Raytech (NYSE:RAY)
Historical Stock Chart
From Jun 2019 to Jun 2024
Raytech Corporation (NYSE: RAY) announced today it will
be filing a notification of late filing relating to its quarterly
report on Form 10-Q for the third quarter ended October 2, 2005. The
Company will also be filing an Amended Form 10-Q for the second
quarter ended July 3, 2005. The filings are being delayed to allow the
Company to reflect the second quarter changes in their financial
statements and to complete the overall review.
The second quarter Form 10-Q is being amended to restate the net
loss for a $1.6 million, or $0.04 per share, non-cash reversal of a
fresh start accounting reserve for potential IRS issues. The tax
reserves, which were no longer necessary after the IRS settlement
during the second quarter, were established as part of the fresh start
accounting in 2001, when the Company emerged from Chapter 11
bankruptcy. During the second quarter the reversal of the reserve was
treated as a reduction in the provision for income taxes and therefore
reduced the reported net loss. The reversal should have been treated
as a reduction of goodwill. Had the entry been reported properly the
reported net loss would have been $5.0 million or $0.12 per share and
$3.3 million or $0.08 per share for the 13 weeks and 26 weeks ended
July 3, 2005, respectively. The third quarter Form 10-Q results for
the 39 weeks ended October 2, 2005 will also reflect the adjustment
for the non-cash $1.6 million tax reserve.
The Company estimates a net loss for the thirteen-week period
ended October 2, 2005 of approximately $5.0-$6.0 million or
$0.12-$0.14 loss per basic and fully diluted share compared to a net
loss of $3.3 million or $0.08 per basic and fully diluted share for
the same period in the prior year. For the thirty-nine-week period
ended October 2, 2005 the Company estimates a net loss of $8.3-$9.2
million or $0.20-$0.22 loss per basic and fully diluted share compared
to a net loss of $1.8 million or $0.04 per basic and fully diluted
share for the same period in the prior year.
Net sales for the thirteen-week period ended October 2, 2005 of
$54.9 million compares to $54.0 million for the same period in the
prior year, an increase of $0.9 million or 1.8%. Net sales for the
thirty-nine-week period ended October 2, 2005 of $178.9 million
compares to $169.0 million for the same period in the prior year, an
increase of $9.9 million or 5.9%.
The decrease in earnings is primarily due to the continued poor
performance of the Domestic OEM segment, restructuring expenses
recorded in 2005 and a $1.8 million impairment charge to write-down to
net realizable value the carrying value of certain assets used in the
Company's steel stamping business. As part of its strategy to improve
production and profitability in its Domestic OEM segment, the Company
announced on October 4, 2005 that it plans to exit its steel stamping
business and on November 1, 2005 that it plans to relocate its
conventional automotive assembly operations to a more cost competitive
location.
The Company anticipates filing the Form 10-Q for the third quarter
ended October 2, 2005 by November 21, 2005 and the Amended Form 10-Q
for the second quarter ended July 3, 2005 prior to the end of November
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
five 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 Crawfordsville, Indiana,
operates manufacturing facilities in the United States, Germany 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.
From time to time, information provided by Raytech Corporation,
statements made by its employees, or information included in its
filings with the Securities and Exchange Commission may contain
statements which are so-called "forward-looking statements" and not
historical facts. Forward-looking statements can be identified by the
use of words such as "believe," "expect," "intend," "anticipate," "in
my opinion," and similar words or variations. These forward-looking
statements are made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Raytech's actual
future results may differ significantly from those stated in any
forward-looking statements. Forward-looking statements involve a
number of risks and uncertainties, including (without limitation)
product demand, pricing, market acceptance, litigation, risks in
product and technology development, and other risk factors detailed
from time to time in Raytech's Securities and Exchange Commission
reports (including its Forms 10-K and 10-Q).