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
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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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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)) |
Three Months Ended
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December 30, 2012
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January 1, 2012
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Chrysler Group LLC
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$ | 23.0 | $ | 22.4 | ||||
General Motors Company
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13.5 | 14.4 | ||||||
Ford Motor Company
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10.5 | 8.1 | ||||||
Tier 1 Customers
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15.0 | 11.4 | ||||||
Commercial and Other OEM Customers
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7.7 | 5.9 | ||||||
Hyundai / Kia
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2.5 | 3.7 | ||||||
TOTAL | $ | 72.2 | $ | 65.9 |
December 30,
2012
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January 1,
2012
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Foreign Currency Transaction Gain (Loss)
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$ | 142 | $ | (95 | ) | |||
Net Realized and Unrealized Gains on Mexican Peso Option Contracts
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38 | 397 | ||||||
Rabbi Trust (Loss) Gain
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(11 | ) | 144 | |||||
Other
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18 | 57 | ||||||
$ | 187 | $ | 503 |
Second Quarter Ended
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Six Months Ended
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December 30, 2012
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January 1, 2012
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December 30, 2012
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January 1, 2012
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Net Sales
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$ | 72,243 | $ | 65,886 | $ | 143,050 | $ | 132,263 | ||||||||
Cost of Goods Sold
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59,936 | 54,646 | 117,030 | 109,519 | ||||||||||||
Gross Profit
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12,307 | 11,240 | 26,020 | 22,744 | ||||||||||||
Engineering, Selling & Administrative Expenses
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8,481 | 7,979 | 17,601 | 16,187 | ||||||||||||
Income from Operations
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3,826 | 3,261 | 8,419 | 6,557 | ||||||||||||
Interest Income
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10 | 15 | 13 | 32 | ||||||||||||
Equity Loss of VAST LLC Joint Venture
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(99 | ) | (192 | ) | (111 | ) | (312 | ) | ||||||||
Interest Expense
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(10 | ) | (23 | ) | (15 | ) | (54 | ) | ||||||||
Other Income (Expense), Net
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187 | 503 | 169 | (365 | ) | |||||||||||
3,914 | 3,564 | 8,475 | 5,858 | |||||||||||||
Provision for Income Taxes
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1,074 | 1,260 | 2,320 | 1,581 | ||||||||||||
Net Income
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2,840 | 2,304 | 6,155 | 4,277 | ||||||||||||
Net Income Attributable to Non-Controlling Interest
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(446 | ) | (756 | ) | (1,091 | ) | (1,447 | ) | ||||||||
Net Income Attributable to STRATTEC SECURITY
CORPORATION
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$ | 2,394 | $ | 1,548 | $ | 5,064 | $ | 2,830 | ||||||||
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Earnings Per Share:
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Basic
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$ | 0.71 | $ | 0.47 | $ | 1.50 | $ | 0.86 | ||||||||
Diluted
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$ | 0.70 | $ | 0.47 | $ | 1.48 | $ | 0.85 | ||||||||
Average Basic
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Shares Outstanding
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3,317 | 3,301 | 3,313 | 3,298 | ||||||||||||
Average Diluted
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Shares Outstanding
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3,353 | 3,329 | 3,346 | 3,328 | ||||||||||||
Other
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Capital Expenditures
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$ | 2,477 | $ | 2,797 | $ | 5,188 | $ | 6,289 | ||||||||
Depreciation & Amortization
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$ | 1,773 | $ | 1,679 | $ | 3,531 | $ | 3,331 |
December 30, 2012
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July 1, 2012
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(Unaudited)
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ASSETS
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Current Assets:
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Cash and Cash Equivalents
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$ | 18,569 | $ | 17,487 | ||||
Receivables, Net
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40,709 | 44,496 | ||||||
Inventories
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26,536 | 21,236 | ||||||
Other Current Assets
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16,195 | 18,072 | ||||||
Total Current Assets
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102,009 | 101,291 | ||||||
Deferred Income Taxes
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9,735 | 9,742 | ||||||
