STRATTEC SECURITY CORP Files 10-Q for Period Ending December 31, 2023

TL;DR

<b>STRATTEC SECURITY CORP filed its Q2 2024 10-Q report, detailing financial activities up to December 31, 2023.</b>

AI Summary

STRATTEC SECURITY CORP (STRT) filed a Quarterly Report (10-Q) with the SEC on February 8, 2024. STRATTEC SECURITY CORP filed a 10-Q report for the period ending December 31, 2023. The filing covers the second quarter of fiscal year 2024. Key dates mentioned include October 1, 2023, as the start of the reporting period and December 31, 2023, as the end. The company's fiscal year ends on June 30. STRATTEC SECURITY CORP is located at 3333 WEST GOOD HOPE ROAD, MILWAUKEE, WI 53209.

Why It Matters

For investors and stakeholders tracking STRATTEC SECURITY CORP, this filing contains several important signals. This 10-Q filing provides investors with a crucial update on STRATTEC SECURITY CORP's financial performance and position for the second quarter of fiscal year 2024. The detailed financial information within the report allows stakeholders to assess the company's operational health, profitability, and any potential risks or opportunities.

Risk Assessment

Risk Level: medium — STRATTEC SECURITY CORP shows moderate risk based on this filing. The company operates in the automotive parts industry, which is subject to cyclical demand and intense competition, as indicated by its SIC code 3714 (MOTOR VEHICLE PARTS & ACCESSORIES).

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-Q to understand STRATTEC SECURITY CORP's current financial health and future prospects.

Key Numbers

• 20231231 — CONFORMED PERIOD OF REPORT (Fiscal Period End Date)
• 20240208 — FILED AS OF DATE (Filing Date)
• Q2 2024 — Quarter (Fiscal Quarter)
• 0630 — FISCAL YEAR END (Annual Fiscal Year End Month/Day)

Key Players & Entities

• STRATTEC SECURITY CORP (company) — FILER
• STRATTEC SECURITY CORP (company) — COMPANY CONFORMED NAME
• MOTOR VEHICLE PARTS & ACCESSORIES (company) — STANDARD INDUSTRIAL CLASSIFICATION
• 3333 WEST GOOD HOPE ROAD (company) — BUSINESS ADDRESS
• MILWAUKEE (company) — BUSINESS ADDRESS CITY
• WI (company) — BUSINESS ADDRESS STATE
• 53209 (company) — BUSINESS ADDRESS ZIP
• Stellantis (company) — Customer Mentioned

Forward-Looking Statements

• STRATTEC's profitability will continue to be challenged by rising operational costs in the near term. (STRATTEC SECURITY CORP) — medium confidence, target: 2024-06-30

FAQ

Risk Factors

• Market Conditions [medium — market]: The company operates in the automotive industry, which is subject to fluctuations in demand and economic conditions.
• Supply Chain and Manufacturing [medium — operational]: Disruptions in the supply chain or manufacturing processes could impact the company's ability to meet customer demand.
• Customer Concentration [medium — financial]: Reliance on a few key customers, such as Stellantis, poses a risk if those relationships are negatively impacted.

Key Dates

• 2023-12-31: End of Reporting Period — Covers financial results for Q2 2024.
• 2024-02-08: Filing Date — Date the 10-Q was officially submitted to the SEC.

Key Financial Figures

• $0.01 — ticable date. Common stock, par value $0.01 per share: 4,067,570 shares outstanding

Filing Documents

• strt-20231231.htm (10-Q) — 2073KB
• strt-ex10_1.htm (EX-10.1) — 22KB
• strt-ex31_1.htm (EX-31.1) — 14KB
• strt-ex31_2.htm (EX-31.2) — 14KB
• strt-ex32.htm (EX-32) — 12KB
• 0000950170-24-012813.txt (&nbsp;) — 11087KB
• strt-20231231.xsd (EX-101.SCH) — 1317KB
• strt-20231231_htm.xml (XML) — 2620KB

