COMPX REPORTS FIRST QUARTER 2020 RESULTS
May 05 2020 - 04:15PM
DALLAS, TEXAS … May 5, 2020 … CompX International Inc. (NYSE
American: CIX) announced today sales of $32.3 million for the first
quarter of 2020 compared to $31.2 million in the same period of
2019. Operating income was $5.0 million in the first quarter
of 2020 compared to $4.3 million in the same period of 2019.
Net income was $4.3 million, or $0.34 per basic and diluted common
share, for the first quarter of 2020 compared to $4.0 million, or
$0.32 per basic and diluted common share, in the same period of
2019.
Net sales increased for the quarter primarily
due to higher Security Products sales to existing government
security customers, partially offset by lower sales to
transportation and distribution customers. Marine Components also
contributed higher sales for the quarter, mainly to the towboat and
center console boat markets, partially offset by lower sales to
distribution customers. Operating income increased slightly for the
quarter due to the favorable effects of customer and product mix on
higher sales, partially offset by increased medical costs for both
Security Products and Marine Components.
Although the COVID-19 pandemic had limited
impact on our operations during the first quarter of 2020, we
believe U.S. and worldwide gross domestic product will be
significantly impacted for an indeterminate period, including the
demand for our products and those of our customers. Consequently,
we expect to report lower sales and earnings than would otherwise
have been expected for the remainder of 2020. The extent of the
impact will depend on numerous factors, including future
developments, and therefore is uncertain and cannot be
predicted.
The statements in this press release relating to
matters that are not historical facts are forward-looking
statements that represent management’s belief and assumptions based
on currently available information. Although we believe the
expectations reflected in such forward-looking statements are
reasonable, we cannot give any assurances that these expectations
will 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 predicted. While it is not possible to identify
all factors, we continue to face many risks and uncertainties. The
factors that could cause our actual future results to differ
materially include, but are not limited to, the following:
- Future demand for our products,
- Changes in our raw material and other operating costs (such as
zinc, brass, aluminum, steel and energy costs) and our ability to
pass those costs on to our customers or offset them with reductions
in other operating costs,
- Price and product competition from low-cost manufacturing
sources (such as China),
- The impact of pricing and production decisions,
- Customer and competitor strategies including substitute
products,
- Uncertainties associated with the development of new products
and product features,
- Future litigation,
- Our ability to protect or defend our intellectual property
rights,
- Potential difficulties in integrating future acquisitions,
- Decisions to sell operating assets other than in the ordinary
course of business,
- Environmental matters (such as those requiring emission and
discharge standards for existing and new facilities),
- The ultimate outcome of income tax audits, tax settlement
initiatives or other tax matters, including future tax reform,
- The impact of current or future government regulations
(including employee healthcare benefit related regulations),
- General global economic and political conditions that introduce
instability into our supply chain, impact our customers’ level of
demand or our customers’ perception regarding demand or impair our
ability to operate our facilities (including changes in the level
of gross domestic product in various regions of the world, natural
disasters, terrorist acts, global conflicts and public health
crises such as COVID-19),
- Operating interruptions (including, but not limited to labor
disputes, hazardous chemical leaks, natural disasters, fires,
explosions, unscheduled or unplanned downtime, transportation
interruptions, cyber-attacks and public health crises such as
COVID-19); and
- Possible disruption of our business or increases in the cost of
doing business resulting from terrorist activities or global
conflicts.
Should one or more of these risks materialize
(or the consequences of such development worsen), or should the
underlying assumptions prove incorrect, actual results could differ
materially from those currently forecasted or expected. CompX
disclaims any intention or obligation to update or revise any
forward-looking statement whether as a result of changes in
information, future events or otherwise.
CompX is a leading manufacturer of security
products and recreational marine components. It operates from
three locations in the U.S. and employs approximately 550
people.
* * * * *
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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March 31, |
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2019 |
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2020 |
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Net sales |
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$ |
31.2 |
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$ |
32.3 |
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Cost of goods
sold |
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21.6 |
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21.9 |
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Gross
profit |
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9.6 |
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10.4 |
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Selling, general
and administrative expense |
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5.3 |
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5.4 |
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Operating
income |
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4.3 |
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5.0 |
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Interest
income |
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0.8 |
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0.6 |
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Income before
taxes |
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5.1 |
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5.6 |
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Provision for
income taxes |
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1.1 |
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1.3 |
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Net income |
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$ |
4.0 |
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$ |
4.3 |
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Basic and
diluted net income per common share |
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$ |
0.32 |
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$ |
0.34 |
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Weighted average
diluted common |
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shares
outstanding |
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12.4 |
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12.4 |
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SOURCE: CompX International Inc.
CONTACT: Janet G. Keckeisen, Investor Relations, 972.233.1700
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