STRATTEC SECURITY CORPORATION (NASDAQ:STRT) today reported
operating results for the fiscal fourth quarter and full year ended
June 28, 2020. The fourth quarter operating results were
significantly impacted by the COVID-19 virus which is further
described in this press release.
Net sales for the Company’s fourth quarter ended
June 28, 2020 were $42.1 million, compared to net sales of $128.7
million for the fourth quarter ended June 30, 2019. Net loss for
the current year quarterly period was $10.5 million, compared to a
net loss of $62,000 in the prior year fourth quarter. Diluted loss
per share for the current year quarterly period was $2.80 compared
to diluted loss per share of $0.02 in the prior year quarter.
Both the current and prior fiscal year fourth
quarters had certain items that negatively impacted our operating
results. The higher net loss for the current year was primarily
attributed to our customers shutting down their assembly plant
operations during April and May relating to the COVID-19 pandemic
that reduced our net sales in the fiscal 2020 fourth quarter by
approximately $72 million. In addition, during our current year
fourth quarter, STRATTEC incurred an impairment charge related to
its one-third ownership interest in Vehicle Access Systems
Technology LLC (“VAST LLC”) related to VAST LLC’s joint venture
investment in India, Minda VAST Access Systems. STRATTEC’s one
third share of the $2 million non-cash impairment charge related to
this joint venture in India amounted to $667,000 on a pre-tax basis
or $510,000 on an after tax basis. STRATTEC’s share of the
impairment charge reduced its diluted earnings per share in the
current year fourth quarter by $0.14.
Additionally, the prior year fourth quarter was
impacted by a $4,195,000 non-cash compensation charge which was
partially offset by a pension settlement recovery of $556,000. The
two items net of tax, decreased net income by $2,784,000 and
diluted earnings per share by $0.75.
Full Year GAAP EarningsFor the
year ended June 28, 2020, the Company’s net sales were $385.3
million compared to net sales of $487.0 million in the prior year
period. During the current fiscal year the impact of a UAW strike
at General Motors Company during the first six months of the 2020
fiscal year reduced our net sales by approximately $10.0 million
and the COVID-19 pandemic also reduced our net sales by
approximately $78.0 million during the last six months of fiscal
year 2020. Net loss during the current year was $7.6 million
compared to a net loss of $17.0 million in the prior year period.
Diluted loss per share was $2.04 for the year ended June 28, 2020
compared to diluted loss per share of $4.63 during the prior year
ended June 30, 2019.
Full Year Non-GAAP
EarningsDuring the fiscal year ended June 28, 2020, a
pre-tax non-cash compensation expense charge of $4.8 million
reduced the Company’s diluted earnings per share by $0.99 or $3.7
million, on an after tax basis. Additionally, as noted above,
STRATTEC’s share of the VAST LLC non-cash impairment charge of
$667,000 ($510,000 after tax) reduced the Company’s diluted
earnings per share by $0.14. Without these two non-cash charges,
adjusted diluted loss per share for the current year ended June 28,
2020 would have been $0.91.
During the prior year ended June 30, 2019, the
Company completed a substantial portion of terminating the STRATTEC
Pension Plan that was previously frozen on December 31, 2009. As a
result of those actions, a non-cash pre-tax pension settlement
charge of $31.9 million and a non-cash compensation charge of $4.2
million were recorded that on a combined basis reduced diluted
earnings per share by $7.47 or $27.6 million, on an after tax
basis. Without these pension settlement and compensation charges
and a favorable tax adjustment ($0.10 per share) related to “Tax
Reform 2017” , adjusted diluted earnings per share for the prior
year ended June 30, 2019 would have been $2.74.
For further information on adjusted or non-GAAP
numbers included in this release, see the Non-GAAP to GAAP
reconciliation tables, along with the explanatory note following
the table, included later on in this release.
