UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.   20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of the earliest event reported)
May 7, 2019
CompX International Inc.
(Exact name of registrant as specified in its charter)
Delaware
1-13905
57-0981653
(State or other jurisdiction of incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)
     
     
5430 LBJ Freeway, Suite 1700, Dallas, Texas
75240-2620
(Address of principal executive offices)
(Zip Code)
Registrant’s telephone number, including area code
(972) 448-1400
     
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2):

☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
   
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
   
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
   
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐
Securities registered pursuant to Section 12(b) of the Act:

Title of each class
  
Trading
Symbol(s)
  
Name of each exchange on which registered
Class A common stock
($.01 par value per share)
  
CIX
  
NYSE American



Item 2.02
Results of Operations and Financial Condition.

Item 7.01
Regulation FD Disclosure.

The registrant hereby furnishes the information set forth in its press release issued on May 7, 2019, a copy of which is attached hereto as Exhibit 99.1 and incorporated herein by reference.

The information, including the exhibit, the registrant furnishes in this report is not deemed “filed” for purposes of section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section.  Registration statements or other documents filed with the U.S. Securities and Exchange Commission shall not incorporate this information by reference, except as otherwise expressly stated in such filing.

Item 9.01
Financial Statements and Exhibits.

(d)
Exhibits
    
       
 
Item No.
  
Exhibit Index
       
 
99.1
  
Press release dated May 7, 2019 issued by the registrant.





SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
CompX International Inc.
 
(Registrant)
   
   
   
   
 
By: /s/ Gregory M. Swalwell 
Date:  May 7, 2019
Gregory M. Swalwell,
Executive Vice President






PRESS RELEASE



FOR IMMEDIATE RELEASE:
CONTACT:
   
CompX International Inc.
Janet G. Keckeisen
5430 LBJ Freeway, Suite 1700
Investor Relations
Dallas, Texas 75240
Tel. 972-233-1700
   

COMPX REPORTS FIRST QUARTER 2019 RESULTS

DALLAS, TEXAS … May 7, 2019 … CompX International Inc. (NYSE American: CIX) announced today sales of $31.2 million for the first quarter of 2019 compared to $28.4 million in the same period of 2018.  Operating income was $4.3 million in the first quarter of 2019 compared to $4.4 million in the same period of 2018.  Net income was $4.0 million, or $0.32 per basic and diluted common share, for the first quarter of 2019 compared to $3.7 million, or $0.30 per basic and diluted common share, in the same period of 2018.
Net sales increased for the quarter primarily due to higher Marine Component sales, mainly surf pipes and wake enhancement systems to an original equipment boat manufacturer. Security Products also contributed higher sales for the quarter, primarily to existing government security customers. Operating income decreased slightly for the quarter as the favorable effect of higher sales volumes at Marine Components was offset by increased labor rates and medical costs at Security Products as well as a less favorable customer and product mix at Marine Components.
CompX is a leading manufacturer of security products and recreational marine components.  It operates from four locations in the U.S. and employs approximately 550 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, 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,
·
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 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.

* * * * *
COMPX INTERNATIONAL INC.
SUMMARY OF CONSOLIDATED OPERATIONS
(In millions, except per share amounts)
(Unaudited)


                     
       
Three months ended
  
       
March 31,
  
       
2018
    
2019
  
                     
                     
Net sales
      
$
28.4
    
$
31.2
  
Cost of goods sold
        
18.9
      
21.6
  
Gross profit
        
9.5
      
9.6
  
Selling, general and administrative expense
        
5.1
      
5.3
  
Operating income
        
4.4
      
4.3
  
Interest income
        
0.5
      
0.8
  
Income before taxes
        
4.9
      
5.1
  
Provision for income taxes
        
1.2
      
1.1
  
Net income
      
$
3.7
    
$
4.0
  
                     
                     
Basic and diluted net income per common share
      
$
0.30
    
$
0.32
  
                     
Weighted average diluted common
                    
   shares outstanding
        
12.4
      
12.4
  
                     





COMPX INTERNATIONAL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)




 
December 31,
    
March 31,
  
 
2018
    
2019
  
Assets
        
(Unaudited)
  
               
Current assets:
              
  Cash and equivalents
$
45.4
    
$
36.1
  
  Accounts receivable, net
  
12.1
      
15.4
  
  Inventories, net
  
17.1
      
18.5
  
  Prepaid expenses and other
  
1.7
      
0.9
  
    Total current assets
  
76.3
      
70.9
  
               
Note receivable from affiliate
  
34.0
      
40.0
  
Goodwill
  
23.7
      
23.7
  
Net property and equipment
  
31.8
      
31.2
  
Other noncurrent
  
0.6
      
0.6
  
               
    Total assets
$
166.4
    
$
166.4
  
               
Liabilities and Stockholders’ Equity
              
               
Current liabilities:
              
  Accounts payable and accrued liabilities
$
12.5
    
$
9.2
  
  Income taxes
  
1.2
      
1.2
  
    Total current liabilities
  
13.7
      
10.4
  
               
Deferred income taxes
  
3.2
      
3.3
  
Stockholders’ equity
  
149.5
      
152.7
  
               
    Total liabilities and stockholders’ equity
$
166.4
    
$
166.4