2013-03-06 23:06:06 -
DALLAS, TEXAS ... March 6, 2013 ... CompX International Inc. (NYSE MKT: CIX)
announced today sales relating to continuing operations of $19.3 million for the
fourth quarter of 2012 compared to $18.7 million in the same period of 2011.
Operating income relating to continuing operations was nil in the fourth
quarter of 2012 compared to $1.4 million in the same period in 2011. Income
from continuing operations after tax was $600,000 for each of the fourth
quarters of 2012 and 2011, or $0.05 per diluted share.
Net sales relating to continuing operations for the
year ended December
31, 2012 were $83.2 million compared to $79.8 million in the previous year.
Operating income relating to continuing operations was $5.4 million for the year
ended December 31, 2012 compared to $6.4 million for 2011. Income from
continuing operations after tax was $3.5 million each of the years ended
December 31, 2012 and 2011, or $0.28 per diluted share.
Net sales relating to continuing operations increased for both the fourth
quarter and full year of 2012 primarily due to general growth in customer demand
across most of our markets. Operating income decreased for the fourth quarter
of 2012 primarily due to the net effects of:
* A loss on the disposal of assets held for sale in 2012 of approximately
$757,000;
* Higher self-insured medical costs for the quarter of approximately $302,000;
* An increase in administrative support costs related to the higher sales and
higher carrying costs associated with the assets held for sale; and
* The positive impact of an increase in 2012 sales noted above.
The decrease in operating income for the year ended December 31, 2012 compared
to the same period in 2011 is primarily due to the net effects of:
* Higher self-insured medical costs for the year of approximately $925,000;
* An increase in administrative support costs related to the higher sales and
higher carrying costs associated with the assets held for sale; and
* The positive impact of an increase in 2012 sales noted above.
On December 28, 2012, we completed the sale of our Furniture Components segment
for proceeds (net of expenses) of approximately $58.0 million in cash. We
recognized a pre-tax gain of approximately $29.6 million on the disposal of
these operations ($27.6 million, or $2.23 per diluted share, net of income taxes
of approximately $1.9 million). Discontinued operations also include net-of-tax
income from the operations of the disposed unit of $500,000 and $400,000 for
2012 and 2011 fourth quarters, respectively, and $3.8 million and $4.2 million
for the full year 2012 and 2011, respectively. We have reclassified our
Summary Consolidated Statements of Income to reflect the disposed business as
discontinued operations for all periods presented.
"We are pleased with our overall sales growth of 4% for the full year, as we
continue to achieve a growth rate above the overall improvement in the U.S.
economy. At the operating income level, the comparison of our full year results
to the prior year was impacted by $925,000 in higher self-insured medical costs,
which is a function of 2011 being exceptionally low with 2012 being more in line
with our historical average," commented David A. Bowers, President & CEO.
"A
significant accomplishment this year was completing the sale of our Furniture
Components segment. We believe the disposal of our Furniture Components segment
will enable us to focus more effort on continuing to develop our Security
Products and Marine businesses where we believe there is greater opportunity for
higher returns with less income volatility, especially volatility relating to
commodity raw materials. Looking forward to 2013, we do not expect a
significant change in the overall economic environment, but we expect to
continue to grow our top and bottom lines through introduction of new product
features as well as expansion into additional markets as we vigilantly manage
our costs."
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
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,
competitive products and prices, uncertainties associated with the development
of new product features, potential difficulties in integrating future
acquisitions, the ability to sustain or increase operating income improvement
resulting from cost control initiatives, the impact of employee healthcare
benefit related regulations, potential difficulties with implementing new
enterprise wide software, 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.
COMPX INTERNATIONAL INC.
SUMMARY CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share amounts)
Three months ended Year ended
December 31, December 31,
---------------------------- --------------------------
2011 2012 2011 2012
-------------- ------------- -------------- -----------
(Unaudited)
Net sales $ 18.7 $ 19.3 $ 79.8 $
83.2
Cost of goods sold 13.2 13.8 55.7
58.9
-------------- ------------- -------------- -----------
Gross profit 5.5 5.5 24.1
24.3
Selling, general and 4.1 4.7 16.6
administrative expense 17.7
Write-down and loss on
disposal of
assets held for sale 0.8
- 1.1 1.2
Operating income 1.4
- 6.4 5.4
Other non-operating (0.1) (0.1)
expenses, net (0.4) (0.5)
-------------- ------------- -------------- -----------
Income from continuing
operations
before taxes 1.3 (0.1)
6.0 4.9
Provision (benefit) for 0.7 (0.7)
income taxes 2.5 1.4
-------------- ------------- -------------- -----------
Income from continuing 0.6 0.6
operations 3.5 3.5
Discontinued operations,
net of tax:
Income from operations 0.4 0.5
4.2 3.8
Gain on disposal of 27.6
discontinued operations - - 27.6
-------------- ------------- -------------- -----------
Net income $ 1.0 $ 28.7 $ 7.7 $
34.9
-------------- ------------- -------------- -----------
Net income per diluted
common share:
Continuing operations $ 0.05 $ 0.05 $ 0.28 $
0.28
Discontinued
operations:
Income from 0.03 0.04 0.34
operations 0.31
Gain on disposal of 2.23
discontinued operations - - 2.23
-------------- ------------- -------------- -----------
Net income $ 0.08 $ 2.32 $ 0.62 $
2.82
-------------- ------------- -------------- -----------
Weighted average diluted
common
shares outstanding 12.4 12.4 12.4
12.4
-------------- ------------- -------------- -----------
COMPX INTERNATIONAL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
December 31, December 31,
2011 2012
-------------------------- ----------------------
Assets
Current assets:
Cash and equivalents $ 10.1
$ 63.8
Accounts receivable, net 14.2
8.5
Inventories, net 19.6
11.2
Deferred income taxes and 3.5
7.1
other
-------------------------- ----------------------
Total current assets 47.4
90.6
Intangibles 36.3
23.9
Net property and equipment 51.1
33.7
Assets held for sale 6.6
2.0
Other assets 0.1
-
-------------------------- ----------------------
Total assets $ 141.5
$ 150.2
-------------------------- ----------------------
Liabilities and Stockholders'
Equity
Current liabilities:
Current maturities of long- $ 1.0
$ 1.0
term debt
Accounts payable and accrued 16.3
11.1
liabilities
Income taxes 1.5
12.2
Other -
0.1
-------------------------- ----------------------
Total current liabilities 18.8
24.4
Long-term debt 23.2
17.5
Deferred income taxes 14.1
6.2
Other noncurrent liabilities 0.7
-
Stockholders' equity 84.7
102.1
-------------------------- ----------------------
Total liabilities and $ 141.5
$ 150.2
stockholders' equity
-------------------------- ----------------------
Contact: David A. Bowers, President & CEO, 864-286-1122
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. 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
[HUG#1683561]
