effective access control for vehicles
around the world. And as the security
requirements of the auto industry
evolve, we continue to respond with
innovation, reliability and enhanced
security. The four vehicles pictured
on the cover represent the highest
STRATTEC content vehicles produced
by each of our major automotive
customers. They contain our
traditional lockset product, plus
in certain vehicles, ignition lock
housings and/or rear compartment
latch mechanisms.
LETTER TO THE SHAREHOLDERS | 2 |
FINANCIAL HIGHLIGHTS | 4 |
COMPANY DESCRIPTION | 5 |
STRATTEC EQUIPPED VEHICLE LIST | 10 |
MANAGEMENT’S DISCUSSION AND ANALYSIS | 11 |
FINANCIAL STATEMENTS | 18 |
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | 31 |
REPORT OF MANAGEMENT | 31 |
FINANCIAL SUMMARY | 32 |
DIRECTORS / OFFICERS / SHAREHOLDERS’ INFORMATION | 33 |
LETTER TO THE SHAREHOLDERS |
2 | ||
LETTER TO THE SHAREHOLDERS |
3 | ||
FINANCIAL HIGHLIGHTS (IN MILLIONS) |
2004 | 2003 | 2002 | |
Net Sales | $195.6 | $196.8 | $207.3 |
Gross Profit | 47.5 | 45.4 | 43.9 |
Income from Operations | 26.9 | 25.7 | 24.3 |
Net Income | 17.3 | 16.4 | 15.6 |
Total Assets | 137.2 | 118.1 | 121.6 |
Total Debt | - | - | - |
Shareholders' Equity | 89.9 | 69.1 | 74.7 |
2004 Net Income as Reported | $ | 17.3 | ||
Deferred Tax Provision | 1.4 | |||
Net Operating Profit After | ||||
Cash-Basis Taxes | $ | 18.7 |
Total Shareholders’ Equity as Reported at June 27, 2004 | $89.9 |
Current Interest Bearing Assets | (57.3) |
Long-Term Liabilities | 12.1 |
Other | (0.5) |
Net Capital Employed at June 27, 2004 | 44.2 |
Impact of 12 Month Average | 7.5 |
Average Monthly Net Capital Employed | $51.7 |
EVA is a registered trademark of Stern, Stewart & Co.
4 | ||
COMPANY DESCRIPTION |
5 | ||
COMPANY DESCRIPTION |
6 | ||
COMPANY DESCRIPTION |
7 | ||
COMPANY DESCRIPTION |
8 | ||
COMPANY DESCRIPTION |
1. STRATTEC - Milwaukee, Wisconsin | 5. WITTE - Nejdek, Czech Republic |
2. STRATTEC - de Mexico, Juarez, Mexico | 6. WITTE-STRATTEC do Brasil - Sao Paulo, Brazil |
3. STRATTEC - Componentes Automotrices - Juarez, Mexico | 7. WITTE-STRATTEC China - Fuzhou, China |
4. WITTE - Velbert, Germany | 8. WITTE-STRATTEC Great Shanghai Co. - Shanghai, China |
9 | ||
VEHICLE LIST |
Buick Allure (Canada only) | Chrysler PT Cruiser | Lincoln LS |
Buick Century | Chrysler Sebring | Lincoln Town Car |
Buick LaCrosse | Dodge Magnum | Mercury Grand Marquis |
Buick LaSabre | Dodge Neon | Mercury Montego |
Cadillac XLR | Dodge Stratus | Mercury Sable |
Cadillac Deville/Concours | Dodge Viper | Mitsubishi Eclipse/ |
Chevrolet Cavalier | Ford Five Hundred | Eclipse Spyder |
Chevrolet Corvette | Ford Crown Victoria | Mitsubishi Galant |
Chevrolet Impala | Ford Freestyle | Pontiac Grand Am |
Chevrolet Malibu Classic | Ford GT | Pontiac Sunfire |
Chevrolet Monte Carlo | Ford Mustang | Saturn Ion |
Chrysler 300/300C | Ford Taurus | |
Chrysler Pacifica | Ford Thunderbird |
Buick Rainier | Dodge Caravan/ | GMC Yukon |
