Compx International Inc 10-Q for FY2024 Q2

Compx International Inc (CIX)

10-Q 2024-08-06 For: 2024-06-30

Added on April 08, 2026

About this 10-Q

Compx International Inc filed this 10-Q on August 6, 2024, covering the quarter ended June 30, 2024 (FY2024 Q2).

Headline figures

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

Revenue: $35.89M; down 2.0% from $36.62M a year earlier
Net income: $4.84M; up 19.0% from net income of $4.07M a year earlier
Diluted EPS: $0.39; up 18.2% from $0.33 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 June 30, 2024 (unaudited)	- 3 -

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

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

	Condensed Consolidated Statements of Cash Flows (unaudited) –Six months ended June 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,		June 30,
ASSETS	2023		2024
			(unaudited)
Current assets:
Cash and cash equivalents	$	41,393	$	70,172
Marketable securities		35,354		11,934
Accounts receivable, net		17,061		15,435
Inventories, net		30,712		27,363
Prepaid expenses and other		2,110		1,768
Total current assets		126,630		126,672

Other assets:
Note receivable from affiliate		10,600		9,200
Goodwill		23,742		23,742
Other noncurrent assets		769		723
Total other assets		35,111		33,665

Property and equipment:
Land		5,390		5,390
Buildings		23,239		23,262
Equipment		74,315		74,651
Construction in progress		676		770
		103,620		104,073
Less accumulated depreciation		77,757		79,336
Net property and equipment		25,863		24,737
Total assets	$	187,604	$	185,074

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
Accounts payable and accrued liabilities	$	15,745	$	13,164
Income taxes payable to affiliate		1,460		560
Total current liabilities		17,205		13,724

Noncurrent liabilities:
Deferred income taxes		1,509		1,141
Other		41		26
Total noncurrent liabilities		1,550		1,167

Stockholders' equity:
Preferred stock		—		—
Class A common stock		123		123
Additional paid-in capital		53,275		53,396
Retained earnings		115,457		116,665
Accumulated other comprehensive loss - unrealized loss on marketable securities		(6)		(1)
Total stockholders' equity		168,849		170,183
Total liabilities and stockholders’ equity	$	187,604	$	185,074


	Three months ended				Six months ended
	June 30,				June 30,
	2023		2024		2023		2024

	(unaudited)
Net sales	$	36,616	$	35,887	$	77,767	$	73,858
Cost of sales		26,343		24,722		54,790		53,026
Gross margin		10,273		11,165		22,977		20,832
Selling, general and administrative expense		5,906		6,084		11,570		12,036
Operating income		4,367		5,081		11,407		8,796
Interest income		992		1,295		1,939		2,519
Income before income taxes		5,359		6,376		13,346		11,315
Provision for income taxes		1,287		1,532		3,206		2,717
Net income	$	4,072	$	4,844	$	10,140	$	8,598

Other comprehensive income (loss), marketable securities adjustment:
Unrealized income (loss) arising during year, net		(72)		10		(102)		5
Comprehensive income	$	4,000	$	4,854	$	10,038	$	8,603

Basic and diluted net income per common share	$	.33	$	.39	$	.82	$	.70

Basic and diluted weighted average shares outstanding		12,310		12,316		12,309		12,315


	Three months ended June 30, 2023 and 2024 (unaudited)
							Accumulated
	Class A		Additional				other		Total
	common		paid-in		Retained		comprehensive		stockholders'
	stock		capital		earnings		loss		equity
Balance at March 31, 2023	$	123	$	53,155	$	108,166	$	(47)	$	161,397
Net income		—		—		4,072		—		4,072
Issuance of common stock		—		120		—		—		120
Cash dividends ($.25 per share)		—		—		(3,078)		—		(3,078)
Other comprehensive loss		—		—		—		(72)		(72)
Balance at June 30, 2023	$	123	$	53,275	$	109,160	$	(119)	$	162,439

Balance at March 31, 2024	$	123	$	53,275	$	115,517	$	(11)	$	168,904
Net income		—		—		4,844		—		4,844
Issuance of common stock		—		121		—		—		121
Cash dividends ($.30 per share)		—		—		(3,696)		—		(3,696)
Other comprehensive income		—		—		—		10		10
Balance at June 30, 2024	$	123	$	53,396	$	116,665	$	(1)	$	170,183


