SEC Filing Html Data

cix-10q_20210630.htm
false Q2 0001049606 --12-31 0001049606 2021-01-01 2021-06-30 xbrli:shares 0001049606 2021-07-29 iso4217:USD 0001049606 2020-12-31 0001049606 2021-06-30 0001049606 us-gaap:CommonClassAMember 2020-12-31 0001049606 us-gaap:CommonClassAMember 2021-06-30 0001049606 2020-04-01 2020-06-30 0001049606 2021-04-01 2021-06-30 0001049606 2020-01-01 2020-06-30 iso4217:USD xbrli:shares 0001049606 us-gaap:CommonClassAMember 2020-03-31 0001049606 us-gaap:AdditionalPaidInCapitalMember 2020-03-31 0001049606 us-gaap:RetainedEarningsMember 2020-03-31 0001049606 2020-03-31 0001049606 us-gaap:RetainedEarningsMember 2020-04-01 2020-06-30 0001049606 us-gaap:AdditionalPaidInCapitalMember 2020-04-01 2020-06-30 0001049606 us-gaap:CommonClassAMember 2020-06-30 0001049606 us-gaap:AdditionalPaidInCapitalMember 2020-06-30 0001049606 us-gaap:RetainedEarningsMember 2020-06-30 0001049606 2020-06-30 0001049606 us-gaap:CommonClassAMember 2021-03-31 0001049606 us-gaap:AdditionalPaidInCapitalMember 2021-03-31 0001049606 us-gaap:RetainedEarningsMember 2021-03-31 0001049606 2021-03-31 0001049606 us-gaap:RetainedEarningsMember 2021-04-01 2021-06-30 0001049606 us-gaap:AdditionalPaidInCapitalMember 2021-04-01 2021-06-30 0001049606 us-gaap:AdditionalPaidInCapitalMember 2021-06-30 0001049606 us-gaap:RetainedEarningsMember 2021-06-30 0001049606 us-gaap:CommonClassAMember 2019-12-31 0001049606 us-gaap:AdditionalPaidInCapitalMember 2019-12-31 0001049606 us-gaap:RetainedEarningsMember 2019-12-31 0001049606 2019-12-31 0001049606 us-gaap:RetainedEarningsMember 2020-01-01 2020-06-30 0001049606 us-gaap:AdditionalPaidInCapitalMember 2020-01-01 2020-06-30 0001049606 us-gaap:AdditionalPaidInCapitalMember 2020-12-31 0001049606 us-gaap:RetainedEarningsMember 2020-12-31 0001049606 us-gaap:RetainedEarningsMember 2021-01-01 2021-06-30 0001049606 us-gaap:AdditionalPaidInCapitalMember 2021-01-01 2021-06-30 0001049606 us-gaap:TreasuryStockMember 2021-01-01 2021-06-30 xbrli:pure 0001049606 cix:NLIndustriesMember cix:CompXInternationalIncMember 2021-06-30 0001049606 cix:ValhiIncMember cix:NLIndustriesMember 2021-06-30 0001049606 cix:ContranCorporationMember cix:ValhiIncMember 2021-06-30 0001049606 cix:SecurityProductsMember us-gaap:OperatingSegmentsMember 2020-04-01 2020-06-30 0001049606 cix:SecurityProductsMember us-gaap:OperatingSegmentsMember 2021-04-01 2021-06-30 0001049606 cix:SecurityProductsMember us-gaap:OperatingSegmentsMember 2020-01-01 2020-06-30 0001049606 cix:SecurityProductsMember us-gaap:OperatingSegmentsMember 2021-01-01 2021-06-30 0001049606 cix:MarineComponentsMember us-gaap:OperatingSegmentsMember 2020-04-01 2020-06-30 0001049606 cix:MarineComponentsMember us-gaap:OperatingSegmentsMember 2021-04-01 2021-06-30 0001049606 cix:MarineComponentsMember us-gaap:OperatingSegmentsMember 2020-01-01 2020-06-30 0001049606 cix:MarineComponentsMember us-gaap:OperatingSegmentsMember 2021-01-01 2021-06-30 0001049606 us-gaap:CorporateNonSegmentMember 2020-04-01 2020-06-30 0001049606 us-gaap:CorporateNonSegmentMember 2021-04-01 2021-06-30 0001049606 us-gaap:CorporateNonSegmentMember 2020-01-01 2020-06-30 0001049606 us-gaap:CorporateNonSegmentMember 2021-01-01 2021-06-30 0001049606 cix:SecurityProductsMember 2020-12-31 0001049606 cix:SecurityProductsMember 2021-06-30 0001049606 cix:MarineComponentsMember 2020-12-31 0001049606 cix:MarineComponentsMember 2021-06-30 0001049606 2021-01-01 2021-03-31 0001049606 us-gaap:CarryingReportedAmountFairValueDisclosureMember 2020-12-31 0001049606 us-gaap:EstimateOfFairValueFairValueDisclosureMember 2020-12-31 0001049606 us-gaap:CarryingReportedAmountFairValueDisclosureMember 2021-06-30 0001049606 us-gaap:EstimateOfFairValueFairValueDisclosureMember 2021-06-30 0001049606 cix:ValhiIncMember us-gaap:UnsecuredDebtMember 2016-08-31 0001049606 cix:ValhiIncMember us-gaap:UnsecuredDebtMember 2016-08-01 2016-08-31 0001049606 cix:ValhiIncMember us-gaap:UnsecuredDebtMember 2021-06-30 0001049606 cix:ValhiIncMember us-gaap:UnsecuredDebtMember 2020-01-01 2020-06-30 0001049606 cix:ValhiIncMember us-gaap:UnsecuredDebtMember 2021-01-01 2021-06-30

