SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended September 30, 2000 Commission file number 1-13905
------------------ -------
COMPX INTERNATIONAL INC.
- --------------------------------------------------------------------------------
(Exact name of Registrant as specified in its charter)
Delaware 57-0981653
- ------------------------------- -----------------------
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
5430 LBJ Freeway, Suite 1700, Dallas, Texas 75240-2697
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (972) 233-1700
--------------
Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months and (2) has been subject to such filing requirements for
the past 90 days. Yes X No
Number of shares of Class A common stock outstanding on November 10, 2000:
5,965,080.
COMPX INTERNATIONAL INC. AND SUBSIDIARIES
INDEX
Page
number
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements.
Consolidated Balance Sheets - December 31, 1999
and September 30, 2000 3-4
Consolidated Statements of Income -
Three months and nine months ended
September 30, 1999 and 2000 5
Consolidated Statements of Comprehensive Income -
Three months and nine months ended
September 30, 1999 and 2000 6
Consolidated Statements of Cash Flows -
Nine months ended September 30, 1999 and 2000 7-8
Consolidated Statement of Stockholders' Equity -
Nine months ended September 30, 2000 9
Notes to Consolidated Financial Statements 10-13
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations. 14-17
Part II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K. 18
COMPX INTERNATIONAL INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
ASSETS December 31, September 30,
1999 2000
------ ------
Current assets:
Cash and cash equivalents ........................ $ 12,169 $ 10,501
Accounts receivable .............................. 29,053 32,062
Income taxes receivable from affiliates .......... 22 218
Refundable income taxes .......................... 462 900
Inventories ...................................... 27,659 35,635
Prepaid expenses and other ....................... 1,858 2,106
Deferred income taxes ............................ 1,258 969
-------- --------
Total current assets ......................... 72,481 82,391
-------- --------
Other assets:
Goodwill ......................................... 41,697 40,516
Other intangible assets .......................... 2,787 2,701
Deferred income taxes ............................ 2,499 2,163
Other ............................................ 203 939
-------- --------
Total other assets ........................... 47,186 46,319
-------- --------
Property and equipment:
Land ............................................. 3,549 5,793
Buildings ........................................ 27,898 32,168
Equipment ........................................ 70,242 69,843
Construction in progress ......................... 6,710 13,849
-------- --------
108,399 121,653
Less accumulated depreciation .................... 25,154 30,905
-------- --------
Net property and equipment ................... 83,245 90,748
-------- --------
$202,912 $219,458
======== ========
See accompanying notes to consolidated financial statements.
COMPX INTERNATIONAL INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (CONTINUED)
(In thousands)
LIABILITIES AND STOCKHOLDERS' EQUITY December 31, September 30,
1999 2000
---- ----
Current liabilities:
Current maturities of long-term debt ........... $ 1,367 $ 434
Accounts payable and accrued liabilities ....... 25,389 23,670
Income taxes ................................... 91 1,882
--------- ---------
Total current liabilities .................. 26,847 25,986
--------- ---------
Noncurrent liabilities:
Long-term debt ................................. 20,900 31,066
Deferred income taxes .......................... 3,223 2,759
Accrued pension costs .......................... 1,209 1,255
Other .......................................... 1,274 1,056
--------- ---------
Total noncurrent liabilities ............... 26,606 36,136
--------- ---------
Minority interest ................................ 103 --
--------- ---------
Stockholders' equity:
Preferred stock ................................ -- --
Class A common stock ........................... 61 62
Class B common stock ........................... 100 100
Additional paid-in capital ..................... 118,067 119,139
Retained earnings .............................. 37,415 50,514
Accumulated other comprehensive income
--------- ---------
- currency translation ........................ (6,287) (12,479)
--------- ---------
Total stockholders' equity ................. 149,356 157,336
--------- ---------
$ 202,912 $ 219,458
========= =========
Commitments and contingencies (Note 1)
COMPX INTERNATIONAL INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
Three months ended Nine months ended
September 30, September 30,
---------------- --------------
1999 2000 1999 2000
------ ------ ------ ------
