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)
March
1, 2007
CompX
International Inc.
(Exact
name of registrant as specified in its charter)
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Delaware
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1-13905
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57-0981653
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(State
or other jurisdiction of incorporation)
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(Commission
File
Number)
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(IRS
Employer
Identification
No.)
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5430
LBJ Freeway, Suite 1700, Dallas, Texas
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75240-2697
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||
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(Address
of principal executive offices)
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(Zip
Code)
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||
Registrant’s
telephone number, including area code
(972)
448-1400
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(Former
name or former address, if changed since last report.)
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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):
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o
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Written
communications pursuant to Rule 425 under the Securities Act
(17 CFR
230.425)
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¨
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Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17
CFR
240.14a-12)
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¨
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Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange
Act (17 CFR
240.14d-2(b))
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¨
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Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange
Act (17 CFR
240.13e-4(c))
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Item
2.02
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Results
of Operations and Financial
Condition.
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Item
7.01
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Regulation
FD Disclosure.
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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 1, 2007,
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.
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Item
9.01
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Financial
Statements and Exhibits.
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(c) Exhibits.
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Item
No.
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Exhibit
Index
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| 99.1 | Press Release dated March 1, 2007 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:
March 1, 2007
INDEX
TO EXHIBITS
Exhibit
No. Description
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99.1
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Press
Release dated March 1, 2007 issued by the
registrant.
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PRESS
RELEASE
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FOR
IMMEDIATE RELEASE:
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CONTACT:
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CompX
International Inc.
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David
A. Bowers
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5430
LBJ Freeway, Suite 1700
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President
& CEO
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Dallas,
Texas 75240
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Tel.
864-286-1122
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COMPX
REPORTS FOURTH
QUARTER 2006 RESULTS
Dallas,
TEXAS … March 1, 2007 … CompX International Inc. (NYSE: CIX) announced today
sales of $44.2 million for the fourth quarter of 2006 compared to $46.7
million
in the same period of 2005. Operating income was $3.5 million in the fourth
quarter of 2006 compared to $5.5 million in the same period of 2005. Income
from
continuing operations was $1.6 million, or $0.10 per diluted share, in
the
fourth quarter of 2006, compared to $2.4 million, or $0.16 per diluted
share, in
the same period in 2005. The lower fourth quarter 2006 operating results
were
primarily due to the expiration of a precision slides sales contract which
was
renewed at a lower sales volume and the expiration of certain commodity
raw
material supply contracts resulting in higher costs which could not be
immediately recovered through price increases or surcharges.
Net
sales
for the year ended December 31, 2006 increased to $190.1 million compared
to
$186.3 million in the previous year. Operating
income increased to $20.3 million for the
year
ended December 31, 2006 from
$19.1 million in 2005. Income
from continuing operations for the year ended December 31, 2006 was $11.7
million, or $0.76 per diluted share, compared to $900,000, or $0.06 per
diluted
share in 2005. 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).
For
the
year, net sales comparisons were positively impacted by sales volume associated
with the acquisitions of performance marine components
businesses in August 2005 and April 2006, sales volume increases in security
products due to improved demand and the positive effect of fluctuations
in
currency exchange rates (which increased sales by $1.1 million in the
year-to-date period). These positive effects were partially offset by sales
volume decreases in certain products resulting from Asian competition.
Operating
income comparisons were favorably impacted by higher sales, an improved
product
mix, continued reductions in manufacturing and overhead costs that were
partially offset by higher raw material costs and a negative impact from
currency exchange rates (which decreased operating income by $1.1 million
in
2006).
“While
the fourth quarter experienced specific challenges, as noted above, 2006
as
a
whole was
a
year of significant accomplishments as we improved our gross margin and
operating margin, completed our second performance marine components acquisition
and improved our cash flow from operations to $27.4 million from $20 million
in
2005,”
commented David A. Bowers, President & CEO. “These
improvements were achieved despite volatility in our raw material costs
as well
as the continued significant competitive pressure in precision slide
sales.