- FINANCIAL INFORMATION

Part I - FINANCIAL INFORMATION Item 1

Financial Statements

Financial Statements Condensed Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) (Unaudited) 3 Condensed Consolidated Balance Sheets (Unaudited) 4 Condensed Consolidated Statements of Cash Flows (Unaudited) 5 Notes to Condensed Consolidated Financial Statements (Unaudited) 6 - 20 Item 2

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 21 - 29 Item 3

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 30 Item 4

Controls and Procedures

Controls and Procedures 30

- OTHER INFORMATION

Part II - OTHER INFORMATION Item 1

Legal Proceedings

Legal Proceedings 31 Item 1A

Risk Factors

Risk Factors 31 Item 2 Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities 31 Item 3 Defaults Upon Senior Securities 31 Item 4 Mine Safety Disclosures 31 Item 5 Other Information 31 Item 6 Exhibits 32 PROSPECTIVE INFORMATION A number of the matters and subject areas discussed in this Form 10-Q 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," or the negative of these terms or words of similar meaning. These statements include expected future financial results, product offerings, global expansion, liquidity needs, financing ability, planned capital expenditures, management's or the Company's expectations and beliefs, and similar matters discussed in this Form 10-Q. The discussion of such matters and subject areas contained herein is qualified by the inherent risks and uncertainties surrounding future expectations generally, and also may materially differ from the Company's actual future experience. The Company's business, operations and financial performance are subject to certain risks and uncertainties, which could result in material differences in actual results from the Company's current expectations. These risks and uncertainties include, but are not limited to, 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 customers' 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 po

Financial Statements

Item 1 Financial Statements STRATTEC SECURITY CORPORATION AND SUBSIDIARIES Condensed Consolidated Statement s of Income (Loss) and Comprehensive Income (Loss) (In Thousands, Except Per Share Amounts) (Unaudited) Three Months Ended Six Months Ended December 31, 2023 January 1, 2023 December 31, 2023 January 1, 2023 Net sales $ 118,532 $ 113,184 $ 253,938 $ 233,544 Cost of goods sold 105,035 105,797 221,721 213,661 Gross profit 13,497 7,387 32,217 19,883 Engineering, selling and administrative expenses 13,439 12,081 26,053 24,781 Income (loss) from operations 58 ( 4,694 ) 6,164 ( 4,898 ) Equity (loss) earnings of joint ventures ( 4 ) 588 ( 269 ) 1,115 Interest expense ( 219 ) ( 196 ) ( 439 ) ( 325 ) Interest income 107 — 194 — Other income (expense), net 1,102 52 1,236 ( 241 ) Income (loss) before provision for income taxes and non-controlling interest 1,044 ( 4,250 ) 6,886 ( 4,349 ) Provision (benefit) for income taxes 264 ( 1,735 ) 1,651 ( 1,771 ) Net income (loss) 780 ( 2,515 ) 5,235 ( 2,578 ) Net (loss) income attributable to non- controlling interest ( 242 ) ( 676 ) 48 ( 864 ) Net income (loss) attributable to STRATTEC SECURITY CORPORATION $ 1,022 $ ( 1,839 ) $ 5,187 $ ( 1,714 ) Comprehensive income (loss): Net income (loss) $ 780 $ ( 2,515 ) $ 5,235 $ ( 2,578 ) Pension and postretirement plans, net of tax 47 70 93 140 Currency translation adjustments 1,014 429 365 ( 253 ) Other comprehensive income (loss), net of tax 1,061 499 458 ( 113 ) Comprehensive income (loss) 1,841 ( 2,016 ) 5,693 ( 2,691 ) Comprehensive income (loss) attributable to non-controlling interest 170 ( 207 ) 190 ( 339 ) Comprehensive income (loss) attributable to STRATTEC SECURITY CORPORATION

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View this 10-Q filing on SEC EDGAR