Business
STRATTEC SECURITY CORPORATION Reports Fiscal 2020 Second Quarter Operating Results Including Non-Cash Compensation Expense Charge
MILWAUKEE, Wis., Jan. 23, 2020 (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., Jan. 23, 2020 (GLOBE NEWSWIRE) -- STRATTEC SECURITY CORPORATION (“STRATTEC” or the “Company”) (NASDAQ:STRT) today reported operating results for the fiscal second quarter ended December 29, 2019.\n Overview by STRATTEC President and CEO, Frank Krejci “We have experienced several non-cash charges in our last twelve months operating results as a result of terminating the STRATTEC defined benefit pension plan. Those charges are now behind us as of this quarter end on December 29, 2019. The termination of the defined benefit pension plan completes a multi-year effort to reduce significant balance sheet risk and earnings volatility of maintaining this benefit plan relative to the size of our overall Company financial position. We transferred the pension plan assets and our pension payment obligations to an outside insurer without making an additional contribution. During this quarter, we took the final step to complete the full termination of the STRATTEC pension plan.” “Additionally, the impact of the recent General Motors UAW strike reduced our sales in the second quarter by approximately $7 million and by approximately $10 million during the first six months of our fiscal 2020. Despite the weaker sales for the current year quarter, we were still able to reduce the borrowings under our debt facilities by $4 million during the quarter and a total of $10 million for the first six months of the current fiscal year due to our strong cash flow from operations. The sales outlook for STRATTEC during the remainder of our fiscal 2020 is anticipated to be stronger than the first six months of fiscal 2020 assuming a stable U.S. economy and a consistent mix of vehicles.” Second Quarter and Year to Date Highlights Net sales for the fiscal year 2020 second quarter were $106.3 million, representing a 5.8% decrease from net sales of $112.9 million in the prior year second quarter. For the six months ended December 29, 2019, net sales were $226.2 million compared to net sales of $230.1 million during the prior year six month period. As described above, the General Motors UAW strike adversely impacted our sales during both the three and six month periods ended December 29, 2019.GAAP net loss and diluted loss per share for the second quarter were $1,341,000 and $0.36 respectively, compared to GAAP net loss of $22.2 million and $5.96 ...