8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.   20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of the earliest event reported)

November 4, 2020

CompX International Inc.

(Exact name of registrant as specified in its charter)

Delaware	1-13905	57-0981653
(State or other jurisdiction of incorporation)	(Commission<br><br> <br>File Number)	(IRS Employer<br><br> <br>Identification No.)
5430 LBJ Freeway,<br> Suite 1700, Dallas,<br> Texas			75240-2620
(Address of principal executive offices)			(Zip Code)

Registrant’s telephone number, including area code

(972) 448-1400

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2):

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading<br><br> <br>Symbol(s)	Name of each exchange on which registered
Class A common stock<br><br> <br>($.01 par value per share)	CIX	NYSE American

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

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Item 2.02	Results of Operations and Financial Condition.

The registrant hereby furnishes the information set forth in its press release entitled “CompX Reports Third Quarter 2020 Results” that the registrant issued on November 4, 2020, a copy of which is attached hereto as Exhibit 99.1 and incorporated herein by reference.

The press release the registrant furnishes as Exhibit 99.1 to this current report is not deemed “filed” for purposes of section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section.  Registration statements or other documents filed with the U.S. Securities and Exchange Commission shall not incorporate this information by reference, except as otherwise expressly stated in such filing.

Item 7.01 Regulation FD Disclosures.

The registrant hereby furnishes the information set forth in its press release entitled “CompX Declares Quarterly Dividend” that the registrant also issued on November 4, 2020, a copy of which is attached hereto as Exhibit 99.2 and incorporated herein by reference.

The press release the registrant furnishes as Exhibit 99.2 to this current report is not deemed “filed” for purposes of section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section.  Registration statements or other documents filed with the U.S. Securities and Exchange Commission shall not incorporate this information by reference, except as otherwise expressly stated in such filing.

Item 9.01	Financial Statements and Exhibits.
(d)	Exhibits
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	Item No.	Description
	99.1*	Press release dated November<br> 4, 2020 entitled “CompX Reports Third Quarter 2020 Results” and issued by the registrant.
	99.2*	Press release dated November<br> 4, 2020 entitled “CompX Declares Quarterly Dividend” and issued by the registrant.
	104	Cover Page Interactive Data File (embedded within the Inline XBRL document)
*	Filed herewith
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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	CompX International Inc.
	(Registrant)
	By: /s/ Amy A. Samford
Date:  November 4, 2020	Amy A. Samford<br><br> <br>Vice President and Chief Financial Officer

PRESS RELEASE

FOR IMMEDIATE RELEASE:	CONTACT:
CompX International Inc.	Janet G. Keckeisen
5430 LBJ Freeway, Suite 1700	Investor Relations
Dallas, Texas 75240	Tel. 972-233-1700

COMPX REPORTS THIRD QUARTER 2020 RESULTS

DALLAS, TEXAS … November 4, 2020 … CompX International Inc. (NYSE American: CIX) announced today sales of $28.4 million for the third quarter of 2020 compared to $29.7 million in the same period of 2019. Operating income was $2.1 million for the third quarter of 2020 compared to $4.3 million in the same period of 2019. Net income for the third quarter of 2020 was $1.8 million, or $0.15 per diluted share, compared to $3.9 million, or $0.31 per diluted share, in the third quarter of 2019.

For the nine months ended September 30, 2020, sales were $84.5 million compared to $94.6 million in the previous year. Operating income was $9.5 million for the first nine months of 2020 compared to $14.2 million for 2019. Net income for the nine months ended September 30, 2020 was $8.2 million, or $0.66 per diluted share, compared to $12.8 million, or $1.03 per diluted share, in 2019.

In the third quarter of 2020, our sales began to recover from the historically low levels we experienced during the second quarter, although the COVID-19 pandemic continues to impact our operations and demand for our products. Operating income for the third quarter and the first nine months of 2020 compared to the same periods in 2019 was negatively impacted by higher fixed cost per unit of production as the result of lower production volumes in the second quarter which increased the cost of inventory produced in the second quarter and sold in the third quarter of 2020. In the third quarter, our manufacturing operations returned to more normal production rates as demand from our customers began to return, although for the most part, below pre-pandemic levels. The extent of the COVID-19 impact on our future operations will depend on the time period and degree to which the COVID-19 pandemic persists in the economy thereby reducing customer demand for certain of our products, including the timing and extent to which our customers’ operations continue to be impacted, our customers’ perception as to when consumer demand for their products will return to pre-pandemic levels and on any future disruptions in our operations or our suppliers’ operations, all of which are difficult to predict.

