Financial Performance - Net sales for the third quarter were $144.1 million, an increase of $3.3 million, or 2.4%, driven by $2.5 million in price increases and $2.2 million from a favorable product mix [5]. - Net income attributable to STRATTEC was $5.4 million, or $1.32 per diluted share, compared to $1.5 million, or $0.37 per diluted share, in the prior-year period, representing a 260% increase in net income [9]. - Adjusted EBITDA for the quarter was $12.9 million, or 8.9% of sales, compared to $6.2 million, or 4.4%, in the prior-year period, reflecting a 450 basis point improvement [9]. - Gross profit increased by $8.4 million to $23.1 million, with gross margin expanding by 560 basis points to 16.0% [6]. - Net income for the third quarter of fiscal 2025 was $5.7 million, significantly up from $1.1 million in the same quarter of fiscal 2024, marking a year-over-year increase of 407% [27]. - The company reported adjusted net sales of $413 million for fiscal 2025, compared to $537 million for fiscal 2024, showing a decrease of 23.2% [29]. Cash Flow and Liquidity - STRATTEC generated $20.7 million in cash from operations in the third quarter of fiscal 2025, compared to a cash use in the prior-year period [11]. - The company had $62.1 million in cash and cash equivalents as of March 30, 2025, up $19.5 million from the end of the second quarter [12]. - Cash and cash equivalents at the end of the period were $62.1 million, up from $25.4 million at the end of the previous fiscal year, indicating a substantial increase of 144% [27]. - The cash flow from investing activities showed a net cash used of $1.2 million in the third quarter of fiscal 2025, compared to $1.7 million in the same quarter of fiscal 2024 [27]. - STRATTEC's capital expenditures for the period were $1.2 million, reflecting a change in accounts payable of $1.2 million [28]. Cost Management and Restructuring - The company reduced its headcount by 12% in the first nine months of fiscal 2025, contributing to cost savings initiatives [3]. - Restructuring actions in Mexico are expected to generate approximately $5 million in annual cost reductions, with full realization anticipated by the first quarter of fiscal 2026 [10]. - Engineering, selling, and administrative expenses increased by $3.3 million, or 25.9%, to $16.0 million, reflecting investments in the business and higher compensation costs [7]. - The estimated annual impact of tariffs is approximately $9 million to $12 million, prompting the company to implement mitigation actions [3]. Balance Sheet and Equity - STRATTEC SECURITY CORPORATION reported total current assets of $287.2 million as of March 30, 2025, an increase from $253.8 million on June 30, 2024, representing a growth of 13.2% [24]. - Total current liabilities increased to $123.3 million as of March 30, 2025, compared to $118.3 million on June 30, 2024, reflecting a rise of 4.3% [24]. - STRATTEC's retained earnings increased to $261 million as of March 30, 2025, from $250.6 million on June 30, 2024, reflecting a growth of 4.5% [24]. - The company’s total shareholders' equity rose to $234.6 million as of March 30, 2025, compared to $225.6 million on June 30, 2024, an increase of 4% [24]. Other Financial Metrics - Adjusted EBITDA (Non-GAAP) was reported at $8.0 million, representing an increase from previous quarters [30]. - Net income attributable to STRATTEC (GAAP) was $5.2 million, with a diluted earnings per share of $1.05 [31]. - Adjusted net income attributable to STRATTEC (Non-GAAP) was $1.42 million, with adjusted diluted earnings per share of $0.36 [31]. - The company reported a 3.1% adjusted EBITDA as a percentage of adjusted net sales [30]. - Restructuring and similar charges amounted to $265,000, impacting overall financial performance [31]. - Executive transition costs were recorded at $973,000, indicating ongoing changes in management [31]. - Business transformation costs totaled $74,000, reflecting investments in operational improvements [31]. - The weighted average diluted shares outstanding were 4.06 million, showing a slight increase from previous periods [31]. - The company faced a retroactive FY23 one-time pricing recovery net impact of $(641,000) [30].
STRATTEC(STRT) - 2025 Q3 - Quarterly Results