COMPX
INTERNATIONAL INC.
|
(Exact
name of Registrant as specified in its
charter)
|
Delaware
|
57-0981653
|
|
(State
or other jurisdiction of
Incorporation
or organization)
|
(IRS
Employer
Identification
No.)
|
|
5430
LBJ Freeway, Suite 1700,
Three
Lincoln Centre, Dallas, Texas
|
75240-2697
|
|
(Address
of principal executive offices)
|
(Zip
Code)
|
|
Registrant’s
telephone number, including area code
|
(972)
448-1400
|
|
Securities
registered pursuant to Section 12(b) of the
Act:
|
||
Title
of each class
|
Name
of each exchange
on
which registered
|
|
Class
A common stock
($.01
par value per share)
|
New
York Stock Exchange
|
|
Securities
registered pursuant to Section 12(g) of the
Act: None.
|
||
· |
Future
supply and demand for our products,
|
· |
Changes
in our raw material and other operating costs (such as steel and
energy
costs),
|
· |
General
global economic and political conditions, (such as changes in the
level of
gross domestic product in various regions of the
world),
|
· |
Demand
for office furniture,
|
· |
Service
industry employment levels,
|
· |
The
possibility of labor disruptions,
|
· |
Competitive
products and prices, including increased competition from low-cost
manufacturing sources (such as China),
|
· |
Substitute
products,
|
· |
Customer
and competitor strategies,
|
· |
Costs
and expenses associated with compliance with certain requirements
of the
Sarbanes-Oxley Act of 2002 relating to the evaluation of our internal
control over financial reporting,
|
· |
The
introduction of trade barriers,
|
· |
The
impact of pricing and production decisions,
|
· |
Fluctuations
in the value of the U.S. dollar relative to other currencies (such
as the
Canadian dollar and New Taiwan dollar),
|
· |
Potential
difficulties in integrating completed or future acquisitions,
|
· |
Decisions
to sell operating assets other than in the ordinary course of
business,
|
· |
Uncertainties
associated with new product development,
|
· |
Environmental
matters (such as those requiring emission and discharge standards
for
existing and new facilities),
|
· |
The
ability of the Company to comply with covenants contained in its
revolving
bank credit facility,
|
· |
The
ultimate outcome of income tax audits, tax settlement initiatives
or other
tax matters,
|
· |
The
impact of current or future government
regulations,
|
· |
Possible
future litigation,
|
· |
Possible
disruption of our business or increases in the cost of doing business
resulting from terrorist activities or global
conflicts,
|
· |
Operating
interruptions (including, but not limited to labor disputes, leaks,
natural disasters, fires, explosions, unscheduled, or unplanned downtime
and transportation interruptions);
and
|
· |
Government
laws and regulations and possible changes
therein.
|
· |
disc
tumbler locks which provide moderate security and generally represent
the
lowest cost lock to produce;
|
· |
pin
tumbler locking mechanisms which are more costly to produce and are
used
in applications requiring higher levels of security, including our
KeSet
high
security system, which allows the user to change the keying on a
single
lock 64 times without removing the lock from its enclosure; and
|
· |
our
innovative eLock electronic locks which provide stand alone security
and
audit trail capability for drug storage and other valuables through
the
use of a proximity card, magnetic stripe, or keypad
credentials.
|
· |
our
patented Integrated
Slide Lock
which allows a file cabinet manufacturer to reduce the possibility
of
multiple drawers being opened at the same
time;
|
· |
our
patented adjustable Ball
Lock
which reduces the risk of heavily-filled drawers, such as auto mechanic
tool boxes, from opening while in
movement;
|
· |
our
Self-Closing
Slide,
which is designed to assist in closing a drawer and is used in
applications such as bottom mount
freezers;
|
· |
articulating
computer keyboard support arms (designed to attach to desks in the
workplace and home office environments to alleviate possible strains
and
stress and maximize usable workspace), along with our patented
LeverLock
keyboard arm, which is designed to make ergonomic adjustments to
the
keyboard arm easier;
|
· |
CPU
storage devices which minimize adverse effects of dust and moisture;
and
|
· |
complimentary
accessories, such as ergonomic wrist rest aids, mouse pad supports
and
flat screen computer monitor support
arms.
|
· |
original
equipment and aftermarket stainless steel exhaust headers, exhaust
pipes,
mufflers, other exhaust components and billet accessories; and
|
· |
high
performance gauges and related components such as GPS speedometers,
throttles, controls, tachometers and
panels.
|
Security
Products
|
Furniture
Components
|
Marine
Components
|
||
Mauldin,
SC
River
Grove, IL
Lake
Bluff, IL
|
Kitchener,
Ontario
Byron
Center, MI
Taipei,
Taiwan
|
Neenah,
WI
Grayslake,
IL
|
· |
zinc
(used in the Security Products segment for the manufacture of locking
mechanisms);
|
· |
coiled
steel (used in the Furniture Components segment for the manufacture
of
precision ball bearing slides and ergonomic computer support
systems);
|
· |
stainless
steel (used in the Marine Components segment for the manufacture
of
exhaust headers and pipes and other components;
and
|
· |
plastic
resins (also used in the Furniture Components segment for injection
molded
plastics in the manufacturer of ergonomic computer support
systems).
|
Furniture
Components
|
Security
Products
|
Marine
Components
|
||
CompX
Precision Slides®
|
CompX
Security Products®
|
Custom
Marine®
|
||
CompX
Waterloo®
|
KeSet®
|
Livorsi
Marine®
|
||
CompX
ErgonomX®
|
Fort
Lock®
|
CMI
Industrial Mufflers™
|
||
CompX
DurISLide®
|
Timberline®
|
Custom
Marine Stainless
|
||
Dynaslide®
|
Chicago
Lock®
|
Exhaust™
|
||
Waterloo
Furniture
|
ACE
II®
|
The
#1 Choice in
|
||
Components
Limited®
|
TuBar®
|
Performance
Boating®
|
||
STOCK
LOCKS®
|
Mega
Rim™
|
|||
National
Cabinet Lock®
|
Race
Rim™
|
|||
CompX
Marine™
|
United
States
|
711
|
|||
Canada(1)
|
278
|
|||
Taiwan
|
148
|
|||
Total
|
1,137
|
|||
Facility
Name
|
Business
Segment
|
Location
|
Size
(square
feet)
|
Products
Produced
|
|||||||||
Owned
Facilities:
|
|||||||||||||
Waterloo
|
FC
|
Kitchener,
Ontario
|
276,000
|
Slides/ergonomic
products
|
|||||||||
Durislide
|
FC
|
Byron
Center, MI
|
143,000
|
Slides
|
|||||||||
National
|
SP
|
Mauldin,
SC
|
198,000
|
Security
products
|
|||||||||
Fort
|
SP
|
River
Grove, IL
|
100,000
|
Security
products
|
|||||||||
Dynaslide
|
FC
|
Taipei,
Taiwan
|
45,500
|
Slides
|
|||||||||
Custom
|
MC
|
Neenah,
WI
|
95,000
|
Specialty
marine products
|
|||||||||
Livorsi
|
MC
|
Grayslake,
IL
|
16,000
|
Specialty
marine products
|
|||||||||
Leased
Facilities:
|
|||||||||||||
Dynaslide
|
FC
|
Taipei,
Taiwan
|
36,000
|
Slides
|
|||||||||
Dynaslide
|
FC
|
Taipei,
Taiwan
|
45,500
|
Slides
|
|||||||||
Distribution
Center
|
SP/FC
|
Rancho
Cucamonga, CA
|
12,000
|
Product
distribution
|
|||||||||
Timberline
|
SP
|
Lake
Bluff, IL
|
16,000
|
Security
products
|
High
|
Low
|
Dividends
paid
|
||||||||
Year
ended December 31, 2005
|
||||||||||
First
Quarter
|
$
|
18.05
|
$
|
16.15
|
$
|
.125
|
||||
Second
Quarter
|
16.98
|
14.45
|
.125
|
|||||||
Third
Quarter
|
19.15
|
15.38
|
.125
|
|||||||
Fourth
Quarter
|
17.46
|
15.01
|
.125
|
|||||||
Year
ended December 31, 2006
|
||||||||||
First
Quarter
|
$
|
18.36
|
$
|
14.62
|
$
|
.125
|
||||
Second
Quarter
|
17.90
|
15.25
|
.125
|
|||||||
Third
Quarter
|
17.66
|
15.44
|
.125
|
|||||||
Fourth
Quarter
|
20.50
|
14.89
|
.125
|
|||||||
January
1, 2007 through February
28, 2007
|
December
31,
|
|||||||||||||||||||
|
2001
|
2002
|
2003
|
2004
|
2005
|
2006
|
|||||||||||||
CompX
International Inc.