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarter ended June 30, 2021

 

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934

For the transition period from _________ to _________

Commission file number 1-13905

 

COMPX INTERNATIONAL INC.

(Exact name of Registrant as specified in its charter)

 

Delaware

 

57-0981653

(State or other jurisdiction of

Incorporation or organization)

 

(IRS Employer

Identification No.)

 

5430 LBJ Freeway, Suite 1700,

Three Lincoln Centre, Dallas, Texas

 

75240-2620

(Address of principal executive offices)

 

(Zip Code)

Registrant’s telephone number, including area code (972) 448-1400

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Class A common stock

 

CIX

 

NYSE American

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.  

Large accelerated filer      Accelerated filer      Non-accelerated filer     Smaller reporting company  

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.  

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  .

As of July 29, 2021, the registrant had 12,405,657 shares of Class A common stock, $.01 par value per share, outstanding.

 

 

 

 


 

COMPX INTERNATIONAL INC.

Index

 

Part I.

  

FINANCIAL INFORMATION

Page

Item 1.

  

Financial Statements

 

 

 

  

 

Condensed Consolidated Balance Sheets – December 31, 2020 and June 30, 2021 (unaudited)

  - 3 -

 

 

  

 

Condensed Consolidated Statements of Income (unaudited) – Three and six months ended June 30, 2020 and 2021

  - 4 -

 

 

 

Condensed Consolidated Statements of Stockholders’ Equity (unaudited) – Three and six months ended June 30, 2020 and 2021

  - 5 -

 

 

  

 

Condensed Consolidated Statements of Cash Flows (unaudited) – Six months ended June 30, 2020 and 2021

  - 6 -

 

 

  

 

Notes to Condensed Consolidated Financial Statements (unaudited)

  - 7 -

 

Item 2.

  

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

   - 11 -

 

Item 3.

  

 

Quantitative and Qualitative Disclosure About Market Risk

   - 16 -

 

Item 4.

  

 

Controls and Procedures

   - 16 -

 

Part II.

  

 

OTHER INFORMATION

 

 

Item 1A.

  

 

Risk Factors

   - 18 -

 

Item 6.

  

 

Exhibits

   - 18 -

 

Items 2, 3, 4 and 5 of Part II are omitted because there is no information to report.

