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 September 30, 2022 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 (S ...

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, 2022 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 ...

Financial Performance - Operating income increased to $6.3 million in Q1 2022, up from $5.8 million in Q1 2021, primarily due to higher sales in both Security Products and Marine Components segments [44]. - Net sales rose by $6.1 million in Q1 2022 to $42.1 million, driven by a 14% increase in Security Products sales and a 24% increase in Marine Components sales [45][52][53]. - Gross margin percentage decreased to 28.7% in Q1 2022 from 30.7% in Q1 2021, attributed to increased production costs across both segments [46]. - Operating costs increased to $5.8 million in Q1 2022, up from $5.2 million in Q1 2021, due to higher salary, benefit costs, and increased expenses in advertising and travel [47]. - The company expects strong demand to continue in 2022, projecting increased net sales and operating income compared to 2021 [57]. Sales Performance - Security Products net sales increased by $1.4 million in the government security market and $0.9 million to distributors in Q1 2022 compared to Q1 2021 [52]. - Marine Components net sales increased by $2.0 million to original equipment boat manufacturers in the towboat market in Q1 2022 [53]. Cash Flow and Liquidity - The company reported a net cash used by operating activities decrease of $0.2 million in Q1 2022 compared to Q1 2021, primarily due to increased operating income [60]. - As of March 31, 2022, the company had $70.2 million in cash and cash equivalents, all held in the U.S. [71]. - The company plans to use cash generated from operations and cash on hand to meet liquidity needs for the next 12 months and five years [70]. - The company evaluated liquidity requirements and may seek to raise additional capital or restructure indebtedness in the future [68]. Capital Expenditures and Investments - Capital expenditures for the first three months of 2022 were $1.7 million, compared to $0.6 million in the same period of 2021 [64]. - Firm purchase commitments for capital projects in process at March 31, 2022, totaled $0.6 million [71]. - The company has 602,547 shares available for repurchase under an authorized stock repurchase program as of March 31, 2022 [72]. - The company acquired 50,000 shares of its Class A common stock for $0.8 million during the first quarter of 2021 [66]. Inventory and Efficiency - Average days sales outstanding for Security Products improved to 42 days in Q1 2022 from 46 days in Q1 2021, indicating better collection efficiency [63]. - Days in inventory for consolidated CompX decreased from 96 days in December 2021 to 85 days in March 2022 [64]. Dividends and Shareholder Returns - The board of directors increased the regular quarterly dividend from $0.20 per share to $0.25 per share starting in the first quarter of 2022 [65]. Market Risks - The company is exposed to market risk from changes in interest rates and raw material prices, with no material changes reported since the 2021 Annual Report [75]. Supply Chain Issues - Current global supply chain disruptions are impacting sourcing of raw materials, leading to increased production costs, which the company is addressing through price increases and surcharges [57][58].

Business Segments - The company operates in two segments: Security Products and Marine Components, with a significant North American market share in cabinet lock security products [12]. Sales and Customers - In 2021, the United States Postal Service accounted for 16% of total sales, with the top ten customers representing approximately 51% of sales [27]. Cost Structure - Raw materials accounted for approximately 16% of total cost of sales in 2021, with total material costs representing about 44% of cost of sales [19]. - The company experienced price volatility in raw materials, particularly stainless steel, which impacted margins during 2021 [20]. Workforce and Safety - The company employs 570 people as of December 31, 2021, and maintains good labor relations [36]. - The Lost Time Incident Rate was three in 2019, nil in 2020, and one in 2021, indicating a strong safety performance [38]. Intellectual Property - The company holds patents with remaining terms ranging from 1 to 18 years as of December 31, 2021, which are important for its business [23]. Financial Performance - Interest income from a note receivable from an affiliate was $1.2 million in 2021, with an outstanding principal amount of $18.7 million [139]. Market Strategy - The company focuses on high-end market segments, competing on product design, quality, and service [28]. Environmental Sustainability - The company engages in various environmental sustainability programs and has received awards for its performance in this area [33]. Raw Material Supply Management - The company occasionally enters into short-term commodity-related raw material supply arrangements to mitigate future cost increases [140]. - There are no long-term supply agreements for raw material requirements due to low risk of unavailability and high downside risk of price volatility [140]. - The company does not engage in commodity raw material hedging programs [140].

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 September 30, 2021 ☐ 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 or other jurisdi ...

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, 2021 ☐ 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 or other jurisdiction ...

