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): October 18,
2007
|
STRATTEC
SECURITY CORPORATION
|
|
(Exact
name of registrant as specified in its
charter)
|
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Wisconsin
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(State
or other jurisdiction of
incorporation)
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0-25150
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39-1804239
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(Commission
File Number)
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(I.R.S.
Employer I.D. Number)
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3333
West Good Hope Road
Milwaukee,
WI
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53209
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(Address
of Principal Executive Offices)
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(Zip
Code)
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(414)
247-3333
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(Registrant's
telephone number; including area
code)
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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):
(17
CFR
230.425)
(17
CFR
240.14a-12)
Exchange
Act (17 CFR 240.14d-2(b))
Exchange Act (17 CFR 240.13e-4(c))
Section
2 - Financial Information
Item
2.02. Results of Operations and Financial
Condition.
On October 18, 2007, STRATTEC SECURITY CORPORATION issued a press release (the
"Press Release") announcing results for the fiscal first quarter ended September
30, 2007. 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.
Section
9 - Financial Statements and Exhibits
Item
9.01. Financial Statements and Exhibits.
(d) Exhibits
99.1
--
Press Release of STRATTEC SECURITY CORPORATION, issued October 18,
2007.
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: October
19, 2007
BY /s/
Patrick J.
Hansen
Patrick
J. Hansen, Senior Vice President
and
Chief
Financial Officer
3
Exhibit
99.1
FOR
RELEASE AT 3:00 PM CDT
Contact: Pat
Hansen
Senior
Vice President and
Chief
Financial Officer
414-247-3435
www.strattec.com
STRATTEC
SECURITY CORPORATION
REPORTS
FISCAL FIRST QUARTER RESULTS
Milwaukee,
Wisconsin – October 18, 2007 -- STRATTEC SECURITY CORPORATION (NASDAQ:STRT)
today reported improved operating results for the fiscal first quarter ended
September 30, 2007.
Net
sales
for the three months ended September 30, 2007 were $42.7 million compared to
net
sales of $38.1 million for the three months ended October 1,
2006. Net income for the period was $2.4 million, compared to $.7
million in the prior year quarter. Diluted earnings per share for the
period were $.69 compared to $.21 in the prior year quarter.
Sales
to
STRATTEC’s largest customers overall increased in the current quarter compared
to the prior year quarter. Sales to General Motors Corporation in the
current quarter were $12.5 million compared to $7.9 million in the prior year
quarter due to higher product content on certain GM vehicles and the takeover
of
certain passenger car lockset production from another supplier. Sales
to Chrysler LLC were $10.6 million compared to $12.5 million and sales to Delphi
Corporation were $4.0 million compared to $4.5 million due to reduced component
content. Sales to Ford Motor Company were $5.5 million compared to
$4.6 million, due to higher product content and higher production on the
vehicles we supply. Sales during the month of September were weaker
than anticipated for the above four customers. Subsequently, these
customers’ announced production cuts that will effect our 2nd fiscal
quarter
ending December 30, 2007.
Gross
profit margin was 19.6 percent in the current quarter compared to 13.9 percent
in the prior year quarter. The increase in gross profit margin was
primarily attributed to a more favorable sales content mix, higher levels of
production as a result of increased orders from some of our customers and price
increases to recover higher purchased raw material costs.
Normal
operating expenses were $5.8 million in the current quarter, compared to $5.1
million in the prior year quarter. The increased spending is
attributed to new product development and higher stock based compensation
costs.
During
the current quarter, the Company contributed $1.5 million to its Pension Fund
and paid a special dividend of $1.00 per share and a quarterly dividend of
$.15
per share that totaled $4.1 million.
At
the
Company’s 2007 Annual Meeting held October 9, 2007, STRATTEC shareholders
re-elected Mr. Frank J. Krejci to the Company’s Board of Directors for an
additional three-year term.
STRATTEC
designs, develops, manufacturers and markets mechanical locks and keys,
electronically enhanced locks and keys, steering column and instrument panel
ignition lock housings, latches and related access control products for North
American automotive customers, and for global automotive manufacturers through
the VAST Alliance in which it participates with WITTE Automotive of Velbert,
Germany and ADAC Automotive of Grand Rapids, Michigan. The Company’s
history in the automotive business spans nearly 100 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)
|
First
Quarter Ended
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||||||||
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September
30, 2007
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October
1, 2006
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||||||
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(Unaudited)
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||||||||
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Net
Sales
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$ |
42,739
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$ |
38,050
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||||
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Cost
of Goods Sold
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34,345
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32,768
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||||||
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Gross
Profit
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8,394
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5,282
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||||||
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Engineering,
Selling &
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||||||||
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Administrative
Expenses
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5,793
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5,056
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||||||
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Income
from Operations
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2,601
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226
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||||||
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Interest
Income
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913
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922
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||||||
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Interest
Expense
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-
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-
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||||||
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Other
Income, Net
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308
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28
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||||||
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Minority
Interest
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49
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-
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||||||
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3,871
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1,176
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|||||||
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Provision
for Income Taxes
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1,452
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435
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||||||
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Net
Income
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$ |
2,419
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$ |
741
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||||
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Earnings
Per Share:
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||||||||
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Basic
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$ |
.69
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$ |
.
