RT Industries, Inc. Reports Q3 Results
13 November 1997
RT Industries, Inc. Reports Third Quarter Results and Effectiveness of Corporate Name ChangeNEW YORK, Nov. 13 -- RT Industries, Inc. (U.S. Automotive Manufacturing, Inc. , effective as of today) reported that for the nine months ended September 30, 1997 it sustained a loss of $(11,740,490) or $(l.O6) per share on net sales of $3,345,379 compared to a loss of $(2,257,076) or $(.36) per share on net sales of $3,194,619 for the comparable period in 1996. Net loss for the three months ended September 30, 1997, was $(7,357,851) or $(.66) per share compared to net loss of $(628,534) or $(0.09) per share for the comparable 1996 period. Sales for the 1997 period were $1,850,076 compared to $821,786 for the 1996 period. Results for the 1997 periods include one month of results of Quality Automotive Company which the Company acquired on August 29, 1997. Results for the nine month period in 1997 also include certain non-recurrinq charges totaling approximately $9,630,000 (including an approximate $3,340,000 write- down of assets located at its Florida facility to accord with estimated market value). According to Mr. Martin Chevalier, the former President and CEO of Quality Automotive Company who assumed the offices of President and CEO of the Company in September 1997, "We are pleased with the progress that is being made in integrating the operations of Quality Automotive and the Company. Although we expect improvements in combined operating results in the upcoming quarters, the quarters ending December 31 and March 31 have traditionally been the weakest in terms of both sales and net results. Therefore, we expect to show net losses for the next two quarters." Mr. Chevalier further noted that the Company, under the auspices of its new management team, will continue to take steps to improve operating efficiencies and to that end it will continue its program to rebuild and refurbish operating equipment at its Florida facility. The Company also noted that effective today its corporate name had been changed to U.S. Automotive Manufacturing, Inc. and the Nasdaq symbol for its common stock had changed to USAM. U.S. Automotive Manufacturing, Inc. manufactures, assembles and distributes new and rebuilt automotive friction products (brake pads, linings and remanufactured brake shoes) to the automotive aftermarket. "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: The statements which are not historical facts contained herein are forward-looking statements that relate to plans for future activities. Such forward-looking information involves important risks and uncertainties that could significantly affect results in the future, including, but not limited to, those relating to the integration of recently acquired companies, industry competition, possible need for future financing, and possible obsolescence of equipment and other risks detailed in the Company's filings with the Securities and Exchange Commission. SOURCE U.S. Automotive Manufacturing, Inc.