SEC Filing Html Data
UNITED STATES
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 29, 2004
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 9: Regulation FD Disclosure
Item 12: Results of Operations and Financial Condition
Pursuant to Items 9 and 12 of this current report, the registrant hereby
furnishes the information set forth in the press release issued on April 29,
2004, a copy of which is attached hereto as Exhibit 99.1 and incorporated herein
by reference.
The information, including the exhibit, the registrant furnishes in this
report is not deemed "filed" for purposes of section 18 of the Securities
Exchange Act of 1934, as amended, 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 29, 2004
INDEX TO EXHIBITS
Exhibit No. Description
- ----------- --------------------------------------------------
99.1 Press release dated April 29, 2004 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 2004 OPERATING RESULTS
Dallas, TEXAS ... April 29, 2004 ... CompX International Inc. (NYSE: CIX)
announced today sales of $53.1 million for the first quarter of 2004 and net
income of $1.6 million, or $0.10 per diluted share. This represents an increase
in sales of 4% from $51.0 million in the prior year quarter. For the comparable
2003 quarter, the Company reported net income of $600,000, or $0.04 per diluted
share.
Certain items affecting the comparability of CompX's first quarter results in
2003 and 2004 are discussed below.
o Fluctuations in currency exchange rates favorably impacted net sales by
$2.5 million; however the impact on net income was insignificant. The
impact on net sales is primarily due to relative changes in the US dollar
to euro and Canadian dollar exchange rates.
o In the first quarter of 2003, the consolidation of the two plants in
Kitchener, Ontario resulted in $400,000 of expenses included in cost of
goods sold ($0.02 per diluted share, net of income tax benefit).
"As we expected, our cost reduction activities are having a favorable impact as
indicated by the marked improvement in our operating results," commented David
A. Bowers, President & CEO. "Additionally, 2004's positive beginning reflects
diligent efforts to eliminate unprofitable business in our slide segments
through value engineering, price increases, moving production to lower cost
facilities and targeted improvement in manufacturing processes."
Security Products Segment
The CompX Security Products segment experienced a 2%
increase in net sales to $18.8 million and a 5% increase in operating income to
$2.3 million in the first quarter of 2004 over the same quarter last year. The
improvement in operating income resulted from a more favorable product mix as
well as the benefit of cost reduction efforts. Performance in this segment
continues to be a strong contributor with operating income of 12.5% of net
sales, due in part to the broad scope of markets served with our various lock
products.
Waterloo Segment
Net sales for the Waterloo segment increased 4% to $24.7 million in the first
quarter of 2004 from $23.8 million in the first quarter in 2003. The increase is
primarily attributable to fluctuations in currency exchange rates as well as
increases in certain slide product prices. Operating income for this segment was
$350,000 in the first quarter of 2004 as compared to $450,000 in the prior year
quarter. Operating income comparison to the prior year for this segment was
affected by price increases, by unfavorable 2004 relative changes in currency
exchange rates of $700,000 and the previously mentioned 2003 plant consolidation
costs of $400,000.
Thomas Regout
Segment Net sales for the Thomas Regout segment increased 9% to $9.6 million in
the first quarter of 2004 from $8.8 million in the first quarter of 2003. The
increase is due to relative changes in currency exchange rates, which favorably
impacted net sales by $1.4 million, offset in part by the effect of lower
volumes of precision slide shipments to European office furniture manufacturers.
The first quarter of 2004 operating income for this segment was breakeven
compared to an operating loss of $900,000 in 2003. The improvement in operating
income was primarily from the cost reduction benefits achieved as a result of
the restructuring activity initiated in 2003. The impact of relative changes in
currency exchange rates on operating income comparisons was not significant for
this segment.
Mr. Bowers concluded, "Our first quarter results are an encouraging step forward
and demonstrate the benefits of the initiatives undertaken over the past two
years. We expect to continue those efforts while we focus on releasing new
products and developing new, more profitable markets with those products. In
addition, we continue to evaluate strategic alternatives for our Thomas Regout
operations, some of which could result in additional charges in the future."
Liquidity and Cash Flow
Cash provided by operating activities improved to $3.4 million for the quarter
compared to $1.5 million in the prior year. The improvement in cash provided by
operating activities was due to the improved operating results and the efficient
management of working capital. During the first quarter of 2004, the Company
utilized a portion of its cash balance to reduce debt by $12.0 million.
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,
----------------------------
2003 2004
--------- ---------
Net sales $ 51.0 $ 53.1
Cost of goods sold 42.2 43.0
----------------------------
Gross profit 8.8 10.1
Selling, general and administrative 7.0 7.4
----------------------------
Operating income 1.8 2.7
Interest expense (0.3) (0.2)
Interest income 0.1 -
Currency transaction exchange gain (loss) (0.6) 0.2
----------------------------
Income before income taxes 1.0 2.7
Income tax expense 0.4 1.1
----------------------------
Net income $ 0.6 $ 1.6
============================
Net income per diluted common share $ 0.04 $ 0.10
============================
Weighted average diluted common
shares outstanding 15.1 15.1
============================
COMPX INTERNATIONAL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
December 31, March 31,
2003 2004
----------------- --------------
Assets (Unaudited)
Current assets:
Cash and equivalents $ 21.7 $ 12.4
Accounts receivable, net 25.7 27.4
Inventories 26.3 24.3
Prepaid expenses and other 6.5 5.4
----------- -----------
Total current assets 80.2 69.5
Intangibles 45.3 44.8
Net property and equipment 83.2 79.5
Other assets 0.8 0.5
----------- -----------
Total assets $ 209.5 $ 194.3
=========== ===========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued liabilities $ 24.0 $ 21.4
Accrued income taxes and other 0.5 0.5
----------- -----------
Total current liabilities 24.5 21.9
Long-term debt 26.0 14.1
Other non-current liabilities 4.6 3.8
Stockholders' equity 154.4 154.5
----------- -----------
Total liabilities and stockholders' equity $ 209.5 $ 194.3
=========== ===========