EXTON, PA — Omega Flex’s Chairman and CEO Kevin R. Hoben recently announced that the Company’s net sales for 2020 and 2019 were $105,796,000 and $111,360,000, respectively, decreasing 5.0%.
The Company’s sales volume for the year decreased as a result of restrictions imposed in response to the COVID-19 pandemic during the second quarter of 2020. Sales generally rose after reaching the lowest point in April 2020, with several months exceeding sales results from the prior year.
Net sales for the three months ended December 31, 2020 were strong, increasing 6.4% over the fourth quarter of 2019.
The Company’s net income for 2020 was $19,910,000 compared to $17,286,000 during 2019, increasing $2,624,000 or 15.2%.
Hoben stated the growth in net income for the year is driven by decreases in several atypical SG&A items identified during 2019. However, the Company was able to maintain its gross profit percentage at prior levels despite COVID-19 disruptions, such as increased costs to sanitize the factory and equipment, inefficiencies from staggered work shifts and overtime costs due to employees being quarantined, as well as unabsorbed overhead.
The Company’s income for the fourth quarter of 2020 was 29.3% higher than the same quarter last year, primarily connected to the expansion in sales during the final quarter, and shedding of the atypical costs previously noted.
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