Compx International Inc 10-Q for FY2022 Q2

Compx International Inc (CIX)

10-Q 2022-08-02 For: 2022-06-30

Added on April 08, 2026

About this 10-Q

Compx International Inc filed this 10-Q on August 2, 2022, covering the quarter ended June 30, 2022 (FY2022 Q2).

Headline figures

Quarter ended June 30, 2022, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $41.68M; up 15.0% from $36.25M a year earlier
Net income: $6.18M; up 33.7% from net income of $4.62M a year earlier
Diluted EPS: $0.50; up 35.1% from $0.37 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, 2021 and June 30, 2022 (unaudited)	- 3 -

	Condensed Consolidated Statements of Income (unaudited) – Three and six months ended June 30, 2021 and 2022	- 4 -

	Condensed Consolidated Statements of Stockholders’ Equity (unaudited) – Three and six months ended June 30, 2021 and 2022	- 5 -

	Condensed Consolidated Statements of Cash Flows (unaudited) – Six months ended June 30, 2021 and 2022	- 6 -

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

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	- 11 -

Item 3.	Quantitative and Qualitative Disclosure About Market Risk	- 17 -

Item 4.	Controls and Procedures	- 17 -

Part II.	OTHER INFORMATION

Item 1A.	Risk Factors	- 18 -

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	- 18 -

Item 6.	Exhibits	- 18 -


	December 31,		June 30,
ASSETS	2021		2022
			(unaudited)
Current assets:
Cash and cash equivalents	$	76,579	$	70,057
Accounts receivable, net		15,546		17,573
Inventories, net		25,642		33,303
Prepaid expenses and other		2,464		3,779
Total current assets		120,231		124,712

Other assets:
Note receivable from affiliate		18,700		16,600
Goodwill		23,742		23,742
Other noncurrent		597		590
Total other assets		43,039		40,932

Property and equipment:
Land		5,071		5,071
Buildings		23,161		23,174
Equipment		70,664		72,754
Construction in progress		2,028		1,389
		100,924		102,388
Less accumulated depreciation		71,742		72,929
Net property and equipment		29,182		29,459
Total assets	$	192,452	$	195,103

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	14,724	$	15,183
Income taxes payable to affiliate		1,722		1,055
Total current liabilities		16,446		16,238

Noncurrent liabilities - deferred income taxes		2,918		2,432

Stockholders' equity:
Preferred stock		—		—
Class A common stock		124		123
Additional paid-in capital		54,780		53,155
Retained earnings		118,184		123,155
Total stockholders' equity		173,088		176,433
Total liabilities and stockholders’ equity	$	192,452	$	195,103


	Three months ended				Six months ended
	June 30,				June 30,
	2021		2022		2021		2022

	(unaudited)
Net sales	$	36,253	$	41,675	$	72,177	$	83,725
Cost of sales		24,947		28,046		49,836		58,016
Gross margin		11,306		13,629		22,341		25,709
Selling, general and administrative expense		5,548		5,884		10,766		11,658
Operating income		5,758		7,745		11,575		14,051
Interest income		318		337		656		551
Income before income taxes		6,076		8,082		12,231		14,602
Provision for income taxes		1,456		1,906		2,926		3,442
Net income	$	4,620	$	6,176	$	9,305	$	11,160

Basic and diluted net income per common share	$	.37	$	.50	$	.75	$	.90

Basic and diluted weighted average shares outstanding		12,403		12,367		12,423		12,374


	Three months ended June 30, 2021 and 2022 (unaudited)
	Class A		Additional						Total
	common		paid-in		Retained		Treasury		stockholders'
	stock		capital		earnings		stock		equity
Balance at March 31, 2021	$	124	$	55,232	$	113,740	$	—	$	169,096
Net income		—		—		4,620		—		4,620
Issuance of common stock		—		104		—		—		104
Cash dividends ($.20 per share)		—		—		(2,481)		—		(2,481)
Balance at June 30, 2021	$	124	$	55,336	$	115,879	$	—	$	171,339

Balance at March 31, 2022	$	124	$	54,780	$	120,073	$	—	$	174,977
Net income		—		—		6,176		—		6,176
Issuance of common stock		—		118		—		—		118
Treasury stock:
Acquired		—		—		—		(1,744)		(1,744)
Retired		(1)		(1,743)		—		1,744		—
Cash dividends ($.25 per share)		—		—		(3,094)		—		(3,094)
Balance at June 30, 2022	$	123	$	53,155	$	123,155	$	—	$	176,433


