Royal Group Provides Status Update
April 12 2006 - 10:01AM
PR Newswire (US)
TORONTO, April 12 /PRNewswire-FirstCall/ -- Royal Group
Technologies Limited (RYG -TSX; NYSE) today provided a status
update pursuant to the policies of the Ontario Securities
Commission ("OSC") and the Canadian Securities Administrators. On
March 14, 2006, Royal Group announced that it expected a delay in
reporting audited financial results for up to 60 days. On March 31,
2006, Royal Group announced that its banking syndicate agreed to a
sixty-day extension to the time for which the Company is required
to provide them with audited year-end financial statements. On
April 3, 2006, the OSC issued a temporary cease trade order
prohibiting all trading by directors, officers and certain
employees in the securities of the Company. Royal Group announced
today that it is continuing to work toward the resolution of the
issues that gave rise to the delay in the issuance of its financial
statements, as referred to in its March 14, 2006 news release, and
continues to target to file its financial results on April 30,
2006. Royal Group will continue to provide bi-weekly updates on its
business in accordance with the terms of the temporary management
cease trade order until it is current with its filing obligations
under Canadian securities laws. The OSC may impose an issuer cease
trade order if the Company's financial results are not reported by
April 30, 2006. An issuer cease trade order may be imposed sooner
if Royal Group fails to provide bi-weekly updates. Royal Group
Technologies is a leading producer of innovative, attractive,
durable and low-maintenance home improvement and building products,
which are primarily utilized in both the renovation and new
construction sectors of the North American construction industry.
Royal Group is the recipient of several industry awards for product
innovation. The Company has manufacturing operations located
throughout North America in order to provide industry- leading
service to its extensive customer network. Additional investment
information is available on Royal Group's web site at
http://www.royalgrouptech.com/ under the "Investor Relations"
section. The information in this document contains certain
forward-looking statements with respect to Royal Group Technologies
Limited, its subsidiaries and affiliates. These statements are
often, but not always made through the use of words or phrases such
as "expect", "should continue", "continue", "believe",
"anticipate", "suggest", "estimate", "contemplate", "target",
"plan", "budget", "may", "will", "schedule" and "intend" or similar
formulations. By their nature, these forward-looking statements are
necessarily based upon a number of estimates and assumptions that,
while considered reasonable by management, are inherently subject
to significant, known and unknown, business, economic, competitive
and other risks, uncertainties and other factors affecting Royal
specifically or its industry generally that could cause actual
performance, achievements and financial results to differ
materially from those contemplated by the forward-looking
statements. These risks and uncertainties include the ongoing
shareholder value maximization process and its outcome; the ongoing
internal review and investigations by the Audit Committee of the
Board of Directors and its outcome; the negative impact that may be
caused by the delay in filing of Royal Group's 2005 financial
statements, including, without limitation, a breach by Royal Group
of its banking agreement, an adverse effect on Royal Group's
business and the market price of its publicly traded securities,
and a breach by Royal Group of the continued listing requirements
of the New York Stock Exchange and Toronto Stock Exchange;
fluctuations in the level of renovation, remodelling and
construction activity; changes in product costs and pricing; an
inability to achieve or delays in achieving savings related to the
cost reductions or increases in revenues related to sales price
increases; the sufficiency of our restructuring activities,
including the potential for higher actual costs to be incurred in
connection with restructuring activities compared to the estimated
costs of such actions; the ability to recruit and retain qualified
employees; the level of outstanding debt and our current debt
ratings; Royal's ability to maintain adequate liquidity and
refinance its debt structure by December 31, 2006, the expiry date
of its current bank credit facility; the ability to meet the
financial covenants in our credit facilities; changes in product
mix; the growth rate of the markets into which Royal's products are
sold; market acceptance and demand for Royal's products; changes in
availability or prices for raw materials; pricing pressures
resulting from competition; difficulty in developing and
introducing new products; failure to penetrate new markets
effectively; the effect on foreign operations of currency
fluctuations, tariffs, nationalization, exchange controls,
limitations on foreign investment in local business and other
political, economic and regulatory risks; difficulty in preserving
proprietary technology; adverse resolution of any litigation,
investigations, administrative and regulatory matters, intellectual
property disputes, or similar matters; changes in securities or
environmental laws, rules and regulations; currency risk exposure
and other risks described from time to time in publicly filed
disclosure documents and securities commission reports of Royal
Group Technologies Limited and its subsidiaries and affiliates. In
view of these uncertainties we caution readers not to place undue
reliance on these forward-looking statements. Statements made in
this document are made as of April 12, 2006 and Royal disclaims any
intention or obligation to update or revise any statements made
herein, whether as a result of new information, future events or
otherwise. DATASOURCE: Royal Group Technologies Limited CONTACT:
Mark Badger, Vice President of Marketing and Corporate
Communications, Royal Group Technologies Limited, Phone: (905)
264-0701
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