SEC Filing Html Data
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: August 2, 2005
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) 233-1700
(Registrant's telephone number, including area code)
(Former name or address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2):
[ ] Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b)
under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c)
under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition.
Item 7.01 Regulation FD Disclosure.
Pursuant to Items 2.02 and 7.01 of this current report, the registrant
hereby furnishes the information set forth in its press release issued on August
2, 2005, 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.
Item 9.01 Financial Statements and Exhibits.
(c) Exhibits.
Item No. Exhibit Index
---------- ----------------------------------------
99.1 Press Release dated August 2, 2005 issued by
the registrant.
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: August 2, 2005
INDEX TO EXHIBITS
Exhibit No. Description
- ----------- --------------------------------------------------
99.1 Press Release dated August 2, 2005 issued by the registrant.
[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 SALES, PROFITS
FOR SECOND QUARTER 2005
Dallas, TEXAS ... August 2, 2005 ... CompX International Inc. (NYSE: CIX)
announced today sales of $45.7 million for the second quarter of 2005, compared
to $46.2 million in the second quarter of 2004. Operating income was $4.7
million in the second quarter of 2005 compared to $4.8 million in the second
quarter of 2004. Income from continuing operations for the second quarter of
2005 was $2.4 million, or $0.16 per diluted share, compared to $3.0 million, or
$0.20 per diluted share, in the second quarter of 2004.
Net sales for the six-month period ended June 30, 2005 increased to $92.6
million from $89.8 million for same period of the previous year. Income from
continuing operations for the six-month period in 2005 was $4.6 million, or
$0.30 per diluted share, compared to $4.5 million, or $0.30 per diluted share in
2004. Sales and operating income comparisons were impacted by the net effects of
higher selling prices for certain products across all segments and lower sales
volumes for certain products. Due to certain limitations on the ability to
utilize foreign tax credits, the Company's effective income tax rate was higher
in the first six months of 2005 as compared to the same period of 2004.
"While we continue to see economic recovery progressing in the majority of the
markets we serve, competition from low priced Asian based manufacturers remains
a challenge," commented David A. Bowers, President & CEO. "Our ongoing focus on
strengthening our sales process as well as cost control and production
efficiency efforts is expected to continue to support our profitability as we
explore lower manufacturing cost alternatives to address the high volume, low
price segment of the business."
Mr. Bowers concluded, "Management's effort to identify new opportunities for
growth and diversification is progressing with the completion of a relatively
small acquisition in August. Our significant cash position, as well as borrowing
availability under our credit agreement, provides the liquidity to take
advantage of additional opportunities as they are identified."
CompX is a leading manufacturer of precision ball bearing slides, security
products and ergonomic computer support systems. It operates from seven
locations in the U.S., Canada and Taiwan and employs more than 1,300 people.
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, the timing and amount of future cost savings from
restructuring actions, the ability to sustain or increase operating income
improvement resulting from cost control initiatives, uncertainties associated
with new product development 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 Six months ended
June 30, June 30,
2004 2005 2004 2005
------------------------ ------------------------
Net sales $ 46.2 $ 45.7 $ 89.8 $ 92.6
Cost of goods sold 35.3 35.2 70.5 71.8
------------------------ -----------------------
Gross profit 10.9 10.5 19.3 20.8
Selling, general and administrative 6.1 5.8 12.2 11.9
------------------------ -----------------------
Operating income 4.8 4.7 7.1 8.9
Interest expense (0.1) - (0.4) (0.1)
Other income, net 0.6 0.1 1.3 0.2
------------------------ ----------------------
Income from continuing operations
before income taxes 5.3 4.8 8.0 9.0
Income tax expense 2.3 2.4 3.5 4.4
------------------------ -----------------------
Income from continuing operations 3.0 2.4 4.5 4.6
Discontinued operations, net of tax 0.3 - 0.3 (0.5)
------------------------ ------------------------
Net income $ 3.3 $ 2.4 $ 4.8 $ 4.1
======================== =======================
Net income per diluted common share
Continuing operations $ 0.20 $ 0.16 $ 0.30 $ 0.30
Discontinued operations 0.02 - 0.02 (0.03)
------------------------ ------------------------
$ 0.22 $ 0.16 $ 0.32 $ 0.27
======================== =======================
Weighted average diluted common
shares outstanding 15.2 15.2 15.1 15.2
======================== =======================
COMPX INTERNATIONAL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
December 31, June 30,
2004 2005
----------------- --------------
Assets (Unaudited)
Current assets:
Cash and equivalents $ 16.8 $ 33.1
Accounts receivable, net 19.2 21.3
Inventories 20.8 19.9
Prepaid expenses and other 2.1 4.3
Deferred income taxes 1.4 1.5
Assets held for sale 18.0 -
----------- -----------
Total current assets 78.3 80.1
Intangibles 30.7 32.2
Net property and equipment 66.1 67.9
Note receivable - 2.9
Assets held for sales 11.0 -
Other assets 0.2 0.1
----------- -----------
Total assets $ 186.3 $ 183.2
=========== ===========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued liabilities $ 18.3 $ 19.5
Accrued income taxes and other 2.7 0.8
Liabilities related to assets held for sale 5.0 -
----------- -----------
Total current liabilities 26.0 20.3
Other non-current liabilities 0.1 0.1
Deferred income taxes 4.9 6.4
Stockholders' equity 155.3 156.4
----------- -----------
Total liabilities and stockholders' equity $ 186.3 $ 183.2
=========== ===========