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
April 20, 1999
(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.)
16825 Northchase Drive, Suite 1200, Houston, Texas 77060
(Address of principal executive offices) (Zip Code)
(281) 423-3377
(Registrant's telephone number, including area code)
(Former name or address, if changed since last report)
Item 5: Other Events
On April 20, 1999, 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 April 20, 1999 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/ Andrew Louis
-----------------------------
Andrew Louis,
Secretary
Date: April 20, 1999
PRESS RELEASE
FOR IMMEDIATE RELEASE: CONTACT:
CompX International Inc. Joseph S. Compofelice
16825 Northchase Drive Chief Executive Officer
Houston, Texas 77060 Tel. 281-423-3303
COMPX FIRST QUARTER EARNINGS INCREASE 28%
HOUSTON, TEXAS . . . April 20, 1999 . . . CompX International Inc. (NYSE: CIX)
announced its first quarter 1999 operating results and reported net income of
$5.9 million ($.37 per diluted share) on sales of $55.2 million. Compared to
the first quarter of 1998 adjusted to give effect to the Company's March 1998
initial public offering and to exclude a non-recurring charge for stock awards
as discussed in the following table, net income increased 28%. Net sales for
the first quarter of 1999 increased 72% compared to actual net sales in the
first quarter of 1998.
The increase in net sales for the first quarter of 1999 is principally due to
the inclusion of the results for the full quarter of 1999 of Fort Lock and
Timberline Lock (acquired in March and November of 1998, respectively) and
Thomas Regout (acquired in January 1999). Excluding the effect of these
acquisitions and the stock award charge discussed above, net sales increased 1%
and operating income increased 4% compared to the first quarter of 1998. The 1%
increase in net sales reflects a slowdown in the Company's product sales to the
office furniture industry offset by an 11% increase in net sales for the
Company's security products business unit.
"While the current slowdown in the office furniture industry did have an effect
on our slide and ergonomics results, our expansion through acquisitions into
other industry segments, especially the computer and transportation segments,
more than offset this effect. We currently expect these trends will enable
CompX to report favorable earnings comparisons throughout 1999 and look forward
to enhanced overall growth when the office furniture industry begins to
recover," 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 based on management's belief and assumptions using
currently available information. Although the Company believes the expectations
reflected in such forward-looking statements are reasonable, it cannot ensure
that these expectations will prove to be correct. Such statements involve a
number of 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, potential difficulties in
integrating completed acquisitions, possible disruptions of normal business
activity from Year 2000 issues and other risks and uncertainties detailed in the
Company's Security and Exchange Commission filings. Should one or more of these
risks materialize (or the consequences of such a development worsen), or should
the underlying consequences prove incorrect, actual results could differ
materially from those forecast or expected. The Company assumes no duty to
publicly update such statements.
* * * * * * * *
COMPX INTERNATIONAL INC.
CONDENSED SUMMARY OF CONSOLIDATED OPERATIONS
(In millions, except per share amounts)
(Unaudited)
Three Months Ended
March 31,
Actual Adjusted Actual
1998 1998 (A) 1999
Net sales $ 32.1 $ 32.1 $ 55.2
Operating income $ 4.3 $ 7.6 $ 9.6
Interest expense .7 .5 .4
Other income - - .1
Income before income taxes 3.6 7.1 9.3
Income tax expense 1.4 2.5 3.4
Net income $ 2.2 $ 4.6 $ 5.9
Net income per diluted common
share $ 0.18 $ 0.28 $ 0.37
Weighted average diluted common
shares outstanding 11.8 16.2 16.1
(A)Adjusted to give effect to the Company's March 1998 initial public offering
as if such offering had occurred on January 1, 1998, and to exclude a $3.3
million non-recurring charge ($2.3 million net of tax) for stock awarded to
key individuals in connection with the initial public offering.