Financial Performance - For the three months ended March 31, 2021, net sales increased to $35,924,000, up 11.5% from $32,311,000 in the same period of 2020[12] - Net income for the three months ended March 31, 2021, was $4,685,000, an increase of 9.7% from $4,271,000 in the prior year[12] - Basic and diluted net income per common share rose to $0.38, compared to $0.34 for the same period in 2020[12] - Total net sales increased from $32,311 thousand in Q1 2020 to $35,924 thousand in Q1 2021, representing an increase of 16.2%[25] - Operating income rose from $5,020 thousand in Q1 2020 to $5,817 thousand in Q1 2021, reflecting a growth of 15.9%[25] - Net income rose from $4,271 thousand in Q1 2020 to $4,685 thousand in Q1 2021, marking an increase of 9.7%[13] - Total net sales increased from $32,311 thousand in Q1 2020 to $35,924 thousand in Q1 2021, representing a growth of 8.1%[25] Gross Margin and Expenses - Gross margin for the same period improved to $11,035,000, representing a gross margin percentage of 30.7%, compared to $10,431,000 and 32.3% in 2020[12] - Total income tax expense increased from $1,356 thousand in Q1 2020 to $1,470 thousand in Q1 2021, an increase of 8.4%[29] Assets and Liabilities - Total current assets as of March 31, 2021, were $101,807,000, slightly up from $101,246,000 at December 31, 2020[10] - Total assets decreased to $183,801,000 as of March 31, 2021, from $184,045,000 at December 31, 2020[10] - Total stockholders' equity increased to $169,096,000 as of March 31, 2021, compared to $167,656,000 at December 31, 2020[10] - Total accounts payable and accrued liabilities decreased from $12,198 thousand as of December 31, 2020, to $9,497 thousand by March 31, 2021, a reduction of 22.1%[28] Cash Flow and Dividends - Cash and cash equivalents at the end of the period were $64,747,000, down from $70,637,000 at the beginning of the period[10] - The company paid cash dividends of $2,490,000 during the three months ended March 31, 2021, compared to $1,244,000 in the same period of 2020[19] - The company reported a net cash used in operating activities of $2,377,000 for the three months ended March 31, 2021, compared to a net cash used of $205,000 in the same period of 2020[19] - Cash and cash equivalents decreased from $70,637 thousand as of December 31, 2020, to $64,747 thousand by March 31, 2021, a decrease of 8.3%[32] Inventory and Receivables - Accounts receivable, net increased significantly from $10,731 thousand as of December 31, 2020 to $16,858 thousand by March 31, 2021, a rise of 57.2%[25] - Total inventories, net decreased slightly from $18,337 thousand as of December 31, 2020 to $18,153 thousand by March 31, 2021, a decline of 1.0%[26] Stock Repurchase and Other Notes - The company repurchased 50,000 shares of Class A common stock for approximately $755,000 during Q1 2021[31] - The outstanding principal balance receivable from Valhi under a promissory note was $29.2 million as of March 31, 2021[34] - Interest income from the loan to Valhi was $0.4 million for Q1 2020 and $0.3 million for Q1 2021, indicating a slight decrease[34]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 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 or other jurisdiction of ...

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 September 30, 2020 ☐ 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 or other jurisdi ...

Financial Performance - Net sales for the second quarter of 2020 were $23,800, a decrease of 29.5% compared to $33,730 in the same period of 2019[12] - Gross margin for the first half of 2020 was $17,797, down from $20,563 in the first half of 2019, reflecting a decline of 13.4%[12] - Net income for the six months ended June 30, 2020, was $6,336, a decrease of 28.9% from $8,881 in the same period of 2019[12] - Operating income for the second quarter of 2020 was $2,369, down 57.8% from $5,622 in the same quarter of 2019[12] - The company reported a net income before taxes of $2.7 million for Q2 2020, compared to $6.5 million in Q2 2019, reflecting a decline of 58.2%[24] - Cash flows from operating activities for the first half of 2020 were $4,945, a decrease from $5,928 in the first half of 2019[19] - Interest income for the first six months of 2020 was $977,000, down from $1.7 million in the same period of 2019, reflecting a decline of 41.2%[24] Assets and Equity - Total assets increased from $178,544 as of December 31, 2019, to $181,228 as of June 30, 2020, representing a growth of 1.9%[9] - Cash and cash equivalents decreased slightly from $63,255 at the end of 2019 to $62,450 by June 30, 2020[9] - Total stockholders' equity rose from $162,195 at December 31, 2019, to $166,160 at June 30, 2020, an increase of 2.0%[9] Inventory and Receivables - The company reported a decrease in inventories from $18,348 at December 31, 2019, to $21,818 at June 30, 2020, indicating a 19.5% increase[9] - Total inventories increased to $21.8 million as of June 30, 2020, up from $18.3 million at the end of 2019, indicating a rise of 19.9%[26] - Accounts receivable decreased slightly to $11.3 million from $11.9 million at the end of 2019, a reduction of 4.5%[25] Dividends and Liabilities - The company paid dividends of $2,489 in the first half of 2020, compared to $1,742 in the same period of 2019, reflecting a 43.0% increase[19] - Accounts payable and accrued liabilities decreased to $9.6 million as of June 30, 2020, down from $12.1 million at the end of 2019, a reduction of 20.1%[28] Impact of COVID-19 - The company’s operations were significantly impacted by the COVID-19 pandemic, leading to reduced demand and government-mandated closures[22] - Future operations will depend on the duration and severity of the COVID-19 pandemic and its effects on customer demand[22] - The COVID-19 pandemic significantly impacted operations, leading to reduced demand and government-mandated closures affecting financial performance[22] Segment Performance - Security Products segment net sales were $18.6 million, down 30.9% from $26.9 million year-over-year, while Marine Components segment sales decreased by 23.1% to $5.2 million from $6.8 million[24] - Total operating income for Q2 2020 was $2.4 million, a decrease of 57.8% from $5.6 million in Q2 2019[24]