CompX International (CIX) Q3 2024 earnings summary

Executive summary

• Net sales for Q3 2024 were $33.7 million, down 16.6% year-over-year; nine-month sales were $107.5 million, down 9% from 2023.

• Operating income for Q3 2024 was $3.3 million, a 49% decrease year-over-year; nine-month operating income was $12.1 million, down 32% from 2023.

• Net income for Q3 2024 was $3.5 million, down from $5.8 million in Q3 2023; nine-month net income was $12.1 million, down from $15.9 million.

• Declines in both Security Products and Marine Components segments drove lower sales and margins.

Financial highlights

• Gross margin for Q3 2024 was $9.5 million (28.1% of sales), down from $12.6 million (31.3%) in Q3 2023.

• EPS for Q3 2024 was $0.28, compared to $0.47 in Q3 2023; nine-month EPS was $0.98, down from $1.29.

• Cash and cash equivalents increased to $58.8 million at September 30, 2024, from $41.4 million at year-end 2023.

• Paid $35.7 million in dividends in the first nine months of 2024, including a $2.00 per share special dividend.

Outlook and guidance

• Security Products sales for the remainder of 2024 expected to be challenged by lower government security sales; recurring sales remain strong.

• Security Products gross and operating margins for 2024 expected to be lower than 2023 due to reduced coverage of fixed costs and higher input costs.

• Marine Components sales for 2024 expected to be lower due to continued weakness in the recreational marine industry.

• Marine Components margins expected to decline further due to lower sales and higher raw material costs.