SEC Filing Html Data
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
Date of Report: April 23, 2003
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.)
5430 LBJ Freeway, Suite 1700, Dallas, TX 75240-2697
(Address of principal executive offices) (Zip Code)
(972) 448-1400
(Registrant's telephone number, including area code)
(Former name or address, if changed since last report)
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 April 23, 2003 issued by
CompX International Inc.
Item 9: Regulation FD Disclosure
The registrant hereby furnishes the information set forth in the press
release issued on April 23, 2003, a copy of which is attached hereto as Exhibit
99.1 and incorporated herein by reference. The registrant furnishes this
information under this Item 9 and under "Item 12. Results of Operations and
Financial Condition," pursuant to the interim guidance contained in the
Securities and Exchange Commission Release 34-47583 promulgated under the
Securities Exchange Act of 1934, as amended (the "Exchange Act"), among other
statutes.
The information, including the exhibit, the registrant furnishes in this
report is not deemed "filed" for purposes of section 18 of the Exchange Act or
otherwise subject to the liabilities of that section. Registration statements or
other documents filed with the Securities and Exchange Commission shall not
incorporate this information by reference, except as otherwise expressly stated
in such filing.
SIGNATURE
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/ A. Andrew R. Louis
----------------------
A. Andrew R. Louis
Secretary
Date: April 23, 2003
INDEX TO EXHIBITS
Exhibit No. Description
- ---------- ----------------------------------------------------------------
99.1 Press release dated April 23, 2003 issued by CompX International
Inc.
[LOGO GOES HERE]
PRESS RELEASE
FOR IMMEDIATE RELEASE: CONTACT:
CompX International Inc. David A. Bowers
5430 LBJ Freeway, Suite 1700 President & CEO
Dallas, Texas 75240 Tel. 864-286-1122
COMPX REPORTS FIRST QUARTER 2003 OPERATING RESULTS
Dallas, TEXAS ... April 23, 2003 ... CompX International Inc. (NYSE: CIX)
announced today net sales for the first quarter of 2003 of $51.0 million and net
income of $600,000 compared to net sales of $48.6 million and net income of $1.3
million for the comparable 2002 period. First quarter 2003 net income per
diluted share was $0.04 as compared to first quarter 2002 net income per diluted
share of $0.09.
The primary items affecting CompX's results in the first quarter 2003 as
compared to the first quarter of 2002 are: o Fluctuations in currency exchange
rates favorably impacted net sales by $1.7 million, but negatively impacted
operating income by $600,000 ($0.02 per diluted share, net of income tax
benefit). The impact on net sales is primarily due to relative changes in the US
dollar to euro exchange rate. The impact on operating income is primarily due to
the effect of relative changes in the US dollar to Canadian dollar exchange rate
on the Canadian operations, where the majority of net sales are denominated in
US dollars and the majority of expenses are denominated in Canadian dollars. o
The consolidation of the two plants in Kitchener, Ontario that commenced in the
first quarter of 2003 resulted in $400,000 of expenses included in cost of goods
sold ($0.02 per diluted share, net of income tax benefit). This consolidation is
currently expected to be completed by the end of the second quarter of 2003.
Expenses associated with the consolidation are anticipated to be lower in the
second quarter of 2003, and the benefits are expected to begin to be realized in
the second half of 2003.
"While we are encouraged by the favorable trend in net sales in the first
quarter of 2003 as compared to the first quarter of 2002, it is still too early
to determine if this trend will continue throughout the year as the economic
environment of major customers continues to lack stability," commented David A
Bowers, President & CEO. "Progress was made during the first quarter with our
cost structure initiatives as the Kitchener, Ontario plant consolidation nears
completion. Additional cost evaluations are under review, which could result in
charges for asset impairment and other costs in future quarters."
The CompX Security Products segment experienced a 1% increase in net sales
in the first quarter of 2003 over the same quarter last year. However, operating
income declined slightly primarily due to relative changes in product mix.
Performance in this segment continues to be a strong contributor with operating
income of 12% of net sales, due in part to the broad scope of markets served
with our various lock products.
Net sales for the CompX Waterloo/Regout segment in the first quarter of
2003 increased 7% in comparison to the prior year. Approximately 6% of the
increase is attributable to currency exchange rate differences as compared to
rates in effect during the first quarter of 2002. Operating income for this
segment was negatively impacted by relative changes in product mix as well as
the previously mentioned $600,000 currency exchange rate impact and plant
consolidation costs.
Mr. Bowers concluded, "We are optimistic that rationalization initiatives
begun in 2002 and during the first half of 2003, along with our prudent
management of capital expenditures and working capital, will continue to
strengthen our financial position and will provide us the opportunity to improve
profitability in future quarters of this challenging economic environment."
CompX is a leading manufacturer of precision ball bearing slides, security
products and ergonomic computer support systems.
Statements in this release relating to matters that are not historical
facts are forward-looking statements based upon management's belief and
assumptions using currently available information. Although CompX 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, CompX 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, fluctuations in currency
exchange rates, the introduction of trade barriers, potential difficulties in
integrating completed acquisitions and other risks and uncertainties detailed in
CompX's Securities 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. CompX 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
March 31,
----------------------------
2002 2003
----------------------------
Net sales $ 48.6 $ 51.0
Cost of goods sold 38.9 42.2
----------------------------
Gross profit 9.7 8.8
Selling, general and administrative 7.2 7.0
----------------------------
Operating income 2.5 1.8
Interest expense (0.7) (0.3)
Interest income 0.2 0.1
Currency exchange loss (0.3) (0.6)
Other income (expense) 0.4 -
----------------------------
Income before income taxes 2.1 1.0
Income tax expense 0.8 0.4
----------------------------
Net income $ 1.3 $ 0.6
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Net income per diluted common share $ 0.09 $ 0.04
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Weighted average diluted common
shares outstanding 15.1 15.1
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