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 29, 2015
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March 30, 2014
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Chrysler Group LLC
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$ | 26,151 | $ | 29,180 | ||||
General Motors Company
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17,015 | 18,221 | ||||||
Ford Motor Company
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10,951 | 11,707 | ||||||
Tier 1 Customers
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18,637 | 14,968 | ||||||
Commercial and Other OEM Customers
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10,380 | 9,947 | ||||||
Hyundai / Kia
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5,683 | 1,255 | ||||||
TOTAL
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$ | 88,817 | $ | 85,278 |
March 29,
2015
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March 30,
2014
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Equity Earnings of VAST LLC Joint Venture
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$ | 301 | $ | 365 | ||||
Equity Loss of STRATTEC Advanced Logic
(formerly NextLock LLC)
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(508 | ) | (98 | ) | ||||
Foreign Currency Transaction Gain
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583 | 36 | ||||||
Rabbi Trust Gain
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44 | 27 | ||||||
Other
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71 | 8 | ||||||
$ | 491 | $ | 338 | |||||
Third Quarter Ended
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Nine Months Ended
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March 29, 2015
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March 30, 2014
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March 29, 2015
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March 30, 2014
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Net Sales
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$ | 88,817 | $ | 85,278 | $ | 313,049 | $ | 246,357 | ||||||||
Cost of Goods Sold
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73,066 | 70,386 | 250,789 | 201,007 | ||||||||||||
Gross Profit
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15,751 | 14,892 | 62,260 | 45,350 | ||||||||||||
Engineering, Selling & Administrative Expenses
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9,847 | 9,757 | 33,524 | 28,477 | ||||||||||||
Income from Operations
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5,904 | 5,135 | 28,736 | 16,873 | ||||||||||||
Interest Income
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61 | 37 | 126 | 64 | ||||||||||||
Interest Expense
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(17 | ) | (8 | ) | (39 | ) | (37 | ) | ||||||||
Other Income, Net
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491 | 338 | 3,171 | 1,154 | ||||||||||||
Income before Provision for Income
Taxes and Non-Controlling Interest
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6,439 | 5,502 | 31,994 | 18,054 | ||||||||||||
Provision for Income Taxes
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1,064 | 1,285 | 9,378 | 5,302 | ||||||||||||
Net Income
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5,375 | 4,217 | 22,616 | 12,752 | ||||||||||||
Net Income Attributable
to Non-Controlling Interest
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(999 | ) | (616 | ) | (3,162 | ) | (2,067 | ) | ||||||||
Net Income Attributable to
STRATTEC SECURITY
CORPORATION
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$ | 4,376 | $ | 3,601 | $ | 19,454 | $ | 10,685 | ||||||||
Earnings Per Share:
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Basic
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$ | 1.23 | $ | 1.03 | $ | 5.47 | $ | 3.07 | ||||||||
Diluted
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$ | 1.20 | $ | 1.00 | $ | 5.33 | $ | 3.00 | ||||||||
Average Basic
Shares Outstanding
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3,520 | 3,443 | 3,511 | 3,413 | ||||||||||||
Average Diluted
Shares Outstanding
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3,603 | 3,534 | 3,603 | 3,494 | ||||||||||||
Other
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Capital Expenditures
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$ | 4,696 | $ | 2,931 | $ | 21,651 | $ | 9,381 | ||||||||
Depreciation & Amortization
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$ | 2,206 | $ | 2,046 | $ | 6,467 | $ | 6,213 |
March 29, 2015
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June 29, 2014
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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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$ | 28,035 | $ | 19,756 | ||||
Receivables, net
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62,224 | 68,822 | ||||||
Inventories, net
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35,835 | 30,502 | ||||||
Other current assets
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14,546 | 16,559 | ||||||
Total Current Assets
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140,640 | 135,639 | ||||||
Investment in Joint Ventures
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10,865 | 9,977 | ||||||
Other Long Term Assets
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13,400 | 11,639 | ||||||
Property, Plant and Equipment, Net
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69,534 | 55,781 | ||||||
