8-K
STRATTEC SECURITY CORP (STRT)
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): February 6, 2025
STRATTEC SECURITY CORPORATION
(Exact Name of Registrant as Specified in Charter)
| Wisconsin | 0-25150 | 39-1804239 |
|---|---|---|
| (State or Other Jurisdiction<br><br>of Incorporation) | (Commission<br><br>File Number) | (I.R.S. Employer<br><br>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 February 6, 2025, STRATTEC SECURITY CORPORATION (the “Company”) issued a press release (the “Press Release”) announcing results for the fiscal second quarter ended December 29, 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 February 6, 2025, the Company issued a Press Release announcing earnings results for the fiscal first quarter ended December 29, 2024 and an Investor Presentation containing supplemental fiscal first quarter earnings and other current financial information. The Press Release and Investor Presentation issued in connection with the announcement are 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 February 6, 2025 |
| 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/ Matthew Pauli
Matthew Pauli, Senior Vice President and
Chief Financial Officer
Date: February 6, 2025
EX-99.1
Exhibit 99.1
News Release
3333 West Good Hope Rd. • Milwaukee, Wisconsin 53209
IMMEDIATE RELEASE
STRATTEC SECURITY CORPORATION Generated $9.4 million in Cash from Operations in Fiscal 2025 Second Quarter
- Grew revenue $11.4 million to $129.9 million in the quarter as a result of new program launches and increased demand from customers
- Net income attributable to STRATTEC Security Corporation was $1.3 million, or diluted EPS of $0.32, compared with $1.0 million, or diluted EPS of $0.26, in the year ago quarter
- Adjusted diluted earnings per share1 were $0.65, compared with $0.36 in the prior year
- Generated $9.4 million in cash from operations, bringing year-to-date cashflow from operations to $20.8 million
- Delivered adjusted EBITDA1 of $8.0 million, or 6.1% of sales, compared with $5.0 million, or 4.3%, in the prior-year second quarter
- Transformation efforts continue to focus on driving profitability, stronger cash generation and creating a sustainable business model while evaluating market opportunities and future growth plans
MILWAUKEE, WI, February 6, 2025 – STRATTEC SECURITY CORPORATION (Nasdaq: STRT) (“Company”), a leading provider of smart vehicle access, security and authorization solutions for the global automotive industry, reported financial results for its second quarter of fiscal year 2025, which ended December 29, 2024.
STRATTEC President and CEO Jennifer Slater said, “Our solid financial results reflect the focus the team is placing on our key priorities of stabilizing the business, optimizing costs, and identifying where our engineering innovation commands the right to win. Sales growth was the result of production trends with key customers and, in particular, with the platforms on which we have higher value content. We made progress this last quarter to strengthen our earnings power as we restructured our U.S. manufacturing operations by reducing the number of shifts, which is expected to generate $1.2 million in annualized savings. In addition, we continued to unlock value on our balance sheet as we collected on our tooling investments.”
Ms. Slater concluded, “Talent is critical for our transformation, and we made further investments this quarter. We are gaining traction with our customers as our new chief commercial officer identifies opportunities for both new projects as well as pricing that reflects the value of our product offering. We recognize that an engaged and motivated team generates creativity and excitement for our future and we are creating a stronger, more open culture with new leadership in human resources. Importantly as well, we now have the financial leadership needed to support our strategic objectives. We are making solid progress as a team and, in addition to these strategic efforts, we are proactively addressing the potential challenges the tariffs may present.”
FY 2025 Second Quarter Financial Summary (compared with prior-year period, except where otherwise noted)
Net sales were $129.9 million, an increase of $11.4 million, or 9.6%, compared with the second quarter prior year. Sales growth was driven by $6.0 million of net new program launches, $1.3 million of higher content and product mix. In addition,
1 Refer to “Use of Non-GAAP Financial Metrics and Additional Financial Information” as well as accompanying reconciliations to GAAP
STRATTEC SECURITY CORPORATION Generated $9.4 million in Cash from Operations in Fiscal 2025 Second Quarter
February 6, 2025
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net sales on current platforms increased $7.3 million as a result of customers building inventory, slightly higher production levels and the prior year second quarter reflecting increased customer plant shutdowns. This growth more than offset the net impact of the prior year period’s one-time pricing benefits of $3.9 million. Sales growth was broad based across most of the product portfolio, excluding keys & locksets.
