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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Three Months Ended | ||||||||
September 27, 2015 | September 28, 2014 | |||||||
Fiat Chrysler Automobiles
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$ | 28,528 | $ | 31,996 | ||||
General Motors Company
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18,789 | 44,949 | ||||||
Ford Motor Company
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13,616 | 11,808 | ||||||
Tier 1 Customers
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17,682 | 16,974 | ||||||
Commercial and Other OEM Customers
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10,987 | 9,072 | ||||||
Hyundai / Kia
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6,911 | 7,443 | ||||||
TOTAL
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$ | 96,513 | $ | 122,242 | ||||
September 27, 2015 | September 28, 2014 | |||||
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||||||
Equity Earnings of VAST LLC Joint Venture | $ | 133 | $ | 376 | ||
Equity Loss of STRATTEC Advanced Logic LLC Joint Venture
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(426 | ) | (186) | |||
Foreign Currency Transaction Gain
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957 | 786 | ||||
Unrealized Loss on Peso Forward Contracts
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(896 | ) | - | |||
Other
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(93 | ) | 2 | |||
$ | (325 | ) | $ | 978 | ||
First Quarter Ended | ||||||||
September 27, 2015 | September 28, 2014 | |||||||
Net Sales
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$ | 96,513 | $ | 122,242 | ||||
Cost of Goods Sold
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80,014 | 94,185 | ||||||
Gross Profit
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16,499 | 28,057 | ||||||
Engineering, Selling &
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||||||||
Administrative Expenses
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10,574 | 13,187 | ||||||
Income from Operations
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5,925 | 14,870 | ||||||
Interest Income
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7 | 22 | ||||||
Interest Expense
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(21 | ) | (11 | ) | ||||
Other (Expense) Income, Net
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(325 | ) | 978 | |||||
Income before Provision for Income
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||||||||
Taxes and Non-Controlling Interest
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5,586 | 15,859 | ||||||
Provision for Income Taxes
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1,754 | 5,519 | ||||||
Net Income
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3,832 | 10,340 | ||||||
Net Income Attributable
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||||||||
to Non-Controlling Interest
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(559 | ) | (1,040 | ) | ||||
Net Income Attributable
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||||||||
to STRATTEC SECURITY CORP.
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$ | 3,273 | $ | 9,300 | ||||
Earnings Per Share:
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||||||||
Basic
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$ | 0.92 | $ | 2.63 | ||||
Diluted
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$ | 0.90 | $ | 2.55 | ||||
Average Basic
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||||||||
Shares Outstanding
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3,543 | 3,497 | ||||||
Average Diluted
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||||||||
Shares Outstanding
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3,617 | 3,593 | ||||||
Other
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||||||||
Capital Expenditures
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$ | 3,865 | $ | 6,963 | ||||
Depreciation & Amortization
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$ | 2,396 | $ | 2,112 |
September 27, 2015 | June 28, 2015 | |||||||
(Unaudited) | ||||||||
ASSETS
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||||||||
Current Assets:
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||||||||
Cash and cash equivalents
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$ | 19,967 | $ | 25,695 | ||||
Receivables, net
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56,701 | 58,807 | ||||||
Inventories, net
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42,012 | 34,786 | ||||||
Other current assets
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18,468 | 18,873 | ||||||
Total Current Assets
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137,148 | 138,161 | ||||||
Investment in Joint Ventures
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14,936 | 15,326 | ||||||
Other Long Term Assets
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10,930 | 10,816 | ||||||
Property, Plant and Equipment, Net
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71,614 | 71,126 | ||||||
$ | 234,628 | $ | 235,429 | |||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
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||||||||
Current Liabilities:
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||||||||
Accounts Payable
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$ | 34,050 | $ | 27,838 | ||||
Other
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33,137 | 36,897 | ||||||
Total Current Liabilities
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67,187 | 64,735 | ||||||
Accrued Pension and Post Retirement Obligations
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2,932 | 2,988 | ||||||
Borrowings Under Credit Facility
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6,500 | 10,000 | ||||||
Deferred Income Taxes
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4,574 | 4,595 | ||||||
Other Long-term Liabilities
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757 | 710 | ||||||
Shareholders’ Equity
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306,857 | 303,073 | ||||||
Accumulated Other Comprehensive Loss
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(29,203 | ) | (26,859 | ) | ||||
Less: Treasury Stock
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(135,897 | ) | (135,902 | ) | ||||
Total STRATTEC SECURITY
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||||||||
CORPORATION Shareholders’ Equity
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141,757 | 140,312 | ||||||
Non-Controlling Interest
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10,921 | 12,089 | ||||||
Total Shareholders’ Equity
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152,678 | 152,401 | ||||||
$ | 234,628 | $ | 235,429 |
First Quarter Ended | ||||||||
September 27, 2015 | September 28, 2014 | |||||||
Cash Flows from Operating Activities:
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Net Income
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$ | 3,832 | $ | 10,340 | ||||
Adjustment to Reconcile Net Income to Net
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||||||||
Cash Provided by Operating Activities:
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||||||||
Depreciation and Amortization
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2,396 | 2,112 | ||||||
Equity Loss (Earnings) in Joint Ventures
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293 | (190 | ) | |||||
Foreign Currency Transaction Gain
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(957 | ) | (786 | ) | ||||
Unrealized Loss Peso Forward Contracts
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896 | - | ||||||
Stock Based Compensation Expense
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498 | 389 | ||||||
Change in Operating Assets/Liabilities
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(2,982 | ) | (2,755 | ) | ||||
Other, net
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35 | 125 | ||||||
Net Cash Provided by Operating Activities
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4,011 | 9,235 | ||||||
Cash Flows from Investing Activities:
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||||||||
Loan to Joint Ventures
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(150 | ) | (215 | ) | ||||
Additions to Property, Plant and Equipment
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(3,865 | ) | (6,963 | ) | ||||
Net Cash Used in Investing Activities
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(4,015 | ) | (7,178 | ) | ||||
Cash Flow from Financing Activities:
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||||||||
Borrowings on Credit Facility
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1,000 | 1,500 | ||||||
Repayment of Borrowings Under Credit Facility
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(4,500 | ) | - | |||||
Dividends Paid to Non-Controlling Interest of Subsidiaries
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(1,568 | ) | (882 | ) | ||||
Dividends Paid
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(466 | ) | (427 | ) | ||||
Exercise of Stock Options and Employee
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||||||||
Stock Purchases
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483 | 440 | ||||||
Net Cash (Used in) Provided by Financing Activities
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(5,051 | ) | 631 | |||||
Foreign Currency Impact on Cash
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(673 | ) | 101 | |||||
Net (Decrease) Increase in Cash & Cash Equivalents
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(5,728 | ) | 2,789 | |||||
Cash and Cash Equivalents:
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||||||||
Beginning of Period
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25,695 | 19,756 | ||||||
End of Period
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$ | 19,967 | $ | 22,545 |