21
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||||
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Diluted
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$ |
.69
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$ |
.
21
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||||
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Average
Basic
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||||||||
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Shares
Outstanding
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3,519
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3,598
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||||||
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Average
Diluted
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||||||||
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Shares
Outstanding
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3,525
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3,600
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||||||
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Other:
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||||||||
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Capital
Expenditures
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$ |
1,746
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$ |
915
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||||
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Depreciation
& Amortization
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$ |
1,738
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$ |
1,749
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||||
3
STRATTEC
SECURITY CORPORATION
Condensed
Balance Sheet Data
(In
Thousands)
|
September
30, 2007
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July
1, 2007
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|||||||
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(Unaudited)
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||||||||
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ASSETS
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||||||||
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Current
Assets:
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||||||||
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Cash
and cash equivalents
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$ |
60,823
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$ |
65,491
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||||
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Receivables,
net
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25,641
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26,890
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||||||
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Inventories
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9,532
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7,166
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||||||
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Other
current assets
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13,788
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13,017
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||||||
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Total
Current Assets
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109,784
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112,564
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||||||
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Deferred
Income Taxes
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2,420
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2,117
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||||||
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Investment
in Joint Ventures
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2,988
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2,813
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||||||
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Prepaid
Pension Cost
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5,666
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4,385
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||||||
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Other
Long Term Assets
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38
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41
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||||||
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Property,
Plant and Equipment, Net
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26,503
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26,526
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||||||
| $ |
147,399
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$ |
148,446
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|||||
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LIABILITIES
AND SHAREHOLDERS’ EQUITY
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||||||||
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Current
Liabilities:
|
||||||||
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Accounts
Payable
|
$ |
14,380
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$ |
16,575
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||||
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Other
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17,021
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14,906
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||||||
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Total
Current Liabilities
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31,401
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31,481
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||||||
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Borrowings
Under Line of Credit Facility
|
-
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-
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||||||
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Accrued
Pension and Postretirement Obligations
|
13,603
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13,431
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||||||
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Minority
Interest
|
862
|
574
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||||||
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Shareholders’
Equity
|
242,764
|
244,119
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||||||
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Accumulated
Other Comprehensive Loss
|
(14,416 | ) | (14,341 | ) | ||||
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Less: Treasury
Stock
|
(126,815 | ) | (126,818 | ) | ||||
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Total
Shareholders’ Equity
|
101,533
|
102,960
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||||||
| $ | 147,399 | $ |
148,446
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|||||
4
STRATTEC
SECURITY CORPORATION
Condensed
Cash Flow Statement Data
(In
Thousands)
|
First
Quarter Ended
|
||||||||
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September
30, 2007
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October
1, 2006
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|||||||
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(Unaudited)
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||||||||
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Cash
Flows from Operating Activities:
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||||||||
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Net
Income
|
$ |
2,419
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$ |
741
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||||
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Adjustments
to Reconcile Net Income to
|
||||||||
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Cash
Used in Operating Activities:
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||||||||
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Minority
Interest
|
(61 | ) |
-
|
|||||
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Depreciation
and Amortization
|
1,738
|
1,749
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||||||
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Stock
Based Compensation Expense
|
313
|
193
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||||||
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Change
in Operating Assets/Liabilities
|
(3,419 | ) |
134
|
|||||
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Other,
net
|
(218 | ) |
99
|
|||||
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Net
Cash Provided by Operating Activities
|
772
|
2,916
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||||||
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Cash
Flows from Investing Activities:
|
||||||||
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Investment
in Joint Ventures
|
-
|
-
|
||||||
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Additions
to Property, Plant and Equipment
|
(1,746 | ) | (915 | ) | ||||
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Proceeds
from Sale of Property, Plant
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||||||||
|
and
Equipment
|
-
|
21
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||||||
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Net
Cash Used in Investing Activities
|
(1,746 | ) | (894 | ) | ||||
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Cash
Flow from Financing Activities:
|
||||||||
|
Purchase
of Common Stock
|
-
|
(3,326 | ) | |||||
|
Dividends
Paid
|
(4,050 | ) |
-
|
|||||
|
Contribution
from Minority Interest
|
349
|
-
|
||||||
|
Reissue/Exercise
of Stock Options
|
7
|
9
|
||||||
|
Net
Cash Used in Financing Activities
|
(3,694 | ) | (3,317 | ) | ||||
|
Net
Decrease in Cash and Cash Equivalents
|
(4,668 | ) | (1,295 | ) | ||||
|
Cash
and Cash Equivalents:
|
||||||||
|
Beginning
of Period
|
65,491
|
65,712
|
||||||
|
End
of Period
|
$ |
60,823
|
$ |
64,417
|
||||
5