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STRATTEC SECURITY CORPORATION Reports Fiscal 2020 First Quarter Operating Results Including Non-Cash Compensation Expense Charge
MILWAUKEE, Wis. , Oct. 24, 2019 (GLOBE NEWSWIRE) -- STRATTEC SECURITY CORPORATION (“STRATTEC” or the “Company”) (NASDAQ:STRT) today reported operating results
About this update from Strattec Security Corporation
[{"type":"text","content":"MILWAUKEE, Wis. , Oct. 24, 2019 (GLOBE NEWSWIRE) -- STRATTEC SECURITY CORPORATION (“STRATTEC” or the “Company”) (NASDAQ:STRT) today reported operating results for the fiscal first quarter ended September 29, 2019.\n First Quarter Highlights Net sales for the current year first quarter were $120.0 million, representing a 2.4% increase from net sales of $117.2 million in the prior year first quarter. The impact of the General Motors UAW strike reduced the current quarter sales by an estimated $3.0 million. GAAP net income and diluted earnings per share were $1,244,000 and $0.33 respectively, compared to GAAP net income of $3.5 million and $0.93 earnings per share in the comparable prior year period. Excluding the impact of the non-cash compensation expense charge of $2.2 million incurred during the current year quarter, which is described below, adjusted first quarter net income was $2.9 million and $0.79 diluted earnings per share compared to $3.5 million and $0.93 diluted earnings per share in the prior year first quarter. Prior first quarter results adjusted to exclude a one-time favorable tax adjustment that increased the prior year quarter diluted earnings per share by $0.10 or would have resulted in adjusted diluted earnings per share of $0.83. Non-cash compensation charges are related to the future transfer of the excess plan assets remaining in the STRATTEC pension plan, which was terminated during our fiscal year ending June 30, 2019. The excess plan assets will be transferred to the STRATTEC defined contribution plan in December 2019. STRATTEC will also incur a similar non-cash compensation charge in the second quarter ending December 29, 2019, which should be the last remaining such compensation charge arising in connection with completing the full termination of the STRATTEC pension plan. The GAAP based non-adjusted decrease in Gross Profit margin in the current year quarter compared to the prior year quarter was attributed to a $1,366,000 non-cash compensation expense charge incurred during the current year quarter. The GAAP based non-adjusted increase in Selling, Engineering and Administrative expenses in the current year quarter compared to the prior year quarter was primarily attributed to an $862,000 non-cash compensation charge incurred during the current year quarter. During the current year quarter borrowings o...