Compx International Inc 10-Q for FY2024 Q1

Compx International Inc (CIX)

10-Q 2024-05-07 For: 2024-03-31

Added on April 08, 2026

About this 10-Q

Compx International Inc filed this 10-Q on May 7, 2024, covering the quarter ended March 31, 2024 (FY2024 Q1).

Headline figures

Quarter ended March 31, 2024, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $37.97M; down 7.7% from $41.15M a year earlier
Net income: $3.75M; down 38.1% from net income of $6.07M a year earlier
Diluted EPS: $0.31; down 36.7% from $0.49 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 March 31, 2024 (unaudited)	- 3 -

	Condensed Consolidated Statements of Income and Comprehensive Income (unaudited) – Three months ended March 31, 2023 and 2024	- 4 -

	Condensed Consolidated Statements of Stockholders’ Equity (unaudited) – Three months ended March 31, 2023 and 2024	- 5 -

	Condensed Consolidated Statements of Cash Flows (unaudited) – Three months ended March 31, 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	- 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	- 18 -

Item 6.	Exhibits	- 18 -


	December 31,		March 31,
ASSETS	2023		2024
			(unaudited)
Current assets:
Cash and cash equivalents	$	41,393	$	51,866
Marketable securities		35,354		23,701
Accounts receivable, net		17,061		17,329
Inventories, net		30,712		27,543
Prepaid expenses and other		2,110		1,807
Total current assets		126,630		122,246

Other assets:
Note receivable from affiliate		10,600		9,800
Goodwill		23,742		23,742
Other noncurrent assets		769		747
Total other assets		35,111		34,289

Property and equipment:
Land		5,390		5,390
Buildings		23,239		23,262
Equipment		74,315		74,650
Construction in progress		676		536
		103,620		103,838
Less accumulated depreciation		77,757		78,654
Net property and equipment		25,863		25,184
Total assets	$	187,604	$	181,719

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
Accounts payable and accrued liabilities	$	15,745	$	9,697
Income taxes payable to affiliate		1,460		1,725
Total current liabilities		17,205		11,422

Noncurrent liabilities:
Deferred income taxes		1,509		1,359
Other		41		34
Total noncurrent liabilities		1,550		1,393

Stockholders' equity:
Preferred stock		—		—
Class A common stock		123		123
Additional paid-in capital		53,275		53,275
Retained earnings		115,457		115,517
Accumulated other comprehensive loss - unrealized loss on marketable securities		(6)		(11)
Total stockholders' equity		168,849		168,904
Total liabilities and stockholders’ equity	$	187,604	$	181,719


	Three months ended
	March 31,
	2023		2024

	(unaudited)
Net sales	$	41,151	$	37,971
Cost of sales		28,447		28,304
Gross margin		12,704		9,667
Selling, general and administrative expense		5,664		5,952
Operating income		7,040		3,715
Interest income		947		1,224
Income before income taxes		7,987		4,939
Provision for income taxes		1,919		1,185
Net income	$	6,068	$	3,754

Other comprehensive loss, marketable securities adjustment:
Unrealized loss arising during year, net		(30)		(5)
Comprehensive income	$	6,038	$	3,749

Basic and diluted net income per common share	$	.49	$	.31

Basic and diluted weighted average shares outstanding		12,307		12,314


	Three months ended March 31, 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		—		—		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

Balance at December 31, 2023	$	123	$	53,275	$	115,457	$	(6)	$	168,849
Net income		—		—		3,754		—		3,754
Cash dividends ($.30 per share)		—		—		(3,694)		—		(3,694)
Other comprehensive loss		—		—		—		(5)		(5)
Balance at March 31, 2024	$	123	$	53,275	$	115,517	$	(11)	$	168,904


			Amortized		Unrealized
	Market value		cost basis		loss, net

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

March 31, 2024:
Current assets	$	23,701	$	23,712	$	(11)


	COMPX INTERNATIONAL INC.
	(Registrant)

Date: May 7, 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


	Three months ended
	March 31,
	2023		2024

	(unaudited)
Cash flows from operating activities:
Net income	$	6,068	$	3,754
Depreciation and amortization		1,010		926
Deferred income taxes		(250)		(151)
Noncash interest income		(380)		(351)
Other, net		44		58
Change in assets and liabilities:
Accounts receivable, net		(842)		(264)
Inventories, net		1,012		3,107
Accounts payable and accrued liabilities		(4,543)		(5,990)
Accounts with affiliates		998		265
Prepaids and other, net		(52)		318
Net cash provided by operating activities		3,065		1,672

Cash flows from investing activities:
Capital expenditures		(270)		(305)
Marketable securities:
Purchases		(13,479)		—
Proceeds from maturities		4,000		12,000
Note receivable from affiliate:
Collections		7,800		6,000
Advances		(6,800)		(5,200)
Net cash provided by (used in) investing activities		(8,749)		12,495

Cash flows from financing activities:
Dividends paid		(3,077)		(3,694)

Cash and cash equivalents - net change from:
Operating, investing and financing activities		(8,761)		10,473
Balance at beginning of period		26,748		41,393
Balance at end of period	$	17,987	$	51,866

Supplemental disclosures -
Cash paid for income taxes	$	1,171	$	1,071


	December 31,		March 31,
	2023		2024

	(In thousands)
Raw materials:
Security Products	$	3,569	$	3,352
Marine Components		2,169		1,634
Total raw materials		5,738		4,986
Work-in-process:
Security Products		13,879		12,969
Marine Components		5,163		4,746
Total work-in-process		19,042		17,715
Finished goods:
Security Products		3,175		2,712
Marine Components		2,757		2,130
Total finished goods		5,932		4,842
Total inventories, net	$	30,712	$	27,543


	December 31,		March 31,
	2023		2024

	(In thousands)
Accounts payable:
Security Products	$	2,514	$	2,358
Marine Components		634		643
Corporate		—		73
Accrued liabilities:
Employee benefits		10,712		4,819
Taxes other than on income		285		453
Insurance		289		269
Deferred revenue		559		104
Customer tooling		145		254
Advances from customers		267		162
Other		340		562
Total accounts payable and accrued liabilities	$	15,745	$	9,697


	December 31,	March 31,	December 31,	March 31,
Days Sales Outstanding:	2022	2023	2023	2024
Security Products	45 Days	44 Days	37 Days	43 Days
Marine Components	30 Days	36 Days	31 Days	35 Days
Consolidated CompX	41 Days	41 Days	36 Days	42 Days