Buick Rendezvous | Grand Caravan | GMC Yukon XL |
Buick Terraza | Dodge Dakota Pickup | Hummer H2 |
Cadillac Escalade | Dodge Durango | Isuzu Ascender |
Cadillac Escalade ESV | Dodge Ram Pickup | Jeep Grand Cherokee |
Cadillac Escalade EXT | Ford Excursion | Jeep Liberty |
Chevrolet Astro | Ford Expedition | Jeep Wrangler/ |
Chevrolet Avalanche | Ford Explorer | Wrangler Unlimited |
Chevrolet Blazer | Ford Explorer Sport Trac | Lincoln Aviator |
Chevrolet Express Van | Ford F-Series Pickup | Lincoln Navigator |
Chevrolet Silverado Pickup | Ford F-Series Super Duty | Lincoln Town Truck |
Chevrolet SSR | Ford Ranger Pickup | (late introduction) |
Chevrolet Suburban | GMC Envoy/Envoy XL | Mazda B-Series Pickup |
Chevrolet Tahoe | GMC Envoy XUV | Mercury Mountaineer |
Chevrolet Trailblazer/ | GMC Jimmy | Mitsubishi Endeavor |
Trailblazer EXT | GMC Safari | Pontiac Montana |
Chevrolet Uplander | GMC Savana | Saturn Relay |
Chrysler Town & Country | GMC Sierra Pickup |
10 | ||
MANAGEMENT'S DISCUSSION AND ANALYSIS |
11 | ||
MANAGEMENT'S DISCUSSION AND ANALYSIS |
12 | ||
MANAGEMENT'S DISCUSSION AND ANALYSIS |
Payments Due By Period | ||||||||||||||||
Contractual Obligation | Total | Less Than1 Year | 1-3 Years | 3-5 Years | More than 5 Years | |||||||||||
| ||||||||||||||||
Operating Leases | $ | 2,096 | $ | 576 | $ | 974 | $ | 546 | $ | - | ||||||
Purchase Obligations | 2,821 | 2,821 | - | - | - | |||||||||||
Total | $ | 4,917 | $ | 3,397 | $ | 974 | $ | 546 | $ | - | ||||||
13 | ||
MANAGEMENT'S DISCUSSION AND ANALYSIS |
14 | ||
MANAGEMENT'S DISCUSSION AND ANALYSIS |
15 | ||
MANAGEMENT'S DISCUSSION AND ANALYSIS |
16 | ||
MANAGEMENT'S DISCUSSION AND ANALYSIS |
17 | ||
Years Ended | ||||||||||
June 27, 2004 | June 29, 2003 | June 30, 2002 | ||||||||
NET SALES | $ | 195,646 | $ | 196,827 | $ | 207,286 | ||||
Cost of goods sold | 148,159 | 151,468 | 163,370 | |||||||
GROSS PROFIT | 47,487 | 45,359 | 43,916 | |||||||
Engineering, selling, and administrative expenses | 20,624 | 19,613 | 19,644 | |||||||
INCOME FROM OPERATIONS | 26,863 | 25,746 | 24,272 | |||||||
Interest income | 426 | 369 | 538 | |||||||
Interest expense | - | - | - | |||||||
Other income (expense), net | 362 | (156 | ) | (42 | ) | |||||
INCOME BEFORE PROVISION FOR INCOME TAXES | 27,651 | 25,959 | 24,768 | |||||||
Provision for income taxes | 10,369 | 9,605 | 9,164 | |||||||
NET INCOME | $ | 17,282 | $ | 16,354 | $ | 15,604 | ||||
EARNINGS PER SHARE: BASIC | $ | 4.56 | $ | 4.32 | $ | 3.80 | ||||
DILUTED | $ | 4.49 | $ | 4.24 | $ | 3.73 | ||||
AVERAGE SHARES OUTSTANDING: BASIC | 3,788 | 3,788 | 4,109 | |||||||
DILUTED | 3,849 | 3,855 | 4,185 |
18 | ||
June 27, 2004 | June 29, 2003 | ||||||
ASSETS CURRENT ASSETS: Cash and cash equivalents | $ | 54,231 | $ | 29,902 | |||
Receivables, less allowance for doubtful accounts of $250 at June 27, 2004 and June 30, 2003 | 30,931 | 31,173 | |||||
Inventories | 8,361 | 7,884 | |||||
Customer tooling in progress | 679 | 3,573 | |||||
