STRATTEC SECURITY CORPORATION Reports Fiscal 2013 First Quarter Results
Net sales for the Company's first quarter ended
Overall sales to STRATTEC's largest customers increased in the current year quarter compared to the prior year quarter levels. Sales to
The gross profit margin was 19.4 percent in the current year quarter compared to 17.3 percent in the prior year quarter. The higher gross profit margin in the current year quarter was attributed to higher customer vehicle production volumes which increased overhead absorption of STRATTEC's manufacturing costs, a favorable product content sales mix including new products, the Company's ongoing cost reduction initiatives and a favorable
Operating expenses were
Other expense significantly declined to
STRATTEC designs, develops, manufactures and markets automotive Access Control Products, including mechanical locks and keys, electronically enhanced locks and keys, steering column and instrument panel ignition lock housings, latches, power sliding side door systems, power lift gate systems, power deck lid systems, door handles and related products. These products are provided to customers in
The
Certain statements contained in this release contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of forward-looking words or phrases such as "anticipate," "believe," "could," "expect," "intend," "may," "planned," "potential," "should," "will," and "would." Such forward-looking statements in this release are inherently subject to many uncertainties in the Company's operations and business environment. These uncertainties include general economic conditions, in particular, relating to the automotive industry, consumer demand for the Company's and its customers' products, competitive and technological developments, customer purchasing actions, foreign currency fluctuations, and costs of operations (including fluctuations in the cost of raw materials). Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are only made as of the date of this press release and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances occurring after the date of this release. In addition, such uncertainties and other operational matters are discussed further in the Company's quarterly and annual filings with the
| STRATTEC SECURITY CORPORATION | ||
| Results of Operations | ||
| (In Thousands except per share amounts) | ||
| (Unaudited) | ||
| First Quarter Ended | ||
| September 30, 2012 | October 2, 2011 | |
| Net Sales | $70,807 | $66,377 |
| Cost of Goods Sold | 57,094 | 54,873 |
| Gross Profit | 13,713 | 11,504 |
| Engineering, Selling & Administrative Expenses | 9,120 | 8,208 |
| Income from Operations | 4,593 | 3,296 |
| Interest Income | 3 | 17 |
| Equity Loss of VAST LLC Joint Venture | (12) | (120) |
| Interest Expense | (5) | (31) |
| Other Expense, Net | (18) | (868) |
| 4,561 | 2,294 | |
| Provision for Income Taxes | 1,246 | 321 |
| Net Income | 3,315 | 1,973 |
| Net Income Attributable to Non-Controlling Interest | (645) | (691) |
| Net Income Attributable to STRATTEC SECURITY CORPORATION | $2,670 | $1,282 |
| Earnings Per Share: | ||
| Basic | $0.79 | $0.39 |
| Diluted | $0.78 | $0.39 |
| Average Basic Shares Outstanding | 3,309 | 3,294 |
| Average Diluted Shares Outstanding | 3,340 | 3,326 |
| Other | ||
| Capital Expenditures | $2,711 | $3,492 |
| Depreciation & Amortization | $1,758 | $1,652 |
| STRATTEC SECURITY CORPORATION | ||
| Condensed Balance Sheet Data | ||
| (In Thousands) | ||
| September 30, 2012 | July 1, 2012 | |
| (Unaudited) | ||
| ASSETS | ||
| Current Assets: | ||
| Cash and cash equivalents | $16,274 | $17,487 |
| Receivables, net | 45,051 | 44,496 |
| Inventories | 25,482 | 21,236 |
| Other current assets | 17,053 | 18,072 |
| Total Current Assets | 103,860 | 101,291 |
| Deferred Income Taxes | 9,742 | 9,742 |
| Investment in Joint Venture | 8,352 | 8,139 |
| Other Long Term Assets | 511 | 536 |
| Property, Plant and Equipment, Net | 47,614 | 46,330 |
| $170,079 | $166,038 | |
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||
| Current Liabilities: | ||
| Accounts Payable | $26,253 | $24,149 |
| Borrowings Under Line of Credit Facility | 1,500 | -- |
| Other | 30,008 | 32,824 |
| Total Current Liabilities | 57,761 | 56,973 |
| Accrued Pension and Post Retirement Obligations | 22,243 | 21,667 |
| Shareholders' Equity | 254,701 | 252,280 |
| Accumulated Other Comprehensive Loss | (35,050) | (35,757) |
| Less: Treasury Stock | (135,961) | (135,971) |
| Total STRATTEC SECURITY CORPORATION Shareholders' Equity | 83,690 | 80,552 |
| Non-Controlling Interest | 6,385 | 6,846 |
| Total Shareholders' Equity | 90,075 | 87,398 |
| $170,079 | $166,038 | |
| STRATTEC SECURITY CORPORATION | ||
| Condensed Cash Flow Statement Data | ||
| (In Thousands) | ||
| (Unaudited) | ||
| First Quarter Ended | ||
| September 30, 2012 | October 2, 2011 | |
| Cash Flows from Operating Activities: | ||
| Net Income | $3,315 | $1,973 |
| Adjustment to Reconcile Net Income to Net Cash Provided by (Used) in Operating Activities: | ||
| Equity Loss in VAST LLC Joint Venture | 12 | 120 |
| Depreciation and Amortization | 1,758 | 1,652 |
| Foreign Currency Transaction Loss (Gain) | 455 | (1,699) |
| Unrealized (Gain) Loss on Foreign Currency Option Contracts | (311) | 2,305 |
| Stock Based Compensation Expense | 76 | 174 |
| Change in Operating Assets/Liabilities | (3,572) | (4,749) |
| Other, net | (30) | 16 |
| Net Cash Provided by (Used) in Operating Activities | 1,703 | (208) |
| Cash Flows from Investing Activities: | ||
| Investment in VAST LLC Joint Venture | (200) | -- |
| Proceeds from Sale of Property, Plant and Equipment | 30 | -- |
| Additions to Property, Plant and Equipment | (2,711) | (3,492) |
| Net Cash Used in Investing Activities | (2,881) | (3,492) |
| Cash Flow from Financing Activities: | ||
| Borrowings on Line of Credit Facility | 1,500 | -- |
| Dividends Paid to Non-Controlling Interest of Subsidiaries | (1,131) | -- |
| Dividends Paid | (336) | (335) |
| Repayment of Loan to Related Parties | -- | (400) |
| Exercise of Stock Options and Employee Stock Purchases | 19 | 16 |
| Net Cash Provided by (Used) in Financing Activities | 52 | (719) |
| Foreign Currency Impact on Cash | (87) | 357 |
| Net Decrease in Cash & Cash Equivalents | (1,213) | (4,062) |
| Cash and Cash Equivalents: | ||
| Beginning of Period | 17,487 | 17,250 |
| End of Period | $16,274 | $13,188 |
CONTACT:Pat Hansen Senior Vice President and Chief Financial Officer 414-247-3435 www.strattec.com
