Raytech Corporation Announces 2002 Results
SHELTON, Conn.--March 31, 2003--Raytech Corporation announced results of operations for the year ended December 29, 2002.Net sales for the period were $209.9 million, which was an improvement of $8.6 million from recorded sales of $201.3 million for year-end December 2001, which includes both Successor Company and Predecessor Company sales. The net loss for the period ended December 29, 2002 was $2.8 million or $.07 per basic share. The most significant impact was due to an environmental remediation project in Indiana for which an after- tax charge of $3.3 million was taken in the third quarter of 2002.
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 delighted 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 encouraged 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."
Due to the emergence from bankruptcy in the second quarter of 2001, the comparable financial information for the fifty-two-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 for year-end. Comparative results for the quarters ended December 29, 2002 and December 30, 2001 have been provided.
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 .
(See attached financial statement)
RAYTECH CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(000's omitted, except share data)
Comparative results are as follows:
Successor Company Successor Company
For the Period For the Period
September 30, 2002 October 1, 2001
December 29, 2002 December 30, 2001
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Net sales $50,112 $46,737
Net (loss) $(2,036) $(4,063)
Basic (loss) per share:
(Loss) per share $(.05) $(.10)
Weighted average
shares 41,691,268 41,528,520
Diluted (loss) per share:
(Loss) per share $(.05) $(.10)
Weighted average
shares 41,691,268 41,528,520
Successor Company Predecessor Company
For the For the Period For the Period
Year Ended April 3, 2001 to January 1, 2001
2002 December 30, 2001 April 2, 2001
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Net sales $209,866 $146,050 $55,205
Net (loss) income $(2,825) $(5,577) $6,995,257
Basic (loss) earnings
per share:
(Loss) earnings per
share $(.07) $(.13) $1,778.88
Weighted average
shares 41,608,057 41,527,307 3,932,385
Diluted (loss) earnings
per share:
(Loss) earnings
per share $(.07) $(.13) $1,772.62
Weighted average
shares 41,608,057 41,527,307 3,946,282