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
November
1, 2007
Date
of
Report (Date of the earliest event reported)
CompX
International Inc.
(Exact
name of registrant as specified in its charter)
|
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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(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 November 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
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Press
Release dated November 1, 2007 issued by the
registrant.
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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: November
1, 2007
INDEX
TO EXHIBITS
|
Exhibit
No.
|
Description
|
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99.1
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Press
Release dated November 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 THIRD QUARTER 2007 RESULTS
DALLAS,
TEXAS … November 1, 2007 … CompX International Inc. (NYSE: CIX) announced today
sales of $46.4 million for the third quarter of 2007 compared to $48.8 million
in the same period of 2006. Operating income was $4.3 million in the
third quarter of 2007 compared to $6.2 million in the same period of
2006. Net income from continuing operations for the third quarter of
2007 was $2.8 million, or $0.18 per diluted share, compared to $3.8 million,
or
$0.25 per diluted share, in 2006.
Net
sales
for the nine-month period ended September 30, 2007 were $135.2 million compared
to $146.0 million in the previous year. Operating income was $14.3
million for the nine-month period ended September 30, 2007 compared to $16.8
million for the comparable period of 2006. Income from continuing
operations for the nine-month period in 2007 was $8.5 million, or $0.56 per
diluted share, compared to $10.1 million, or $0.66 per diluted share, in
2006.
Net
sales
comparisons continued to be unfavorably impacted both by lower sales volume
for
certain products resulting from competition from lower priced Asian
manufacturers and by the effect of lower order rates from many of our customers
across all of our segments due to general economic
conditions. Operating income decreased in 2007 as compared to the
same periods in 2006 as the unfavorable effects of lower sales volume and
relative changes in foreign currency exchange rates more than offset the
favorable effects of an improved product mix and our ongoing focus on reducing
costs.
“The
current economic environment in North America continues to negatively impact
our
sales,” commented David A. Bowers, President &
CEO. “Additionally, the stronger Canadian dollar is adversely
affecting our costs. We expect both of these conditions to continue
to exist well into 2008. In response, we are focused on appropriately
managing our cost structure and developing new sales opportunities in order
to
gain market share. As part of managing our cost structure, we
incurred approximately $600,000 in expenses during the quarter relating to
the
move of two of our northern Illinois Security Products facilities. We expect
this move to provide additional opportunities for synergies and cost reductions
in 2008 and beyond. The move will be completed during the fourth
quarter with additional move related spending in the range of what we incurred
during the third quarter.”
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 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)
(Unaudited)
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Three
months ended
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Nine
months ended
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|||||||||||||||
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September
30,
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September
30,
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|||||||||||||||
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2006
|
2007
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2006
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2007
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|||||||||||||
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Net
sales
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$ |
48.8
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$ |
46.4
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$ |
146.0
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$ |
135.2
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||||||||
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Cost
of goods sold
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35.9
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35.1
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109.2
|
100.0
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||||||||||||
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Gross
margin
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12.9
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11.3
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36.8
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35.2
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||||||||||||
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Selling,
general and administrative
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6.7
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6.6
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19.8
|
19.8
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||||||||||||
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Other
operating expense, net
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-
|
(0.4 | ) | (0.2 | ) | (1.1 | ) | |||||||||
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Operating
income
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6.2
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4.3
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16.8
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14.3
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||||||||||||
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Other
non-operating income, net
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0.3
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0.2
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0.9
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0.8
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||||||||||||
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Income
from continuing operations before income taxes
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6.5
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4.5
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17.7
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15.1
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||||||||||||
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Provision
for income tax
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2.7
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1.7
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7.6
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6.6
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||||||||||||
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Income
from continuing operations
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3.8
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2.8
|
10.1
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8.5
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||||||||||||
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Discontinued
operations , net of tax
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-
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-
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(0.5 | ) |
-
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|||||||||||
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Net
income
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$ |
3.8
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$ |
2.8
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$ |
9.6
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$ |
8.5
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||||||||
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Net
income per diluted common share:
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||||||||||||||||
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Continuing
operations
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$ |
0.25
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$ |
0.18
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$ |
0.66
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$ |
0.56
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||||||||
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Discontinued
operations
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-
|
-
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(0.03 | ) |
-
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|||||||||||
| $ |
0.25
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$ |
0.18
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$ |
0.63
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$ |
0.56
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|||||||||
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Weighted
average diluted common shares
outstanding
|
15.3
|
15.3
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15.3
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15.3
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||||||||||||
COMPX
INTERNATIONAL INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(In
millions)
|
December
31,
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September
30,
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|||||||
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Assets
|
2006
|
2007
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||||||
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(Unaudited)
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||||||||
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Current
assets:
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||||||||
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Cash
and equivalents
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$ |
29.7
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$ |
25.2
|
||||
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Accounts
receivable, net
|
20.0
|
20.4
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||||||
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Inventories,
net
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21.7
|
26.6
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||||||
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Deferred
income taxes and other
|
3.5
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3.9
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||||||
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Note
receivable
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1.3
|
1.3
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||||||
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Total
current assets
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76.2
|
77.4
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||||||
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Intangibles
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43.9
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43.4
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||||||
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Net
property and equipment
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69.7
|
74.8
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||||||
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Other
assets
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2.2
|
1.0
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||||||
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Total
assets
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$ |
192.0
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$ |
196.6
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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
|
$ |
16.8
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$ |
20.6
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||||
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Income
taxes
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1.0
|
0.2
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||||||
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Total
current liabilities
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17.8
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20.8
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||||||
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Deferred
income taxes
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20.5
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17.4
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||||||
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Stockholders’
equity
|
153.7
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158.4
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||||||
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Total
liabilities and stockholders’ equity
|
$ |
192.0
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$ |
196.6
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||||