|
$
|
100
|
$
|
68
|
$
|
53
|
$
|
137
|
$
|
137
|
$
|
178
|
|||||||
Russell
2000 Index
|
100
|
80
|
117
|
139
|
145
|
171
|
|||||||||||||
New
Peer Group
|
100
|
100
|
99
|
133
|
111
|
119
|
|||||||||||||
Old
Peer Group
|
100
|
89
|
96
|
120
|
109
|
135
|
Years
ended December
31,
|
||||||||||||||||
2002
|
2003
|
2004
|
2005
|
2006
|
||||||||||||
($
in millions, except per share data)
|
||||||||||||||||
Statements
of Operations Data:
|
||||||||||||||||
Net
sales
|
$
|
166.7
|
$
|
174.0
|
$
|
182.6
|
$
|
186.3
|
$
|
190.1
|
||||||
Gross
Margin
|
$
|
29.1
|
$
|
31.1
|
$
|
39.8
|
$
|
43.8
|
$
|
46.5
|
||||||
Operating
income
|
$
|
6.1
|
$
|
8.8
|
$
|
15.4
|
$
|
19.1
|
$
|
20.3
|
||||||
Provision
for income taxes
|
$
|
3.0
|
$
|
3.4
|
$
|
7.8
|
$
|
18.6
|
$
|
9.7
|
||||||
Income
from continuing operations
|
$
|
0.9
|
$
|
5.8
|
$
|
9.5
|
$
|
0.9
|
$
|
11.7
|
||||||
Discontinued
operations
|
(0.3
|
)
|
(4.5
|
)
|
(12.5
|
)
|
(0.5
|
)
|
-
|
|||||||
Net
income (loss)
|
$
|
0.6
|
$
|
1.3
|
$
|
(3.0
|
)
|
$
|
0.4
|
$
|
11.7
|
|||||
Diluted
Earnings Per Share Data:
|
||||||||||||||||
Income
(loss) from:
|
||||||||||||||||
Continuing
operations
|
$
|
.06
|
$
|
.38
|
$
|
.63
|
$
|
.06
|
$
|
.76
|
||||||
Discontinued
operations
|
(.02
|
)
|
(.30
|
)
|
(.83
|
)
|
(.03
|
)
|
-
|
|||||||
$
|
.04
|
$
|
.08
|
$
|
(.20
|
)
|
$
|
.03
|
$
|
.76
|
||||||
Cash
dividends
|
$
|
.50
|
$
|
.125
|
$
|
.125
|
$
|
.50
|
$
|
.50
|
||||||
Weighted
average common shares Outstanding
|
15.1
|
15.1
|
15.2
|
15.2
|
15.3
|
|||||||||||
Balance
Sheet Data (at year end):
|
||||||||||||||||
Cash
and other current assets
|
$
|
71.3
|
$
|
80.2
|
$
|
78.3
|
$
|
80.8
|
$
|
76.2
|
||||||
Total
assets
|
200.1
|
210.7
|
186.3
|
188.6
|
192.0
|
|||||||||||
Current
liabilities
|
22.2
|
24.5
|
26.0
|
20.3
|
17.8
|
|||||||||||
Long-term
debt, including current maturities
|
31.0
|
26.0
|
0.1
|
1.6
|
-
|
|||||||||||
Stockholders'
equity
|
142.0
|
154.4
|
155.3
|
150.1
|
153.7
|
|||||||||||
Statements
of Cash Flow Data:
|
||||||||||||||||
Cash
provided (used) by:
|
||||||||||||||||
Operating
activities
|
$
|
16.9
|
$
|
24.4
|
$
|
30.2
|
$
|
20.0
|
$
|
27.4
|
||||||
Investing
activities
|
(12.7
|
)
|
(8.2
|
)
|
(3.2
|
)
|
(3.7
|
)
|
(19.3
|
)
|
||||||
Financing
activities
|
(25.5
|
)
|
(7.3
|
)
|
(27.1
|
)
|
(7.2
|
)
|
(8.8
|
)
|
· |
We
provide reserves for estimated obsolete or unmarketable inventories
equal
to the difference between the cost of inventories and the estimated
net
realizable value using assumptions about future demand for our products
and market conditions. We also consider the age and the quantity
of
inventory on hand in estimating the reserve. If actual market conditions
are less favorable than those we projected, we may be required to
recognize additional inventory reserves.
|
· |
We
recognize an impairment charge associated with our long-lived assets,
including property and equipment, goodwill and other intangible assets,
whenever we determine that recovery of such long-lived asset is not
probable. Our determination is made in accordance with applicable
GAAP
requirements associated with the long-lived asset, and is based upon,
among other things, our estimates of the amount of future net cash
flows
to be generated by the long-lived asset and our estimates of the
current
fair value of the asset. Adverse changes in such estimates of future
net
cash flows or estimates of fair value could result in our inability
to
recover the carrying value of the long-lived asset, thereby possibly
requiring us to recognize an impairment charge.
Under
applicable GAAP (SFAS No. 142, Goodwill
and other Intangible Assets),
we are required to review goodwill for impairment at least on an
annual
basis. We are also required to review goodwill for impairment at
other
times during each year when impairment indicators, as defined,
are
present. No goodwill impairments were deemed to exist as a result
of our
annual impairment review completed during the third quarter of
2006, as
the estimated fair value of each reporting unit exceeded the net
carrying
value of the respective reporting unit. See Notes 1 and 4 to the
Consolidated Financial Statements. The estimated fair values of
these
three reporting units are determined based on discounted cash flow
projections. Significant judgment is required in estimating such
cash
flows. Such estimated cash flows are inherently uncertain, and
there can
be no assurance that such operations will achieve the future cash
flows
reflected in its projections. In December 2004, our Thomas Regout
operations met the criteria under GAAP to be classified as “held for sale”
and thus were required to be measured at the lower of its carrying
amount
or estimated fair value less cost to sell. At such time, we recognized
a
$14.4 million impairment of the goodwill related to such operations,
as
the carrying amount of the net assets exceeded the estimated fair
value
less cost to sell of the operations. The disposal of such operations
was
completed in January 2005, and therefore we no longer report goodwill
attributable to such operations at December 31, 2006. See Note
10 to the
Consolidated Financial Statements.
