COMPX REPORTS SECOND QUARTER 2014 RESULTS
COMPX REPORTS SECOND QUARTER 2014 RESULTS
DALLAS, TEXAS .August 6, 2014 . CompX International Inc. (NYSE MKT: CIX) announced today sales of $26.8 million for the second quarter of 2014 compared to $24.0 million in the same period of 2013. Operating income was $3.9 million in the second quarter of 2014 compared to $2.9 million in the same period in 2013. Net income for the second quarter of 2014 was $2.5 million, or $0.21 per diluted share, compared to $1.8 million, or $0.15 per diluted share, in the second quarter of 2013.
For the six months ended June 30, 2014, sales were $52.6 million compared to $45.5 million in the previous year. Operating income was $7.2 million for the first six months of 2014 compared to $4.3 million for 2013. Net income for the six months ended June 30, 2014 was $4.7 million or $0.38 per diluted share, compared to $2.7 million, or $0.22 per diluted share, in 2013.
Net sales increased in 2014 principally due to strong demand within Security Products including new product sales for an existing government customer, increased market penetration in electronic locks and strong demand in transportation markets. Operating income increased as a result of the positive impact of the higher sales and related improvement in fixed manufacturing cost coverage with increased production volumes, partially offset by higher medical expenses in the second quarter of 2014.
"Second quarter sales continued to outpace our prior year," commented David A. Bowers, President and CEO, "and we are pleased that the year-to-date sales growth of 16% was accompanied by slightly higher gross profit margins. We believe that the combined ability to grow sales and maintain margins reflects the tangible benefit of the diversification and innovation of our product offerings. As seasonal demand in a number of our markets begins to abate, we will continue our focus on maximizing financial results through consistent execution of our lean manufacturing and cost improvement initiatives."
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.
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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 | Six months ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2013 | 2014 | 2013 | 2014 | |||||||||||||
| Net sales | $ | 24.0 | $ | 26.8 | $ | 45.5 | $ | 52.6 | ||||||||
| Cost of goods sold | 16.4 | 18.2 | 31.9 | 36.2 | ||||||||||||
| Gross profit | 7.6 | 8.6 | 13.6 | 16.4 | ||||||||||||
| Selling, general and administrative expense | 4.7 | 4.7 | 9.3 | 9.2 | ||||||||||||
| Operating income/income before taxes | 2.9 | 3.9 | 4.3 | 7.2 | ||||||||||||
| Provision for income taxes | 1.1 | 1.4 | 1.6 | 2.5 | ||||||||||||
| Net income | $ | 1.8 | $ | 2.5 | $ | 2.7 | $ | 4.7 | ||||||||
| Basic and diluted net income | ||||||||||||||||
| per common share | $ | 0.15 | $ | 0.21 | $ | 0.22 | $ | 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, | June 30, | |||||||
| 2013 | 2014 | |||||||
| Assets | (Unaudited) | |||||||
| Current assets: | ||||||||
| Cash and equivalents | $ | 38.8 | $ | 37.6 | ||||
| Accounts receivable, net | 8.5 | 12.2 | ||||||
| Inventories, net | 13.2 | 15.9 | ||||||
| Deferred income taxes and other | 3.1 | 3.0 | ||||||
| Total current assets | 63.6 | 68.7 | ||||||
| Goodwill | 23.7 | 23.7 | ||||||
| Net property and equipment | 33.8 | 33.5 | ||||||
| Other noncurrent | 0.6 | 0.6 | ||||||
| Total assets | $ | 121.7 | $ | 126.5 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued liabilities | $ | 9.7 | $ | 10.9 | ||||
| Income taxes | 0.4 | 0.7 | ||||||
| Total current liabilities | 10.1 | 11.6 | ||||||
| Deferred income taxes | 6.9 | 6.6 | ||||||
| Stockholders' equity | 104.7 | 108.3 | ||||||
| Total liabilities and stockholders' equity | $ | 121.7 | $ | 126.5 | ||||
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SOURCE: COMPX INTERNATIONAL INC.
CONTACT: David A. Bowers, 864 286-1122