Net sales .......................................... $ 55,941 $ 63,045 $ 166,114 $ 194,248
-------- --------- --------- ---------
Costs and expenses:
Cost of sales ..................................... 40,412 47,129 118,558 142,268
Selling, general and administrative ............... 6,121 6,784 18,821 20,616
Other income, net ................................. (471) (163) (626) (451)
Interest expense .................................. 400 573 1,236 1,643
-------- --------- --------- ---------
46,462 54,323 137,989 164,076
-------- --------- --------- ---------
Income before income taxes
and minority interest ........................ 9,479 8,722 28,125 30,172
Provision for income taxes ......................... 3,413 3,185 10,124 11,012
-------- --------- --------- ---------
Income before minority interest ................ 6,066 5,537 18,001 19,160
Minority interest .................................. (28) -- (94) (3)
-------- --------- --------- ---------
Net income ..................................... $ 6,094 $ 5,537 $ 18,095 $ 19,163
======== ========= ========= =========
Basic earnings per common share .................... $ .38 $ .34 $ 1.12 $ 1.19
======== ========= ========= =========
Diluted earnings per common share .................. $ .38 $ .34 $ 1.12 $ 1.18
======== ========= ========= =========
Cash dividends per share ........................... $ -- $ .125 $ -- $ .375
======== ========= ========= =========
Shares used in the calculation of per share amounts:
Basic earnings per common share ................. 16,147 16,187 16,146 16,162
Dilutive impact of outstanding
stock options .................................. 1 87 -- 42
-------- --------- --------- ---------
Diluted earnings per common share ............... 16,148 16,274 16,146 16,204
======== ========= ========= =========
COMPX INTERNATIONAL INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands)
Three months ended Nine months ended
September 30, September 30,
----------------- ----------------
1999 2000 1999 2000
---- ---- ---- ----
Net income ......................... $6,094 $ 5,537 $ 18,095 $ 19,163
Other comprehensive income -
currency translation adjustment,
net of tax ....................... 1,008 (2,795) (3,199) (6,192)
------ ------- -------- --------
Comprehensive income ......... $7,102 $ 2,742 $ 14,896 $ 12,971
====== ======= ======== ========
COMPX INTERNATIONAL INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Nine months ended September 30, 1999 and 2000
(In thousands)
1999 2000
---- ----
Cash flows from operating activities:
Net income ....................................... $ 18,095 $ 19,163
Depreciation and amortization .................... 6,899 9,231
Deferred income taxes ............................ (170) (244)
Other, net ....................................... (188) (619)
-------- --------
24,636 27,531
Change in assets and liabilities:
Accounts receivable ............................ (3,201) (2,085)
Inventories .................................... 310 (4,649)
Accounts payable and accrued liabilities ....... (4,624) (1,636)
Accounts with affiliates ....................... 440 (198)
Income taxes ................................... (1,963) 1,499
Other, net ..................................... 1,001 (892)
-------- --------
Net cash provided by operating activities .... 16,599 19,570
-------- --------
Cash flows from investing activities:
Capital expenditures ............................. (12,653) (16,722)
Purchase of business units ....................... (53,121) (9,497)
Other, net ....................................... (2,404) 309
-------- --------
Net cash used by investing activities ........ (68,178) (25,910)
-------- --------
Cash flows from financing activities:
Indebtedness:
Additions ..................................... 20,000 13,081
Principal payments ............................ (886) (2,754)
Dividends ........................................ -- (6,064)
Issuance of common stock ......................... -- 1,073
-------- --------
Net cash provided by financing activities .... 19,114 5,336
-------- --------
Net decrease in cash and cash equivalents .......... $(32,465) $ (1,004)
======== ========
COMPX INTERNATIONAL INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
Nine months ended September 30, 1999 and 2000
(In thousands)
1999 2000
---- ----
Cash and cash equivalents:
Net change from operating, investing
and financing activities ............................ $(32,465) $ (1,004)
Business units acquired .............................. 4,157 --
Currency translation ................................. (549) (664)
-------- --------
(28,857) (1,668)
Balance at beginning of period ....................... 47,363 12,169
-------- --------
Balance at end of period ............................. $ 18,506 $ 10,501
======== ========
Supplemental disclosures:
Cash paid for:
Interest ........................................... $ 817 $ 1,592
Income taxes ....................................... 12,954 10,298
