Compx International Inc : COMPX REPORTS FOURTH QUARTER 2012 RESULTS

     Compx International Inc : COMPX REPORTS FOURTH QUARTER 2012 RESULTS

DALLAS, TEXAS ... March 6, 2013  ... CompX International Inc. (NYSE MKT:  CIX) 
announced today sales relating to  continuing operations of $19.3 million  for 
the fourth quarter of  2012 compared to  $18.7 million in  the same period  of 
2011.  Operating  income relating  to  continuing operations  was nil  in  the 
fourth quarter of 2012 compared to $1.4  million in the same period in  2011.  
Income from  continuing operations  after tax  was $600,000  for each  of  the 
fourth quarters of 2012 and 2011, or $0.05 per diluted share. 

Net sales relating to  continuing operations for the  year ended December  31, 
2012 were  $83.2 million  compared to  $79.8 million  in the  previous  year.  
Operating income relating to  continuing operations was  $5.4 million for  the 
year ended December 31, 2012 compared  to $6.4 million for 2011.  Income  from 
continuing operations  after tax  was $3.5  million each  of the  years  ended 
December 31, 2012 and 2011, or $0.28 per diluted share.

Net sales  relating to  continuing operations  increased for  both the  fourth 
quarter and full  year of  2012 primarily due  to general  growth in  customer 
demand across most of our markets.  Operating income decreased for the  fourth 
quarter of 2012 primarily due to the net effects of:

  * A loss on the disposal  of assets held for  sale in 2012 of  approximately 
    $757,000;
  * Higher  self-insured  medical  costs  for  the  quarter  of  approximately 
    $302,000;
  * An increase in administrative  support costs related  to the higher  sales 
    and higher carrying costs associated with the assets held for sale; and
  * The positive impact of an increase in 2012 sales noted above.

                                                    
The decrease in operating income for the year ended December 31, 2012 compared
to the same period in 2011 is primarily due to the net effects of:

  * Higher self-insured medical costs for the year of approximately $925,000;
  * An increase in administrative  support costs related  to the higher  sales 
    and higher carrying costs associated with the assets held for sale; and
  * The positive impact of an increase in 2012 sales noted above.

On December  28, 2012,  we  completed the  sale  of our  Furniture  Components 
segment for  proceeds (net  of  expenses) of  approximately $58.0  million  in 
cash.  We recognized  a pre-tax  gain of  approximately $29.6  million on  the 
disposal of these operations ($27.6 million,  or $2.23 per diluted share,  net 
of income taxes of approximately $1.9 million).  Discontinued operations  also 
include net-of-tax income from the operations of the disposed unit of $500,000
and $400,000 for 2012 and 2011 fourth quarters, respectively, and $3.8 million
and $4.2 million  for the full  year 2012 and  2011, respectively.    We  have 
reclassified our  Summary Consolidated  Statements of  Income to  reflect  the 
disposed business as discontinued operations for all periods presented.

 "We are pleased with our overall sales growth of 4% for the full year, as  we 
continue to achieve a  growth rate above the  overall improvement in the  U.S. 
economy.  At  the operating  income level,  the comparison  of our  full  year 
results to the  prior year  was impacted  by $925,000  in higher  self-insured 
medical costs, which is a function  of 2011 being exceptionally low with  2012 
being more in line  with our historical average,"  commented David A.  Bowers, 
President & CEO.  "A significant  accomplishment this year was completing  the 
sale of our  Furniture Components  segment.  We  believe the  disposal of  our 
Furniture Components segment will enable us to focus more effort on continuing
to develop our Security Products and Marine businesses where we believe  there 
is greater  opportunity  for  higher  returns  with  less  income  volatility, 
especially volatility relating to commodity raw materials.  Looking forward to
2013,  we  do  not  expect  a  significant  change  in  the  overall  economic 
environment, but  we expect  to continue  to  grow our  top and  bottom  lines 
through introduction  of  new  product  features as  well  as  expansion  into 
additional markets as we vigilantly manage our costs."
                                                                                     
CompX is a leading manufacturer  of security products and recreational  marine 
components.   It  operates  from  four  locations  in  the  U.S.  and  employs 
approximately 500 people.

