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
October 16, 1998
(Date of Report, date of earliest event reported)
COMPX INTERNATIONAL INC.
(Exact name of Registrant as specified in its charter)
Delaware 1-13905 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 October 16, 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 October 16, 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: October 16, 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 THIRD QUARTER 1998 EARNINGS PER SHARE INCREASE 32%
MAULDIN, SOUTH CAROLINA _ October 16, 1998 _ CompX International Inc.
(NYSE: CIX) reported net income for the third quarter of 1998 of $6.0 million,
or $.37 per diluted share, compared to pro forma net income of $4.5 million, or
$.28 per diluted share, for the third quarter of 1997. The Company reported pro
forma net income for the first nine months of 1998 of $14.8 million, or $.91 per
diluted share, compared to pro forma net income of $13.2 million, or $.81 per
diluted share, for the first nine months of 1997. Pro forma adjustments are
explained in the summary table below. The Company's pro forma results for the
first nine months of 1998 include a non-recurring charge of $3.3 million ($2.3
million after tax, or $.14 per diluted share) related to common stock awarded to
key individuals in connection with the Company's initial public offering. Net
sales increased 12% to $38.7 million in the third quarter of 1998 compared to
pro forma net sales of $34.6 million in the third quarter of 1997, and pro forma
net sales increased 13% from $102.0 million in the first nine months of 1997 to
$115.1 million in the 1998 period.
Operating income in the third quarter of 1998 was $8.7 million compared to
pro forma operating income of $7.8 million in the third quarter of 1997.
Excluding the stock award charge discussed above, pro forma operating income in
the first nine months of 1998 increased 15% to $25.9 million from $22.5 million
in the first nine months of 1997. The increase in pro forma operating income for
the third quarter of 1998 compared to 1997 is due primarily to 18% growth in
slides and ergonomic products. Operating margins in each product line improved
in the third quarter of 1998 compared to the third quarter of 1997.
"We continue to emphasize new product development and expansion of existing
product lines. These efforts combined with strong demand in computer,
institutional and office furniture related markets continue to provide
significant growth opportunities" 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.
PRO FORMA SUMMARY OF CONSOLIDATED OPERATIONS
(IN MILLIONS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
1997* 1998 1997* 1998*
Net sales $34.6 $38.7 $102.0 $115.1
Cost of sales 23.0 26.1 67.7 77.5
Selling, general and
administrative 3.8 3.9 11.8 15.0
Operating income 7.8 8.7 22.5 22.6
General corporate
income (0.2) 0.6 (0.4) 1.2
(expense), net
Interest expense 0.1 0.1 0.3 0.6
Income before income 7.5 9.2 21.8 23.2
taxes
Income tax expense 3.0 3.3 8.7 8.6
4.5 5.9 13.1 14.6
Minority interest - 0.1 0.1 0.2
Net income $ 4.5 $ 6.0 $ 13.2 $ 14.8
Net income per diluted
common share $0.28 $0.37 $ 0.81 $ 0.91
Weighted average
diluted common shares
outstanding 16.2 16.2 16.2 16.2
* Adjusted to give pro forma effect to the Company's March 1998 initial public
offering and Fort Lock acquisition as if such transactions had occurred on
January 1, 1997.
COMPX INTERNATIONAL INC.
CONDENSED SUMMARY OF CONSOLIDATED OPERATIONS
(IN MILLIONS)
ACTUAL
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
1997 1998 1997 1998
Net sales $27.0 $38.7 $80.3 $110.5
Operating income 6.9 8.7 20.1 22.2
Income before income 6.8 9.2 19.7 22.4
taxes
Net income $ 4.1 $ 6.0 $12.0 $ 14.2