Gross profit increased $3.7 million to $17.2 million, from higher volume and a $3.5 million benefit from foreign currency translation. This was mostly offset by increased labor costs in Mexico, a $0.6 million bonus provision and the favorable retroactive pricing in the prior year second quarter. Gross margin was 13.2% compared with 11.4%.
Engineering, selling and administrative expenses increased $1.6 million, or 11.7%, to $15.0 million. The increase reflected continued investments in the business, an annual bonus provision of $0.8 million and $0.3 million in restructuring charges. No bonus provision was recorded in the prior-year period.
Operating income increased $2.0 million to $2.1 million and was 1.6% of sales. Investment income increased $0.3 million on higher cash balances, while changes in foreign currency exchange rates resulted in a $1.4 million increase in other expense. Net income attributable to STRATTEC was $1.3 million compared with $1.1 million last year.
Diluted earnings per share were $0.32 compared with $0.26 last year. On an adjusted basis, net income attributable to STRATTEC1 grew 86% to $2.6 million. Adjusted diluted earnings per share1 increased $0.29, or 81% to $0.65. Adjusted EBITDA1 for the quarter was $8.0 million compared with $5.0 million in the prior-year period.
Balance Sheet and Liquidity
Second quarter fiscal 2025 cash flow from operations was $9.4 million, bringing year-to-date cash flow from operations to $20.8 million. Improved working capital management and recovery of pre-production tooling costs benefited operating cash flows. Capital expenditures in the second quarter of fiscal 2025 were $0.9 million, down $0.6 million from the prior year period.
At December 29, 2024, STRATTEC had $42.6 million in cash and cash equivalents, up $8.2 million from the end of the first quarter of fiscal 2025.
At December 29, 2024 the Company had $13 million of outstanding borrowings under its joint venture revolving credit facility, which is unchanged from the end of fiscal 2024. Total availability under existing lines of credit was $47 million at December 29, 2024.
Second Quarter Fiscal Year 2025 Webcast and Conference Call
The Company will host a conference call and webcast tomorrow, Friday, February 7, 2025, at 9:00 am Eastern Time to review the financial and operating results for the period ended December 29, 2024, and provide an update on its transformation progress. A question-and-answer session will follow.
You can access the call by phoning (201) 689-8470 or find the webcast and accompanying slide presentation at investors.strattec.com.
A telephonic replay will be available from 12:00 p.m. ET on the day of the call through Friday, February 21, 2025. To listen to the archived call, dial (412) 317-6671 and enter a replay PIN 13751178. The webcast replay will be available on the Investor Relations section of the Company’s website where a transcript will be posted once available.
About STRATTEC
STRATTEC is a leading global provider of advanced automotive access, security & authorization and select user interface solutions. With a history spanning over 110 years, STRATTEC has consistently been at the forefront of innovation in vehicle security, transitioning from mechanical to integrated electro-mechanical systems. The Company serves a broad range of
1 Refer to “Use of Non-GAAP Financial Metrics and Additional Financial Information” as well as accompanying reconciliations to GAAP
STRATTEC SECURITY CORPORATION Generated $9.4 million in Cash from Operations in Fiscal 2025 Second Quarter
February 6, 2025
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customers, including leading automotive OEMs, offering power access solutions and advanced security systems that include door handles, lift gates, latches, and key fobs.
For more information on STRATTEC and its solutions, visit www.strattec.com.
Safe Harbor Statement 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 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 the same from foreign countries, 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. 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.
Use of Non-GAAP Financial Metrics and Additional Financial Information In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, STRATTEC provides Adjusted Non-GAAP information as additional information for its operating results. References to Adjusted Non-GAAP information are to non-GAAP financial measures. These measures are not required by, in accordance with, or an alternative for, GAAP and may be different from similarly titled non-GAAP financial measures used by other companies. STRATTEC’s management uses these measures to make strategic decisions, establish budget plans and forecasts, identify trends affecting STRATTEC’s business, and evaluate performance. Management believes that providing these non-GAAP financial measures to investors, as a supplement to GAAP financial measures, will help investors evaluate STRATTEC’s core operating and financial performance and business trends consistent with how management evaluates such performance and trends. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures.
