COMPX REPORTS SECOND QUARTER 2020 RESULTS
August 04 2020 - 4:15PM
CompX International Inc. (NYSE American: CIX) announced today sales
of $23.8 million for the second quarter of 2020 compared to $33.7
million in the same period of 2019. Operating income was $2.4
million in the second quarter of 2020 compared to $5.6 million in
the same period in 2019. Net income for the second quarter of
2020 was $2.1 million, or $0.17 per diluted share, compared to $4.9
million, or $0.39 per diluted share, in the second quarter of
2019.
For the six months ended June 30, 2020, sales
were $56.1 million compared to $64.9 million in the previous
year. Operating income was $7.4 million for the first six
months of 2020 compared to $9.9 million for 2019. Net income
for the six months ended June 30, 2020 was $6.3 million or $0.51
per diluted share, compared to $8.9 million, or $0.71 per diluted
share, in 2019.
The COVID-19 pandemic impacted our operations
during the second quarter of 2020 due to government mandated
closures and reduced demand for many of our products resulting from
the rapid contraction of vast areas of the economy leading to a
decrease in net sales and operating income in the second quarter
and for the first six months of 2020 compared to the same periods
in 2019 and could further impact our operations and the operations
of our suppliers and customers for the foreseeable future. The
extent of the COVID-19 impact on our future operations will depend
on the time period and degree to which the COVID-19 pandemic
persists in the economy thereby reducing customer demand for
certain of our products, including the timing and extent to which
our customers’ operations continue to be impacted, our customers’
perception as to when consumer demand for their products will
return to pre-pandemic levels and on any future disruptions in our
operations or our suppliers’ operations, all of which are difficult
to predict.
CompX is a leading manufacturer of security
products and recreational marine components. It operates from
three locations in the U.S. and employs approximately 525
people.
Forward-Looking Statements
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 CompX believes
the expectations reflected in such forward-looking statements are
reasonable, it 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, CompX continues 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 disrupt
or 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 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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June 30, |
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June 30, |
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2019 |
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2020 |
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2019 |
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2020 |
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Net sales |
$ |
33.7 |
|
|
$ |
23.8 |
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$ |
64.9 |
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$ |
56.1 |
|
Cost of goods
sold |
|
22.8 |
|
|
|
16.4 |
|
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|
44.3 |
|
|
|
38.3 |
|
Gross
profit |
|
10.9 |
|
|
|
7.4 |
|
|
|
20.6 |
|
|
|
17.8 |
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Selling, general
and administrative expense |
|
5.3 |
|
|
|
5.0 |
|
|
|
10.7 |
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|
|
10.4 |
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Operating
income |
|
5.6 |
|
|
|
2.4 |
|
|
|
9.9 |
|
|
|
7.4 |
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Interest
income |
|
0.8 |
|
|
|
0.4 |
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|
1.7 |
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|
|
1.0 |
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Income before
taxes |
|
6.4 |
|
|
|
2.8 |
|
|
|
11.6 |
|
|
|
8.4 |
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Provision for
income taxes |
|
1.5 |
|
|
|
0.7 |
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|
|
2.7 |
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|
2.1 |
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Net income |
$ |
4.9 |
|
|
$ |
2.1 |
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$ |
8.9 |
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$ |
6.3 |
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Basic and
diluted net income |
|
|
|
|
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per
common share |
$ |
0.39 |
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$ |
0.17 |
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$ |
0.71 |
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$ |
0.51 |
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Weighted average
diluted common |
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shares
outstanding |
|
12.4 |
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|
12.4 |
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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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