Strattec Security Corporation Reports Record Fiscal First Quarter Results
8 October 1999
Strattec Security Corporation Reports Record Fiscal First Quarter Results
MILWAUKEE, Oct. 7 -- STRATTEC SECURITY CORPORATION
today reported record sales and operating results for the
fiscal first quarter ended September 26, 1999.
Net sales for the three months ended September 26, 1999 were
$49.7 million, an increase of 23 percent compared to net sales of
$40.4 million for the three months ended September 27, 1998. Net income was
$3.7 million, compared to $2.8 million in the prior year quarter. Diluted
earnings per share for the three months ended September 26, 1999, were $.65
compared to $.48 in the prior year quarter, an increase of 35 percent.
Sales to STRATTEC's largest customers increased in the current quarter
compared to the prior year levels, with General Motors Corporation and Delphi
Automotive Systems Corporation increasing 42 percent, DaimlerChrysler
Corporation increasing 18 percent and Ford Motor Company increasing 6 percent.
This sales growth was primarily due to a combination of higher value
mechanical and electro-mechanical content, and increased production volumes.
In addition, labor disruptions at General Motors Corporation during July, 1998
reduced sales to this customer by an estimated $4.4 million during the prior
year quarter.
Gross profit margins were 21.5 percent in the current quarter compared to
21.9 percent in the prior year quarter. Operating expenses were $4.9 million
in the current quarter, compared to $4.7 million in the prior year quarter.
Between the start of this fiscal year and September 30, 1999, 290,000
shares were repurchased under the Company's stock repurchase program at a cost
of approximately $10.0 million.
Harold M. Stratton II, Chairman of the Board and Chief Executive Officer,
commented: "As demonstrated by our first quarter results, we experienced an
unusually strong start to our new fiscal year. Contrary to the normal
pattern, all of our major customers operated at high levels of production
during the late summer, despite downtime for vacations and model change-over.
Obviously, this had a positive impact on us. Assuming continuation of the
strong demand for vehicles currently being experienced by the automotive
industry, we anticipate maintaining our positive momentum for the rest of the
fiscal year."
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, in particular, relating to
the automotive industry, consumer demand for the Company's and its customers
products, competitive and technological developments, foreign currency
fluctuations, Year 2000 compliance issues and costs of operations.
Shareholders, potential investors and other readers are urged to consider
these factors carefully in evaluating the forward-looking statements and are
cautioned not to place undue reliance on such forward-looking statements. The
forward-looking statements made herein are only made as of the date of this
press release and the company undertakes no obligation to publicly update such
forward-looking statements to reflect subsequent events or circumstances. In
addition, 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)
Three Months Ended
September 26, 1999 September 27, 1998
(Unaudited)
Net Sales $49,667 $40,362
Cost of Goods Sold 38,979 31,527
Gross Profit 10,688 8,835
Engineering, Selling &
Administrative Expenses 4,888 4,686
Income from Operations 5,800 4,149
Interest Income 388 244
Other Income (Expense), Net (108) 72
6,080 4,465
Provision for Income Taxes 2,372 1,652
Net Income $ 3,708 $ 2,813
Earnings Per Share:
Basic $ .67 $ .49
Diluted $ .65 $ .48
Average Basic
Shares Outstanding 5,511 5,701
Average Diluted
Shares Outstanding 5,671 5,860
Balance Sheet Data
(In Thousands)
September 26, 1999 September 27, 1998
(Unaudited)
Cash and Cash Equivalents $25,900 $10,600
Accounts Receivable, Net 31,500 29,100
Inventories 15,700 15,000
Debt -- --
Shareholders' Equity 82,100 70,100