Contact:
| Deborah K. Pawlowski |
|---|
| Alliance Advisors IR |
| Phone: 716-843-3908 |
| Email: dpawlowski@allianceadvisors.com |
FINANCIAL TABLES FOLLOW
STRATTEC SECURITY CORPORATION Generated $9.4 million in Cash from Operations in Fiscal 2025 Second Quarter
February 6, 2025
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| STRATTEC SECURITY CORPORATION | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Condensed Results of Operations | ||||||||||||
| (In Thousands, except per share amounts) | ||||||||||||
| (Unaudited) | ||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||
| December 29,<br>2024 | December 31,<br>2023 | December 29,<br>2024 | December 31,<br>2023 | |||||||||
| Net sales | $ | 129,919 | $ | 118,532 | $ | 268,971 | $ | 253,938 | ||||
| Cost of goods sold | 112,768 | 105,035 | 232,899 | 221,721 | ||||||||
| Gross profit | 17,151 | 13,497 | 36,072 | 32,217 | ||||||||
| Engineering, selling and administrative expenses | 15,017 | 13,439 | 28,875 | 26,053 | ||||||||
| Income from operations | 2,134 | 58 | 7,197 | 6,164 | ||||||||
| Interest expense | (257 | ) | (219 | ) | (552 | ) | (439 | ) | ||||
| Investment income | 408 | 107 | 757 | 194 | ||||||||
| Other (expense) income, net | (482 | ) | 1,098 | (353 | ) | 967 | ||||||
| Income before provision for<br> income taxes and non-controlling interest | 1,803 | 1,044 | 7,049 | 6,886 | ||||||||
| Provision for income taxes | 405 | 264 | 1,903 | 1,651 | ||||||||
| Net income | 1,398 | 780 | 5,146 | 5,235 | ||||||||
| Net income (loss) attributable to non- <br> controlling interest | 79 | (242 | ) | 124 | 48 | |||||||
| Net income attributable to STRATTEC<br> SECURITY CORPORATION | $ | 1,319 | $ | 1,022 | $ | 5,022 | $ | 5,187 | ||||
| Earnings per share attributable to<br> STRATTEC SECURITY CORPORATION: | ||||||||||||
| Basic | $ | 0.33 | $ | 0.26 | $ | 1.25 | $ | 1.31 | ||||
| Diluted | $ | 0.32 | $ | 0.26 | $ | 1.24 | $ | 1.30 | ||||
| Weighted Average shares outstanding: | ||||||||||||
| Basic | 4,035 | 3,976 | 4,020 | 3,962 | ||||||||
| Diluted | 4,070 | 3,998 | 4,058 | 3,986 |
STRATTEC SECURITY CORPORATION Generated $9.4 million in Cash from Operations in Fiscal 2025 Second Quarter
February 6, 2025
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| STRATTEC SECURITY CORPORATION | |||||
|---|---|---|---|---|---|
| Condensed Balance Sheet Data | |||||
| (In Thousands, except share amounts) | |||||
| (Unaudited) | |||||
| June 30, <br>2024 | |||||
| ASSETS | |||||
| Current Assets: | |||||
| Cash and cash equivalents | 42,625 | $ | 25,410 | ||
| Receivables, net | 91,567 | 99,297 | |||
| Inventories: | |||||
| Finished products | 18,808 | 19,833 | |||
| Work in process | 13,462 | 15,461 | |||
| Purchased materials | 49,241 | 46,355 | |||
| Inventories, net | 81,511 | 81,649 | |||
| Pre-production costs | 11,651 | 22,173 | |||
| Value-added tax recoverable | 21,083 | 19,684 | |||
| Other current assets | 5,497 | 5,601 | |||
| Total current assets | 253,934 | 253,814 | |||
| Deferred income taxes | 17,102 | 17,593 | |||
| Other long-term assets | 5,587 | 6,698 | |||
| Net property, plant and equipment | 79,272 | 86,184 | |||
| 355,895 | $ | 364,289 | |||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||
