SEC Filing Html Data
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)
March 5, 2014
CompX International Inc.
(Exact name of registrant as specified in its charter)
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Delaware
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1-13905
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57-0981653
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(State or other jurisdiction of incorporation)
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(Commission
File Number)
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(IRS Employer
Identification No.)
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5430 LBJ Freeway, Suite 1700, Dallas, Texas
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75240-2697
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(Address of principal executive offices)
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(Zip Code)
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Registrant’s telephone number, including area code
(972) 448-1400
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(Former name or former address, if changed since last report.)
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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):
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o
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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¨
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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¨
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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¨
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Item 2.02
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Results of Operations and Financial Condition.
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Item 7.01
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Regulation FD Disclosure.
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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 March 5, 2014, 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.
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Item 9.01
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Financial Statements and Exhibits.
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(d)
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Exhibits.
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Item No.
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Exhibit Index
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99.1
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Press Release dated March 5, 2014 issued by the registrant.
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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.
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COMPX INTERNATIONAL INC.
(Registrant)
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By: /s/ A. Andrew R. Louis
A. Andrew R. Louis
Secretary
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Date: March 6, 2014
INDEX TO EXHIBITS
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Exhibit No.
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Description
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99.1
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Press Release dated March 5, 2014 issued by the registrant.
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PRESS RELEASE
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FOR IMMEDIATE RELEASE:
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CONTACT:
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CompX International Inc.
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David A. Bowers
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5430 LBJ Freeway, Suite 1700
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President & CEO
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Dallas, Texas 75240
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Tel. 864-286-1122
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COMPX REPORTS FOURTH QUARTER 2013 RESULTS
DALLAS, TEXAS …March 5, 2014 … CompX International Inc. (NYSE MKT: CIX) announced today sales of $22.3 million for the fourth quarter of 2013 compared to $19.3 million in the same period of 2012. Operating income was $2.0 million in the fourth quarter of 2013 compared to nil in the same period in 2012. Income from continuing operations after tax was $1.3 million, or $0.11 per diluted share, for the fourth quarter of 2013 compared to $600,000, or $0.05 per diluted share, in the same period of 2012.
Net sales for the year ended December 31, 2013 were $92.0 million compared to $83.2 million in the previous year. Operating income was $9.3 million for the year ended December 31, 2013 compared to $5.4 million for 2012. Income from continuing operations after tax was $6.0 million, or $0.49 per diluted share, for the year ended December 31, 2013 compared to $3.5 million, or $0.28 per diluted share, for the year ended December 31, 2012.
Net sales increased for both the fourth quarter and full year of 2013 primarily due to a higher demand for high security pin tumbler locks within the Security Products segment, and to a lesser extent from an increase in Marine Component sales as a result of penetration into new markets outside of the high performance boat market. Operating income increased for the fourth quarter of 2013 primarily due to the net effects of:
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Higher demand for our Security Product segment’s high security pin tumbler locks in the fourth quarter of 2013;
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The loss on the sale of an asset held for sale in the fourth quarter of 2012 of approximately $757,000; and
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The negative impact of an increase in self-insured medical expenses in the fourth quarter of 2013 of approximately $325,000.
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Operating income increased for the year ended December 31, 2013 compared to the same period in 2012 primarily due to the net effects of:
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Higher demand for our Security Product segment’s high security pin tumbler locks in 2013;
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The write-down and loss on the sale of assets held for sale in 2012 aggregating approximately $1.2 million; and
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The negative impact of an increase in self-insured medical expenses in 2013 of approximately $598,000.
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“We are pleased with our overall sales growth as a result of our continuous efforts to provide market leading quality products and customer service to an increasingly diversified customer base,” commented David A. Bowers, President & CEO. “The efficient management of our cost structure combined with our sales growth contributed significantly to the improvement in our operating income. Looking forward to 2014, while we anticipate that the market may continue to be influenced by ongoing economic uncertainty, we will continue to focus on prudent management of costs and a diligent attention to meeting customer needs through product innovation, quality and service.”
