STRATTEC Reports Record Fiscal First Quarter Results
13 October 2000
STRATTEC SECURITY CORPORATION Reports Record Fiscal First Quarter Results
MILWAUKEE, Oct. 12 STRATTEC SECURITY CORPORATION today reported record sales
and operating results for the fiscal first quarter ended October 1, 2000.
Net sales for the three months ended October 1, 2000 were $52.4 million,
an increase of 5 percent compared to net sales of $49.7 million for the three
months ended September 26, 1999. Net income was $3.9 million, compared to
$3.7 million in the prior year quarter. Diluted earnings per share for the
three months ended October 1, 2000, were $.85 compared to $.65 in the prior
year quarter, an increase of 31 percent.
Sales to STRATTEC's largest customers overall increased in the current
quarter compared to the prior year levels, with Mitsubishi Motor Manufacturing
of America, Inc. increasing 95%, and DaimlerChrysler Corporation 7%. Sales to
General Motors Corporation, Delphi Automotive Systems Corporation and Ford
Motor Company were flat with the prior year quarter. The impact of the
Firestone tire recall on Ford Explorer and Ranger pickup truck production
during this year's quarter reduced sales to the Ford Motor Company by an
estimated $500,000. However, product mix and content changes for the
remainder of the Ford Motor Company products we supply helped offset this
reduction. Sales to our Industrial & Service Products customers increased,
primarily with sales of our new Vehicle Access Control Systems (VACS) product
into the delivery van market.
Gross profit margins were 21.6 percent in the current quarter compared to
21.5 percent in the prior year quarter. Gross profit margins were comparable
with the prior year quarter, despite the impact of higher raw material costs,
primarily zinc, as well as continued wage inflation in Mexico combined with an
unfavorable Mexico Peso to U.S. dollar exchange rate.
Operating expenses were $5.0 million in the current quarter, compared to
$4.9 million in the prior year quarter.
Harold M. Stratton II, Chairman of the Board and Chief Executive Officer,
commented: "Despite the impact of the Firestone Tire recall on our sales to
Ford, and the general slow-down in the U.S. economy, we were fortunate to be
able to avoid the earnings declines many supplier's in our industry
experienced this quarter. Overall, we are very pleased with our first quarter
operating results."
STRATTEC SECURITY CORPORATION
Results of Operations
(In Thousands except per share amounts)
First Quarter Ended
October 1, 2000 September 26, 1999
(Unaudited)
Net Sales $52,421 $49,667
Cost of Goods Sold 41,083 38,979
Gross Profit 11,338 10,688
Engineering, Selling &
Administrative Expenses 5,033 4,888
Income from Operations 6,305 5,800
Interest Income 193 388
Other Income (Expense), Net (187) (108)
6,311 6,080
Provision for Income Taxes 2,430 2,372
Net Income $3,881 $3,708
Earnings Per Share:
Basic $.87 $.67
Diluted $.85 $.65
Average Basic
Shares Outstanding 4,479 5,511
Average Diluted
Shares Outstanding 4,582 5,671
STRATTEC SECURITY CORPORATION
Condensed Balance Sheet Data
(In Thousands)
October 1, 2000 July 2, 2000
ASSETS (Unaudited)
Current Assets:
Cash and cash equivalents $13,847 $13,915
Receivables, Net 29,174 28,731
Inventories 17,846 14,342
Other current assets 6,543 9,613
Total Current Assets 67,410 66,601
Property, Plant and Equipment, Net 41,953 42,381
$109,363 $108,982
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts Payable $18,311 $19,694
Other 11,355 14,407
Total Current Liabilities 29,666 34,101
Deferred Income Taxes 299 299
Borrowings Under Revolving Credit Facility -- --
Accrued Pension and Post Retirement
Obligations 14,455 14,132
Shareholders' Equity 118,190 113,710
Less: Treasury Stock (53,247) (53,260)
Total Shareholders' Equity 64,943 60,450
$109,363 $108,982