| Current Liabilities: | |||||
| Accounts payable | 50,615 | $ | 54,911 | ||
| Accrued Liabilities: | |||||
| Payroll and benefits | 15,604 | 28,953 | |||
| Value-added tax payable | 10,054 | 9,970 | |||
| Environmental | 1,390 | 1,390 | |||
| Warranty | 10,946 | 10,695 | |||
| Other current liabilities | 8,966 | 12,369 | |||
| Total current liabilities | 97,575 | 118,288 | |||
| Borrowings under credit facilities | 13,000 | 13,000 | |||
| Postemployment obligations | 12,563 | 2,429 | |||
| Other long-term liabilities | 4,602 | 4,957 | |||
| Shareholders’ Equity: | |||||
| Common stock, authorized 18,000,000 shares, .01 par value, 7,635,883 issued shares at December 29, 2024 and 7,586,920 issued shares at June 30, 2024 | 76 | 76 | |||
| Capital in excess of par value | 102,118 | 101,024 | |||
| Retained earnings | 255,634 | 250,612 | |||
| Accumulated other comprehensive loss | (17,827 | ) | (15,689 | ) | |
| Less: treasury stock, at cost (3,597,299 shares at December 29, 2024 and 3,598,126 shares at June 30, 2024) | (135,465 | ) | (135,478 | ) | |
| Total STRATTEC SECURITY CORPORATION shareholders’ equity | 204,536 | 200,545 | |||
| Non-controlling interest | 23,619 | 25,070 | |||
| Total shareholders’ equity | 228,155 | 225,615 | |||
| 355,895 | $ | 364,289 |
All values are in US Dollars.
STRATTEC SECURITY CORPORATION Generated $9.4 million in Cash from Operations in Fiscal 2025 Second Quarter
February 6, 2025
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| STRATTEC SECURITY CORPORATION | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Condensed Cash Flow Statement Data | ||||||||||||
| (In Thousands) | ||||||||||||
| (Unaudited) | ||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||
| December 29,<br> 2024 | December 31,<br> 2023 | December 29,<br>2024 | December 31, <br>2023 | |||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||
| Net income | $ | 1,398 | $ | 780 | $ | 5,146 | $ | 5,235 | ||||
| Adjustments to reconcile net income to net cash <br> provided by (used in) operating activities: | ||||||||||||
| Depreciation | 3,544 | 4,330 | 7,206 | 8,715 | ||||||||
| Foreign currency transaction gain | (188 | ) | (123 | ) | (1,193 | ) | (349 | ) | ||||
| Unrealized loss (gain) on peso forward<br> contracts | 284 | (826 | ) | 936 | (826 | ) | ||||||
| Stock-based compensation expense | 891 | 479 | 1,079 | 984 | ||||||||
| Loss on settlement of postemployment obligation | — | — | 283 | — | ||||||||
| Change in operating assets and liabilities: | ||||||||||||
| Receivables | 10,568 | 16,845 | 7,379 | 19,178 | ||||||||
| Inventories | 2,283 | (8,072 | ) | 138 | (11,842 | ) | ||||||
| Prepaid and other assets | 1,963 | (4,739 | ) | 7,844 | (12,404 | ) | ||||||
| Accounts payable | (9,026 | ) | (9,083 | ) | (3,990 | ) | (16,441 | ) | ||||
| Accrued liabilities | (2,542 | ) | (2,894 | ) | (4,580 | ) | 410 | |||||
| Other, net | 269 | 261 | 533 | 426 | ||||||||
| Net cash provided by (used in) operating activities | 9,444 | (3,042 | ) | 20,781 | (6,914 | ) | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||
| Proceeds from sale of interest in joint ventures | — | — | — | 2,000 | ||||||||
| Purchase of property, plant and equipment | (917 | ) | (1,473 | ) | (2,990 | ) | (4,393 | ) | ||||
