Compx International Inc 10-Q for FY2022 Q3

Compx International Inc (CIX)

10-Q 2022-11-02 For: 2022-09-30

Added on April 08, 2026

About this 10-Q

Compx International Inc filed this 10-Q on November 2, 2022, covering the quarter ended September 30, 2022 (FY2022 Q3).

Headline figures

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

Revenue: $42.86M; up 24.0% from $34.56M a year earlier
Net income: $4.95M; up 19.8% from net income of $4.13M a year earlier
Diluted EPS: $0.40; up 21.2% 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, 2021 and September 30, 2022 (unaudited)	- 3 -

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

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

	Condensed Consolidated Statements of Cash Flows (unaudited) – Nine months ended September 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 6.	Exhibits	- 18 -


	December 31,		September 30,
ASSETS	2021		2022
			(unaudited)
Current assets:
Cash and cash equivalents	$	76,579	$	53,277
Accounts receivable, net		15,546		19,167
Inventories, net		25,642		33,337
Prepaid expenses and other		2,464		2,646
Total current assets		120,231		108,427

Other assets:
Note receivable from affiliate		18,700		14,700
Goodwill		23,742		23,742
Other noncurrent assets		597		590
Total other assets		43,039		39,032

Property and equipment:
Land		5,071		5,071
Buildings		23,161		23,181
Equipment		70,664		73,738
Construction in progress		2,028		834
		100,924		102,824
Less accumulated depreciation		71,742		73,763
Net property and equipment		29,182		29,061
Total assets	$	192,452	$	176,520

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	14,724	$	16,139
Income taxes payable to affiliate		1,722		1,375
Total current liabilities		16,446		17,514

Noncurrent liabilities:
Deferred income taxes		2,918		2,176
Other		—		61
Total noncurrent liabilities		2,918		2,237

Stockholders' equity:
Preferred stock		—		—
Class A common stock		124		123
Additional paid-in capital		54,780		53,155
Retained earnings		118,184		103,491
Total stockholders' equity		173,088		156,769
Total liabilities and stockholders’ equity	$	192,452	$	176,520


	Three months ended				Nine months ended
	September 30,				September 30,
	2021		2022		2021		2022

	(unaudited)
Net sales	$	34,556	$	42,864	$	106,733	$	126,589
Cost of sales		23,634		30,928		73,470		88,944
Gross margin		10,922		11,936		33,263		37,645
Selling, general and administrative expense		5,791		6,016		16,557		17,674
Operating income		5,131		5,920		16,706		19,971
Interest income		289		558		945		1,109
Income before income taxes		5,420		6,478		17,651		21,080
Provision for income taxes		1,288		1,528		4,214		4,970
Net income	$	4,132	$	4,950	$	13,437	$	16,110

Basic and diluted net income per common share	$	.33	$	.40	$	1.08	$	1.30

Basic and diluted weighted average shares outstanding		12,406		12,307		12,417		12,352


	Three months ended September 30, 2021 and 2022 (unaudited)
	Class A		Additional						Total
	common		paid-in		Retained		Treasury		stockholders'
	stock		capital		earnings		stock		equity
Balance at June 30, 2021	$	124	$	55,336	$	115,879	$	—	$	171,339
Net income		—		—		4,132		—		4,132
Cash dividends ($.20 per share)		—		—		(2,481)		—		(2,481)
Balance at September 30, 2021	$	124	$	55,336	$	117,530	$	—	$	172,990

Balance at June 30, 2022	$	123	$	53,155	$	123,155	$	—	$	176,433
Net income		—		—		4,950		—		4,950
Cash dividends ($2.00 per share)		—		—		(24,614)		—		(24,614)
Balance at September 30, 2022	$	123	$	53,155	$	103,491	$	—	$	156,769


	Nine months ended September 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		—		—		13,437		—		13,437
Issuance of common stock		—		104		—		—		104
Treasury stock:
Acquired		—		—		—		(755)		(755)
Retired		—		(755)		—		755		—
Cash dividends ($.60 per share)		—		—		(7,452)		—		(7,452)
Balance at September 30, 2021	$	124	$	55,336	$	117,530	$	—	$	172,990

Balance at December 31, 2021	$	124	$	54,780	$	118,184	$	—	$	173,088
Net income		—		—		16,110		—		16,110
Issuance of common stock		—		118		—		—		118
Treasury stock:
Acquired		—		—		—		(1,744)		(1,744)
Retired		(1)		(1,743)		—		1,744		—
Cash dividends ($2.50 per share)		—		—		(30,803)		—		(30,803)
Balance at September 30, 2022	$	123	$	53,155	$	103,491	$	—	$	156,769


	COMPX INTERNATIONAL INC.
	(Registrant)

Date: November 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


	Nine months ended
	September 30,
	2021		2022

	(unaudited)
Cash flows from operating activities:
Net income	$	13,437	$	16,110
Depreciation and amortization		2,861		2,962
Deferred income taxes		426		(742)
Other, net		323		287
Change in assets and liabilities:
Accounts receivable, net		(4,374)		(3,634)
Inventories, net		(5,417)		(7,846)
Accounts payable and accrued liabilities		1,908		1,454
Accounts with affiliates		523		(347)
Prepaids and other, net		(1,592)		(122)
Net cash provided by operating activities		8,095		8,122

Cash flows from investing activities:
Capital expenditures		(2,266)		(3,008)
Proceeds from sale of fixed assets, net		—		131
Note receivable from affiliate:
Collections		33,100		21,100
Advances		(25,400)		(17,100)
Net cash provided by investing activities		5,434		1,123

Cash flows from financing activities:
Dividends paid		(7,452)		(30,803)
Treasury stock acquired		(755)		(1,744)
Net cash used in financing activities		(8,207)		(32,547)

Cash and cash equivalents - net change from:
Operating, investing and financing activities		5,322		(23,302)
Balance at beginning of period		70,637		76,579
Balance at end of period	$	75,959	$	53,277

Supplemental disclosures -
Cash paid for income taxes	$	3,361	$	6,080


	December 31,		September 30,
	2021		2022

	(In thousands)
Accounts receivable, net:
Security Products	$	12,896	$	14,106
Marine Components		2,720		5,131
Allowance for doubtful accounts		(70)		(70)
Total accounts receivable, net	$	15,546	$	19,167


	December 31,		September 30,
	2021		2022

	(In thousands)
Raw materials:
Security Products	$	3,640	$	4,670
Marine Components		1,402		2,722
Total raw materials		5,042		7,392
Work-in-process:
Security Products		12,721		15,301
Marine Components		4,046		6,085
Total work-in-process		16,767		21,386
Finished goods:
Security Products		2,271		2,917
Marine Components		1,562		1,642
Total finished goods		3,833		4,559
Total inventories, net	$	25,642	$	33,337


	December 31,		September 30,
	2021		2022

	(In thousands)
Accounts payable:
Security Products	$	2,594	$	3,120
Marine Components		814		2,051
Accrued liabilities:
Employee benefits		9,797		8,931
Taxes other than on income		391		520
Customer tooling		516		350
Advances from customers		—		271
Insurance		208		268
Deferred revenue		—		258
Other		404		370
Total accounts payable and accrued liabilities	$	14,724	$	16,139