 

 

 

 

 

 

 

- 2 -


 

 

COMPX INTERNATIONAL INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

 

 

December 31,

 

 

June 30,

 

 

2020

 

 

2021

 

ASSETS

 

 

 

 

(unaudited)

 

Current assets:

 

 

 

 

 

 

 

Cash and cash equivalents

$

70,637

 

 

$

70,374

 

Accounts receivable, net

 

10,731

 

 

 

16,642

 

Inventories, net

 

18,337

 

 

 

19,948

 

Prepaid expenses and other

 

1,541

 

 

 

1,886

 

Total current assets

 

101,246

 

 

 

108,850

 

Other assets:

 

 

 

 

 

 

 

Note receivable from affiliate

 

29,500

 

 

 

26,000

 

Goodwill

 

23,742

 

 

 

23,742

 

Other noncurrent

 

607

 

 

 

598

 

Total other assets

 

53,849

 

 

 

50,340

 

Property and equipment:

 

 

 

 

 

 

 

Land

 

4,940

 

 

 

4,940

 

Buildings

 

23,146

 

 

 

23,146

 

Equipment

 

68,227

 

 

 

69,317

 

Construction in progress

 

1,010

 

 

 

1,246

 

 

 

97,323

 

 

 

98,649

 

Less accumulated depreciation

 

68,373

 

 

 

69,940

 

Net property and equipment

 

28,950

 

 

 

28,709

 

Total assets

$

184,045

 

 

$

187,899

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Accounts payable and accrued liabilities

$

12,198

 

 

$

11,874

 

Income taxes payable to affiliate

 

952

 

 

 

980

 

Total current liabilities

 

13,150

 

 

 

12,854

 

Noncurrent liabilities -

 

 

 

 

 

 

 

Deferred income taxes

 

3,239

 

 

 

3,706

 

Stockholders' equity:

 

 

 

 

 

 

 

Preferred stock

 

 

 

 

 

Class A common stock

 

124

 

 

 

124

 

Additional paid-in capital

 

55,987

 

 

 

55,336

 

Retained earnings

 

111,545

 

 

 

115,879

 

Total stockholders' equity

 

167,656

 

 

 

171,339

 

Total liabilities and stockholders’ equity

$

184,045

 

 

$

187,899

 

 

 

Commitments and contingencies (Note 1)

See accompanying Notes to Condensed Consolidated Financial Statements.

 

- 3 -


 

COMPX INTERNATIONAL INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share data)

 

 

Three months ended

 

 

Six months ended

 

 

June 30,

 

 

June 30,

 

 

2020

 

 

2021

 

 

2020

 

 

2021

 

 

(unaudited)

 

Net sales

$

23,800

 

 

$

36,253

 

 

$

56,111

 

 

$

72,177

 

Cost of sales

 

16,434

 

 

 

24,947

 

 

 

38,314

 

 

 

49,836

 

Gross margin

 

7,366

 

 

 

11,306

 

 

 

17,797

 

 

 

22,341

 

Selling, general and administrative expense

 

4,997

 

 

 

5,548

 

 

 

10,408

 

 

 

10,766

 

Operating income

 

2,369

 

 

 

5,758

 

 

 

7,389

 

 

 

11,575

 

Interest income

 

370

 

 

 

318

 

 

 

977

 

 

 

656

 

Income before income taxes

 

2,739

 

 

 

6,076

 

 

 

8,366

 

 

 

12,231

 

Provision for income taxes

 

674

 

 

 

1,456

 

 

 

2,030

 

 

 

2,926

 

Net income

$

2,065

 

 

$

4,620

 

 

$

6,336

 

 

$

9,305

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted net income per common share

$

0.17

 

 

$

0.37

 

 

$

0.51

 

 

$

0.75

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted weighted average shares outstanding

 

12,446

 

 

 

12,403

 

 

 

12,445

 

 

 

12,423

 

 

 

See accompanying Notes to Condensed Consolidated Financial Statements.

