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): January 13, 2005
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STRATTEC SECURITY CORPORATION |
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(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 |
39-1804239 | |
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(Commission File Number) |
(I.R.S. Employer I.D. Number) |
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3333 West Good Hope Road
Milwaukee, WI |
53209 | |
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(Address of Principal Executive Offices) |
(Zip Code) |
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(414) 247-3333 |
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(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))
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Item 2.02. Results of Operations and Financial Condition
On January 13, 2005, STRATTEC SECURITY CORPORATION issued a press release (the "Press Release") announcing results for the fiscal second quarter ended December 26, 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 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 January 13, 2005.
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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: January 14, 2005
BY /s/ Patrick J. Hansen
Patrick J. Hansen, Vice President and
Chief Financial Officer
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Exhibit 99.1
FOR RELEASE AT 7:00 AM CST
Contact: Pat Hansen
Vice President and
Chief Financial Officer
414-247-3435
www.strattec.com
STRATTEC SECURITY CORPORATION
REPORTS FISCAL SECOND QUARTER RESULTS
Milwaukee, Wisconsin - January 13, 2005 -- STRATTEC SECURITY CORPORATION (NASDAQ:STRT) today reported operating results for the fiscal second quarter ended December 26, 2004.
Net sales for the Company's second quarter ended December 26, 2004 were $48.4 million, compared to net sales of $50.0 million for the second quarter ended December 28, 2003. Net income for the period was $4.4 million, compared to $4.6 million in the prior year quarter. Diluted earnings per share for the period were $1.15 compared to $1.21 in the prior year quarter.
For the six months ended December 26, 2004, net sales were $93.0 million compared to net sales of $94.4 million in the prior year period. Net income was $8.1 million compared to net income of $8.2 million in the prior year period and diluted earnings per share were $2.09 compared to $2.15.
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 $12.8 million compared to $9.5 million due to a more favorable vehicle content mix. Sales to Delphi Corporation were flat at $8.0 million. Sales to General Motors Corporation were $10.8 million compared to $14.0 million due to a combination of price reductions, discontinued models and lower levels of production on certain vehicles. Sales to Mitsubishi Motor Manufacturing of America, Inc. were $1.0 million compared to $2.1 million due to lower vehicle production volumes. Sales to Ford Motor Company decreased slightly at $8.5 million compared to $9.0 million due to pre-programmed price reductions. Th
e Ford Motor Company sales in the current quarter do not reflect approximately $600,000 of new lockset content relating to the Ford Mustang. This vehicle content is sold directly to Ford's joint venture partner AutoAlliance.
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Gross profit margins were 23.6 percent in the current quarter compared to 24.2 percent in the prior year quarter. The gross profit margin decline during the current quarter was attributed primarily to product sales mix, lower production volumes, and higher purchased material costs for brass and zinc.
Operating expenses were $4.8 million in the current quarter, compared to $5.0 million in the prior year quarter.
During the quarter, the Company contributed $3.0 million to its Pension Fund and repurchased 12,500 STRATTEC SECURITY CORPORATION shares under the Company’s stock repurchase program at a cost of $787,000.
STRATTEC SECURITY CORPORATION designs, develops, manufactures and markets mechanical locks, electro-mechanical locks and related access control products for North American 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 oper
ations. 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)
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Second Quarter Ended |
Six Months Ended |
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December 26, 2004 |
December 28, 2003 |
December 26, 2004 |
December 28, 2003 |
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(Unaudited) |
(Unaudited) |
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Net Sales |
$ |
48,436 |
$ |
50,014 |
$ |
93,027 |
$ |
94,434 |
|||||
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Cost of Goods Sold |
36,990 |
37,912 |
70,808 |
71,874 |
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Gross Profit |
11,446 |
12,102 |
22,219 |
22,560 |
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Engineering, Selling & |
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Administrative Expenses |
4,848 |
4,983 |
10,014 |
9,901 |
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Income from Operations |
6,598 |
7,119 |
12,205 |
12,659 |
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Interest Income |
233 |
88 |
416 |
177 |
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Interest Expense |
-- |
-- |
-- |
-- |
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Other Income, Net |
196 |
184 |
159 |
286 |
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7,027 |
7,391 |
12,780 |
13,122 |
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Provision for Income Taxes |
2,600 |
2,772 |
4,729 |
4,921 |
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Net Income |
$ |
4,427 |
$ |
4,619 |
$ |
8,051 |
$ |
8,201 |
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Earnings Per Share: |
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Basic |
$ |
1.16 |
$ |
1.23 |
$ |
2.12 |
$ |
2.18 |
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Diluted |
$ |
1.15 |
$ |
1.21 |
$ |
2.09 |
$ |
2.15 |
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Average Basic |
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Shares Outstanding |
3,806 |
3,765 |
3,806 |
3,762 |
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Average Diluted |
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Shares Outstanding |
3,840 |
3,824 |
3,847 |
3,821 |
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Other |
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Capital Expenditures |
$ |
1,322 |
$ |
1,926 |
$ |
2,020 |
$ |
3,022 |
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Depreciation & Amortization |
$ |
1,817 |
$ |
1,942 |
$ |
3,681 |
$ |
3,959 |
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STRATTEC SECURITY CORPORATION
Condensed Balance Sheet Data
(In Thousands)
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December 26,
2004 |
June 27,
2004 |
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(Unaudited) |
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ASSETS |
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Current Assets: |
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Cash and cash equivalents |
$ |
50,163 |
$ |
54,231 |
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Receivables, Net |
27,693 |
30,931 |
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Inventories |
11,098 |
8,361 |
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Other current assets |
9,655 |
10,903 |
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Total Current Assets |
98,609 |
104,426 |
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Investment in Joint Ventures |
1,365 |
1,336 |
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Prepaid Pension Obligation |
1,011 |
-- |
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Property, Plant and Equipment, Net |
29,700 |
31,428 |
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$ |
130,685 |
$ |
137,190 |
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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Current Liabilities: |
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Accounts Payable |
$ |
16,583 |
$ |
18,787 |
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Other |
12,947 |
16,497 |
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Total Current Liabilities |
29,530 |
35,284 |
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| Borrowings Under Revolving Credit Facility |
- |
- |
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Deferred Income Taxes |
543 |
543 |
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Accrued Pension and Post Retirement Obligations |
5,062 |
11,511 |
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Shareholders’ Equity |
212,565 |
200,713 |
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Accumulated Other Comprehensive Loss |
(5,291 |
) |
(5,385 |
) | |||
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Less: Treasury Stock |
(111,724 |
) |
(105,476 |
) | |||
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Total Shareholders’ Equity |
95,550 |
89,852 |
|||||
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$ |
130,685 |
$ |
137,190 |
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