EXTON, Pa., Oct. 15, 2020 (GLOBE NEWSWIRE) -- Omega Flex today reported its results of operations for the Third Quarter, 2020:
Kevin R. Hoben, Chairman and CEO, announced that the Company’s net sales for the first nine months of 2020 and 2019 were $74,171,000 and $81,627,000, respectively, decreasing 9.1%. Net sales for the three months ended September 30, 2020 were 3.4% lower than the third quarter of 2019.
The Company experienced a noticeable deterioration in its sales volume during the second quarter of 2020, as non-essential businesses were closed, most notably residential construction work sites, with April being the trough. Since May, the Company has generally experienced a progressive rise in sales, with multiple periods in excess of 2019.
The Company’s net income through September 2020 was $12,732,000 compared to $11,733,000 through the first nine months of 2019, increasing $999,000 or 8.5%. Net income for the third quarter of 2020 was 43.0% higher than 2019.
The growth in net income for the year and quarter is largely driven by decreases in several atypical SG&A items identified during 2019. The most prominent decreases relate to product liability defense costs associated primarily with one class action case, which was dismissed in favor of Omega Flex during the third quarter of 2020, and consulting costs related to our new product, MediTrac® flexible medical gas piping. These items more than offset a decrease in gross profit which was in line with lower sales volume.
