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PRESS RELEASE
FOR IMMEDIATE RELEASE: CONTACT:
CompX International Inc. David A. Bowers
5430 LBJ Freeway, Suite 1700 President & CEO
Dallas, Texas 75240 Tel. 864-286-1122
COMPX REPORTS SALES, PROFITS
FOR SECOND QUARTER 2005
Dallas, TEXAS ... August 2, 2005 ... CompX International Inc. (NYSE: CIX)
announced today sales of $45.7 million for the second quarter of 2005, compared
to $46.2 million in the second quarter of 2004. Operating income was $4.7
million in the second quarter of 2005 compared to $4.8 million in the second
quarter of 2004. Income from continuing operations for the second quarter of
2005 was $2.4 million, or $0.16 per diluted share, compared to $3.0 million, or
$0.20 per diluted share, in the second quarter of 2004.
Net sales for the six-month period ended June 30, 2005 increased to $92.6
million from $89.8 million for same period of the previous year. Income from
continuing operations for the six-month period in 2005 was $4.6 million, or
$0.30 per diluted share, compared to $4.5 million, or $0.30 per diluted share in
2004. Sales and operating income comparisons were impacted by the net effects of
higher selling prices for certain products across all segments and lower sales
volumes for certain products. Due to certain limitations on the ability to
utilize foreign tax credits, the Company's effective income tax rate was higher
in the first six months of 2005 as compared to the same period of 2004.
"While we continue to see economic recovery progressing in the majority of the
markets we serve, competition from low priced Asian based manufacturers remains
a challenge," commented David A. Bowers, President & CEO. "Our ongoing focus on
strengthening our sales process as well as cost control and production
efficiency efforts is expected to continue to support our profitability as we
explore lower manufacturing cost alternatives to address the high volume, low
price segment of the business."
Mr. Bowers concluded, "Management's effort to identify new opportunities for
growth and diversification is progressing with the completion of a relatively
small acquisition in August. Our significant cash position, as well as borrowing
availability under our credit agreement, provides the liquidity to take
advantage of additional opportunities as they are identified."
CompX is a leading manufacturer of precision ball bearing slides, security
products and ergonomic computer support systems. It operates from seven
locations in the U.S., Canada and Taiwan and employs more than 1,300 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, 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 timing and amount of future cost savings from
restructuring actions, the ability to sustain or increase operating income
improvement resulting from cost control initiatives, uncertainties associated
with new product development and other risks and uncertainties detailed in
CompX's Securities and Exchange Commission filings. Should one or more of these
risks materialize (or the consequences of such a development worsen), or should
the underlying assumptions prove incorrect, actual results could differ
materially from those forecast 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 OF CONSOLIDATED OPERATIONS
(In millions, except per share amounts)
(Unaudited)
Three months ended Six months ended
June 30, June 30,
2004 2005 2004 2005
------------------------ ------------------------
Net sales $ 46.2 $ 45.7 $ 89.8 $ 92.6
Cost of goods sold 35.3 35.2 70.5 71.8
------------------------ -----------------------
Gross profit 10.9 10.5 19.3 20.8
Selling, general and administrative 6.1 5.8 12.2 11.9
------------------------ -----------------------
Operating income 4.8 4.7 7.1 8.9
Interest expense (0.1) - (0.4) (0.1)
Other income, net 0.6 0.1 1.3 0.2
------------------------ ----------------------
Income from continuing operations
before income taxes 5.3 4.8 8.0 9.0
Income tax expense 2.3 2.4 3.5 4.4
------------------------ -----------------------
Income from continuing operations 3.0 2.4 4.5 4.6
Discontinued operations, net of tax 0.3 - 0.3 (0.5)
------------------------ ------------------------
Net income $ 3.3 $ 2.4 $ 4.8 $ 4.1
======================== =======================
Net income per diluted common share
Continuing operations $ 0.20 $ 0.16 $ 0.30 $ 0.30
Discontinued operations 0.02 - 0.02 (0.03)
------------------------ ------------------------
$ 0.22 $ 0.16 $ 0.32 $ 0.27
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Weighted average diluted common
shares outstanding 15.2 15.2 15.1 15.2
======================== =======================
COMPX INTERNATIONAL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
December 31, June 30,
2004 2005
----------------- --------------
Assets (Unaudited)
Current assets:
Cash and equivalents $ 16.8 $ 33.1
Accounts receivable, net 19.2 21.3
Inventories 20.8 19.9
Prepaid expenses and other 2.1 4.3
Deferred income taxes 1.4 1.5
Assets held for sale 18.0 -
----------- -----------
Total current assets 78.3 80.1
Intangibles 30.7 32.2
Net property and equipment 66.1 67.9
Note receivable - 2.9
Assets held for sales 11.0 -
Other assets 0.2 0.1
----------- -----------
Total assets $ 186.3 $ 183.2
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Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued liabilities $ 18.3 $ 19.5
Accrued income taxes and other 2.7 0.8
Liabilities related to assets held for sale 5.0 -
----------- -----------
Total current liabilities 26.0 20.3
Other non-current liabilities 0.1 0.1
Deferred income taxes 4.9 6.4
Stockholders' equity 155.3 156.4
----------- -----------
Total liabilities and stockholders' equity $ 186.3 $ 183.2
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