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

May 2, 2007
Date of Report (Date of the earliest event reported)

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 May 2, 2007, 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 May 2, 2007 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: May 2, 2007

INDEX TO EXHIBITS

Exhibit No.  Description                                                                       

99.1	Press Release dated May 2, 2007 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 FIRST QUARTER 2007 RESULTS

Dallas, TEXAS … May 2, 2007 … CompX International Inc. (NYSE: CIX) announced today sales of $43.6 million for the first quarter of 2007 compared to $47.0 million in the same period of 2006. Operating income improved to $5.4 million in the first quarter of 2007 compared to $4.8 million in the same period of 2006. Earnings per share for the first quarter of 2007 were $0.20 compared to $0.16 in the same period of 2006.

Net sales comparisons were negatively impacted by lower sales to the office furniture market partially offset by additional sales volume resulting from the acquisition of a marine components business in April 2006. Despite the lower sales and the effect of increasing raw material costs, operating income improved due to a more favorable product mix and the continued benefit from cost improvement initiatives.

“We are pleased with our ongoing progress in increasing gross margin as we focus on providing products with value-added features to our customers,” commented David A. Bowers, President & CEO. “Compared to the same quarter last year, we improved our Security Products gross margin from 30% to 33% and Furniture Components margin from 20% to 22%. We are especially pleased with the improved margin at our Furniture Components segment which validates our strategy of moving away from high volume, low margin products to higher margin feature-oriented products.”

CompX is a leading manufacturer of security products and furniture components. It operates from eight locations in the U.S., Canada and Taiwan and employs more than 1,100 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	 	
 	 	    March 31,    	 	
 	 	2006	 	2007	 	
 	 	 	 	 	 	
Net sales	 	$	47.0	 	$	43.6	 	
Cost of goods sold	 	 	35.4	 	 	31.5	 	
Gross margin	 	 	11.6	 	 	12.1	 	
Selling, general and administrative	 	 	6.7	 	 	6.7	 	
Other operating expense, net	 	 	0.1	 	 	-	 	
Operating income	 	 	4.8	 	 	5.4	 	
Other non-operating income, net	 	 	0.3	 	 	0.3	 	
Income before income taxes	 	 	5.1	 	 	5.7	 	
Income tax expense	 	 	2.6	 	 	2.7	 	
Net income	 	$	2.5	 	$	3.0	 	
 	 	 	 	 	 	 	 	
Net income per diluted common share	 	$	0.16	 	$	0.20	 	
 	 	 	 	 	 	 	 	
Weighted average diluted common  shares outstanding	 	 	15.2	 	 	15.3	 	

 

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

 	 	December 31,	 	March 31,	 	
Assets	 	  2006  	 	  2007  	 	
 	 	 	 	(Unaudited)	 	
Current assets:	 	 	 	 	 	 	 	
  Cash and equivalents	 	$	29.7	 	$	30.9	 	
  Accounts receivable, net	 	 	20.0	 	 	20.8	 	
  Inventories	 	 	21.7	 	 	23.7	 	
  Deferred income taxes and other	 	 	3.5	 	 	3.4	 	
  Note receivable	 	 	1.3	 	 	1.3	 	
 	 	 	 	 	 	 	 	
    Total current assets	 	 	76.2	 	 	80.1	 	
 	 	 	 	 	 	 	 	
Intangibles	 	 	43.9	 	 	43.7	 	
Net property and equipment	 	 	69.7	 	 	67.9	 	
Other assets	 	 	2.2	 	 	2.2	 	
 	 	 	 	 	 	 	 	
    Total assets	 	$	192.0	 	$	193.9	 	
 	 	 	 	 	 	 	 	
Liabilities and Stockholders’ Equity	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	
Current liabilities:	 	 	 	 	 	 	 	
  Accounts payable and accrued liabilities	 	$	16.8	 	$	16.8	 	
  Income taxes	 	 	1.0	 	 	1.6	 	
 	 	 	 	 	 	 	 	
    Total current liabilities	 	 	17.8	 	 	18.4	 	
 	 	 	 	 	 	 	 	
Deferred income taxes	 	 	20.5	 	 	20.7	 	
Stockholders’ equity	 	 	153.7	 	 	154.8	 	
 	 	 	 	 	 	 	 	
    Total liabilities and stockholders’ equity	 	$	192.0	 	$	193.9