COMPX INTERNATIONAL INC. Files 2023 Annual Report on Form 10-K

TL;DR

<b>COMPX INTERNATIONAL INC. filed its 2023 10-K report detailing financial performance and business operations for the fiscal year ending December 31, 2023.</b>

AI Summary

COMPX INTERNATIONAL INC (CIX) filed a Annual Report (10-K) with the SEC on February 28, 2024. COMPX INTERNATIONAL INC. filed its 2023 Form 10-K on February 28, 2024. The filing covers the fiscal year ending December 31, 2023. The company's principal business is manufacturing cutlery, handtools & general hardware. Key financial data points such as common stock, retained earnings, and additional paid-in capital are detailed as of December 31, 2023. Sales data for Security Products and Marine Components segments are provided for the fiscal years 2021, 2022, and 2023.

Why It Matters

For investors and stakeholders tracking COMPX INTERNATIONAL INC, this filing contains several important signals. This 10-K filing provides a comprehensive overview of COMPX INTERNATIONAL INC.'s financial health, operational segments, and strategic positioning for the fiscal year 2023. Investors and analysts can use this report to assess the company's performance, identify key financial metrics, and understand its market presence in the hardware and components industry.

Risk Assessment

Risk Level: medium — COMPX INTERNATIONAL INC shows moderate risk based on this filing. The company operates in the manufacturing sector, which can be subject to economic downturns and supply chain disruptions, as indicated by the segment sales data across multiple years.

Analyst Insight

Review the detailed segment sales for Security Products and Marine Components to understand revenue trends and identify growth drivers or areas of concern.

Revenue Breakdown

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-02-28 — Filing Date (Date of submission)
• 12411000 — Common Stock (2023) (Value as of 2023-12-31)
• 12340000 — Common Stock (2022) (Value as of 2022-12-31)
• 12311000 — Common Stock (2021) (Value as of 2021-12-31)

Key Players & Entities

• COMPX INTERNATIONAL INC. (company) — Filer name
• 2023 (date) — Fiscal year end
• February 28, 2024 (date) — Filing date
• CUTLERY, HANDTOOLS & GENERAL HARDWARE (industry) — Standard Industrial Classification
• Dallas, TX (location) — Business address city and state

FAQ

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-02-28: Filing Date — Date COMPX INTERNATIONAL INC. submitted its 10-K filing.

Filing Documents

• cix-20231231x10k.htm (10-K) — 1551KB
• cix-20231231xex10d5.htm (EX-10.5) — 55KB
• cix-20231231xex21d1.htm (EX-21.1) — 12KB
• cix-20231231xex23d1.htm (EX-23.1) — 4KB
• cix-20231231xex31d1.htm (EX-31.1) — 14KB
• cix-20231231xex31d2.htm (EX-31.2) — 14KB
• cix-20231231xex32d1.htm (EX-32.1) — 8KB
• cix-20231231xex97.htm (EX-97) — 130KB
• cix-20231231x10k005.jpg (GRAPHIC) — 59KB
• 0001558370-24-002007.txt (&nbsp;) — 6418KB
• cix-20231231.xsd (EX-101.SCH) — 35KB
• cix-20231231_cal.xml (EX-101.CAL) — 48KB
• cix-20231231_def.xml (EX-101.DEF) — 136KB
• cix-20231231_lab.xml (EX-101.LAB) — 350KB
• cix-20231231_pre.xml (EX-101.PRE) — 252KB
• cix-20231231x10k_htm.xml (XML) — 1000KB

BUSINESS

ITEM 1. BUSINESS General CompX International Inc. (NYSE American: CIX), incorporated in Delaware in 1993, is a leading manufacturer of security products used in the postal, recreational transportation, office and institutional furniture, cabinetry, tool storage, healthcare and a variety of other industries. We are also a leading manufacturer of wake enhancement systems, stainless steel exhaust systems, gauges, throttle controls and trim tabs for the recreational marine industry. Our products are principally designed for use in medium to high-end product applications where design, quality and durability are valued by our customers. At December 31, 2023, NL Industries, Inc. (NYSE: NL) owns approximately 87% of our outstanding common stock, Valhi, Inc. (NYSE: VHI) owns approximately 83% of NL's outstanding common stock and a subsidiary of Contran Corporation owns approximately 91% of Valhi's outstanding common stock. As discussed in Note 1 to our Consolidated Financial Statements, a majority of Contran's outstanding voting stock is held directly by Lisa K. Simmons, Thomas C. Connelly (the husband of Ms. Simmons' late sister), and various family trusts established for the benefit of Ms. Simmons, Mr. Connelly and their children and for which Ms. Simmons or Mr. Connelly, as applicable, serve as trustee (collectively, the "Other Trusts"). With respect to the Other Trusts for which Mr. Connelly serves as trustee, he is required to vote the shares of Contran voting stock held in such trusts in the same manner as Ms. Simmons. Such voting rights of Ms. Simmons last through April 22, 2030 and are personal to Ms. Simmons. The remainder of Contran's outstanding voting stock is held by another trust (the "Family Trust"), which was established for the benefit of Ms. Simmons and her late sister and their children and for which a third-party financial institution serves as trustee. Consequently, at December 31, 2023, Ms. Simmons and the Family Trust may be deemed to control Contra

Forward-Looking Statements

Forward-Looking Statements This Annual Report on Form 10-K contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Statements in this Annual Report that are not historical facts are forward-looking in nature and represent management's beliefs and assumptions based on currently available information. In some cases, you can identify forward-looking statements by the use of words such as "believes," "intends," "may," "should," "could," "anticipates," "expects" or comparable terminology, or by discussions of strategies or trends. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we do not know if these expectations will be correct. Such statements by their nature involve substantial risks and uncertainties that could significantly impact expected results. Actual future results could differ materially from those predicted. The factors that could cause actual future results to differ materially from those described herein are the risks and uncertainties discussed in this Annual Report and those described from time to time in our other filings with the U.S. Securities and Exchange Commission (the "SEC") and 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, - 2 - 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

RISK FACTORS

ITEM 1A. RISK FACTORS Listed below are certain risk factors associated with us and our businesses. In addition to the potential effect of these risk factors discussed below, any risk factor which could result in reduced earnings, operating losses, or reduced liquidity, could in turn adversely affect our ability to service our liabilities or pay dividends on our common stock or adversely affect the quoted market prices for our securities. Operational Risk Factors We operate in mature and highly competitive markets, resulting in pricing pressure and the need to continuously reduce costs. Many of the markets we serve are highly competitive, with a number of competitors offering similar products. We focus our efforts on the middle and high-end segment of the market where we feel that we can compete due to the importance of product design, quality and durability to the customer. However, our ability to effectively compete is impacted by a number of factors. The occurrence of any of these factors could result in reduced earnings or operating losses. Competitors may be able to drive down prices for our products beyond our ability to adjust costs because their costs are lower than ours, especially products sourced from Asia. Competitors' financial, technological and other resources may be greater than our resources, which may enable them to more effectively withstand changes in market conditions. Competitors may be able to respond more quickly than we can to new or emerging technologies and changes in customer requirements. A reduction of our marke

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View this 10-K filing on SEC EDGAR