Business units acquired - net assets consolidated:
Cash and cash equivalents .......................... $ 4,157 --
Goodwill and other intangible assets ............... 15,837 2,561
Other non-cash assets .............................. 52,799 8,458
Liabilities ........................................ (19,672) (1,522)
-------- --------
Cash paid .......................................... $ 53,121 $ 9,497
======== ========
COMPX INTERNATIONAL INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
Nine months ended September 30, 2000
(In thousands)
Accumulated
other
comprehensive
Additional income - Total
Common Stock paid-in Retained currency stockholders'
Class A Class B capital earnings translation equity
Balance at December 31, 1999 .. $61 $100 $118,067 $ 37,415 $ (6,287) $ 149,356
Net income .................... -- -- -- 19,163 -- 19,163
Other comprehensive income, net -- -- -- -- (6,192) (6,192)
Issuance of common stock ...... 1 -- 1,072 -- -- 1,073
Cash dividends ................ -- -- -- (6,064) -- (6,064)
--- ---- -------- -------- -------- ---------
Balance at September 30, 2000 . $62 $100 $119,139 $ 50,514 $(12,479) $ 157,336
=== ==== ======== ======== ======== =========
COMPX INTERNATIONAL INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1 - Basis of presentation:
The consolidated balance sheet of CompX International Inc. and
subsidiaries (collectively, the "Company") at December 31, 1999 has been
condensed from the Company's audited consolidated financial statements at that
date. The consolidated balance sheet at September 30, 2000 and the consolidated
statements of income, comprehensive income, stockholders' equity and cash flows
for the interim periods ended September 30, 1999 and 2000 have been prepared by
the Company, without audit. In the opinion of management, all adjustments,
consisting only of normal recurring adjustments, necessary to present fairly the
consolidated financial position, results of operations and cash flows have been
made. The results of operations for the interim periods are not necessarily
indicative of the operating results for a full year or of future operations.
Certain information normally included in financial statements prepared in
accordance with generally accepted accounting principles has been condensed or
omitted. The accompanying consolidated financial statements should be read in
conjunction with the Company's Annual Report on Form 10-K for the year ended
December 31, 1999 (the "1999 Annual Report").
Basic earnings per share of common stock is based upon the weighted
average number of common shares actually outstanding during each period. Diluted
earnings per share of common stock includes the impact of outstanding dilutive
stock options.
Commitments and contingencies are discussed in "Management's Discussion
and Analysis of Financial Condition and Results of Operations" and the 1999
Annual Report.
The Company is 64% owned by Valhi, Inc. (NYSE: VHI) and Valhi's
wholly-owned subsidiary Valcor, Inc. Contran Corporation holds, directly or
through subsidiaries, approximately 93% of Valhi's outstanding common stock.
Substantially all of Contran's outstanding voting stock is held either by trusts
established for the benefit of certain children and grandchildren of Harold C.
Simmons, of which Mr. Simmons is sole trustee, or by Mr. Simmons directly. Mr.
Simmons, the Chairman of the Board and Chief Executive Officer of each of
Contran, Valhi and Valcor, may be deemed to control such companies and the
Company.
The Company will adopt Statement of Financial Accounting Standards
("SFAS") No. 133 is currently not expected to be significant. As permitted by
the transition requirements of SFAS No. 133, as amended, the Company will exempt
from the scope of SFAS No. 133 all host contracts containing embedded
derivatives which were issued or acquired prior to January 1, 1999.
The Company will adopt the Securities and Exchange Commission's Staff
Accounting Bulletin ("SAB") No. 101, Revenue Recognition, as amended, in the
fourth quarter of 2000. SAB No. 101 provides guidance on the recognition,
presentation and disclosure of revenue, including specifying basic criteria
which must be met before revenue can be recognized. The impact on the Company of
adopting SAB No. 101 has not been determined, in part because the Company is
studying additional guidance on SAB No. 101 recently issued by the SEC. If the
impact of adopting SAB No. 101 is material, the Company will adopt SAB No. 101
retroactively to the beginning of 2000, and previously-reported results of
operations for the first three quarters of 2000 would be restated.
Note 2 - Business segment information:
The Company operates in one business segment - the manufacture and sale
of hardware components for office furniture and other markets. The Company's
products consist of ergonomic computer support systems, precision ball bearing
slides, and security products.
