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 10, 2003
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STRATTEC SECURITY CORPORATION
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(Exact name of registrant as specified in its charter)
Wisconsin
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(State or other jurisdiction of incorporation)
0-25150 39-1804239
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(Commission File Number) (I.R.S. Employer I.D. Number)
3333 West Good Hope Road
Milwaukee, WI 53209
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(Address of Principal Executive Offices) (Zip Code)
(414) 247-3333
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(Registrant's telephone number; including area code)
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
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(c) Exhibits
99.1--Press Release of STRATTEC SECURITY CORPORATION, issued April 10,
2003.
Item 9. Regulation FD Disclosure and Item 12. Results of Operations and
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Financial Condition
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On April 10, 2003, STRATTEC SECURITY CORPORATION issued a press release
(the "Press Release") announcing results for the fiscal third quarter ended
March 30, 2003. 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 9 and Item 12
of Form 8-K.
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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 10, 2003
BY /s/ Patrick J. Hansen
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Patrick J. Hansen, Vice President
and Chief Financial Officer
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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 10, 2003 -- STRATTEC SECURITY CORPORATION
(NASDAQ:STRT) today reported operating results for the fiscal third quarter
ended March 30, 2003.
Net sales for the Company's three months ended March 30, 2003 were $49.9
million, compared to net sales of $51.7 million for the three months ended March
31, 2002. Net income for the period was $4.2 million, compared to $4.0 million
in the prior year quarter. Diluted earnings per share for the period were $1.11
compared to $.96 in the prior year quarter.
For the nine months ended March 30, 2003, net sales were $146.5 million compared
to net sales of $150.3 million in the prior year period. Net income was $12.5
million compared to $10.9 million and diluted earnings per share were $3.22
compared to $2.62 in the prior year.
Sales to STRATTEC's largest customers overall decreased in the current quarter
compared to the prior year quarter levels, with General Motors Corporation at
$15.0 million compared to $15.7 million, and DaimlerChrysler Corporation at $8.6
million compared to $9.6 million. Sales to Ford Motor Company and Mitsubishi
Motor Manufacturing of America, Inc. were flat during the current quarter at
$10.6 million and $2.4 million, respectively. Sales to Delphi Corporation
increased slightly at $7.6 million compared to $7.4 million in the prior year
quarter.
Gross profit margins were 23.4 percent in the current quarter compared to 22.0
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 along
with a favorable Mexican Peso to U.S. Dollar exchange rate.
Operating expenses were $5.0 million in the current quarter, approximately the
same level as in the prior year quarter.
During the third quarter, 33,000 STRATTEC SECURITY CORPORATION shares were
repurchased under the Company's stock repurchase program at a cost of
approximately $1.6 million. The Company also contributed $5.0 million to its
Pension Fund during the quarter.
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Harold M. Stratton II, Chairman of the Board and Chief Executive Officer,
commented: "I'm pleased that we continued to show solid operating results
during the third quarter ended March 30, 2003 despite an uncertain U.S. economy.
Our North American production increased approximately 5% in comparison to the
prior year quarter. However, our sales continued to be reduced by product
content changes and pre-programmed price reductions as has been the case
throughout the current fiscal year. This sales pattern will continue into our
fiscal fourth quarter. In addition, certain customers have announced vehicle
production cutbacks for the upcoming quarter, while at the same time enhancing
incentive programs to encourage consumer buying. The effectiveness of these
incentive programs is dependent upon many factors, including the outcome of the
war in Iraq. It is therefore difficult to predict the effect these actions will
have on our fourth quarter. Regardless, we believe we have positioned ourselves
operationally to meet the uncertainty, and anticipate a favorable finish to our
fiscal year end in June."
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
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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
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RESULTS OF OPERATIONS
(IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
Third Quarter Ended Nine Months Ended
March 30, 2003 March 31, 2002 March 30, 2003 March 31, 2002
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(Unaudited) (Unaudited)
Net Sales . . . . . . . . . . $ 49,926 $ 51,687 $ 146,512 $ 150,320
Cost of Goods Sold. . . . . . 38,255 40,313 112,550 118,758
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Gross Profit. . . . . . . . . 11,671 11,374 33,962 31,562
Engineering, Selling &
Administrative Expenses . . . 5,043 4,954 14,225 14,596
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Income from Operations. . . . 6,628 6,420 19,737 16,966
Interest Income . . . . . . . 91 119 274 415
Interest Expense. . . . . . . - - - -
Other Income (Expense), Net . 21 (142) (227) (49)
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6,740 6,397 19,784 17,332
Provision for Income Taxes. . 2,493 2,367 7,320 6,413
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Net Income. . . . . . . . . . $ 4,247 $ 4,030 $ 12,464 $ 10,919
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Earnings Per Share:
Basic . . . . . . . . . . . . $ 1.13 $ .98 $ 3.28 $ 2,66
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Diluted . . . . . . . . . . . $ 1.11 $ .96 $ 3.22 $ 2.62
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Average Basic
Shares Outstanding. . . . . 3,759 4,130 3,797 4,103
Average Diluted
Shares Outstanding. . . . . 3,822 4,204 3,867 4,162
Other
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Capital Expenditures. . . . $ 1,327 $ 1,489 $ 2,700 $ 3,774
Depreciation & Amortization $ 1,968 $ 2,082 $ 5,884 $ 6,230
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STRATTEC SECURITY CORPORATION
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CONDENSED BALANCE SHEET DATA
(IN THOUSANDS)
March 30,2003 June 30, 2002
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(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents . . . . . . . . . . $ 27,442 $ 34,956
Receivables, net. . . . . . . . . . . . . . . 28,230 27,860
Inventories . . . . . . . . . . . . . . . . . 11,067 8,242
Other current assets. . . . . . . . . . . . . 11,623 11,582
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Total Current Assets. . . . . . . . . . . . 78,362 82,640
Deferred Income Taxes . . . . . . . . . . . . . 469 469
Property, Plant and Equipment, Net. . . . . . . 35,042 38,531
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$ 113,873 $ 121,640
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts Payable. . . . . . . . . . . . . . . $ 16,279 $ 15,291
Other . . . . . . . . . . . . . . . . . . . . 15,608 16,234
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Total Current Liabilities . . . . . . . . . . 31,887 31,525
Borrowings Under Revolving Credit Facility. . . - -
Accrued Pension and Post Retirement Obligations 11,625 15,448
Shareholders' Equity. . . . . . . . . . . . . . 167,083 153,644
Less: Treasury Stock . . . . . . . . . . . . (96,722) ( 78,977)
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Total Shareholders' Equity. . . . . . . . . . . 70,361 74,667
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$ 113,873 $ 121,640
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