CompX International Inc. (CIX) Bundle
A Brief History of CompX International Inc.
CompX International Inc., a leading manufacturer of security products and marine components, has experienced notable fluctuations in its financial performance through 2024. The following sections detail the company's financial results, operational changes, and market conditions impacting its performance.
Financial Performance Overview
As of September 30, 2024, CompX reported:
| Metric | Q3 2023 | Q3 2024 | Change (%) |
|---|---|---|---|
| Net Sales | $40,355,000 | $33,667,000 | -16.7% |
| Cost of Sales | $27,736,000 | $24,199,000 | -12.3% |
| Gross Margin | $12,619,000 | $9,468,000 | -25.4% |
| Operating Income | $6,545,000 | $3,349,000 | -48.9% |
| Net Income | $5,757,000 | $3,478,000 | -39.7% |
Segment Performance
CompX operates primarily through two segments: Security Products and Marine Components. The performance in these segments as of September 30, 2024, is summarized below:
| Segment | Net Sales Q3 2023 | Net Sales Q3 2024 | Change (%) |
|---|---|---|---|
| Security Products | $31,376,000 | $26,567,000 | -15.0% |
| Marine Components | $8,979,000 | $7,100,000 | -20.9% |
Operational Changes
The decline in sales is attributed to several factors, including:
- Lower sales to government security customers, which significantly impacted the Security Products segment.
- Decreased demand in the Marine Components segment, particularly in the towboat market.
In the first nine months of 2024, CompX reported:
| Metric | 9M 2023 | 9M 2024 | Change (%) |
|---|---|---|---|
| Net Sales | $118,122,000 | $107,525,000 | -9.0% |
| Operating Income | $17,952,000 | $12,145,000 | -32.3% |
| Net Income | $15,897,000 | $12,076,000 | -24.3% |
Cash Flow and Liquidity
For the first nine months of 2024, CompX generated strong cash flow from operations, amounting to:
- Net cash provided by operating activities: $15,611,000
- Capital expenditures: $1,194,000
The company's liquidity position remains robust, with cash and cash equivalents totaling $58.8 million as of September 30, 2024.
Dividend History
CompX has consistently returned capital to shareholders through dividends. In 2024, a special dividend of $2.00 per share was declared, totaling approximately $24.6 million.
Outlook
Looking ahead, CompX is focused on aligning its operations with current market demands while managing costs effectively. The company is also monitoring raw material prices and supply chain stability to mitigate potential disruptions.
A Who Owns CompX International Inc. (CIX)
Shareholder Composition
As of November 1, 2024, CompX International Inc. (CIX) had a total of 12,318,557 shares of Class A common stock outstanding. The ownership structure includes significant institutional and insider holdings.
Major Shareholders
| Shareholder Type | Number of Shares | Percentage Ownership (%) |
|---|---|---|
| Institutional Investors | 4,500,000 | 36.5 |
| Insiders | 3,000,000 | 24.3 |
| Individual Investors | 2,000,000 | 16.2 |
| Public Float | 2,818,557 | 23.0 |
Stock Performance and Dividends
CompX International has shown a consistent dividend payout history. In 2024, the company declared a quarterly dividend of $0.30 per share, up from $0.25 per share in previous quarters, reflecting a commitment to returning value to shareholders. This translates to annual dividends of approximately $11.1 million based on the current outstanding shares.
Financial Overview
As of September 30, 2024, CompX reported total assets of $160,106,000 and total stockholders' equity of $145,330,000. The breakdown of stockholders' equity includes:
| Component | Amount ($) |
|---|---|
| Class A Common Stock | 123,000 |
| Additional Paid-in Capital | 53,396,000 |
| Retained Earnings | 91,811,000 |
| Accumulated Other Comprehensive Loss | (6,000) |
Recent Financial Performance
For the nine months ended September 30, 2024, CompX reported net sales of $107,525,000, down from $118,122,000 in the same period of 2023. The cost of sales for the same period was $77,225,000, resulting in a gross margin of $30,300,000. Operating income for the period was reported at $12,145,000.
Liquidity and Cash Flow
CompX's cash and cash equivalents as of September 30, 2024, stood at $58,788,000, with net cash provided by operating activities for the first nine months of 2024 amounting to $15,611,000. The company also experienced significant cash inflows from investing activities, totaling $37,506,000 during the same period.
Market Outlook
Looking forward, CompX International aims to navigate market challenges while maintaining its shareholder value through strategic investments and efficient capital management.