 

 

 

- 4 -


 

COMPX INTERNATIONAL INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(In thousands)

 

 

Three months ended June 30, 2020 and 2021 (unaudited)

 

 

Class A

 

 

Additional

 

 

 

 

 

 

 

 

 

 

Total

 

 

common

 

 

paid-in

 

 

Retained

 

 

Treasury

 

 

stockholders'

 

 

stock

 

 

capital

 

 

earnings

 

 

stock

 

 

equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at March 31, 2020

$

124

 

 

$

55,869

 

 

$

109,229

 

 

$

 

 

$

165,222

 

Net income

 

 

 

 

 

 

 

2,065

 

 

 

 

 

 

2,065

 

Issuance of common stock

 

 

 

 

118

 

 

 

 

 

 

 

 

 

118

 

Cash dividends ($0.10 per share)

 

 

 

 

 

 

 

 

(1,245

)

 

 

 

 

 

(1,245

)

Balance at June 30, 2020

$

124

 

 

$

55,987

 

 

$

110,049

 

 

$

 

 

$

166,160

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at March 31, 2021

$

124

 

 

$

55,232

 

 

$

113,740

 

 

$

 

 

$

169,096

 

Net income

 

 

 

 

 

 

 

4,620

 

 

 

 

 

 

4,620

 

Issuance of common stock

 

 

 

 

104

 

 

 

 

 

 

 

 

 

104

 

Cash dividends ($0.20 per share)

 

 

 

 

 

 

 

(2,481

)

 

 

 

 

 

 

(2,481

)

Balance at June 30, 2021

$

124

 

 

$

55,336

 

 

$

115,879

 

 

$

 

 

$

171,339

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended June 30, 2020 and 2021 (unaudited)

 

 

Class A

 

 

Additional

 

 

 

 

 

 

 

 

 

 

Total

 

 

common

 

 

paid-in

 

 

Retained

 

 

Treasury

 

 

stockholders'

 

 

stock

 

 

capital

 

 

earnings

 

 

stock

 

 

equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2019

$

124

 

 

$

55,869

 

 

$

106,202

 

 

$

 

 

$

162,195

 

Net income

 

 

 

 

 

 

 

6,336

 

 

 

 

 

 

6,336

 

Issuance of common stock

 

 

 

 

118

 

 

 

 

 

 

 

 

 

118

 

Cash dividends ($0.20 per share)

 

 

 

 

 

 

 

(2,489

)

 

 

 

 

 

(2,489

)

Balance at June 30, 2020

$

124

 

 

$

55,987

 

 

$

110,049

 

 

$

 

 

$

166,160

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2020

$

124

 

 

$

55,987

 

 

$

111,545

 

 

$

 

 

$

167,656

 

Net income

 

 

 

 

 

 

 

9,305

 

 

 

 

 

 

9,305

 

Issuance of common stock

 

 

 

 

104

 

 

 

 

 

 

 

 

 

104

 

Cash dividends ($0.40 per share)

 

 

 

 

 

 

 

(4,971

)

 

 

 

 

 

(4,971

)

Treasury stock:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Acquired

 

 

 

 

 

 

 

 

 

 

(755

)

 

 

(755

)

  Retired

 

 

 

 

(755

)

 

 

 

 

 

755

 

 

 

 

Balance at June 30, 2021

$

124

 

 

$

55,336

 

 

$

115,879

 

 

$

-

 

 

$

171,339

 

 

 

 

See accompanying Notes to Condensed Consolidated Financial Statements.

- 5 -


COMPX INTERNATIONAL INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

 

Six months ended

 

 

June 30,

 

 

2020

 

 

2021

 

 

(unaudited)

 

Cash flows from operating activities:

 

 

 

 

 

 

 

Net income

$

6,336

 

 

$

9,305

 

Depreciation and amortization

 

1,912

 

 

 

1,900

 

Deferred income taxes

 

60

 

 

 

467

 

Other, net

 

207

 

 

 

185

 

Change in assets and liabilities:

 

 

 

 

 

 

 

Accounts receivable, net

 

529

 

 

 

(5,910

)

Inventories, net

 

(3,555

)

 

 

(1,691

)

Accounts payable and accrued liabilities

 

(2,415

)

 

 

(393

)

Accounts with affiliates

 

1,674

 

 

 

112

 

Prepaids and other, net

 

197

 

 

 

(414

)

Net cash provided by operating activities

 

4,945

 

 

 

3,561

 

Cash flows from investing activities:

 

 

 

 

 

 

 

Capital expenditures

 

(861

)

 

 

(1,598

)

Note receivable from affiliate:

 

 

 

 

 

 

 

Collections

 

