 |
State Income Tax, Net of Federal Tax Benefit | 598 | 760 | 447 |
Foreign Tax Rate Differential | (67) | (63) | (713) |
Impact of Deemed Repatriation Related to the 2017 U.S. Tax Law Changes | 827 | ||
Manufacturing Deduction | (401) | ||
Impact of Federal Tax Rate Reduction on Deferred Taxes | (118) | ||
Executive Compensation Limitation | 340 | 440 | |
Foreign Derived Intangible Income Deduction | (76) | (100) | |
Research Credit | (141) | (143) | (47) |
Increase/(Reduction) in Tax Uncertainties | |||
Valuation Allowance for Foreign Loss Carryover | |||
Other - Net | 5 | (27) | 15 |
Income Tax Expense | $ 5,429 | $ 6,451 | $ 8,450 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Abstract] | ||
Compensation Assets | $ 118 | $ 103 |
Inventory Valuation | 238 | 164 |
Accounts Receivable Valuation | 265 | 232 |
Deferred Litigation Costs | 12 | 12 |
Foreign Net Operating Losses | 70 | 70 |
Valuation Allowance for Loss Carryover | (70) | (70) |
Other | 82 | 71 |
Compensation Liabilities | 877 | 510 |
Total Deferred Assets | 1,592 | 1,092 |
Prepaid Expenses | (476) | (409) |
Depreciation and Amortization | (1,443) | (1,246) |
Total Deferred Liabilities | (1,919) | (1,655) |
Total Deferred Tax Liability | $ (327) | $ (563) |
Leases (Details Narrative)
Leases (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 02, 2019 | |
Right-of-use assets | $ 771 | $ 800 | ||
Lease liability | 787 | $ 800 | ||
Lease liability, current | $ 369 | |||
Weighted average remaining lease term | 2 years 8 months 12 days | |||
Discount rate | 3.50% | |||
Operating lease expense | $ 298 | $ 377 | $ 393 | |
Houston [Member] | ||||
Operating leases term, description | The original lease term running through October 2019. In April 2019, the Company entered into a new operating lease agreement extending the lease term through October 2024. | |||
Middletown [Member] | ||||
Operating leases term, description | Additionally, the Company leases its corporate office space in Middletown, CT, with the lease term expiring in 2022. | |||
Banbury [Member] | ||||
Operating leases term, description | Leases a facility in Banbury, England, which serves sales, warehousing and operational functions. The lease in Banbury was effective April 1, 2006 and has a 15-year term ending in March 2021. |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Rental Payments for Operating Leases (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 369 |
2021 | 218 |
2022 | 119 |
2023 | 43 |
2024 | 38 |
Thereafter | |
Total Lease Payments | $ 787 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Qualified Savings and Retirement [Member] | |||
Contributions accrued for the plan | $ 276 | $ 256 | $ 227 |
Employee contribution percentage | 50.00% | ||
Employer contribution percentage | 50.00% | ||
Contribution percentage on gross wages | 6.00% | ||
Employee contributions, description | The Company also maintains a savings and retirement plan qualified under Internal Revenue Code Section 401(k) for alThe Company also maintains a savings and retirement plan qualified under Internal Revenue Code Section 401(k) for all employees. Employees are eligible to participate in the Plan the first day of the month following date of hire. Participants may elect to have up to fifty percent (50%) of their compensation withheld, up to the maximum allowed by the Internal Revenue Code. After completing one year of service, the Company contributed an additional amount equal to 50% of all employee contributions, up to a maximum of 6% of an employee's gross wages. | ||
Qualified Non-contributory Profit-sharing [Member] | |||
Contributions accrued for the plan | $ 380 | $ 361 | $ 338 |
Employee contributions, description | Contributions to the Plan are defined as three percent (3%) of gross wages up to the current Old Age, Survivors, and Disability (OASDI) limit and six percent (6%) of the excess over the OASDI limit, subject to the maximum allowed under the Employee Retirement Income Security Act (ERISA). Participants vest over six years. | ||
Qualified Non-contributory Profit-sharing [Member] | Minimum [Member] | |||
Contribution percentage on gross wages | 3.00% | ||
Qualified Non-contributory Profit-sharing [Member] | Maximum [Member] | |||
Contribution percentage on gross wages | 6.00% |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
May 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Employee benefit payment term description | 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. | ||
Other compensation liabilities | $ 492 | $ 462 | |