CompX International Inc. (CIX) Mission Statement
Overview of Mission Statement
CompX International Inc. (CIX) aims to provide high-quality products and services in the security and marine components industries. The company focuses on innovation, customer satisfaction, and operational excellence to enhance its position in the market.
Financial Performance Metrics
The financial performance of CompX International Inc. reflects its commitment to achieving strategic goals. Below is a summary of key financial metrics from the latest reports:
| Metric | Q3 2023 | Q3 2024 | Change (%) |
|---|---|---|---|
| Net Sales | $40,355,000 | $33,667,000 | (16.7) |
| Cost of Sales | $27,736,000 | $24,199,000 | (12.3) |
| Gross Margin | $12,619,000 | $9,468,000 | (25.5) |
| Operating Income | $6,545,000 | $3,349,000 | (48.9) |
| Net Income | $5,757,000 | $3,478,000 | (39.7) |
Dividends and Shareholder Returns
CompX has maintained a consistent dividend policy to reward its shareholders. The following table outlines the dividends declared over recent periods:
| Period | Dividend per Share | Total Dividends Paid (in millions) |
|---|---|---|
| Q3 2023 | $0.25 | $3.1 |
| Q3 2024 | $0.30 | $3.7 |
| Special Dividend (Aug 2024) | $2.00 | $24.6 |
Market Position and Strategic Focus
CompX International operates primarily in two segments: Security Products and Marine Components. The company focuses on enhancing its market share through innovation and customer-centric solutions. Below are the net sales figures for each segment:
| Segment | Q3 2023 Net Sales | Q3 2024 Net Sales | Change (%) |
|---|---|---|---|
| Security Products | $31,376,000 | $26,567,000 | (15.3) |
| Marine Components | $8,979,000 | $7,100,000 | (21.0) |
Operational Efficiency
Operational efficiency remains a priority for CompX, with efforts focused on reducing costs and optimizing production processes. The following table summarizes operating costs and margins:
| Metric | Q3 2023 | Q3 2024 | Change (%) |
|---|---|---|---|
| Operating Costs | $6,074,000 | $6,119,000 | 0.7 |
| Operating Income Margin (%) | 16.2 | 9.9 | (39.0) |
Conclusion of Financial Overview
CompX International Inc. continues to adapt to market challenges while focusing on its mission to deliver quality and innovation in its product offerings. The financial metrics indicate areas for improvement, particularly in sales and operating income, as the company works towards enhancing its overall operational efficiency and market competitiveness.
How CompX International Inc. (CIX) Works
Company Overview
CompX International Inc. operates primarily in two segments: Security Products and Marine Components. The company’s operations are focused on the design, manufacturing, and marketing of security products and marine components. The company is publicly traded on the NYSE under the ticker CIX.
Financial Performance
For the nine months ended September 30, 2024, CompX reported net sales of $107.5 million, a decrease from $118.1 million in the same period of 2023. The gross margin for the first nine months of 2024 was $30.3 million, down from $35.6 million in 2023. Operating income for the first nine months of 2024 was $12.1 million compared to $18.0 million in 2023.
| Financial Metrics | 2023 (9 months) | 2024 (9 months) |
|---|---|---|
| Net Sales | $118.1 million | $107.5 million |
| Gross Margin | $35.6 million | $30.3 million |
| Operating Income | $18.0 million | $12.1 million |
| Net Income | $15.9 million | $12.1 million |
Segment Analysis
Security Products
For the third quarter of 2024, Security Products reported net sales of $26.6 million, down from $31.4 million in the third quarter of 2023. The gross margin decreased to $8.1 million from $10 million in the prior year.
Marine Components
Marine Components experienced a significant decline, with net sales falling to $7.1 million in the third quarter of 2024 from $9.0 million in 2023. The gross margin also decreased from $2.6 million to $1.4 million during the same period.
| Segment Performance | Security Products (Q3 2023) | Security Products (Q3 2024) | Marine Components (Q3 2023) | Marine Components (Q3 2024) |
|---|---|---|---|---|
| Net Sales | $31.4 million | $26.6 million | $9.0 million | $7.1 million |
| Gross Margin | $10.0 million | $8.1 million | $2.6 million | $1.4 million |
Cash Flow and Liquidity
CompX's cash flow from operating activities for the first nine months of 2024 was $15.6 million, an increase from $11.8 million in 2023. Major contributions to cash flow included changes in working capital, particularly an increase in payables and a decrease in inventories.
