COMPX REPORTS FIRST QUARTER 2023 RESULTS
May 02 2023 - 4:15PM
CompX International Inc. (NYSE American: CIX) announced today sales
of $41.2 million for the first quarter of 2023 compared to $42.1
million in the same period of 2022. Operating income was $7.0
million in the first quarter of 2023 compared to $6.3 million in
the same period of 2022. Net income was $6.1 million, or $.49
per basic and diluted common share, for the first quarter of 2023
compared to $5.0 million, or $.40 per basic and diluted common
share, in the same period of 2022.
Net sales decreased in the first quarter of 2023
compared to the same period in 2022 primarily due to lower Security
Products sales to the government security and healthcare industry
markets, partially offset by higher Marine Components sales
predominantly to the industrial market. Operating income increased
during the first quarter of 2023 due to higher Marine Components
sales and gross margins which more than offset lower Security
Products sales. Interest income increased in the first quarter of
2023 compared to the same period in prior year due to higher
average interest rates and increased investment balances, somewhat
offset by lower average balances on the revolving promissory note
receivable with Valhi, which also impacted net income over the
comparative period.
CompX is a leading manufacturer of security
products and recreational marine components. It operates from three
locations in the U.S. and employs approximately 600 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 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,
- Government laws and regulations and
possible changes therein including new environmental health and
safety or other 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
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 update or revise any forward-looking statement
whether as a result of changes in information, future events or
otherwise.
Investor Relations Contact
Bryan A. HanleySenior Vice President and TreasurerTel.
972-233-1700
* * * * *COMPX INTERNATIONAL
INC.SUMMARY OF CONSOLIDATED
OPERATIONS(In millions, except per share
amounts)
|
|
|
|
|
|
|
Three months ended |
|
March 31, |
|
2022 |
|
2023 |
|
(unaudited) |
Net sales |
$ |
42.1 |
|
$ |
41.2 |
Cost of sales |
|
30.0 |
|
|
28.5 |
Gross margin |
|
12.1 |
|
|
12.7 |
Selling, general and
administrative expense |
|
5.8 |
|
|
5.7 |
Operating income |
|
6.3 |
|
|
7.0 |
Interest income |
|
.2 |
|
|
1.0 |
Income before taxes |
|
6.5 |
|
|
8.0 |
Provision for income
taxes |
|
1.5 |
|
|
1.9 |
Net income |
$ |
5.0 |
|
$ |
6.1 |
|
|
|
|
|
|
Basic and diluted net income
per common share |
$ |
.40 |
|
$ |
.49 |
Weighted average diluted
common shares outstanding |
|
12.4 |
|
|
12.3 |
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