STRATTEC SECURITY CORPORATION Reports Fiscal Second Quarter Results
STRATTEC SECURITY CORPORATION (Nasdaq: STRT) today reported operating results for the fiscal second quarter ended December 30, 2001.
Net sales for the Company's second quarter ended December 30, 2001 were $49.2 million, compared to net sales of $50.0 million for the second quarter ended December 31, 2000. Net income for the period was $3.2 million, compared to $3.4 million in the prior year quarter. Diluted earnings per share for the period were $.78 compared to $.76 in the prior year quarter.
For the six months ended December 30, 2001, net sales were $98.6 million compared to net sales of $102.4 million in the prior year period. Net income was $6.9 million compared to $7.3 million and diluted earnings per share were $1.66 compared to $1.61.
Sales to STRATTEC's largest customers overall decreased slightly in the current quarter compared to the prior year quarter levels, with General Motors Corporation at $15.1 million compared to $15.0 million, Delphi Automotive Systems Corporation at $6.9 million compared to $7.0 million, DaimlerChrysler Corporation at $9.1 million compared to $8.2 million, Ford Motor Company at $10.7 million compared to $11.0 million and Mitsubishi Motor Manufacturing of America, Inc. at $2.1 million compared to $3.1 million.
Gross profit margins were 20.5 percent in the current quarter compared to 19.8 percent in the prior year quarter. The increase in gross profit margins was attributed primarily to a more stable automotive production build schedule during the current quarter compared to the prior year quarter, in which strong production during the early part of the quarter gave way to significantly weaker demand in the latter part.
Operating expenses were $4.9 million in the current quarter, compared to $4.7 million in the prior year quarter.
Other expense of $238,000 in the current quarter was primarily due to Mexican peso exchange losses on U.S. dollar dominated assets.
During the second quarter, 15,000 shares were repurchased under the Company's stock repurchase program at a cost of approximately $448,000.
Harold M. Stratton II, Chairman of the Board and Chief Executive Officer, commented: "Our second quarter operating results were supported by good, stable vehicle production rates as a result of the zero percent financing and other consumer incentives offered by automotive manufacturers during the quarter. Looking forward, our next six months will be affected by vehicle build schedules which in turn will be dependent upon future consumer incentive offerings, and the potential of reduced demand as a result of consumers purchasing vehicles earlier than planned under the zero percent financing incentives of the last 3 months. It is not clear how these factors will play out. However, if vehicle production remains stable, our operating results for the remainder of our fiscal year should compare favorably with the same period last year."
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.
STRATTEC SECURITY CORPORATION
Results of Operations
(In Thousands except per share amounts)
Second Quarter Ended Six Months Ended
December 30, December 31, December 30, December 31,
2001 2000 2001 2000
(Unaudited) (Unaudited)
Net Sales $49,178 $ 49,988 $98,633 $ 102,409
Cost of Goods Sold 39,072 40,066 78,445 81,184
Gross Profit 10,106 9,922 20,188 21,225
Engineering, Selling &
Administrative Expenses 4,874 4,657 9,642 9,690
Income from Operations 5,232 5,265 10,546 11,535
Interest Income 141 190 296 383
Interest Expense -- -- -- --
Other Income (Expense),
Net (238) 75 93 (77)
5,135 5,530 10,935 11,841
Provision for Income
Taxes 1,900 2,101 4,046 4,531
Net Income $3,235 $3,429 $6,889 $7,310
Earnings Per Share:
Basic $.79 $.77 $1.68 $1.64
Diluted $.78 $.76 $1.66 $1.61
Average Basic
Shares Outstanding 4,096 4,433 4,089 4,447
Average Diluted
Shares Outstanding 4,149 4,529 4,140 4,547
Other
Capital Expenditures $1,393 $3,424 $2,285 $4,942
Depreciation &
Amortization $2,080 $1,975 $4,148 $3,879
STRATTEC SECURITY CORPORATION
Condensed Balance Sheet Data
(In Thousands)
December 30, 2001 July 1, 2001
(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $28,481 $15,298
Receivables, net 22,288 27,189
Inventories 10,508 8,605
Other current assets 8,560 8,575
Total Current Assets 69,837 59,667
Deferred Income Taxes 130 130
Property, Plant and Equipment, Net 39,936 41,851
$109,903 $101,648
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts Payable $14,516 $14,178
Other 11,084 12,315
Total Current Liabilities 25,600 26,493
Borrowings Under Revolving Credit Facility -- --
Accrued Pension and Post Retirement
Obligations 16,094 15,145
Shareholders' Equity 139,485 128,848
Less: Treasury Stock (71,276) (68,838)
Total Shareholders' Equity 68,209 60,010
$109,903 $101,648
MAKE YOUR OPINION COUNT - Click Here
http://tbutton.prnewswire.com/prn/11690X54058287
SOURCE STRATTEC SECURITY CORPORATION
CONTACT: Pat Hansen, Vice President and Chief Financial Officer of
STRATTEC SECURITY CORPORATION, +1-414-247-3435
URL: http://www.strattec.com
http://www.prnewswire.com
Copyright (C) 2002 PR Newswire. All rights reserved.