Raytech Corporation Announces Third Quarter Results for 2001
SHELTON, Conn.--Nov. 28, 2001--Raytech Corporation today announced net income for the thirteen-week period ended September 30, 2001 amounting to $881 thousand or $.02 per basic share as compared to $2.9 million or $.84 per basic share for the corresponding period in 2000.Sales for the thirteen-week period of $48.7 million were $8.0 million less than the recorded sales of $56.7 million for the thirteen-week period ended October 1, 2000. The poor United States economy, specifically its impact on the automobile original equipment manufacturers, accounts for a substantial portion of the shortfall. An operating loss for the thirteen-week period of $613 thousand compares unfavorably to the operating income recorded for the same period in the prior year of $6.2 million. The reduced sales for the period of$8.0 million was the largest cause of the reduced profit.
In April 2001 Raytech Corporation emerged from the protection of Bankruptcy Court under Chapter 11 of Title 11 of the United States Code. Raytech Corporation had been under the Chapter 11 protection since May 1989.
As of April 2, 2001, the Company adopted fresh-start reporting pursuant to the guidance provided by the American Institute of Certified Public Accountant's Statement of Position 90-7, "Financial Reporting by Entities in Reorganization Under the Bankruptcy Code" ("SOP 90-7"). The Effective Date of the Company's emergence from bankruptcy is considered to be the close of business on April 2, 2001 for financial reporting purposes. The periods presented prior to April 2, 2001 have been designated "Predecessor Company" and the periods subsequent to April 2, 2001 has been designated "Successor Company." In accordance with fresh-start reporting, all assets and liabilities were recorded at their respective fair market values.
Further, the Company, in accordance with SOP 90-7, has adopted those changes in accounting principles which will be required within the next twelve months. Specifically, the Company has adopted Statements of Financial Accounting Standards Nos. 141 - "Business Combinations" and 142 - "Goodwill and Other Intangible Assets" as of April 2, 2001.
The Company has determined that the most meaningful presentation of financial information would be to provide comparative financial information for the Successor Company for the periods July 2, 2001 through September 30, 2001 and April 3, 2001 through September 30, 2001 compared to the predecessor financial information for the periods July 3, 2000 to October 1, 2000 and April 3, 2000 through October 1, 2000, respectively.
Additionally, the Predecessor Company financial information provides a comparative analysis of the financial performance of Raytech Corporation for the thirteen-week periods ended April 1, 2001 and April 2, 2000.
The Company has elected not to present comparative financial statements for the thirty-nine-week periods ended September 30, 2001 and October 1, 2000 since such information in the current period would require consolidating statements of the Predecessor Company and the Successor Company. It was determined that the significance of the adjustments relating to the emergence from bankruptcy would render such an analysis not meaningful.
Raytech Corporation is a recognized world leader in the production of wet and dry clutch, power transmission and brake systems, as well as specialty engineered polymer matrix composite products and related services for vehicular applications, including automotive OEM, heavy duty on-and-off highway vehicles and aftermarket vehicular power transmission systems. Through three technology and research centers and six manufacturing operations worldwide, Raytech develops and delivers energy absorption, power transmission and custom-engineered components focusing on niche applications where its expertise and technological excellence provide a competitive edge.
Raytech Corporation, headquartered in Shelton, Connecticut, operates manufacturing facilities in the U.S., Germany, England and China a well as technology and research centers in Michigan, Indiana and Germany. The Company's operations are strategically situated in close proximity to major customers and within easy reach of geographical areas with demonstrated growth potential.
Raytech common stock is listed on the New York Stock Exchange and trades under the symbol "RAY." Company information may be accessed on our Internet website http//www.raytech.com
RAYTECH CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(000's omitted, except share data)
Comparative results are as follows:
Successor Company Predecessor Company
For the Period For the Period
July 2, 2001 to July 3, 2000 to
September 30, 2001 October 1, 2000
Net sales $ 48,752 $ 56,755
Net income $ 881 $ 2,972
Basic earnings per share:
Earnings per share $ .02 $ .84
Weighted average shares 41,528,520 3,519,313
Diluted earnings per share:
Earnings per share $ .02 $ .84
Weighted average shares 41,528,520 3,533,069
Successor Company Predecessor Company
For the Period For the Period For the Period
April 3, 2001 to January 1, 2001 January 3, 2000
September 30, 2001 to April 2, 2001 to October 1, 2000
Net sales $ 99,313 $ 55,205 $ 185,352
Net income (1,514) $ 6,995,257 $(7,056,036)
Basic earnings per share:
Earnings per
share (0.04) $ 1,778.88 $ (2,017.78)
Weighted
average
shares 41,526,724 3,932,385 3,496,925
Diluted earnings per share:
Earnings per
share (0.04) $ 1,772.62 $ (2,017.78)
Weighted
average
shares 41,526,724 3,946,282 3,496,925