Strattec Security Corporation Reports Fiscal Third Quarter Results
16 April 1999
STRATTEC SECURITY CORPORATION Reports Fiscal Third Quarter Results
MILWAUKEE, April 15 -- STRATTEC SECURITY CORPORATION
today reported operating results for its fiscal third quarter
and nine months ending March 28, 1999.
Net sales for the three months ended March 28, 1999 were $51.2 million, an
increase of 8 percent compared to net sales of $47.4 million for the three
months ended March 29, 1998. Net income was $4.5 million, compared to
$3.8 million in the prior year quarter, an increase of over 18%. Diluted
earnings per share for the three months ended March 28, 1999, were $.77
compared to $.65 in the prior year quarter.
For the nine months ended March 28, 1999, net sales were $146.1 million,
an increase of 4 percent compared to net sales of $140.0 million in the prior
year period. Net income was $11.9 million, an increase of 23 percent compared
to $9.7 million, and diluted earnings per share were $2.06 compared to $1.65.
Sales to all three of STRATTEC's largest customers increased in the
current quarter compared to the prior year levels, with General Motors
Corporation increasing 5 percent, DaimlerChrysler Corporation increasing
20 percent and Ford Motor Company increasing 19 percent. This sales growth
was primarily due to a combination of higher value mechanical and
electro-mechanical content, and increased production volumes.
Gross profit margins were 23.6 percent in the current quarter compared to
22.4 percent in the prior year quarter. Operating expenses were $5.1 million
in the current quarter, compared to $4.7 million in the prior year quarter.
During the March 1999 quarter 6,500 shares were repurchased under the
Company's stock repurchase program at a cost of approximately $198,000.
Harold M. Stratton II, Chairman and Chief Executive Officer, commented,
"Our strong profitability in the March quarter reflects sales growth from
content expansion and continued improvement in operating margins. With North
American vehicle production continuing at surprisingly robust levels, we
expect our strong sales activity to continue at the current level in the
fourth quarter. Consequently, we are looking forward to a strong finish to
our fiscal year in June."
STRATTEC SECURITY CORPORATION designs, develops, manufactures and markets
mechanical locks, electro-mechanical locks and related security products for
North American and select European automotive manufacturers.
Forward looking statements in this release are subject to many
uncertainties in the Company's operations and business environment. These
uncertainties include general economic conditions, demand for the Company's
products and costs of operations. Such uncertainties and other operational
matters are discussed further in the Company's quarterly and annual filings
with the Securities and Exchange Commission.
STRATTEC SECURITY CORPORATION
Results of Operations
(In thousands)
(Unaudited)
Three Months Ended Nine Months Ended
March 28, March 29, March 28, March 29,
1999 1998 1999 1998
Net Sales $51,220 $47,420 $146,111 $140,010
Cost of Goods Sold 39,149 36,797 112,832 110,757
Gross Profit 12,071 10,623 33,279 29,253
Engineering, Selling &
Administrative Expenses 5,078 4,672 14,794 14,060
Income from Operations 6,993 5,951 18,485 15,193
Interest Income 309 98 785 153
Interest Expense -- -- -- (19)
Other Income (Expense), Net (91) 41 (74) 26
7,211 6,090 19,196 15,353
Provision for Income Taxes 2,740 2,255 7,250 5,687
Net Income $4,471 $3,835 $11,946 $ 9,666
Earnings Per Share:
Basic $.79 $.67 $2.11 $1.69
Diluted $.77 $.65 $2.06 $1.65
Average Basic
Shares Outstanding 5,649 5,725 5,654 5,706
Average Diluted
Shares Outstanding 5,807 5,880 5,809 5,854
Balance Sheet Data
(In Thousands)
(Unaudited)
March 28, 1999 March 29, 1998
Cash and Cash Equivalents $21,100 $4,500
Accounts Receivable, Net 34,700 31,400
Inventories 16,100 14,200
Debt -- --
Shareholders' Equity 79,800 66,200