UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of report (Date of earliest event reported): August 8, 2024

STRATTEC SECURITY CORPORATION

(Exact Name of Registrant as Specified in Charter)

Wisconsin

0-25150

39-1804239

(State or Other Jurisdiction

of Incorporation)

(Commission

File Number)

(I.R.S. Employer

Identification No.)

 

3333 West Good Hope Road, Milwaukee, Wisconsin 53209

(Address of Principal Executive Offices, and Zip Code)

(414) 247-3333

Registrant’s Telephone Number, Including Area Code

 

 

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communication pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communication pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

 

Trading Symbol

 

Name of each exchange on which registered

Common Stock, $.01 par value

 

STRT

 

The Nasdaq Global Stock Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 


 

 

 

Section 2 – Financial Information

 

Item 2.02. Results of Operations and Financial Condition.

 

On August 8, 2024, STRATTEC SECURITY CORPORATION (the “Company”) issued a press release (the “Press Release”) announcing results for the fiscal fourth quarter and year ended June 30, 2024. A copy of the Press Release is attached as Exhibit 99.1 to this Current Report on Form 8-K.

 

Pursuant to General Instruction B.2 of Current Report on Form 8-K, the information in this Item 2.02 and Exhibit 99.1 is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section. Furthermore, the information in this Item 2.02 and Exhibit 99.1 shall not be deemed to be incorporated by reference into the filings of STRATTEC under the Securities Act of 1933, as amended (the “Securities Act”), except as may be expressly set forth by specific reference in such filing.

 

Item 7.01 Regulation FD Disclosure.

 

As described in “Item 2.02 Results of Operations and Financial Condition” above, on August 8, 2024, the Company issued a press release announcing earnings results for the fiscal fourth quarter and year ended June 30, 2024. The full text of the press release issued in connection with the announcement is attached as Exhibit 99.1 to this Current Report on Form 8-K.

 

Pursuant to General Instruction B.2 of Current Report on Form 8-K, the information in this Item 7.01 and Exhibit 99.1 is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section. Furthermore, the information in this Item 7.01 and Exhibit 99.1 shall not be deemed to be incorporated by reference into the filings of the Company under the Securities Act, except as may be expressly set forth by specific reference in such filing.

 

Item 9.01 Financial Statements and Exhibits.

 

(d) Exhibits

 

Exhibit

Number Description

 

99.1 Press Release of STRATTEC SECURITY CORPORATION, issued August 8, 2024.

 

104 Cover Page Interactive Data File (embedded within the Inline XBRL document).

 

 

 

 

 


 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

STRATTEC SECURITY CORPORATION

 

By: /s/ Dennis P. Bowe

Dennis P. Bowe, Vice President and

Chief Financial Officer

 

 

Date: August 8, 2024

 

 


Exhibit 99.1

img57970978_0.jpg 

 

STRATTEC SECURITY CORPORATION REPORTS FISCAL 2024 FOURTH QUARTER AND FULL YEAR OPERATING RESULTS

August 8, 2024

Fourth Fiscal Quarter earnings per share $2.39 vs $0.69 loss, an improvement driven by customer price increases and higher sales

Milwaukee, Wisconsin – STRATTEC SECURITY CORPORATION (NASDAQ:STRT) is a market leader of a comprehensive range of "Smart" Vehicle Power Access and Electronic and Security Solutions, serving the global automotive industry.

Fourth Quarter Fiscal 2024 Financial Highlights

Diluted earnings per share of $2.39 versus $0.69 loss last year
Gross Margins expanded to 13.0% compared with 9.3% last year
Revenues increased by 8.2%, driven by pricing increases and new product sales

STRATTEC President and CEO Jennifer Slater said, “The financial performance of the business continued due to improved pricing, and new product introductions which are expanding STRATTEC’s offerings to our customers. We will continue to focus on addressing persistent cost challenges and the opportunities we have to optimize our working capital and a strong balance sheet.”

