UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.   20549
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of the earliest event reported)
November 5, 2013

COMPX INTERNATIONAL INC.
(Exact name of registrant as specified in its charter)
 
Delaware	1-13905	57-0981653	
(State or other jurisdiction of incorporation)	(Commission
File Number)	(IRS Employer
Identification No.)	

5430 LBJ Freeway, Suite 1700, Dallas, Texas	75240-2697	
(Address of principal executive offices)	(Zip Code)	
 
Registrant’s telephone number, including area code
(972) 448-1400

 	(Former name or former address, if changed since last report.)	 	
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2):
 
o	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)	
 	 	
¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)	
 	 	
¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))	
 	 	
¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))	

 

 

Item 2.02	Results of Operations and Financial Condition.	
Item 7.01	Regulation FD Disclosure.	

Pursuant to Items 2.02 and 7.01 of this current report, the registrant hereby furnishes the information set forth in its press release issued on November 5, 2013, a copy of which is attached hereto as Exhibit 99.1 and incorporated herein by reference.

The information, including the exhibit, the registrant furnishes in this report is not deemed "filed" for purposes of section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section.  Registration statements or other documents filed with the Securities and Exchange Commission shall not incorporate this information by reference, except as otherwise expressly stated in such filing.

Item 9.01	Financial Statements and Exhibits.	
 	 	
(d)	Exhibits.	
 	 	
       Item No.	Exhibit Index                                                                                  	
       99.1	Press Release dated November 5, 2013 issued by the registrant.	

 

 

.
SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 	COMPX INTERNATIONAL INC.
(Registrant)

 	 
 
By: /s/ A. Andrew R. Louis                                                                        
A. Andrew R. Louis
Secretary	

Date:  November 5, 2013

 

 

INDEX TO EXHIBITS

Exhibit No.	Description                                                                                          	
99.1	Press Release dated November 5, 2013 issued by the registrant.	

 

 

PRESS RELEASE

FOR IMMEDIATE RELEASE:	CONTACT:	
 	 	
CompX International Inc.	David A. Bowers	
5430 LBJ Freeway, Suite 1700	President & CEO	
Dallas, Texas 75240	Tel. 864-286-1122	

COMPX REPORTS THIRD QUARTER 2013 RESULTS

DALLAS, TEXAS …November 5, 2013 … CompX International Inc. (NYSE MKT: CIX) announced today sales of $24.2 million for the third quarter of 2013 compared to $21.3 million in the same period of 2012.  Operating income was $3.0 million in the third quarter of 2013 compared to $1.6 million in the same period in 2012.  Income from continuing operations after taxes for the third quarter of 2013 was $2.0 million, or $0.16 per diluted share, compared to $900,000, or $0.07 per diluted share, in the third quarter of 2012.

For the nine months ended September 30, 2013, sales were $69.7 million compared to $63.8 million in the previous year.  Operating income was $7.4 million for the first nine months of 2013 compared to $5.4 million for 2012.  Income from continuing operations after taxes for the nine months ended September 30, 2013 was $4.7 million or $0.38 per diluted share, compared to $2.9 million, or $0.24 per diluted share, in 2012.

Net sales increased in 2013 principally due to higher demand for high security pin tumbler locks within our Security Products segment, and to a lesser extent from an increase in Marine Components sales beyond the high performance boat market.  Operating income for the third quarter and for the nine months ended September 30, 2013 increased as a result of the combination of higher sales in 2013 and an asset held for sale write-down in the third quarter of 2012, partially offset by higher self-insured medical expenses in 2013.

“We are very pleased that our third quarter results continued the year-over-year sales growth in both of our segments that we achieved in the first half of this year,” commented David A. Bowers, President & CEO.  “Gross profit margin improved as well over the prior year as the higher sales leveraged our efficient cost structure across the company.  The progress in our Marine Components segment, where we are gaining market share with new products, continues our strategic shift in this business. Despite the challenges of the current economic environment, growth of our Security Products segment was aided by our ongoing efforts to diversify our products and customers, which we anticipate will continue to benefit this segment for the remainder of the year and into the future.”

 
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CompX is a leading manufacturer of security products and recreational marine components.  It operates from four locations in the U.S. and employs approximately 500 people.

Forward-Looking Statements
Statements in this release relating to matters that are not historical facts are forward-looking statements based upon management’s belief and assumptions using currently available information.  Although CompX believes the expectations reflected in such forward-looking statements are reasonable, it cannot give any assurances that these expectations will prove to be correct.  Such statements, by their nature, involve substantial risks and uncertainties that could significantly impact expected results, and actual future results could differ materially from those described in such forward-looking statements.  While it is not possible to identify all factors, CompX continues to face many risks and uncertainties.  Among the factors that could cause actual future results to differ materially include, but are not limited to, general economic and political conditions, changes in raw material and other operating costs, demand for office furniture, service industry employment levels, competitive products and prices, fluctuations in currency exchange rates, the introduction of trade barriers, potential difficulties in integrating completed acquisitions, the ability to sustain or increase operating income improvement resulting from cost control initiatives, uncertainties associated with the development of new product features and other risks and uncertainties detailed in CompX’s Securities and Exchange Commission filings.  Should one or more of these risks materialize or if the consequences worsen, or if the underlying assumptions prove incorrect, actual results could differ materially from those currently forecasted or expected.  CompX disclaims any intention or obligation to publicly update or revise such statements whether as a result of new information, future events or otherwise.

