Core Insights - CompX International Inc. faced significant challenges in Q3 2024, with reduced demand and rising costs impacting its primary segments, particularly Security Products and Marine Components [1][2] Q3 Earnings & Revenue Performances - The company reported Q3 2024 earnings per share of 28 cents, a decline of 39.6% from 47 cents in the same quarter last year, primarily due to lower sales volume and increased expenses [3] - Net sales for the quarter were $33.67 million, down 16.6% from $40.36 million in Q3 2023 [3] Segment Analysis - **Security Products**: Sales were $26.57 million, down 15% from $31.38 million in the prior-year quarter, with operating income decreasing by 30% to $4.55 million [5][6] - **Marine Components**: Sales were $7.10 million, a 21% year-over-year decrease from $8.98 million, with operating income down 64% to $0.60 million [7][8] Profitability Metrics - Gross margin decreased by 3.2% to 28.1% from 31.3% in Q3 2023, driven by lower sales volumes and increased material and labor costs [9] - Operating income for the quarter was $3.35 million, a 48.8% decrease from $6.55 million in Q3 2023 [10] - Net income was $3.48 million, down 39.6% from $5.76 million in the same quarter last year [11] Cost Analysis - Cost of sales as a percentage of revenues increased to 71.9% from 68.7% in Q3 2023, contributing to the decline in gross margin [13] - Operating costs rose slightly to $6.12 million from $6.07 million in the prior-year quarter, influenced by higher employee salaries and benefits [13] Cash, Debt & Capital Expenditure - Liquidity improved, with cash and cash equivalents rising to $58.79 million as of September 30, 2024, from $41.39 million at the end of 2023 [14] - The company allocated $1.2 million toward capital expenditure in the first nine months of 2024, with a full-year capex target of $2.1 million [14] Management Guidance - The company anticipates continued challenging conditions in key markets, particularly in government security and recreational marine segments, with expectations of lower recurring sales for Security Products [15] - Demand in the towboat market remains weak due to economic headwinds and higher interest rates affecting consumer spending [15] Other Developments - CompX International declared a special dividend of $2 per share in August 2024, distributing $24.6 million in cash to shareholders [16] - The company is actively evaluating inventory adjustments and cost-saving initiatives, particularly within Marine Components [16]

Financial Performance - CompX reported third quarter 2024 sales of $33.6 million, a decrease of 16.7% from $40.3 million in the same period of 2023[1] - Operating income for the third quarter of 2024 was $3.3 million, down 50% from $6.6 million in the third quarter of 2023[1] - Net income for the third quarter of 2024 was $3.5 million, or $0.28 per share, compared to $5.8 million, or $0.47 per share, in the same period of 2023[1] - For the nine months ended September 30, 2024, sales totaled $107.5 million, a decline of 9.5% from $118.1 million in the previous year[2] - Operating income for the first nine months of 2024 was $12.1 million, down 32.8% from $18.0 million for the same period in 2023[2] - Gross margin for the third quarter of 2024 was $9.5 million, compared to $12.6 million in the same period of 2023, reflecting a decline in sales and gross margin[9] Sales and Market Factors - The decrease in net sales for the third quarter was primarily due to lower Security Products sales to a government customer and reduced Marine Components sales to the towboat market[3] Workforce and Operations - The company employs approximately 524 people across three locations in the U.S.[4] Risks and Uncertainties - CompX faces risks including changes in raw material costs, competition from low-cost manufacturers, and uncertainties in new product development[6] - Future results may differ materially due to various risks and uncertainties, including global economic conditions and potential disruptions in operations[7]

Financial Performance - Operating income for Q3 2024 was $3.3 million, down from $6.6 million in Q3 2023, primarily due to lower sales and gross margin in both Security Products and Marine Components[38]. - Net sales decreased by $6.7 million in Q3 2024 compared to Q3 2023, mainly due to lower Security Products sales to a government security customer[41]. - Gross margin as a percentage of sales decreased to 28.1% in Q3 2024 from 31.3% in Q3 2023, attributed to higher cost of sales[40]. - For the first nine months of 2024, operating income was $12.1 million, down from $18.0 million in the same period of 2023, primarily due to lower Marine Components sales[38]. - Security Products net sales fell by 15% in Q3 2024 compared to Q3 2023, with a $5.0 million decrease in sales to the government security market[50]. - Marine Components net sales decreased by 21% in Q3 2024 compared to Q3 2023, primarily due to $1.3 million lower sales to the towboat market[52]. - For the first nine months of 2024, Marine Components net sales decreased by 32% compared to the same period in 2023, driven by $8.7 million lower sales to the towboat market[52]. - The company expects lower Marine Components net sales for the full year of 2024 due to decreased demand in the towboat market, influenced by higher interest rates and broader market weakness[57]. Cost and Expenses - Cost of sales as a percentage of sales increased by 3.2% in Q3 2024 compared to Q3 2023, leading to a decline in gross margin[43]. - Operating costs and expenses for Q3 2024 were comparable to Q3 2023, but increased by $0.6 million for the first nine months of 2024 due to higher employee salaries and benefits[44]. - Operating income margin for Security Products decreased to 17.1% in Q3 2024 from 20.7% in Q3 2023, reflecting the impact of lower sales and higher costs[48]. - Operating income margin decreased to 18.9% in Q3 2024 from 8.5% in Q3 2023, reflecting the impact of lower sales on operating costs[53]. Cash Flow and Capital Expenditures - Operating cash flows increased by $3.8 million in the first nine months of 2024 compared to the same period in 2023, primarily due to changes in inventories and receivables[60]. - Capital expenditures for 2024 are expected to be approximately $2.1 million to meet existing customer demand and maintain facilities[69]. - The board of directors increased the regular quarterly dividend from $0.25 to $0.30 per share starting in Q1 2024, with total dividends paid in the first nine months of 2024 amounting to $11.1 million[65]. Market Risks and Challenges - The company anticipates potential risks including changes in raw material costs and competition from low-cost manufacturing sources[35]. - The company expects challenges in Security Products sales for the remainder of the year due to the non-recurrence of a significant pilot project with a government security customer[57]. - The company is exposed to market risk from changes in interest rates and raw material prices[74]. - There have been no material changes in market risks since the filing of the 2023 Annual Report[74]. - The company refers to Part I, Item 7A of the 2023 Annual Report for detailed market risk disclosures[74]. - Note 9 of the Condensed Consolidated Financial Statements provides additional information on market risks[74]. Interest Income - Interest income increased by $0.2 million in Q3 2024 and $0.8 million for the first nine months of 2024, driven by higher average interest rates[46]. Sales Performance Metrics - The average days sales outstanding for Marine Components increased to 37 days as of September 30, 2024, compared to 31 days at December 31, 2023[62].