Deferred income taxes | 1,959 | 1,923 | |||||
Income taxes refundable | - | 638 | |||||
Other current assets | 8,265 | 5,993 | |||||
Total current assets | 104,426 | 81,086 | |||||
DEFERRED INCOME TAXES | - | 1,973 | |||||
INVESTMENT IN JOINT VENTURES | 1,336 | 1,141 | |||||
PROPERTY, PLANT, AND EQUIPMENT, NET | 31,428 | 33,894 | |||||
$ | 137,190 | $ | 118,094 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES: Accounts payable | $ | 18,787 | $ | 13,990 | |||
Accrued liabilities: Payroll and benefits | 11,067 | 11,205 | |||||
Environmental | 2,710 | 2,720 | |||||
Income taxes | 963 | - | |||||
Other | 1,757 | 1,894 | |||||
Total current liabilities | 35,284 | 29,809 | |||||
BORROWINGS UNDER REVOLVING CREDIT FACILITY | - | - | |||||
DEFERRED INCOME TAXES | 543 | - | |||||
ACCRUED PENSION OBLIGATIONS | 6,487 | 14,328 | |||||
ACCRUED POSTRETIREMENT OBLIGATIONS | 5,024 | 4,862 | |||||
SHAREHOLDERS’ EQUITY: Common stock, authorized 12,000,000 shares $.01 par value, issued 6,754,892 shares at June 27, 2004 and 6,608,642 shares at June 29, 2003 | 68 | 66 | |||||
Capital in excess of par value | 70,415 | 63,830 | |||||
Retained earnings | 130,230 | 112,948 | |||||
Accumulated other comprehensive loss | (5,385 | ) | (6,891 | ) | |||
Less: Treasury stock at cost (2,926,687 shares at June 27, 2004 and 2,850,390 shares at June 29, 2003) | (105,476 | ) | (100,858 | ) | |||
Total shareholders’ equity | 89,852 | 69,095 | |||||
$ | 137,190 | $ | 118,094 | ||||
19 | ||
Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Comprehensive Income | ||||||||||||||
BALANCE, JULY 1, 2001 | $ | 62 | $ | 49,545 | $ | 80,990 | $ | (1,749 | ) | $ | (68,838 | ) | |||||||
Net Income | - | - | 15,604 | - | - | $ | 15,604 | ||||||||||||
Translation adjustments | - | - | - | (691 | ) | - | (691 | ) | |||||||||||
Comprehensive income | $ | 14,913 | |||||||||||||||||
Purchase of common stock | - | - | - | - | (10,165 | ) | |||||||||||||
Exercise of stock options and employee stock purchases, including tax benefit of $1,727 | 3 | 9,880 | - | - | 26 | ||||||||||||||
BALANCE, JUNE 30,2002 | 65 | 59,425 | 96,594 | (2,440 | ) | (78,977 | ) | ||||||||||||
Net Income | - | - | 16,354 | - | - | 16,354 | |||||||||||||
Translation adjustments | - | - | - | (153 | ) | - | (153 | ) | |||||||||||
Minimum pension liability, net of tax of $2,634 | - | - | - | (4,298 | ) | - | (4,298 | ) | |||||||||||
Comprehensive income | $ | 11,903 | |||||||||||||||||
Purchase of common stock | - | - | - | - | (21,897 | ) | |||||||||||||
Exercise of stock options and employee stock purchases, including tax benefit of $766 | 1 | 4,405 | - | - | 16 | ||||||||||||||
BALANCE, JUNE 29,2003 | 66 | 63,830 | 112,948 | (6,891 | ) | (100,858 | ) | ||||||||||||
Net Income | - | - | 17,282 | - | - | 17,282 | |||||||||||||
Translation adjustments | - | - | - | (270 | ) | - | (270 | ) | |||||||||||
Minimum pension liability, net of tax of $1,088 | - | - | - | 1,776 | - | 1,776 | |||||||||||||
