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STRATTEC Form 8-K April 2004

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 8, 2004

         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)
 
     
 
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits

                 (c)   Exhibits

                                  99.1--Press Release of STRATTEC SECURITY CORPORATION, issued April 8, 2004.


Item 12. Results of Operations and Financial Condition
 
                 On April 8, 2004, STRATTEC SECURITY CORPORATION issued a press release (the "Press Release") announcing results for the fiscal third quarter ended March 28, 2004. 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 12 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.

 
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SIGNATURE

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 8, 2004
BY  /s/ Patrick J. Hansen                                             
       Patrick J. Hansen, Vice President
       and Chief Financial Officer


 
 
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STRATTEC April 2004 Exhibit 99.1
Exhibit 99.1
 
FOR RELEASE AT 7:00 AM 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 8, 2004 -- STRATTEC SECURITY CORPORATION (NASDAQ:STRT) today reported operating results for the fiscal third quarter ended March 28, 2004.

Net sales for the Company’s three months ended March 28, 2004 were $49.3 million, compared to net sales of $49.9 million for the three months ended March 30, 2003. Net income for the period was $4.4 million, compared to $4.2 million in the prior year quarter. Diluted earnings per share for the period were $1.15 compared to $1.11 in the prior year quarter.

For the nine months ended March 28, 2004, net sales were $143.7 million compared to net sales of $146.5 million in the prior year period. Net income was $12.6 million compared to $12.5 million and diluted earnings per share were $3.30 compared to $3.22 in the prior year.

Sales to STRATTEC’s largest customers overall decreased in the current quarter compared to the prior year quarter levels. Sales to General Motors Corporation were $11.9 million compared to $15.0 million due to a combination of preprogrammed price decreases, discontinued models and lower levels of production on certain General Motors vehicles. Sales to Ford Motor Company were $9.3 million compared to $10.6 million due to price reductions and lower production volumes on certain models. Sales to Mitsubishi Motor Manufacturing of America, Inc. were $1.6 million compared to $2.4 million due primarily to declines in their production volumes. Sales to Delphi Corporation were flat during the current quarter at $7.6 million. However, sales to DaimlerChrysler Corporation increased significantly during the current quarter to $11.5 million compared to $8.6 million due to higher production volume and a mo re favorable vehicle content mix. Increased aftermarket sales substantially offset the decreased sales to the Company's largest customers.
 
     
 

Gross profit margins were 24.7 percent in the current quarter compared to 23.4 percent in the prior year quarter. The higher margins in the current year quarter were a result of the Company's ongoing cost reduction initiatives, a more positive sales mix, along with a favorable Mexican Peso to U.S. Dollar exchange rate. These favorable items were partially offset by higher purchased raw material costs for brass and zinc.

Operating expenses were $5.1 million in the current quarter, approximately the same level as in the prior year quarter.

During the third quarter, 33,700 STRATTEC SECURITY CORPORATION shares were repurchased under the Company’s stock repurchase program at a cost of approximately $2.1 million.

STRATTEC SECURITY CORPORATION designs, develops, manufactures and markets mechanical locks, electro-mechanical locks and related access control products for North American Automotive and other Global Automotive Manufacturers.

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.
 
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STRATTEC SECURITY CORPORATION
Results of Operations
(In Thousands except per share amounts)


 
Third Quarter Ended
None Months Ended
 
  March 28, 2004
  March 30, 2003
  March 28, 2004
  March 30, 2003
 
 
 
 
(Unaudited)
(Unaudited)
 
 
 
 
 
Net Sales
$
49,266
  
$
49,926
  
$
143,700
  
$
146,512
  
 
  
 
    
 
    
 
    
 
  
Cost of Goods Sold
  
37,082
    
38,255
    
108,956
    
112,550
  
 
 
 
 
 
Gross Profit
  
12,184
    
11,671
    
34,744
    
33,962
  
 
  
 
    
 
    
 
    
 
  
Engineering, Selling &
 
 
    
 
    
 
    
 
  
Administrative Expenses
  
5,132
    
5,043
    
15,033
    
14,225
  
 
 
 
 
 
Income from Operations
  
7,052
    
6,628
    
19,711
    
19,737
  
 
  
 
    
 
    
 
    
 
  
Interest Income
  
112
    
91
    
289
    
274
  
 
  
 
    
 
    
 
    
 
  
Interest Expense
  
-
    
-
    
-
    
-
  
 
  
 
    
 
    
 
    
 
  
Other Income (Expense), Net
  
(49
)
  
21
    
237
    
(227
)
 
 
 
 
 
 
  
7,115
    
6,740
    
20,237
    
19,784
  
 
  
 
    
 
    
 
    
 
  
Provision for Income Taxes
  
2,668
    
2,493
    
7,589
    
7,320
  
 
 
 
 
 
Net Income
$
4,447
  
$
4,247
  
$
12,648
  
$
12,464
  
 
 
 
 
 
Earnings Per Share:
  
 
    
 
    
 
    
 
  
Basic
$
1.17
  
$
1.13
  
$
3.35
  
$
3.28
  
 
 
 
 
 
Diluted
$
1.15
  
$
1.11
  
$
3.30
  
$
3.22
  
 
 
 
 
 
Average Basic
  
 
    
 
    
 
    
 
  
Shares Outstanding
  
3,802
    
3,759
    
3,775
    
3,797
  
 
  
 
    
 
    
 
    
 
  
Average Diluted
  
 
    
 
    
 
    
 
  
Shares Outstanding
  
3,873
    
3,822
    
3,838
    
3,867
  
 
  
 
    
 
    
 
    
 
  
Other
  
 
    
 
    
 
    
 
  
Capital Expenditures
$
528
  
$
1,327
  
$
3,550
  
$
2,700
  
Depreciation & Amortization
$
1,883
  
$
1,968
  
$
5,842
  
$
5,884
  
 
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STRATTEC SECURITY CORPORATION

Condensed Balance Sheet Data
(In Thousands)



 
  
March 28, 2004
June 29, 2003
   
 
 
  
(Unaudited)
 
ASSETS
  
 
 
Current Assets:
  
 
 
   Cash and cash equivalents
  
$
43,384
  
$
29,902
  
   Receivables, net
    
31,827
    
31,173
  
   Inventories
    
8,868
    
7,884
  
   Other current assets
    
10,335
    
12,127
  
   
 
 
Total Current Assets
    
94,414
    
81,086
  
Deferred Income Taxes
    
1,973
    
1,973
  
Investment in Joint Venture
    
1,363
    
1,141
  
Property, Plant and Equipment, Net
    
31,462
    
33,894
  
   
 
 
 
  
$
129,212
  
$
118,094
  
   
 
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
  
 
  
Current Liabilities:
    
 
    
 
  
Accounts Payable
  
$
15,433
  
$
13,990
  
Other
    
14,379
    
15,819
  
   
 
 
Total Current Liabilities
    
29,812
    
29,809
  
Borrowings Under Revolving Credit Facility
    
-
    
-
  
Accrued Pension and Post Retirement Obligations
    
15,861
    
19,190
  
Shareholders’ Equity
    
188,002
    
169,953
  
Less: Treasury Stock
    
(104,463
)
  
(100,858
)
   
 
 
Total Shareholders’ Equity
    
83,539
    
69,095
  
   
 
 
 
  
$
129,212
  
$
118,094
  
   
 
 

 
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