Under
applicable GAAP (SFAS No. 144, Accounting for the Impairment or
Disposal
of Long-Lived Assets), we do not assess property and equipment
for
impairment unless certain impairment indicators, as defined, are
present.
During 2006, no impairment indicators were present with respect
to our
property and equipment.
|
· |
We
record a valuation allowance to reduce our gross deferred income
tax
assets to the amount that is believed to be realized under the
"more-likely-than-not" recognition criteria. While we have considered
future taxable income and ongoing prudent and feasible tax planning
strategies in assessing the need for a valuation allowance, it is
possible
that in the future we may change our estimate of the amount of the
deferred income tax assets that would "more-likely-than-not" be realized
in the future resulting in an adjustment to the deferred income tax
asset
valuation allowance that would either increase or decrease, as applicable,
reported net income in the period such change in estimate was
made.
In
addition, we make an evaluation at the end of each reporting period
as to
whether or not some or all of the undistributed earnings of our
foreign
subsidiaries are permanently reinvested (as that term is defined
in GAAP).
While we may have concluded in the past that some of such undistributed
earnings are permanently reinvested, facts and circumstances can
change in
the future, and it is possible that a change in facts and circumstances,
such as a change in the expectation regarding the capital needs
of our
foreign subsidiaries, could result in a conclusion that some or
all of
such undistributed earnings are no longer permanently reinvested.
In such
an event, we would be required to recognize a deferred income tax
liability in an amount equal to the estimated incremental U.S.
income tax
and withholding tax liability that would be generated if all of
such
previously-considered permanently reinvested undistributed earnings
were
distributed to us in the U.S. In this regard, during 2005 we determined
that certain of the undistributed earnings of our non-U.S. operations
could no longer be considered permanently reinvested, and in accordance
with GAAP we recognized an aggregate $9.0 million provision for
deferred
income taxes on such undistributed earnings of our foreign subsidiaries.
See Note 8 to the Consolidated Financial
Statements.
|
· |
We
record accruals for environmental, legal, income tax and other
contingencies and commitments when estimated future expenditures
associated with such contingencies become probable, and we can reasonably
estimate the amounts of such future expenditures. However, new information
may become available to us, or circumstances (such as applicable
laws and
regulations) may change, thereby resulting in an increase or decrease
in
the amount we are required to accrue for such matters (and, therefore,
decrease or increase our reported net income in the period of such
change.)
|
Years
ended December 31,
|
%
Change
|
|||||||||||||||
2004
|
2005
|
2006
|
2004-05
|
2005-06
|
||||||||||||
(Dollars
in millions)
|
||||||||||||||||
Net
sales
|
$
|
182.6
|
$
|
186.3
|
$
|
190.1
|
2
|
%
|
2
|
%
|
||||||
Cost
of sales
|
142.8
|
142.6
|
143.6
|
-
|
1
|
%
|
||||||||||
Gross
margin
|
39.8
|
43.7
|
46.5
|
10
|
%
|
6
|
%
|
|||||||||
Operating
costs and expenses
|
24.4
|
24.6
|
26.2
|
1
|
%
|
7
|
%
|
|||||||||
Operating
income
|
$
|
15.4
|
$
|
19.1
|
$
|
20.3
|
24
|
%
|
6
|
%
|
||||||
Percent
of net sales:
|
||||||||||||||||
Cost
of sales
|
78
|
%
|
77
|
%
|
76
|
%
|
||||||||||
Gross
margin
|
22
|
%
|
23
|
%
|
24
|
%
|
||||||||||
Operating
costs and expenses
|
13
|
%
|
13
|
%
|
14
|
%
|
||||||||||
Operating
income
|
8
|
%
|
10
|
%
|
11
|
%
|
Increase
(decrease) -
Year
ended December
31,
|
|||||||
2004
vs 2005
|
2005
vs 2006
|
||||||
Impact
on:
|
(In
thousands)
|
||||||
Net
sales
|
$
|
1,541
|
$
|
1,138
|
|||
Operating
income
|
(2,251
|
)
|
(1,132
|
)
|
Years
ended December 31,
|
% Change
|
|||||||||||||||
2004
|
2005
|
2006
|
2004
- 2005
|
2005
- 2006
|
||||||||||||
(In
millions)
|
||||||||||||||||
Net
sales:
|
||||||||||||||||
Security
Products
|
$
|
75.9
|
$
|
76.7
|
$
|
81.7
|
1
|
%
|
7
|
%
|
||||||
Furniture
Components
|
106.7
|
105.5
|
93.0
|
(1
|
%)
|
(12
|
%)
|
|||||||||
Marine
Components
|
-
|
4.1
|
15.4
|
n.m.
|
276
|
%
|
||||||||||
Total
net sales
|
$
|
182.6
|
$
|
186.3
|
$
|
190.1
|
2
|
%
|
2
|
%
|
||||||
Gross
margin:
|
||||||||||||||||
Security
Products
|
$
|
20.6
|
$
|
22.1
|
$
|
23.9
|
7
|
%
|
8
|
%
|
||||||
Furniture
Components
|
19.2
|
20.8
|
18.9
|
8
|
%
|
(9
|
%)
|
|||||||||
Marine
Components
|
-
|
0.9
|
3.7
|
n.m.
|
311
|
%
|
||||||||||
Total
gross margin
|
$
|
39.8
|
$
|
43.8
|
$
|
46.5
|
10
|
%
|
6
|
%
|
||||||
Operating
income:
|
||||||||||||||||
Security
Products
|
$
|
11.6
|
13.1
|
14.6
|
13
|
%
|
11
|
%
|
||||||||
Furniture
Components
|
8.9
|
11.0
|
10.1
|
24
|
%
|
(8
|
%)
|
|||||||||
Marine
Components
|
-
|
0.5
|
0.8
|
n.m.