Fourth Quarter and Full Year Fiscal 2024 Financial Summary

(Dollars in thousands, except per share data)

 

Three Months Ended

Year Ended

 

June 30, 2024

July 2, 2023

June 30, 2024

July 2, 2023

Net Sales

$ 143,055

$ 132,219

$ 537,766

$ 492,946

Gross Profit

$ 18,567

$ 12,268

$ 65,468

$ 42,152

Gross Margin

 13.0%

              9.3%

            12.2%

              8.6%

Operating Expenses

$ 8,876

$ 10,975

$ 47,654

$ 48,241

Operating Income (Loss) from Operations

$ 9,691

$ 1,293

$ 17,814

$ (6,089)

Net Income (Loss)

$ 9,620

$ (2,700)

$ 16,313

$ (6,670)

Diluted Earnings (Loss) Per Share

$ 2.39

$ (0.69)

$ 4.07

$ (1.70)


 

 

 

 

 

 

Fourth Quarter Financial Overview

Revenue growth was driven by $6.9 million of price increases to our major customers and $3.9 million of higher sales associated with the launch of new product programs, the latter representing a 3.0% growth in sales from prior year. The growth in new product sales primarily stems from additional content of our latch and power access product lines on a major truck platform.

Gross margin improvement was primarily driven by pricing increases, higher sales and lower raw material costs. Offsetting those positive trends was primarily $2.1 million of wage increases due to a mandatory Mexican minimum wage-increase, $1.7 million for increase in the company’s annual incentive bonus plan, $1.2 million higher prices paid to certain suppliers, $1.1 million of higher warranty costs, $1.0 million of increased freight costs primarily related to the launch of new programs, and $660,000 of unfavorable U.S. dollar to Mexican peso exchange rate effects.

Operating expenses decreased by $2.1 million primarily due to a $3.2 million increase in customer billings for the reimbursement of development costs, offset by a $1.1 increase in the company’s annual incentive bonus plan. Other Income was $2.0 million compared to a loss of $1.1 million last year due to foreign currency transaction gains in the current year and losses in the prior year. Net Income was $9.6 million compared to a loss of $2.7 million last year. Fully diluted earnings per share were $2.39 compared with a loss of $0.69 last year.

Full Year Financial Overview

Full year revenue growth of $44.8 million was primarily driven by $32.7 million of customer pricing of which $9.7 million relates to one-time retroactive pricing that is not expected to recur in the future. Total gross margins improved by $23.3 million due to customer pricing, higher sales, lower raw material costs and salaried staff reductions and production efficiencies in Mexico, offset primarily by $5.7 million of higher prices paid to key suppliers, $8.5 million of unfavorable exchange rate impact between the U.S. dollar and the Mexican peso, $6.6 million of mandatory Mexican minimum wage increases and $4.1 million of higher shipping costs, primarily attributable to expediting associated with new product launches. Operating expenses were $587,000 lower due to $3.4 million increase in customer billings for the reimbursement of engineering development costs offset primarily by $1.0 million in one-time charges associated with the transition of the Chief Executive Officer position and $1.9 million of annual incentive


bonus expense. Net Income was $16.3 million compared to a loss of $6.7 million last year. Fully diluted earnings per share were $4.07 compared with a loss of $1.70 last year.

 

Fourth Quarter Balance Sheet & Cash Flow

As of June 30, 2024, the Company’s cash and cash equivalents on hand totaled $25.4 million. Total debt as of June 30, 2024 was $13.0 million, which was all held by the ADAC-STRATTEC LLC joint venture.

For the fourth quarter of fiscal 2024, operating cash flow was $19.4 million, compared to the prior year quarter operating cash flow of $2.6 million. The operating cash flow for the current quarter was driven by improved operating performance and a reduction in net working capital. Capital expenditures in the fourth quarter of fiscal 2024 were $3.7 million, compared with $3.6 million for the fourth quarter of fiscal 2023.

 

About STRATTEC

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, power tailgate systems for trucks, 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 as cooperating partners of the “VAST Automotive Group” brand name. STRATTEC’s history in the automotive business spans over 110 years.

Caution on Forward-Looking Statements

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 continuing effects of the coronavirus (COVID-19) pandemic, matters adversely impacting the timing and availability of component parts and raw materials needed for the production of our products and the products of our customers 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.

