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PRESS RELEASE
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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 FIRST QUARTER 2006 RESULTS
Dallas, TEXAS ... May 4, 2006 ... CompX International Inc. (NYSE: CIX) announced
today sales of $47.0 million for the first quarter of 2006 compared to $46.8
million in the same period of 2005. Operating income was $4.8 million in the
first quarter of 2006 compared to $4.1 million in the same period of 2005. Net
sales comparisons were positively impacted by additional sales volume resulting
from the acquisition of a small components business in August 2005 and volume
increases within security products which were partially offset by sales
decreases in furniture components. Operating income comparisons were primarily
impacted by the small acquisition referred to above, a more favorable product
mix and continued benefit of cost improvement initiatives. Earnings per share
from continuing operations for the first quarter of 2006 was $0.16 compared to
$0.14 in the same period of 2005.
"Our ongoing efforts focusing on replacing sales of low margin, commodity type
products with sales of higher margin feature-oriented products contributed to
our gross margin improvement from 22% in the first quarter of 2005 to 25% in the
first quarter of 2006," commented David A. Bowers, President & CEO. "While we
expect to experience continued competitive challenges, especially considering
the volatility of increasing raw material costs, we will continue our efforts in
areas where we have been successful historically including improving operational
efficiencies and developing value-added solutions for our customers."
CompX is a leading manufacturer of security products and furniture components.
It operates from eight locations in the U.S., Canada and Taiwan and employs more
than 1,200 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
March 31,
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2005 2006
Net sales $ 46.8 $ 47.0
Cost of goods sold 36.5 35.4
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Gross margin 10.3 11.6
Selling, general and administrative 6.1 6.7
Other operating expense .1 0.1
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Operating income 4.1 4.8
Interest expense - (0.1)
Other general corporate income 0.2 0.4
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Income from continuing operations
before income taxes 4.3 5.1
Income tax expense 2.1 2.6
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Income from continuing operations 2.2 2.5
Discontinued operations, net of tax (0.5) -
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Net income $ 1. 7 $ 2.5
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Net income per diluted common share
Continuing operations $ 0.14 $ 0.16
Discontinued operations (0.03) -
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$ 0.11 $ 0.16
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Weighted average diluted common
shares outstanding 15. 2 15.2
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COMPX INTERNATIONAL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
December 31, March 31,
2005 2006
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(Unaudited)
Assets
Current assets:
Cash and equivalents $ 30.6 $ 28.5
Accounts receivable, net 20.6 22.7
Inventories 22.5 22.0
Prepaid expenses and other 4.5 4.1
Note receivable 2.6 2.6
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Total current assets 80.8 79.9
Intangibles 38.0 38.0
Net property and equipment 68.0 68.1
Other assets 1.8 1.9
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Total assets $ 188.6 $ 187.9
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Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued liabilities $ 19.2 $ 17.3
Income taxes 1.1 2.3
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Total current liabilities 20.3 19.6
Long-term debt 1.5 -
Deferred income taxes 16.7 17.4
Stockholders' equity 150.1 150.9
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Total liabilities and stockholders' equity $ 188.6 $ 187.9
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