Compx International Inc 10-Q for FY2023 Q1

Compx International Inc (CIX)

10-Q 2023-05-02 For: 2023-03-31

Added on April 08, 2026

About this 10-Q

Compx International Inc filed this 10-Q on May 2, 2023, covering the quarter ended March 31, 2023 (FY2023 Q1).

Headline figures

Quarter ended March 31, 2023, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $41.15M; down 2.1% from $42.05M a year earlier
Net income: $6.07M; up 21.7% from net income of $4.98M a year earlier
Diluted EPS: $0.49; up 22.5% from $0.40 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, 2022 and March 31, 2023 (unaudited)	- 3 -

	Condensed Consolidated Statements of Income and Comprehensive Income (unaudited) – Three months ended March 31, 2022 and 2023	- 4 -

	Condensed Consolidated Statements of Stockholders’ Equity (unaudited) – Three months ended March 31, 2022 and 2023	- 5 -

	Condensed Consolidated Statements of Cash Flows (unaudited) – Three months ended March 31, 2022 and 2023	- 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	- 16 -

Item 4.	Controls and Procedures	- 16 -

Part II.	OTHER INFORMATION

Item 1A.	Risk Factors	- 17 -

Item 6.	Exhibits	- 17 -


	December 31,		March 31,
ASSETS	2022		2023
			(unaudited)
Current assets:
Cash and cash equivalents	$	26,748	$	17,987
Marketable securities		33,147		42,963
Accounts receivable, net		17,840		18,681
Inventories, net		31,290		30,235
Prepaid expenses and other		2,136		1,950
Total current assets		111,161		111,816

Other assets:
Note receivable from affiliate		13,200		12,200
Goodwill		23,742		23,742
Other noncurrent assets		590		816
Total other assets		37,532		36,758

Property and equipment:
Land		5,390		5,390
Buildings		23,181		23,181
Equipment		74,113		74,376
Construction in progress		722		399
		103,406		103,346
Less accumulated depreciation		74,712		75,432
Net property and equipment		28,694		27,914
Total assets	$	177,387	$	176,488

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	15,618	$	11,035
Income taxes payable to affiliate		1,035		2,033
Total current liabilities		16,653		13,068

Noncurrent liabilities:
Deferred income taxes		2,230		1,967
Other		68		56
Total noncurrent liabilities		2,298		2,023

Stockholders' equity:
Preferred stock		—		—
Class A common stock		123		123
Additional paid-in capital		53,155		53,155
Retained earnings		105,175		108,166
Accumulated other comprehensive loss - unrealized loss on marketable securities		(17)		(47)
Total stockholders' equity		158,436		161,397
Total liabilities and stockholders’ equity	$	177,387	$	176,488


	Three months ended
	March 31,
	2022		2023

	(unaudited)
Net sales	$	42,050	$	41,151
Cost of sales		29,970		28,447
Gross margin		12,080		12,704
Selling, general and administrative expense		5,774		5,664
Operating income		6,306		7,040
Interest income		214		947
Income before income taxes		6,520		7,987
Provision for income taxes		1,536		1,919
Net income		4,984		6,068

Other comprehensive loss, marketable securities adjustment:
Unrealized net loss arising during year		—		(30)
Comprehensive income	$	4,984	$	6,038

Basic and diluted net income per common share	$	.40	$	.49

Basic and diluted weighted average shares outstanding		12,381		12,307


	Three months ended March 31, 2022 and 2023 (unaudited)
							Accumulated
	Class A		Additional				other		Total
	common		paid-in		Retained		comprehensive		stockholders'
	stock		capital		earnings		loss		equity
Balance at December 31, 2021	$	124	$	54,780	$	118,184	$	—	$	173,088
Net income		—		—		4,984		—		4,984
Cash dividends ($.25 per share)		—		—		(3,095)		—		(3,095)
Balance at March 31, 2022	$	124	$	54,780	$	120,073	$	—	$	174,977

Balance at December 31, 2022	$	123	$	53,155	$	105,175	$	(17)	$	158,436
Net income		—		—		6,068		—		6,068
Cash dividends ($.25 per share)		—		—		(3,077)		—		(3,077)
Other comprehensive loss		—		—		—		(30)		(30)
Balance at March 31, 2023	$	123	$	53,155	$	108,166	$	(47)	$	161,397


			Amortized		Unrealized
	Market value		cost basis		loss, net

	(In thousands)
December 31, 2022:
Current assets	$	33,147	$	33,164	$	(17)

March 31, 2023:
Current assets	$	42,963	$	43,023	$	(60)


	COMPX INTERNATIONAL INC.
	(Registrant)

Date: May 2, 2023	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


	Three months ended
	March 31,
	2022		2023

	(unaudited)
Cash flows from operating activities:
Net income	$	4,984	$	6,068
Depreciation and amortization		961		1,010
Deferred income taxes		(231)		(250)
Other, net		56		(336)
Change in assets and liabilities:
Accounts receivable, net		(2,213)		(842)
Inventories, net		(2,490)		1,012
Accounts payable and accrued liabilities		(3,055)		(4,543)
Accounts with affiliates		862		998
Prepaids and other, net		(1,036)		(52)
Net cash provided by (used in) operating activities		(2,162)		3,065

Cash flows from investing activities:
Capital expenditures		(1,717)		(270)
Marketable securities:
Purchases		—		(13,479)
Proceeds from maturities		—		4,000
Note receivable from affiliate:
Collections		7,700		7,800
Advances		(7,100)		(6,800)
Net cash used in investing activities		(1,117)		(8,749)

Cash flows from financing activities -
Dividends paid		(3,095)		(3,077)

Cash and cash equivalents - net change from:
Operating, investing and financing activities		(6,374)		(8,761)
Balance at beginning of period		76,579		26,748
Balance at end of period	$	70,205	$	17,987

Supplemental disclosures -
Cash paid for income taxes	$	904	$	1,171


	December 31,		March 31,
	2022		2023

	(In thousands)
Raw materials:
Security Products	$	4,172	$	4,157
Marine Components		2,073		1,857
Total raw materials		6,245		6,014
Work-in-process:
Security Products		14,193		13,669
Marine Components		5,790		5,668
Total work-in-process		19,983		19,337
Finished goods:
Security Products		3,163		3,287
Marine Components		1,899		1,597
Total finished goods		5,062		4,884
Total inventories, net	$	31,290	$	30,235


	December 31,		March 31,
	2022		2023

	(In thousands)
Accounts payable:
Security Products	$	2,663	$	2,662
Marine Components		874		1,263
Accrued liabilities:
Employee benefits		10,489		5,208
Taxes other than on income		279		449
Advances from customers		298		256
Insurance		255		235
Deferred revenue		243		219
Customer tooling		135		181
Other		382		562
Total accounts payable and accrued liabilities	$	15,618	$	11,035


	December 31,	March 31,	December 31,	March 31,
Days Sales Outstanding:	2021	2022	2022	2023
Security Products	46 Days	42 Days	45 Days	44 Days
Marine Components	30 Days	31 Days	30 Days	36 Days
Consolidated CompX	42 Days	38 Days	41 Days	41 Days