Omega Flex Inc. (OFLX, Financial) filed Quarterly Report for the period ended 2009-06-30.
Omega Flex is engaged in the manufacture and sale of flexible metal hose for applications in conveying various liquids and gases within a number of industries. Co.\'s product lines include corrugated metal hoses in a range of sizes and alloys including three grades of stainless steel bronze Inconel and Hastelloy. Co. also manufactures a range of pressure reinforcing braids for its hoses in both metallic and synthetic constructions. These products are used primarily for the processing industries transportation industry medical and semiconductor markets and for instrumentation as well as the construction industry. Omega Flex Inc. has a market cap of $168.9 million; its shares were traded at around $16.75 with a P/E ratio of 38.1 and P/S ratio of 2.7.
During 2009, the Companys inventory balance has decreased $2,852 from $10,242 at December 31, 2008 to $7,390 at June 30, 2009. The decrease is largely due to a focus on inventory management and reductions, along with an inventory write-down resulting from the implementation of updated material standards.
General and Administrative Expenses. General and administrative expenses consist primarily of employee salaries, benefits for administrative, executive and finance personnel, legal and accounting, and corporate general and administrative services. General and administrative expenses were $3,792 and $2,719 for the six months ended June, 2008 and 2009, respectively. General and administrative expense, as a percentage of sales, increased from 11.6% for the six months ended June 30, 2008 to 13.4% for the six months ended June 30, 2009. The $1,073 decrease is largely attributable to a decrease in legal which was partially related to the cash settlement of the Parker Hannifin case, as outlined in the Companys December 31, 2008 Form 10-K, as well as decreases in staffing related expenses and consulting.
Cash provided by operations for the first six months of 2009 was $1,923 compared with $1,248 provided in the first six months of 2008, a $675 increase.
Cash used in investing activities for the first six months of 2009 was $3,553, which includes a $3,250 loan to our former parent company, detailed in Note 8, compared with $382 used in the first six months of 2008. Capital spending was $303 and $382 in the first six months ended June 30, 2009 and June 30, 2008, respectively.
Cash used in financing activities during the first six months of 2009 was $24 compared with $7,632 used in the first six months of 2008. The most significant component for the first six months of 2008 was the $7,092 related to the special dividend outlined in Note 4, Shareholders Equity.
Read the The complete ReportOFLX is in the portfolios of Third Avenue Management, Martin Whitman of Third Avenue Value Fund.
Omega Flex is engaged in the manufacture and sale of flexible metal hose for applications in conveying various liquids and gases within a number of industries. Co.\'s product lines include corrugated metal hoses in a range of sizes and alloys including three grades of stainless steel bronze Inconel and Hastelloy. Co. also manufactures a range of pressure reinforcing braids for its hoses in both metallic and synthetic constructions. These products are used primarily for the processing industries transportation industry medical and semiconductor markets and for instrumentation as well as the construction industry. Omega Flex Inc. has a market cap of $168.9 million; its shares were traded at around $16.75 with a P/E ratio of 38.1 and P/S ratio of 2.7.
Highlight of Business Operations:
Cash has been positively generated during 2009 from operations, but shows a decrease of $1,495 from December 31, 2008 to June 30, 2009, largely as a result of a $3,250 loan made to a related party, Mestek, Inc., which is discussed in detail in Note 8. This also explains the $3,250 increase in the Note Receivable from former Parent.During 2009, the Companys inventory balance has decreased $2,852 from $10,242 at December 31, 2008 to $7,390 at June 30, 2009. The decrease is largely due to a focus on inventory management and reductions, along with an inventory write-down resulting from the implementation of updated material standards.
General and Administrative Expenses. General and administrative expenses consist primarily of employee salaries, benefits for administrative, executive and finance personnel, legal and accounting, and corporate general and administrative services. General and administrative expenses were $3,792 and $2,719 for the six months ended June, 2008 and 2009, respectively. General and administrative expense, as a percentage of sales, increased from 11.6% for the six months ended June 30, 2008 to 13.4% for the six months ended June 30, 2009. The $1,073 decrease is largely attributable to a decrease in legal which was partially related to the cash settlement of the Parker Hannifin case, as outlined in the Companys December 31, 2008 Form 10-K, as well as decreases in staffing related expenses and consulting.
Cash provided by operations for the first six months of 2009 was $1,923 compared with $1,248 provided in the first six months of 2008, a $675 increase.
Cash used in investing activities for the first six months of 2009 was $3,553, which includes a $3,250 loan to our former parent company, detailed in Note 8, compared with $382 used in the first six months of 2008. Capital spending was $303 and $382 in the first six months ended June 30, 2009 and June 30, 2008, respectively.
Cash used in financing activities during the first six months of 2009 was $24 compared with $7,632 used in the first six months of 2008. The most significant component for the first six months of 2008 was the $7,092 related to the special dividend outlined in Note 4, Shareholders Equity.
Read the The complete ReportOFLX is in the portfolios of Third Avenue Management, Martin Whitman of Third Avenue Value Fund.