 

Contact: Dennis Bowe

Vice President and

Chief Financial Officer

414-247-3399

www.strattec.com

 


STRATTEC SECURITY CORPORATION

Condensed Results of Operations

(In Thousands except per share amounts)

(Unaudited)

 

 

Three Months Ended

 

Year Ended

 

June 30, 2024

 

July 2, 2023

 

June 30, 2024

 

July 2, 2023

 

 

 

 

 

 

 

 

Net Sales

$ 143,055

 

$ 132,219

 

$ 537,766

 

$ 492,946

 

 

 

 

 

 

 

 

Cost of Goods Sold

124,488

 

119,951

 

472,298

 

450,794

 

 

 

 

 

 

 

 

Gross Profit

18,567

 

12,268

 

65,468

 

42,152

 

 

 

 

 

 

 

 

Engineering, Selling &
Administrative Expenses

8,876

 

10,975

 

47,654

 

48,241

 

 

 

 

 

 

 

 

Income (Loss) from Operations

9,691

 

1,293

 

17,814

 

(6,089)

 

 

 

 

 

 

 

 

Interest Expense

(239)

 

(369)

 

(900)

 

(960)

Investment Income

235

 

-

 

572

 

-

 

 

 

 

 

 

 

 

Other Income (Expense), net

1,958

 

(1,089)

 

2,717

 

(619)

 

 

 

 

 

 

 

 

Income (Loss) Before Provision
for Income Taxes and Non-
Controlling Interest

11,645

 

(165)

 

20,203

 

                          (7,668)

 

 

 

 

 

 

 

 

Provision for Income
Taxes

1,578

 

2,919

 

3,775

 

                             1,281

 

 

 

 

 

 

 

 

Net Income (Loss)

10,067

 

(3,084)

 

16,428

 

                          (8,949)

 

 

 

 

 

 

 

 

Net Income (Loss) Attributable
to Non-Controlling Interest

447

 

(384)

 

115

 

                            (2,279)

 

 

 

 

 

 

 

 

Net Income (Loss) Attributable
to STRATTEC SECURITY
CORPORATION

$ 9,620

 

$ (2,700)

 

$ 16,313

 

$ (6,670)

 

 

 

 

 

 

 

 

Earnings (Loss) Per Share:

 

 

 

 

 

 

 

Basic

$ 2.41

 

$ (0.69)

 

$ 4.10

 

$ (1.70)

Diluted

$ 2.39

 

$ (0.69)

 

$ 4.07

 

$ (1.70)

 

 

 

 

 

 

 

 

Average Basic Shares
Outstanding

3,988

 

3,928

 

3,975

 

3,921

 

 

 

 

 

 

 

 

Average Diluted Shares
Outstanding

4,027

 

3,928

 

4,004

 

3,921

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

Capital Expenditures

$ 3,723

 

$ 3,646

 

$ 9,788

 

$ 17,370

Depreciation

$ 3,773

 

$ 4,340

 

$ 16,547

 

$ 17,485

 


STRATTEC SECURITY CORPORATION

Condensed Balance Sheet Data

(In Thousands)

(Unaudited)

 

 

 

 

 

June 30, 2024

 

July 2, 2023

 

 

 

 

 

 

 

ASSETS

 

 

 

 

Current Assets:

 

 

 

 

 

Cash and Cash Equivalents

$ 25,410

 

$ 20,571

 

 

Receivables, net

99,297

 

89,811

 

 

Inventories, net

81,649

 

77,597

 

 

Customer Tooling in Progress, net

22,173

 

20,800

 

 

Value Added Tax Recoverable

19,684

 

7,912

 

 

Other Current Assets

5,601

 

9,091

 

 

 

Total Current Assets

253,814

 

225,782

 

Other Long-term Assets

24,291

 

20,702

 

Property, Plant and Equipment, net

86,184

 

94,446

 

 

 

 

$ 364,289

 

$ 340,930

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

Current Liabilities:

 

 

 

 

 

Accounts Payable

$ 54,911

 

$ 57,927

 

 

Value Added Tax Payable

9,970

 

6,499

 

 

Other

53,407

 

44,560

 

 

 

Total Current Liabilities

118,288

 

108,986

 

Accrued Pension and Postretirement Obligations

2,429

 

2,363

 

Borrowings Under Credit Facility - Long-Term

13,000

 

13,000

 

Other Long-term Liabilities

4,957

 

