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 18, 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 October 18, 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
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99.1 Press release dated October 18, 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: October 18, 1999
[LOGO GOES HERE]
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PRESS RELEASE
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FOR IMMEDIATE RELEASE: CONTACT:
CompX International Inc. John A. Miller
16825 Northchase Drive Chief Financial Officer
Houston, Texas 77060 Tel. 281-423-3391
COMPX REPORTS INCREASED SALES AND OPERATING INCOME
HOUSTON, TEXAS . . . October 18, 1999 . . . CompX International Inc. (NYSE:
CIX) announced its third quarter 1999 operating results and reported a 44%
increase in sales and an 11% increase in operating income from the same quarter
a year ago. Net sales increased to $55.9 million in the third quarter of 1999
compared to $38.7 million in the third quarter of 1998. Operating income
increased to $9.4 million in the third quarter of 1999 compared to $8.5 million
in the third quarter of 1998. For the first nine months of 1999, net sales
increased 50% to $166.1 million and operating income increased 18% to $28.7
million. The percentage increase in operating income for the first nine months
of 1999 has been adjusted to exclude a $3.3 million non-recurring charge for
stock awarded in connection with the Company's initial public offering in March
1998. Net income in the third quarter of 1999 was $6.1 million, or $.38 per
diluted share, compared to net income of $6.0 million, or $.37 per diluted share
for the same quarter a year ago. The $.37 per share amount for the third quarter
1998 included $.02 per share of net interest income compared to $.01 per share
of net interest expense for the third quarter 1999.
The increase in net sales for the third quarter versus a year ago is due
primarily to the acquisitions of Timberline Lock and Thomas Regout (acquired in
November 1998 and January 1999, respectively) and increased demand for the
Company's office furniture products. Excluding the effect of these acquisitions,
slide and ergonomics net sales increased 13% in the third quarter of 1999 versus
a year ago, and security products net sales increased 3% in the third quarter of
1999 versus a year ago.
"Late in the third quarter of 1999 the U.S. office furniture industry
growth rates began to improve and CompX experienced renewed growth in sales of
our office furniture products. We also continued our trend of sales growth in
non-office furniture industry segments, especially the computer and
transportation industry segments," said Joseph S. Compofelice, Chairman and
Chief Executive Officer. Mr. Compofelice also stated, "While we have yet to
experience any increase in office furniture industry demand in Europe, we are
cautiously optimistic about growth in Europe in 2000."
The previously announced acquisition of the Dynaslide products business of
Yinjoy Corporation and certain of its affiliates, is proceeding on schedule and
is expected to close in November.
CompX is a leading manufacturer of ergonomic computer support systems,
precision ball bearing slides and security
products.
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 give any assurances that these expectations will prove to be correct.
Such statements, by their nature, involve a number of risks and uncertainties
that could significantly impact expected results, and actual future results
could differ materially from those described in such forward-looking statements.
Among the factors that could cause actual future results to differ materially
include, but are not limited to, general economic and political conditions,
demand for office furniture, service industry employment levels, competitive
products and prices, the introduction of tariff or non-tariff barriers,
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 assumptions prove
incorrect, actual results could differ materially from those forecast or
expected. The Company disclaims any duty to publicly update such statements
whether as a result of new information, future events or otherwise.
* * * * * *
COMPX INTERNATIONAL INC. SUMMARY OF CONSOLIDATED OPERATIONS
(In millions, except per share amounts)
(Unaudited)
Three months ended Nine months ended
September 30, September 30,
---------------- ------------------
1998 1999 1998 1999
---- ---- ---- ----
Total net sales $ 38.7 $ 55.9 $ 110.5 $ 166.1
Cost of sales 26.0 40.4 74.0 118.6
Gross profit 12.7 15.5 36.5 47.5
Selling, general and
administrative 4.2 6.1 (A) 15.5 18.8
Operating income 8.5 9.4 21.0 28.7
Interest expense .1 .4 1.0 1.2
Other income, net .8 .5 2.4 .6
Income before income taxes 9.2 9.5 22.4 28.1
Income tax expense 3.3 3.4 8.3 10.1
5.9 6.1 14.1 18.0
Minority interest .1 - .1 .1
Net income $6.0 $6.1 $14.2 $18.1
Net income per diluted
common share $0.37 $0.38 $0.97 $1.12
Weighted average diluted
common shares
outstanding 16.2 16.1 14.7 16.1
(A) Selling, general and administrative expense for the nine months ended
September 30, 1998 includes a $3.3 million ($2.3 million after-tax)
non-recurring charge for stock awarded to key individuals in connection with the
Company's initial public offering. Adjusted to give effect to the Company's
initial public offering as if it had occurred on January 1, 1998 and to exclude
the non-recurring stock award charge discussed above, net income was $16.5
million and net income per diluted common share was $1.02 on 16.2 million shares
outstanding for the nine months ended September 30, 1998.
