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DALLAS, TEXAS .October 31, 2018 . CompX International Inc. (NYSE American: CIX) announced today sales of $30.0 million for the third quarter of 2018 compared to $27.0 million in the same period of 2017.  Operating income was $4.5 million in the third quarter of 2018 compared to $3.4 million in the same period in 2017.  Net income for the third quarter of 2018 was $3.9 million, or $0.32 per diluted share, compared to $2.5 million, or $0.20 per diluted share, in the third quarter of 2017.    

For the nine months ended September 30, 2018, sales were $90.8 million compared to $86.9 million in the previous year.  Operating income was $14.9 million for the first nine months of 2018 compared to $12.5 million for 2017.  Net income for the nine months ended September 30, 2018 was $12.7 million, or $1.02 per diluted share, compared to $9.0 million, or $0.72 per diluted share, in 2017. 

Third quarter 2018 net sales increased over the comparable 2017 period primarily due to higher sales of security products across the majority of our markets and continued strong growth in sales of marine components to various marine and industrial markets. Net sales increased for the first nine months of 2018 compared to the same period in 2017 due to higher Marine Components sales volumes, and to a lesser extent Security Products sales across the majority of our markets.  Operating income increased for the third quarter of 2018 compared to the third quarter of 2017 due to improved coverage of fixed costs over increased production volumes.  Operating income increased for the first nine months of 2018 compared to the same period in 2017 due to favorable changes in customer and product mix in Security Products as well as improved manufacturing efficiencies and fixed cost leverage facilitated by higher production volumes for each of our business segments.   

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

The statements in this press release relating to matters that are not historical facts are forward-looking statements that represent management's belief and assumptions based on 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 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 predicted.  While it is not possible to identify all factors, CompX continues to face many risks and uncertainties.  The factors that could cause our actual future results to differ materially include, but are not limited to, the following:

  • Future demand for our products,
  • Changes in our raw material and other operating costs (such as zinc, brass, aluminum, steel and energy costs) and our ability to pass those costs on to our customers or offset them with reductions in other operating costs,
  • Price and product competition from low-cost manufacturing sources (such as China),
  • The impact of pricing and production decisions,
  • Customer and competitor strategies including substitute products,
  • Uncertainties associated with the development of new product features,
  • Future litigation,
  • Potential difficulties in integrating future acquisitions,
  • Decisions to sell operating assets other than in the ordinary course of business,
  • Environmental matters (such as those requiring emission and discharge standards for existing and new facilities),
  • The ultimate outcome of income tax audits, tax settlement initiatives or other tax matters, including tax reform,
  • The impact of current or future government regulations (including employee healthcare benefit related regulations),
  • General global economic and political conditions that introduce instability into the U.S. economy (such as changes in the level of gross domestic product in various regions of the world),
  • Operating interruptions (including, but not limited to labor disputes, hazardous chemical leaks, natural disasters, fires, explosions, unscheduled or unplanned downtime, transportation interruptions and cyber attacks); and
  • Possible disruption of our business or increases in the cost of doing business resulting from terrorist activities or global conflicts.

Should one or more of these risks materialize (or the consequences of such development worsen), or should the underlying assumptions prove incorrect, actual results could differ materially from those currently forecasted or expected.  CompX disclaims any intention or obligation to update or revise any forward-looking statement whether as a result of changes in information, future events or otherwise. 

(In millions, except per share amounts)

  Three months ended   Nine months ended
  September 30,   September 30,
  2017   2018   2017   2018
Net sales  $  27.0    $  30.0    $  86.9    $  90.8
Cost of goods sold   18.8     20.4     59.5     60.5
Gross profit   8.2     9.6     27.4     30.3
Selling, general and administrative expense   4.8     5.1     14.9     15.4
Operating income   3.4     4.5     12.5     14.9
Interest income   0.5     0.7     1.4     1.9
Income before taxes   3.9     5.2     13.9     16.8
Provision for income taxes   1.4     1.3     4.9     4.1
Net income  $  2.5    $  3.9    $  9.0    $  12.7
Basic and diluted net income              
  per common share  $  0.20    $  0.32    $  0.72    $  1.02
Weighted average diluted common               
  shares outstanding   12.4     12.4     12.4     12.4

(In millions)

  December 31,   September 30,
   2017     2018 
Assets     (Unaudited)
Current assets:      
 Cash and equivalents  $  29.7    $  43.7
 Accounts receivable, net   10.4     13.4
 Inventories, net   15.4     17.2
 Prepaid expenses and other   0.9     0.9
 Total current assets   56.4     75.2
Note receivable from affiliate   38.2     33.0
Goodwill   23.7     23.7
Net property and equipment   32.1     31.5
Other noncurrent   0.6     0.6
 Total assets  $  151.0    $  164.0
Liabilities and Stockholders' Equity      
Current liabilities:      
 Accounts payable and accrued liabilities  $  10.8    $  12.0
 Income taxes   0.5     1.2
 Total current liabilities   11.3     13.2
Deferred income taxes   3.1     3.3
Stockholders' equity   136.6     147.5
 Total liabilities and stockholders' equity  $  151.0    $  164.0

SOURCE:  CompX International Inc.
CONTACT:  Janet G. Keckeisen, Investor Relations, 972.233.1700

This announcement is distributed by West Corporation on behalf of West Corporation clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Compx International Inc via Globenewswire