EXHIBIT 99
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AT THE COMPANY
Xxxxxx X. Xxxxx, Senior Vice President-Finance (000) 000-0000
Xxx Xxxxx, Director Corporate Communications (000) 000-0000
FOR IMMEDIATE RELEASE
Friday, January 23, 2004
X.X. XXXXX CORPORATION AMENDS LOAN AGREEMENT
PICKERINGTON, OHIO - FRIDAY, JANUARY 23, 2004 -X.X. XXXXX CORPORATION (NYSE:RGB)
said today that it has entered into an amendment to its revolving credit
facility to increase credit availability for the month of January from $3.0
million to $9.0 million.
In exchange for the increased credit availability for January, the Company will
grant a mortgage lien on the Company's headquarters facility in Pickerington,
Ohio, as additional collateral for the loan.
"While our results for fiscal 2003 have not been finalized, we had lower than
planned shipments in the months of November and December resulting in higher
than planned year-end inventories and lower than planned cash receipts. The
Company also has incurred costs associated with the previously announced
reduction of its workforce in Nuevo Laredo, Mexico. In order to have sufficient
funds available to the Company to meet its liquidity needs, we requested an
increase in our January credit availability," said Xxxxxx Xxxxx, Chairman,
President and Chief Executive Officer. "We are working closely with our lender
to make sure that our credit facility is adequate to support our financing needs
short-term and long-term."
In that connection, the Company is seeking to identify a second lender to
participate with its current lender in an expanded credit facility to meet the
Company's anticipated financing requirements in 2004. The Company has engaged an
outside consulting firm to assist it in those efforts. The consulting firm also
is advising the Company on initiatives to reduce operating costs.
The Company and its lender will review the Company's 2003 results when
finalized, assess the level of monthly financing commitments necessary for the
remainder of 2004, and review the covenants and other terms of the revolving
credit facility. The Company currently recognizes that it may require additional
borrowing capacity for February above the committed availability. The Company
believes that its lender will support the Company's borrowing needs in February.
"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995: The statements in this release, other than statements of historical fact,
are forward-looking statements as that term is defined in the Private Securities
Litigation Reform Act of 1995. These forward-looking statements are based upon
our current plans, and reflect our current assessment of the risks and
uncertainties related to our business. In addition, there are factors that could
cause results to differ materially from those anticipated by some of the
statements made. These factors include the Company's financial results for 2003,
customer returns, the availability and costs of financing, the actual cash
requirements of operating the Company and product demand. More general factors
that could cause results to differ from those anticipated include: the economic
and business environment
and the impact of governmental regulations, both in the United States and
abroad; the effects of direct sourcing by customers of competitive products from
alternative suppliers; the loss of significant customers in connection with
mergers, acquisitions, bankruptcies or other circumstances; economic, regulatory
and cultural difficulties or delays in our business development outside the
United States; our ability to improve processes and business practices to keep
pace with the economic, competitive and technological environments; capacity,
efficiency and supply constraints; weather; the effects of terrorist acts; acts
of war; and other risks detailed in the our press releases, shareholder
communications and Securities and Exchange Commission filings.
