CompX(CIX) - 2020 Q2 - Quarterly Report

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]