Financial Performance - Net sales for the three months ended March 30, 2025, were $144.1 million, a 2.3% increase from $140.8 million for the same period in 2024[13] - Gross profit for the three months ended March 30, 2025, was $23.1 million, compared to $14.7 million for the same period in 2024, representing a significant increase of 57.5%[13] - Net income attributable to STRATTEC SECURITY CORPORATION for the three months ended March 30, 2025, was $5.4 million, up from $1.5 million in the same period in 2024, reflecting a growth of 258.5%[13] - The company reported a comprehensive income of $5.7 million for the three months ended March 30, 2025, compared to $2.2 million for the same period in 2024, an increase of 156.5%[13] - Earnings per share attributable to STRATTEC SECURITY CORPORATION for the three months ended March 30, 2025, were $1.34, compared to $0.38 for the same period in 2024, representing a growth of 252.6%[13] - Net income for the nine months ended March 30, 2025, was $10,857 million, compared to $6,361 million for the same period in 2024, representing a 70.5% increase[17] - Revenue for the nine months ended March 30, 2025, was $413,053 million, an increase of 4.6% from $394,711 million in the same period of 2024[26] - Gross profit for the nine months ended March 30, 2025, was $59.2 million, compared to $46.9 million for the same period in 2024, reflecting a significant increase of 26.3%[13] Cash and Liquidity - Cash and cash equivalents rose to $62.1 million as of March 30, 2025, compared to $25.4 million as of June 30, 2024, indicating a growth of 144.4%[15] - The company reported a total cash and cash equivalents of $62,106 million at the end of the period, significantly up from $9,594 million at the end of March 31, 2024[17] - Net cash provided by operating activities was $41,501 million for the nine months ended March 30, 2025, compared to a net cash used of $7,223 million in the prior year[17] - The company had no borrowings outstanding under the $40.0 million STRATTEC revolving credit agreement as of March 30, 2025, indicating strong liquidity management[78] - The company believes that the combination of the revolving credit line, existing cash, and anticipated operating cash flows will be sufficient to meet future operating and capital expenditure needs[78] Expenses and Costs - Engineering, selling, and administrative expenses increased to $16.0 million for the three months ended March 30, 2025, compared to $12.7 million for the same period in 2024, reflecting a rise of 25.5%[13] - The company incurred restructuring costs of $0.8 million and $1.1 million for the three and nine months ended March 30, 2025, respectively[34] - The company’s depreciation expense for the nine months ended March 30, 2025, was $10,952 million, down from $12,774 million in the same period of 2024[17] - The company incurred warranty payments of $485,000 during the three months ended March 30, 2025[39] - The company estimates an annual impact of $9-$12 million increase in cost of goods sold due to additional tariffs[56] Shareholders' Equity and Liabilities - The company’s total shareholders' equity increased to $234.6 million as of March 30, 2025, compared to $225.6 million as of June 30, 2024, reflecting a growth of 4.4%[15] - The company’s total liabilities increased to $123.3 million as of March 30, 2025, from $118.3 million as of June 30, 2024, an increase of 4.2%[15] - The warranty reserve balance at the end of the period was $10,745,000, with a provision charged to expense of $284,000 for the three months ended March 30, 2025[39] - The restructuring reserve balance at the end of the period was $578,000, with a restructuring charge of $809,000 for the three months ended March 30, 2025[35] Operational Insights - The company is focusing on improving profitability and sustainable sales growth through upgraded systems, processes, and enhanced productivity in manufacturing operations[54] - The company is reviewing its product portfolio to optimize its cost structure and enhance working capital management[54] - North American light vehicle production is expected to decline by approximately 6-8% in fiscal 2026, with a recovery anticipated in fiscal 2027 and 2028[55] - The company achieved a year-to-date sales growth of 5%, driven by new program launches, pricing actions, and increased volumes[55] Compliance and Governance - The Company maintained compliance with all financial covenants as of March 30, 2025[36] - The company was in compliance with all covenants under its credit facilities as of March 30, 2025[78]
STRATTEC(STRT) - 2025 Q3 - Quarterly Report