|
60
|
%
|
||||||||||
Corporate
operating expenses
|
(5.1
|
)
|
(5.5
|
)
|
(5.2
|
)
|
8
|
%
|
(5
|
%)
|
||||||
Total
operating income
|
$
|
15.4
|
$
|
19.1
|
$
|
20.3
|
24
|
%
|
6
|
%
|
||||||
Operating
income margin:
|
||||||||||||||||
Security
Products
|
15
|
%
|
17
|
%
|
18
|
%
|
||||||||||
Furniture
Components
|
8
|
%
|
10
|
%
|
11
|
%
|
||||||||||
Marine
Components
|
-
|
12
|
%
|
5
|
%
|
|||||||||||
Total
operating income margin
|
8
|
%
|
10
|
%
|
11
|
%
|
Payments
due by period
|
|||||||||||||
Total
|
Less
than
1
year
|
1 - 3
years
|
4 - 5
years
|
||||||||||
(In
thousands)
|
|||||||||||||
Long-term
debt
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
|||||
Operating
leases
|
727
|
611
|
114
|
2
|
|||||||||
Purchase
obligations
Income
taxes
|
19,004
972
|
19,004
972
|
-
-
|
-
-
|
|||||||||
Fixed
asset acquisitions
|
615
|
615
|
-
|
-
|
|||||||||
Total
contractual cash obligations
|
$
|
21,318
|
$
|
21,202
|
$
|
114
|
$
|
2
|
· |
Pertain
to the maintenance of records that in reasonable detail accurately
and
fairly reflect the transactions and dispositions of our
assets.
|
· |
Provide
reasonable assurance that transactions are recorded as necessary
to permit
preparation of financial statements in accordance with GAAP, and
that
receipts and expenditures are being made only in accordance with
authorizations of our management and directors, and
|
· |
Provide
reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use or disposition of our assets that could
have
a material effect on our consolidated financial
statements.
|
3.1
|
Restated
Certificate of Incorporation of Registrant - incorporated by reference
to
Exhibit 3.1 of the Registrant's Registration Statement on Form S-1
(File
No. 333-42643).
|
3.2
|
Amended
and Restated Bylaws of Registrant, adopted by the Board of Directors
August 31, 2002 - incorporated by reference to Exhibit 3.2 of the
Registrant’s Annual Report on Form 10-K for the year ended December 31,
2002.
|
10.1
|
Share
Purchase Agreement with Subordinated Loan schedule between the Registrant
and Anchor Holding B.V. dated January 24, 2005. All related schedules
and
annexes will be provided to the SEC upon request. Incorporated by
reference to Exhibit 10.1 of the Registrant’s Annual Report on Form 10-K
for the year ended December 31, 2004.
|
10.2
|
Intercorporate
Services
Agreement between the Registrant and Contran Corporation effective
as of
January 1, 2004 - incorporated by reference to Exhibit 10.2 of the
Registrant’s Annual Report on Form 10-K for the year ended December 31,
2003.
|
10.3*
|
CompX
International Inc. 1997 Long-Term Incentive Plan - incorporated by
reference to Exhibit 10.2 of the Registrant's Registration Statement
on
Form S-1 (File No. 333-42643).
|
10.4*
|
CompX
International Inc. Variable Compensation Plan effective as of January
1,
1999 - incorporated by reference to Exhibit 10.4 of the Registrant's
Annual Report on Form 10-K for the year ended December 31,
1998.
|
10.6
|
Tax
Sharing Agreement between the Registrant, NL Industries, Inc. and
Contran
Corporation dated as of October 5, 2004. Incorporated
by reference to Exhibit 10.6 of the Registrant’s Annual Report on Form
10-K for the year ended December 31, 2004.
|
10.11
|
Agreement
Regarding Shared Insurance between the Registrant, Contran Corporation,
Keystone Consolidated Industries, Inc., Kronos Worldwide, Inc., NL
Industries, Inc., Titanium Metals Corporation, and Valhi, Inc. dated
October 30, 2003 - incorporated by reference to Exhibit 10.12 of
the
Registrant’s Annual Report on Form 10-K for the year ended December 31,
2003.
|
10.12
|
$50,000,000
Credit Agreement between the Registrant and Wachovia Bank, National
Association, as Agent and various lending institutions dated December
23,
2005. Certain exhibits, annexes and similar attachments to this Exhibit
10.12 have not been filed; upon request, the Registrant will furnish
supplementally to the SEC a copy of any omitted exhibit, annex, or
attachment.
|
21.1
|
Subsidiaries
of the Registrant.
|
23.1
|
Consent
of PricewaterhouseCoopers LLP.
|
31.1
|
Certification
|
31.2
|
Certification
|
32.1
|
Certification
|
32.2
|
Certification
|
*
Management contract, compensatory plan or
agreement.
|
Signature
|
Title
|
Date
|
||
/s/
Glenn R. Simmons
|
Chairman
of the Board
|
March
1, 2007
|
||
Glenn R. Simmons | ||||
/s/
David A. Bowers
|
Vice
Chairman of the Board,
President and Chief Executive Officer (Principal Executive
Officer)
|
March
1, 2007
|
||
David A. Bowers | ||||
/s/
Darryl R. Halbert
|
Vice
President, Chief
Financial Officer and
Controller
(Principal
Financial and Accounting Officer)
|
March
1, 2007
|
||
Darryl R. Halbert | ||||
/s/
Paul M. Bass, Jr.
|
Director
|
March
1, 2007
|
||
Paul M. Bass, Jr. | ||||
/s/
Norman S. Edelcup
|
Director
|
March
1, 2007
|
||
Norman S. Edelcup | ||||
/s/
Edward J. Hardin
|
Director
|
March
1, 2007
|
||
Edward J. Hardin | ||||
/s/
Ann Manix
|
Director
|
March
1, 2007
|
||
Ann Manix | ||||
/s/
Steven L. Watson
|
Director
|
March
1, 2007
|
||
Steven
L. Watson
|
||||
