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): August
2, 2005
|
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)
|
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))
On
August
2, 2005, STRATTEC SECURITY CORPORATION issued a press release (the "Press
Release") announcing results for the fiscal fourth quarter and year ended July
3, 2005. 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 August 2,
2005.
2
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:
August 3, 2005
BY
/s/
Patrick J. Hansen
Patrick
J. Hansen,
Vice President and
Chief
Financial
Officer
Exhibit
99.1
FOR
RELEASE AT 3:00 CDT
Contact:
Pat Hansen
Vice
President and
Chief
Financial Officer
414-247-3435
www.strattec.com
STRATTEC
SECURITY CORPORATION
REPORTS
FISCAL FOURTH QUARTER AND YEAR END RESULTS
Milwaukee,
Wisconsin - August 2, 2005 -- STRATTEC SECURITY CORPORATION (NASDAQ: STRT)
today
reported operating results for the fourth quarter and fiscal year ended July
3,
2005.
Net
sales
for the fourth quarter ended July 3, 2005 were $51.2 million, compared to
net
sales of $51.9 million for the fourth quarter ended June 27, 2004. The 2005
fiscal fourth quarter was 14 weeks while 2004’s fourth quarter was the typical
13 weeks. The impact of the additional week of customer shipments during
the
current year quarter increased sales by approximately $2.9 million. Net income
was $3.3 million, compared to $4.6 million in the prior year quarter. Diluted
earnings per share for the fourth quarter were $.87 compared to $1.19 in
the
prior year quarter.
For
the
year ended July 3, 2005, net sales were $190.3 million, compared to net sales
of
$195.6 million in the prior year period. The 2005 fiscal year was 53 weeks
while
2004’s fiscal year was the typical 52 weeks. Net income was $15.0 million
compared to $17.3 million and diluted earnings per share were $3.94 compared
to
$4.49.
Sales
to
STRATTEC’s largest customers overall declined in the current quarter compared to
the prior year quarter levels. Sales to DaimlerChrysler Corporation increased
significantly during the current quarter to $14.7 million compared to $12.1
million primarily due to a more favorable vehicle content mix. Sales to Delphi
Corporation were $8.0 million compared to $7.5 million. Sales to General
Motors
Corporation were $10.9 million compared to $13.7 million due to a combination
of
discontinued models and lower levels of production on certain General Motors
vehicles. Sales to Ford Motor Company were $8.2 million compared to $8.6
million
due to price reductions and lower production volumes on certain vehicles.
Sales
to Mitsubishi Motor Manufacturing of America, Inc. declined to $1.1 million
in
the current quarter compared to $1.5 million in the prior year quarter due
to
their reduced production volumes.
Gross
profit margins were 20.1 percent in the current quarter compared to 24.5
percent
in the prior year quarter. The lower margins in the current year quarter
were
primarily the result of lower weekly production shipment volumes and higher
purchased raw material costs for brass, zinc and magnesium. Also impacting
the
current quarter were two unusual items: A lump sum bonus paid to the Company’s
Milwaukee represented hourly workers resulting from a new 3-year labor contract
ratified June 27, 2005; and premium freight and overtime charges related
to
capacity issues with two customer directed component suppliers. Together
these
two unusual items reduced diluted earnings per share by $.10.
Operating
expenses were $5.9 million in the current quarter, compared to $5.6 million
in
the prior year quarter.
During
the fourth quarter, the Company repurchased 42,100 STRATTEC SECURITY CORPORATION
shares under the Company’s stock repurchase program at a cost of approximately
$2.2 million. For the year ended July 3, 2005, a total of 187,100 shares
were
repurchased at a cost of approximately $11.0 million.
Effective
for fiscal 2006, the Company is required under Financial Accounting Standard
123(R) to recognize stock-based compensation expense in its financial
statements. It is estimated that the impact of adopting this new standard
in
fiscal 2006 will reduce the Company’s overall pre-tax earnings by approximately
$1.1 million.