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
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, competitive products and prices, uncertainties associated with the development of new product features, potential difficulties in integrating future acquisitions, the ability to sustain or increase operating income improvement resulting from cost control initiatives, the impact of employee healthcare benefit related regulations, potential difficulties with implementing new enterprise wide software, 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 CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share amounts)
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Three months ended
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Year ended
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December 31,
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December 31,
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2012
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2013
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2012
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2013
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(Unaudited)
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Net sales
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$ | 19.3 | $ | 22.3 | $ | 83.2 | $ | 92.0 | ||||||||
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Cost of goods sold
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13.8 | 15.9 | 58.9 | 64.5 | ||||||||||||
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Gross profit
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5.5 | 6.4 | 24.3 | 27.5 | ||||||||||||
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Selling, general and administrative expense
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4.7 | 4.4 | 17.7 | 18.2 | ||||||||||||
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Write-down and loss on disposal of
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assets held for sale
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0.8 | - | 1.2 | - | ||||||||||||
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Operating income
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- | 2.0 | 5.4 | 9.3 | ||||||||||||
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Other non-operating expenses, net
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(0.1 | ) | - | (0.5 | ) | (0.1 | ) | |||||||||
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Income from continuing operations
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before taxes
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(0.1 | ) | 2.0 | 4.9 | 9.2 | |||||||||||
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Provision (benefit) for income taxes
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(0.7 | ) | 0.7 | 1.4 | 3.2 | |||||||||||
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Income from continuing operations
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0.6 | 1.3 | 3.5 | 6.0 | ||||||||||||
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Discontinued operations, net of tax:
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Income from operations
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0.5 | - | 3.8 | - | ||||||||||||
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Gain on disposal of discontinued operations
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27.6 | - | 27.6 | - | ||||||||||||
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Net income
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$ | 28.7 | $ | 1.3 | $ | 34.9 | $ | 6.0 | ||||||||
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Net income per diluted common share:
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Continuing operations
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$ | 0.05 | $ | 0.11 | $ | 0.28 | $ | 0.49 | ||||||||
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Discontinued operations:
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Income from operations
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0.04 | - | 0.31 | - | ||||||||||||
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Gain on disposal of discontinued operations
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2.23 | - | 2.23 | - | ||||||||||||
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Net income
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$ | 2.32 | $ | 0.11 | $ | 2.82 | $ | 0.49 | ||||||||
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Weighted average diluted common
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shares outstanding
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12.4 | 12.4 | 12.4 | 12.4 | ||||||||||||
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COMPX INTERNATIONAL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
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December 31,
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December 31,
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2012
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2013
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Assets
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Current assets:
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Cash and equivalents
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$ | 63.8 | $ | 38.8 | ||||
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Accounts receivable, net
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8.5 | 8.5 | ||||||
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Inventories, net
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11.2 | 13.2 | ||||||
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Deferred income taxes and other
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7.1 | 3.1 | ||||||
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Total current assets
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90.6 | 63.6 | ||||||
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Goodwill
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23.7 | 23.7 | ||||||
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Net property and equipment
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33.7 | 33.8 | ||||||
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Other noncurrent assets
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2.2 | 0.6 | ||||||
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Total assets
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$ | 150.2 | $ | 121.7 | ||||
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Liabilities and Stockholders’ Equity
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Current liabilities:
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Current maturities of long-term debt
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$ | 1.0 | $ | - | ||||
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Accounts payable and accrued liabilities
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11.1 | 9.7 | ||||||
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Income taxes
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12.2 | 0.4 | ||||||
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Other
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0.1 | - | ||||||
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Total current liabilities
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24.4 | 10.1 | ||||||
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Long-term debt
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17.5 | - | ||||||
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Deferred income taxes
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6.2 | 6.9 | ||||||
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Stockholders’ equity
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102.1 | 104.7 | ||||||
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Total liabilities and stockholders’ equity
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$ | 150.2 | $ | 121.7 | ||||
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