SEC Filing Html Data
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)
August 3, 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 August
3, 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 August 3, 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/ A. Andrew R. Louis
----------------------------
A. Andrew R. Louis
Secretary
Date: August 3, 2006
INDEX TO EXHIBITS
Exhibit No. Description
- ----------- --------------------------------------------------
99.1 Press Release dated August 3, 2006 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 SECOND QUARTER 2006 RESULTS
DALLAS, TEXAS ... August 3, 2006 ... CompX International Inc. (NYSE: CIX)
announced today sales of $50.1 million for the second quarter of 2006 compared
to $45.7 million in the same period of 2005. Operating income was $5.8 million
in the second quarter of 2006 compared to $4.7 million in the same period of
2005. Income from continuing operations for the second quarter of 2006 was $3.8
million, or $0.25 per diluted share, compared to $2.4 million, or $0.16 per
diluted share, in the second quarter of 2005.
Net sales for the six-month period ended June 30, 2006 increased to $97.2
million compared to $92.6 million in the previous year. Operating income was
$10.6 million for the six-month period ended June 30, 2006 compared to $8.9
million for the comparable period of 2005. Income from continuing operations for
the six-month period in 2006 was $6.3 million, or $0.41 per diluted share,
compared to $4.6 million, or $0.30 per diluted share in 2005.
Net sales comparisons were positively impacted by additional sales volume
resulting from acquisitions within our new performance marine components segment
and volume increases within security products which were offset by sales volume
decreases in furniture components. Operating income comparisons were favorably
impacted by the acquisitions referred to above, a change in product mix and the
continued benefit of cost improvement initiatives, partially offset by the
negative impact of changes in currency exchange rates on our furniture
components segment. In addition to the items noted above, income from continuing
operations comparisons were favorably impacted by a lower effective tax rate in
2006 due to a higher percentage of our income in 2006 being derived from U.S.
operations as compared to 2005.
"During the quarter, we successfully completed our second acquisition in the
performance marine components industry as part of our strategy to diversify into
additional component product markets," commented David A. Bowers, President &
CEO. "We view the performance marine components industry as an attractive
opportunity where engineering and quality are critical to the products we make
and the customers we serve, resulting in higher margins and lower risk of
products being commoditized. Expanding into this new components segment, along
with our continued focus on improving margins through cost efficiency and
replacing the sale of lower margin products with higher margin products, has
enabled us to improve our gross margin from 23% in the second quarter 2005 to
25% in the second quarter of 2006. We believe our strategy will maintain our
strong financial position, allowing us to take advantage of additional internal
and external growth opportunities to further improve profits. "
CompX is a leading manufacturer of security products, furniture components and
performance marine components. It operates from eight locations in the
country-regionU.S., country-regionCanada and placecountry-regionTaiwan,
employing 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)
(Unaudited)
Three months ended Six months ended
June 30, June 30,
2005 2006 2005 2006
------------------------ ------------------------
Net sales $ 45.7 $ 50.1 $ 92.6 $ 97.2
Cost of goods sold 35.2 37.8 71.8 73.2
------------------------ -----------------------
Gross profit 10.5 12.3 20.8 24.0
Selling, general and administrative 5.8 6.4 11.9 13.2
Other operating expense - 0.1 - 0.2
------------------------ -----------------------
Operating income 4.7 5.8 8.9 10.6
Interest expense - - (0.1) (0.1)
Other income, net 0.1 0.3 0.2 0.7
------------------------ ----------------------
Income from continuing operations
before income taxes 4.8 6.1 9.0 11.2
Income tax expense 2.4 2.3 4.4 4.9
------------------------ -----------------------
Income from continuing operations 2.4 3.8 4.6 6.3
Discontinued operations, net of tax - (0.5) (0.5) (0.5)
------------------------- ------------------------
Net income $ 2.4 $ 3.3 $ 4.1 $ 5.8
======================== =======================
Net income per diluted common share
Continuing operations $ 0.16 $ 0.25 $ 0.30 $ 0.41
Discontinued operations - (0.03) (0.03) (0.03)
------------------------- -----------------------
$ 0.16 $ 0.22 $ 0.27 $ 0.38
======================== =======================
Weighted average diluted common
shares outstanding 15.2 15.3 15.2 15.2
======================== =======================
COMPX INTERNATIONAL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
December 31, June 30,
2005 2006
----------------- --------------
(Unaudited)
Assets
Current assets:
Cash and equivalents $ 30.6 $ 22.8
Accounts receivable, net 20.6 22.7
Inventories 22.5 23.5
Prepaid expenses and other 4.5 4.8
Note receivable 2.6 1.3
----------- -----------
Total current assets 80.8 75.1
Intangibles 38.0 43.7
Net property and equipment 68.0 71.0
Other assets 1.8 2.1
----------- -----------
Total assets $ 188.6 $ 191.9
=========== ===========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued liabilities $ 19.2 $ 19.5
Income taxes 1.1 0.6
----------- -----------
Total current liabilities 20.3 20.1
Long-term debt 1.5 -
Deferred income taxes 16.7 18.7
Stockholders' equity 150.1 153.1
----------- -----------
Total liabilities and stockholders' equity $ 188.6 $ 191.9
=========== ===========