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Jan 2004 Strattec Form 8-K
 

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 15, 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 January 15, 2004.


Item 9. Regulation FD Disclosure and Item 12. Results of Operations and Financial Condition

On January 15, 2004, STRATTEC SECURITY CORPORATION issued a press release (the "Press Release") announcing results for the fiscal second quarter ended December 28, 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:  January 19, 2004
BY  /s/  Patrick J. Hansen__________________
Patrick J. Hansen, Vice President
and Chief Financial Officer

 
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Strattec Exhibit 99.1 to Jan Form 8-K


 

Exhibit 99.1
 
FOR RELEASE AT 3:00 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 15, 2004 -- STRATTEC SECURITY CORPORATION (NASDAQ:STRT) today reported operating results for the fiscal second quarter ended December 28, 2003.

Net sales for the Company’s second quarter ended December 28, 2003 were $50.0 million, compared to net sales of $48.7 million for the second quarter ended December 29, 2002. Net income for the period was $4.6 million, compared to $4.0 million in the prior year quarter. Diluted earnings per share for the period were $1.21 compared to $1.05 in the prior year quarter.

For the six months ended December 28, 2003, net sales were $94.4 million compared to net sales of $96.6 million in the prior year period. Net income was $8.2 million in both six month periods and diluted earnings per share were $2.15 compared to $2.11.

Overall sales to STRATTEC’s largest customers decreased slightly in the current quarter compared to the prior year quarter levels. Sales to General Motors and Ford Motor Company decreased, with General Motors at $14.0 million compared to $15.7 million and Ford at $9.7 million compared to $10.1 million. Mitsubishi Motor Manufacturing of America, Inc. remained flat at $2.1 million, while DaimlerChrysler increased to $9.5 million compared to $8.1 million, and Delphi Corporation increased to $8.0 million compared to $7.5 million in the prior year quarter. Sales to heavy truck and other industrial customers modestly increased compared to the prior year quarter as did aftermarket sales.

Gross profit margins were 24.2 percent in the current quarter compared to 22.5 percent in the prior year quarter. The gross profit margin improvement during the current quarter was attributed primarily to our on-going manufacturing process improvement initiatives, along with a favorable Mexican peso to U.S. dollar exchange rate and product mix.

Operating expenses were $5.0 million in the current quarter, compared to $4.6 million in the prior year quarter, and $4.9 million in the first quarter.

During the current quarter, the Company repurchased 20,000 STRATTEC SECURITY CORPORATION shares under the Company’s stock repurchase program at a cost of $1.1 million.

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 c urrency 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 28, 2003     December 29, 2002  

 December 28, 2003

 December 29, 2002
   
(Unaudited)  
  
(Unaudited)   
 
Net Sales
 
$
50,014
 
$
48,680
 
$
94,434
 
$
96,586
 
Cost of Goods Sold
   
37,912
   
37,742
   
71,874
   
74,295
 
   
 
 
 
 
Gross Profit
   
12,102
   
10,938
   
22,560
   
22,291
 
 
                          
Engineering, Selling &
Administrative Expenses
   
4,983
   
4,571
   
9,901
   
9,182
 
   
 
 
 
 
Income from Operations
   
7,119
   
6,367
   
12,659
   
13,109
 
                           
Interest Income
   
88
   
85
   
177
   
183
 
 
                          
Interest Expense
   
-
   
-
   
-
   
-
 
                           
Other Income (Expense), Net
   
184
   
(45
)
 
286
   
(248
)
   
 
 
 
 
     
7,391
   
6,407
   
13,122
   
13,044
 
                           
Provision for Income Taxes
   
2,772
   
2,371
   
4,921
   
4,827
 
 
 
 
 
 
Net Income
 
$
4,619
 
$
4,036
 
$
8,201
 
$
8,217
 
 
 
 
 
 
Earnings Per Share:
       
Basic
 
$
1.23
 
$
1.07
 
$
2.18
 
$
2.15
 
   
 
 
 
 
Diluted
 
$
1.21
 
$
1.05
 
$
2.15
 
$
2.11
 
   
 
 
 
 
Average Basic
Shares Outstanding
   
3,765
   
3,756
   
3,762
   
3,816
 
                           
Average Diluted
Shares Outstanding
   
3,824
   
3,832
   
3,821
   
3,889
 
 
Other
                         
                          
Capital Expenditures
 
$
1,926
 
$
576
 
$
3,022
 
$
1,373
 
Depreciation & Amortization
 
$
1,942
 
$
1,953
 
$
3,959
 
$
3,916
 
                           

 
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STRATTEC SECURITY CORPORATION

Condensed Balance Sheet Data
(In Thousands)

 
  

December 28,  2003  

  

   June 29,      2003

   
 
 
 
    
(Unaudited)     
 
ASSETS
             
Current Assets:
     
 
      
 
  
Cash and cash equivalents
 
$
36,332
 
$
29,902
 
Receivables, net
   
28,688
   
31,173
 
Inventories
   
10,090
   
7,884
 
Other current assets
   
  10,646
   
12,127
 
 
 
 
Total Current Assets
   
85,756
   
81,086
 
Deferred Income Taxes
   
1,973
   
1,973
 
Investment in Joint Venture
   
1,379
   
1,141
 
Property, Plant and Equipment, Net
   
  32,797
   
33,894
 
 
 
 
 
 
$
121,905
 
$
118,094
 
 
 
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
             
Current Liabilities:
     
 
      
 
  
  Accounts Payable
 
$
17,551
 
$
13,990
 
  Other
   
  11,995
   
15,819
 
   
 
 
Total Current Liabilities
   
29,546
   
29,809
 
Accrued Pension and Post Retirement Obligations
   
15,251
   
19,190
 
Shareholders’ Equity
   
179,453
   
169,953
 
Less: Treasury Stock
   
  (102,345
)
 
(100,858
)
   
 
 
Total Shareholders’ Equity
   
  77,108
   
69,095
 
   
 
 
 
$
121,905
 
$
118,094
 
   
 
 




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