Royal Group augments MD&A disclosures
August 24 2006 - 1:25PM
PR Newswire (US)
TORONTO, Aug. 24 /PRNewswire-FirstCall/ -- Royal Group Technologies
Limited (RYG - TSX; NYSE) today announced that it has re-filed its
Management Discussion and Analyses pertaining to the 12 month
period ended December 31, 2005, as well as the three and six months
periods ended June 30, 2006. The revised Management Discussion and
Analyses are posted on both SEDAR and EDGAR disclosure systems,
which are accessible through the investor relations section of
Royal Group's web site located at http://www.royalgrouptech.com/.
The updated Management Discussion and Analyses were precipitated by
discussions with the U.S. Securities and Exchange Commission
pertaining to disclosures surrounding tax valuation allowance and
goodwill impairment testing. The updated Management Discussion and
Analyses augment disclosures to provide additional clarity on tax
valuation allowance calculations and goodwill impairment testing
methodology. No adjustments to financial statements have resulted
in connection with additional disclosures. Royal Group understands
that the process of responding to the Securities and Exchange
Commission's comments on tax valuation allowance calculations and
goodwill impairment testing has been completed, commensurate with
the filing of the updated materials. In addition, Royal Group
advised that it has re-filed financial statements for the three
month period ended June 30, 2006 to correct a clerical error in a
table disclosing assets held for sale and related liabilities
pertaining to construction products contained in Note 3, wherein
the column in the original note was misaligned. Royal Group
Technologies Limited -------------------------------- 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", "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 the
Company's actual performance, achievements and financial results to
differ materially from past results and from those expressed in any
forward-looking statements made by or on behalf of the Company.
These risks and uncertainties include the ongoing shareholder value
maximization process and its outcome including, without limitation,
the completion of the proposed plan of arrangement with Rome
Acquisition Corp., a wholly-owned subsidiary of Georgia Gulf
Corporation; the ongoing internal review and investigations by the
Audit Committee of the Board of Directors and its outcome; the
outcome of the ongoing investigations by the United States
Department of Justice, RCMP, OSC and SEC; the outcome of the
discussions with the SEC on the Company's historical disclosure;
the outcome of class action shareholders lawsuits against the
Company filed in the United States and Canada; 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 cost reductions or increases in
revenues related to sales price increases; the sufficiency of any
restructuring activities, including the potential for higher actual
costs to be incurred in connection with any restructuring
activities compared to the estimated costs of such actions; the
ability to recruit and retain qualified employees; the level of
Royal's outstanding debt and 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 Company's ability to complete the required processes
and provide the internal control report that will be required under
U.S. securities law in respect of fiscal 2006; the ability to meet
the financial covenants in Royal's credit facilities; changes in
Royal's 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,
environmental or health and safety 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 August 24, 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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