What factors influenced CIX's EPS in 2023?

CompX International's EPS for 2023 was $1.84, and several factors contributed to this outcome. Here's a detailed analysis: 1. **Revenue Decline in Security Products**: The most significant factor influencing CIX's EPS in 2023 was the decline in sales of Security Products. This segment experienced a decrease in sales to a government security customer related to a discontinued pilot project. As a result, the company's net sales for the fourth quarter of 2024 decreased by over 11% compared to the same period in 2023. Since Security Products were a key revenue contributor, this decline had a substantial impact on the overall EPS. 2. **Increased Sales in Marine Components**: On a positive note, CompX International saw increased sales in its Marine Components segment, particularly to towboat and government markets. This diversification in product offerings partially offset the declines in Security Products and helped maintain profitability. The improved sales in Marine Components likely contributed to the EPS in 2023, as this segment showed resilience despite the overall market challenges. 3. **Cost Management and Gross Margin**: The company's ability to manage costs and maintain a gross margin in the fourth quarter of 2024 reflected effective management in cost of sales despite lower overall sales figures. This suggests that CIX's EPS in 2023 was supported by efficient cost management, which helped mitigate the impact of declining revenues. In summary, CompX International's EPS in 2023 was influenced by a combination of factors, including the decline in sales of Security Products, the growth in Marine Components sales, and effective cost management. These elements, either directly or indirectly, impacted the company's profitability, resulting in an EPS of $1.84 for the year.