CompX International Inc. (CIX) has reported 70.59 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $2.90 million, or $0.23 a share in the quarter, compared with $1.70 million, or $0.13 a share for the same period last year. Revenue during the quarter went up marginally by 2.33 percent to $26.30 million from $25.70 million in the previous year period. Gross margin for the quarter expanded 542 basis points over the previous year period to 34.60 percent. Total expenses were 84.79 percent of quarterly revenues, down from 89.88 percent for the same period last year. This has led to an improvement of 509 basis points in operating margin to 15.21 percent.
Operating income for the quarter was $4 million, compared with $2.60 million in the previous year period.
"We are very pleased with the continued strong performance of both our Security Products and Marine Components segments in 2016," commented David A. Bowers, chief executive officer. "Security Products posted sales comparable to prior year, with improved earnings, despite significant 2015 sales which did not recur in 2016. Meanwhile, our Marine Components segment continues to grow its sales and earnings through diversification and innovation in product offerings. Although we do not expect demand for government security applications to equal 2016 volumes, we look forward to continued strong demand for our broad product line as we enter 2017. We remain committed to continuing to serve the component needs of our customer base through product innovation, quality and service."
Working capital drops significantlyCompX International Inc. has witnessed a decline in the working capital over the last year. It stood at $45.90 million as at Dec. 31, 2016, down 29.19 percent or $18.92 million from $64.82 million on Dec. 31, 2015. Current ratio was at 4.45 as on Dec. 31, 2016, down from 6.36 on Dec. 31, 2015. Days sales outstanding went up to 18 days for the quarter compared with 16 days for the same period last year.
Days inventory outstanding has increased to 40 days for the quarter compared with 38 days for the previous year period.
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