Raytech Corporation Announces 2004 Results
SHELTON, Conn.--April 19, 2005--Raytech Corporation announced today the results of operations for the year ended January 2, 2005. Net sales for the period of $227.3 million compared to $205.9 million for the 2003 fiscal year, an increase of $21.4 million or 10.4%. The Company recorded a net loss for the period of $2.8 million or $.07 per basic and diluted share compared to a net loss for the 2003 year of $66.4 million or $1.59 per basic and diluted share.The Company recorded net sales of $58.3 million during the fourth quarter of 2004 compared to $48.2 million in the fourth quarter of 2003, an increase of $10.2 million or 21.0%. The Company recorded a net loss for the fourth quarter of 2004 of $.9 million or $.02 loss per basic and diluted share compared to a net loss of $47.8 million or $1.14 loss per basic and diluted share for the fourth quarter of 2003.
During 2004, the Company conducted a facilities utilization review and made the decision to close its manufacturing operations in Sterling Heights, Michigan and Liverpool, England. The closure of these facilities is expected to be completed during 2005. The Company also began the process of relocating its corporate functions from Shelton, Connecticut to its existing manufacturing and development facilities located in Crawfordsville, Indiana. The closure of the Shelton corporate offices is expected to be completed during 2005. The Company expects the total costs associated with this restructuring program to be $7.8 million, of which $5.1 million was recorded during 2004.
As a result of the recognition of costs associated with the closure of the Sterling Heights, Michigan facility, the Company requested and obtained a waiver of the fixed charge coverage ratio, as of January 2, 2005, contained in one of its domestic bank agreements. Additionally, subsequent to the end of fiscal 2004, the Company amended its domestic bank agreements to provide greater flexibility, under the debt covenants, to manage cash resources and certain one-time costs, related to the plant closures, that are expected to be incurred during 2005.
Raytech Corporation is a worldwide manufacturer 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 two 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 United States, Germany, England and China as well as technology and research centers in 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
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(000's omitted, except share data)
Comparative results are as follows:
For the 13 Weeks Ended
January December
2, 2005 28, 2003
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Net sales $ 58,326 $ 48,159
Net loss $ (889) $ (47,765)
Basic and diluted loss per share:
Loss per share $ (.02) $ (1.14)
Weighted average shares 41,737 41,737
For the Year Ended
January December
2, 2005 28, 2003
--------- -----------
Net sales $ 227,313 $ 205,865
Net loss $ (2,750) $ (66,443)
Basic and diluted loss per share:
Loss per share $ (.07) $ (1.59)
Weighted average shares 41,737 41,728