COMPX REPORTS FIRST QUARTER 2022 RESULTS

Rhea-AI Summary

CompX International reported a strong financial performance for Q1 2022, achieving $42.1 million in sales, up from $35.9 million in Q1 2021. Operating income rose to $6.3 million, compared to $5.8 million in the prior year. Net income increased to $5.0 million or $0.40 per share, up from $4.7 million or $0.38 per share. Growth was driven by higher sales in Security Products and Marine Components, despite increased production costs.

Positive

• Sales increased to $42.1 million, a 17% rise compared to Q1 2021.
• Operating income grew to $6.3 million, reflecting improved profitability.
• Net income rose to $5.0 million, indicating a solid earnings performance.

Negative

• Increased production costs due to higher raw materials, shipping, and labor expenses.

Dallas, Texas, May 03, 2022 (GLOBE NEWSWIRE) -- CompX International Inc. (NYSE American: CIX) announced today sales of $42.1 million for the first quarter of 2022 compared to $35.9 million in the same period of 2021. Operating income was $6.3 million in the first quarter of 2022 compared to $5.8 million in the first quarter of 2021. Net income was $5.0 million, or $.40 per basic and diluted common share, for the first quarter of 2022 compared to $4.7 million, or $.38 per basic and diluted common share, in the same period of 2021.

Net sales increased for the quarter primarily due to higher Security Products sales across a variety of markets and to a lesser extent higher Marine Components sales primarily to the towboat market. Operating income increased during the first quarter of 2022 due to the higher sales offset by increased production costs including increased raw material costs, higher shipping costs, and increased labor costs due to higher wages, overtime and increased headcount.

CompX is a leading manufacturer of security products and recreational marine components. It operates from three locations in the U.S. and employs approximately 600 people.

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 we believe the expectations reflected in such forward-looking statements are reasonable, we 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, we continue 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 pass those costs on to our customers or offset them with reductions in other operating costs,

·         Price and product competition from low-cost manufacturing sources (such as China),

·         The impact of pricing and production decisions,

·         Customer and competitor strategies including substitute products,

·         Uncertainties associated with the development of new products and product features,

·         Future litigation,

·         Our ability to protect or defend our intellectual property rights,

·         Potential difficulties in integrating future acquisitions,

·         Decisions to sell operating assets other than in the ordinary course of business,

·         Environmental matters (such as those requiring emission and discharge standards for existing and new facilities),

·         The ultimate outcome of income tax audits, tax settlement initiatives or other tax matters, including future tax reform,

·         The impact of current or future government regulations (including employee healthcare benefit related regulations),

·         General global economic and political conditions that introduce instability into our supply chain, impact our 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 acts, global conflicts and public health crises such as COVID-19),

·         Operating interruptions (including, but not limited to labor disputes, hazardous chemical leaks, natural disasters, fires, explosions, unscheduled or unplanned downtime, transportation interruptions, cyber-attacks and public health crises such as COVID-19); and

·         Possible disruption of our business or increases in the cost of doing business resulting from terrorist activities or global conflicts.

Should one or more of these risks materialize or if the consequences worsen, or if 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.

* * * * *

COMPX INTERNATIONAL INC.
SUMMARY OF CONSOLIDATED OPERATIONS
(In millions, except per share amounts)

	Three months ended
	March 31,
	2021			2022
	(unaudited)
Net sales	$	35.9		$	42.1
Cost of sales		24.9			30.0
Gross margin		11.0			12.1
Selling, general and administrative expense		5.2			5.8
Operating income		5.8			6.3
Interest income		.4			.2
Income before taxes		6.2			6.5
Provision for income taxes		1.5			1.5
Net income	$	4.7		$	5.0
Basic and diluted net income per common share	$	.38		$	.40
Weighted average diluted common shares outstanding		12.4			12.4

FAQ

What were the sales figures for CompX International (CIX) in Q1 2022?

CompX International reported sales of $42.1 million for Q1 2022, up from $35.9 million in Q1 2021.

How did CompX International (CIX) perform in terms of net income in Q1 2022?

CompX International achieved a net income of $5.0 million, or $0.40 per share, in Q1 2022, compared to $4.7 million or $0.38 per share in Q1 2021.

What contributed to the sales increase for CompX International (CIX) in Q1 2022?

The sales increase was primarily due to higher sales in Security Products and Marine Components.

What were the operating income figures for CompX International (CIX) in Q1 2022?

CompX International reported an operating income of $6.3 million for Q1 2022, compared to $5.8 million in the same period last year.