STRATTEC SECURITY CORPORATION
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(Exact name of registrant as specified in 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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March 30, 2014
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March 31, 2013
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Chrysler Group LLC
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$ | 29,180 | $ | 22,854 | ||||
General Motors Company
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18,221 | 14,063 | ||||||
Ford Motor Company
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11,707 | 12,325 | ||||||
Tier 1 Customers
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14,968 | 13,930 | ||||||
Commercial and Other OEM Customers
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9,947 | 8,897 | ||||||
Hyundai / Kia
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1,255 | 2,589 | ||||||
TOTAL
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$ | 85,278 | $ | 74,658 |
March 30,
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March 31,
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|||||||
2014
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2013
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|||||||
Foreign Currency Transaction Gain (Loss)
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$ | 36 | $ | (987 | ) | |||
Net Realized and Unrealized Gain on Mexican Peso
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Option Contracts
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- | 77 | ||||||
Rabbi Trust Gain
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27 | 103 | ||||||
Other
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8 | 48 | ||||||
$ | 71 | $ | (759 | ) |
Third Quarter Ended
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Nine Months Ended
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March 30, 2014
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March 31, 2013
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March 30, 2014
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March 31, 2013
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Net Sales
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$ | 85,278 | $ | 74,658 | $ | 246,357 | $ | 217,708 | ||||||||
Cost of Goods Sold
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70,386 | 61,437 | 201,007 | 178,467 | ||||||||||||
Gross Profit
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14,892 | 13,221 | 45,350 | 39,241 | ||||||||||||
Engineering, Selling &
Administrative Expenses |
9,757 | 8,025 | 28,477 | 25,626 | ||||||||||||
Loss on Settlement of
Pension Obligation |
- | 2,144 | - | 2,144 | ||||||||||||
Income from Operations
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5,135 | 3,052 | 16,873 | 11, 471 | ||||||||||||
Interest Income
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37 | 3 | 64 | 16 | ||||||||||||
Equity Earnings (Loss) in
Joint Ventures |
267 | (291 | ) | 858 | (402 | ) | ||||||||||
Interest Expense
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(8 | ) | (10 | ) | (37 | ) | (25 | ) | ||||||||
Other Income (Expense), Net
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71 | (759 | ) | 296 | (590 | ) | ||||||||||
Income before Provision for Income
Taxes and Non-Controlling Interest |
5,502 | 1,995 | 18,054 | 10,470 | ||||||||||||
Provision for Income Taxes
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1,285 | 557 | 5,302 | 2,877 | ||||||||||||
Net Income
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4,217 | 1,438 | 12,752 | 7,593 | ||||||||||||
Net Income Attributable
to Non-Controlling Interest |
(616 | ) | (344 | ) | (2,067 | ) | (1,435 | ) | ||||||||
Net Income Attributable to
STRATTEC SECURITY CORPORATION |
$ | 3,601 | $ | 1,094 | $ | 10,685 | $ | 6,158 | ||||||||
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Earnings Per Share:
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Basic
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$ | 1.03 | $ | 0.32 | $ | 3.07 | $ | 1.82 | ||||||||
Diluted
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$ | 1.00 | $ | 0.32 | $ | 3.00 | $ | 1.80 | ||||||||
Average Basic
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Shares Outstanding
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3,443 | 3,327 | 3,413 | 3,318 | ||||||||||||
Average Diluted
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Shares Outstanding
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3,534 | 3,389 | 3,494 | 3,361 | ||||||||||||
Other
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Capital Expenditures
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$ | 2,931 | $ | 2,617 | $ | 9,381 | $ | 7,805 | ||||||||
Depreciation & Amortization
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$ | 2,046 | $ | 1,843 | $ | 6,213 | $ | 5,374 |
March 30, 2014
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June 30, 2013
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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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$ | 20,494 | $ | 20,307 | ||||
Receivables, net
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54,448 | 47,514 | ||||||
Inventories, net
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28,646 | 24,312 | ||||||
Other current assets
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16,069 | 14,366 | ||||||
Total Current Assets
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119,657 | 106,499 | ||||||
Investment in Joint Ventures
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9,981 | 9,166 | ||||||
Other Long-term Assets
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7,682 | 2,420 | ||||||
Property, Plant and Equipment, Net
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54,393 | 51,415 | ||||||