5,557

 

Shareholders' Equity

351,712

 

334,683

 

Accumulated Other Comprehensive Loss

(15,689)

 

(14,194)

 

Less: Treasury Stock

(135,478)

 

(135,526)

 

 

Total STRATTEC SECURITY

 

 

 

 

 

 

CORPORATION Shareholders' Equity

200,545

 

184,963

 

 

Non-Controlling Interest

25,070

 

26,061

 

Total Shareholders' Equity

225,615

 

211,024

 

 

 

 

$ 364,289

 

$ 340,930

 

 

 


STRATTEC SECURITY CORPORATION

Condensed Cash Flow Statement Data

(In Thousands)

(Unaudited)

 

 

 

 

 

Three Months Ended

 

Year Ended

 

 

 

 

June 30, 2024

 

July 2, 2023

 

June 30, 2024

 

July 2, 2023

Cash Flows from Operating Activities:

 

 

 

 

 

 

 

Net Income (Loss)

$ 10,067

 

$ (3,084)

 

$ 16,428

 

$ (8,949)

 

Adjustments to Reconcile Net Income (Loss) to Cash Provided by Operating Activities:

 

 

 

 

 

 

 

 

 

Depreciation

3,773

 

4,340

 

16,547

 

17,485

 

 

Equity Loss (Earnings) in Joint Ventures

62

 

375

 

331

 

(1,559)

 

 

Foreign Currency Transaction (Gain) Loss

(2,279)

 

821

 

(2,153)

 

2,935

 

 

Loss on Settlement of Pension Obligation

-

 

-

 

-

 

217

 

 

Stock Based Compensation Expense

243

 

327

 

1,467

 

1,466

 

 

Deferred Tax Provision

(4,711)

 

(4,937)

 

(4,711)

 

(4,937)

 

 

Change in Operating Assets/Liabilities

11,543

 

4,437

 

(16,232)

 

2,670

 

Other, net

790

 

304

 

588

 

767

Net Cash Provided by Operating
Activities

19,488

 

2,583

 

12,265

 

10,095

Cash Flows from Investing Activities:

 

 

 

 

 

 

 

 

Proceeds from sale of interest in VAST LLC

-

 

26,170

 

2,000

 

26,170

 

Investment in Joint Ventures

-

 

(41)

 

-

 

(278)

 

Purchase of VAST Korea net assets

-

 

354

 

-

 

354

 

Additions to Property, Plant & Equipment

(3,723)

 

(3,646)

 

(9,788)

 

(17,370)

 

Proceeds on Sales of Property, Plant &
Equipment

-

 

10

 

-

 

25

Net Cash (Used in) Provided by Investing Activities

(3,723)

 

22,847

 

(7,788)

 

8,901

Cash Flows from Financing Activities:

 

 

 

 

 

 

 

 

Borrowings on Line of Credit Facility

-

 

4,000

 

2,000

 

17,000

 

Payments on Line of Credit Facility

-

 

(12,000)

 

(2,000)

 

(15,000)

 

Purchase of SPA non-controlling interest

-

 

(9,019)

 

-

 

(9,019)

 

Dividends Paid to Non-Controlling Interest of
Subsidiary

-

 

-

 

-

 

(600)

 

Exercise of Stock Options and Employee Stock
Purchases

17

 

19

 

72

 

183

Net Cash Provided by (Used In) Financing

Activities

17

 

(17,000)

 

72

 

(7,436)

Effect of Foreign Currency Fluctuations on Cash

34

 

55

 

290

 

237

Net Increase in Cash & Cash Equivalents

15,816

 

8,485

 

4,839

 

11,797

Cash & Cash Equivalents:

 

 

 

 

 

 

 

 

Beginning of Period

9,594

 

12,086

 

20,571

 

8,774

 

End of Period

$ 25,410

 

$ 20,571

 

$ 25,410

 

$ 20,571

 



Grafico Azioni Strattec Security (NASDAQ:STRT)
Storico
Da Nov 2024 a Dic 2024 Clicca qui per i Grafici di Strattec Security
Grafico Azioni Strattec Security (NASDAQ:STRT)
Storico
Da Dic 2023 a Dic 2024 Clicca qui per i Grafici di Strattec Security