20,628

 

 

 

22,200

 

Advances

 

(23,028

)

 

 

(18,700

)

Net cash provided by (used in) investing activities

 

(3,261

)

 

 

1,902

 

Cash flows from financing activities:

 

 

 

 

 

 

 

Dividends paid

 

(2,489

)

 

 

(4,971

)

Treasury stock acquired

 

 

 

 

(755

)

Net cash used in financing activities

 

(2,489

)

 

 

(5,726

)

Cash and cash equivalents - net change from:

 

 

 

 

 

 

 

Operating, investing and financing activities

 

(805

)

 

 

(263

)

Balance at beginning of period

 

63,255

 

 

 

70,637

 

Balance at end of period

$

62,450

 

 

$

70,374

 

Supplemental disclosures -

 

 

 

 

 

 

 

Cash paid for income taxes

$

850

 

 

$

2,439

 

 

 

See accompanying Notes to Condensed Consolidated Financial Statements.

 

- 6 -


 

COMPX INTERNATIONAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2021

(unaudited)

 

Note 1 – Organization and basis of presentation:

Organization. We (NYSE American: CIX) were approximately 87% owned by NL Industries, Inc. (NYSE: NL) at June 30, 2021. We manufacture and sell component products (security products and recreational marine components). At June 30, 2021, Valhi, Inc. (NYSE: VHI) owned approximately 83% of NL’s outstanding common stock and a wholly-owned subsidiary of Contran Corporation owned approximately 92% of Valhi’s outstanding common stock. A majority of Contran's outstanding voting stock is held directly by Lisa K. Simmons and various family trusts established for the benefit of Ms. Simmons, Thomas C. Connelly (the husband of Ms. Simmons’ late sister) and their children and for which Ms. Simmons or Mr. Connelly, as applicable, serve as trustee (collectively, the “Other Trusts”). With respect to the Other Trusts for which Mr. Connelly serves as trustee, he is required to vote the shares of Contran voting stock held in such trusts in the same manner as Ms. Simmons. Such voting rights of Ms. Simmons last through April 22, 2030 and are personal to Ms. Simmons. The remainder of Contran’s outstanding voting stock is held by another trust (the “Family Trust”), which was established for the benefit of Ms. Simmons and her late sister and their children and for which a third-party financial institution serves as trustee. Consequently, at June 30, 2021 Ms. Simmons and the Family Trust may be deemed to control Contran, and therefore may be deemed to indirectly control the wholly-owned subsidiary of Contran, Valhi, NL and us.  

 

Basis of presentation. Consolidated in this Quarterly Report are the results of CompX International Inc. and its subsidiaries. The unaudited Condensed Consolidated Financial Statements contained in this Quarterly Report have been prepared on the same basis as the audited Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2020 that we filed with the Securities and Exchange Commission (“SEC”) on March 3, 2021 (the “2020 Annual Report”). In our opinion, we have made all necessary adjustments (which include only normal recurring adjustments) in order to state fairly, in all material respects, our consolidated financial position, results of operations and cash flows as of the dates and for the periods presented. We have condensed the Consolidated Balance Sheet at December 31, 2020 contained in this Quarterly Report as compared to our audited Consolidated Financial Statements at that date, and we have omitted certain information and footnote disclosures (including those related to the Consolidated Balance Sheet at December 31, 2020) normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Our results of operations for the interim periods ended June 30, 2021 may not be indicative of our operating results for the full year. The Condensed Consolidated Financial Statements contained in this Quarterly Report should be read in conjunction with our 2020 Consolidated Financial Statements contained in our 2020 Annual Report.  

Our operations are reported on a 52 or 53-week year. For presentation purposes, annual and quarterly information in the Condensed Consolidated Financial Statements and accompanying notes are presented as ended June 30, 2020, December 31, 2020 and June 30, 2021. The actual dates of our annual and quarterly periods are June 28, 2020, January 3, 2021 and July 4, 2021, respectively. Unless otherwise indicated, references in this report to “we”, “us” or “our” refer to CompX International Inc. and its subsidiaries, taken as a whole.

