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)
August 1, 2008

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 August 1, 2008, 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.	

(c)           Exhibits.

 	Item No.	Exhibit Index                                                                      	

99.1  	Press Release dated August 1, 2008 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:  August 1, 2008

 

 

INDEX TO EXHIBITS

Exhibit No.	Description                                                                       	

99.1	Press Release dated August 1, 2008 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 SECOND QUARTER 2008 RESULTS

DALLAS, TEXAS … August 1, 2008 … CompX International Inc. (NYSE: CIX) announced today sales of $43.7 million for the second quarter of 2008 compared to $45.2 million in the same period of 2007.  Operating income was $4.5 million in the second quarter of 2008 compared to $4.6 million in the same period of 2007.  Net income for the second quarter of 2008 was $2.1 million, or $0.17 per diluted share, compared to $2.6 million, or $0.17 per diluted share, in 2007.

Net sales for the six months ended June 30, 2008 were $84.2 million compared to $88.8 million in the previous year.  Operating income was $8.0 million for the six months ended June 30, 2008 compared to $10.0 million for 2007.  Net income for the six months ended June 30, 2008 was $3.7 million, or $0.30 per diluted share, compared to $5.7 million, or $0.37 per diluted share, in 2007.

Net sales comparisons were unfavorably impacted by lower order rates from many customers across all business segments due to general economic conditions.  Operating income decreased in 2008 as compared to the same periods in 2007 as the unfavorable effects of lower sales volume, the related reduction in coverage of fixed costs and the impact of higher raw material costs more than offset the favorable effects of our ongoing focus on reducing costs.

“We are pleased that sales for our major business segments, Security Products and Furniture Components, during the second quarter of 2008 essentially matched the level experienced in 2007.  Softness by historically strong customers within these segments was offset by focusing on new products and providing higher levels of security for markets susceptible to increased theft in lean times,” commented David A. Bowers, President & CEO.  “However, our smaller segment providing components to the high performance marine market mirrored that industry’s sales drop.  In that area as well, we continue to focus on these relatively recent acquisitions to expand in-house manufacturing capabilities and to design and introduce new products.  We believe these activities throughout our company will serve us well as we work our way through current economic conditions and will prepare us for expansion when the economy improves.”

CompX is a leading manufacturer of security products, furniture components and performance marine components.  It operates from six locations in the U.S., Canada and Taiwan and employs more than 1,000 people.

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 new product development 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.

* * * * *

 

 

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

 	 	Three months ended	 	 	Six months ended	 	
 	 	June 30,	 	 	June 30,	 	
 	 	2007	 	 	2008	 	 	2007	 	 	2008	 	

Net sales	 	$	45.2	 	 	$	43.7	 	 	$	88.8	 	 	$	84.2	 	
Cost of goods sold	 	 	33.3	 	 	 	 32.7	 	 	 	64.8	 	 	 	63.3	 	
Gross margin	 	 	11.9	 	 	 	11.0	 	 	 	24.0	 	 	 	20.9	 	
Selling, general and administrative expense	 	 	6.6	 	 	 	6.5	 	 	 	13.3	 	 	 	12.9	 	
Other operating expense, net	 	 	0.7	 	 	 	-	 	 	 	0.7	 	 	 	-	 	
Operating income	 	 	4.6	 	 	 	4.5	 	 	 	10.0	 	 	 	8.0	 	
Interest expense	 	 	-	 	 	 	(0.5	)	 	 	(0.1	)	 	 	(1.3	)	
Other non-operating income, net	 	 	0.3	 	 	 	-	 	 	 	0.7	 	 	 	 0.2	 	
Income before income taxes	 	 	4.9	 	 	 	4.0	 	 	 	10.6	 	 	 	6.9	 	
Provision for income tax	 	 	2.3	 	 	 	 1.9	 	 	 	4.9	 	 	 	 3.2	 	
Net income	 	$	2.6	 	 	$	2.1	 	 	$	5.7	 	 	$	3.7	 	

Net income per diluted common share	 	$	0.17	 	 	$	0.17	 	 	$	0.37	 	 	$	0.30	 	

Weighted average diluted common shares outstanding	 	 	15.3	 	 	 	 12.4	 	 	 	15.3	 	 	 	12.4	 	

 

 

 

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

 	 	December 31,	 	 	June 30,	 	
 	 	2007	 	 	2008	 	
Assets	 	 	 	 	 	 	
 	 	 	 	 	 	 	
Current assets:	 	 	 	 	 	 	
  Cash and equivalents	 	$	18.4	 	 	$	18.2	 	
  Accounts receivable, net	 	 	20.4	 	 	 	20.2	 	
  Inventories, net	 	 	24.3	 	 	 	25.9	 	
  Deferred income taxes and other	 	 	3.8	 	 	 	4.7	 	
  Note receivable	 	 	1.3	 	 	 	0.9	 	
    Total current assets	 	 	68.2	 	 	 	69.9	 	
 	 	 	 	 	 	 	 	 	
Intangibles	 	 	43.3	 	 	 	43.4	 	
Net property and equipment	 	 	72.2	 	 	 	71.6	 	
Assets held for sale	 	 	3.1	 	 	 	2.8	 	
Other assets	 	 	0.9	 	 	 	0.1	 	
 	 	 	 	 	 	 	 	 	
    Total assets	 	$	187.7	 	 	$	187.8	 	
 	 	 	 	 	 	 	 	 	
Liabilities and Stockholders’ Equity	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	
Current liabilities:	 	 	 	 	 	 	 	 	
  Current maturities of note payable to affiliate	 	$	0.3	 	 	$	0.8	 	
  Accounts payable and accrued liabilities	 	 	17.7	 	 	 	17.9	 	
  Interest payable to affiliate	 	 	0.5	 	 	 	0.5	 	
  Income taxes	 	 	0.4	 	 	 	0.4	 	
    Total current liabilities	 	 	18.9	 	 	 	19.6	 	
 	 	 	 	 	 	 	 	 	
Note payable to affiliate	 	 	49.7	 	 	 	49.2	 	
Deferred income taxes	 	 	15.0	 	 	 	14.4	 	
Stockholders’ equity	 	 	 104.1	 	 	 	 104.6	 	
 	 	 	 	 	 	 	 	 	
    Total liabilities and stockholders’ equity	 	$	187.7	 	 	$	187.8