Financial
Statements
|
Page
|
Report
of Independent Registered Public Accounting Firm
|
F-2
|
Consolidated
Balance Sheets - December 31, 2005 and 2006
|
F-3
|
Consolidated
Statements of Operations -
|
|
Years
ended
December 31, 2004, 2005 and 2006
|
F-5
|
Consolidated
Statements of Comprehensive Income -
|
|
Years
ended
December 31, 2004, 2005 and 2006
|
F-6
|
Consolidated
Statements of Cash Flows -
|
|
Years
ended
December 31, 2004, 2005 and 2006
|
F-7
|
Consolidated
Statements of Stockholders' Equity -
|
|
Years
ended
December 31, 2004, 2005 and 2006
|
F-9
|
Notes
to Consolidated Financial Statements
|
F-10
|
ASSETS
|
2005
|
2006
|
|||||
Current
assets:
|
|||||||
Cash
and cash equivalents
|
$
|
30,592
|
$
|
29,688
|
|||
Accounts
receivable, less allowance for
doubtful
accounts of $312 and $682
|
20,609
|
19,986
|
|||||
Receivables
from affiliates
|
620
|
259
|
|||||
Refundable
income taxes
|
401
|
42
|
|||||
Inventories
|
22,538
|
21,733
|
|||||
Prepaid
expenses and other current assets
|
1,496
|
1,130
|
|||||
Deferred
income taxes
|
1,903
|
2,050
|
|||||
Current
portion of note receivable
|
2,612
|
1,306
|
|||||
Total
current assets
|
80,771
|
76,194
|
|||||
Other
assets:
|
|||||||
Goodwill
|
35,678
|
40,759
|
|||||
Other
intangible assets
|
2,317
|
3,174
|
|||||
Note
receivable
|
1,567
|
1,567
|
|||||
Other
|
230
|
644
|
|||||
Total
other assets
|
39,792
|
46,144
|
|||||
Property
and equipment:
|
|||||||
Land
|
7,868
|
8,826
|
|||||
Buildings
|
31,165
|
35,284
|
|||||
Equipment
|
107,333
|
114,207
|
|||||
Construction
in progress
|
2,015
|
2,559
|
|||||
148,381
|
160,876
|
||||||
Less
accumulated depreciation
|
80,392
|
91,188
|
|||||
Net
property and equipment
|
67,989
|
69,688
|
|||||
$
|
188,552
|
$
|
192,026
|
||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
2005
|
2006
|
|||||
Current
liabilities:
|
|||||||
Accounts
payable and accrued liabilities
|
$
|
19,238
|
$
|
16,842
|
|||
Income
taxes payable to affiliates
|
771
|
136
|
|||||
Income
taxes
|
327
|
836
|
|||||
Total
current liabilities
|
20,336
|
17,814
|
|||||
Noncurrent
liabilities:
|
|||||||
Deferred
income taxes
|
16,692
|
20,522
|
|||||
Long-term
debt
|
1,425
|
-
|
|||||
Total
noncurrent liabilities
|
18,117
|
20,522
|
|||||
Stockholders'
equity:
|
|||||||
Preferred
stock, $.01 par value; 1,000 shares
authorized,
none issued
|
-
|
-
|
|||||
Class
A common stock, $.01 par value;
20,000,000
shares authorized; 5,234,280 and
5,266,980
shares issued and outstanding
|
52
|
53
|
|||||
Class
B common stock, $.01 par value;
10,000,000
shares authorized, issued and outstanding
|
100
|
100
|
|||||
Additional
paid-in capital
|
109,556
|
110,106
|
|||||
Retained
earnings
|
31,320
|
35,353
|
|||||
Accumulated
other comprehensive income
|
9,071
|
8,078
|
|||||
Total
stockholders' equity
|
150,099
|
153,690
|
|||||
$
|
188,552
|
$
|
192,026
|
||||
2004
|
2005
|
2006
|
||||||||
Net
sales
|
$
|
182,631
|
$
|
186,349
|
$
|
190,123
|
||||
Cost
of goods sold
|
142,807
|
142,594
|
143,649
|
|||||||
Gross
margin
|
39,824
|
43,755
|
46,474
|
|||||||
Selling,
general and administrative expense
|
24,132
|
24,155
|
26,060
|
|||||||
Other
operating income (expense):
|
||||||||||
Currency
transaction gains (losses), net
|
185
|
(71
|
)
|
145
|
||||||
Disposition
of property and equipment
|
(479
|
)
|
(467
|
)
|
(258
|
)
|
||||
Operating
income
|
15,398
|
19,062
|
20,301
|
|||||||
Other
general corporate income, net
|
2,419
|
724
|
1,270
|
|||||||
Interest
expense
|
(494
|
)
|
(336
|
)
|
(219
|
)
|
||||
Income
from continuing operations
before
income taxes
|
17,323
|
19,450
|
21,352
|
|||||||
Provision
for income taxes
|
7,840
|
18,568
|
9,696
|
|||||||
Income
from continuing operations
|
9,483
|
882
|
11,656
|
|||||||
Discontinued
operations, net of tax
|
(12,497
|
)
|
(477
|
)
|
-
|
|||||
Net
income (loss)
|
(3,014
|
)
|
405
|
11,656
|
||||||
Basic
and diluted earnings (loss) per
common
share:
|
||||||||||
Continuing
operations
|
$
|
.63
|
$
|
.06
|
$
|
.76
|
||||
Discontinued
operations
|
$
|
(.83
|
)
|
$
|
(.03
|
)
|
$
|
-
|
||
$
|
(.20
|
)
|
$
|
.03
|
$
|
.76
|
||||
Cash
dividends per share
|
$
|
.125
|
$
|
.50
|
$
|
.50
|
||||
Shares
used in the calculation of earnings
per
share amounts for:
|
||||||||||
Basic
earnings per share
|
15,148
|
15,212
|
15,244
|
|||||||
Dilutive
impact of stock options
|
18
|
19
|
13
|
|||||||
Diluted
earnings per share
|
15,166
|
15,231
|
15,257
|
|||||||
2004
|
2005
|
2006
|
||||||||
Net
income (loss)
|
$
|
(3,014
|
)
|
$
|
405
|
$
|
11,656
|
|||
Other
comprehensive income, net of tax:
|
||||||||||
Currency
translation adjustment:
Arising
during the period
|
5,036
|
544
|
(883
|
)
|
||||||
Disposal
of business unit
|
-
|
739
|
-
|
|||||||
5,036
|
1,283
|
(883
|
)
|
|||||||
Impact
from cash flow hedges, net
|
75
|
35
|
(110
|
)
|
||||||
Total
other comprehensive income, net
|
5,111
|
1,318
|
(993
|
)
|
||||||
Comprehensive
income
|
$
|
2,097
|
$
|
1,723
|
$
|
10,663
|
||||
2004
|
2005
|
2006
|
||||||||
Cash
flows from operating activities:
|
||||||||||
Net
income (loss)