| Net cash used in investing activities | (917 | ) | (1,473 | ) | (2,990 | ) | (2,393 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||
| Borrowings under credit facilities | — | — | 3,000 | 2,000 | ||||||||
| Repayment of borrowings under credit facilities | — | — | (3,000 | ) | (2,000 | ) | ||||||
| Employee stock purchases | 15 | 20 | 28 | 37 | ||||||||
| Net cash provided by financing activities | 15 | 20 | 28 | 37 | ||||||||
| Foreign currency impact on cash | (320 | ) | 405 | (604 | ) | 274 | ||||||
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 8,222 | (4,090 | ) | 17,215 | (8,996 | ) | ||||||
| CASH AND CASH EQUIVALENTS | ||||||||||||
| Beginning of period | 34,403 | 15,665 | 25,410 | 20,571 | ||||||||
| End of period | $ | 42,625 | $ | 11,575 | $ | 42,625 | $ | 11,575 | ||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||||||||
| Cash paid during the period for: | ||||||||||||
| Income taxes | $ | 4,458 | $ | 682 | $ | 8,539 | $ | 1,446 | ||||
| Interest | $ | 279 | $ | 222 | $ | 559 | $ | 440 | ||||
| Non-cash investing activities: | ||||||||||||
| Change in capital expenditures in accounts payable | $ | 56 | $ | 18 | $ | (450 | ) | $ | (175 | ) |
STRATTEC SECURITY CORPORATION Generated $9.4 million in Cash from Operations in Fiscal 2025 Second Quarter
February 6, 2025
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| STRATTEC SECURITY CORPORATION ("STRATTEC") | ||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Reconciliation of GAAP to Non-GAAP Financial Measures | ||||||||||||||||||||||||||||
| (in thousands, except per share amounts) | ||||||||||||||||||||||||||||
| Fiscal 2024 | Fiscal 2025 | |||||||||||||||||||||||||||
| Q1 | Q2 | Q3 | Q4 | Total | Q1 | Q2 | Q3 | Q4 | Total | |||||||||||||||||||
| ADJUSTED NET SALES: | ||||||||||||||||||||||||||||
| Net Sales (GAAP) | 135,406 | 118,532 | 140,773 | 143,055 | $ | 537,766 | 139,052 | 129,919 | - | - | $ | 268,971 | ||||||||||||||||
| Adjustments: | ||||||||||||||||||||||||||||
| Retroactive FY23 one-time pricing recovery | (7,950 | ) | (1,551 | ) | (397 | ) | 175 | (9,723 | ) | - | - | - | - | - | ||||||||||||||
| Adjusted Sales (Non-GAAP) | 127,456 | 116,981 | 140,376 | 143,230 | 528,043 | 139,052 | 129,919 | - | - | 268,971 | ||||||||||||||||||
| ADJUSTED EBITDA: | ||||||||||||||||||||||||||||
| Net income attributable to STRATTEC (GAAP) | $ | 4,165 | $ | 1,022 | $ | 1,506 | $ | 9,620 | $ | 16,313 | $ | 3,703 | $ | 1,319 | $ | - | $ | - | $ | 5,022 | ||||||||
| Net income (loss) attributable to non-controlling interest | 290 | (242 | ) | (380 | ) | 447 | 115 | 45 | 79 | - | - | 124 | ||||||||||||||||
| Provision for income tax | 1,387 | 264 | 546 | 1,578 | 3,775 | 1,498 | 405 | - | - | 1,903 | ||||||||||||||||||
| Other (income) expense, net | 131 | (1,098 | ) | 208 | (1,958 | ) | (2,717 | ) | (129 | ) | 482 | - | - | 353 | ||||||||||||||
| Investment and interest income | (87 | ) | (107 | ) | (143 | ) | (235 | ) | (572 | ) | (349 | ) | (408 | ) | - | - | (757 | ) | ||||||||||
| Interest expense | 220 | 219 | 222 | 239 | 900 | 295 | 257 | - | - | 552 | ||||||||||||||||||
| Income from operations | 6,106 | 58 | 1,959 | 9,691 | 17,814 | 5,063 | 2,134 | - | - | 7,197 | ||||||||||||||||||
