SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
DC 20549
__________________
FORM
8-K
CURRENT
REPORT
PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES
EXCHANGE ACT OF 1934
Date of
Report (Date of earliest event reported): April
12, 2005
|
STRATTEC
SECURITY CORPORATION |
|
(Exact
name of registrant as specified in its
charter) |
|
Wisconsin |
|
(State
or other jurisdiction of incorporation) |
|
0-25150 |
39-1804239 | |
|
(Commission
File Number) |
(I.R.S.
Employer I.D. Number) |
|
3333
West Good Hope Road
Milwaukee,
WI |
53209 | |
|
(Address
of Principal Executive Offices) |
(Zip
Code) |
|
(414)
247-3333 |
|
(Registrant's
telephone number; including area code) |
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (see General
Instruction A.2. below):
o Written
communications pursuant to Rule 425 under the Securities Act
(17 CFR
230.425)
o Soliciting
material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR
240.14a-12)
o Pre-commencement
communications pursuant to Rule 14d-2(b) under the
Exchange
Act (17 CFR 240.14d-2(b))
o Pre-commencement
communications pursuant to Rule 13e-4(c) under the
Exchange
Act (17 CFR 240.13e-4(c))
Item
2.02. Results of Operations and Financial Condition
On April
12, 2005, STRATTEC SECURITY CORPORATION issued a press release (the "Press
Release") announcing results for the fiscal third quarter ended March 27, 2005.
A copy of the Press Release is attached as Exhibit 99.1 to this report. The
attached Exhibit 99.1 is furnished pursuant to Item 2.02 of Form 8-K.
The
information in this Form 8-K and the Exhibit attached hereto shall not be deemed
"filed" for purposes of Section 18 of the Securities Exchange Act of 1934, nor
shall it be deemed incorporated by reference in any filing under the Securities
Act of 1933 or the Securities Exchange Act of 1934, except as shall be expressly
set forth by specific reference in such filing.
Item
9.01. Financial Statements and Exhibits
(c) Exhibits
The
following exhibit is furnished herewith:
99.1--Press Release of STRATTEC
SECURITY CORPORATION, issued April 12, 2005.
2
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned thereunto
duly authorized.
STRATTEC
SECURITY CORPORATION
Date:
April 14, 2005
BY /s/
Patrick J. Hansen_______________
Patrick
J. Hansen, Vice President and
Chief
Financial Officer
Exhibit
99.1
FOR
RELEASE AT 3:00 PM CDT
Contact:
Pat Hansen
Vice
President and
Chief
Financial Officer
414-247-3435
www.strattec.com
STRATTEC
SECURITY CORPORATION
REPORTS
FISCAL THIRD QUARTER RESULTS
Milwaukee,
Wisconsin - April 12, 2005 -- STRATTEC SECURITY CORPORATION (NASDAQ:STRT) today
reported operating results for the fiscal third quarter ended March 27,
2005.
Net sales
for the Company's three months ended March 27, 2005 were $46.1 million, compared
to net sales of $49.3 million for the three months ended March 28, 2004. Net
income for the period was $3.7 million, compared to $4.4 million in the prior
year quarter. Diluted earnings per share for the period were $.98 compared to
$1.15 in the prior year quarter.
For the
nine months ended March 27, 2005, net sales were $139.1 million compared to net
sales of $143.7 million in the prior year period. Net income was $11.8 million
compared to net income of $12.6 million and diluted earnings per share were
$3.07 compared to $3.30 in the prior year.
Overall
sales to STRATTEC’s largest customers decreased in the current quarter compared
to the prior year quarter levels. Sales to DaimlerChrysler Corporation increased
significantly during the current quarter to $13.1 million compared to $11.5
million due to additional product content. Sales to General Motors Corporation
were $9.8 million compared to $11.9 million due to a combination of price
reductions, discontinued models and lower production volumes on certain
vehicles. Sales to Delphi Corporation were $6.8 million compared to $7.6 million
due to pre-programmed price reductions and lower vehicle production volumes.
Sales to Mitsubishi Motor Manufacturing of America were $1.1 million compared to
$1.6 million due to lower vehicle production volumes. Sales to Ford Motor
Company were $8.3 million compared to $8.8 million due to pre-programmed price
reductions and lower vehicle production volumes. Sales to AutoAlliance
International, Ford Motor Company's joint venture assembly plant with Mazda,
were $667,000 in the current quarter. AutoAlliance is a new customer for
STRATTEC. Reduced aftermarket and industrial sales represent the remaining
decrease in the current quarter's overall sales..
Gross
profit margins were 22.1 percent in the current quarter compared to 24.7 percent
in the prior year quarter. The lower gross profit margins in the current year
quarter were primarily the result of higher raw material costs for brass, zinc
and magnesium, lower production volumes and a less favorable overall sales
mix.
Operating
expenses were $4.8 million in the current quarter, compared to $5.1 million in
the prior year quarter.
Provision
for income taxes in the current quarter includes a State refund claim recovery
that positively impacted earnings per share by $.03.