Three months ended Nine months ended
September 30, September 30,
1999 2000 1999 2000
---- ---- ---- ----
(In thousands)
Net sales ................ $ 55,941 $ 63,045 $ 166,114 $ 194,248
======== ======== ========= =========
Operating income ......... $ 9,408 $ 9,132 $ 28,735 $ 31,364
Interest expense ......... (400) (573) (1,236) (1,643)
Other, net ............... 471 163 626 451
-------- -------- --------- ---------
Income before
income taxes ............ $ 9,479 $ 8,722 $ 28,125 $ 30,172
======== ======== ========= =========
Note 3 - Inventories:
December 31, September 30,
1999 2000
---- ----
(In thousands)
Raw materials ............................ $ 9,038 $11,566
Work in process .......................... 8,669 11,790
Finished products ........................ 9,898 12,149
Supplies ................................. 54 130
------- -------
$27,659 $35,635
======= =======
Note 4 - Accounts payable and accrued liabilities:
December 31, September 30,
1999 2000
---- ----
(In thousands)
Accounts payable $ 9,850 $11,384
Accrued liabilities:
Employee benefits ........................ 7,746 7,547
Insurance ................................ 707 360
Royalties ................................ 504 400
Other .................................... 6,582 3,979
------- -------
$25,389 $23,670
======= =======
Note 5 - Indebtedness:
December 31, September 30,
1999 2000
---- ----
(In thousands)
Revolving bank credit facility ................... $20,000 $31,000
Capital lease obligations and other .............. 2,267 500
------- -------
22,267 31,500
Less current maturities .......................... 1,367 434
------- -------
$20,900 $31,066
======= =======
Note 6 - Other income:
Three months ended Nine months ended
September 30, September 30,
----------------- -------------
1999 2000 1999 2000
------- ------ ------- ------
(In thousands)
Interest income .......................... $196 $ 153 $ 616 $ 438
Foreign currency transactions, net ....... 180 18 (231) (29)
Other, net ............................... 95 (8) 241 42
---- ----- ----- -----
$471 $ 163 $ 626 $ 451
==== ===== ===== =====
Note 7 - Provision for income taxes:
Three months ended Nine months ended
September 30, September 30,
----------------- -------------
1999 2000 1999 2000
------- ------ ------ ------
(In thousands)
Expected tax expense ............. $ 3,319 $ 3,053 $ 9,844 $ 10,560
Non-U.S. tax rates ............... 159 (139) 274 (55)
No tax benefit for amortization of
goodwill ........................ 147 204 425 515
Other, net ....................... (212) 67 (419) (8)
------- -------- -------- --------
$ 3,413 $ 3,185 $ 10,124 $ 11,012
======= ======== ======== ========
Note 8 - Acquisitions:
In January 2000, the Company acquired substantially all of the
operating assets of Chicago Lock Company for approximately $9.4 million in cash.
The purchase price has been allocated to the individual assets acquired and
liabilities assumed based upon preliminary estimated fair values. The actual
allocation may be different from the preliminary allocation due to refinements
in the estimates of the fair values of the net assets acquired. CompX used
borrowings under its existing credit facility to pay the cash purchase price.
The pro forma effect of this acquisition is not material.
Note 9 - Foreign currency forward contracts:
Certain of the Company's sales generated by its Canadian operations are
denominated in U.S. dollars. The Company periodically uses currency forward
contracts to manage a portion of foreign exchange rate risk associated with such
receivables, or similar exchange rate risk associated with future sales,
denominated in a currency other than the holder's functional currency. At each
balance sheet date, outstanding currency forward contracts are marked-to-market
with any resulting gain or loss recognized in income currently. At September 30,
2000, the Company held such forward exchange contracts to exchange an aggregate
of $18.2 million for an equivalent amount of Canadian dollars at exchange rates
between Cdn. $1.4622 and Cdn. $1.4816. Such contracts mature through March 2001.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
- -------------------------------------------------------------------------------
Overview
The Company reported net income of $5.5 million, or $.34 per diluted
share, in the third quarter of 2000, a decrease of 9% over net income of $6.1
million, or $.38 per diluted share, for the third quarter of 1999. Net income
for the third quarter and first nine months of 2000 includes a pre-tax charge of
$1.5 million representing higher than expected manufacturing costs at the
Company's Grand Rapids, Michigan facility. The Company reported net income of
$19.2 million in the first nine months of 2000, a 6% increase over net income of
$18.1 million in the first nine months of 1999. In January 2000, the Company
acquired substantially all the operating assets of Chicago Lock Company. The
purchase price of approximately $9.4 million in cash includes substantially all
of Chicago Lock's operating assets, excluding real estate.
Results of Operations
Net sales. Net sales increased $7.1 million, or 13%, to $63.0 million
in the third quarter of 2000 from $55.9 million in the third quarter of 1999.
For the first nine months of 2000, net sales of $194.2 million increased 17%
compared to net sales of $166.1 million for the first nine months of 1999. The
increases are due in part to acquisitions. Compared to the same periods of 1999,
precision ball bearing slide sales increased 25% in the third quarter of 2000
and 24% in the first nine months of 2000. Security products sales for the third
quarter and the first nine months of 2000 increased 10% and 18%, respectively,
over the comparable periods of 1999. For the first nine months of 2000, sales of
ergonomic products were comparable to the first nine months of 1999, and were
down 10% for the third quarter of 2000 compared to the third quarter of 1999.