Investment in Joint Venture
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8,400 | 8,139 | ||||||
Other Long Term Assets
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486 | 536 | ||||||
Property, Plant and Equipment, Net
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48,285 | 46,330 | ||||||
$ | 168,915 | $ | 166,038 | |||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
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Current Liabilities:
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Accounts Payable
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$ | 22,483 | $ | 24,149 | ||||
Borrowings Under Line of Credit Facility
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2,250 | - | ||||||
Other
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30,723 | 32,824 | ||||||
Total Current Liabilities
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55,456 | 56,973 | ||||||
Accrued Pension and Post Retirement Obligations
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21,155 | 21,667 | ||||||
Shareholders’ Equity
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256,524 | 252,280 | ||||||
Accumulated Other Comprehensive Loss
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(35,087 | ) | (35,757 | ) | ||||
Less: Treasury Stock
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(135,955 | ) | (135,971 | ) | ||||
Total STRATTEC SECURITY CORPORATION Shareholders’ Equity
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85,482 | 80,552 | ||||||
Non-Controlling Interest
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6,822 | 6,846 | ||||||
Total Shareholders’ Equity
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92,304 | 87,398 | ||||||
$ | 168,915 | $ | 166,038 |
Second Quarter Ended
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Six Months Ended
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December 30, 2012
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January 1, 2012
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December 30, 2012
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January 1, 2012
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Cash Flows from Operating Activities:
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Net Income
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$ | 2,840 | $ | 2,304 | $ | 6,155 | $ | 4,277 | ||||||||
Adjustment to Reconcile Net Income to
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Cash Provided by Operating Activities:
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Equity Loss in VAST LLC Joint Venture
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99 | 192 | 111 | 312 | ||||||||||||
Depreciation and Amortization
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1,773 | 1,679 | 3,531 | 3,331 | ||||||||||||
Foreign Currency Transaction (Gain) Loss
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(142 | ) | 94 | 313 | (1,605 | ) | ||||||||||
Unrealized (Gain) Loss on Foreign Currency Option
Contracts
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(38 | ) | (589 | ) | (349 | ) | 1,716 | |||||||||
Stock Based Compensation Expense
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394 | 197 | 470 | 371 | ||||||||||||
Change in Operating Assets/Liabilities
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(622 | ) | 1,541 | (4,194 | ) | (3,208 | ) | |||||||||
Other, net
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(31 | ) | - | (61 | ) | 16 | ||||||||||
Net Cash Provided by Operating Activities
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4,273 | 5,418 | 5,976 | 5,210 | ||||||||||||
Cash Flows from Investing Activities:
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Investment in Joint Ventures
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- | (200 | ) | (200 | ) | (200 | ) | |||||||||
Additions to Property, Plant and Equipment
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(2,477 | ) | (2,797 | ) | (5,188 | ) | (6,289 | ) | ||||||||
Proceeds from Sale of Property and Equipment
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31 | - | 61 | - | ||||||||||||
Net Cash Used in Investing Activities
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(2,446 | ) | (2,997 | ) | (5,327 | ) | (6,489 | ) | ||||||||
Cash Flow from Financing Activities:
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Borrowings on Line of Credit Facility
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750 | - | 2,250 | - | ||||||||||||
Dividends Paid to Non-Controlling Interest of Subsidiary | - | - | (1,131 | ) | - | |||||||||||
Dividends Paid
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(352 | ) | (335 | ) | (688 | ) | (670 | ) | ||||||||
Repayment of Loan to Related Parties
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- | (450 | ) | - | (850 | ) | ||||||||||
Exercise of Stock Options and Employee Stock Purchases
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52 | 48 | 71 | 64 | ||||||||||||
Net Cash Provided by (Used in) Financing Activities
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450 | (737 | ) | 502 | (1,456 | ) | ||||||||||
Effect of Foreign Currency Fluctuations on Cash
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18 | (109 | ) | (69 | ) | 248 | ||||||||||
Net Increase (Decrease) in Cash & Cash Equivalents
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2,295 | 1,575 | 1,082 | (2,487 | ) | |||||||||||
Cash and Cash Equivalents:
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Beginning of Period
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16,274 | 13,188 | 17,487 | 17,250 | ||||||||||||
End of Period
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$ | 18,569 | $ | 14,763 | $ | 18,569 | $ | 14,763 |