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 | ||||||||
December 28, 2014 | December 29, 2013 | |||||||
Chrysler Group LLC
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$ | 32.8 | $ | 28.7 | ||||
General Motors Company
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23.7 | 16.0 | ||||||
Ford Motor Company
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11.6 | 11.3 | ||||||
Tier 1 Customers
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17.1 | 15.2 | ||||||
Commercial and Other OEM Customers
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8.9 | 8.6 | ||||||
Hyundai / Kia
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7.9 | 1.7 | ||||||
TOTAL
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$ | 102.0 | $ | 81.5 |
December 28,
2014
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December 29,
2013
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|||||||
Equity Earnings of VAST LLC Joint Venture
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$ | 142 | $ | 389 | ||||
Equity Loss of NextLock LLC Joint Venture
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(263 | ) | (92 | ) | ||||
Foreign Currency Transaction Gain (Loss)
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1,635 | (174 | ) | |||||
Other
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188 | 120 | ||||||
$ | 1,702 | $ | 243 |
Second Quarter Ended | Six Months Ended | |||||||||||||||
December 28, 2014 | December 29, 2013 | December 28, 2014 | December 29, 2013 | |||||||||||||
Net Sales
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$ | 101,990 | $ | 81,484 | $ | 224,232 | $ | 161,079 | ||||||||
Cost of Goods Sold
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83,538 | 65,541 | 177,723 | 130,621 | ||||||||||||
Gross Profit
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18,452 | 15,943 | 46,509 | 30,458 | ||||||||||||
Engineering, Selling & Administrative Expenses
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10,490 | 9,250 | 23,677 | 18,720 | ||||||||||||
Income from Operations
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7,962 | 6,693 | 22,832 | 11,738 | ||||||||||||
Interest Income
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43 | 21 | 65 | 27 | ||||||||||||
Interest Expense
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(11 | ) | (15 | ) | (22 | ) | (29 | ) | ||||||||
Other Income, Net
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1,702 | 243 | 2,680 | 816 | ||||||||||||
Income Before Provision for Income Taxes
and Non-Controlling Interest
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9,696 | 6,942 | 25,555 | 12,552 | ||||||||||||
Provision for Income Taxes
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2,795 | 2,261 | 8,314 | 4,017 | ||||||||||||
Net Income
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6,901 | 4,681 | 17,241 | 8,535 | ||||||||||||
Net Income Attributable to
Non-Controlling Interest
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(1,123 | ) | (808 | ) | (2,163 | ) | (1,451 | ) | ||||||||
Net Income Attributable to
STRATTEC SECURITY
CORPORATION
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$ | 5,778 | $ | 3,873 | $ | 15,078 | $ | 7,084 | ||||||||
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||||||||||||||||
Earnings Per Share:
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Basic
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$ | 1.62 | $ | 1.11 | $ | 4.25 | $ | 2.05 | ||||||||
Diluted
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$ | 1.58 | $ | 1.09 | $ | 4.13 | $ | 2.00 | ||||||||
Average Basic
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Shares Outstanding
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3,518 | 3,413 | 3,507 | 3,397 | ||||||||||||
Average Diluted
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||||||||||||||||
Shares Outstanding
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3,612 | 3,487 | 3,603 | 3,473 | ||||||||||||
Other
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Capital Expenditures
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$ | 9,992 | $ | 3,574 | $ | 16,955 | $ | 6,450 | ||||||||
Depreciation & Amortization
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$ | 2,149 | $ | 2,055 | $ | 4,261 | $ | 4,167 |
December 28, 2014
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June 29, 2014 | |||||||
ASSETS | (Unaudited) | |||||||
Current Assets:
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||||||||
Cash and cash equivalents
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$ | 19,843 | $ | 19,756 | ||||
Receivables, net
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61,537 | 68,822 | ||||||
Inventories, net
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38,893 | 30,502 | ||||||
Other current assets
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16,143 | 16,559 | ||||||
Total Current Assets
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136,416 | 135,639 | ||||||
Investment in Joint Ventures
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10,687 | 9,977 | ||||||
Other Long Term Assets
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12,862 | 11,639 | ||||||
Property, Plant and Equipment, Net
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67,275 | 55,781 | ||||||
$ | 227,240 | $ | 213,036 | |||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