|
$
|
(3,014
|
)
|
$
|
405
|
$
|
11,656
|
|||
Depreciation
and amortization
|
14,200
|
10,924
|
11,797
|
|||||||
Goodwill
impairment
|
14,400
|
864
|
-
|
|||||||
Deferred
income taxes:
|
||||||||||
Continuing
operations
|
(394
|
)
|
10,120
|
1,536
|
||||||
Discontinued
operations
|
-
|
(187
|
)
|
-
|
||||||
Other,
net
|
861
|
985
|
1,375
|
|||||||
Change
in assets and liabilities:
|
||||||||||
Accounts
receivable
|
2,953
|
(133
|
)
|
1,035
|
||||||
Inventories
|
(1,300
|
)
|
(936
|
)
|
2,258
|
|||||
Accounts
payable and accrued liabilities
|
(2,742
|
)
|
(520
|
)
|
(2,891
|
)
|
||||
Accounts
with affiliates
|
(1,247
|
)
|
1,562
|
(274
|
)
|
|||||
Income
taxes
|
5,383
|
(2,770
|
)
|
890
|
||||||
Other,
net
|
1,113
|
(276
|
)
|
63
|
||||||
Net
cash provided by operating activities
|
30,213
|
20,038
|
27,445
|
|||||||
Cash
flows from investing activities:
|
||||||||||
Capital
expenditures
|
(5,348
|
)
|
(10,490
|
)
|
(12,044
|
)
|
||||
Acquisition,
net of cash acquired
|
-
|
(7,342
|
)
|
(9,832
|
)
|
|||||
Cash
of disposed business unit
|
-
|
(4,006
|
)
|
-
|
||||||
Proceeds
from disposal of assets held for sale
|
-
|
18,094
|
-
|
|||||||
Proceeds
from sale of fixed assets
|
2,138
|
27
|
1,316
|
|||||||
Cash
collected on note receivable
|
-
|
-
|
1,306
|
|||||||
Net
cash used by investing activities
|
(3,210
|
)
|
(3,717
|
)
|
(19,254
|
)
|
||||
Cash
flows from financing activities:
|
||||||||||
Long-term
debt:
|
||||||||||
Borrowings
|
2,257
|
18
|
-
|
|||||||
Principal
payments
|
(28,097
|
)
|
(93
|
)
|
(1,563
|
)
|
||||
Issuance
of common stock
|
617
|
639
|
347
|
|||||||
Dividends
paid
|
(1,896
|
)
|
(7,608
|
)
|
(7,623
|
)
|
||||
Tax
benefit from exercise of stock options
|
-
|
-
|
111
|
|||||||
Other,
net
|
(28
|
)
|
(114
|
)
|
(110
|
)
|
||||
Net
cash used by financing activities
|
(27,147
|
)
|
(7,158
|
)
|
(8,838
|
)
|
||||
Net
increase (decrease)
|
$
|
(144
|
)
|
$
|
9,163
|
$
|
(647
|
)
|
2004
|
2005
|
2006
|
||||||||
Cash
and cash equivalents:
|
||||||||||
Net
increase (decrease) from:
|
||||||||||
Operating,
investing and financing activities
|
$
|
(144
|
)
|
$
|
9,163
|
$
|
(647
|
)
|
||
Currency
translation
|
(545
|
)
|
392
|
(257
|
)
|
|||||
Balance
at beginning of year
|
21,726
|
21,037
|
30,592
|
|||||||
Balance
at end of year
|
$
|
21,037
|
$
|
30,592
|
$
|
29,688
|
||||
Cash
and cash equivalents at end of period
relate
to:
|
||||||||||
Continuing operations
|
$
|
16,803
|
$
|
30,592
|
$
|
29,688
|
||||
Assets held for sale
|
4,234
|
-
|
-
|
|||||||
$
|
21,037
|
$
|
30,592
|
$
|
29,688
|
|||||
Supplemental
disclosures:
|
||||||||||
Cash
paid for:
|
||||||||||
Interest
|
$
|
516
|
$
|
259
|
$
|
139
|
||||
Income
taxes
|
4,281
|
9,390
|
7,418
|
|||||||
Noncash
investing activities:
Note
receivable received upon disposal of business unit
|
$
|
-
|
$
|
4,179
|
$
|
-
|
||||
Accumulated
other
comprehensive
income
|
|||||||||||||||||||||||||
Common
stock
|
Additional
paid-in
|
Retained
|
Currency
|
Hedging
|
Treasury
|
Total
stockholders'
|
|||||||||||||||||||
Class
A
|
Class
B
|
Capital
|
earnings
|
translation
|
derivatives
|
stock
|
equity
|
||||||||||||||||||
Balance
at December 31, 2003
|
$
|
62
|
$
|
100
|
$
|
119,437
|
$
|
43,433
|
$
|
2,642
|
$
|
-
|
$
|
(11,315
|
)
|
$
|
154,359
|
||||||||
Net
loss
|
-
|
-
|
-
|
(3,014
|
)
|
-
|
-
|
-
|
(3,014
|
)
|
|||||||||||||||
Other
comprehensive income
|
-
|
-
|
-
|
-
|
5,036
|
75
|
-
|
5,111
|
|||||||||||||||||
Cash
dividends
|
-
|
-
|
-
|
(1,896
|
)
|
-
|
-
|
-
|
(1,896
|
)
|
|||||||||||||||
Issuance
of common stock
|
1
|
-
|
695
|
-
|
-
|
-
|
-
|
696
|
|||||||||||||||||
Retirement
of treasury stock
|
(11
|
)
|
-
|
(11,304
|
)
|
-
|
-
|
-
|
11,315
|
-
|
|||||||||||||||
Balance
at December 31, 2004
|
52
|
100
|
108,828
|
38,523
|
7,678
|
75
|
-
|
155,256
|
|||||||||||||||||
Net
income
|
-
|
-
|
-
|
405
|
-
|
-
|
-
|
405
|
|||||||||||||||||
Other
comprehensive income
|
-
|
-
|
-
|
-
|
1,283
|
35
|
-
|
1,318
|
|||||||||||||||||
Cash
dividends
|
-
|
-
|
-
|
(7,608
|
)
|
-
|
-
|
-
|
(7,608
|
)
|
|||||||||||||||
Issuance
of common stock
|
-
|
-
|
728
|
-
|
-
|
-
|
-
|
728
|
|||||||||||||||||
Balance
at December 31, 2005
|
$
|
52
|
$
|
100
|
$
|
109,556
|
$
|
31,320
|
$
|
8,961
|
$
|
110
|
$
|
-
|
$
|
150,099
|
|||||||||
Net
income
|
-
|
-
|
-
|
11,656
|
-
|
-
|
-
|
11,656
|
|||||||||||||||||
Other
comprehensive income
|
-
|
-
|
-
|
-
|
(883
|
)
|
(110
|
)
|
-
|
(993
|
)
|
||||||||||||||
Cash
dividends
|
-
|
-
|
-
|
(7,623
|
)
|
-
|
-
|
-
|
(7,623
|
)
|
|||||||||||||||
Issuance
of common stock
|
1
|
-
|
550
|
-
|
-
|
-
|
-
|
551
|
|||||||||||||||||
Balance
at December 31, 2006
|
$
|
53
|
$
|
100
|
$
|
110,106
|
$
|
35,353
|
$
|
8,078
|
$
|
-
|
$
|
-
|
$
|
153,690
|
|||||||||
Years
ended December 31,
|
||||||||||
2004
|
2005
|
2006
|
||||||||
(In
thousands)
|
||||||||||
Net
sales:
|
||||||||||
Security
Products
|
$
|
75,872
|
$
|
76,667
|
$
|
81,684
|
||||
Furniture
Components
|
106,759
|
105,524
|
92,983
|
|||||||
Marine
Components
|
-
|
4,158
|
15,456
|
|||||||
Total
net sales
|
$
|
