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
January 21, 2000
(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 January 21, 2000, 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 January 21, 2000 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: January 21, 2000
[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 . . . January 21, 2000 . . . CompX International Inc. (NYSE:
CIX) announced its fourth quarter 1999 results and reported a 44% increase in
net sales and an 18% increase in operating income from the same quarter a year
ago. Net sales increased to $59.8 million in the fourth quarter of 1999 compared
to $41.6 million in the fourth quarter of 1998. Operating income increased to
$11.3 million in the fourth quarter of 1999 compared to $9.6 million in the
fourth quarter of 1998. For the year ended December 31, 1999, net sales
increased 49% to $225.9 million and operating income increased 18% to $40.1
million. The percentage increase in operating income for the year ended December
31, 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 fourth quarter of 1999 was $7.1 million, or $.44 per
diluted share, compared to net income of $6.5 million, or $.40 per diluted share
for the same quarter a year ago. The $.40 per share amount for the fourth
quarter 1998 included $.02 per share of net interest income compared to an
insignificant amount of net interest expense for the fourth quarter of 1999.
The increase in net sales for the fourth quarter versus a year ago is due
to increased demand for the Company's office furniture products, market share
gains in slide products, and acquisitions. Excluding the effect of acquisitions,
and adjusting for the additional week in the fourth quarter of 1998 under the
Company's 52 or 53 week fiscal year, net sales increased 14% from the fourth
quarter of 1998 with slide and ergonomics net sales increasing 21% and security
products net sales increasing 5%. Compared to the third quarter of 1999, and
excluding the effect of acquisitions, net sales increased 6%.
For the year ended December 31, 1999, excluding the effect of acquisitions
and adjusting for the additional week in 1998 under the Company's 52 or 53 week
fiscal year, slide and ergonomics net sales increased 7% and security products
net sales increased 6% over the year ended December 31, 1998.
"Fourth quarter U.S. office furniture industry growth rates sustained the
gradual improvement begun in the third quarter, and CompX continued its strong
growth in sales and earnings. Sales to non-office furniture segments also
continued to be strong, especially for the computer and transportation industry
segments," said Joseph S. Compofelice, Chairman and Chief Executive Officer. Mr.
Compofelice also stated, "We continue to be cautiously optimistic about growth
in Europe in 2000."
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 substantial risks and uncertainties
that could significantly impact expected results, and actual future results
could differ materially from those described in such forward-looking statements.
While it is not possible to identify all factors, the Company continues to face
many risks and uncertainties. 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 trade barriers, potential difficulties in integrating completed
acquisitions 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 intention or
obligation to publicly update or revise 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 Years ended
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December 31, December 31,
----------------------------- ------------------------------
1998 1999 1998 1999
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Total net sales $41.6 $ 59.8 $ 152.1 $ 225.9
Cost of sales 28.0 42.1 102.0 160.6
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Gross profit 13.6 17.7 50.1 65.3
Selling, general and administrative 4.0 6.4 (A) 19.5 25.2
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Operating income 9.6 11.3 30.6 40.1
Interest expense .1 .3 1.1 1.5
Interest income .7 .2 2.3 .8
Other income (expense) .1 (.1) .7 (.2)
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Income before income taxes 10.3 11.1 32.5 39.2
Income tax expense 3.8 4.0 12.0 14.1
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6.5 7.1 20.5 25.1
Minority interest - - .2 .1
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Net income $6.5 $ 7.1 $20.7 $ 25.2
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Net income per diluted common share $0.40 $0.44 $1.37 $ 1.56
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Weighted average diluted common shares
outstanding 16.2 16.1 15.0 16.1
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(A) Selling, general and administrative expense for the year ended
December 31, 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 $23.0 million and net
income per diluted common share was $1.42 on 16.2 million shares
outstanding for the year ended December 31, 1998.
