COMPX REPORTS THIRD QUARTER 2020 RESULTS
November 04 2020 - 4:15PM
CompX International Inc. (NYSE American: CIX) announced today sales
of $28.4 million for the third quarter of 2020 compared to $29.7
million in the same period of 2019. Operating income was $2.1
million for the third quarter of 2020 compared to $4.3 million in
the same period of 2019. Net income for the third quarter of 2020
was $1.8 million, or $0.15 per diluted share, compared to $3.9
million, or $0.31 per diluted share, in the third quarter of
2019.
For the nine months ended September 30, 2020,
sales were $84.5 million compared to $94.6 million in the previous
year. Operating income was $9.5 million for the first nine months
of 2020 compared to $14.2 million for 2019. Net income for the nine
months ended September 30, 2020 was $8.2 million, or $0.66 per
diluted share, compared to $12.8 million, or $1.03 per diluted
share, in 2019.
In the third quarter of 2020, our sales began to
recover from the historically low levels we experienced during the
second quarter, although the COVID-19 pandemic continues to impact
our operations and demand for our products. Operating income for
the third quarter and the first nine months of 2020 compared to the
same periods in 2019 was negatively impacted by higher fixed cost
per unit of production as the result of lower production volumes in
the second quarter which increased the cost of inventory produced
in the second quarter and sold in the third quarter of 2020. In the
third quarter, our manufacturing operations returned to more normal
production rates as demand from our customers began to return,
although for the most part, below pre-pandemic levels. 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 515
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)
|
Three months ended |
|
|
Nine months ended |
|
|
September 30, |
|
|
September 30, |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
$ |
29.7 |
|
|
$ |
28.4 |
|
|
$ |
94.6 |
|
|
$ |
84.5 |
|
Cost of goods
sold |
|
20.2 |
|
|
|
21.1 |
|
|
|
64.6 |
|
|
|
59.4 |
|
Gross
profit |
|
9.5 |
|
|
|
7.3 |
|
|
|
30.0 |
|
|
|
25.1 |
|
Selling, general
and administrative expense |
|
5.2 |
|
|
|
5.2 |
|
|
|
15.8 |
|
|
|
15.6 |
|
Operating
income |
|
4.3 |
|
|
|
2.1 |
|
|
|
14.2 |
|
|
|
9.5 |
|
Interest
income |
|
0.8 |
|
|
|
0.3 |
|
|
|
2.5 |
|
|
|
1.3 |
|
Income before
taxes |
|
5.1 |
|
|
|
2.4 |
|
|
|
16.7 |
|
|
|
10.8 |
|
Provision for
income taxes |
|
1.2 |
|
|
|
0.6 |
|
|
|
3.9 |
|
|
|
2.6 |
|
Net income |
$ |
3.9 |
|
|
$ |
1.8 |
|
|
$ |
12.8 |
|
|
$ |
8.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
per
common share |
$ |
0.31 |
|
|
$ |
0.15 |
|
|
$ |
1.03 |
|
|
$ |
0.66 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
diluted common |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
shares
outstanding |
|
12.4 |
|
|
|
12.5 |
|
|
|
12.4 |
|
|
|
12.4 |
|
SOURCE: CompX International Inc.
CONTACT: Janet G. Keckeisen, Investor Relations, 972.233.1700
CompX (AMEX:CIX)
Historical Stock Chart
From Mar 2024 to Apr 2024
CompX (AMEX:CIX)
Historical Stock Chart
From Apr 2023 to Apr 2024