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)
October 29, 2010

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 October 29, 2010, 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 October 29, 2010 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:  October 29, 2010

 

 

INDEX TO EXHIBITS

 
Exhibit No.	Description                                                                                                                                                                 	

99.1	Press Release dated October 29, 2010 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 2010 RESULTS

DALLAS, TEXAS …October 29, 2010 … CompX International Inc. (NYSE: CIX) announced today sales of $35.7 million for the third quarter of 2010 compared to $29.4 million in the same period of 2009.  Operating income was $3.1 million in the third quarter of 2010 compared to an operating loss of $159,000 in the same period in 2009.  Net income for the third quarter of 2010 was $1.7 million, or $0.13 per diluted share, compared to net income of $511,000, or $0.04 per diluted share, in the third quarter of 2009.

For the nine months ended September 30, 2010 sales were $102.9 million compared to $87.1 million in the previous year.  Operating income was $7.8 million for the nine months ended September 30, 2010 compared to an operating loss of $2.0 million for 2009.  Net income for the nine months ended September 30, 2010 was $2.4 million, or $0.20 per diluted share, compared to a net loss of $1.7 million, or $0.13 per diluted share, in 2009.  The 2010 nine month period net income was impacted by a $1.9 million ($0.15 per diluted share) income tax charge in the first quarter of 2010 resulting from a change in the Company’s expectation relating to the repatriation of certain non-U.S. earnings.

Net sales increased principally due to improved order rates from customers across all business segments as a result of a positive change in the economic conditions in North America.  The increase in operating income in the third quarter and nine month periods of 2010 over the comparable 2009 periods is primarily due to the net effects of (i) an increase in contribution from the higher sales, (ii) improved margin percentage due to the higher sales increasing the utilization of production capacity and the coverage of fixed manufacturing costs, (iii) lower litigation expense in 2010 and (iv) the negative effects of relative changes in foreign currency exchange rates in 2010. Additionally, the third quarter of 2010 was negatively impacted by a $500,000 write-down related to assets held for sale.

“We are very pleased with the 22% increase in sales and an improvement in gross margin percentage during the quarter compared to the third quarter of 2009,” commented David A. Bowers, President & CEO.  “We continue to see gains in our gross margin percentage as a result of the positive impact of right sizing our business during the downturn and working to maintain an efficient cost structure as customer demand returns.  While the improvement in demand so far during 2010 has been significant, the future rate of improvement remains uncertain as does the overall economy.  Given this environment, we expect to continue to focus our efforts on gaining market share and maintaining an efficient cost structure.”

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 approximately 800 people.

 
 
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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,	 	
 	 	2009	 	 	2010	 	 	2009	 	 	2010	 	

Net sales	 	$	29.4	 	 	$	35.7	 	 	$	87.1	 	 	$	102.9	 	
Cost of goods sold	 	 	22.4	 	 	 	26.0	 	 	 	69.1	 	 	 	75.3	 	
Gross margin	 	 	7.0	 	 	 	9.7	 	 	 	18.0	 	 	 	27.6	 	
Selling, general and administrative expense	 	 	5.4	 	 	 	5.7	 	 	 	16.5	 	 	 	17.2	 	
Litigation expense	 	 	1.5	 	 	 	0.2	 	 	 	2.5	 	 	 	2.1	 	
Assets held for sale write-downs	 	 	-	 	 	 	0.5	 	 	 	0.7	 	 	 	0.5	 	
Other operating expense, net	 	 	(0.3	)	 	 	(0.2	)	 	 	(0.3	)	 	 	-	 	
Operating income (loss)	 	 	(0.2	)	 	 	3.1	 	 	 	(2.0	)	 	 	7.8	 	
Interest expense	 	 	(0.2	)	 	 	(0.2	)	 	 	(0.9	)	 	 	(0.7	)	
Other non-operating income, net	 	 	-	 	 	 	0.1	 	 	 	-	 	 	 	0.2	 	
Income (loss) before income taxes	 	 	(0.4	)	 	 	3.0	 	 	 	(2.9	)	 	 	7.3	 	
Provision (benefit) for income taxes	 	 	 (0.9	)	 	 	 1.3	 	 	 	 (1.2	)	 	 	 4.9	 	
Net income (loss)	 	$	0.5	 	 	$	1.7	 	 	$	(1.7	)	 	$	2.4	 	

Net income (loss) per diluted common share	 	$	0.04	 	 	$	0.13	 	 	$	(0.13	)	 	$	0.20	 	

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,	 	
 	 	2009	 	 	2010	 	
Assets	 	 	 	 	(Unaudited)	 	
 	 	 	 	 	 	 	
Current assets:	 	 	 	 	 	 	
  Cash and equivalents	 	$	20.8	 	 	$	10.6	 	
  Accounts receivable, net	 	 	11.7	 	 	 	17.6	 	
  Inventories, net	 	 	16.3	 	 	 	18.0	 	
  Deferred income taxes and other	 	 	6.3	 	 	 	4.0	 	
    Total current assets	 	 	55.1	 	 	 	50.2	 	
 	 	 	 	 	 	 	 	 	
Intangibles	 	 	32.4	 	 	 	32.1	 	
Net property and equipment	 	 	63.6	 	 	 	60.1	 	
Promissory note receivable	 	 	-	 	 	 	15.0	 	
Assets held for sale	 	 	2.8	 	 	 	2.3	 	
Other assets	 	 	0.1	 	 	 	0.1	 	
 	 	 	 	 	 	 	 	 	
    Total assets	 	$	154.0	 	 	$	159.8	 	
 	 	 	 	 	 	 	 	 	
Liabilities and Stockholders’ Equity	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	
Current liabilities:	 	 	 	 	 	 	 	 	
  Current maturities of note payable to affiliate	 	$	-	 	 	$	0.8	 	
  Accounts payable and accrued liabilities	 	 	14.6	 	 	 	14.6	 	
  Interest payable to affiliate	 	 	-	 	 	 	0.7	 	
  Income taxes	 	 	-	 	 	 	2.1	 	
    Total current liabilities	 	 	14.6	 	 	 	18.2	 	
 	 	 	 	 	 	 	 	 	
Long-term debt	 	 	42.2	 	 	 	46.5	 	
Deferred income taxes and other	 	 	12.2	 	 	 	11.6	 	
Stockholders’ equity	 	 	 85.0	 	 	 	 83.5	 	
 	 	 	 	 	 	 	 	 	
    Total liabilities and stockholders’ equity	 	$	154.0	 	 	$	159.8	 	

 
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