SEC Filing Html Data
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
CityplaceWashington, StateD.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)
November 1, 2006
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CompX International Inc.
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(Exact name of Registrant as specified in its charter)
Delaware 1-13905 57-0981653
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(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification
incorporation) No.)
5430 LBJ Freeway, Suite 1700, Dallas, Texas 75240-2697
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code
(972) 233-1700
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(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
November 1, 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
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99.1 Press Release dated November 1, 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
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A. Andrew R. Louis
Secretary
Date: November 1, 2006
INDEX TO EXHIBITS
Exhibit No. Description
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99.1 Press Release dated November 1, 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 THIRD QUARTER 2006 RESULTS
Dallas, TEXAS ... November 1, 2006 ... CompX International Inc. (NYSE: CIX)
announced today third quarter sales of $48.8 million for 2006 compared to $47.1
million in the same period of 2005. Operating income was $6.2 million in the
third quarter of 2006 compared to $4.8 million in the same period of 2005. Net
income from continuing operations for the third quarter of 2006 was $3.8
million, or $0.25 per diluted share, compared to a loss of $6.1 million, or
$0.40 per diluted share, in the third quarter of 2005. The results for the third
quarter of 2005 include a non-cash income tax charge of approximately $9.0
million ($0.59 per diluted share) due to a change in the Company's expectation
relating to the repatriation of non-U.S. earnings.
For the nine-month period ended September 30, 2006, net sales increased to
$146.0 million compared to $139.7 million in the previous year. Operating income
improved to $16.8 million for the nine-month period ended September 30, 2006
compared to $13.6 million for the comparable period of 2005. Net income from
continuing operations for the nine-month period in 2006 was $10.1 million, or
$0.66 per diluted share, compared to a loss of $1.5 million, or $0.10 per
diluted share in 2005. The loss from continuing operations for the nine-month
period in 2005 was impacted by the non-cash tax charge discussed above.
Net sales comparisons were positively impacted by additional sales volumes
resulting from acquisitions within our new marine components segment and volume
increases within security products which were partially offset by sales volume
decreases in the furniture components segment. Operating income comparisons were
favorably impacted by an improved product mix, the continued benefit of cost
improvement initiatives and by the acquisitions referred to above, partially
offset by the net negative impact of changes in currency exchange rates on our
furniture components segment. In addition to the items noted above, net income
from continuing operations comparisons were favorably impacted by a lower
effective tax rate in 2006 (excluding the impact of the $9.0 million tax charge
discussed above) due to a higher percentage of our income in 2006 being derived
from U.S. operations as compared to 2005.
"Our acquisition of two performance marine components manufacturers along with
organic sales growth in our security products segment contributed significantly
to our year over year sales growth," commented David A. Bowers, President & CEO.
"The favorable contribution from these segments is being partially offset by
declines in the furniture components segment due to our decision to eliminate
certain low margin sales. As a result, despite the sales decline in the
furniture components segment, operating income for the quarter improved due to
the effect of remaining volumes carrying higher margins and the benefit of
continued cost structure reduction efforts. Total operating income is up by 30%
compared to the same quarter in 2005 due to the improved bottom line performance
of furniture components along with stronger overall results from security
products. While our strategy to focus on the bottom line may result in
additional sales declines within furniture components in the short term, we
expect the long term effect to increase both sales and profits for CompX as a
whole."
CompX is a leading manufacturer of security products, furniture components and
performance marine components. It operates from eight locations in the U.S.,
Canada and Taiwan, 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 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 Nine months ended
September 30, September 30,
2005 2006 2005 2006
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Net sales $ 47.1 $ 48.8 $ 139.7 $ 146.0
Cost of goods sold 36.1 35.9 107.9 109.2
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Gross profit 11.0 12.9 31.8 36.8
Selling, general and administrative 6.0 6.7 18.0 19.8
Other operating expense, net 0.2 - 0.2 0.2
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Operating income 4.8 6.2 13.6 16.8
Interest expense (0.1) - (0.2) (0.1)
Other income, net 0.3 0.3 0.5 1.0
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Income from continuing operations
before income taxes 5.0 6.5 13.9 17.7
Income tax expense 11.1 2.7 15.4 7.6
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Income (loss) from
continuing operations (6.1) 3.8 (1.5) 10.1
Discontinued operations, net of tax - - (0.5) (0.5)
Net income (loss) $ (6.1) $ 3.8 $ (2.0) $ 9.6
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Net income (loss) per common share
Continuing operations $ (0.40) $ 0.25 $ (0.10) $ 0.66
Discontinued operations - - (0.03) (0.03)
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$ (0.40) $ 0.25 $ (0.13) $ 0.63
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Weighted average diluted common
shares outstanding 15.2 15.3 15.2 15.3
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COMPX INTERNATIONAL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
December 31, September 30,
2005 2006
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(Unaudited)
Assets
Current assets:
Cash and equivalents $ 30.6 $ 25.8
Accounts receivable, net 20.6 23.0
Inventories 22.5 23.6
Prepaid expenses and other 4.5 3.7
Note receivable 2.6 1.3
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Total current assets 80.8 77.4
Intangibles 38.0 43.6
Net property and equipment 68.0 72.0
Other assets 1.8 2.1
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Total assets $ 188.6 $ 195.1
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Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued liabilities $ 19.2 $ 20.6
Income taxes 1.1 0.1
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Total current liabilities 20.3 20.7
Long-term debt 1.5 -
Deferred income taxes 16.7 19.3
Stockholders' equity 150.1 155.1
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Total liabilities and stockholders' equity $ 188.6 $ 195.1
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