$ | 234,439 | $ | 213,036 | |||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
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Current Liabilities:
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Accounts Payable
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$ | 28,836 | $ | 36,053 | ||||
Other
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31,560 | 29,210 | ||||||
Total Current Liabilities
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60,396 | 65,263 | ||||||
Accrued Pension and Post Retirement Obligations
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3,487 | 3,842 | ||||||
Borrowings Under Credit Facility
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11,000 | 2,500 | ||||||
Deferred Income Taxes
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5,644 | 5,127 | ||||||
Other Long-term Liabilities
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207 | 1,401 | ||||||
Shareholders’ Equity
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301,534 | 281,623 | ||||||
Accumulated Other Comprehensive Loss
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(23,313 | ) | (20,198 | ) | ||||
Less: Treasury Stock
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(135,907 | ) | (135,919 | ) | ||||
Total STRATTEC SECURITY
CORPORATION Shareholders’ Equity
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142,314 | 125,506 | ||||||
Non-Controlling Interest
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11,391 | 9,397 | ||||||
Total Shareholders’ Equity
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153,705 | 134,903 | ||||||
$ | 234,439 | $ | 213,036 | |||||
Third Quarter Ended
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Nine Months Ended
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March 31, 2015
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March 30, 2014
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March 31, 2015
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March 30, 2014
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Cash Flows from Operating Activities:
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Net Income
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$ | 5,375 | $ | 4,217 | $ | 22,616 | $ | 12,752 | ||||||||
Adjustment 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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207 | (267 | ) | 138 | (858 | ) | ||||||||||
Depreciation and Amortization
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2,206 | 2,046 | 6,467 | 6,213 | ||||||||||||
Foreign Currency Transaction Gain
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(583 | ) | (36 | ) | (3,004 | ) | (74 | ) | ||||||||
Stock Based Compensation Expense
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313 | 250 | 1,013 | 880 | ||||||||||||
Change in Operating Assets/Liabilities
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(1,622 | ) | (3,705 | ) | (3,807 | ) | (9,715 | ) | ||||||||
Other, net
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15 | 40 | 172 | 114 | ||||||||||||
Net Cash Provided by Operating Activities
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5,911 | 2,545 | 23,595 | 9,312 | ||||||||||||
Cash Flows from Investing Activities:
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Investment in Joint Ventures
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- | - | (384 | ) | - | |||||||||||
Additions to Property, Plant and Equipment
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(4,696 | ) | (2,931 | ) | (21,651 | ) | (9,381 | ) | ||||||||
Proceeds from Sale of Property, Plant
and Equipment
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- | 25 | - | 46 | ||||||||||||
Other
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- | (285 | ) | (215 | ) | (285 | ) | |||||||||
Net Cash Used in Investing Activities
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(4,696 | ) | (3,191 | ) | (22,250 | ) | (9,620 | ) | ||||||||
Cash Flows from Financing Activities:
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Borrowings Under Credit Facility
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7,500 | 500 | 9,000 | 1,250 | ||||||||||||
Repayment of Borrowings Under Credit Facility
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- | (1,000 | ) | (500 | ) | (1,000 | ) | |||||||||
Dividends Paid to Non-Controlling
Interests of Subsidiaries
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- | - | (882 | ) | (984 | ) | ||||||||||
Dividends Paid
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(428 | ) | (388 | ) | (1,282 | ) | (1,152 | ) | ||||||||
Exercise of Stock Options and
Employee Stock Purchases
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20 | 1,639 | 734 | 2,428 | ||||||||||||
Net Cash Provided by Financing Activities
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7,092 | 751 | 7,070 | 542 | ||||||||||||
Effect of Foreign Currency Fluctuations on Cash
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(115 | ) | 1 | (136 | ) | (47 | ) | |||||||||
Net Increase in Cash & Cash Equivalents
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8,192 | 106 | 8,279 | 187 | ||||||||||||
Cash and Cash Equivalents:
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Beginning of Period
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19,843 | 20,388 | 19,756 | 20,307 | ||||||||||||
End of Period | $ | 28,035 | $ | 20,494 | $ | 28,035 | $ | 20,494 | ||||||||