During
the third quarter, STRATTEC repurchased 44,800 shares of its common stock under
the Company’s stock repurchase program at a cost of approximately $2.6
million.
STRATTEC
designs, develops, manufactures and markets mechanical locks, electro-mechanical
locks, latches, and related access control products for global automotive
manufacturers. Its products are shipped to customers in the United States,
Mexico, Europe and South America. The Company's history in the automotive
business spans more than 95 years.
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. 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 Securities and Exchange
Commission.
2
STRATTEC
SECURITY CORPORATION
Results
of Operations
(In
Thousands except per share amounts)
|
Third
Quarter Ended |
Nine
Months Ended |
||||||||||||
|
March
27, 2005 |
March
28, 2004 |
March
27, 2005 |
March
28, 2004 |
||||||||||
|
(Unaudited) |
(Unaudited) |
||||||||||||
|
Net
Sales |
$ |
46,102 |
$ |
49,266 |
$ |
139,129 |
$ |
143,700 |
|||||
|
Cost
of Goods Sold |
35,892 |
37,082 |
106,700 |
108,956 |
|||||||||
|
Gross
Profit |
10,210 |
12,184 |
32,429 |
34,744 |
|||||||||
|
Engineering,
Selling & |
|||||||||||||
|
Administrative
Expenses |
4,822 |
5,132 |
14,836 |
15,033 |
|||||||||
|
Income
from Operations |
5,388 |
7,052 |
17,593 |
19,711 |
|||||||||
|
Interest
Income |
326 |
112 |
742 |
289 |
|||||||||
|
Interest
Expense |
-- |
-- |
-- |
-- |
|||||||||
|
Other
Income (Expense), Net |
(50 |
) |
(49 |
) |
109 |
237 |
|||||||
|
5,664 |
7,115 |
18,444 |
20,237 |
||||||||||
|
Provision
for Income Taxes |
1,933 |
2,668 |
6,662 |
7,589 |
|||||||||
|
Net
Income |
$ |
3,731 |
$ |
4,447 |
$ |
11,782 |
$ |
12,648 |
|||||
|
Earnings
Per Share: |
|||||||||||||
|
Basic |
$ |
.98 |
$ |
1.17 |
$ |
3.10 |
$ |
3.35 |
|||||
|
Diluted |
$ |
.98 |
$ |
1.15 |
$ |
3.07 |
$ |
3.30 |
|||||
|
Average
Basic |
|||||||||||||
|
Shares
Outstanding |
3,798 |
3,802 |
3,803 |
3,775 |
|||||||||
|
Average
Diluted |
|||||||||||||
|
Shares
Outstanding |
3,815 |
3,873 |
3,836 |
3,838 |
|||||||||
|
Other |
|||||||||||||
|
Capital
Expenditures |
$ |
1,435 |
$ |
528 |
$ |
3,455 |
$ |
3,550 |
|||||
|
Depreciation
& Amortization |
$ |
1,759 |
$ |
1,883 |
$ |
5,440 |
$ |
5,842 |
|||||
3
STRATTEC
SECURITY CORPORATION
Condensed
Balance Sheet Data
(In
Thousands)
|
March
27, 2005 |
June
27, 2004 |
||||||
|
(Unaudited) |
|||||||
|
ASSETS |
|||||||
|
Current
Assets: |
|||||||
|
Cash
and cash equivalents |
$ |
51,357 |
$ |
54,231 |
|||
|
Receivables,
Net |
28,793 |
30,931 |
|||||
|
Inventories |
11,759 |
8,361 |
|||||
|
Other
current assets |
9,943 |
10,903 |
|||||
|
Total
Current Assets |
101,852 |
104,426 |
|||||
|
Investment
in Joint Venture |
1,349 |
1,336 |
|||||
|
Prepaid
Pension Obligation |
605 |
-- |
|||||
|
Property,
Plant and Equipment, Net |
29,327 |
31,428 |
|||||
|
|
$ |
133,133 |
$ |
137,190 |
|||
|
LIABILITIES
AND SHAREHOLDERS’ EQUITY |
|||||||
|
Current
Liabilities: |
|||||||
|
Accounts
Payable |
$ |
16,409 |
$ |
18,787 |
|||
|
Other |
13,852 |
16,497 |
|||||
|
Total
Current Liabilities |
30,261 |
35,284 |
|||||
|
Borrowings
Under Revolving Credit Facility |
-- |
-- |
|||||
|
Deferred
Income Taxes |
543 |
543 |
|||||
|
Accrued
Pension and Post Retirement Obligations |
5,096 |
11,511 |
|||||
|
Shareholders’
Equity |
216,874 |
200,713 |
|||||
|
Accumulated
Other Comprehensive Loss |
(5,348 |
) |
(5,385 |
) | |||
|
Less:
Treasury Stock |
(114,293 |
) |
(105,476 |
) | |||
|
Total
Shareholders’ Equity |
97,233 |
89,852 |
|||||
$ |
133,133 |
$ |
137,190 |
||||
4