182,631
|
$
|
186,349
|
$
|
190,123
|
||||
Operating
income:
|
||||||||||
Security
Products
|
$
|
11,604
|
$
|
13,141
|
$
|
14,620
|
||||
Furniture
Components
|
8,885
|
10,985
|
10,036
|
|||||||
Marine
Components
|
-
|
427
|
822
|
|||||||
Corporate
operating expenses
|
(5,091
|
)
|
(5,491
|
)
|
(5,177
|
)
|
||||
Total
operating income
|
15,398
|
19,062
|
20,301
|
|||||||
Other
non-operating income, net
|
2,419
|
724
|
1,270
|
|||||||
Interest
expense
|
(494
|
)
|
(336
|
)
|
(219
|
)
|
||||
Income
from continuing operations before income taxes
|
$
|
17,323
|
$
|
19,450
|
$
|
21,352
|
||||
Depreciation
and amortization:
|
||||||||||
Security
Products
|
$
|
4,191
|
$
|
3,876
|
$
|
4,309
|
||||
Furniture
Components
|
7,477
|
6,798
|
6,798
|
|||||||
Marine
Components
|
-
|
207
|
666
|
|||||||
Corporate
Depreciation
|
111
|
43
|
24
|
|||||||
Thomas
Regout**
|
2,421
|
-
|
-
|
|||||||
$
|
14,200
|
$
|
10,924
|
$
|
11,797
|
|||||
Capital
expenditures:
|
||||||||||
Security
Products
|
$
|
2,432
|
$
|
4,909
|
$
|
5,335
|
||||
Furniture
Components
|
2,521
|
5,549
|
1,504
|
|||||||
Marine
Components
|
-
|
32
|
5,205
|
|||||||
Thomas
Regout**
|
395
|
-
|
-
|
|||||||
$
|
5,348
|
$
|
10,490
|
$
|
12,044
|
|||||
Goodwill:
|
||||||||||
Security
Products
|
$
|
23,742
|
$
|
23,742
|
$
|
23,742
|
||||
Furniture
Components
|
5,270
|
6,594
|
7,135
|
|||||||
Marine
Components
|
-
|
5,342
|
9,882
|
|||||||
$
|
29,012
|
$
|
35,678
|
$
|
40,759
|
Years
ended December 31,
|
||||||||||
2004
|
2005
|
2006
|
||||||||
(In
thousands)
|
||||||||||
Net
sales:
|
||||||||||
Point
of origin:
|
||||||||||
United
States
|
$
|
99,807
|
$
|
113,510
|
$
|
127,620
|
||||
Canada
|
74,157
|
63,918
|
52,395
|
|||||||
Taiwan
|
16,034
|
14,213
|
15,910
|
|||||||
Eliminations
|
(7,367
|
)
|
(5,292
|
)
|
(5,802
|
)
|
||||
$
|
182,631
|
$
|
186,349
|
$
|
190,123
|
|||||
Point
of destination:
|
||||||||||
United
States
|
$
|
138,136
|
$
|
149,487
|
$
|
153,942
|
||||
Canada
|
33,205
|
25,015
|
19,985
|
|||||||
Other
|
11,290
|
11,847
|
16,196
|
|||||||
$
|
182,631
|
$
|
186,349
|
$
|
190,123
|
|||||
|
December
31,
|
|||||||||
2004
|
|
|
2005
|
|
|
2006
|
||||
(In
thousands)
|
||||||||||
Total
assets:
|
||||||||||
Security
Products
|
$
|
72,794
|
$
|
76,875
|
$
|
74,887
|
||||
Furniture
Components
|
77,717
|
77,226
|
77,781
|
|||||||
Marine
Components
|
-
|
10,614
|
26,607
|
|||||||
Thomas
Regout**
|
28,921
|
-
|
-
|
|||||||
Corporate
and eliminations
|
6,847
|
23,837
|
12,751
|
|||||||
$
|
186,279
|
$
|
188,552
|
$
|
192,026
|
|||||
Net
property and equipment:
|
||||||||||
United
States
|
$
|
41,328
|
$
|
42,751
|
$
|
47,865
|
||||
Canada
|
19,114
|
16,978
|
14,144
|
|||||||
Taiwan
|
5,680
|
8,260
|
7,679
|
|||||||
$
|
66,122
|
$
|
67,989
|
$
|
69,688
|
|||||
**
Denotes discontinued segment. See Note 10.
|
December
31,
|
|||||||
2005
|
2006
|
||||||
(In
thousands)
|
|||||||
Raw
materials
|
$
|
6,801
|
$
|
5,892
|
|||
Work
in process
|
9,116
|
8,744
|
|||||
Finished
products
|
6,621
|
7,097
|
|||||
$
|
22,538
|
$
|
21,733
|
Security
Products
|
Furniture
Components
|
Marine
Components
|
Total
|
||||||||||
(In
millions)
|
|||||||||||||
Balance
at December 31, 2003
|
$
|
23.7
|
$
|
5.0
|
$
|
-
|
$
|
28.7
|
|||||
Changes
in currency exchange rates
|
-
|
.3
|
-
|
.3
|
|||||||||
Balance
at December 31, 2004
|
23.7
|
5.3
|
-
|
29.0
|
|||||||||
Goodwill
acquired during the year
|
-
|
1.5
|
5.4
|
6.9
|
|||||||||
Changes
in currency exchange rates
|
-
|
(.2
|
)
|
-
|
(.2
|
)
|
|||||||
Balance
at December 31, 2005
|
23.7
|
6.6
|
5.4
|
35.7
|
|||||||||
Goodwill
acquired during the year
|
-
|
.4
|
4.5
|
4.9
|
|||||||||
Changes
in currency exchange rates
|
-
|
.1
|
-
|
.1
|
|||||||||
Balance
at December 31, 2006
|
$
|
23.7
|
$
|
7.1
|
$
|
9.9
|
$
|
40.7
|
|||||
December
31,
|
|||||||
2005
|
2006
|
||||||
(In
thousands)
|
|||||||
Accounts
payable
|
$
|
7,022
|
$
|
6,151
|
|||
Accrued
liabilities:
|
|||||||
Employee
benefits
|
8,179
|
7,549
|
|||||
Customer
tooling
|
1,319
|
617
|
|||||
Professional
|
720
|
334
|
|||||
Insurance
|
516
|
621
|
|||||
Taxes
other than on income
|
299
|
302
|
|||||
Other
|
1,183
|
1,268
|
|||||
$
|
19,238
|
$
|
16,842
|
Years
ended December 31,
|
||||||||||
2004
|
2005
|
2006
|
||||||||
(In
thousands)
|
||||||||||
Components
of pre-tax income from continuing operations:
|
||||||||||
United
States
|
$
|
8,148
|
$
|
10,564
|
$
|
14,022
|
||||
Non-U.S.
|
9,175
|
8,886
|
7,330
|
|||||||
$
|
17,323
|
$
|
19,450
|
$
|
21,352
|
|||||
Provision
for income taxes:
|
||||||||||
Currently
payable:
|
||||||||||
U.S.
federal and state
|
$
|
4,016
|
$
|
4,920
|
$
|
5,651
|
||||
Foreign
|
4,732
|
3,528
|
2,509
|
|||||||
8,748
|
8,448
|
8,160
|
||||||||
Deferred
income taxes (benefit):
|
||||||||||
U.S.
federal and state
|
(273
|
)
|
10,215
|
2,074
|
||||||
Foreign
|
(635
|
)
|
(95
|
)
|
(538
|
)
|
||||
(908
|
)
|
10,120
|
1,536
|
|||||||
$
|
7,840
|
$
|
18,568
|
$
|
9,696
|
|||||
Expected
tax expense, at the U.S. federal statutory income tax rate of
35%
|
$
|
6,063
|
$
|
6,808
|
$
|
7,473
|
||||
Non-U.S.
