COMPX REPORTS FOURTH QUARTER 2020 RESULTS
March 03 2021 - 04:30PM
CompX International Inc. (NYSE American: CIX) announced today sales
of $30.0 million for the fourth quarter of 2020 compared to $29.6
million in the same period of 2019. Operating income was $2.3
million in the fourth quarter of 2020 compared to $3.5 million in
the same period of 2019. Net income was $2.3 million, or $0.17 per
diluted share, for the fourth quarter of 2020 compared to $3.2
million, or $0.26 per diluted share, in the same period of 2019.
Net sales for the year ended December 31, 2020
were $114.5 million compared to $124.2 million in the previous
year. Operating income was $11.8 million for the year ended
December 31, 2020 compared to $17.7 million for 2019. Net income
for the year ended December 31, 2020 was $10.3 million, or $0.83
per diluted share, compared to $16.0 million, or $1.29 per diluted
share, for the year ended December 31, 2019.
Net sales increased in the fourth quarter of
2020 compared to the same period in 2019 as lower Security Products
sales were more than offset by increased Marine Components sales,
with the towboat market representing most of the increase in marine
sales. Operating income decreased for the fourth quarter of 2020
compared to the fourth quarter of 2019 as the improvement in Marine
Components operating income was offset by the decline of Security
Products operating income. Security Products operating income
for the period declined primarily due to the higher cost of sales
noted below, as well as increased medical costs.
Net sales decreased for the full year of 2020
compared to the full year of 2019 due to lower Security Products
sales primarily resulting from customer disruptions caused by the
COVID-19 pandemic, somewhat offset by higher Marine Components
sales. Operating income for the full year of 2020 compared to the
same period in 2019 was negatively impacted by higher fixed cost
per unit of production as the result of lower production volumes in
the second and third quarters which increased the cost of inventory
produced in these quarters and sold in the second half of 2020.
Additionally, operating income for the full year of 2020 compared
to prior year was negatively impacted by increased employer paid
medical costs unrelated to the pandemic. In the second half of
2020, our sales began to recover from the historically low levels
we experienced during the second quarter, with sales steadily
improving for the remainder of the year. In the second half of the
year, our manufacturing operations returned to more normal
production rates as demand from our customers began to return,
although Security Products operations did not recover to
pre-pandemic levels. The extent of the impact of the COVID-19
pandemic on our future operations will depend on the time period
and degree to which the COVID-19 pandemic persists in the economy,
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 513 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 CONSOLIDATED STATEMENTS OF
INCOME(In millions, except per share
amounts)
|
Three months ended |
|
|
Year ended |
|
|
|
December 31, |
|
|
December 31, |
|
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
$ |
29.6 |
|
|
$ |
30.0 |
|
|
$ |
124.2 |
|
|
$ |
114.5 |
|
|
Cost of
sales |
|
20.7 |
|
|
|
22.3 |
|
|
|
85.2 |
|
|
|
81.7 |
|
|
Gross
margin |
|
8.9 |
|
|
|
7.7 |
|
|
|
39.0 |
|
|
|
32.8 |
|
|
Selling, general
and administrative expense |
|
5.4 |
|
|
|
5.4 |
|
|
|
21.3 |
|
|
|
21.0 |
|
|
Operating
income |
|
3.5 |
|
|
|
2.3 |
|
|
|
17.7 |
|
|
|
11.8 |
|
|
Interest
income |
|
0.7 |
|
|
|
0.4 |
|
|
|
3.2 |
|
|
|
1.7 |
|
|
Income before
taxes |
|
4.2 |
|
|
|
2.7 |
|
|
|
20.9 |
|
|
|
13.5 |
|
|
Provision for
income taxes |
|
1.0 |
|
|
|
0.4 |
|
|
|
4.9 |
|
|
|
3.2 |
|
|
Net income |
$ |
3.2 |
|
|
$ |
2.3 |
|
|
$ |
16.0 |
|
|
$ |
10.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
per
common share |
$ |
0.26 |
|
|
$ |
0.17 |
|
|
$ |
1.29 |
|
|
$ |
0.83 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
diluted common |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
shares
outstanding |
|
12.4 |
|
|
|
12.5 |
|
|
|
12.4 |
|
|
|
12.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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SOURCE: CompX International Inc.
CONTACT: Janet G. Keckeisen, Investor Relations, 972.233.1700
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