$ | 191,713 | $ | 169,500 | |||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
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Current Liabilities:
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Accounts Payable
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$ | 29,916 | $ | 25,543 | ||||
Borrowings Under Credit Facility
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2,500 | 2,250 | ||||||
Other
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25,738 | 22,932 | ||||||
Total Current Liabilities
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58,154 | 50,725 | ||||||
Accrued Pension and Post Retirement Obligations
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4,018 | 4,181 | ||||||
Deferred Income Taxes
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1,355 | 1,009 | ||||||
Other Long-term Liabilities
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1,333 | 1,705 | ||||||
Shareholders’ Equity
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275,203 | 262,368 | ||||||
Accumulated Other Comprehensive Loss
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(21,159 | ) | (22,212 | ) | ||||
Less: Treasury Stock
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(135,924 | ) | (135,938 | ) | ||||
Total STRATTEC SECURITY
CORPORATION Shareholders’ Equity |
118,120 | 104,218 | ||||||
Non-Controlling Interest
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8,733 | 7,662 | ||||||
Total Shareholders’ Equity
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126,853 | 111,880 | ||||||
$ | 191,713 | $ | 169,500 |
Third Quarter Ended
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Nine Months Ended
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March 30, 2014
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March 31, 2013
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March 30, 2014
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March 31, 2013
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Cash Flows from Operating Activities:
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Net Income
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$ | 4,217 | $ | 1,438 | $ | 12,752 | $ | 7,593 | ||||||||
Adjustment to Reconcile Net Income to
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Cash Provided by Operating Activities:
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Equity (Earnings) Loss in Joint Ventures
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(267 | ) | 291 | (858 | ) | 402 | ||||||||||
Depreciation and Amortization
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2,046 | 1,843 | 6,213 | 5,374 | ||||||||||||
Foreign Currency Transaction (Gain) Loss
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(36 | ) | 987 | (74 | ) | 1,300 | ||||||||||
Unrealized (Gain) Loss Foreign Currency Option
Contracts
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- | (75 | ) | - | (424 | ) | ||||||||||
Stock Based Compensation Expense
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250 | 286 | 880 | 756 | ||||||||||||
Loss on Settlement of Pension Obligation
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- | 2,144 | - | 2,144 | ||||||||||||
Change in Operating Assets/Liabilities
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(3,705 | ) | (5,094 | ) | (9,715 | ) | (9,288 | ) | ||||||||
Other, net
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40 | 133 | 114 | 72 | ||||||||||||
Net Cash Provided by Operating Activities
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2,545 | 1,953 | 9,312 | 7,929 | ||||||||||||
Cash Flows from Investing Activities:
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Investment in Joint Ventures
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- | - | - | (200 | ) | |||||||||||
Additions to Property, Plant and Equipment
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(2,931 | ) | (2,617 | ) | (9,381 | ) | (7,805 | ) | ||||||||
Proceeds from Sale of Property, Plant and
Equipment
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25 | 25 | 46 | 86 | ||||||||||||
Other | (285 | ) | - | (285 | ) | - | ||||||||||
Net Cash Used in Investing Activities
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(3,191 | ) | (2,592 | ) | (9,620 | ) | (7,919 | ) | ||||||||
Cash Flows from Financing Activities:
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Borrowings Under Credit Facility
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500 | 250 | 1,250 | 2,500 | ||||||||||||
Repayment of Borrowings Under Credit Facility
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(1,000 | ) | (1,000 | ) | (1,000 | ) | (1,000 | ) | ||||||||
Dividends Paid to Non-Controlling
Interests of Subsidiaries |
- | (200 | ) | (984 | ) | (1,331 | ) | |||||||||
Dividends Paid
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(388 | ) | (664 | ) | (1,152 | ) | (1,352 | ) | ||||||||
Exercise of Stock Options and Employee Stock
Purchases
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1,639 | 259 | 2,428 | 330 | ||||||||||||
Net Cash Provided by (Used in) Financing Activities
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751 | (1,355 | ) | 542 | (853 | ) | ||||||||||
Effect of Foreign Currency Fluctuations on Cash
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1 | (320 | ) | (47 | ) | (389 | ) | |||||||||
Net Increase (Decrease) in Cash & Cash Equivalents
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106 | (2,314 | ) | 187 | (1,232 | ) | ||||||||||
Cash and Cash Equivalents:
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Beginning of Period
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20,388 | 18,569 | 20,307 | 17,487 | ||||||||||||
End of Period
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$ | 20,494 | $ | 16,255 | $ | 20,494 | $ | 16,255 |