	Six months ended June 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		—		—		10,140		—		10,140
Issuance of common stock		—		120		—		—		120
Cash dividends ($.50 per share)		—		—		(6,155)		—		(6,155)
Other comprehensive loss		—		—		—		(102)		(102)
Balance at June 30, 2023	$	123	$	53,275	$	109,160	$	(119)	$	162,439

Balance at December 31, 2023	$	123	$	53,275	$	115,457	$	(6)	$	168,849
Net income		—		—		8,598		—		8,598
Issuance of common stock		—		121		—		—		121
Cash dividends ($.60 per share)		—		—		(7,390)		—		(7,390)
Other comprehensive income		—		—		—		5		5
Balance at June 30, 2024	$	123	$	53,396	$	116,665	$	(1)	$	170,183


			Amortized		Unrealized
	Market value		cost basis		loss, net

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

June 30, 2024:
Current assets	$	11,934	$	11,935	$	(1)


	COMPX INTERNATIONAL INC.
	(Registrant)

Date: August 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


	Six months ended
	June 30,
	2023		2024

	(unaudited)
Cash flows from operating activities:
Net income	$	10,140	$	8,598
Depreciation and amortization		2,009		1,846
Deferred income taxes		(421)		(370)
Noncash interest income		(855)		(574)
Other, net		232		267
Change in assets and liabilities:
Accounts receivable, net		2,794		1,628
Inventories, net		(2,585)		3,201
Accounts payable and accrued liabilities		(1,619)		(2,586)
Accounts with affiliates		(208)		(900)
Prepaids and other, net		281		389
Net cash provided by operating activities		9,768		11,499

Cash flows from investing activities:
Capital expenditures		(478)		(730)
Marketable securities:
Purchases		(24,925)		—
Proceeds from maturities		12,000		24,000
Note receivable from affiliate:
Collections		14,700		13,400
Advances		(13,700)		(12,000)
Net cash provided by (used in) investing activities		(12,403)		24,670

Cash flows from financing activities -
Dividends paid		(6,155)		(7,390)

Cash and cash equivalents - net change from:
Operating, investing and financing activities		(8,790)		28,779
Balance at beginning of period		26,748		41,393
Balance at end of period	$	17,958	$	70,172

Supplemental disclosures -
Cash paid for income taxes	$	3,847	$	4,006


	December 31,		June 30,
	2023		2024

	(In thousands)
Raw materials:
Security Products	$	3,569	$	3,658
Marine Components		2,169		1,596
Total raw materials		5,738		5,254
Work-in-process:
Security Products		13,879		12,213
Marine Components		5,163		4,858
Total work-in-process		19,042		17,071
Finished goods:
Security Products		3,175		2,825
Marine Components		2,757		2,213
Total finished goods		5,932		5,038
Total inventories, net	$	30,712	$	27,363


	December 31,		June 30,
	2023		2024

	(In thousands)
Accounts payable:
Security Products	$	2,514	$	3,103
Marine Components		634		680
Corporate		—		8
Accrued liabilities:
Employee benefits		10,712		6,862
Deferred revenue		559		461
Insurance		289		334
Taxes other than on income		285		344
Advances from customers		267		133
Customer tooling		145		347
Professional services		—		533
Other		340		359
Total accounts payable and accrued liabilities	$	15,745	$	13,164


	Three months ended								Six months ended
	June 30,						%		June 30,						%
	2023			2024			Change		2023			2024			Change

	(Dollars in thousands)								(Dollars in thousands)
Security Products:
Net sales	$	25,672		$	28,213		10	%	$	53,014		$	58,100		10	%
Cost of sales		18,253			19,261		6			37,128			40,376		9
Gross margin		7,419			8,952		21			15,886			17,724		12
Operating costs and expenses		3,285			3,510		7			6,373			6,832		7
Operating income	$	4,134		$	5,442		32		$	9,513		$	10,892		14

Gross margin		28.9	%		31.7	%				30.0	%		30.5	%
Operating income margin		16.1			19.3					17.9			18.7