Other compensation liabilities, noncurrent | 480 | 450 | |
Other compensation liabilities, current | 12 | 12 | |
Cash surrender value of life insurance | 1,417 | 1,296 | |
Core material inventory components, value | 27,595 | ||
Amount of security to proceed current appeal | $ 1,600 | ||
Contingency, closed and settled date | This case was finally settled and closed on August 7, 2018. | ||
Maximum aggregate claim amount | 3,300 | ||
Liabilities recorded | 215 | $ 150 | |
Minimum [Member] | |||
Payment benefit to employee's | 1 | ||
Deductibles per claim | 25 | ||
Minimum [Member] | Insurance Claims [Member] | |||
Potential liability per claim | 0 | ||
Maximum [Member] | |||
Payment benefit to employee's | 3 | ||
Deductibles per claim | 1,000 | ||
Maximum [Member] | Insurance Claims [Member] | |||
Potential liability per claim | $ 1,000 |
Stock - Based Compensation Pl_3
Stock - Based Compensation Plans (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | Aug. 27, 2019 | Feb. 15, 2019 | Feb. 28, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Share based compensation, description | through August of 2022. | |||||
Unvested units outstanding | 15,493 | 17,805 | ||||
Share based compensation grants in period | 1,508 | 6,050 | ||||
Share based compensation weighted average grant date fair value | $ 76.79 | $ 65.40 | $ 67.67 | |||
Share based compensation paid in period | $ 746 | |||||
Share based compensation grants paid in period | 10,460 | |||||
Forfeiture rate of plan | 0.00% | |||||
Share based compensation liability | $ 3,201 | $ 1,692 | ||||
Share based compensation liability, current | 1,508 | 599 | ||||
Share based compensation liability, non-current | 1,693 | 1,093 | ||||
Compensation expense | 2,255 | $ 118 | $ 1,042 | |||
Unrecognized compensation costs | $ 957 | |||||
Compensation expense, weighted average recognize period | 1 year 1 month 6 days | |||||
Phantom Stock Plan [Member] | ||||||
Share based compensation, 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. | |||||
Share based compensation number of shares authorized | 1,000,000 | |||||
Share based compensation vesting rights | The Units follow a vesting schedule, with a maximum vesting of three years after the grant date. Upon vesting, the Units represent a contractual right of payment for the value of the Unit. |
Stock - Based Compensation Pl_4
Stock - Based Compensation Plans - Summary of Nonvested Phantom Stock Units (Details) - $ / shares | Aug. 27, 2019 | Feb. 15, 2019 | Dec. 31, 2019 |
Share-based Payment Arrangement [Abstract] | |||
Nonvested Units, Beginning balance | 17,805 | ||
Nonvested Units, Granted | 7,558 | ||
Nonvested Units, Vested | (9,870) | ||
Nonvested Units, Forfeited | |||
Nonvested Units, Canceled | |||
Nonvested Units, Ending Balance | 15,493 | ||
Phantom Stock Unit Awards Expected to Vest, Units | 15,493 | ||
Nonvested Weighted Average Grant Date Fair Value, Beginning balance | $ 46.08 | ||
Nonvested Weighted Average Grant Date Fair Value, Granted | $ 76.79 | $ 65.40 | 67.67 |
Nonvested Weighted Average Grant Date Fair Value, Vested | 41.31 | ||
Nonvested Weighted Average Grant Date Fair Value, Forfeited | |||
Nonvested Weighted Average Grant Date Fair Value, Canceled | |||
Nonvested Weighted Average Grant Date Fair Value, Ending Balance | 59.65 | ||
Phantom Stock Unit Awards Expected to Vest, Weighted Average Grant Date Fair Value | $ 59.65 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Related Party Transactions [Abstract] | |
Related parties amount secured by company | $ 5 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - Subsequent Event [Member] $ in Thousands | Feb. 29, 2020USD ($) |
Minimum [Member] | |
Loss contingencies, range of possible losses | $ 200 |
Maximum [Member] | |
Loss contingencies, range of possible losses | $ 500 |
Quarterly Consolidated Financ_3
Quarterly Consolidated Financial Statements (Unaudited) - Schedule of Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net Sales | $ 29,733 | $ 28,030 | $ 26,809 | $ 26,788 | $ 28,870 | $ 27,199 | $ 26,847 | $ 25,397 | $ 111,360 | $ 108,313 | $ 101,799 |
Gross Profit | 19,101 | 17,704 | 16,736 | 16,946 | 18,302 | 16,547 | 16,214 | 15,033 | 70,487 | 66,096 | 61,766 |
Net Income attributable to Omega Flex, Inc. | $ 5,553 | $ 3,368 | $ 3,983 | $ 4,382 | $ 6,024 | $ 5,176 | $ 4,776 | $ 4,163 | $ 17,286 | $ 20,139 | $ 15,662 |
Basic and Diluted Earnings per common share | $ 0.55 | $ 0.33 | $ 0.39 | $ 0.43 | $ 0.60 | $ 0.51 | $ 0.47 | $ 0.41 | $ 1.71 | $ 2 | $ 1.55 |