Omega Flex, Inc. (the
"Company") OFLX announced that its English subsidiary, Omega Flex
Limited ("OFL"), has reached an agreement to settle litigation related to a
construction project in Milton Keynes, England that involved a number of
parties and issues. This agreement fully resolves all claims related to the
construction project, including claims regarding performance deficiencies of
OFL products at the site. OFL believes that the claims are without merit and
strongly disagrees with the allegation that the products caused any delays or
damages at the site. Following protracted litigation and the uncertain
prospects of a trial and the possibility of costs being assessed against OFL,
the board of directors of OFL decided that it would be in the best interests
of that company to enter into this agreement to resolve these claims and avoid
potentially costly litigation.
OFL agreed to resolve claims by making a one-time payment of £800,000, which
on a consolidated basis after considering all ancillary charges, will result
in an after-tax charge to earnings of the Company of $820,000 ($0.08 per
diluted common share) in both the Company's fourth quarter and year ended
December 31, 2012. The settlement agreement was entered into after the Company
announced its preliminary results of operations for the fourth quarter and
year ended December 31, 2012, but prior to the filing of the Company's Annual
Report on Form 10-K with the U.S. Securities and Exchange Commission for the
fiscal year ended December 31, 2012. In accordance with U.S. generally
accepted accounting principles, the Company is required to recognize the
consummation of this agreement as a subsequent event in its 2012 fiscal year
results because the event is related to conditions that existed at the balance
sheet date of December 31, 2012. The Company's Net Sales and Net Income
attributable to Omega Flex, Inc. for the quarter and year ended December 31,
2012, as reported in the Company's Current Report on Form 8-K furnished on
February 21, 2013, are being revised to reflect the effects of the settlement
agreement as indicated below. Although this agreement will not have an effect
on full year 2013 earnings, cash flow from operations will be impacted when
this settlement payment is made.
OMEGA FLEX, INC. (OFLX)
Twelve Months Ended Three Months Ended
December 31, December 31,
2012 2011 2012 2011
Net Sales $64,016,000 $54,193,000 $18,426,000 $15,618,000
Net Income attributable to $6,876,000 $4,647,000 $774,000 $1,708,000
Omega Flex, Inc.
Earnings Per Share – Basic and $0.68 $0.46 $0.08 $0.17
Diluted
Weighted Average Shares – 10,091,822 10,091,822 10,091,822 10,091,822
Basic and Diluted
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in