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||||||||
Current Liabilities:
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||||||||
Accounts Payable
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$ | 33,179 | $ | 36,053 | ||||
Other
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31,151 | 29,210 | ||||||
Total Current Liabilities
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64,330 | 65,263 | ||||||
Accrued Pension and Post Retirement Obligations
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3,547 | 3,842 | ||||||
Borrowings Under Credit Facility
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3,500 | 2,500 | ||||||
Deferred Income Taxes
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5,184 | 5,127 | ||||||
Other Long-term Liabilities
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1,440 | 1,401 | ||||||
Shareholders’ Equity
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297,257 | 281,623 | ||||||
Accumulated Other Comprehensive Loss
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(22,562 | ) | (20,198 | ) | ||||
Less: Treasury Stock
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(135,912 | ) | (135,919 | ) | ||||
Total STRATTEC SECURITY
CORPORATION Shareholders’ Equity
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138,783 | 125,506 | ||||||
Non-Controlling Interest
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10,456 | 9,397 | ||||||
Total Shareholders’ Equity
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149,239 | 134,903 | ||||||
$ | 227,240 | $ | 213,036 |
Second Quarter Ended | Six Months Ended | |||||||||||||||
December 28, 2014 | December 29, 2013 | December 28, 2014 | December 29, 2013 | |||||||||||||
Cash Flows from Operating Activities:
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||||||||||||||||
Net Income
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$ | 6,901 | $ | 4,681 | $ | 17,241 | $ | 8,535 | ||||||||
Adjustments to Reconcile Net Income to
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Cash Provided by Operating Activities:
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||||||||||||||||
Equity Loss (Earnings) in Joint Ventures
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121 | (297 | ) | (69 | ) | (591 | ) | |||||||||
Depreciation and Amortization
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2,149 | 2,055 | 4,261 | 4,167 | ||||||||||||
Foreign Currency Transaction (Gain) Loss
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(1,635 | ) | 174 | (2,421 | ) | (38 | ) | |||||||||
Stock Based Compensation Expense
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311 | 276 | 700 | 630 | ||||||||||||
Change in Operating Assets/Liabilities
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570 | 4,030 | (2,185 | ) | (6,010 | ) | ||||||||||
Other, net
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32 | (12 | ) | 157 | 74 | |||||||||||
Net Cash Provided by Operating Activities
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8,449 | 10,907 | 17,684 | 6,767 | ||||||||||||
Cash Flows from Investing Activities:
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||||||||||||||||
Investment in Joint Ventures
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(384 | ) | - | (384 | ) | - | ||||||||||
Loan to Joint Venture
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- | - | (215 | ) | - | |||||||||||
Additions to Property, Plant and Equipment
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(9,992 | ) | (3,574 | ) | (16,955 | ) | (6,450 | ) | ||||||||
Proceeds from Sale of Property and Equipment
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- | 13 | - | 21 | ||||||||||||
Net Cash Used in Investing Activities
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(10,376 | ) | (3,561 | ) | (17,554 | ) | (6,429 | ) | ||||||||
Cash Flow from Financing Activities:
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||||||||||||||||
Borrowings on Line of Credit Facility
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- | - | 1,500 | 750 | ||||||||||||
Payments on Line of Credit Facility
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(500 | ) | - | (500 | ) | - | ||||||||||
Dividends Paid to Non-Controlling
Interest of Subsidiary
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- | - | (882 | ) | (984 | ) | ||||||||||
Dividends Paid
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(427 | ) | (384 | ) | (854 | ) | (764 | ) | ||||||||
Exercise of Stock Options and Employee
Stock Purchases
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274 | 691 | 714 | 789 | ||||||||||||
Net Cash (Used in) Provided by Financing Activities
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(653 | ) | 307 | (22 | ) | (209 | ) | |||||||||
Effect of Foreign Currency Fluctuations on Cash
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(122 | ) | (71 | ) | (21 | ) | (48 | ) | ||||||||
Net (Decrease) Increase in Cash & Cash Equivalents
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(2,702 | ) | 7,582 | 87 | 81 | |||||||||||
Cash and Cash Equivalents:
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Beginning of Period
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22,545 | 12,806 | 19,756 | 20,307 | ||||||||||||
End of Period
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$ | 19,843 | $ | 20,388 | $ | 19,843 | $ | 20,388 |