Compx International Inc 10-Q for FY2024 Q3

Compx International Inc (CIX)

10-Q 2024-11-06 For: 2024-09-30

Added on April 08, 2026

About this 10-Q

Compx International Inc filed this 10-Q on November 6, 2024, covering the quarter ended September 30, 2024 (FY2024 Q3).

Headline figures

Quarter ended September 30, 2024, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $33.67M; down 16.6% from $40.36M a year earlier
Net income: $3.48M; down 39.6% from net income of $5.76M a year earlier
Diluted EPS: $0.28; down 40.4% from $0.47 a year earlier


Item No.		Exhibit Index

31.1		Certification
31.2		Certification
32.1		Certification
101.INS		Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH		Inline XBRL Taxonomy Extension Schema
101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase
101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase
101.LAB		Inline XBRL Taxonomy Extension Label Linkbase
101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase
104		Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)

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DELAWARE		57-0981653
(State or other jurisdiction of incorporation or organization)		(IRS Employer Identification No.)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A common stock	CIX	NYSE American


Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☐
Emerging growth company	☐


		Page
Part I.	FINANCIAL INFORMATION
Item 1.	Financial Statements

	Condensed Consolidated Balance Sheets – December 31, 2023 and September 30, 2024 (unaudited)	- 3 -

	Condensed Consolidated Statements of Income and Comprehensive Income (unaudited) – Three and nine months ended September 30, 2023 and 2024	- 4 -

	Condensed Consolidated Statements of Stockholders’ Equity (unaudited) – Three and nine months ended September 30, 2023 and 2024	- 5 -

	Condensed Consolidated Statements of Cash Flows (unaudited) – Nine months ended September 30, 2023 and 2024	- 6 -

	Notes to Condensed Consolidated Financial Statements (unaudited)	- 7 -

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	- 12 -

Item 3.	Quantitative and Qualitative Disclosure About Market Risk	- 18 -

Item 4.	Controls and Procedures	- 18 -

Part II.	OTHER INFORMATION

Item 1.	Legal Proceedings	- 20 -

Item 1A.	Risk Factors	- 20 -

Item 6.	Exhibits	- 20 -


	December 31,		September 30,
ASSETS	2023		2024
			(unaudited)
Current assets:
Cash and cash equivalents	$	41,393	$	58,788
Marketable securities		35,354		—
Accounts receivable, net		17,061		14,458
Inventories, net		30,712		28,008
Prepaid expenses and other		2,110		2,245
Total current assets		126,630		103,499

Other assets:
Note receivable from affiliate		10,600		7,900
Goodwill		23,742		23,742
Other noncurrent assets		769		704
Total other assets		35,111		32,346

Property and equipment:
Land		5,390		5,390
Buildings		23,239		23,262
Equipment		74,315		75,334
Construction in progress		676		527
		103,620		104,513
Less accumulated depreciation		77,757		80,252
Net property and equipment		25,863		24,261
Total assets	$	187,604	$	160,106

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
Accounts payable and accrued liabilities	$	15,745	$	13,074
Income taxes payable to affiliate		1,460		694
Total current liabilities		17,205		13,768

Noncurrent liabilities:
Deferred income taxes		1,509		972
Other		41		36
Total noncurrent liabilities		1,550		1,008

Stockholders' equity:
Preferred stock		—		—
Class A common stock		123		123
Additional paid-in capital		53,275		53,396
Retained earnings		115,457		91,811
Accumulated other comprehensive loss - unrealized loss on marketable securities		(6)		—
Total stockholders' equity		168,849		145,330
Total liabilities and stockholders’ equity	$	187,604	$	160,106


	Three months ended				Nine months ended
	September 30,				September 30,
	2023		2024		2023		2024

	(unaudited)
Net sales	$	40,355	$	33,667	$	118,122	$	107,525
Cost of sales		27,736		24,199		82,526		77,225
Gross margin		12,619		9,468		35,596		30,300
Selling, general and administrative expense		6,074		6,119		17,644		18,155
Operating income		6,545		3,349		17,952		12,145
Interest income		1,064		1,235		3,003		3,754
Income before income taxes		7,609		4,584		20,955		15,899
Provision for income taxes		1,852		1,106		5,058		3,823
Net income	$	5,757	$	3,478	$	15,897	$	12,076

Other comprehensive income (loss), marketable securities adjustment:
Unrealized income (loss) arising during year, net		30		1		(72)		6
Comprehensive income	$	5,787	$	3,479	$	15,825	$	12,082

Basic and diluted net income per common share	$	.47	$	.28	$	1.29	$	.98

Basic and diluted weighted average shares outstanding		12,314		12,319		12,310		12,316


	Three months ended September 30, 2023 and 2024 (unaudited)
							Accumulated
	Class A		Additional				other		Total
	common		paid-in		Retained		comprehensive		stockholders'
	stock		capital		earnings		loss		equity
Balance at June 30, 2023	$	123	$	53,275	$	109,160	$	(119)	$	162,439
Net income		—		—		5,757		—		5,757
Cash dividends ($.25 per share)		—		—		(3,078)		—		(3,078)
Other comprehensive income		—		—		—		30		30
Balance at September 30, 2023	$	123	$	53,275	$	111,839	$	(89)	$	165,148

