COMPX REPORTS FIRST QUARTER 2018 RESULTS
DALLAS, TEXAS . May 7, 2018 . CompX International Inc. (NYSE American: CIX) announced today sales of $28.4 million for the first quarter of 2018 compared to $29.9 million in the same period of 2017. Operating income was $4.4 million in the first quarter of 2018 compared to $4.5 million in the same period of 2017. Net income was $3.7 million, or $0.30 per basic and diluted common share, for the first quarter of 2018 compared to $3.1 million, or $0.25 per basic and diluted common share, in the same period of 2017.
Net sales decreased primarily due to lower Security Products sales volumes to existing government security customers and to a lesser extent lower sales to an original equipment manufacturer of recreational transportation products, partially offset by higher Marine Components sales for the quarter. Operating income decreased primarily due to lower Security Products sales.
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
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 product features,
Future litigation,
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 tax reform,
The impact of current or future government regulations (including employee healthcare benefit related regulations),
General global economic and political conditions that introduce instability into the U.S. economy (such as changes in the level of gross domestic product in various regions of the world),
Operating interruptions (including, but not limited to labor disputes, hazardous chemical leaks, natural disasters, fires, explosions, unscheduled or unplanned downtime, transportation interruptions and cyber attacks); 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.
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COMPX INTERNATIONAL INC.
SUMMARY OF CONSOLIDATED OPERATIONS
(In millions, except per share amounts)
(Unaudited)
Three months ended | ||||||
March 31, | ||||||
2017 | 2018 | |||||
Net sales | $ 29.9 | $ 28.4 | ||||
Cost of goods sold | 20.2 | 18.9 | ||||
Gross profit | 9.7 | 9.5 | ||||
Selling, general and administrative expense | 5.2 | 5.1 | ||||
Operating income | 4.5 | 4.4 | ||||
Interest income | 0.3 | 0.5 | ||||
Income before taxes | 4.8 | 4.9 | ||||
Provision for income taxes | 1.7 | 1.2 | ||||
Net income | $ 3.1 | $ 3.7 | ||||
Basic and diluted net income per common share | $ 0.25 | $ 0.30 | ||||
Weighted average diluted common | ||||||
shares outstanding | 12.4 | 12.4 | ||||
COMPX INTERNATIONAL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
December 31, | March 31, | ||
2017 | 2018 | ||
Assets | (Unaudited) | ||
Current assets: | |||
Cash and equivalents | $ 29.7 | $ 28.4 | |
Accounts receivable, net | 10.4 | 12.7 | |
Inventories, net | 15.4 | 16.3 | |
Prepaid expenses and other | 0.9 | 0.7 | |
Total current assets | 56.4 | 58.1 | |
Note receivable from affiliate | 38.2 | 38.0 | |
Goodwill | 23.7 | 23.7 | |
Net property and equipment | 32.1 | 31.9 | |
Other noncurrent | 0.6 | 0.6 | |
Total assets | $ 151.0 | $ 152.3 | |
Liabilities and Stockholders` Equity | |||
Current liabilities: | |||
Accounts payable and accrued liabilities | $ 10.8 | $ 8.4 | |
Income taxes | 0.5 | 0.9 | |
Total current liabilities | 11.3 | 9.3 | |
Deferred income taxes | 3.1 | 3.3 | |
Stockholders` equity | 136.6 | 139.7 | |
Total liabilities and stockholders` equity | $ 151.0 | $ 152.3 |
SOURCE: CompX International Inc.
CONTACT: Janet G. Keckeisen, Investor Relations, 972.233.1700
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Compx International Inc via GlobeNewswire
HUG#2190266