	Six months ended June 30, 2021 and 2022 (unaudited)
	Class A		Additional						Total
	common		paid-in		Retained		Treasury		stockholders'
	stock		capital		earnings		stock		equity
Balance at December 31, 2020	$	124	$	55,987	$	111,545	$	—	$	167,656
Net income		—		—		9,305		—		9,305
Issuance of common stock		—		104		—		—		104
Treasury stock:
Acquired		—		—		—		(755)		(755)
Retired		—		(755)		—		755		—
Cash dividends ($.40 per share)		—		—		(4,971)		—		(4,971)
Balance at June 30, 2021	$	124	$	55,336	$	115,879	$	—	$	171,339

Balance at December 31, 2021	$	124	$	54,780	$	118,184	$	—	$	173,088
Net income		—		—		11,160		—		11,160
Issuance of common stock		—		118		—		—		118
Treasury stock:
Acquired		—		—		—		(1,744)		(1,744)
Retired		(1)		(1,743)		—		1,744		—
Cash dividends ($.50 per share)		—		—		(6,189)		—		(6,189)
Balance at June 30, 2022	$	123	$	53,155	$	123,155	$	—	$	176,433


Period	Total number of shares purchased (1)	Average price paid per share	Total number of shares purchased as part of the publicly announced plan	Maximum number of shares that may yet be purchased under the publicly announced plan
5/9/22 – 6/5/22	8,900 (2)	$21.94	8,900	593,647
6/6/22 – 7/3/22	70,000 (3)	22.10	78,900	523,647


	COMPX INTERNATIONAL INC.
	(Registrant)

Date: August 2, 2022	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


	Six months ended
	June 30,
	2021		2022

	(unaudited)
Cash flows from operating activities:
Net income	$	9,305	$	11,160
Depreciation and amortization		1,900		1,956
Deferred income taxes		467		(486)
Other, net		185		201
Change in assets and liabilities:
Accounts receivable, net		(5,910)		(2,033)
Inventories, net		(1,691)		(7,735)
Accounts payable and accrued liabilities		(393)		446
Accounts with affiliates		112		(667)
Prepaids and other, net		(414)		(1,316)
Net cash provided by operating activities		3,561		1,526

Cash flows from investing activities:
Capital expenditures		(1,598)		(2,215)
Note receivable from affiliate:
Collections		22,200		12,400
Advances		(18,700)		(10,300)
Net cash provided by (used in) investing activities		1,902		(115)

Cash flows from financing activities:
Dividends paid		(4,971)		(6,189)
Treasury stock acquired		(755)		(1,744)
Net cash used in financing activities		(5,726)		(7,933)

Cash and cash equivalents - net change from:
Operating, investing and financing activities		(263)		(6,522)
Balance at beginning of period		70,637		76,579
Balance at end of period	$	70,374	$	70,057

Supplemental disclosures -
Cash paid for income taxes	$	2,439	$	4,603


	December 31,		June 30,
	2021		2022

	(In thousands)
Accounts receivable, net:
Security Products	$	12,896	$	13,735
Marine Components		2,720		3,908
Allowance for doubtful accounts		(70)		(70)
Total accounts receivable, net	$	15,546	$	17,573


	December 31,		June 30,
	2021		2022

	(In thousands)
Raw materials:
Security Products	$	3,640	$	4,691
Marine Components		1,402		2,558
Total raw materials		5,042		7,249
Work-in-process:
Security Products		12,721		15,017
Marine Components		4,046		5,941
Total work-in-process		16,767		20,958
Finished goods:
Security Products		2,271		3,111
Marine Components		1,562		1,985
Total finished goods		3,833		5,096
Total inventories, net	$	25,642	$	33,303


	December 31,		June 30,
	2021		2022

	(In thousands)
Accounts payable:
Security Products	$	2,594	$	4,484
Marine Components		814		1,936
Accrued liabilities:
Employee benefits		9,797		7,165
Customer tooling		516		617
Taxes other than on income		391		418
Insurance		208		191
Other		404		372
Total accounts payable and accrued liabilities	$	14,724	$	15,183