Overall net sales, exclusive of acquisitions, increased nominally in
the third quarter of 2000 compared to the third quarter of 1999. Excluding the
effect of acquisitions, sales of slides during this period increased 11%, while
net sales of ergonomics and security products decreased 10% and 9%,
respectively. For the nine month period ended September 30, 2000, overall net
sales, exclusive of acquisitions, increased 5% over the corresponding period of
the prior year. Net sales of slides provided the majority of the change,
increasing 12%, while net sales of ergonomics and security products declined 2%
and 3%, respectively. The increase in slide sales is due to market share gains
and increased demand for the Company's precision ball-bearing slide products.
Ergonomic and security products sales declined due to losses of market share for
the Company's ergonomic products and slower lock sales to the computer and
related products industry sector.
CompX has substantial operations and assets located outside the United
States (principally Canada, the Netherlands and Taiwan). A portion of the sales
and the majority of the operating costs generated from the Company's non-U.S.
operations are denominated in currencies other than the U.S. dollar, principally
the Canadian dollar and the Dutch guilder. The foreign currency exchange rates
used in translating foreign currency sales and operating costs into U.S. dollars
impact the comparability of sales and operating results between periods. During
the third quarter and for the first nine months of 2000, currency exchange rate
fluctuations (primarily the euro) negatively impacted sales compared to the same
periods of 1999. Excluding the effect of currency and acquisitions, sales
increased 3% and 7%, respectively, in the third quarter and first nine months of
2000 compared to the same periods of 1999.
Operating income. Operating income in the third quarter of 2000 was
$9.1 million, a 3% decrease from operating income of $9.4 million for the third
quarter of 1999. For the first nine months of 2000, operating income increased
$2.6 million, or 9%, to $31.3 million from $28.7 million for the first nine
months of 1999. Operating income in 2000 was negatively impacted by a change in
product mix, with a lower percentage of sales being generated by certain
higher-margin products in 2000 compared to 1999, as well as the higher than
expected manufacturing costs at the Company's Grand Rapids, Michigan facility.
Operating income margins also declined in 2000 due to the lower margins
associated with the lock operations acquired in January 2000. Exclusive of
acquisitions, operating income in the third quarter and the first nine months of
2000 decreased 10% and increased 1%, respectively, as compared to the comparable
1999 periods. Excluding the effect of currency and acquisitions, operating
income in the third quarter and first nine months of 2000 declined 8% and
increased 4%, respectively as compared to the same periods of 1999.
Liquidity and Capital Resources
Consolidated cash flows
Operating activities. Trends in cash flows from operating activities,
excluding changes in assets and liabilities, are generally similar to the trends
in the Company's earnings. Such cash flows totaled $16.6 million and $19.6
million in the first nine months of 1999 and 2000, respectively, compared to net
income of $18.1 million and $19.2 million, respectively.
Changes in assets and liabilities result primarily from the timing of
production, sales and purchases. Such changes in assets and liabilities
generally tend to even out over time and result in trends in cash flows from
operating activities generally reflecting earnings trends.
Investing activities. Net cash used by investing activities totaled
$68.2 million and $25.9 million in the first nine months of 1999 and 2000,
respectively. Included in cash used by investing activities in the first nine
months of 1999 and 2000 is $53.1 million and $9.5 million related to the
acquisitions of Thomas Regout and substantially all of the operating assets of
Chicago Lock Company, respectively.
Capital expenditures for 2000 relate primarily to capacity expansion,
equipment additions designed to improve manufacturing efficiencies and tooling.
Capital expenditures for 2000 are estimated at approximately $25 million, the
majority of which relate to projects emphasizing improved production efficiency
and increased production capacity. In connection with the expansion of certain
of its domestic production facilities, the Company has outstanding firm purchase
commitments of $6.7 million at September 30, 2000. Firm purchase commitments for
capital projects not commenced at September 30, 2000 were not material.
