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
1, 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 August 1, 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
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Press
Release dated August 1, 2008 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: August
1, 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 August 1, 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 SECOND QUARTER 2008 RESULTS
DALLAS,
TEXAS … August 1, 2008 … CompX International Inc. (NYSE: CIX) announced today
sales of $43.7 million for the second quarter of 2008 compared to $45.2 million
in the same period of 2007. Operating income was $4.5 million in the
second quarter of 2008 compared to $4.6 million in the same period of
2007. Net income for the second quarter of 2008 was $2.1 million, or
$0.17 per diluted share, compared to $2.6 million, or $0.17 per diluted share,
in 2007.
Net sales
for the six months ended June 30, 2008 were $84.2 million compared to $88.8
million in the previous year. Operating income was $8.0 million for
the six months ended June 30, 2008 compared to $10.0 million for
2007. Net income for the six months ended June 30, 2008 was $3.7
million, or $0.30 per diluted share, compared to $5.7 million, or $0.37 per
diluted share, in 2007.
Net sales
comparisons were unfavorably impacted by lower order rates from many customers
across all business segments due to general economic
conditions. Operating income decreased in 2008 as compared to the
same periods in 2007 as the unfavorable effects of lower sales volume, the
related reduction in coverage of fixed costs and the impact of higher raw
material costs more than offset the favorable effects of our ongoing focus on
reducing costs.
“We are
pleased that sales for our major business segments, Security Products and
Furniture Components, during the second quarter of 2008 essentially matched the
level experienced in 2007. Softness by historically strong customers
within these segments was offset by focusing on new products and providing
higher levels of security for markets susceptible to increased theft in lean
times,” commented David A. Bowers, President & CEO. “However, our
smaller segment providing components to the high performance marine market
mirrored that industry’s sales drop. In that area as well, we
continue to focus on these relatively recent acquisitions to expand in-house
manufacturing capabilities and to design and introduce new
products. We believe these activities throughout our company will
serve us well as we work our way through current economic conditions and will
prepare us for expansion when the economy improves.”
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)
(Unaudited)
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Three
months ended
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Six
months ended
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|||||||||||||||
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June
30,
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June
30,
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|||||||||||||||
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2007
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2008
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2007
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2008
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|||||||||||||
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Net
sales
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$ | 45.2 | $ | 43.7 | $ | 88.8 | $ | 84.2 | ||||||||
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Cost
of goods sold
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33.3 | 32.7 | 64.8 | 63.3 | ||||||||||||
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Gross
margin
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11.9 | 11.0 | 24.0 | 20.9 | ||||||||||||
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Selling,
general and administrative expense
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6.6 | 6.5 | 13.3 | 12.9 | ||||||||||||
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Other
operating expense, net
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0.7 | - | 0.7 | - | ||||||||||||
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Operating
income
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4.6 | 4.5 | 10.0 | 8.0 | ||||||||||||
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Interest
expense
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- | (0.5 | ) | (0.1 | ) | (1.3 | ) | |||||||||
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Other
non-operating income, net
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0.3 | - | 0.7 | 0.2 | ||||||||||||
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Income
before income taxes
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4.9 | 4.0 | 10.6 | 6.9 | ||||||||||||
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Provision
for income tax
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2.3 | 1.9 | 4.9 | 3.2 | ||||||||||||
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Net
income
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$ | 2.6 | $ | 2.1 | $ | 5.7 | $ | 3.7 | ||||||||
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Net
income per diluted common share
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$ | 0.17 | $ | 0.17 | $ | 0.37 | $ | 0.30 | ||||||||
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Weighted
average diluted common shares
outstanding
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15.3 | 12.4 | 15.3 | 12.4 | ||||||||||||
COMPX
INTERNATIONAL INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(In
millions)
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December
31,
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June
30,
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|||||||
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2007
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2008
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|||||||
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Assets
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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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$ | 18.4 | $ | 18.2 | ||||
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Accounts
receivable, net
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20.4 | 20.2 | ||||||
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Inventories,
net
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24.3 | 25.9 | ||||||
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Deferred
income taxes and other
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3.8 | 4.7 | ||||||
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Note
receivable
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1.3 | 0.9 | ||||||
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Total
current assets
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68.2 | 69.9 | ||||||
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Intangibles
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43.3 | 43.4 | ||||||
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Net
property and equipment
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72.2 | 71.6 | ||||||
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Assets
held for sale
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3.1 | 2.8 | ||||||
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Other
assets
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0.9 | 0.1 | ||||||
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Total
assets
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$ | 187.7 | $ | 187.8 | ||||
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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 | $ | 0.8 | ||||
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Accounts
payable and accrued liabilities
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17.7 | 17.9 | ||||||
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Interest
payable to affiliate
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0.5 | 0.5 | ||||||
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Income
taxes
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0.4 | 0.4 | ||||||
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Total
current liabilities
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18.9 | 19.6 | ||||||
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Note
payable to affiliate
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49.7 | 49.2 | ||||||
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Deferred
income taxes
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15.0 | 14.4 | ||||||
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Stockholders’
equity
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104.1 | 104.6 | ||||||
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Total
liabilities and stockholders’ equity
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$ | 187.7 | $ | 187.8 | ||||