Raytech Corporation Announces Second Quarter Results for 2002
SHELTON, Conn.--Aug. 12, 2002--Raytech Corporation today announced net income for the thirteen-week period ended June 30, 2002 amounting to $.8 million or $.02 per basic share as compared to a $2.4 million loss or $.06 loss per basic share for the same period in the prior year, excluding the one-day effect of the Company's emergence from bankruptcy on April 2, 2001.Raytech recorded net income of $2.1 million or $.05 per basic share for the twenty-six-week period ended June 30, 2002. Due to the emergence from bankruptcy in the second quarter of 2001, the comparable financial information for the twenty-six-week period in the prior year has not been presented as that presentation would require the combination of Successor Company and Predecessor Company financial information. 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 periods presented prior to April 2, 2001 have been designated "Predecessor Company" and the periods subsequent to April 2, 2001 have been designated "Successor Company," in accordance with fresh-start reporting, all assets and liabilities were recorded at their respective fair market values. Additionally, 38 million shares of Company stock were issued as part of the Plan of Reorganization. Therefore, the results of operations for the periods presented are not comparable.
Worldwide net sales for the thirteen-week-period ended June 30, 2002 of $55.3 million reflect an increase of $4.7 million over the recorded sales of $50.6 million in the same period in the prior year, an increase of 9.3%. Worldwide net sales for the twenty-six-week period ended June 30, 2002 were $108.0 million.
The Company recorded an increase in cash of $1.8 million for the twenty-six-week period and an increase of $.9 million over the cash balance at July 1, 2001. The increased cash flow reflects the strong expense controls established in 2001 as part of various cost reduction programs and production improvement projects, which are having a positive impact on 2002 performance.
The President and Chief Executive Officer, Albert A. Canosa stated, "We are operating in an uncertain worldwide economic environment. I feel Raytech is performing well in the economy, which is reflected in the improved cash flow and earnings compared to the prior year's period. We continue to explore growth opportunities in both the vehicular and non-vehicular markets, focusing on our core technology. We have an active expansion committee consisting of key internal management personnel and selected outside advisors."
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)
(unaudited)
Comparative results are as follows:
Successor Company Predecessor
----------------- -----------
For the Period For the Period Company
April 1, 2002 April 3, 2001 -------
to June 30, 2002 to July 1, 2001 April 2, 2001
---------------- --------------- -------------
Net Sales $ 55,305 $ 50,561 $ -
Net income (loss) $ 778 $ (2,395)$ 6,993,542
Basic earnings (loss) per share:
Earnings (loss) per share $ .02 $ (.06) $ (a)
Weighted average shares 41,562,216 41,524,888 -
Diluted earnings (loss) per share:
Earnings (loss) per share $ .02 $ (.06)$ (a)
Weighted average shares 41,687,117 41,524,888 -
(a) Earnings per share is not meaningful for the one-day results.
RAYTECH CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
-----------------------------------------------
(000's omitted, except share data)
(unaudited)
Comparative results are as follows:
Predecessor
Successor Company Company
----------------- -----------
For the For the For the
Period Period Period
December 31, 2001 April 3, 2001 January 1, 2001
to to to
June 30, 2002 July 1, 2001 April 2, 2001
---------------- --------------- -------------
Net Sales $ 108,014 $ 50,561 $ 55,205
Net income (loss) $ 2,108 $ (2,395) $ 6,995,257
Basic earnings (loss) per share:
Earnings (loss) per share $ .05 $ (.06) $ 1,778.88
Weighted average shares 41,545,368 41,524,888 3,932,385
Diluted earnings (loss) per share:
Earnings (loss) per share $ .05 $ (.06) $ 1,772.62
Weighted average shares 41,599,523 41,524,888 3,946,282