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)
February
26, 2008
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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(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 February 26, 2008, 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 February 26, 2008 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: February
26, 2008
INDEX
TO EXHIBITS
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Exhibit
No.
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Description
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99.1
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Press
Release dated February 26, 2008 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 2007 RESULTS
DALLAS,
TEXAS … February 26, 2008 … CompX International Inc. (NYSE: CIX) announced today
sales of $42.5 million for the fourth quarter of 2007 compared to $44.2 million
in the same period of 2006. Operating income was $1.2 million in the
fourth quarter of 2007 compared to $3.5 million in the same period of
2006. Fourth quarter 2007 operating income was negatively impacted by
$1.9 million in expenses relating to the consolidation of three of the company’s
northern Illinois facilities into one new facility and $1.2 million in
unfavorable relative changes in currency exchange rates. Net income
from continuing operations for the fourth quarter of 2007 was $500,000, or $0.04
per diluted share, compared to $1.6 million, or $0.10 per diluted share, in
2006.
Net sales
for the year ended December 31, 2007 were $177.7 million compared to $190.1
million in the previous year. Operating income was $15.6 million for
the year ended December 31, 2007 compared to $20.3 million for
2006. Operating income for 2007 was impacted by $2.7 million in
expenses relating to the consolidation of three of the company’s northern
Illinois facilities into one new facility and $2.4 million in unfavorable
relative changes in currency exchange rates. Net income for the year
ended December 31, 2007 was $9.0 million, or $0.61 per diluted share, compared
to $11.7 million, or $0.76 per diluted share, in 2006.
Net sales
comparisons were 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 the facility consolidation costs, 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.
“While we
experienced challenges with our top line in 2007, we continued improvement in
our average product margins through our emphasis on selling more feature
oriented products that command higher margins and by improving operational
efficiency through lean manufacturing initiatives,” commented David A. Bowers,
President & CEO. “As a result, our gross margin percentage
improved to 25.5% in 2007 from 24.4% in 2006 and 23.5% in
2005. Completing the consolidation of three of our locations into a
new facility in Grayslake, Illinois was a major focus for our organization in
2007 involving approximately $9.6 million in capital and $2.7 million in
expenses. We expect this consolidation to provide additional
opportunities for improvements in operational efficiency as well as synergistic
opportunities to provide enhanced products and services to the customers served
from this location.”
CompX is
a leading manufacturer of security products, furniture components and
performance marine components. It operates from six locations in the
U.S., Canada and Taiwan and employs more than 1,000 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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2006
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2007
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2006
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2007
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(Unaudited)
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Net
sales
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$ | 44.2 | $ | 42.5 | $ | 190.1 | $ | 177.7 | ||||||||
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Cost
of goods sold
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34.5 | 33.2 | 143.6 | 132.5 | ||||||||||||
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Gross
margin
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9.7 | 9.3 | 46.5 | 45.2 | ||||||||||||
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Selling,
general and administrative
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6.2 | 6.1 | 26.1 | 25.8 | ||||||||||||
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Facility
consolidation expense
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- | 1.9 | - | 2.7 | ||||||||||||
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Other
operating expense, net
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- | 0.1 | 0.1 | 1.1 | ||||||||||||
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Operating
income
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3.5 | 1.2 | 20.3 | 15.6 | ||||||||||||
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Interest
expense
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(0.1 | ) | (0.6 | ) | (0.2 | ) | (0.8 | ) | ||||||||
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Other
income, net
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0.3 | 0.2 | 1.3 | 1.1 | ||||||||||||
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Income
from continuing operations beforeincome taxes
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3.7 | 0.8 | 21.4 | 15.9 | ||||||||||||
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Provision
for income tax
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2.1 | 0.3 | 9.7 | 6.9 | ||||||||||||
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Income
from continuing operations
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1.6 | 0.5 | 11.7 | 9.0 | ||||||||||||
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Discontinued
operations , net of tax
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0.5 | - | - | - | ||||||||||||
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Net
income
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$ | 2.1 | $ | 0.5 | $ | 11.7 | $ | 9.0 | ||||||||
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Net
income per diluted common share:
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Continuing
operations
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$ | 0.10 | $ | 0.04 | $ | 0.76 | $ | 0.61 | ||||||||
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Discontinued
operations
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.03 | - | - | - | ||||||||||||
| $ | 0.13 | $ | 0.04 | $ | 0.76 | $ | 0.61 | |||||||||
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Weighted
average diluted common shares
outstanding
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15.3 | 13.2 | 15.3 | 14.8 | ||||||||||||
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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2006
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2007
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Assets
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Current
assets:
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Cash
and equivalents
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$ | 29.7 | $ | 18.4 | ||||
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Accounts
receivable, net
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20.0 | 20.4 | ||||||
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Inventories,
net
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21.7 | 24.3 | ||||||
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Deferred
income taxes and other
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3.5 | 3.8 | ||||||
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Note
receivable
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1.3 | 1.3 | ||||||
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Total
current assets
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76.2 | 68.2 | ||||||
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Intangibles
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43.9 | 43.3 | ||||||
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Net
property and equipment
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69.7 | 72.2 | ||||||
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Asser
held for sale
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- | 3.1 | ||||||
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Other
assets
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2.2 | 0.9 | ||||||
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Total
assets
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$ | 192.0 | $ | 187.7 | ||||
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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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Current
maturities of note payable to affiliate
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$ | - | $ | 0.3 | ||||
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Accounts
payable and accrued liabilities
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16.8 | 17.7 | ||||||
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Interest
payable to affiliate
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- | 0.5 | ||||||
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Income
taxes
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1.0 | 0.4 | ||||||
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Total
current liabilities
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17.8 | 18.9 | ||||||
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Note
payable to affiliate
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- | 49.7 | ||||||
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Deferred
income taxes
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20.5 | 15.0 | ||||||
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Stockholders’
equity
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153.7 | 104.1 | ||||||
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Total
liabilities and stockholders’ equity
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$ | 192.0 | $ | 187.7 | ||||