DALLAS, TEXAS .November 2, 2016 .
CompX International Inc. (NYSE MKT: CIX) announced today sales of
$28.4 million for the third quarter of 2016 compared to $26.5
million in the same period of 2015. Operating income was $4.5
million in the third quarter of 2016 compared to $3.4 million in
the same period in 2015. Net income for the third quarter of
2016 was $3.0 million, or $0.24 per diluted share, compared to $2.2
million, or $0.18 per diluted share, in the third quarter of
2015.
For the nine months ended
September 30, 2016, sales were $82.6 million compared to $83.3
million in the previous year. Operating income was $11.5
million for the first nine months of 2016 compared to $11.4 million
for 2015. Net income for the nine months ended September 30,
2016 was $7.6 million or $0.61 per diluted share, compared to $7.5
million, or $0.60 per diluted share, in 2015.
Net sales and operating income
increased in the third quarter of 2016 compared to the same period
in 2015 primarily due to higher Security Products sales to existing
government customers. Operating income was also favorably impacted
as a result of manufacturing efficiencies and fixed cost leverage
resulting from increased manufacturing volume.
Net sales decreased in the first
nine months of 2016 compared to the respective period in 2016,
primarily due to Security Products sales in 2015 for a government
security end-user project that, as expected, did not recur in
2016. This decrease was largely offset by higher third
quarter Security Products sales and strong Marine Components
sales. Operating income increased for the first nine months
of 2016 compared to the same period in 2015 due to operating
improvements resulting from favorable third quarter volumes.
"The Security Products and Marine
Components segments posted exceptional third quarter results,
following a very solid first half of 2016," commented David A.
Bowers, CEO. "During the third quarter of 2016, Security Products
was awarded a new project which began to ship in August, and which
effectively replaced the nonrecurring 2015 sales for a government
security customer. In addition, our Marine Components segment
continues to grow its sales and earnings through diversification
and innovation in product offerings. While these factors bode well
for a similarly favorable fourth quarter, the expected conclusion
of the recently awarded project by the end of 2016 and the
continued sluggish economy somewhat temper our outlook for early
2017. Meanwhile, we continue to seek opportunities to gain market
share in existing markets, to expand into new markets and to
further develop new and current customers and products."
CompX is a leading manufacturer of
security products and recreational marine components. It
operates from four locations in the U.S. and employs approximately
500 people.
Forward-Looking
Statements
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 the development of new
product features 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)
|
Three months ended |
|
Nine months ended |
|
September 30, |
|
September 30, |
|
2015 |
|
2016 |
|
2015 |
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
$
26.5 |
|
$
28.4 |
|
$
83.3 |
|
$
82.6 |
Cost of goods sold |
18.4 |
|
19.0 |
|
57.5 |
|
56.5 |
Gross profit |
8.1 |
|
9.4 |
|
25.8 |
|
26.1 |
Selling, general and
administrative expense |
4.7 |
|
4.9 |
|
14.4 |
|
14.6 |
Operating income |
3.4 |
|
4.5 |
|
11.4 |
|
11.5 |
Interest income |
- |
|
0.1 |
|
0.1 |
|
0.2 |
Income before taxes |
3.4 |
|
4.6 |
|
11.5 |
|
11.7 |
Provision for income taxes |
1.2 |
|
1.6 |
|
4.0 |
|
4.1 |
Net income |
$ 2.2 |
|
$ 3.0 |
|
$ 7.5 |
|
$ 7.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
income |
|
|
|
|
|
|
|
per common share |
$ 0.18 |
|
$ 0.24 |
|
$ 0.60 |
|
$ 0.61 |
|
|
|
|
|
|
|
|
Weighted average
diluted common |
|
|
|
|
|
|
|
shares outstanding |
12.4 |
|
12.4 |
|
12.4 |
|
12.4 |
|
|
|
|
|
|
|
|
COMPX
INTERNATIONAL INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In millions)
|
December 31, |
|
September 30, |
|
2015 |
|
2016 |
Assets |
|
|
(Unaudited) |
|
|
|
|
Current assets: |
|
|
|
Cash and equivalents |
$
52.3 |
|
$
45.4 |
Accounts receivable,
net |
8.8 |
|
13.0 |
Inventories, net |
15.1 |
|
14.6 |
Prepaid expenses and
other |
0.7 |
|
0.7 |
Total current assets |
76.9 |
|
73.7 |
|
|
|
|
Goodwill |
23.7 |
|
23.7 |
Note receivable from
affiliate |
- |
|
10.7 |
Net property and equipment |
33.6 |
|
33.2 |
Other noncurrent |
0.6 |
|
0.6 |
|
|
|
|
Total assets |
$ 134.8 |
|
$ 141.9 |
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
Accounts payable and
accrued liabilities |
$
11.6 |
|
$
12.1 |
Income taxes |
0.5 |
|
1.3 |
Total current
liabilities |
12.1 |
|
13.4 |
|
|
|
|
Deferred income taxes |
5.0 |
|
4.9 |
Stockholders' equity |
117.7 |
|
123.6 |
|
|
|
|
Total liabilities and
stockholders' equity |
$ 134.8 |
|
$ 141.9 |
|
|
|
|
SOURCE: CompX International Inc.
CONTACT: David A. Bowers, Chief Executive Officer,
864-286-1122