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)
February 26, 2020
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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◻
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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. ☐
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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 Fourth Quarter 2019 Results” that the registrant issued on February 26, 2020, 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 Announces Increase in Quarterly Dividend” that the registrant also issued on February
26, 2020, 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: February 26, 2020
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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 …February 26, 2020 … CompX International Inc. (NYSE American: CIX) announced today sales of $29.6 million for the fourth quarter of 2019 compared to $27.4 million in the same period of
2018. Operating income was $3.5 million in the fourth quarter of 2019 compared to $2.9 million in the same period of 2018. Net income was $3.2 million, or $0.26 per diluted share, for the fourth quarter of 2019 compared to $2.7 million, or $0.22
per diluted share, in the same period of 2018.
Net sales for the year ended December 31, 2019 were $124.2 million compared to $118.2 million in the previous year. Operating income was $17.7 million for the year ended December 31, 2019 compared to
$17.8 million for 2018. Net income for the year ended December 31, 2019 was $16.0 million, or $1.29 per diluted share, compared to $15.3 million, or $1.23 per diluted share, for the year ended December 31, 2018.
Net sales increased in the fourth quarter of 2019 compared to the same period in 2018 primarily due to higher Security Products sales to the government security market and to a lesser extent higher
Marine Components sales to the towboat market. Operating income increased for the fourth quarter of 2019 compared to the fourth quarter of 2018 primarily due to the benefit of higher sales and a favorable customer and product mix at Security
Products. Net sales increased for the full year of 2019 compared to the respective period in 2018 primarily due to higher Marine Components sales to the towboat market. For the full year of 2019, operating income was comparable to 2018 as the benefit
of higher Marine Component sales and favorable medical costs at Security Products were offset by increased labor rates and associated payroll costs at Security Products resulting from regional pressure on wages for certain skilled labor positions.
CompX is a leading manufacturer of security products and recreational marine components. It operates from three locations in the U.S. and employs approximately 550 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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Our ability to protect or defend our intellectual property rights,
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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 future 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 harm the U.S. economy, disrupt our supply chain, increase material costs
or reduce demand or perceived demand for our products (including changes in the level of gross domestic product in various regions of the world, natural disasters, terrorist acts, global conflicts and public health crises such as the coronavirus); and
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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).
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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.
* * * * *
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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2018
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2019
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2018
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2019
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(Unaudited)
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Net sales
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$
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27.4
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$
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29.6
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$
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118.2
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$
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124.2
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Cost of sales
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19.5
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20.7
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79.9
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85.2
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Gross margin
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7.9
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8.9
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38.3
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39.0
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Selling, general and administrative expense
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5.0
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5.4
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20.5
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21.3
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Operating income
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2.9
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3.5
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17.8
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17.7
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Interest income
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0.8
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0.7
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2.7
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3.2
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Income before taxes
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3.7
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4.2
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20.5
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20.9
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Provision for income taxes
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1.0
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1.0
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5.2
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4.9
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Net income
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$
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2.7
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$
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3.2
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$
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15.3
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$
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16.0
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Basic and diluted net income
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per common share
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$
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0.22
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$
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0.26
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$
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1.23
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$
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1.29
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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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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 . . . February 26, 2020 . . . CompX International Inc. (NYSE American: CIX) announced today a $0.03 per share increase in
its regular quarterly dividend. CompX’s board of directors has declared a regular quarterly dividend of ten cents ($0.10) per share on its class A common stock, payable on March 19, 2020 to stockholders of record at the close of business on March 9,
2020.
CompX is a leading manufacturer of security products and recreational marine components.
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