Core Insights - CompX International Inc. reported a decline in sales and net income for the third quarter and the first nine months of 2024 compared to the same periods in 2023, primarily due to lower sales in Security Products and Marine Components [1][2][3] Financial Performance - Third quarter 2024 sales were $33.6 million, down from $40.3 million in Q3 2023, representing a decrease of approximately 16.7% [1] - Operating income for Q3 2024 was $3.3 million, a decline from $6.6 million in Q3 2023, indicating a decrease of about 50% [1] - Net income for Q3 2024 was $3.5 million, or $0.28 per share, compared to $5.8 million, or $0.47 per share, in Q3 2023, reflecting a decrease of approximately 39.7% in net income [1] - For the nine months ended September 30, 2024, sales totaled $107.5 million, down from $118.1 million in the same period of 2023, a decrease of about 9.7% [2] - Operating income for the first nine months of 2024 was $12.1 million, down from $18.0 million in 2023, a decline of approximately 32.8% [2] - Net income for the nine months ended September 30, 2024 was $12.1 million, or $0.98 per share, compared to $15.9 million, or $1.29 per share, in 2023, indicating a decrease of about 23.9% [2] Sales Performance - The decrease in third quarter net sales was primarily attributed to lower Security Products sales to a government security customer and reduced Marine Components sales to the towboat market [3] - The decline in sales for the first nine months of 2024 was mainly due to lower Marine Components sales to the towboat market [3] Company Overview - CompX International Inc. is a leading manufacturer of security products and recreational marine components, operating from three locations in the U.S. and employing approximately 524 people [4]

Core Viewpoint - CompX International Inc. has declared a regular quarterly dividend of $0.30 per share on its class A common stock, indicating a commitment to returning value to shareholders [1] Company Summary - CompX International Inc. is recognized as a leading manufacturer in the security products and recreational marine components industry [1] - The dividend is scheduled to be payable on December 10, 2024, to stockholders of record as of the close of business on November 29, 2024 [1]

CompX International Inc. (CIX) has reported its financial results for the second quarter of 2024, showcasing an impressive year-over-year increase in earnings per share and significant strategic financial moves. The company's performance was bolstered by strong growth in its Security Products segment, partially offset by challenges in the Marine Components segment. Additionally, CompX announced a substantial increase in its regular quarterly dividend and a special dividend, reflecting its robust cash flow a ...

COMPX REPORTS SECOND QUARTER 2024 RESULTS DALLAS, TEXAS … August 6, 2024 … CompX International Inc. (NYSE American: CIX) announced today sales of $35.9 million for the second quarter of 2024 compared to $36.6 million in the same period of 2023. Operating income was $5.1 million in the second quarter of 2024 compared to $4.4 million in the same period of 2023. Net income was $4.9 million, or $.39 per basic and diluted common share, for the second quarter of 2024 compared to $4.0 million, or $.33 per basic an ...

Dallas, Texas, Aug. 06, 2024 (GLOBE NEWSWIRE) -- CompX International Inc. (NYSE American: CIX) announced today that its board of directors has declared a special cash dividend of two dollars ($2.00) per share and a regular quarterly dividend of thirty cents ($0.30) per share, in each case on its class A common stock. The special cash dividend is payable on August 28, 2024 to stockholders of record at the close of business on August 19, 2024. The regular quarterly dividend of $0.30 per share is payable on Se ...

Dallas, Texas, Aug. 06, 2024 (GLOBE NEWSWIRE) -- CompX International Inc. (NYSE American: CIX) announced today that its board of directors has declared a special cash dividend of two dollars ($2.00) per share and a regular quarterly dividend of thirty cents ($0.30) per share, in each case on its class A common stock. The special cash dividend is payable on August 28, 2024 to stockholders of record at the close of business on August 19, 2024. The regular quarterly dividend of $0.30 per share is payable on Se ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarter ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to _________ Commission file number 1-13905 COMPX INTERNATIONAL INC. (Exact name of Registrant as specified in its charter) DELAWARE 57-0981653 (State ...