Net sales to each of our customers or customer
groups in the current year quarter and prior year quarter were as
follows (in thousands):
|
|
Three Months Ended |
|
|
June 28, 2020 |
|
|
June 30, 2019 |
|
|
|
|
|
|
Fiat Chrysler Automobiles |
$ |
6,324 |
|
$ |
29,479 |
General Motors Company |
|
11,588 |
|
|
32,606 |
Ford Motor Company |
|
6,139 |
|
|
15,754 |
Tier 1 Customers |
|
5,982 |
|
|
18,816 |
Commercial and Other OEM Customers |
|
8,910 |
|
|
24,344 |
Hyundai / Kia |
|
3,174 |
|
|
7,703 |
TOTAL |
$ |
42,117 |
|
$ |
128,704 |
During the latter part of March 2020 our OEM
customers started reducing production schedules and then fully
closed their assembly plants in April and May 2020 due to the
Coronavirus (COVID-19) pandemic. The impact of these reductions
reduced our net sales in the current year quarter by approximately
$72.0 million dollars. Sales to all customer groups in the current
year quarter in comparison to the prior year quarter were
significantly lower due to the COVID-19 virus.
Gross profit margins were negative 18.5 percent
in the current year quarter compared to 11.0 percent (or adjusted
13.0 percent) in the prior year quarter. The decrease in gross
profit margin in the current year quarter compared to the prior
year quarter was primarily attributed to temporarily shutting down
our operations both at our Milwaukee and Mexico production
facilities due to the COVID-19 virus that reduced net sales by
approximately $72 million in our fiscal 2020 fourth quarter in
comparison to the prior year quarter.
Engineering, Selling and Administrative expenses
overall were lower in the current year quarter as compared to the
prior year quarter. The decrease in overall operating expense
spending in the current year quarter was primarily due to lower
outside expenditures on new product development costs, a ten
percent reduction in the salaried work force, temporary reduction
in hours worked, and reductions in various other operating costs,
many of which were implemented as cost saving measures to address
the impact of the COVID-19 pandemic on our reduced sales
levels.
Included in Other Income, Net in the current
year quarter compared to the prior year quarter were the following
items (in thousands of dollars):
|
|
June 28, 2020 |
|
|
June 30, 2019 |
|
|
|
|
|
|
|
|
(Loss) Equity Earnings of VAST LLC Joint Venture |
$ |
(601 |
) |
|
$ |
228 |
|
Equity Earnings SAL Joint Venture |
|
337 |
|
|
|
104 |
|
Gain on Rabbi Trust |
|
363 |
|
|
|
90 |
|
Net Foreign Currency Realized and |
|
|
|
|
|
|
|
Unrealized Transaction Gain (Loss) |
|
65 |
|
|
|
(72 |
) |
Other Income (Expense) |
|
265 |
|
|
|
(57 |
) |
|
$ |
429 |
|
|
$ |
293 |
|
The lower profitability at our VAST LLC operations during the
current quarter related primarily to our one third share of the
impairment charge or $667,000 relating to our Minda VAST Access
Systems joint venture previously discussed. In addition, our VAST
China and Minda VAST Access Systems Operations were impacted by the
COVID -19 virus with lower sales and profitability during the
current quarter in comparison to the prior year quarter.
Frank Krejci, President & CEO commented: “ Despite the
unusual challenges of this last quarter and entire fiscal year, I
am pleased with the team efforts and improvements made in cost
efficiencies both before and during the dramatic impact of COVID
shutdown.
In response to the COVID pandemic, our Mexican operations were
completely shut down by the Mexican government in April and May and
substantially reduced our operating capacity in June and through
today. We reacted quickly at the beginning of the current quarter
by temporarily laying off our Milwaukee and Mexico plant workforce.
In addition, our U.S. salaried workforce was permanently reduced by
10% and the remaining salaried workforce taking temporary wage
reductions of 10% with greater reductions by the executive team. We
also reduced our capital spending and temporarily suspended our
quarterly cash dividend to preserve cash. While working remotely,
our team was able to keep our new customer projects on track in
order to meet their timing for new product launches primarily in
September and later during the year.
Our new products are often used on Truck and SUV vehicle
segments that are currently growing faster than the overall market.
In addition, newly launched business often reflects higher content
per vehicle. During the quarter, we intentionally built inventory
when possible as we anticipated facing the welcomed challenges of
meeting strong customer orders during the months of July and August
2020 resulting from product mix and customers replenishing dealer
inventories.
Over the year, we have significantly reduced risk for these
uncertain times by strengthening our balance sheet. Debt has been
reduced to a very manageable level. We also no longer carry
financial risk of the pension plan liabilities by completing the
full Plan termination during fiscal year 2020”.