Comprehensive income | $ | 18,788 | |||||||||||||||||
Purchase of common stock | - | - | - | - | (4,633 | ) | |||||||||||||
Exercise of stock options and employee stock purchases, including tax benefit of $1,368 | 2 | 6,585 | - | - | 15 | ||||||||||||||
BALANCE, JUNE 27, 2004 | $ | 68 | $ | 70,415 | $ | 130,230 | $ | (5,385 | ) | $ | (105,476 | ) | |||||||
20 | ||
Years Ended | ||||||||||
June 27, 2004 | June 29, 2003 |
| June 30, 2002 | |||||||
CASH FLOWS FROM OPERATINGACTIVITIES Net Income | $ | 17,282 | $ | 16,354 | $ | 15,604 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: Depreciation | 7,704 | 7,854 | 8,270 | |||||||
Loss on disposition of property, plant and equipment | 116 | 227 | 115 | |||||||
Deferred income taxes | 1,393 | 1,229 | (391 | ) | ||||||
Change in operating assets and liabilities: (Increase) decrease in receivables | 122 | (3,350 | ) | (771 | ) | |||||
(Increase) decrease in inventories | (477 | ) | 358 | 363 | ||||||
(Increase) decrease in other assets | 1,047 | (1,141 | ) | (2,587 | ) | |||||
Increase (decrease) in accounts payable and accrued liabilities | 954 | (4,757 | ) | 5,691 | ||||||
Tax benefit from options exercised | 1,368 | 766 | 1,727 | |||||||
Other, net | (144 | ) | 65 | (417 | ) | |||||
Net cash provided by operating activities | 29,365 | 17,605 | 27,604 | |||||||
CASH FLOWS FROM INVESTINGACTIVITIES Investment in joint ventures | (125 | ) | (876 | ) | (690 | ) | ||||
Purchase of property, plant, and equipment | (5,523 | ) | (3,772 | ) | (5,297 | ) | ||||
Proceeds received on sale of property, plant, and equipment | 12 | 230 | 24 | |||||||
Net cash used in investing activities | (5,636 | ) | (4,418 | ) | (5,963 | ) | ||||
CASH FLOWS FROM FINANCINGACTIVITIES Purchase of common stock | (4,633 | ) | (21,897 | ) | (10,165 | ) | ||||
Exercise of stock options | 5,233 | 3,656 | 8,182 | |||||||
Net cash provided by (used in) financing activities | 600 | (18,241 | ) | (1,983 | ) | |||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 24,329 | (5,054 | ) | 19,658 | ||||||
CASH AND CASH EQUIVALENTS Beginning of year | 29,902 | 34,956 | 15,298 | |||||||
End of year | $ | 54,231 | $ | 29,902 | $ | 34,956 | ||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Income taxes paid | $ | 5,950 | $ | 9,899 | $ | 6,544 | ||||
Interest paid | - | - | - |
21 | ||
NOTES TO FINANCIAL STATEMENTS
|
Balance, Beginning of Year | Provision Charged to Expense | Payments and Accounts Written Off | Balance, End of Year | |
Year ended June 27,2004 | $250 | $26 | $26 | $250 |
Year ended June 29, 2003 | $250 | $53 | $53 | $250 |
Year ended June 30, 2002 | $250 | $42 | $42 | $250 |
June 27, 2004 | June 29, 2003 | ||||||
Finished products | $ | 2,659 | $ | 2,269 | |||
Work in process | 4,620 | 4,460 | |||||
Purchased materials | 4,441 | 3,810 | |||||
LIFO adjustment | (3,359 | ) | (2,655 | ) | |||
$ | 8,361 | $ | 7,884 | ||||
22 | ||
NOTES TO FINANCIAL STATEMENTS
|
Classification | Expected Useful Lives | |
