CompX(US:CIX)2022-03-02 21:16Business 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].