Contact: Pat HansenSenior Vice President andChief Financial
Officer414-247-3435www.strattec.com
STRATTEC SECURITY CORPORATION AND
SUBSIDIARIES |
|
|
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|
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|
|
|
RECONCILIATION OF NON-GAAP PERFORMANCE MEASURES TO GAAP PERFORMANCE
MEASURES |
(in thousands, except earnings per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Years Ended |
|
|
June 28, 2020 |
|
|
|
June 30, 2019 |
|
|
|
June 28, 2020 |
|
|
|
June 30, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross (loss) profit (GAAP measure) |
$ |
(7,783 |
) |
|
$ |
14,199 |
|
|
$ |
35,446 |
|
|
$ |
57,800 |
|
Compensation charge,
pre-tax |
|
215 |
|
|
|
2,491 |
|
|
|
2,957 |
|
|
|
2,491 |
|
Adjusted gross (loss)
profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Non-GAAP measure) |
$ |
(7,568 |
) |
|
$ |
16,690 |
|
|
$ |
38,403 |
|
|
$ |
60,291 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Engineering, selling &
administrative |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
expenses (GAAP measure) |
$ |
8,333 |
|
|
$ |
13,964 |
|
|
$ |
44,108 |
|
|
$ |
47,186 |
|
Compensation charge,
pre-tax |
|
136 |
|
|
|
1,704 |
|
|
|
1,867 |
|
|
|
1,704 |
|
Adjusted engineering, selling
& |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
administrative expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Non-GAAP measure) |
$ |
8,197 |
|
|
$ |
12,260 |
|
|
$ |
42,241 |
|
|
$ |
45,482 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (loss) income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(GAAP measure) |
$ |
(16,116 |
) |
|
$ |
235 |
|
|
$ |
(8,662 |
) |
|
$ |
10,614 |
|
Compensation charge,
pre-tax |
|
351 |
|
|
|
4,195 |
|
|
|
4,824 |
|
|
|
4,195 |
|
Adjusted operating (loss)
income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Non-GAAP measure) |
$ |
(15,765 |
) |
|
$ |
4,430 |
|
|
$ |
(3,838 |
) |
|
$ |
14,809 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income (GAAP
measure) |
$ |
(10,502 |
) |
|
$ |
(62 |
) |
|
$ |
(7,605 |
) |
|
$ |
(17,029 |
) |
Compensation charge, net of
tax |
|
269 |
|
|
|
3,209 |
|
|
|
3,690 |
|
|
|
3,209 |
|
Pension settlement charge, net
of tax |
|
- |
|
|
|
(425 |
) |
|
|
- |
|
|
|
24,387 |
|
VAST LLC impairment
charge |
|
510 |
|
|
|
- |
|
|
|
510 |
|
|
|
- |
|
Favorable tax adjustment
related to |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
“Tax Reform 2017” |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(372 |
) |
Adjusted net (loss)
income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Non-GAAP measure) |
$ |
(9,723 |
) |
|
$ |
2,722 |
|
|
$ |
(3,405 |
) |
|
$ |
10,195 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted loss per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(GAAP measure) |
$ |
(2.80 |
) |
|
$ |
(0.02 |
) |
|
$ |
(2.04 |
) |
|
$ |
(4.63 |
) |
Compensation charge, net of tax |
|
0.07 |
|
|
|
0.86 |
|
|
|
0.99 |
|
|
|
0.87 |
|
Pension settlement charge, net of tax |
|
- |
|
|
|
(0.11 |
) |
|
|
- |
|
|
|
6.60 |
|
VAST LLC impairment charge, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
net of tax |
|
0.14 |
|
|
|
- |
|
|
|
0.14 |
|
|
|
- |
|
Favorable tax adjustment related to |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
“Tax Reform 2017” |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(0.10 |
) |
Adjusted diluted (loss) earnings per |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share (Non-GAAP measure) |
$ |
(2.59 |
) |
|
$ |
0.73 |
|
|
$ |
(0.91 |
) |
|
$ |
2.74 |
|
Non-GAAP Financial Measures
This press release contains financial measures
not prepared in accordance with generally accepted accounting
principles (referred to as Non-GAAP), specifically “adjusted net
(loss) income,” “adjusted gross (loss) profit,” “adjusted
engineering, selling & administrative expenses,” “adjusted
operating (loss) income” and “adjusted diluted loss per share.”