Land improvements Buildings and improvements Machinery and equipment | 20 years 20 to 35 years 3 to 10 years |
June 27, 2004 | June 29, 2003 | ||||||
Land | $ | 1,410 | $ | 1,410 | |||
Buildings and improvements | 11,987 | 11,720 | |||||
Machinery and equipment | 89,213 | 85,940 | |||||
102,610 | 99,070 | ||||||
Less: accumulated depreciation | (71,182 | ) | (65,176 | ) | |||
$ | 31,428 | $ | 33,894 | ||||
June 27, 2004 |
| June 29, 2003 |
| June 30, 2002 | ||||||
Minimum pension liability, net of tax | $ | 2,522 | $ | 4,298 | $ | - | ||||
Foreign currency translation | 2,863 | 2,593 | 2,440 | |||||||
$ | 5,385 | $ | 6,891 | $ | 2,440 | |||||
23 | ||
NOTES TO FINANCIAL STATEMENTS
|
Year Ended | ||||||||||
June 27, 2004 |
| June 29, 2003 |
| June 30, 2002 | ||||||
Net Income As reported | $ | 17,282 | $ | 16,354 | $ | 15,604 | ||||
Pro forma compensation expense, net of tax | 889 | 735 | 649 | |||||||
Pro forma | $ | 16,393 | $ | 15,619 | $ | 14,955 | ||||
Basic earnings per share As reported | $ | 4.56 | $ | 4.32 | $ | 3.80 | ||||
Pro forma | $ | 4.33 | $ | 4.12 | $ | 3.64 | ||||
Diluted earnings per share As reported | $ | 4.49 | $ | 4.24 | $ | 3.73 | ||||
Pro forma | $ | 4.30 | $ | 4.04 | $ | 3.59 |
Options Granted During | 2004 | 2003 | 2002 |
Weighted average grant date fair value: Options issued at grant date market value | $16.29 | $19.92 | $12.10 |
Options issued above grant date market value | $ 8.06 | $14.68 | $ 5.85 |
Assumptions: Risk free interest rates | 2.42% | 3.01% | 4.22% |
Expected volatility | 17.57% | 39.97% | 23.53% |
Expected term (in years) | 4.67 | 5.75 | 5.67 |
Number of Options Outstanding/Exercisable | Weighted Average Exercise Price Outstanding/Exercisable | Weighted Average Remaining Contractual Life (In Years) | |
$11.75-$17.05 | 40,000/40,000 | $12.89/$12.89 | 1.0 |
$31.95-$37.58 | 6,250/6,250 | $34.47/$34.47 | 7.2 |
$43.07-$45.85 | 101,625/4,000 | $44.72/$45.39 | 2.3 |
Over $45.85 | 239,660/25,500 | $57.85/$53.07 | 5.6 |
|
| ||
$49.32/$29.91 | |||
24 | ||
NOTES TO FINANCIAL STATEMENTS
|
2004 | 2003 | 2002 | ||||||||
Currentlypayable: Federal | $ | 6,882 | $ | 6,344 | $ | 6,895 | ||||
State | 1,496 | 1,409 | 1,635 | |||||||
Foreign | 598 | 623 | 1,025 | |||||||
8,976 | 8,376 | 9,555 | ||||||||
Deferred tax (benefit) provision | 1,393 | 1,229 | (391 | ) | ||||||
$ | 10,369 | $ | 9,605 | $ | 9,164 | |||||
25 | ||
NOTES TO FINANCIAL STATEMENTS
|
2004 |
| 2003 |
| 2002 | ||||||
U.S. statutory rate | 35.0 | % | 35.0 | % | 35.0 | % | ||||
State taxes, net of federal tax benefit | 3.9 | 4.3 | 4.1 | |||||||
Foreign sales benefit | (.7 | ) | (.9 | ) | (.9 | ) | ||||
Other | (.7 | ) | (1.4 | ) | (1.2 | ) | ||||
37.5 | % | 37.0 | % | 37.0 | % | |||||
June 27, 2004 | June 29, 2003 | ||||||
Deferred income taxes-current: Customer tooling | $ | 95 | $ | 133 | |||
Payroll-related accruals | 449 | 485 | |||||
Environmental reserve | 1,030 | 1,033 | |||||
Other | 385 | 272 | |||||
$ | 1,959 | $ | 1,923 | ||||