CompX is a leading manufacturer of security products and recreational marine components.  It operates from three locations in the U.S. and employs approximately 515 people.

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Forward-Looking Statements

The statements in this press release relating to matters that are not historical facts are forward-looking statements that represent management’s belief and assumptions based on 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 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 predicted. While it is not possible to identify all factors, CompX continues to face many risks and uncertainties. The factors that could cause our actual future results to differ materially include, but are not limited to, the following:

•	Future demand for our products,
•	Changes in our raw material and other operating costs (such as zinc, brass, aluminum, steel and energy costs) and our ability to<br> pass those costs on to our customers or offset them with reductions in other operating costs,
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•	Price and product competition from low-cost manufacturing sources (such as China),
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•	The impact of pricing and production decisions,
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•	Customer and competitor strategies including substitute products,
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•	Uncertainties associated with the development of new products and product features,
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•	Future litigation,
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•	Our ability to protect or defend our intellectual property rights,
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•	Potential difficulties in integrating future acquisitions,
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•	Decisions to sell operating assets other than in the ordinary course of business,
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•	Environmental matters (such as those requiring emission and discharge standards for existing and new facilities),
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•	The ultimate outcome of income tax audits, tax settlement initiatives or other tax matters, including future tax reform,
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•	The impact of current or future government regulations (including employee healthcare benefit related regulations),
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•	General global economic and political conditions that disrupt or introduce instability into our supply chain, impact our<br> customers’ level of demand or our customers’ perception regarding demand or impair our ability to operate our facilities (including changes in the level of gross domestic product in various regions of the world, natural disasters, terrorist<br> acts, global conflicts and public health crises such as COVID-19),
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•	Operating interruptions (including, but not limited to labor disputes, hazardous chemical leaks, natural disasters, fires,<br> explosions, unscheduled or unplanned downtime, transportation interruptions, cyber-attacks and public health crises such as COVID-19); and
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•	Possible disruption of our business or increases in the cost of doing business resulting from terrorist activities or global<br> conflicts.
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Should one or more of these risks materialize (or the consequences of such development worsen), or should the underlying assumptions prove incorrect, actual results could differ materially from those currently forecasted or expected.  CompX disclaims any intention or obligation to update or revise any forward-looking statement whether as a result of changes in information, future events or otherwise.

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COMPX INTERNATIONAL INC.

SUMMARY OF CONSOLIDATED OPERATIONS

(In millions, except per share amounts)

(Unaudited)

	Three months ended				Nine months ended
	September 30,				September 30,
	2019		2020		2019		2020
Net sales	$	29.7	$	28.4	$	94.6	$	84.5
Cost of goods sold		20.2		21.1		64.6		59.4
Gross profit		9.5		7.3		30.0		25.1
Selling, general and administrative expense		5.2		5.2		15.8		15.6
Operating income		4.3		2.1		14.2		9.5
Interest income		0.8		0.3		2.5		1.3
Income before taxes		5.1		2.4		16.7		10.8
Provision for income taxes		1.2		0.6		3.9		2.6
Net income	$	3.9	$	1.8	$	12.8	$	8.2
Basic and diluted net income
per common share	$	0.31	$	0.15	$	1.03	$	0.66
Weighted average diluted common
shares outstanding		12.4		12.5		12.4		12.4

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PRESS RELEASE

FOR IMMEDIATE RELEASE:	CONTACT:
CompX International Inc.	Janet G. Keckeisen
Three Lincoln Centre	Investor Relations
5430 LBJ Freeway, Suite 1700	Tel. 972-233-1700
Dallas, Texas 75240

COMPX DECLARES REGULAR QUARTERLY DIVIDEND

DALLAS, TEXAS . . . November 4, 2020 . . . CompX International Inc. (NYSE American:  CIX) announced today that its board of directors has declared CompX’s regular quarterly dividend of ten cents ($0.10) per share on its class A common stock, payable on December 8, 2020 to stockholders of record at the close of business on December 1, 2020.

CompX is a leading manufacturer of security products and recreational marine components.

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