“Adjusted net (loss) income” is defined as net (loss) income
attributable to STRATTEC SECURITY CORPORATION shareholders
excluding both the pension settlement charges and the compensation
expense charges and the VAST, LLC impairment charge, in each case
net of tax (i.e., on an after tax basis), and excluding a favorable
tax adjustment relating to “Tax Reform 2017”. “Adjusted diluted
loss per share” is defined as “Adjusted net (loss) income” divided
by average diluted shares of common stock outstanding during the
applicable period. “Adjusted gross (loss) profit” is defined as
gross (loss) profit excluding the compensation expense charges, all
on a pre-tax basis. “Adjusted engineering, selling &
administrative expenses” is defined as engineering, selling &
administrative expenses excluding the compensation expense charges,
all on a pre-tax basis. “Adjusted operating (loss) income” is
defined as operating (loss) income excluding the compensation
expense charges, all on a pre-tax basis. The Company believes that
these Non-GAAP measures, when presented in conjunction with
comparable GAAP measures, provide additional information for
evaluating STRATTEC’s performance and are important measures by
which STRATTEC’s management is able to assess the profitability and
liquidity of STRATTEC’s business. These Non-GAAP measures should be
considered in addition to, not as a substitute for or superior to,
net income (loss) as a measure of operating performance. These
Non-GAAP measures may be different than Non-GAAP financial measures
used by other companies.
STRATTEC designs, develops, manufactures and
markets automotive Access Control Products, including mechanical
locks and keys, electronically enhanced locks and keys, steering
column and instrument panel ignition lock housings, latches, power
sliding side door systems, power lift gate systems, power deck lid
systems, door handles and related products. These products are
provided to customers in North America, and on a global basis
through a unique strategic relationship with WITTE Automotive of
Velbert, Germany and ADAC Automotive of Grand Rapids, Michigan.
Under this relationship, STRATTEC, WITTE and ADAC market each
company’s products to global customers under the “VAST Automotive
Group” brand name. STRATTEC’s history in the automotive business
spans over 110 years.
Certain statements contained in this release
contain “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995. These statements
may be identified by the use of forward-looking words or phrases
such as “anticipate,” “believe,” “could,” “expect,” “intend,”
“may,” “planned,” “potential,” “should,” “will,” and “would.” Such
forward-looking statements in this release are inherently 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, customer purchasing
actions, changes in warranty provisions and customer product recall
policies, work stoppages at the Company or at the location of its
key customers as a result of labor disputes, foreign currency
fluctuations, uncertainties stemming from U.S. trade policies,
tariffs and reactions to same from foreign countries, the volume
and scope of product returns, adverse business and operational
issues resulting from the coronavirus (COVID-19) pandemic, and
fluctuations in our costs of operation (including fluctuations in
the cost of raw materials). 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 occurring after the date of this
release. 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 |
Condensed Results of Operations |
(In Thousands except per share amounts) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter Ended |
|
Years Ended |
|
|
June 28, 2020 |
|
|
June 30, 2019 |
|
|
June 28, 2020 |
|
|
|
June 30, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales |
$ |