While
these challenges will persist in 2007, we expect our diversification of
sales
with new customers in other markets and our continuous focus on improving
our
cost structure will have a positive effect on our operations.”
CompX
is
a leading manufacturer of precision ball bearing slides, security products,
ergonomic computer support systems and performance marine components. It
operates from nine locations in the U.S., Canada and Taiwan and employs
more
than 1,100 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, changes in raw material and other operating costs,
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 if
the
consequences worsen, or if the underlying assumptions prove incorrect,
actual
results could differ materially from those currently forecasted 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)
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Three
months ended
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Year
ended
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||||||||||||
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December
31,
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December
31,
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||||||||||||
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2005
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2006
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2005
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2006
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(Unaudited)
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|||||||||||||
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Net
sales
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$
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46.7
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$
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44.2
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$
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186.3
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$
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190.1
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|||||
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Cost
of goods sold
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34.7
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34.5
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142.5
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143.6
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Gross
profit
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12.0
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9.7
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43.8
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46.5
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Selling,
general and
administrative
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6.2
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6.2
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24.2
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26.1
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|||||||||
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Other
operating expense, net
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0.3
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-
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0.5
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0.1
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|||||||||
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Operating
income
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5.5
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3.5
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19.1
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20.3
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|||||||||
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Interest
expense
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(0.1
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)
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(0.1
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)
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(0.3
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)
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(0.2
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)
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|||||
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Other
income
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0.1
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0.3
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0.7
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1.3
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|||||||||
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Income
from continuing operations
before
income taxes
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5.5
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3.7
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19.5
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21.4
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|||||||||
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Income
tax expense
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3.1
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2.1
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18.6
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9.7
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|||||||||
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Income
from continuing operations
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2.4
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1.6
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0.9
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11.7
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|||||||||
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Discontinued
operations, net of tax
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-
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0.5
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(0.5
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)
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-
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||||||||
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Net
income
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$
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2.4
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$
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2.1
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$
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0.4
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$
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11.7
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|||||
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Net
income (loss) per diluted common share:
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|||||||||||||
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Continuing
operations
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$
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0.16
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$
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0.10
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$
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0.06
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$
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0.76
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|||||
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Discontinued
operations
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-
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0.03
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(0.03
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)
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-
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||||||||
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$
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0.16
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$
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0.13
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$
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0.03
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$
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0.76
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||||||
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Weighted
average diluted common
shares
outstanding
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15.2
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15.3
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15.
2
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15.3
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|||||||||
COMPX
INTERNATIONAL INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(In
millions)
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December
31,
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December
31,
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||||||
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Assets
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2005
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2006
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|||||
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Current
assets:
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|||||||
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Cash
and cash equivalents
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$
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30.6
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$
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29.7
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|||
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Accounts
receivable, net
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20.6
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20.0
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|||||
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Inventories
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22.5
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21.7
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|||||
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Prepaid
expenses and other
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4.5
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3.5
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|||||
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Note
receivable
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2.6
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1.3
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|||||
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Total
current assets
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80.8
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76.2
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|||||
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Intangibles
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38.0
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43.9
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|||||
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Net
property and equipment
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68.0
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69.7
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|||||
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Other
assets
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1.8
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2.2
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|||||
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Total
assets
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$
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188.6
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$
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192.0
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|||
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Liabilities
and Stockholders’ Equity
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|||||||
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Current
liabilities:
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|||||||
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Accounts
payable and accrued liabilities
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$
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19.2
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$
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16.8
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|||
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Income
taxes
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1.1
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1.0
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|||||
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Total
current liabilities
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20.3
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17.8
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|||||
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Long-term
debt
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1.5
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-
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|||||
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Deferred
income taxes
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16.7
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20.5
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|||||
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Stockholders’
equity
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150.1
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153.7
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|||||
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Total
liabilities and stockholders’ equity
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$
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188.6
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$
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192.0
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|||