Financing activities. Net cash provided by financing activities totaled
$19.1 million and $5.3 million in the first nine months of 1999 and 2000,
respectively. The Company paid its quarterly dividend of approximately $2.0
million, or $.125 per share, in each of the first, second and third quarters of
2000. No dividends were paid during the first nine months of 1999. Cash flows
from financing activities in each of the first nine months of 1999 includes
$20.0 million of borrowings used to finance a portion of the acquisition of
Thomas Regout. Similarly, cash flows from financing activities in the first nine
months of 2000 includes $10.3 million of net borrowings, $9.4 million of which
were used to finance the acquisition of substantially all of the assets of
Chicago Lock Company.
In November 2000, CompX's board of directors authorized CompX to
purchase up to 1 million shares of its common stock in the open market or
privately-negotiated transactions at unspecified prices and over an unspecified
period of time.
Management believes that cash generated from operations and borrowing
availability under the Company's unsecured Revolving Senior Credit Facility ($69
million available for borrowing at September 30, 2000), together with cash on
hand, will be sufficient to meet the Company's liquidity needs for working
capital, capital expenditures, debt service and dividends.
The Company periodically evaluates its liquidity requirements,
alternative uses of capital, capital needs and available resources in view of,
among other things, its capital expenditure requirements, its capital resources
and its estimated future operating cash flows. As a result of this process, the
Company may in the future seek to raise additional capital, refinance or
restructure indebtedness, issue additional securities, modify its dividend
policy, repurchase shares of its common stock or take a combination of such
steps or other steps to manage its liquidity and capital resources. In the
normal course of business, the Company may review opportunities for
acquisitions, joint ventures or other business combinations in the component
products industry. In the event of any such transaction, the Company may
consider using available cash, issuing additional equity securities or
increasing the indebtedness of the Company or its subsidiaries.
As provided by the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, the Company cautions that the statements in this
Quarterly Report on Form 10-Q relating to matters that are not historical facts,
including, but not limited to, statements found in this "Management's Discussion
and Analysis of Financial Condition and Results of Operations," are
forward-looking statements that represent management's beliefs and assumptions
based on currently available information. Forward-looking statements can be
identified by the use of such words as "believes," "intends," "may," "should,"
"anticipates," "expected" or comparable terminology, or by discussions of
strategies or trends. Although the Company believes that 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 are the risks and uncertainties discussed in this Quarterly
Report and those described from time to time in the Company's other filings with
the Securities and Exchange Commission. While it is not possible to identify all
factors, the Company continues to face many risks and uncertainties including,
but not limited to, future supply and demand for the Company's products, changes
in raw material, and other operating costs (such as energy costs), general
global economic and political conditions, demand for office furniture, service
industry employment levels, the possibility of labor disruptions, competitive
products and prices, substitute products, customer and competitor strategies,
the introduction of trade barriers, the impact of pricing and production
decisions, fluctuations in the value of the U.S. dollar relative to other
currencies (such as the euro and Canadian dollar), potential difficulties in
integrating completed acquisitions, uncertainties associated with new product
development, environmental matters (such as those requiring emission and
discharge standards for existing and new facilities), government regulations and
possible changes therein, possible future litigation and other risks and
uncertainties. 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 forecasted or
expected. The Company disclaims any intention or obligation to update publicly
or revise such statements whether as a result of new information, future events
or otherwise.
Part II. OTHER INFORMATION
ITEM 6. Exhibits and Reports on Form 8-K.
(a) Exhibits
27.1 Financial Data Schedule for the nine-month period ended
September 30, 2000.
(b) Reports on Form 8-K
Reports on Form 8-K for the quarter ended September 30, 2000:
July 14, 2000 - Reported Items 5 and 7. July 18, 2000 -
Reported Items 5 and 7. July 27, 2000 - Reported Items 5
and 7. August 7, 2000 - Reported Items 5 and 7.
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 thereunto duly authorized.
COMPX INTERNATIONAL INC.
-----------------------------
(Registrant)
Date November 13, 2000 By: /s/ John A. Miller
-------------------- ----------------------------------
John A. Miller
Vice President and
Chief Financial Officer
(Principal Financial Officer)
Date November 13, 2000 By: /s/ Todd W. Strange
-------------------- ----------------------------------
Todd W. Strange
Vice President and Controller
(Principal Accounting Officer)
5
0001049606
COMPX INTERNATIONAL INC.
1,000
9-MOS
DEC-31-2000
JAN-01-2000
SEP-30-2000
10,501
0
32,542
480
35,635
82,391
121,653
30,905
219,458
25,986
31,066
0
0
162
157,174
219,458
194,248
194,248
142,268
142,268
0
(118)
1,643
30,172
11,012
19,163
0
0
0
19,163
1.19
1.18
