Strattec Security Corporation (STRT) has reported 88.30 percent plunge in profit for the quarter ended Jan. 01, 2017. The company has earned $0.40 million, or $0.11 a share in the quarter, compared with $3.40 million, or $0.93 a share for the same period last year. Revenue during the quarter dropped 3.48 percent to $98.94 million from $102.51 million in the previous year period. Gross margin for the quarter contracted 452 basis points over the previous year period to 13.64 percent. Total expenses were 97.81 percent of quarterly revenues, up from 92.77 percent for the same period last year. That has resulted in a contraction of 504 basis points in operating margin to 2.19 percent.
Operating income for the quarter was $2.17 million, compared with $7.41 million in the previous year period.
Frank Krejci, president and chief executive officer commented: "After winning record amounts of new business last fiscal year, we are faced with additional costs in executing new programs which have a negative impact now, but should create positive results when those programs go into production. We are also actively adding new capital equipment, building a new facility in Leon, Mexico, plus investing in people and manufacturing processes to improve quality which will benefit us in the future. Earnings are currently being impacted for these reasons."
Operating cash flow improves significantlyStrattec Security Corporation has generated cash of $10 million from operating activities during the first half, up 210.59 percent or $6.78 million, when compared with the last year period. The company has spent $17.75 million cash to meet investing activities during the first six months as against cash outgo of $8.46 million in the last year period.
Cash flow from financing activities was $0.33 million for the first six months as against cash outgo of $1.92 million in the last year period.
Cash and cash equivalents stood at $8.19 million as on Jan. 01, 2017, down 54.30 percent or $9.73 million from $17.92 million on Dec. 27, 2015.
Working capital declines
Strattec Security Corporation has witnessed a decline in the working capital over the last year. It stood at $60.48 million as at Jan. 01, 2017, down 20.12 percent or $15.23 million from $75.71 million on Dec. 27, 2015. Current ratio was at 1.99 as on Jan. 01, 2017, down from 2.12 on Dec. 27, 2015.
Cash conversion cycle (CCC) has decreased to 39 days for the quarter from 62 days for the last year period. Days sales outstanding went up to 53 days for the quarter compared with 52 days for the same period last year.
Days inventory outstanding has decreased to 21 days for the quarter compared with 47 days for the previous year period. At the same time, days payable outstanding went down to 35 days for the quarter from 38 for the same period last year.
Debt increases substantially
Strattec Security Corporation has witnessed an increase in total debt over the last one year. It stood at $20 million as on Jan. 01, 2017, up 100 percent or $10 million from $10 million on Dec. 27, 2015. Strattec Security Corporation has witnessed an increase in long-term debt over the last one year. Total debt was 8.31 percent of total assets as on Jan. 01, 2017, compared with 4.10 percent on Dec. 27, 2015. Debt to equity ratio was at 0.13 as on Jan. 01, 2017, up from 0.06 as on Dec. 27, 2015. Interest coverage ratio deteriorated to 22.10 for the quarter from 322.35 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