 

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COMPX INTERNATIONAL INC.
SUMMARY OF CONSOLIDATED OPERATIONS
(In millions, except per share amounts)
(Unaudited)

 	 	Three months ended	 	 	Nine months ended	 	
 	 	September 30,   	 	 	September 30,   	 	
 	 	2012	 	 	2013	 	 	2012	 	 	2013	 	

Net sales	 	$	21.3	 	 	$	24.2	 	 	$	63.8	 	 	$	69.7	 	
Cost of goods sold	 	 	15.0	 	 	 	16.7	 	 	 	45.0	 	 	 	48.6	 	
Gross profit	 	 	6.3	 	 	 	7.5	 	 	 	18.8	 	 	 	21.1	 	
Selling, general and administrative expense	 	 	4.3	 	 	 	4.5	 	 	 	13.0	 	 	 	13.7	 	
Assets held for sale write-down	 	 	0.4	 	 	 	-	 	 	 	0.4	 	 	 	-	 	
Operating income	 	 	1.6	 	 	 	3.0	 	 	 	5.4	 	 	 	7.4	 	
Other non-operating expenses, net	 	 	(0.1	)	 	 	-	 	 	 	(0.4	)	 	 	(0.1	)	
Income from continuing operations before taxes	 	 	1.5	 	 	 	3.0	 	 	 	5.0	 	 	 	7.3	 	
Provision for income taxes	 	 	0.6	 	 	 	1.0	 	 	 	2.1	 	 	 	2.6	 	
Income from continuing operations after taxes	 	 	0.9	 	 	 	2.0	 	 	 	2.9	 	 	 	4.7	 	
Discontiued operations, net of tax	 	 	1.7	 	 	 	-	 	 	 	3.3	 	 	 	-	 	
Net income	 	$	2.6	 	 	$	2.0	 	 	$	6.2	 	 	$	4.7	 	

Net income per diluted common share:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
     Conitnuing operations	 	$	0.07	 	 	$	0.16	 	 	$	0.24	 	 	$	0.38	 	
     Discontinued operations	 	 	0.14	 	 	 	-	 	 	 	0.26	 	 	 	-	 	
           Net income	 	$	0.21	 	 	$	0.16	 	 	$	0.50	 	 	$	0.38	 	

Weighted average diluted common	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
   shares outstanding	 	 	12.4	 	 	 	12.4	 	 	 	12.4	 	 	 	12.4	 	

 

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COMPX INTERNATIONAL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)

 	 	December 31,	 	 	September 30,	 	
 	 	2012	 	 	2013	 	
Assets	 	 	 	 	(Unaudited)	 	
 	 	 	 	 	 	 	
Current assets:	 	 	 	 	 	 	
  Cash and equivalents	 	$	63.8	 	 	$	36.6	 	
  Accounts receivable, net	 	 	8.5	 	 	 	10.7	 	
  Inventories, net	 	 	11.2	 	 	 	12.9	 	
  Deferred income taxes and other	 	 	7.1	 	 	 	3.3	 	
    Total current assets	 	 	90.6	 	 	 	63.5	 	
 	 	 	 	 	 	 	 	 	
Goodwill	 	 	23.7	 	 	 	23.7	 	
Net property and equipment	 	 	33.7	 	 	 	33.7	 	
Other noncurrent	 	 	2.2	 	 	 	0.6	 	
 	 	 	 	 	 	 	 	 	
    Total assets	 	$	150.2	 	 	$	121.5	 	
 	 	 	 	 	 	 	 	 	
Liabilities and Stockholders’ Equity	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	
Current liabilities:	 	 	 	 	 	 	 	 	
  Current maturities of long-term debt	 	$	1.0	 	 	$	-	 	
  Accounts payable and accrued liabilities	 	 	11.1	 	 	 	10.2	 	
  Income taxes	 	 	12.2	 	 	 	0.4	 	
  Other	 	 	0.1	 	 	 	-	 	
    Total current liabilities	 	 	24.4	 	 	 	10.6	 	
 	 	 	 	 	 	 	 	 	
Long-term debt	 	 	17.5	 	 	 	-	 	
Deferred income taxes	 	 	6.2	 	 	 	6.9	 	
Stockholders’ equity	 	 	102.1	 	 	 	104.0	 	
 	 	 	 	 	 	 	 	 	
    Total liabilities and stockholders’ equity	 	$	150.2	 	 	$	121.5	 	

 
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