Business
STRATTEC SECURITY CORPORATION Reports Fiscal 2020 Fourth Quarter and Full Year Operating Results
MILWAUKEE, Aug. 06, 2020 (GLOBE NEWSWIRE) -- STRATTEC SECURITY CORPORATION (NASDAQ:STRT) today reported operating results for the fiscal fourth quarter and
About this update from Strattec Security Corporation
[{"type":"text","content":"MILWAUKEE, Aug. 06, 2020 (GLOBE NEWSWIRE) -- 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.\n 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 ...