42,117 |
|
|
$ |
128,704 |
|
|
$ |
385,300 |
|
|
$ |
487,006 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Goods Sold |
|
49,900 |
|
|
|
114,505 |
|
|
|
349,854 |
|
|
|
429,206 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross (Loss) Profit |
|
(7,783 |
) |
|
|
14,199 |
|
|
|
35,446 |
|
|
|
57,800 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Engineering, Selling
& |
|
|
|
|
|
|
|
|
|
|
|
|
|
Administrative Expenses |
|
8,333 |
|
|
|
13,964 |
|
|
|
44,108 |
|
|
|
47,186 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) Income from
Operations |
|
(16,116 |
) |
|
|
235 |
|
|
|
(8,662 |
) |
|
|
10,614 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Expense |
|
(128 |
) |
|
|
(391 |
) |
|
|
(920 |
) |
|
|
(1,615 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pension Termination |
|
|
|
|
|
|
|
|
|
|
|
|
|
Settlement Charge |
|
- |
|
|
|
556 |
|
|
|
- |
|
|
|
(31,878 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income, Net |
|
429 |
|
|
|
293 |
|
|
|
1,459 |
|
|
|
2,446 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) Income before
(Benefit) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for Income Taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
and Non-Controlling Interest |
|
(15,815 |
) |
|
|
693 |
|
|
|
(8,123 |
) |
|
|
(20,433 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefit for Income Taxes |
|
(3,460 |
) |
|
|
(746 |
) |
|
|
(2,266 |
) |
|
|
(7,740 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (Loss) Income |
|
(12,355 |
) |
|
|
1,439 |
|
|
|
(5,857 |
) |
|
|
(12,693 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (Loss) Income Attributable
to |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Controlling Interest |
|
(1,853 |
) |
|
|
1,501 |
|
|
|
1,748 |
|
|
|
4,336 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss Attributable to |
|
|
|
|
|
|
|
|
|
|
|
|
|
STRATTEC SECURITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
CORPORATION |
$ |
(10,502 |
) |
|
$ |
(62 |
) |
|
$ |
(7,605 |
) |
|
$ |
(17,029 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss Per Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
(2.80 |
) |
|
$ |
(0.02 |
) |
|
$ |
(2.04 |
) |
|
$ |
(4.63 |
) |
Diluted |
$ |
(2.80 |
) |
|
$ |
(0.02 |
) |
|
$ |
(2.04 |
) |
|
$ |
(4.63 |
) |
Average Basic |
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares Outstanding |
|
3,749 |
|
|
|
3,691 |
|
|
|
3,737 |
|
|
|
3,676 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Diluted |
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares Outstanding |
|
3,749 |
|
|
|
3,691 |
|
|
|
3,737 |
|
|
|
3,676 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Expenditures |
$ |
2,074 |
|
|
$ |
3,903 |
|
|
$ |
12,381 |
|
|
$ |
17,453 |
|
Depreciation |
$ |
4,980 |
|
|
$ |
4,616 |
|
|
$ |
19,329 |
|
|
$ |
17,159 |
|
STRATTEC SECURITY CORPORATION |
|
|
|
|
|
|
|
|
Condensed Balance Sheet Data |
(In Thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 28, 2020 |
|
June 30, 2019 |
|
|
(Unaudited) |
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
Current Assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
11,774 |
|
|
$ |
7,809 |
|
Receivables, net |
|
41,955 |
|
|
|
84,230 |
|
Inventories, net |
|
54,400 |
|
|
|
47,262 |
|
Other current assets |
|
17,239 |
|
|
|
17,331 |
|
Total Current Assets |
|
125,368 |
|
|
|
156,632 |
|
Investment in Joint Ventures |
|
22,068 |
|
|
|
23,528 |
|
Other Long Term Assets |
|
12,961 |
|
|
|
14,456 |
|
Property, Plant and Equipment, Net |
|
105,148 |
|
|
|
118,120 |
|
|
$ |
265,545 |
|
|
$ |
312,736 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
Current Liabilities: |
|
|
|
|
|
|
|
Accounts Payable |
$ |
18,549 |
|
|
$ |
41,889 |
|
Other |
|
29,591 |
|
|
|
37,374 |
|
Total Current Liabilities |
|
48,140 |