tax rates
|
(297
|
)
|
(253
|
)
|
(298
|
)
|
||||
Incremental
U.S. tax on earnings of foreign subsidiaries
|
3,206
|
12,006
|
2,138
|
|||||||
State
income taxes and other, net
|
(377
|
)
|
224
|
535
|
||||||
Canadian
tax rate change
|
-
|
-
|
(142
|
)
|
||||||
Tax
credits
|
-
|
-
|
(432
|
)
|
||||||
Tax
contingency reserve adjustments, net
|
(755
|
)
|
(217
|
)
|
422
|
|||||
$
|
7,840
|
$
|
18,568
|
$
|
9,696
|
|||||
Comprehensive
provision (benefit) for income tax benefit allocable
to:
|
||||||||||
Income
from continuing operations
|
$
|
7,840
|
$
|
18,568
|
$
|
9,696
|
||||
Discontinued
operations
|
(410
|
)
|
(387
|
)
|
-
|
|||||
Other
comprehensive income - currency
translation
|
380
|
(223
|
)
|
1,210
|
||||||
$
|
7,810
|
$
|
17,958
|
$
|
10,906
|
December
31,
|
|||||||
2005
|
2006
|
||||||
(In
thousands)
|
|||||||
Tax
effect of temporary differences related to:
|
|||||||
Inventories
|
$
|
769
|
$
|
785
|
|||
Tax
on unremitted earnings of non-U.S. subsidiaries
|
(10,472
|
)
|
(12,490
|
)
|
|||
Property
and equipment
|
(5,924
|
)
|
(5,556
|
)
|
|||
Accrued
liabilities and other deductible differences
|
2,444
|
1,364
|
|||||
Tax
loss and credit carryforwards
|
4,690
|
4,335
|
|||||
Other
taxable differences
|
(2,061
|
)
|
(3,009
|
)
|
|||
Valuation
allowance
|
(4,235
|
)
|
(3,901
|
)
|
|||
$
|
(14,789
|
)
|
$
|
(18,472
|
)
|
||
Net
current deferred tax assets
|
1,903
|
2,050
|
|||||
Net
noncurrent deferred tax liabilities
|
(16,692
|
)
|
(20,522
|
)
|
|||
$
|
(14,789
|
)
|
$
|
(18,472
|
)
|
||
Shares
of common
stock
|
|||||||||||||
Class
A
|
Class
B
|
||||||||||||
Issued
|
Treasury
|
Outstanding
|
Issued
and
outstanding
|
||||||||||
Balance
at December 31, 2003
|
6,228,680
|
(1,103,900
|
)
|
5,124,780
|
10,000,000
|
||||||||
Issued
|
54,100
|
-
|
54,100
|
-
|
|||||||||
Cancelled
|
(1,103,900
|
)
|
1,103,900
|
-
|
-
|
||||||||
Balance
at December 31, 2004
|
5,178,880
|
-
|
5,178,880
|
10,000,000
|
|||||||||
Issued
|
55,400
|
-
|
55,400
|
-
|
|||||||||
Balance
at December 31, 2005
|
5,234,280
|
-
|
5,234,280
|
10,000,000
|
|||||||||
Issued
|
32,700
|
-
|
32,700
|
-
|
|||||||||
Balance
at December 31, 2006
|
5,266,980
|
-
|
5,266,980
|
10,000,000
|
Shares
|
Exercise
price
per
share
|
Amount
payable
upon
exercise
|
Weighted
average
exercise
price
|
||||||||||
Outstanding at December 31, 2003
|
619
|
$
|
10.00
-$20.00
|
$
|
10,684
|
$
|
17.26
|
||||||
Exercised
|
(48
|
)
|
10.00
- 13.00
|
(616
|
)
|
12.83
|
|||||||
Canceled
|
(9
|
)
|
12.50
- 13.00
|
(116
|
)
|
12.89
|
|||||||
Outstanding at December 31, 2004
|
562
|
10.00
- 20.00
|
9,952
|
17.71
|
|||||||||
Exercised
|
(50
|
)
|
11.59
- 14.30
|
(638
|
)
|
12.76
|
|||||||
Canceled
|
(42
|
)
|
13.00
- 20.00
|
(677
|
)
|
16.12
|
|||||||
Outstanding at December 31, 2005
|
470
|
10.00
- 20.00
|
8,637
|
18.38
|
|||||||||
Exercised
|
(27
|
)
|
13.00
|
(347
|
)
|
13.00
|
|||||||
Canceled
|
(6
|
)
|
20.00
|
(120
|
)
|
20.00
|
|||||||
Outstanding at December 31, 2006
|
437
|
$
|
10.00
- 20.00
|
$
|
8,170
|
$
|
18.70
|
||||||
Years
ended December 31,
|
|||||||
2004
|
2005
|
||||||
Net sales
|
$
|
41,694
|
$
|
-
|
|||
Operating loss
|
$
|
(10,609
|
)
|
$
|
(864
|
)
|
|
Other expense, net
|
(797
|
)
|
-
|
||||
Interest expense
|
(1,501
|
)
|
-
|
||||
Income tax benefit
|
410
|
387
|
|||||
Net loss
|
$
|
(12,497
|
)
|
$
|
(477
|
)
|
|
Years
ended December 31,
|
||||||||||
2004
|
2005
|
2006
|
||||||||
(In
thousands)
|
||||||||||
Interest
income
|
$
|
1,612
|
$
|
613
|
$
|
1,278
|
||||
Other
income (expense), net
|
807
|
111
|
(8
|
)
|
||||||
$
|
2,419
|
$
|
724
|
$
|
1,270
|
|||||
Quarter
ended
|
|||||||||||||
March
31
|
June
30
|
Sept.
30
|
Dec.
31
|
||||||||||
(In
millions, except per share amounts)
|
|||||||||||||
2005:
|
|||||||||||||
Net
sales
|
$
|
46.8
|
$
|
45.7
|
$
|
47.1
|
$
|
46.7
|
|||||
Gross
profit
|
10.3
|
10.5
|
11.0
|
12.0
|
|||||||||
Operating
income
|
4.1
|
4.7
|
4.8
|
5.5
|
|||||||||
Income
(loss) from continuing operations
|
$
|
2.2
|
$
|
2.4
|
$
|
(6.1
|
)
|
$
|
2.4
|
||||
Discontinued
operations
|
(.5
|
)
|
-
|
-
|
-
|
||||||||
Net
income (loss)
|
$
|
1.7
|
$
|
2.4
|
$
|
(6.1
|
)
|
$
|
2.4
|
||||
Basic
and diluted earnings (loss) per share:
|
|||||||||||||
Continuing
operations
|
$
|
.14
|
$
|
.16
|
$
|
(.40
|
)
|
$
|
.16
|
||||
Discontinued
operations
|
(.03
|
)
|
-
|
-
|
-
|
||||||||
$
|
.11
|
$
|
.16
|
$
|
(.40
|
)
|
$
|
.16
|
2006:
|
|||||||||||||
Net
sales
|
$
|
47.0
|
$
|
50.1
|
$
|
48.8
|
$
|
44.2
|
|||||
Gross
profit
|
11.6
|
12.3
|
12.9
|
9.7
|
|||||||||
Operating
income
|
4.8
|
5.8
|
6.2
|
3.5
|
|||||||||
Income
(loss) from continuing operations
|
$
|
2.5
|
$
|
3.8
|
$
|
3.8
|
$
|
1.6
|
|||||
Discontinued
operations
|
-
|
(.5
|
)
|
-
|
.5
|
||||||||
Net
income
|
$
|
2.5
|
$
|
3.3
|
$
|
3.8
|
$
|
2.1
|
|||||
Basic
and diluted earnings (loss) per share:
|
|||||||||||||
Continuing
operations
|
$
|
.16
|
$
|
.25
|
$
|
.25
|
$
|
.10
|
|||||
Discontinued
operations
|
-
|
(.03
|
)
|
-
|
.03
|
||||||||
$
|
.16
|
$
|
.22
|
$
|
.25
|
$
|
.13
|