Raytech Corporation Announces Results for 2001
SHELTON, Conn.--March 28, 2002--Raytech Corporation today announced results of operations for the thirty-nine-week period ended December 30, 2001.Net sales for the period of $146.1 million were less than the recorded sales of $172.1 million in the period April 3, 2000 through December 31, 2000, a decline of $26.0 million or 15%. The net loss for the period of $5.6 million or $.13 per basic share compared favorably to the net loss of $7.064 billion or $2,012.64 per basic share for the same thirty-nine-week period in the prior year.
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 March 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 values.
Further, the Company, in accordance with SOP 90-7, adopted those changes in accounting principles which were required within the next twelve months. Specifically, the Company 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 is to provide comparative financial information for the Successor Company for the period April 3, 2001 through December 30, 2001 compared to the predecessor financial information for the period April 3, 2000 through December 31, 2000.
The Company has elected not to present comparative financial statements for years ended December 30, 2001 and December 31, 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. In the second quarter of 2000, the Company recorded a charge of $7.2 billion related to the bankruptcy process. This charge, accounted for as liabilities subject to compromise, represented an estimate of the aggregate amount of allowed claims, substantially all of which were discharged at the effective date of the Bankruptcy as part of the settlement with the creditors and equity holders with respect to the Plan of Reorganization. The Plan was confirmed in September 2000.
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 as 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
October 1, 2001 to October 2, 2000 to
December 30, 2001 December 31, 2000
Net sales $ 46,737 $ 54,180
Net (loss) $ (4,063) $ (2,942)
Basic (loss) per share:
(Loss) per share $ (.10) $ (.84)
Weighted average shares 41,528,520 3,519,313
Diluted (loss) per share:
(Loss) per share $ (.10) $ (.84)
Weighted average shares 41,528,520 3,519,313
Successor Company Predecessor Company
For the Period For the Period For the Period
April 3, 2001 to January 1, 2001 January 3, 2000
December 30, 2001 April 2, 2001 to December 31,
2000
Net sales $ 146,050 $ 55,205 $ 239,532
Net (loss) income (5,577) $ 6,995,257 $ (7,058,978)
Basic (loss)
earnings per share:
(Loss) earnings per share (.13) $ 1,778.88 $ (2,015.40)
Weighted average shares 41,527,307 3,932,385 3,502,522
Diluted (loss)
earnings per share:
(Loss) earnings per share (.13) $ 1,772.62 $ (2,015.40)
Weighted average shares 41,527,307 3,946,282 3,502,522