|
|
|
79,263 |
|
Accrued Pension and Post Retirement Obligations |
|
1,956 |
|
|
|
2,425 |
|
Borrowings Under Credit Facility |
|
35,000 |
|
|
|
42,000 |
|
Other Long-term Liabilities |
|
5,008 |
|
|
|
1,232 |
|
Shareholders’ Equity |
|
309,991 |
|
|
|
317,681 |
|
Accumulated Other Comprehensive Loss |
|
(22,113 |
) |
|
|
(18,568 |
) |
Less: Treasury Stock |
|
(135,656 |
) |
|
|
(135,725 |
) |
Total STRATTEC SECURITY |
|
|
|
|
|
|
|
CORPORATION Shareholders’ Equity |
|
152,222 |
|
|
|
163,388 |
|
Non-Controlling Interest |
|
23,219 |
|
|
|
24,428 |
|
Total Shareholders’ Equity |
|
175,441 |
|
|
|
187,816 |
|
|
$ |
265,545 |
|
|
$ |
312,736 |
|
STRATTEC SECURITY CORPORATION |
Condensed Cash Flow Statement Data |
(In Thousands) |
(Unaudited) |
|
|
|
|
|
|
Fourth Quarter Ended |
|
Years Ended |
|
|
June 28, 2020 |
|
|
|
June 30, 2019 |
|
|
|
June 28, 2020 |
|
|
June 30, 2019 |
|
|
|
|
|
Cash Flows from Operating
Activities: |
|
|
|
|
Net (Loss) Income |
$ |
(12,355 |
) |
|
$ |
1,439 |
|
|
$ |
(5,857 |
) |
|
$ |
(12,693 |
) |
Adjustment to Reconcile Net
(Loss) Income to |
|
|
|
|
Cash Provided by Operating Activities: |
|
|
|
|
Equity Loss (Earnings) in Joint Ventures |
|
264 |
|
|
|
(332 |
) |
|
|
209 |
|
|
|
(2,783 |
) |
Depreciation |
|
4,980 |
|
|
|
4,616 |
|
|
|
19,329 |
|
|
|
17,159 |
|
Foreign Currency Transaction Loss (Gain) |
|
85 |
|
|
|
136 |
|
|
|
(1,982 |
) |
|
|
397 |
|
Unrealized (Gain) Loss on Peso |
|
|
|
|
Forward Contracts |
|
(568 |
) |
|
|
77 |
|
|
|
480 |
|
|
|
(39 |
) |
Stock Based Compensation Expense |
|
207 |
|
|
|
266 |
|
|
|
996 |
|
|
|
1,133 |
|
Non-Cash Compensation Expense |
|
351 |
|
|
|
4,195 |
|
|
|
4,824 |
|
|
|
4,195 |
|
Pension Settlement Charge |
|
- |
|
|
|
(556 |
) |
|
|
- |
|
|
|
31,878 |
|
Deferred Income taxes |
|
(2,557 |
) |
|
|
(1,991 |
) |
|
|
(3,589 |
) |
|
|
(10,122 |
) |
Change in Operating Assets/Liabilities |
|
5,207 |
|
|
|
(2,731 |
) |
|
|
10,616 |
|
|
|
996 |
|
Other, net |
|
(124 |
) |
|
|
101 |
|
|
|
398 |
|
|
|
(180 |
) |
|
|
|
|
|
Net Cash (Used in) Provided by
Operating Activities |
|
(4,510 |
) |
|
|
5,220 |
|
|
|
25,424 |
|
|
|
29,941 |
|
|
|
|
|
|
Cash Flows from Investing
Activities: |
|
|
|
|
Investment in Joint Ventures |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(200 |
) |
Additions to Property, Plant and Equipment |
|
(2,074 |
) |
|
|
(3,903 |
) |
|
|
(12,381 |
) |
|
|
(17,453 |
) |
|
|
|
|
|
Other |
|
3 |
|
|
|
41 |
|
|
|
32 |
|
|
|
53 |
|
Net Cash Used in Investing
Activities |
|
(2,071 |
) |
|
|
(3,862 |
) |
|
|
(12,349 |
) |
|
|
(17,600 |
) |
|
|
|
|
|
Cash Flows from Financing
Activities: |
|
|
|
|
Borrowings Under Credit Facility |
|
8,000 |
|
|
|
3,000 |
|
|
|
8,000 |
|
|
|
5,000 |
|
Repayment of Borrowings Under Credit Facility |
|
- |
|
|
|
(5,000 |
) |
|
|
(15,000 |
) |
|
|
(14,000 |
) |
Dividends Paid to Non-Controlling |
|
|
|
|
Interests of Subsidiaries |
|
- |
|
|
|
- |
|
|
|
(980 |
) |
|
|
(1,384 |
) |
Dividends Paid |
|
- |
|
|
|
(516 |
) |
|
|
(1,572 |
) |
|
|
(2,062 |
) |
Exercise of Stock Options and |
|
|
|
|
Employee Stock Purchases |
|
17 |
|
|
|
27 |
|
|
|
560 |
|
|
|
271 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Cash Provided By (Used In)
Financing Activities |
|
8,017 |
|
|
|
(2,489 |
) |
|
|
(8,992 |
) |
|
|
(12,175 |
) |
|
|
|
|
|
Effect of Foreign Currency
Fluctuations on Cash |
|
165 |
|
|
|
(262 |
) |
|
|
(118 |
) |
|
|
(447 |
) |
|
|
|
|
|
Net Increase (Decrease) in
Cash & Cash Equivalents |
|
1,601 |
|
|
|
(1,393 |
) |
|
|
3,965 |
|
|
|
(281 |
) |
|
|
|
|
|
Cash and Cash
Equivalents: |
|
|
|
|
Beginning of Period |
|
10,173 |
|
|
|
9,202 |
|
|
|
7,809 |
|
|
|
8,090 |
|
End of Period |
$ |
11,774 |
|
|
$ |
7,809 |
|
|
$ |
11,774 |
|
|
$ |
7,809 |
|
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