- 7 -


Note 2 – Business segment information:

 

 

Three months ended

 

 

Six months ended

 

 

June 30,

 

 

June 30,

 

 

2020

 

 

2021

 

 

2020

 

 

2021

 

 

(In thousands)

 

Net sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Security Products

$

18,573

 

 

$

27,587

 

 

$

44,042

 

 

$

53,472

 

Marine Components

 

5,227

 

 

 

8,666

 

 

 

12,069

 

 

 

18,705

 

Total net sales

$

23,800

 

 

$

36,253

 

 

$

56,111

 

 

$

72,177

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Security Products

$

3,361

 

 

$

5,845

 

 

$

9,074

 

 

$

11,335

 

Marine Components

 

799

 

 

 

1,598

 

 

 

1,881

 

 

 

3,541

 

Corporate operating expenses

 

(1,791

)

 

 

(1,685

)

 

 

(3,566

)

 

 

(3,301

)

Total operating income

 

2,369

 

 

 

5,758

 

 

 

7,389

 

 

 

11,575

 

Interest income

 

370

 

 

 

318

 

 

 

977

 

 

 

656

 

Income before income taxes

$

2,739

 

 

$

6,076

 

 

$

8,366

 

 

$

12,231

 

 

Intersegment sales are not material.

Note 3 – Accounts receivable, net:

 

 

December 31,

 

 

June 30,

 

 

2020

 

 

2021

 

 

(In thousands)

 

Accounts receivable, net:

 

 

 

 

 

 

 

Security Products

$

8,797

 

 

$

13,731

 

Marine Components

 

2,004

 

 

 

2,981

 

Allowance for doubtful accounts

 

(70

)

 

 

(70

)

Total accounts receivable, net

$

10,731

 

 

$

16,642

 

 

Note 4 – Inventories, net:

 

 

December 31,

 

 

June 30,

 

 

2020

 

 

2021

 

 

(In thousands)

 

Raw materials:

 

 

 

 

 

 

 

Security Products

$

2,318

 

 

$

3,470

 

Marine Components

 

902

 

 

 

940

 

Total raw materials

 

3,220

 

 

 

4,410

 

Work-in-process:

 

 

 

 

 

 

 

Security Products

 

9,214

 

 

 

9,282

 

Marine Components

 

2,454

 

 

 

3,122

 

Total work-in-process

 

11,668

 

 

 

12,404

 

Finished goods:

 

 

 

 

 

 

 

Security Products

 

2,235

 

 

 

1,908

 

Marine Components

 

1,214

 

 

 

1,226

 

Total finished goods

 

3,449

 

 

 

3,134

 

Total inventories, net

$

18,337

 

 

$

19,948

 

 

- 8 -


 

Note 5 – Accounts payable and accrued liabilities:

 

 

December 31,

 

 

June 30,

 

 

2020

 

 

2021

 

 

(In thousands)

 

Accounts payable:

 

 

 

 

 

 

 

Security Products

$

1,859

 

 

$

2,645

 

Marine Components

 

773

 

 

 

1,109

 

Accrued liabilities:

 

 

 

 

 

 

 

Employee benefits

 

8,431

 

 

 

6,806

 

Taxes other than on income

 

301

 

 

 

406

 

Customer tooling

 

393

 

 

 

266

 

Other

 

441

 

 

 

642

 

Total accounts payable and accrued liabilities

$

12,198

 

 

$

11,874

 

 

Note 6 – Provision for income taxes:

 

 

 

Three months ended

 

 

Six months ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2020

 

 

2021

 

 

2020

 

 

2021

 

 

 

(In thousands)

 

Expected tax expense, at the U.S. federal statutory

   income tax rate of 21%

 

$

575

 

 

$

1,276

 

 

$

1,757

 

 

$

2,569

 

State income taxes

 

 

97

 

 

 

200

 

 

 

294

 

 

 

400

 

FDII benefit

 

 

(4

)

 

 

(17

)

 

 

(32

)

 

 

(40

)

Other, net

 

 

6

 

 

 

(3

)

 

 

11

 

 

 

(3

)

Total provision for income taxes

 

$

674

 

 

$

1,456

 

 

$

2,030

 

 

$

2,926

 

 

Note 7 – Stockholders’ equity: