DALLAS, TEXAS . May 8, 2012 . CompX International Inc. (AMEX: CIX) announced today sales of $35.5 million for the first quarter of 2012 compared to $34.8 million in the same period of 2011. Operating income was $2.9 million in the first quarter of 2012 compared to $8.8 million in the same period of 2011. Operating income for the first quarter of 2011 was favorably impacted by a $7.5 million litigation settlement gain. Net income for the first quarter of 2012 was $1.5 million, or $0.12 per diluted share, compared to $4.0 million, or $0.32 per diluted share in the first quarter of 2011. The effect of the litigation settlement gain in the first quarter of 2011 on net income was $3.4 million, or $0.27 per diluted share.
Net sales increased in 2012 principally due to $1.1 million in new sales during the quarter from the Furniture Components ergonomics healthcare product line acquired in 2011 and from growth in customer demand within our Security Products and Marine segments, partially offset by lower other Furniture Component sales. The decrease in operating income, however, is primarily due to the net effects of:
The 2011 litigation settlement gain, net of related expenses;
Facility consolidation costs of $1.0 million in the first quarter of 2011 related to the consolidation of our precision slides manufacturing facilities; and
The 2012 impact of higher sales and margin improvement from production efficiencies related to the facility consolidation.
"The improved operational efficiencies resulting from our 2011 facility consolidation was evident this quarter as our gross margin improved to 26.7% from 25% in the prior year first quarter," commented David A. Bowers, President & CEO. "We are pleased that the first quarter of 2012 also saw organic sales growth in both our Security Products and Marine segments. Our focus on improving gross margin is especially important given current market conditions where demand is difficult to forecast. Overall, we are pleased with the start of 2012 and intend to continue our focus on cost as well as on new product introduction needed to aid growth as we move through the year."
CompX is a leading manufacturer of security products, furniture components and performance marine components. It operates from six locations in the U.S., Canada and Taiwan and employs approximately 800 people.
Statements in this release relating to matters that are not historical facts are forward-looking statements based upon management's belief and assumptions using 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 prove to 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 described in such forward-looking statements. While it is not possible to identify all factors, CompX continues to face many risks and uncertainties. Among the factors that could cause actual future results to differ materially include, but are not limited to, general economic and political conditions, changes in raw material and other operating costs, demand for office furniture, service industry employment levels, competitive products and prices, fluctuations in currency exchange rates, the introduction of trade barriers, potential difficulties in integrating completed acquisitions, the ability to sustain or increase operating income improvement resulting from cost control initiatives, uncertainties associated with the development of new product features and other risks and uncertainties detailed in CompX's Securities and Exchange Commission filings. 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 publicly update or revise such statements whether as a result of new information, future events or otherwise.
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COMPX INTERNATIONAL INC.
SUMMARY OF CONSOLIDATED OPERATIONS
(In millions, except per share amounts)
|Three months ended|
|Net sales||$ 34.8||$ 35.5|
|Cost of goods sold||26.1||26.0|
|Selling, general and administrative expense||6.2||6.6|
|Other operating income (expense):|
|Litigation settlement gain||7.5||-|
|Facility consolidation costs||(1.0)||-|
|Other non-operating expense, net||(0.1)||(0.2)|
|Income before income taxes||8.7||2.7|
|Provision for income taxes||4.7||1.2|
|Net income||$ 4.0||$ 1.5|
|Net income per diluted common share||$ 0.32||$ 0.12|
|Weighted average diluted common|
COMPX INTERNATIONAL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
|December 31,||March 31,|
|Cash and equivalents||$ 10.1||$ 4.2|
|Accounts receivable, net||14.2||15.5|
|Deferred income taxes and other||3.5||4.6|
|Total current assets||47.4||44.0|
|Net property and equipment||51.1||51.0|
|Assets held for sale||6.6||6.6|
|Total assets||$ 141.5||$ 138.0|
|Liabilities and Stockholders' Equity|
|Current maturities of long term debt||$ 1.0||$ 1.0|
|Accounts payable and accrued liabilities||16.3||13.1|
|Total current liabilities||18.8||14.8|
|Deferred income taxes||14.1||14.7|
|Other noncurrent liabilities||0.7||0.7|
|Total liabilities and stockholders' equity||$ 141.5||$ 138.0|
CONTACT: David A. Bowers, President & CEO, Tel. 864-286-1122
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.
Source: Compx International Inc via Thomson Reuters ONE