Balance at June 30, 2024	$	123	$	53,396	$	116,665	$	(1)	$	170,183
Net income		—		—		3,478		—		3,478
Cash dividends ($2.30 per share)		—		—		(28,332)		—		(28,332)
Other comprehensive income		—		—		—		1		1
Balance at September 30, 2024	$	123	$	53,396	$	91,811	$	—	$	145,330


	Nine months ended September 30, 2023 and 2024 (unaudited)
							Accumulated
	Class A		Additional				other		Total
	common		paid-in		Retained		comprehensive		stockholders'
	stock		capital		earnings		loss		equity
Balance at December 31, 2022	$	123	$	53,155	$	105,175	$	(17)	$	158,436
Net income		—		—		15,897		—		15,897
Issuance of common stock		—		120		—		—		120
Cash dividends ($.75 per share)		—		—		(9,233)		—		(9,233)
Other comprehensive loss		—		—		—		(72)		(72)
Balance at September 30, 2023	$	123	$	53,275	$	111,839	$	(89)	$	165,148

Balance at December 31, 2023	$	123	$	53,275	$	115,457	$	(6)	$	168,849
Net income		—		—		12,076		—		12,076
Issuance of common stock		—		121		—		—		121
Cash dividends ($2.90 per share)		—		—		(35,722)		—		(35,722)
Other comprehensive income		—		—		—		6		6
Balance at September 30, 2024	$	123	$	53,396	$	91,811	$	—	$	145,330


			Amortized		Unrealized
	Market value		cost basis		loss, net

	(In thousands)
December 31, 2023:
Current assets	$	35,354	$	35,359	$	(5)

September 30, 2024:
Current assets	$	—	$	—	$	—


	COMPX INTERNATIONAL INC.
	(Registrant)

Date: November 6, 2024	By:	/s/ Amy A. Samford
		Amy A. Samford
		Executive Vice President and Chief Financial Officer


	By:	/s/ Amy E. Ruf
		Amy E. Ruf
		Vice President and Controller

By:	/s/ Scott C. James
	Scott C. James
	President and Chief Executive Officer


	Nine months ended
	September 30,
	2023		2024

	(unaudited)
Cash flows from operating activities:
Net income	$	15,897	$	12,076
Depreciation and amortization		2,996		2,763
Deferred income taxes		(556)		(539)
Noncash interest income		(1,397)		(639)
Other, net		332		339
Change in assets and liabilities:
Accounts receivable, net		(1,900)		2,595
Inventories, net		(3,199)		2,494
Accounts payable and accrued liabilities		(526)		(2,634)
Accounts with affiliates		316		(766)
Prepaids and other, net		(194)		(78)
Net cash provided by operating activities		11,769		15,611

Cash flows from investing activities:
Capital expenditures		(564)		(1,194)
Marketable securities:
Purchases		(36,325)		—
Proceeds from maturities		24,000		36,000
Note receivable from affiliate:
Collections		21,900		20,400
Advances		(20,700)		(17,700)
Net cash provided by (used in) investing activities		(11,689)		37,506

Cash flows from financing activities -
Dividends paid		(9,233)		(35,722)

Cash and cash equivalents - net change from:
Operating, investing and financing activities		(9,153)		17,395
Balance at beginning of period		26,748		41,393
Balance at end of period	$	17,595	$	58,788

Supplemental disclosures -
Cash paid for income taxes	$	5,315	$	5,154


	December 31,		September 30,
	2023		2024

	(In thousands)
Raw materials:
Security Products	$	3,569	$	4,178
Marine Components		2,169		1,522
Total raw materials		5,738		5,700
Work-in-process:
Security Products		13,879		12,880
Marine Components		5,163		4,550
Total work-in-process		19,042		17,430
Finished goods:
Security Products		3,175		2,801
Marine Components		2,757		2,077
Total finished goods		5,932		4,878
Total inventories, net	$	30,712	$	28,008


	December 31,		September 30,
	2023		2024

	(In thousands)
Accounts payable:
Security Products	$	2,514	$	2,550
Marine Components		634		586
Corporate		—		13
Payable to affiliate - Contran		—		142
Employee benefits		10,712		7,834
Deferred revenue		559		98
Insurance		289		311
Taxes other than on income		285		512
Advances from customers		267		97
Customer tooling		145		255
Professional services		—		270
Other		340		406
Total accounts payable and accrued liabilities	$	15,745	$	13,074


	Three months ended								Nine months ended
	September 30,						%		September 30,						%
	2023			2024			Change		2023			2024			Change

	(Dollars in thousands)								(Dollars in thousands)
Security Products:
Net sales	$	31,376		$	26,567		(15)	%	$	84,390		$	84,667		—	%
Cost of sales		21,347			18,486		(13)			58,475			58,862		1
Gross margin		10,029			8,081		(19)			25,915			25,805		—
Operating costs and expenses		3,533			3,528		—			9,906			10,360		5
Operating income	$	6,496		$	4,553		(30)		$	16,009		$	15,445		(4)

Gross margin		32.0	%		30.4	%				30.7	%		30.5	%
Operating income margin		20.7			17.1					19.0			18.2