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cix1stqrt8k2014.htm

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)

May 7, 2014

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 7, 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.

Item 9.01	Financial Statements and Exhibits.

(d)	Exhibits.


	Item No.	Exhibit Index
	99.1	Press Release dated May 7, 2014 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 7, 2014

INDEX TO EXHIBITS

Exhibit No.	Description
99.1	Press Release dated May 7, 2014 issued by the registrant.

cix1stqrt8k2014exh_99.htm

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 2014 RESULTS

DALLAS, TEXAS … May 7, 2014 … CompX International Inc. (NYSE MKT: CIX) announced today sales of $25.8 million for the first quarter of 2014 compared to $21.5 million in the same period of 2013. Operating income was $3.3 million in the first quarter of 2014 compared to $1.4 million in the same period of 2013. Net income was $2.1 million, or $0.17 per basic and diluted common share, for the first quarter of 2014 compared to $900,000, or $0.07 per basic and diluted common share, in the same period of 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.

“First quarter sales growth of 20% over the prior year is obviously a positive start for the year,” commented David A. Bowers, President and CEO, “and we are very pleased with the performance of our operating teams in response to the increased demand. Not only were they able to meet the significant increase in demand for our products, but did so while successfully translating the increased operating leverage into the improved product margins. Our first quarter results were impacted by one-time projects and seasonal influences for some of our larger customers, and our challenge is to maintain our momentum through expansion of existing customer relationships and continued innovation to develop new applications for our products and services.”

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, the impact of current or future government regulations, the ability to sustain or increase operating income improvement resulting from cost control initiatives, uncertainties associated with the development of new product features, potential difficulties in implementing new manufacturing and accounting 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.

* * * * *

COMPX INTERNATIONAL INC.

SUMMARY OF CONSOLIDATED OPERATIONS

(In millions, except per share amounts)

(Unaudited)

	Three months ended
	March 31,
	2013		2014


Net sales	$	21.4	$	25.8
Cost of goods sold		15.4		18.0
Gross profit		6.0		7.8
Selling, general and administrative expense		4.6		4.5
Operating income/income before taxes		1.4		3.3
Provision for income taxes		0.5		1.2
Net income	$	0.9	$	2.1


Basic and diluted net income per common share	$	0.07	$	0.17

Weighted average diluted common
shares outstanding		12.4		12.4

COMPX INTERNATIONAL INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions)

	December 31,		March 31,
	2013		2014
Assets			(Unaudited)

Current assets:
Cash and equivalents	$	38.8	$	35.0
Accounts receivable, net		8.5		12.7
Inventories, net		13.2		15.1
Deferred income taxes and other		3.1		3.1
Total current assets		63.6		65.9

Goodwill		23.7		23.7
Net property and equipment		33.8		33.6
Other noncurrent		0.6		0.6

Total assets	$	121.7	$	123.8

Liabilities and Stockholders’ Equity

Current liabilities:
Accounts payable and accrued liabilities	$	9.7	$	9.5
Income taxes		0.4		1.2
Total current liabilities		10.1		10.7

Deferred income taxes		6.9		6.8
Stockholders’ equity		104.7		106.3

Total liabilities and stockholders’ equity	$	121.7	$	123.8