Royal Group to delay reporting of Q1 2006
11 May 2006 - 10:31AM
PR Newswire (US)
TORONTO, May 10 /PRNewswire-FirstCall/ -- Royal Group Technologies
Limited (RYG - TSX; NYSE) today announced that it will delay
reporting of its 2006 first quarter results until May 23, 2006.
Royal Group had indicated on its conference call pertaining to
fiscal 2005 that it anticipated reporting its first quarter 2006
results on May 15, 2006. The reporting delay is a result of the
recent delay in reporting of 2005 fiscal results, coupled with the
workload for the Company's financial staff associated with the
previously announced sale process. Royal Group will host a
conference call on May 24, 2006 at 10:00 AM Eastern Standard Time
to discuss first quarter results. The conference call will be
simultaneously web cast in its entirety, with access to this call
available through the Company's web site, located at
http://www.royalgrouptech.com/. A replay of the call will also be
posted on the Company's web site for a period of three months. In
addition, a replay of the call will be available for a period of a
week following the call by dialing 416-640-1917 and entering access
code 21189306 followed by the number sign. Royal Group is required
to file quarterly financial results for the first quarter of the
fiscal year within 45 days of the end of the quarter in order to
comply with applicable reporting requirements. Royal Group intends
to make an application to the Ontario Securities Commission and
Autorite des Marches Financiers de Quebec under applicable
regulatory policies for the issuance of a management cease trade
order ("MCTO") pending completion and filing of its first quarter
financial statements. As required by such policies, Royal Group
will provide bi-weekly updates of its business pending filing of
its quarterly statements. Assuming the securities regulators issue
the MCTO all trading in shares of the Company by directors,
officers and certain employees of Royal Group named in the MCTO
will be prohibited pending the filing of the first quarter
financial statements. The securities regulators could decide to
impose a cease trade order in respect of all of the common shares
of the Company if the quarterly statements are not filed within two
months of the May deadline or earlier if it fails to file biweekly
updates as required. The delay in reporting will not result in
breach of any reporting covenants of the Company's lending
agreements. 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; 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; the
negative impact that may be caused by the delay in filing of Royal
Group's first quarter 2006 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 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 May 10, 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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