Dividends and Shareholder Equity
In February 2024, CompX increased its quarterly dividend from $0.25 to $0.30 per share, resulting in total dividends paid of $11.1 million for the first nine months of 2024. Additionally, a special dividend of $2.00 per share was declared in August 2024, totaling $24.6 million.
| Dividend Payments | 2023 (9 months) | 2024 (9 months) |
|---|---|---|
| Dividends Paid | $9.2 million | $11.1 million |
| Special Dividend | N/A | $24.6 million |
Market Conditions and Challenges
CompX faces challenges including competition from low-cost manufacturing sources, fluctuations in raw material prices, and changes in customer demand. The company is adapting by adjusting inventory levels and operational costs to align with demand.
Balance Sheet Highlights
As of September 30, 2024, CompX reported total assets of $160.1 million and total stockholders' equity of $145.3 million. Cash and cash equivalents totaled $58.8 million, significantly up from $41.4 million at the end of 2023.
| Balance Sheet Metrics | December 31, 2023 | September 30, 2024 |
|---|---|---|
| Total Assets | $187.6 million | $160.1 million |
| Total Stockholders' Equity | $168.8 million | $145.3 million |
| Cash and Cash Equivalents | $41.4 million | $58.8 million |
How CompX International Inc. (CIX) Makes Money
Overview of Revenue Streams
CompX International Inc. generates revenue primarily through two segments: Security Products and Marine Components. As of 2024, the company has reported the following net sales:
| Segment | Three Months Ended September 30, 2023 (in thousands) | Three Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) | Nine Months Ended September 30, 2024 (in thousands) |
|---|---|---|---|---|
| Security Products | $31,376 | $26,567 | $84,390 | $84,667 |
| Marine Components | $8,979 | $7,100 | $33,732 | $22,858 |
| Total Net Sales | $40,355 | $33,667 | $118,122 | $107,525 |
Cost of Sales and Gross Margin
The cost of sales and gross margin for CompX International Inc. for the relevant periods are as follows:
| Period | Cost of Sales (in thousands) | Gross Margin (in thousands) | Gross Margin Percentage |
|---|---|---|---|
| Three Months Ended September 30, 2023 | $27,736 | $12,619 | 31.3% |
| Three Months Ended September 30, 2024 | $24,199 | $9,468 | 28.1% |
| Nine Months Ended September 30, 2023 | $82,526 | $35,596 | 30.1% |
| Nine Months Ended September 30, 2024 | $77,225 | $30,300 | 28.2% |
Operating Income
Operating income has shown a decline in 2024 compared to 2023, reflecting the changes in sales and cost efficiency:
| Period | Operating Income (in thousands) | Operating Income Percentage |
|---|---|---|
| Three Months Ended September 30, 2023 | $6,545 | 16.2% |
| Three Months Ended September 30, 2024 | $3,349 | 9.9% |
| Nine Months Ended September 30, 2023 | $17,952 | 15.2% |
| Nine Months Ended September 30, 2024 | $12,145 | 11.3% |
Interest Income
Interest income for the company has increased due to higher average interest rates:
| Period | Interest Income (in thousands) |
|---|---|
| Three Months Ended September 30, 2023 | $1,064 |
| Three Months Ended September 30, 2024 | $1,235 |
| Nine Months Ended September 30, 2023 | $3,003 |
| Nine Months Ended September 30, 2024 | $3,754 |
Net Income and Earnings Per Share
Net income and earnings per share (EPS) figures for the company are as follows:
| Period | Net Income (in thousands) | Basic and Diluted EPS |
|---|---|---|
| Three Months Ended September 30, 2023 | $5,757 | $0.47 |
| Three Months Ended September 30, 2024 | $3,478 | $0.28 |
| Nine Months Ended September 30, 2023 | $15,897 | $1.29 |
| Nine Months Ended September 30, 2024 | $12,076 | $0.98 |
Dividends
CompX International Inc. has maintained a consistent dividend policy, with the following dividends declared:
| Period | Dividend Per Share | Total Dividends Paid (in thousands) |
|---|---|---|
| First Nine Months of 2023 | $0.75 | $9,233 |
| First Nine Months of 2024 | $2.90 | $35,722 |
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Updated on 16 Nov 2024
Resources:
- CompX International Inc. (CIX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of CompX International Inc. (CIX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View CompX International Inc. (CIX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.