Deferred income taxes-noncurrent: Accrued pension obligations | $ | 776 | $ | 2,661 | |||
Additional minimum pension liability | 1,546 | 2,634 | |||||
Accumulated depreciation | (4,774 | ) | (5,169 | ) | |||
Postretirement obligations | 1,909 | 1,847 | |||||
$ | (543 | ) | $ | 1,973 | |||
26 | ||
NOTES TO FINANCIAL STATEMENTS
|
Pension Benefits | Postretirement Benefits | ||||||||||||
2004 | 2003 | 2004 | 2003 | ||||||||||
CHANGE IN BENEFIT OBLIGATION: Benefit obligation at beginning of year | $ | 54,960 | $ | 39,420 | $ | 9,584 | $ | 5,742 | |||||
Service cost | 2,198 | 1,802 | 316 | 268 | |||||||||
Interest Cost | 3,253 | 2,821 | 564 | 407 | |||||||||
Actuarial (gain) loss | (1,261 | ) | 12,187 | 354 | 3,729 | ||||||||
Benefits paid | (1,525 | ) | (1,270 | ) | (962 | ) | (562 | ) | |||||
Benefit obligation at end of year | $ | 57,625 | $ | 54,960 | $ | 9,856 | $ | 9,584 | |||||
CHANGE IN PLAN ASSETS: Fair value of plan assets at beginning of year | $ | 32,813 | $ | 28,495 | $ | - | $ | - | |||||
Actual return on plan assets | 4,677 | 472 | - | - | |||||||||
Employer contribution | 7,000 | 5,116 | 962 | 562 | |||||||||
Benefits paid | (1,525 | ) | (1,270 | ) | (962 | ) | (562 | ) | |||||
Fair value of plan assets at end of year | 42,965 | 32,813 | - | - | |||||||||
Funded status | (14,660 | ) | (22,147 | ) | (9,856 | ) | (9,584 | ) | |||||
Unrecognized net loss | 12,378 | 15,045 | 4,708 | 4,589 | |||||||||
Unrecognized prior service cost | 289 | 297 | 124 | 133 | |||||||||
Unrecognized net transition asset | (49 | ) | (199 | ) | - | - | |||||||
Net amount recognized | $ | (2,042 | ) | $ | (7,004 | ) | $ | (5,024 | ) | $ | (4,862 | ) | |
AMOUNTS RECOGNIZED IN CONSOLIDATED BALANCE SHEETS: Accrued benefit liability | $ | (6,487 | ) | $ | (14,328 | ) | |||||||
Additional minimum liability: Intangible asset | 377 | 392 | |||||||||||
Accumulated other comprehensive loss (pre-tax) | 4,068 | 6,932 | |||||||||||
Net amount recognized | $ | (2,042 | ) | $ | (7,004 | ) | |||||||
June 27, 2004 |
| June 29,2003 |
| June 27,2004 |
| June 29,2003 | |||||||
WEIGHTED-AVERAGEASSUMPTIONS Benefit Obligations: Discount rate | 6.25 | % | 6.0 | % | 6.25 | % | 6.0 | % | |||||
Rate of compensation increases | 3.5 | % | 3.5 | % | n/a | n/a | |||||||
Net Periodic Benefit Cost: Discount rate | 6.0 | % | 7.25 | % | 6.0 | % | 7.25 | % | |||||
Expected return on plan assets | 8.5 | % | 8.5 | % | n/a | n/a | |||||||
Rate of compensation increases | 3.5 | % | 4.0 | % | n/a | n/a |
27 | ||
NOTES TO FINANCIAL STATEMENTS
|
Pension Benefits | Postretirement Benefits | ||||||||||||||||||
2004 | 2003 | 2002 | 2004 | 2003 | 2002 | ||||||||||||||
COMPONENTS OF NET PERIODIC BENEFIT COST: Service cost | $ | 2,198 | $ | 1,802 | $ | 1,989 | $ | 316 | $ | 268 | $ | 210 | |||||||
Interest cost | 3,253 | 2,821 | 2,826 | 564 | 407 | 326 | |||||||||||||
Expected return on plan assets | (3,459 | ) | (2,930 | ) | (2,717 | ) | - | - | - | ||||||||||
Amortization of prior service cost | 8 | 8 | 38 | 10 | 10 | 10 | |||||||||||||
Amortization of unrecognized net (gain) loss | 187 | (160 | ) | (87 | ) | 235 | 19 | - | |||||||||||
Amortization of net transition asset | (150 | ) | (150 | ) | (150 | ) | - | - | - | ||||||||||
Net periodic benefit cost | $ | 2,037 | $ | 1,391 | $ | 1,899 | $ | 1,125 | $ | 704 | $ | 546 | |||||||
1% Increase | 1% Decrease | |
Effect on total of service and interest cost components | $ 126 | ($109) |
Effect on postretirement benefit obligation | $1,103 | ($975) |
Target Allocation | June 27, 2004 | June 29, 2003 | |
Equity investments | 65% | 65% | 70% |
Fixed-Income Investments | 35% | 35% | 30% |
Total | 100% | 100% | 100% |
Pension | Postretirement | |
2005 | $ 1,584 | $1,049 |
2006 | 1,759 | 1,092 |
2007 | 1,893 | 1,169 |
2008 | 2,042 | 1,268 |
2009 | 2,212 | 1,369 |
2010-2014 | 15,452 | 8,685 |
28 | ||
NOTES TO FINANCIAL STATEMENTS
|
2004 | 2003 | 2002 | ||||||||
NetIncome | Shares | Per-ShareAmount | Net Income | Shares | Per-Share Amount | Net Income | Shares | Per-Share Amount | ||
Basic EPS | $17,282 | 3,788 | $4.56 | $16,354 | 3,788 | $4.32 | $15,604 | 4,109 | $3.80 | |
Stock Options |
| 61 | 67 | 76 | ||||||
|
|
|
|
|
|
|
| |||
Diluted EPS |
| $17,282 | 3,849 | $4.49 | $16,354 | 3,855 | $4.24 | $15,604 | 4,185 | $3.73 |
Shares | Exercise Price |
74,160 | $58.59 |
79,500 | $53.07 |
29 | ||
NOTES TO FINANCIAL STATEMENTS
|
Shares | Weighted Average Exercise Price | ||||||
Balance at July 1, 2001 | 623,970 | $ | 29.91 | ||||
Granted | 114,000 | $ | 42.51 | ||||
Exercised | 299,891 | $ | 27.07 | ||||
Terminated | 17,872 | $ | 41.82 | ||||
Balance at June 30, 2002 | 420,207 | $ | 34.85 | ||||
Granted | 167,500 | $ | 55.34 | ||||
Exercised | 112,862 | $ | 31.98 | ||||
Terminated | 27,060 | $ | 47.35 | ||||
Balance at June 29, 2003 | 447,785 | $ | 42.48 | ||||
Granted | 89,000 | $ | 61.33 | ||||
Exercised | 146,250 | $ | 35.43 | ||||
Terminated | 3,000 | $ | 53.07 | ||||
Balance at June 27, 2004 | 387,535 | $ | 49.39 | ||||
Exercisable as of: June 27, 2004 | 75,750 | $ | 29.91 | ||||
June 29, 2003 | 141,825 | $ | 27.19 | ||||
June 30, 2002 | 144,079 | $ | 19.56 | ||||
Available for grant as of June 27, 2004 | 242,973 |
2004 | 2003 | 2002 |
| |||||||
|
|
|
|
|
|
|
| |||
Export Sales |
|
| $34,352 |
|
| $26,180 |
|
| $27,025 |
|
Percent of Net Sales |
|
| 18% |
|
| 13% |
|
| 13% |
|
2004 | 2003 | 2002 | |||||||||||||||||
Sales | % | Sales | % | Sales | % | ||||||||||||||
General Motors Corporation | $ | 52,210 | 27 | % | $ | 60,951 | 31 | % | $ | 64,109 | 31 | % | |||||||
Ford Motor Company | 34,713 | 18 | % | 39,276 | 20 | % | 42,355 | 21 | % | ||||||||||
DaimlerChrysler Corporation | 41,965 | 21 | % | 34,628 | 18 | % | 37,940 | 18 | % | ||||||||||
Delphi Corporation | 30,155 | 15 | % | 28,939 | 14 | % | 29,500 | 14 | % | ||||||||||
$ | 159,043 | 81 | % | $ | 163,794 | 83 | % | $ | 173,904 | 84 | % | ||||||||
2004 | 2003 | ||||||||||||
Receivables | % | Receivables | % | ||||||||||
