Form 8-K - Current report

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 earliest event reported)

February 28, 2024

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))

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

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. ☐

Item 2.02

Results of Operations and Financial Condition.

The registrant hereby furnishes the information set forth in its press release entitled “CompX Reports Fourth Quarter 2023 Results” that the registrant issued on February 28, 2024, a copy of which is attached hereto as Exhibit 99.1 and incorporated herein by reference.

The press release the registrant furnishes as Exhibit 99.1 to this current 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 7.01

Regulation FD Disclosure.

The registrant hereby furnishes the information set forth in its press release entitled “CompX Announces Increase in Quarterly Dividend” that the registrant also issued on February 28, 2024, a copy of which is attached hereto as Exhibit 99.2 and incorporated herein by reference.

The press release the registrant furnishes as Exhibit 99.2 to this current 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.

1
(d)	Exhibits

	Item No.	Description

	99.1	Press release dated February 28, 2024 entitled “CompX Reports Fourth Quarter 2023 Results” and issued by the registrant.

	99.2	Press release dated February 28, 2024 entitled “CompX Announces Increase in Quarterly Dividend” and issued by the registrant.

	104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

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/ Amy A. Samford
		Amy A. Samford
		Executive Vice President and
Date: February 28, 2024		Chief Financial Officer

COMPX REPORTS FOURTH QUARTER 2023 RESULTS

DALLAS, TEXAS … February 28, 2024 … CompX International Inc. (NYSE American: CIX) announced today sales of $43.2 million for the fourth quarter of 2023 compared to $40.0 million in the same period of 2022. Operating income was $7.4 million in the fourth quarter of 2023 compared to $5.4 million in the same period of 2022. Net income was $6.7 million, or $.54 per basic and diluted common share, for the fourth quarter of 2023 compared to $4.8 million, or $.39 per basic and diluted common share, in the same period of 2022.

Net sales for the year ended December 31, 2023 were $161.3 million compared to $166.6 million in the previous year. Operating income was $25.4 million for each of the years ended December 31, 2023 and December 31, 2022. Net income for the year ended December 31, 2023 was $22.6 million, or $1.84 per basic and diluted common share, compared to $20.9 million, or $1.69 per basic and diluted common share, for the same period in 2022.

Net sales increased in the fourth quarter of 2023 compared to the same period in 2022 primarily due to higher Security Products sales related to a pilot project for a government security customer, partially offset by lower Marine Components sales primarily to the towboat market. Operating income increased in the fourth quarter of 2023 compared to the same period in 2022 due to higher sales and improved gross margin percentage at Security Products, partially offset by lower Marine Components sales and gross margin percentage. Net sales decreased for the full year of 2023 compared to the same period in 2022 due to lower Marine Components sales predominantly to the towboat market, partially offset by higher Security Products sales to the government security market largely in the fourth quarter related to the pilot project noted above. Operating income for the full year of 2023 was comparable to 2022 as lower Marine Components sales were offset by higher gross margin percentages across both segments, primarily due to lower production costs, and higher Security Products sales.

CompX is a leading manufacturer of security products and recreational marine components. It operates from three locations in the U.S. and employs approximately 555 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.

-1-

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, safety, sustainability or other regulations,

General global economic and political conditions that disrupt our supply chain, reduce demand or perceived demand for component products 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),

●

Operating interruptions (including, but not limited to labor disputes, leaks, natural disasters, fires, explosions, unscheduled or unplanned downtime, transportation interruptions, certain regional and world events or economic conditions and public health crises);

●

Technology related disruptions (including, but not limited to, cyber-attacks; software implementation, upgrades or improvements; technology processing failures; or other events) related to our technology infrastructure that could impact our ability to continue operations, or at key vendors which could impact our supply chain, or at key customers which could impact their operations and cause them to curtail or pause orders; and

Possible disruption of our business or increases in the cost of doing business resulting from terrorist activities or global conflicts.

-2-

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. Hanley

Senior Vice President and Treasurer

Tel. 972-233-1700

* * * * *

-3-

COMPX INTERNATIONAL INC.

SUMMARY OF CONSOLIDATED OPERATIONS

(In millions, except per share amounts)


	Three months ended				Year ended
	December 31,				December 31,
	2022		2023		2022		2023

	(Unaudited)
Net sales	$	40.0	$	43.2	$	166.6	$	161.3
Cost of sales		28.9		29.6		117.8		112.1
Gross margin		11.1		13.6		48.8		49.2
Selling, general and administrative expense		5.7		6.2		23.4		23.8
Operating income		5.4		7.4		25.4		25.4
Interest income		.8		1.2		1.9		4.2
Income before taxes		6.2		8.6		27.3		29.6
Income tax expense		1.4		1.9		6.4		7.0
Net income	$	4.8	$	6.7	$	20.9	$	22.6

Basic and diluted net income per common share	$	.39	$	.54	$	1.69	$	1.84
Weighted average diluted common shares outstanding		12.3		12.3		12.3		12.3

-4-

COMPX ANNOUNCES INCREASE IN QUARTERLY DIVIDEND

DALLAS, TEXAS . . . February 28, 2024 . . . CompX International Inc. (NYSE American: CIX) announced today a $0.05 per share increase in its regular quarterly dividend. CompX’s board of directors has declared a regular quarterly dividend of thirty cents ($0.30) per share on its class A common stock, payable on March 19, 2024 to stockholders of record at the close of business on March 11, 2024.

CompX is a leading manufacturer of security products and recreational marine components.

* * * *

Investor Relations Contact

Bryan A. Hanley

Senior Vice President and Treasurer

Tel. 972-233-1700

Document and Entity Information	Feb. 28, 2024
Document and Entity Information [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Feb. 28, 2024
Entity Registrant Name	CompX International Inc.
Entity Incorporation, State or Country Code	DE
Entity File Number	1-13905
Entity Tax Identification Number	57-0981653
Entity Address, Address Line One	5430 LBJ Freeway
Entity Address, Adress Line Two	Suite 1700
Entity Address, City or Town	Dallas
Entity Address State Or Province	TX
Entity Address, Postal Zip Code	75240-2620
City Area Code	972
Local Phone Number	448-1400
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Entity Central Index Key	0001049606
Title of 12(b) Security	Class A common stock
Trading Symbol	CIX
Security Exchange Name	NYSEAMER