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STRATTEC SECURITY CORPORATION Reports Fiscal 2023 Fourth Quarter and Full Year Operating Results
MILWAUKEE, Aug. 10, 2023 (GLOBE NEWSWIRE) -- STRATTEC SECURITY CORPORATION (“STRATTEC” or the “Company”) (NASDAQ:STRT) today reported operating results for
About this update from Strattec Security Corporation
[{"type":"text","content":"MILWAUKEE, Aug. 10, 2023 (GLOBE NEWSWIRE) -- STRATTEC SECURITY CORPORATION (“STRATTEC” or the “Company”) (NASDAQ:STRT) today reported operating results for the fiscal fourth quarter ended July 2, 2023. Despite higher net sales, the comparative current year fourth quarter operating profit results were lower than the results in the same period for the prior year due to higher manufacturing input costs and a stronger Mexican Peso against the U.S. dollar, which was partially offset by lower engineering costs associated with a customer reimbursement of engineering development costs. Fourth Quarter OverviewNet sales for the fourth quarter ended July 2, 2023 were $132.2 million, compared to net sales of $123.1 million for the fourth quarter ended July 3, 2022. Net loss was $2.7 million in the current year fourth quarter, compared to net income of $384,000 in the prior year fourth quarter. Diluted loss per share for the current year fourth quarter was $0.69 compared to diluted earnings per share of $0.10 in the prior year fourth quarter. The current year fourth quarter included a $4.7 million net loss associated with an Equity Restructuring Agreement (described below) equating to a loss per share of $1.19. On June 30th, the Company announced that it had entered into and subsequently completed the transactions contemplated by an Equity Restructuring Agreement (Restructuring Agreement) between the Company and WITTE Automotive GmbH (WITTE) related to both the Company's Vehicle Access Systems Technologies LLC (VAST LLC) joint venture and its STRATTEC Power Access LLC (SPA) joint venture. Under the terms of the Restructuring Agreement, the Company agreed to sell to WITTE its one-third interest in VAST LLC for a net purchase price of $18,500,000 plus the Company received ownership of: (1) WITTE's 20% minority interest in STRATTEC Power Access LLC (SPA); and (2) the net assets of VAST LLC's Korea branch office, which now operates as a newly registered Korea branch of the Company. Of the aforementioned $4.7 million net loss for the Equity Restructuring Agreement, $4.4 million was related to tax effects, primarily a $2.2 million China non-resident capital gain tax and a valuation allowance of $1.4 million related to our assessment of the future realization of U.S. capital loss carryforwards. Full Year Earnings OverviewFor the year ended July 2, ...