General Motors Corporation | $ | 8,223 | 26 | % | $ | 10,744 | 34 | % | |||||
Ford Motor Company | 3,379 | 11 | % | 3,544 | 11 | % | |||||||
DaimlerChrysler Corporation | 7,372 | 24 | % | 5,780 | 18 | % | |||||||
Delphi Corporation | 5,986 | 19 | % | 4,930 | 16 | % | |||||||
$ | 24,960 | 80 | % | $ | 24,998 | 79 | % | ||||||
30 | ||
REPORTS
|
/s/ Harold M. Stratton II | /s/ John G. Cahill | /s/ Partrick J. Hansen |
Harold M. Stratton II | John G. Cahill | Patrick J. Hansen |
Chairman and Chief OperatingOfficer | President and Chief FinancialOfficer | Vice President and Chief ExecutiveOfficer |
31 | ||
FINANCIAL SUMMARY
|
Fiscal Years | ||||||||||||||||
2004 | 2003 | 2002 | 2001 | 2000 | ||||||||||||
INCOME STATEMENT DATA | ||||||||||||||||
Net Sales | $ | 195,646 | $ | 196,827 | $ | 207,286 | $ | 202,973 | $ | 224,817 | ||||||
Gross Profit | 47,487 | 45,359 | 43,916 | 40,238 | 49,358 | |||||||||||
Engineering, selling and administrative expenses | 20, 624 | 19,613 | 19,644 | 19,676 | 20,254 | |||||||||||
Income from operations | 26,863 | 25,746 | 24,272 | 20,562 | 29,104 | |||||||||||
Interest income | 426 | 369 | 538 | 628 | 1,056 | |||||||||||
Interest expense | - | - | - | - | - | |||||||||||
Other income (expense), net | 362 | (156 | ) | (42 | ) | (514 | ) | 189 | ||||||||
Income before taxes | 27,651 | 25,959 | 24,768 | 20,676 | 30,349 | |||||||||||
Provision for income taxes | 10,369 | 9,605 | 9,164 | 7,650 | 11,836 | |||||||||||
Net income | $ | 17,282 | $ | 16,354 | $ | 15,604 | $ | 13,026 | $ | 18,513 | ||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 4.56 | $ | 4.32 | $ | 3.80 | $ | 3.02 | $ | 3.75 | ||||||
Diluted | 4.49 | 4.24 | 3.73 | 2.96 | 3.65 | |||||||||||
BALANCE SHEET DATA | ||||||||||||||||
Net working capital | $ | 69,142 | $ | 51,277 | $ | 50,722 | $ | 33,174 | $ | 32,500 | ||||||
Total assets | 137,190 | 118,094 | 121,640 | 101,648 | 108,982 | |||||||||||
Long-term liabilities | 12,054 | 19,190 | 15,448 | 15,145 | 14,132 | |||||||||||
Shareholders' Equity | 89,852 | 69,095 | 74,667 | 60,010 | 60,450 |
Earnings Per Share | Market Price Per Share | ||||||||
Quarter | Net Sales | Gross Profit | Net Income | Basic | Diluted | High | Low | ||
2004 | First | $44,420 | $10,458 | $3,582 | $0.95 | $0.94 | $56.25 | $47.74 | |
Second | 50,014 | 12,102 | 4,619 | 1.23 | 1.21 | 61.10 | 47.08 | ||
Third | 49,266 | 12,184 | 4,447 | 1.17 | 1.15 | 69.27 | 57.66 | ||
Fourth | 51,946 | 12,743 | 4,634 | 1.21 | 1.19 | 68.78 | 57.49 | ||
TOTAL | $195,646 | $47,487 | $17.282 | $4.56 | $4.49 | ||||
2003 | First | $47,906 | $11,353 | $4,181 | $1.08 | $1.06 | $56.97 | $34.00 | |
Second | 48,680 | 10,938 | 4,036 | 1.07 | 1.05 | 54.88 | 45.40 | ||
Third | 49,926 | 11,671 | 4,247 | 1.13 | 1.11 | 50.19 | 43.70 | ||
Fourth | 50,315 | 11,397 | 3,890 | 1.03 | 1.02 | 55.00 | 43.75 | ||
TOTAL | $196,827 | $45,359 | $16,354 | $4.32 | $4.24 | ||||
32 | ||
DIRECTORS/OFFICERS/SHAREHOLDER INFORMATION
|
33 | ||
AUTOMOTIVE ACCESS CONTROL PRODUCTS