Raytech Corporation Announces Third Quarter Results for 2002
SHELTON, Conn.--Nov. 13, 2002--Raytech Corporation today announced a net loss for the thirteen-week period ended September 29, 2002 amounting to $3.4 million or $.08 per basic share as compared to net income of $.9 million or $.02 per basic share for the corresponding period in 2001.Sales for the thirteen-week period ended September 29, 2002 of $51.7 million were $2.9 million higher than the recorded sales of $48.8 million for the thirteen-week period ended September 30, 2001. The sales growth reflects increased sales to the automotive OEM and increased sales through our production facility in China. Albert A. Canosa stated, "I am encouraged by our increased sales in the automotive OEM segment of our business. In addition, we recently expanded our production facility in China due to demand for our product. This facility was opened in 1998, and I am very satisfied with the performance of this operation. We continue to explore new markets for our core products and new opportunities for taking our technology to different industries."
The net loss for the thirty-nine-week period ended September 29, 2002 was $1.3 million or $.03 per basic share. The most significant impact to the thirty-nine-week period was due to an environmental remediation project in Indiana.
Due to the emergence from bankruptcy in the second quarter of 2001, the comparable financial information for the thirty-nine-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, which are detailed below, are not comparable.
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)
(Unaudited)
Comparative results are as follows:
Successor Company
For the Period For the Period
July 1, 2002 July 2, 2001
to Sept. 29, 2002 to Sept. 30, 2001
----------------- -----------------
Net Sales $ 51,740 $ 48,752
Net (loss) income $ (3,428) $ 881
Basic (loss) earnings
per share:
(Loss) earnings
per share $ (.08) $ .02
Weighted average shares 41,650,223 41,528,520
Diluted (loss)
earnings per share:
(Loss) earnings
per share $ (.08) $ .02
Weighted average shares 41,650,223 41,528,520
RAYTECH CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
-----------------------------------------------
(000's omitted, except share data)
(unaudited)
Comparative results are as follows:
Successor Company Predecessor Company
----------------- -------------------
For the Period For the Period For the Period
December 31, 2001 April 3, 2001 January 1, 2001 to
to Sept. 29, 2002 to Sept. 30, 2001 April 2, 2001
----------------- ----------------- ---------------
Net Sales $ 159,754 $ 99,313 $ 55,205
Net (loss)
earnings $ (1,320) $ (1,514) $ 6,995,257
Basic (loss)
earnings per
share:
(Loss) earnings
per share $ (.03) $ (.04) $ 1,778.88
Weighted average
shares 41,580,320 41,526,724 3,932,385
Diluted (loss)
earnings per
share:
(Loss) earnings
per share $ ( .03) $ (.04) $ 1,772.62
Weighted average
shares 41,580,320 41,526,724 3,946,282