SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
July 17, 1998
(Date of Report, date of earliest event reported)
COMPX INTERNATIONAL INC.
(Exact name of Registrant as specified in its charter)
Delaware 1-3905 57-0981653
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification
incorporation) No.)
200 Old Mill Road, Mauldin, South Carolina 29662
(Address of principal executive offices) (Zip Code)
(864) 297-6655
(Registrant's telephone number, including area code)
(Former name or address, if changed since last report)
Item 5: Other Events
On July 17, 1998, the registrant, CompX International Inc., issued the
press release attached hereto as Exhibit 99.1, which is incorporated herein by
reference.
Item 7: Financial Statements, Pro Forma Financial Information and Exhibits
(c) Exhibit
Item No. Exhibit Index
---------- ------------------------------------------
99.1 Press release dated July 17, 1998 issued by CompX
International Inc.
SIGNATURES
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/ Bobby D. O'Brien
-----------------------------
Bobby D. O'Brien,
Vice President and Treasurer
Date: July 17, 1998
PRESS RELEASE
FOR IMMEDIATE RELEASE: CONTACT:
CompX International Inc. Joseph S. Compofelice
200 Old Mill Road Chief Executive Officer
Mauldin, South Carolina (281) 423-3303
COMPX REPORTS INCREASED SECOND QUARTER 1998 INCOME
MAULDIN, SOUTH CAROLINA _ July 17, 1998 _ CompX International Inc. (NYSE:
CIX) reported net income for the second quarter of 1998 of $6.1 million, or $.38
per diluted share, compared to net income of $4.2 million, or $.42 per diluted
share, for the second quarter of 1997. The Company reported net income for the
first six months of 1998 of $8.3 million, or $.59 per diluted share, compared to
net income of $7.9 million, or $.79 per diluted share, for the first six months
of 1997. Weighted average shares for the 1998 periods increased significantly
due to the initial public offering completed in March 1998. The Company's
results for the first six months of 1998 include a non-recurring charge of $3.3
million ($2.3 million after tax, or $.17 per diluted share) related to common
stock awarded to key individuals in connection with the Company's initial public
offering. Net sales increased 45% from $27.4 million in the second quarter of
1997 to $39.7 million in the second quarter of 1998, and increased 35% from
$53.3 million in the first six months of 1997 to $71.8 million in the first six
months of 1998.
Operating income in the second quarter of 1998 increased 32% to $9.1
million from $6.9 million in the second quarter of 1997. Excluding the stock
award charge discussed above, operating income in the first six months of 1998
increased to $16.7 million from $13.2 million in the first six months of 1997.
The increase in operating income for the second quarter of 1998 compared to 1997
is due primarily to approximately 20% growth in slides and ergonomic products
and the inclusion of the first full quarter of sales and earnings from the March
1998 acquisition of Fort Lock. Operating margins in each product line improved
in the second quarter of 1998 compared to the second quarter of 1997.
"Fort Lock operations continue to show improvement as we focus our efforts
on integration with our existing locking systems operations and improvement of
operating margins in this business. Product demand continues to be strong,
particularly in our slide products and ergonomic computer support system
products, and we continue to be optimistic regarding the outlook for the
remainder of 1998," said Joseph S. Compofelice, Chairman and Chief Executive
Officer.
CompX is a leading manufacturer of ergonomic computer support systems,
precision ball bearing slides and locking systems.
Statements in this release relating to matters that are not historical
facts are forward-looking statements that involve risks and uncertainties,
including, but not limited to, general economic and political conditions,
demand for office furniture, service industry employment levels, competitive
products and prices and other risks and uncertainties detailed in the Company's
Securities and Exchange Commission filings. Actual results could differ
materially from those forecast or expected. The Company assumes no duty to
publicly update such statements.
*******
COMPX INTERNATIONAL INC.
SUMMARY OF CONSOLIDATED OPERATIONS
(In millions, except per share data)
(Unaudited)
Three months Six months ended
ended June 30, June 30,
1997 1998 1997 1998
Net sales $27.4 $39.7 $53.3 $71.8
Cost of sales 18.1 26.6 35.1 48.0
Selling, general and 2.4 4.0 5.0 10.4
administrative
Operating income 6.9 9.1 13.2 13.4
General corporate income
(expense), net - .6 (0.2) .6
Interest expense - (.1) - (.8)
Income before income taxes 6.9 9.6 13.0 13.2
Income tax expense 2.7 3.6 5.1 5.0
4.2 6.0 7.9 8.2
Minority interest - .1 - .1
Net income $ 4.2 $ 6.1 $ 7.9 $ 8.3
Net income per diluted common $0.42 $0.38 $0.79 $0.59
share
Weighted average diluted
common 10.0 16.2 10.0 14.0
shares outstanding
