10-Q
2011-09-30
false
Omega Flex, Inc.
0001317945
--12-11
10091822
41775792
Smaller Reporting Company
No
No
No
2011
Q3
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<!--egx--><p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric"><b>1. BASIS OF PRESENTATION AND DESCRIPTION OF BUSINESS</b></p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric"> </p> <p style="MARGIN:0in 0in 0pt; tab-stops:.25in"><b> <u>Basis of Presentation</u></b></p> <p style="MARGIN:0in 0in 0pt"><b><u><font style="TEXT-DECORATION:none"> </font></u></b></p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; tab-stops:.25in"> The accompanying unaudited condensed consolidated financial statements include the accounts of Omega Flex, Inc. (Omega) and its subsidiaries (collectively the “Company”). The Company’s unaudited condensed consolidated financial statements for the quarter ended September 30, 2011 have been prepared in accordance with accounting principles generally accepted in the United States (GAAP), and with the instructions of Form 10-Q and Article 10 of Regulation S-X. Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to those rules and regulations, although the company believes that the disclosures made are adequate to make the information not misleading. It is suggested that these condensed consolidated financial statements be read in conjunction with the financial statements and the notes thereto included in the Company’s latest shareholders’ annual report (Form 10-K). All material inter-company accounts and transactions have been eliminated in consolidation. It is Management’s opinion that all adjustments necessary for a fair statement of the results for the interim periods have been made, and that all adjustments are of a normal recurring nature or a description is provided for any adjustments that are not of a normal recurring nature.</p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; tab-stops:.25in"> </p> <p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; tab-stops:.25in"> <b><u>Description of Business</u></b></p> <p style="MARGIN:0in 0in 0pt"> </p> <p style="MARGIN:0in 0in 0pt; tab-stops:.25in"><b> </b>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. These applications include carrying liquefied gases in certain processing applications, fuel gases within residential and commercial buildings and vibration absorbers in high vibration applications. In addition, our flexible metal piping is used to carry other types of gases or fluids in a number of industrial applications where the customer requires a degree of flexibility, an ability to carry corrosive compounds or mixtures, a double containment system, or piping to carry gases or fluids at very high or very low (cryogenic) temperatures.</p> <p style="MARGIN:0in 0in 0pt"> </p> <p style="MARGIN:0in 0in 0pt; tab-stops:.25in"> The Company manufactures flexible metal hose at its facility in Exton, Pennsylvania, with a minor amount of manufacturing performed in the United Kingdom. The Company sells its product through distributors, wholesalers and to original equipment manufacturers (“OEMs”) throughout North America, and in certain European markets.</p>
<!--egx--><p style="MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric"><b>2. SIGNIFICANT ACCOUNTING POLICIES</b></p> <p style="MARGIN:0in 0in 0pt; tab-stops:16.8pt"> </p> <p style="MARGIN:0in 0in 0pt; tab-stops:.25in"><b> <u>Use of Estimates</u></b></p> <p style="MARGIN:0in 0in 0pt; tab-stops:.25in"> </p> <p style="MARGIN:0in 0in 0pt; tab-stops:.25in"> The preparation of financial statements in conformity with 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 valuations, inventory valuations, goodwill valuation, product liability reserve and accounting for income taxes. Actual amounts could differ significantly from these estimates.</p> <p style="MARGIN:0in 0in 0pt; tab-stops:.25in"> </p> <p style="MARGIN:0in 0in 0pt; tab-stops:.25in"><b> <u>Revenue Recognition</u></b></p> <p style="MARGIN:0in 0in 0pt; tab-stops:16.8pt"><b> </b></p> <p style="MARGIN:0in 0in 0pt; tab-stops:.25in"> The Company’s revenue recognition activities relate almost entirely to the manufacture and sale of flexible metal hose and pipe. Under GAAP, revenues are considered to have been earned when the Company has substantially accomplished what it must do to be entitled to the benefits represented by the revenues. The following criteria represent preconditions to the recognition of revenue:</p> <p style="MARGIN:0in 0in 0pt; tab-stops:16.8pt"> </p> <p style="MARGIN:0in 0in 0pt 20.4pt"><font style="FONT-FAMILY:Symbol">·</font> Persuasive evidence of an arrangement for the sale of product or services must exist.</p> <p style="MARGIN:0in 0in 0pt 20.4pt"> </p> <p style="MARGIN:0in 0in 0pt 20.4pt"><font style="FONT-FAMILY:Symbol">·</font><font style="FONT-FAMILY:Symbol"> </font>Delivery has occurred or services rendered.</p> <p style="MARGIN:0in 0in 0pt 20.4pt"> </p> <p style="MARGIN:0in 0in 0pt 20.4pt"><font style="FONT-FAMILY:Symbol">·</font> The sales price to the customer is fixed or determinable.</p> <p style="MARGIN:0in 0in 0pt 20.4pt"> </p> <p style="MARGIN:0in 0in 0pt 20.4pt; tab-stops:-.3in -15.6pt .25in"><font style="FONT-FAMILY:Symbol">·</font><font style="FONT-FAMILY:Symbol"> </font>Collection is reasonably assured.</p> <p style="MARGIN:0in 0in 0pt 20.4pt"> </p> <p style="MARGIN:0in 0in 0pt; tab-stops:-4.5pt .25in"> The Company recognizes revenue upon shipment in accordance with the above principles.</p> <p style="MARGIN:0in 0in 0pt -1.2pt; tab-stops:.3in"> </p> <p style="MARGIN:0in 0in 0pt; tab-stops:-4.5pt .25in"> Gross sales are reduced for all consideration paid to customers for which no identifiable benefit is received by the Company. This includes promotional incentives, which includes various programs including year-end rebates and discounts. The amounts of certain incentives are known with reasonable certainty at the time of sale, while others are projected based upon the most reliable information available at the reporting date.</p> <p style="MARGIN:0in 0in 0pt; tab-stops:-4.5pt .25in"> </p> <p style="MARGIN:0in 0in 0pt; tab-stops:-4.5pt .25in"> Commissions, for which the Company receives an identifiable benefit, are accounted for as a sales expense.</p> <p style="MARGIN:0in 0in 0pt; tab-stops:-4.5pt .25in"> </p> <p style="MARGIN:0in 0in 0pt; tab-stops:.25in"><b> <u>Earnings per Common Share</u></b></p> <p style="MARGIN:0in 0in 0pt"> </p> <p style="MARGIN:0in 0in 0pt; tab-stops:.25in"> 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.</p><br clear="all" style="PAGE-BREAK-BEFORE:always"></br> <p style="MARGIN:0in 0in 0pt; tab-stops:19.2pt"> <b><u>Currency Translation</u></b></p> <p style="MARGIN:0in 0in 0pt; tab-stops:.25in"> </p> <p style="MARGIN:0in 0in 0pt; tab-stops:.25in"> 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 Income 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 operations (other income (expense)) in the period in which they occur.</p> <p style="MARGIN:0in 0in 0pt; tab-stops:.25in"> </p> <p style="MARGIN:0in 0in 0pt; tab-stops:.25in"><b> <u>Income Taxes</u></b></p> <p style="MARGIN:0in 0in 0pt; tab-stops:.25in"><u><font style="TEXT-DECORATION:none"> </font></u></p> <p style="TEXT-INDENT:0.25in; MARGIN:0in 0in 0pt">The Company accounts for taxes in accordance with the FASB ASC Topic 740 Income Taxes. Under this method the Company records income tax expense and the related deferred taxes and tax benefits.</p> <p style="MARGIN:0in 0in 0pt; tab-stops:.25in"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; tab-stops:.25in"> 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 in which the rate is enacted. 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. No valuation reserve was deemed necessary through September, 30 2011 or in 2010. Also, in accordance with FASB ASC Topic 740 (formerly FIN 48), the Company had reserves on the books for uncertainties in tax positions of $286,000 at September 30, 2011, and $276,000 at December 31, 2010. These reserves are reviewed each quarter.</p> <p style="MARGIN:0in 0in 0pt; tab-stops:.25in"> </p> <p style="MARGIN:0in 0in 0pt; tab-stops:.25in"><b> <u>Other Comprehensive Loss</u></b></p> <p style="MARGIN:0in 0in 0pt; tab-stops:.25in"><b><u><font style="TEXT-DECORATION:none"> </font></u></b></p> <p style="MARGIN:0in 0in 0pt; tab-stops:16.8pt"> For the quarter ended September 30, 2011 and 2010, respectively, the sole component of Other Comprehensive Loss was a foreign currency translation adjustment.</p>
<!--egx--><p style="MARGIN:0in 0in 0pt; tab-stops:.25in"><b>3. INVENTORIES</b></p> <p style="MARGIN:0in 0in 0pt"><b> </b></p> <p style="MARGIN:0in 0in 0pt"><b> </b>Inventories, net of reserves consisted of the following:</p> <p style="MARGIN:0in 0in 0pt; tab-stops:right 225.0pt 4.5in 5.5in 477.0pt 562.5pt 643.5pt"><b><u><font style="TEXT-DECORATION:none"> </font></u></b></p> <table width="622" style="WIDTH:466.25pt; BORDER-COLLAPSE:collapse" cellpadding="0" cellspacing="0"> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="355" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:3.7in; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="MARGIN:0in 0in 0pt"> </p></td> <td width="120" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:1.25in; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align="center"><b>September 30,</b></p></td> <td width="36" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:27pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 22.45pt" align="center"><b> </b></p></td> <td width="110" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:82.85pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align="center"><b>December 31,</b></p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="355" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:3.7in; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="MARGIN:0in 0in 0pt"> </p></td> <td width="120" style="BORDER-BOTTOM:windowtext 1pt solid; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:1.25in; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align="center"><b>2011</b></p></td> <td width="36" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:27pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 22.45pt" align="center"><b><u><font style="TEXT-DECORATION:none"> </font></u></b></p></td> <td width="110" style="BORDER-BOTTOM:windowtext 1pt solid; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:82.85pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align="center"><b>2010</b></p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="355" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:3.7in; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="MARGIN:0in 0in 0pt"> </p></td> <td width="266" colspan="3" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:199.85pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 22.45pt" align="center"><b>(dollars in thousands)</b></p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="355" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:3.7in; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="MARGIN:0in 0in 0pt"> </p></td> <td width="120" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:1.25in; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="MARGIN:0in 0in 0pt"> </p></td> <td width="36" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:27pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="MARGIN:0in 0in 0pt 22.45pt"> </p></td> <td width="110" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:82.85pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="MARGIN:0in 0in 0pt"> </p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="355" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:3.7in; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="MARGIN:0in 0in 0pt">Finished Goods</p></td> <td width="120" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:1.25in; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align="center">$4,318</p></td> <td width="36" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:27pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 22.45pt" align="center"> </p></td> <td width="110" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:82.85pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align="center">$4,297</p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="355" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:3.7in; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="MARGIN:0in 0in 0pt">Raw Materials</p></td> <td width="120" style="BORDER-BOTTOM:windowtext 1pt solid; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:1.25in; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align="center"> 1,891</p></td> <td width="36" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:27pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 22.45pt" align="center"><u><font style="TEXT-DECORATION:none"> </font></u></p></td> <td width="110" style="BORDER-BOTTOM:windowtext 1pt solid; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:82.85pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align="center"> 1,719</p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="355" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:3.7in; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="MARGIN:0in 0in 0pt"> </p></td> <td width="120" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:1.25in; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align="center"> </p></td> <td width="36" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:27pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 22.45pt" align="center"> </p></td> <td width="110" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:82.85pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align="center"> </p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="355" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:3.7in; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="MARGIN:0in 0in 0pt">Total Inventory</p></td> <td width="120" style="BORDER-BOTTOM:windowtext 1.5pt double; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:1.25in; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align="center">$6,209</p></td> <td width="36" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:27pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 22.45pt" align="center"> </p></td> <td width="110" style="BORDER-BOTTOM:windowtext 1.5pt double; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:82.85pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align="center">$6,016</p></td></tr></table> <p style="MARGIN:0in 0in 0pt; tab-stops:-60.0pt right -.75in left 0in .25in right 3.25in 297.0pt 5.0in 423.9pt 6.5in"> </p><br clear="all" style="PAGE-BREAK-BEFORE:always"></br>
<!--egx--><p style="MARGIN:0in 0in 0pt; tab-stops:-60.0pt right -.75in left 0in .25in right 3.25in 297.0pt 5.0in 423.9pt 6.5in"><b>4. LINE OF CREDIT</b></p> <p style="MARGIN:0in 0in 0pt"> </p> <p style="TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">On December 30, 2010, the Company agreed to a new Revolving Line of Credit Note and Loan Agreement with Sovereign Bank, NA (“Sovereign”). The Company established a line of credit facility in the maximum amount of $10,000,000, maturing on December 31, 2014, with funds available for working capital purposes and other cash needs. The loan is collateralized by all of the Company’s tangible and intangible assets. The loan agreement provides for the payment of any borrowings under the agreement at an interest rate range of either LIBOR plus 1.75% to plus 2.75% (for borrowings with a fixed term of 30, 60, or 90 days), or, Prime less 0.50% to plus 0.50% (for borrowings with no fixed term other than the December 31, 2014 maturity date), depending upon the Company’s then existing financial ratios. At September 30, 2011, the Company’s ratio would allow for the most favorable rate under the agreement’s range, which would be a rate of 2.17% (LIBOR plus 1.75%). The Company is required to pay an annual commitment fee for the access to the funds, and is also obligated to pay a “Line Fee” ranging from 17.5 to 35.0 basis points of the average unused balance on a quarterly basis, depending again upon the Company’s then existing financial ratios. The Company may terminate the line at any time during the four year term, as long as there are no amounts outstanding.</p> <p style="MARGIN:0in 0in 0pt"> </p> <p style="TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">As of September 30, 2011, and December 31, 2010, respectively, the Company had no outstanding borrowings on its line of credit.</p> <p style="MARGIN:0in 0in 0pt"> </p> <p style="TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">As of September 30, 2011 and December 31, 2010, the Company was in compliance with all debt covenants.</p>
<!--egx--><h6 style="tab-stops:-60.0pt right -.75in left 0in .25in right 3.25in 297.0pt 5.0in 423.9pt 6.5in"><font style="TEXT-DECORATION:none; text-underline:none"><u>5. COMMITMENTS AND CONTINGENCIES</u></font></h6> <p style="MARGIN:0in 0in 0pt; tab-stops:-60.0pt right -.75in left 0in .25in right 3.25in 297.0pt 5.0in 423.9pt 6.5in"> </p> <p style="MARGIN:0in 0in 0pt"><b><u>Commitments:</u></b></p> <p style="MARGIN:0in 0in 0pt"><u><font style="TEXT-DECORATION:none"> </font></u></p> <p style="TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">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.</p> <p style="TEXT-INDENT:4.5pt; MARGIN:0in 0in 0pt"> </p> <p style="TEXT-INDENT:4.5pt; MARGIN:0in 0in 0pt"> The Company has salary continuation agreements with two employees, which 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 at age 65. 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 is $459,000 at September 30, 2011, of which $447,000 is included in Other Long Term Liabilities, and the remaining current portion of $12,000 is included in other liabilities, as one of the employees retired at the end of 2010 and is now receiving payments.</p><br clear="all" style="PAGE-BREAK-BEFORE:always"></br> <p style="TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">The December 31, 2010 liability of $407,000, had $395,000 reported in Other Long Term Liabilities, and a current portion of $12,000 in Other Liabilities. </p> <p style="TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt"> </p> <p style="TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">The Company has obtained and is the beneficiary of three whole life insurance policies with respect to the two employees discussed above, and one other policy. The cash surrender value of such policies (included in Other Long Term Assets) amounts to $728,000 at September 30, 2011 and $706,000 at December 31, 2010.</p> <p style="MARGIN:0in 0in 0pt"> </p> <p style="MARGIN:0in 0in 0pt; tab-stops:-22.5pt"><b><u>Contingencies:</u></b></p> <p style="MARGIN:0in 0in 0pt"><b><u><font style="TEXT-DECORATION:none"> </font></u></b></p> <p style="TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">The Company’s general liability insurance policies are subject to deductibles or retentions, ranging from $25,000 to $250,000 per claim, (depending on the terms of the policy and the applicable policy year) up to an aggregate amount. The Company is insured on a ‘first dollar’ basis for workers’ compensation subject to statutory limits. </p> <p style="MARGIN:0in 0in 0pt; tab-stops:0in 37.2pt 1.0in right 189.0pt 247.5pt 319.5pt 382.5pt 441.0pt left 6.5in"> </p> <p style="TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">In the ordinary and normal conduct of our business, the Company is subject to periodic lawsuits, investigations and claims (collectively, the “Claims”). There has been an increase in the frequency of those Claims over the past two years relating to product liability. The Company does not believe that the Claims have legal merit, and is therefore vigorously defending against those Claims. The Company has in place commercial general liability insurance policies that cover the Claims, including those alleging damages as a result of product defects. Litigation is subject to many uncertainties and management is unable to predict the outcome of the pending suits and claims. It is possible that the results of operations or liquidity and capital resources of the Company could be adversely affected by the ultimate outcome of the pending litigation or as a result of the costs of contesting such lawsuits, potentially materially. The Company is currently unable to estimate the ultimate liability, if any, that may result from the pending litigation and, accordingly, no provision for any liability (except for accrued legal costs for services and claim settlements previously rendered) has been made in the condensed consolidated financial statements. Those liabilities were estimated to be $359,000 and $309,000, at September 30, 2011 and December 31, 2010, respectively, and are included in Other Liabilities. </p> <p style="MARGIN:0in 0in 0pt"> </p> <p style="MARGIN:0in 0in 0pt"><b><u>Warranty Commitments:</u></b></p> <p style="MARGIN:0in 0in 0pt"> </p> <p style="MARGIN:0in 0in 0pt; tab-stops:.5in"> Gas transmission products such as those made by the Company carry potentially serious personal injury risks in the event of failures in the field. As a result, the Company performs extensive internal testing and other quality control procedures. Historically, due to the extensive nature of these quality controls the Company has not had a meaningful warranty claim rate, and the warranty expense is <i>de minimis. A</i>ccordingly, the Company does not maintain a warranty reserve beyond a nominal amount.</p>
<!--egx--><p style="MARGIN:0in 0in 0pt; tab-stops:.5in"><b>6. STOCK BASED PLANS</b></p> <p style="MARGIN:0in 0in 0pt; tab-stops:.5in"><b> </b></p> <p style="MARGIN:0in 0in 0pt; tab-stops:0in .5in center 6.25in left 6.5in"><b>Phantom Stock Plan</b></p> <p style="MARGIN:0in 0in 0pt; tab-stops:0in .5in center 6.25in left 6.5in"> </p> <p style="MARGIN:0in 0in 0pt; tab-stops:0in .5in center 6.25in left 6.5in"><b> <i>Plan Description. </i></b>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. The Units are not </p> <p style="MARGIN:0in 0in 0pt; tab-stops:0in .5in center 6.25in left 6.5in">shares of the Company’s common stock, and a recipient of the Units <u>does not</u> receive any of the following:</p> <p style="MARGIN:0in 0in 0pt; tab-stops:0in .5in center 6.25in left 6.5in"> </p> <p style="TEXT-INDENT:-0.25in; MARGIN:0in 0in 0pt 0.75in; tab-stops:0in .75in center 6.25in left 6.5in"><font style="FONT-FAMILY:Wingdings">§<font style="FONT:7pt 'Times New Roman'"> </font></font>ownership interest in the Company</p> <p style="TEXT-INDENT:-0.25in; MARGIN:0in 0in 0pt 0.75in; tab-stops:0in .75in center 6.25in left 6.5in"><font style="FONT-FAMILY:Wingdings">§<font style="FONT:7pt 'Times New Roman'"> </font></font>shareholder voting rights </p> <p style="TEXT-INDENT:-0.25in; MARGIN:0in 0in 0pt 0.75in; tab-stops:0in .75in center 6.25in left 6.5in"><font style="FONT-FAMILY:Wingdings">§<font style="FONT:7pt 'Times New Roman'"> </font></font>other incidents of ownership to the Company’s common stock</p> <p style="MARGIN:0in 0in 0pt 0.25in; tab-stops:0in .75in center 6.25in left 6.5in"> </p> <p style="TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt; tab-stops:0in center 6.25in left 6.5in">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, and at a minimum, the Unit’s value will be equal to the closing price of the Company’s common stock on the grant date. The Units follow a vesting schedule, with a maximum vesting of 3 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.</p> <p style="TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt; tab-stops:0in center 6.25in left 6.5in"> </p> <p style="TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt; tab-stops:0in center 6.25in left 6.5in">The Units may be <i>Full Value,</i> in which the value of each Unit at the maturity date, will equal the closing price of the Company’s common stock as of the maturity date; or <i>Appreciation Only</i>, in which the value of each Unit at the maturity date will be equal to the closing price of the Company’s common stock at the maturity date <i>minus</i> the closing price of the Company’s common stock at the grant date.</p> <p style="MARGIN:0in 0in 0pt; tab-stops:0in center 6.25in left 6.5in"> </p> <p style="TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt; tab-stops:0in center 6.25in left 6.5in">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.</p> <p style="MARGIN:0in 0in 0pt; tab-stops:0in center 6.25in left 6.5in"> </p> <p style="TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt; tab-stops:0in center 6.25in left 6.5in">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.</p><br clear="all" style="PAGE-BREAK-BEFORE:always"></br> <p style="MARGIN:0in 0in 0pt; tab-stops:.5in center 6.25in left 6.5in"><b><i> Grants of Phantom Stock Units. </i></b>As of December 31, 2010, the Company had 15,555 unvested units outstanding, all of which were granted at <i>Full Value</i>. On March 3, 2011, the Company granted an additional 8,100 <i>Full Value</i> Units with a fair value of $10.55 per unit on grant date, using historical volatility. In all cases, the grant price was equal to the closing price of the Company’s common stock at the grant date. In March 2011, the Company paid $40,000 for the 2,724 fully vested and matured units that were granted on March 5, 2007. </p> <p style="MARGIN:0in 0in 0pt; tab-stops:0in .5in center 6.25in left 6.5in"> </p> <p style="MARGIN:0in 0in 0pt; tab-stops:0in .5in center 6.25in left 6.5in"> 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.</p> <p style="MARGIN:0in 0in 0pt; tab-stops:0in .5in center 6.25in left 6.5in"> </p> <p style="MARGIN:0in 0in 0pt; tab-stops:.5in"> 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. </p> <p style="MARGIN:0in 0in 0pt; tab-stops:.5in"> </p> <p style="TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt; tab-stops:.5in">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 September 30, 2011. </p> <p style="MARGIN:0in 0in 0pt; tab-stops:.5in"> </p> <p style="TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt; tab-stops:.5in">The total Phantom Stock related liability as of September 30, 2011 was $253,000 of which $76,000 is included in other liabilities, as it is expected to be paid in March 2012, and the balance of $177,000 is included in other long term liabilities.</p> <p style="MARGIN:0in 0in 0pt; tab-stops:.25in"> </p> <p style="MARGIN:0in 0in 0pt; tab-stops:-.25in"> In accordance with FASB ASC Topic 718 Stock Compensation, the Company recorded compensation expense of approximately $28,000 and $43,000 related to the Phantom Stock Plan for the nine months ended September 30, 2011 and 2010, respectively. For the three months ended September 30, 2011 and 2010, the expense was $15,000 and $19,000, respectively.</p> <p style="MARGIN:0in 0in 0pt; tab-stops:0in .5in center 6.25in left 6.5in"> </p> <p style="TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt; tab-stops:-22.5pt center 6.25in left 6.5in">The following table summarizes information about the Company’s nonvested phantom stock Units at September 30, 2011:</p> <p style="MARGIN:0in 0in 0pt; tab-stops:-22.5pt center 6.25in left 6.5in"> </p> <div align="center"> <table width="632" style="MARGIN:auto auto auto 40.2pt; BORDER-COLLAPSE:collapse" cellpadding="0" cellspacing="0"> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="328" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:245.65pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt; tab-stops:0in .5in center 6.25in left 6.5in"> </p></td> <td width="126" style="BORDER-BOTTOM:windowtext 1pt solid; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:94.3pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; tab-stops:0in .5in center 6.25in left 6.5in" align="center"><b>Units</b></p></td> <td width="21" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:15.6pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; tab-stops:0in .5in center 6.25in left 6.5in" align="center"><b> </b></p></td> <td width="158" style="BORDER-BOTTOM:windowtext 1pt solid; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:118.75pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; tab-stops:0in .5in center 6.25in left 6.5in" align="center"><b>Weighted Average Grant Date Fair Value</b></p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="328" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:245.65pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt; tab-stops:0in .5in center 6.25in left 6.5in">Number of Phantom Stock Unit Awards:</p></td> <td width="126" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:94.3pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; tab-stops:0in .5in center 6.25in left 6.5in" align="right"> </p></td> <td width="21" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:15.6pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="MARGIN:0in 0in 0pt; tab-stops:0in .5in center 6.25in left 6.5in"> </p></td> <td width="158" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:118.75pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt; tab-stops:0in .5in center 6.25in left 6.5in"> </p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="328" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:245.65pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt; tab-stops:0in .5in center 6.25in left 6.5in"> Nonvested at December 31, 2010</p></td> <td width="126" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:94.3pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; tab-stops:0in .5in center 6.25in left 6.5in" align="center">15,555</p></td> <td width="21" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:15.6pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; tab-stops:0in .5in center 6.25in left 6.5in" align="center"> </p></td> <td width="158" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:118.75pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; tab-stops:0in .5in center 6.25in left 6.5in" align="center">$11.01</p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="328" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:245.65pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-INDENT:-8.4pt; MARGIN:0in 0in 0pt 8.4pt; tab-stops:12.9pt .5in center 6.25in left 6.5in"> Granted</p></td> <td width="126" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:94.3pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; tab-stops:0in .5in center 6.25in left 6.5in" align="center"> 8,100</p></td> <td width="21" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:15.6pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; tab-stops:0in .5in center 6.25in left 6.5in" align="center"> </p></td> <td width="158" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:118.75pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; tab-stops:0in .5in center 6.25in left 6.5in" align="center"> $10.55 </p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="328" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:245.65pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt; tab-stops:0in .5in center 6.25in left 6.5in"> Vested</p></td> <td width="126" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:94.3pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; tab-stops:0in .5in center 6.25in left 6.5in" align="center"> (7,274)</p></td> <td width="21" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:15.6pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; tab-stops:0in .5in center 6.25in left 6.5in" align="center"> </p></td> <td width="158" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:118.75pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; tab-stops:0in .5in center 6.25in left 6.5in" align="center">($11.92)</p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="328" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:245.65pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt; tab-stops:0in .5in center 6.25in left 6.5in"> Forfeited</p></td> <td width="126" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:94.3pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; tab-stops:0in .5in center 6.25in left 6.5in" align="center">(---)</p></td> <td width="21" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:15.6pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; tab-stops:0in .5in center 6.25in left 6.5in" align="center"> </p></td> <td width="158" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:118.75pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; tab-stops:0in .5in center 6.25in left 6.5in" align="center">($---)</p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="328" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:245.65pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt; tab-stops:0in .5in center 6.25in left 6.5in"> Canceled</p></td> <td width="126" style="BORDER-BOTTOM:windowtext 1pt solid; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:94.3pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; tab-stops:0in .5in center 6.25in left 6.5in" align="center">(---)</p></td> <td width="21" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:15.6pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; tab-stops:0in .5in center 6.25in left 6.5in" align="center"><u><font style="TEXT-DECORATION:none"> </font></u></p></td> <td width="158" style="BORDER-BOTTOM:windowtext 1pt solid; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:118.75pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; tab-stops:0in .5in center 6.25in left 6.5in" align="center">($---)</p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="328" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:245.65pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt; tab-stops:0in .5in center 6.25in left 6.5in"> </p></td> <td width="126" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:94.3pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; tab-stops:0in .5in center 6.25in left 6.5in" align="center"> </p></td> <td width="21" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:15.6pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; tab-stops:0in .5in center 6.25in left 6.5in" align="center"> </p></td> <td width="158" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:118.75pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; tab-stops:0in .5in center 6.25in left 6.5in" align="center"> </p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="328" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:245.65pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt; tab-stops:0in .5in center 6.25in left 6.5in">Nonvested at September 30, 2011</p></td> <td width="126" style="BORDER-BOTTOM:windowtext 1.5pt double; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:94.3pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; tab-stops:0in .5in center 6.25in left 6.5in" align="center">16,381</p></td> <td width="21" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:15.6pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; tab-stops:0in .5in center 6.25in left 6.5in" align="center"><u style="text-underline:double"><font style="TEXT-DECORATION:none"> </font></u></p></td> <td width="158" style="BORDER-BOTTOM:windowtext 1.5pt double; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:118.75pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; tab-stops:0in .5in center 6.25in left 6.5in" align="center">$10.38</p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="328" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:245.65pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt; tab-stops:0in .5in center 6.25in left 6.5in"> </p></td> <td width="126" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:94.3pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; tab-stops:0in .5in center 6.25in left 6.5in" align="center"> </p></td> <td width="21" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:15.6pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; tab-stops:0in .5in center 6.25in left 6.5in" align="center"> </p></td> <td width="158" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:118.75pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; tab-stops:0in .5in center 6.25in left 6.5in" align="center"> </p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:12.6pt"> <td width="328" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:245.65pt; PADDING-RIGHT:5.4pt; HEIGHT:12.6pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt; tab-stops:0in .5in center 6.25in left 6.5in">Phantom Stock Unit Awards Expected to Vest</p></td> <td width="126" style="BORDER-BOTTOM:windowtext 1pt solid; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:94.3pt; PADDING-RIGHT:5.4pt; HEIGHT:12.6pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; tab-stops:0in .5in center 6.25in left 6.5in" align="center">16,381</p></td> <td width="21" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:15.6pt; PADDING-RIGHT:5.4pt; HEIGHT:12.6pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; tab-stops:0in .5in center 6.25in left 6.5in" align="center"><u style="text-underline:double"><font style="TEXT-DECORATION:none"> </font></u></p></td> <td width="158" style="BORDER-BOTTOM:windowtext 1pt solid; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:118.75pt; PADDING-RIGHT:5.4pt; HEIGHT:12.6pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; tab-stops:0in .5in center 6.25in left 6.5in" align="center">$10.38</p></td></tr></table></div> <p style="MARGIN:0in 0in 0pt"> </p><br clear="all" style="PAGE-BREAK-BEFORE:always"></br> <p style="MARGIN:0in 0in 0pt"> </p> <p style="MARGIN:0in 0in 0pt"> The total unrecognized compensation costs calculated at September 30, 2011 are $131,000 which will be recognized through March of 2014. The Company will recognize the related expense over the weighted average period of 1.70 years.</p>
<!--egx--><p style="MARGIN:0in 0in 0pt; tab-stops:0in .5in center 6.25in left 6.5in"><b>7. NONCONTROLLING INTERESTS</b></p> <p style="MARGIN:0in 0in 0pt; tab-stops:0in .5in center 6.25in left 6.5in"><b> </b></p> <p style="MARGIN:0in 0in 0pt"> The Company owns 100% of all subsidiaries, except for its UK subsidiary Omega Flex, Limited, of which it owns 95%. A non-controlling interest owns the other 5%, and held a value of $126,000 at December 31, 2010. The total equity of the Company including the non-controlling interest was $18,266,000 at December 31, 2010. </p> <p style="MARGIN:0in 0in 0pt"> </p> <p style="MARGIN:0in 0in 0pt"> For the nine months ended September 30, 2011, the operations of Omega Flex, Limited generated a loss. The non-controlling interest’s portion of the loss was $14,000.</p> <p style="MARGIN:0in 0in 0pt"> </p> <p style="MARGIN:0in 0in 0pt"> The non-controlling interest must also recognize its share of any currency translation adjustment, since the subsidiary’s functional currency is British Pounds, and the local books are translated into US Dollars for consolidation purposes. The non-controlling interest’s share of foreign exchange gain was $1,000 as of September 30, 2011.</p> <p style="MARGIN:0in 0in 0pt"> </p> <p style="TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">At September 30, 2011, after considering the components above, the balance of the non-controlling interest was $113,000.</p>
<!--egx--><p style="MARGIN:0in 0in 0pt"><b>8. SHAREHOLDERS’ EQUITY</b></p> <p style="MARGIN:0in 0in 0pt"> </p> <p style="MARGIN:0in 0in 0pt"> As of September 30, 2011 and December 31, 2010, the Company had authorized 20,000,000 common stock shares with par value of $0.01 per share. For both periods, the number of shares issued was 10,153,633, and the total number of outstanding shares was 10,091,822, with the 61,811 variance representing shares held in Treasury.</p>
<!--egx--><p style="MARGIN:0in 0in 0pt; tab-stops:0in 19.2pt center 6.25in left 6.5in"><b>9. SUBSEQUENT EVENTS</b></p> <p style="MARGIN:0in 0in 0pt; tab-stops:0in 19.2pt center 6.25in left 6.5in"> </p> <p style="MARGIN:0in 0in 0pt; tab-stops:0in 38.4pt center 6.25in left 6.5in"> The Company evaluated all events or transactions that occurred through the date on which the Company issued these financial statements. During this period, the Company did not have any material subsequent events that impacted its condensed consolidated financial statements.</p>
1362000
2209000
8787000
7314000
6209000
6016000
630000
859000
1739000
644000
18727000
17042000
5395000
5784000
3526000
3526000
1496000
706000
29144000
27058000
952000
856000
1010000
1433000
1744000
2410000
215000
2309000
1769000
6015000
6683000
997000
1217000
911000
892000
7923000
8792000
102000
102000
1000
1000
10808000
10808000
10689000
7750000
-490000
-519000
21108000
18140000
113000
126000
21221000
18266000
29144000
27058000
0001317945
2011-07-01
2011-09-30
0001317945
2011-09-30
0001317945
2010-12-31
0001317945
2010-07-01
2010-09-30
0001317945
2011-01-01
2011-09-30
0001317945
2010-01-01
2010-09-30
0001317945
2010-09-30
0001317945
2009-12-31
iso4217:USD
shares
iso4217:USD
shares
Accounts Receivable less allowance of $614
Accounts Receivable less allowance of $644
Common Stock - par value $0.01 Share: authorized 20,000,000 Shares: 10,153,633 shares issued and 10,091,822 outstanding at September 30, 2011 and December 31, 2010, respectively