Canadian Company Press Release
RYG 1998-04-29 (provided courtesy of ISDN Wire Service)
ROYAL GROUP S SECOND QUARTER SALES AND NET EARNINGS UP BY 31% AND 26% RESPECTIVELY, OVER THE SAME PERIOD LAST YEAR
TORONTO, ONTARIO--
Royal Group Technologies Limited (RYG:TSE, NYSE, ME) announced financial
results today for its second quarter of fiscal 1998, ended March 31, 1998.
Net sales were $229 million, up 31 % from $176 million during the same period
in 1997. Net earnings were $20 million or $0.24 per share compared to $16
million or $0.20 per share reported for the same period last year.
Strong sales growth resulted from market share gains in core building product
markets including custom profiles and window blinds, growth in demand for The
Royal Building System(TM) and increasing sales of other new products such as
PVC fencing and decking. Sales of The Royal Building System(TM) rose to $24
million or 10% of consolidated sales during the quarter, up 255% from $7
million during the same period last year. Sales in the United States rose to
59% of consolidated sales and sales in Mexico and other international
locations rose to 15% of total sales, reflecting Royal's strategy of
expanding in the United States and international markets.
During the quarter, EBITDA margins increased to $50 million, up 29% from $39
million last year. As a percentage of sales, EBITDA margins were 21.8%
compared to 22 .1% last year.
Vic De Zen, Royal's Chairman, President and C.E.O. commented on second
quarter results saying, "as expected, demand for The Royal Building
System(TM),including storage sheds, accelerated significantly during the
second quarter". He added that, "increasing sales momentum for the System is
expected to continue through the remainder of fiscal 1998 and demand for core
building products is presently quite strong, leaving us confident that we
will meet our expectations in 1998".
Royal's balance sheet remained strong with net debt to total capitalization
of 33% and its entire $400 million bank line of credit available. Royal
intends to utilize approximately $82 million of its bank line during the
third quarter to complete the previously announced acquisition of a PVC resin
manufacturing facility which will allow it to take another step in its
successful vertical integration program.
Detailed second quarter and year to date financial results in Canadian
dollars expressed in accordance with Canadian GAAP are outlined in the
following chart. Earnings per share figures remain unchanged on a US GAAP
adjusted basis.
For the Quarter Ended For the Six months Ended
March 31,98 March 31,97 March 31,98 March 31,97
Sales (000s) 229,344 175,539 440,780 350,031
Net Earnings (000s) 20,011 15,932 39,397 31,366
E.P.S. (Basic) 0.24 0.20 0.48 0.39
E.P.S. (Fully Diluted) 0.24 0.20 0.48 0.39
Royal Group Technologies Limited is one of North America's largest extruders
of vinyl building products, serving the custom profile (predominantly
window), vertical window blind, siding and pipe segments of the market.
Royal's Building Technologies Group manufactures a pre-engineered, modular
building system, known as The Royal Building System(TM), and product lines
derived from the System including foundations, garages and sheds. Royal's
manufacturing facilities are primarily located in North America, with recent
additions of facilities in South America, Europe and Asia. Royal was added to
the TSE 100 Index in March 1998,.
For more information contact:
Gary Brown
Executive Vice President and C.F.O.
Phone (905) 264 0701
Fax (905) 264 0702
This press release contains certain forward looking statements which should
be considered in conjunction with the Management Discussion and Analysis
section of Royal's 1997 annual report which identifies certain risks to
attainment of envisioned results.
A French translation of this press release and copies of financial statements
and supplementary financial information are available upon request.
Canadian Company Press Release
RYG 1998-04-29 (provided courtesy of ISDN Wire Service)
ROYAL GROUP S SECOND QUARTER SALES AND NET EARNINGS UP BY 31% AND 26% RESPECTIVELY, OVER THE SAME PERIOD LAST YEAR
TORONTO, ONTARIO--
Royal Group Technologies Limited (RYG:TSE, NYSE, ME) announced financial
results today for its second quarter of fiscal 1998, ended March 31, 1998.
Net sales were $229 million, up 31 % from $176 million during the same period
in 1997. Net earnings were $20 million or $0.24 per share compared to $16
million or $0.20 per share reported for the same period last year.
Strong sales growth resulted from market share gains in core building product
markets including custom profiles and window blinds, growth in demand for The
Royal Building System(TM) and increasing sales of other new products such as
PVC fencing and decking. Sales of The Royal Building System(TM) rose to $24
million or 10% of consolidated sales during the quarter, up 255% from $7
million during the same period last year. Sales in the United States rose to
59% of consolidated sales and sales in Mexico and other international
locations rose to 15% of total sales, reflecting Royal's strategy of
expanding in the United States and international markets.
During the quarter, EBITDA margins increased to $50 million, up 29% from $39
million last year. As a percentage of sales, EBITDA margins were 21.8%
compared to 22 .1% last year.
Vic De Zen, Royal's Chairman, President and C.E.O. commented on second
quarter results saying, "as expected, demand for The Royal Building
System(TM),including storage sheds, accelerated significantly during the
second quarter". He added that, "increasing sales momentum for the System is
expected to continue through the remainder of fiscal 1998 and demand for core
building products is presently quite strong, leaving us confident that we
will meet our expectations in 1998".
Royal's balance sheet remained strong with net debt to total capitalization
of 33% and its entire $400 million bank line of credit available. Royal
intends to utilize approximately $82 million of its bank line during the
third quarter to complete the previously announced acquisition of a PVC resin
manufacturing facility which will allow it to take another step in its
successful vertical integration program.
Detailed second quarter and year to date financial results in Canadian
dollars expressed in accordance with Canadian GAAP are outlined in the
following chart. Earnings per share figures remain unchanged on a US GAAP
adjusted basis.
For the Quarter Ended For the Six months Ended
March 31,98 March 31,97 March 31,98 March 31,97
Sales (000s) 229,344 175,539 440,780 350,031
Net Earnings (000s) 20,011 15,932 39,397 31,366
E.P.S. (Basic) 0.24 0.20 0.48 0.39
E.P.S. (Fully Diluted) 0.24 0.20 0.48 0.39
Royal Group Technologies Limited is one of North America's largest extruders
of vinyl building products, serving the custom profile (predominantly
window), vertical window blind, siding and pipe segments of the market.
Royal's Building Technologies Group manufactures a pre-engineered, modular
building system, known as The Royal Building System(TM), and product lines
derived from the System including foundations, garages and sheds. Royal's
manufacturing facilities are primarily located in North America, with recent
additions of facilities in South America, Europe and Asia. Royal was added to
the TSE 100 Index in March 1998,.
For more information contact:
Gary Brown
Executive Vice President and C.F.O.
Phone (905) 264 0701
Fax (905) 264 0702
This press release contains certain forward looking statements which should
be considered in conjunction with the Management Discussion and Analysis
section of Royal's 1997 annual report which identifies certain risks to
attainment of envisioned results.
A French translation of this press release and copies of financial statements
and supplementary financial information are available upon request.
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