STRATTEC
designs, develops, manufacturers and markets mechanical locks,
electro-mechanical locks, latches, and related access control products for
global automotive manufacturers. Its products are shipped to customers in
the
United States, Mexico, Europe and South America. The Company’s history in the
automotive business spans more than 95 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)
|
Fourth
Quarter Ended
|
Years
Ended
|
||||||||||||
|
July
3, 2005
|
|
June
27, 2004
|
|
July
3, 2005
|
|
June
27, 2004
|
|||||||
|
(Unaudited)
|
|||||||||||||
|
Net
Sales
|
$
|
51,185
|
$
|
51,946
|
$
|
190,314
|
$
|
195,646
|
|||||
|
Cost
of Goods Sold
|
40,918
|
39,203
|
147,618
|
148,159
|
|||||||||
|
Gross
Profit
|
10,267
|
12,743
|
42,696
|
47,487
|
|||||||||
|
Engineering,
Selling &
|
|||||||||||||
|
Administrative
Expenses
|
5,852
|
5,591
|
20,688
|
20,624
|
|||||||||
|
Income
from Operations
|
4,415
|
7,152
|
22,008
|
26,863
|
|||||||||
|
Interest
Income
|
427
|
137
|
1,169
|
426
|
|||||||||
|
Interest
Expense
|
-
|
-
|
-
|
-
|
|||||||||
|
Other
Income (Expense), Net
|
211
|
125
|
320
|
362
|
|||||||||
|
5,053
|
7,414
|
23,497
|
27,651
|
||||||||||
|
Provision
for Income Taxes
|
1,797
|
2,780
|
8,459
|
10,369
|
|||||||||
|
Net
Income
|
$
|
3,256
|
$
|
4,634
|
$
|
15,038
|
$
|
17,282
|
|||||
|
Earnings
Per Share:
|
|||||||||||||
|
Basic
|
$
|
.87
|
$
|
1.21
|
$
|
3.97
|
$
|
4.56
|
|||||
|
Diluted
|
$
|
.87
|
$
|
1.19
|
$
|
3.94
|
$
|
4.49
|
|||||
|
Average
Basic
|
|||||||||||||
|
Shares
Outstanding
|
3,753
|
3,827
|
3,790
|
3,788
|
|||||||||
|
Average
Diluted
|
|||||||||||||
|
Shares
Outstanding
|
3,761
|
3,883
|
3,816
|
3,849
|
|||||||||
|
Other
|
|||||||||||||
|
Capital
Expenditures
|
$
|
2,043
|
$
|
1,973
|
$
|
5,498
|
$
|
5,523
|
|||||
|
Depreciation
& Amortization
|
$
|
1,785
|
$
|
1,862
|
$
|
7,225
|
$
|
7,704
|
|||||
3
STRATTEC
SECURITY CORPORATION
Condensed
Balance Sheet Data
(In
Thousands)
|
July
3, 2005
|
June
27, 2004
|
||||||
|
ASSETS
|
|||||||
|
Current
Assets:
|
|||||||
|
Cash
and cash equivalents
|
$
|
56,950
|
$
|
54,231
|
|||
|
Receivables,
net
|
26,053
|
30,931
|
|||||
|
Inventories
|
11,654
|
8,361
|
|||||
|
Other
current assets
|
10,030
|
10,443
|
|||||
|
Total
Current Assets
|
104,687
|
103,966
|
|||||
|
Deferred
Income Taxes
|
1,796
|
-
|
|||||
|
Investment
in Joint Venture
|
1,412
|
1,336
|
|||||
|
Other
Long Term Assets
|
603
|
460
|
|||||
|
Property,
Plant and Equipment, Net
|
29,592
|
31,428
|
|||||
|
$
|
138,090
|
$
|
137,190
|
||||
|
LIABILITIES
AND SHAREHOLDERS’ EQUITY
|
|||||||
|
Current
Liabilities:
|
|||||||
|
Accounts
Payable
|
$
|
17,218
|
$
|
18,787
|
|||
|
Other
|
12,850
|
16,497
|
|||||
|
Total
Current Liabilities
|
30,068
|
35,284
|
|||||
|
Borrowings
Under Revolving Credit Facility
|
-
|
-
|
|||||
|
Deferred
Income Taxes
|
-
|
543
|
|||||
|
Accrued
Pension and Post Retirement Obligations (A)
|
16,271
|
11,511
|
|||||
|
Shareholders’
Equity
|
220,261
|
200,713
|
|||||
|
Accumulated
Other Comprehensive Loss
|
(12,047
|
)
|
(5,385
|
)
|
|||
|
Less:
Treasury Stock
|
(116,463
|
)
|
(105,476
|
)
|
|||
|
Total
Shareholders’ Equity
|
91,751
|
89,852
|
|||||
|
$
|
138,090
|
$
|
137,190
|
(A)
Includes
$15,804,000 and $4,446,000 of additional minimum pension liability recorded
during the fourth quarter of 2005 and 2004.