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)
October 30, 2019
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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75240-2620
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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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□
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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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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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Securities registered pursuant to Section 12(b) of the Act:
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Title of each class
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Trading
Symbol(s)
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Name of each exchange on which registered
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Class A common stock
($.01 par value per share)
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CIX
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NYSE American
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to
Section 13(a) of the Exchange Act. ☐
| Item 2.02 |
Results of Operations and Financial Condition.
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The registrant hereby furnishes the information set forth in its press release entitled “CompX Reports Third Quarter 2019 Results” that the registrant issued on October 30, 2019, a
copy of which is attached hereto as Exhibit 99.1 and incorporated herein by reference.
The press release the registrant furnishes as Exhibit 99.1 to this current 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 U.S. Securities and Exchange Commission shall not incorporate this information by reference, except as otherwise expressly stated in
such filing.
Item 7.01 Regulation FD Disclosures.
The registrant hereby furnishes the information set forth in its press release entitled “CompX Declares Quarterly Dividend” that the registrant also issued on October 30, 2019, a
copy of which is attached hereto as Exhibit 99.2 and incorporated herein by reference.
The press release the registrant furnishes as Exhibit 99.2 to this current 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 U.S. 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.
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(d)
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Exhibits
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Item No.
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Description
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99.1*
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99.2*
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Filed herewith
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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.
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(Registrant)
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By: /s/ Amy A. Samford
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Date: October 30, 2019
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Amy A. Samford
Vice President and Chief Financial Officer
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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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Janet G. Keckeisen
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5430 LBJ Freeway, Suite 1700
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Investor Relations
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Dallas, Texas 75240
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Tel. 972-233-1700
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DALLAS, TEXAS …October 30, 2019 … CompX International Inc. (NYSE American: CIX) announced today sales of $29.7 million for the third quarter of 2019 compared
to $30.0 million in the same period of 2018. Operating income was $4.3 million for the third quarter of 2019 compared to $4.5 million in the same period of 2018. Net income for each of the third quarters of 2019 and 2018 was $3.9 million. Earnings
per diluted share were $0.31 and $0.32 in the third quarter of 2019 and 2018, respectively.
For the nine months ended September 30, 2019, sales were $94.6 million compared to $90.8 million in the previous year. Operating income was $14.2 million
for the first nine months of 2019 compared to $14.9 million for 2018. Net income for the nine months ended September 30, 2019 was $12.8 million, or $1.03 per diluted share, compared to $12.7 million, or $1.02 per diluted share, in 2018.
Third quarter 2019 net sales decreased over the comparable 2018 period as higher Marine Components sales to the towboat market were more than offset by lower
Security Products sales across a variety of markets. Net sales increased for the first nine months of 2019 compared to the same period in 2018 due to strong sales growth at Marine Components, partially offset by lower Security Products sales
predominantly in the third quarter. Operating income decreased for the third quarter and for the first nine months of 2019 compared to the same periods in 2018 primarily due to lower sales volumes and increased labor rates and associated payroll costs
at our Security Products segment, partially offset by the effect of higher sales volumes at our Marine Components segment.
CompX is a leading manufacturer of security products and recreational marine components. It operates from four locations in the U.S. and employs
approximately 560 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:
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Future demand for our products,
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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,
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Price and product competition from low-cost manufacturing sources (such as China),
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The impact of pricing and production decisions,
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Customer and competitor strategies including substitute products,
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Uncertainties associated with the development of new product features,
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Future litigation,
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Potential difficulties in integrating future acquisitions,
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Decisions to sell operating assets other than in the ordinary course of business,
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Environmental matters (such as those requiring emission and discharge standards for existing and new facilities),
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The ultimate outcome of income tax audits, tax settlement initiatives or other tax matters, including tax reform,
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The impact of current or future government regulations (including employee healthcare benefit related regulations),
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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),
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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
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Possible disruption of our business or increases in the cost of doing business resulting from terrorist activities or global conflicts.
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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.
- 2 -
COMPX INTERNATIONAL INC.
SUMMARY OF CONSOLIDATED OPERATIONS
(In millions, except per share amounts)
(Unaudited)
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Three months ended
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Nine months ended
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September 30,
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September 30,
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2018
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2019
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2018
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2019
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Net sales
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$
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30.0
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$
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29.7
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$
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90.8
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$
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94.6
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Cost of goods sold
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20.4
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20.2
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60.5
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64.6
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Gross profit
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9.6
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9.5
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30.3
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30.0
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Selling, general and administrative expense
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5.1
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5.2
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15.4
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15.8
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Operating income
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4.5
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4.3
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14.9
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14.2
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Interest income
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0.7
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0.8
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1.9
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2.5
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Income before taxes
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5.2
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5.1
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16.8
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16.7
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Provision for income taxes
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1.3
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1.2
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4.1
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3.9
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Net income
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$
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3.9
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$
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3.9
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$
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12.7
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$
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12.8
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Basic and diluted net income
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per common share
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$
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0.32
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$
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0.31
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$
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1.02
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$
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1.03
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Weighted average diluted common
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shares outstanding
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12.4
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12.4
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12.4
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12.4
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- 3 -
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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Janet G. Keckeisen
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Three Lincoln Centre
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Investor Relations
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5430 LBJ Freeway, Suite 1700
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Tel. 972-233-1700
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Dallas, Texas 75240
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DALLAS, TEXAS . . . October 30, 2019 . . . CompX International Inc. (NYSE American: CIX) announced today that its board of directors has declared CompX’s regular quarterly dividend
of seven cents ($0.07) per share on its class A common stock, payable on December 10, 2019 to stockholders of record at the close of business on December 3, 2019.
CompX is a leading manufacturer of security products and recreational marine components.
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