COMPX REPORTS THIRD QUARTER 2022 RESULTS

Rhea-AI Summary

CompX International reported Q3 2022 sales of $42.9 million, up from $34.5 million in Q3 2021. Net income increased to $4.9 million ($0.40 per share), compared to $4.1 million ($0.33/share) last year. For the nine months ending September 30, 2022, sales reached $126.6 million, up from $106.7 million, with net income increasing to $16.1 million ($1.30/share). Growth was driven by higher sales in Marine Components and Security Products. However, rising production costs affected profitability, notably in the Security Products segment.

Positive

• Q3 2022 sales of $42.9 million, a 24% increase year-over-year.
• Net income grew to $4.9 million in Q3 2022 from $4.1 million in Q3 2021.
• Nine-month sales increased to $126.6 million, a 19% year-over-year growth.
• Operating income improved to $6.0 million in Q3 2022 from $5.1 million in Q3 2021.

Negative

• Increased production costs, particularly in the Security Products segment, which could pressure future profitability.

Dallas, Texas, Nov. 02, 2022 (GLOBE NEWSWIRE) -- CompX International Inc. (NYSE American: CIX) announced today sales of $42.9 million for the third quarter of 2022 compared to $34.5 million in the same period of 2021. Operating income was $6.0 million in the third quarter of 2022 compared to $5.1 million in the same period of 2021. Net income was $4.9 million, or $.40 per basic and diluted common share, for the third quarter of 2022 compared to $4.1 million, or $.33 per basic and diluted common share, in the same period of 2021.

For the nine months ended September 30, 2022, sales were $126.6 million compared to $106.7 million in the previous year. Operating income was $20.0 million for the first nine months of 2022 compared to $16.7 million for the same period in 2021. Net income for the nine months ended September 30, 2022, was $16.1 million or $1.30 per diluted share, compared to $13.4 million, or $1.08 per diluted share, for the same period in 2021.

Third quarter and year-to-date 2022 net sales increased over the comparable 2021 periods primarily due to higher Marine Component sales predominantly to the towboat market and, to a lesser extent, higher Security Products sales across a variety of markets. Operating income increased for both comparative periods largely due to the strong performance of the Marine Segment, partially offset by increased production costs, particularly at Security Products, including increased raw material costs, higher shipping costs, and higher salary and employment related costs.

CompX is a leading manufacturer of security products and recreational marine components. It operates from three locations in the U.S. and employs approximately 640 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						Nine months ended
		September 30,						September 30,
		2021			2022			2021			2022
		(unaudited)
Net sales		$	34.5		$	42.9		$	106.7		$	126.6
Cost of sales			23.6			30.9			73.4			88.9
Gross margin			10.9			12.0			33.3			37.7
Selling, general and administrative expense			5.8			6.0			16.6			17.7
Operating income			5.1			6.0			16.7			20.0
Interest income			.3			.5			.9			1.1
Income before taxes			5.4			6.5			17.6			21.1
Provision for income taxes			1.3			1.6			4.2			5.0
Net income		$	4.1		$	4.9		$	13.4		$	16.1
Basic and diluted net income per common share		$	.33		$	.40		$	1.08		$	1.30
Weighted average diluted common shares   outstanding			12.4			12.3			12.4			12.4

FAQ

What were CompX International's sales figures for Q3 2022?

CompX International reported sales of $42.9 million for Q3 2022.

How did CompX's net income for Q3 2022 compare to Q3 2021?

Net income increased to $4.9 million in Q3 2022, up from $4.1 million in Q3 2021.

What were the total sales for CompX International for the nine months ended September 30, 2022?

Sales for the nine months ended September 30, 2022, were $126.6 million.

What growth did CompX International experience in its Marine Components segment?

Growth was primarily driven by higher Marine Components sales, particularly to the towboat market.

What challenges did CompX International face according to its Q3 2022 report?

The company faced increased production costs, especially in the Security Products segment.