Forward-Looking Statements

Statements in this release relating to matters that are not historical facts
are forward-looking statements based upon management's belief and assumptions
using 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 prove to 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 described in such forward-looking
statements.  While it is not possible to identify all factors, CompX continues
to face many risks and uncertainties.  Among the factors that could cause
actual future results to differ materially include, but are not limited to,
general economic and political conditions, changes in raw material and other
operating costs, competitive products and prices, uncertainties associated
with the development of new product features, potential difficulties in
integrating future acquisitions, the ability to sustain or increase operating
income improvement resulting from cost control initiatives, the impact of
employee healthcare benefit related regulations, potential difficulties with
implementing new enterprise wide software, and other risks and uncertainties
detailed in CompX's Securities and Exchange Commission filings.  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 publicly update or revise such statements whether as a result of
new information, future events or otherwise. 

 

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

                              Three months ended             Year ended
                                 December 31,               December 31,
                               2011          2012          2011        2012  
                                 (Unaudited)                          
                                                                      
Net sales                   $    18.7     $   19.3     $     79.8     $    
                                                                     83.2
Cost of goods sold                13.2         13.8           55.7          
                                                                     58.9
Gross profit                                    5.5           24.1          
                           5.5                                       24.3
Selling, general and                            4.7           16.6          
administrative expense     4.1                                       17.7
Write-down and loss on                                                
disposal of
  assets held for sale                          0.8                           
                           -                          1.1            1.2
Operating income                                                              
                           1.4           -            6.4            5.4
Other non-operating                                                         
expenses, net              (0.1)         (0.1)        (0.4)          (0.5)
Income from continuing                                                
operations 
  before taxes                                                                
                           1.3           (0.1)        6.0            4.9
Provision (benefit) for                                                       
income taxes               0.7           (0.7)        2.5            1.4
Income from continuing                          0.6                           
operations                 0.6                        3.5            3.5
                                                                      
Discontinued operations,                                              
net of tax:
  Income from operations                        0.5                           
                           0.4                        4.2            3.8
  Gain on disposal of                          27.6                         
discontinued operations    -                          -              27.6
                                                                      
Net income                  $      1.0    $   28.7     $       7.7    $    
                                                                     34.9
                                                                      
                                                                      
Net income per diluted                                                
common share:
  Continuing operations     $    0.05     $   0.05     $     0.28     $    
                                                                     0.28
  Discontinued operations:                                            
     Income from                  0.03         0.04           0.34          
operations                                                           0.31
     Gain on disposal of                       2.23                         
discontinued operations    -                          -              2.23
                                                                      
Net income                  $    0.08     $   2.32     $     0.62     $    
                                                                     2.82
                                                                      
Weighted average diluted                                              
common                 
   shares outstanding             12.4         12.4           12.4          
                                                                     12.4
                                                                      

 

 

                           COMPX INTERNATIONAL INC.
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                                (In millions)

                                    December 31,             December 31,
                                        2011                     2012      
Assets                                                    
                                                          
Current assets:                                           
  Cash and equivalents         $               10.1       $            63.8
  Accounts receivable, net                      14.2                      8.5
  Inventories, net                              19.6                    11.2
  Deferred income taxes and                      3.5                      7.1
other
    Total current assets                        47.4                    90.6
                                                          
Intangibles                                     36.3                    23.9
Net property and equipment                      51.1                    33.7
Assets held for sale                             6.6                      2.0
Other assets                                     0.1                        - 
                                                          
    Total assets               $             141.5        $          150.2
                                                          
Liabilities and Stockholders'                             
Equity
                                                          
Current liabilities:                                      
  Current maturities of        $                 1.0      $              1.0
long-term debt
  Accounts payable and                          16.3                    11.1
accrued liabilities
  Income taxes                                   1.5                    12.2
  Other                                             -                     0.1
    Total current liabilities                   18.8                    24.4
                                                          
Long-term debt                                  23.2                    17.5
Deferred income taxes                           14.1                      6.2
Other noncurrent liabilities                     0.7                        - 
Stockholders' equity                            84.7                  102.1
                                                          
    Total liabilities and      $             141.5        $          150.2
stockholders' equity
                                                          
                                                          

 

Contact:  David A. Bowers, President & CEO, 864-286-1122

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