UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities
Exchange Act of 1934
Date of Report (Date of the earliest event reported)
March 16, 2006
----------------
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, Texas 75240-2697
- ---------------------------------------------- ------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code
(972) 233-1700
--------------
(Former name or former 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 March
16, 2006, 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 March 16, 2006 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/ Darryl R. Halbert
----------------------------
Darryl R. Halbert
Vice President, Chief Financial Officer
and Controller
Date: March 16, 2006
INDEX TO EXHIBITS
Exhibit No. Description
- ----------- --------------------------------------------------
99.1 Press Release dated March 16, 2006 issued by the registrant.
- -------------------------------------------------------------------------------
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 FOURTH QUARTER 2005 RESULTS
Dallas, TEXAS ... March 16, 2006 ... CompX International Inc. (NYSE: CIX)
announced today sales of $46.7 million for the fourth quarter of 2005 compared
to $46.6 million in the same period of 2004. Operating income was $5.5 million
in the fourth quarter of 2005 compared to $3.0 million in the same period of
2004. Net sales for the year ended December 31, 2005 increased to $186.3 million
compared to $182.6 million in the previous year. Operating income was $19.1
million for the year ended December 31, 2005 compared to $15.4 million for the
comparable period of 2004. For the year, net sales comparisons were positively
impacted by sales volume associated with the acquisition of a small components
business in August 2005, the positive effect of fluctuations in currency
exchange rates (which increased sales by $1.5 million in the year-to-date
period) and increases in selling prices for certain products across all segments
to recover volatile raw material prices. These positive effects were partially
offset by sales volume decreases in certain products resulting from Asian
competition. Operating income comparisons were primarily impacted by the
favorable impact of continued reductions in manufacturing, fixed overhead and
other overhead costs, partially offset by a negative impact from currency
exchange rates (which decreased operating income by $2.3 million in 2005) and
higher raw material costs.
Income from continuing operations improved to $2.4 million, or $0.16 per diluted
share, in the fourth quarter of 2005, up from $1.4 million, or $0.09 per diluted
share, in the same period in 2004. Income from continuing operations for the
year ended December 31, 2005 was $900,000, or $0.06 per diluted share, compared
to $9.5 million, or $0.63 per diluted share in 2004. The full year 2005 amount
was negatively impacted by a change in the Company's expectation relating to the
repatriation of non-U.S. earnings that resulted in the Company incurring a one-
time non-cash income tax charge during the third quarter of 2005 of
approximately $9.0 million ($0.59 per diluted share).
"In 2005 we continued to make progress in improving our margins through
increased volumes on more profitable products and a focus on continuing efforts
that emphasize cost control and production efficiency," commented David A.
Bowers, President & CEO. "Additionally, we made progress with new opportunities
for growth and diversification with the completion of one relatively small
acquisition in August. Our strong liquidity and financial position will allow us
to continue to explore additional growth opportunities."
CompX is a leading manufacturer of precision ball bearing slides, security
products and ergonomic computer support systems. It operates from eight
locations in the U.S., Canada and Taiwan and employs more than 1,200 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)
Three months ended Year ended
December 31, December 31,
--------------------- -------------------
2004 2005 2004 2005
---- ---- ---- ----
(Unaudited)
Net sales $ 46.6 $ 46.7 $ 182.6 $ 186.3
Cost of goods sold 36.4 34.7 142.8 142.5
------- ------- -------- ---------
Gross profit 10.2 12.0 39.8 43.8
Selling, general and administrative 6.7 6.2 24.1 24.2
Other operating expense, net 0.5 0.3 0.3 0.5
------- ------- -------- ---------
Operating income 3.0 5.5 15.4 19.1
Interest expense (0. 1) (0.1) (0.5) (0.3)
Other income (expense) 1.2 0.1 2.4 0.7
------- ------- -------- ---------
Income from continuing operations
before income taxes 4.1 5.5 17.3 19.5
Income tax expense 2.7 3.1 7.8 18.6
------- ------- -------- ---------
Income from continuing operations 1.4 2.4 9.5 0.9
Discontinued operations, net of tax (13.1) - (12.5) (0.5)
------- ------- -------- ---------
Net income (loss) $ (11.7) $ 2.4 $ (3.0) $ 0.4
======= ======= ======== =========
Net income (loss) per diluted common share:
Continuing operations $ 0.09 $ 0.16 $ 0.63 $ 0.06
Discontinued operations (0.86) - (0.83) (0.03)
------- ------- -------- ---------
$ (0.77) $ 0.16 $ (0.20) $ 0.03
======= ======= ======== =========
Weighted average diluted common
shares outstanding 15.1 15.2 15. 2 15.2
======= ======= ======== =========
COMPX INTERNATIONAL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
December 31, December 31,
2004 2005
------------ -------------
Assets
Current assets:
Cash and equivalents $ 16.8 $ 30.6
Accounts receivable, net 19.2 20.6
Inventories 20.8 22.5
Prepaid expenses and other 3.5 4.5
Note receivable - 2.6
Assets held for sale 18.0 -
----------- -----------
Total current assets 78.3 80.8
Intangibles 30.7 38.0
Net property and equipment 66.1 68.0
Assets held for sale 11.0 -
Other assets 0.2 1.8
----------- -----------
Total assets $ 186.3 $ 188.6
=========== ===========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued liabilities $ 18.3 $ 19.2
Income taxes 2.7 1.1
Liabilities related to assets held for sale 5.0 -
----------- -----------
Total current liabilities 26.0 20.3
Long-term debt 0.1 1.5
Deferred income taxes 4.9 16.7
Stockholders' equity 155.3 150.1
----------- -----------
Total liabilities and stockholders' equity $ 186.3 $ 188.6
=========== ===========