| Adjustments: | ||||||||||||||||||||||||||||
| Depreciation | 4,385 | 4,330 | 4,059 | 3,773 | $ | 16,547 | 3,662 | 3,544 | - | - | $ | 7,206 | ||||||||||||||||
| Non-cash stock-based compensation | 505 | 479 | 240 | 243 | 1,467 | 188 | 891 | - | - | 1,079 | ||||||||||||||||||
| Restructuring and similar charges | - | - | - | - | - | - | 265 | - | - | 265 | ||||||||||||||||||
| Retroactive FY23 one-time pricing recovery, net | (7,078 | ) | (641 | ) | (298 | ) | 24 | (7,993 | ) | - | - | - | - | - | ||||||||||||||
| Executive transition costs | - | 774 | 211 | 73 | 1,058 | 941 | 921 | - | - | 1,862 | ||||||||||||||||||
| Business transformation costs | - | - | - | - | - | 73 | 215 | - | - | 288 | ||||||||||||||||||
| (2,188 | ) | 4,942 | 4,212 | 4,113 | 11,079 | 4,864 | 5,836 | - | - | 10,700 | ||||||||||||||||||
| Adjusted EBITDA (Non-GAAP) | $ | 3,918 | $ | 5,000 | $ | 6,171 | $ | 13,804 | $ | 28,893 | $ | 9,927 | $ | 7,970 | $ | - | $ | - | $ | 17,897 |
STRATTEC SECURITY CORPORATION Generated $9.4 million in Cash from Operations in Fiscal 2025 Second Quarter
February 6, 2025
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| Adjusted EBITDA as a % of Adjusted Net Sales | 3.1 | % | 4.3 | % | 4.4 | % | 9.6 | % | 5.5 | % | 7.1 | % | 6.1 | % | 6.7 | % | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ADJUSTED NET INCOME AND EARNINGS/(LOSS) PER SHARE: | ||||||||||||||||||||||||||||
| Net income attributable to STRATTEC (GAAP) | $ | 4,165 | $ | 1,022 | $ | 1,506 | $ | 9,620 | $ | 16,313 | $ | 3,703 | $ | 1,319 | $ | - | $ | - | $ | 5,022 | ||||||||
| Adjustments: | ||||||||||||||||||||||||||||
| Restructuring and similar charges | 265 | 3 | - | 63 | 331 | - | 265 | - | - | 265 | ||||||||||||||||||
| Retroactive FY23 one-time pricing recovery, net | (7,078 | ) | (641 | ) | (298 | ) | 24 | (7,993 | ) | - | - | - | - | - | ||||||||||||||
| Executive transition costs | - | 973 | 211 | 73 | 1,257 | 1,224 | 1,225 | - | - | 2,449 | ||||||||||||||||||
| Business transformation costs | - | - | - | - | - | 73 | 215 | - | - | 288 | ||||||||||||||||||
| Non-controlling interest impact on above adjustments | 1,014 | 181 | 55 | 22 | 1,272 | - | - | - | - | - | ||||||||||||||||||
| Tax effect on above adjustments | 1,305 | (116 | ) | 7 | (41 | ) | 1,155 | (292 | ) | (384 | ) | - | - | (676 | ) | |||||||||||||
| (4,494 | ) | 400 | (25 | ) | 141 | (3,978 | ) | 1,005 | 1,321 | - | - | 2,326 | ||||||||||||||||
| Adjusted Net Income/(Loss) attributable to STRATTEC (Non-GAAP) | $ | (329 | ) | $ | 1,422 | $ | 1,481 | $ | 9,761 | $ | 12,335 | $ | 4,708 | $ | 2,640 | $ | - | $ | - | $ | 7,348 | |||||||
| Weighted Average Basic Shares Outstanding | 3,948 | 3,976 | 3,988 | 3,988 | 3,975 | 4,005 | 4,035 | - | - | 4,020 | ||||||||||||||||||
| Weighted Average Diluted Shares Outstanding | 3,974 | 3,998 | 4,017 | 4,027 | 4,004 | 4,046 | 4,070 | - | - | 4,058 | ||||||||||||||||||
| Diluted earnings per share (GAAP) | $ | 1.05 | $ | 0.26 | $ | 0.37 | $ | 2.39 | $ | 4.07 | $ | 0.92 | $ | 0.32 | $ | - | $ | - | $ | 1.24 | ||||||||
| Adjusted dilutive earnings/(loss) per share (Non-GAAP) | $ | (0.08 | ) | $ | 0.36 | $ | 0.37 | $ | 2.42 | $ | 3.08 | $ | 1.16 | $ | 0.65 | $ | - | $ | - | $ | 1.81 |