CALGARY, ALBERTA--(Marketwire - April 28, 2009) - Alaris Royalty Corp. ("Alaris" or the "Company") (TSX:AD) is pleased to report that operations at LMS Reinforcing Steel Group ("LMS") have improved upon the outlook published in the Company's press release dated March 12, 2009. LMS' internal six month unaudited results reflect that gross profit (the performance metric that dictates the annual royalty to Alaris) is 8% ahead of the outlook provided last month at the midway point of LMS' fiscal year (September 30th, 2009). LMS is a fabricator and installer of concrete reinforcing steel ("rebar") in Western Canada that is primarily used for large-scale infrastructure, commercial and residential construction. LMS management estimates that the company has approximately 40% market share for rebar installation in lower mainland B.C. March and April have shown considerable improvements in volumes over late 2008 and early 2009 and current volume levels are expected to hold to the end of this fiscal year, supported by a backlog of contracts that have already been awarded. This backlog of business is sufficient to account for the entire amount of business budgeted for in our outlook for LMS' fiscal 2009. Several large projects that were suspended due to financing concerns in Q3 and Q4, 2008 have been restarted and LMS has been successful in securing a number of new projects over the past two months. However, gross margins remain depressed due to high cost inventory supplies that arose because of cancelled projects in 2008. LMS continues to have a conservative balance sheet with low amounts of debt and a strong working capital position. This puts LMS in a good position as it submits additional bids for further infrastructure business. The Government of B.C. has budgeted approximately $14 billion of infrastructure spending over the next three years. About the Corporation: The Corporation provides alternative financing for a diversified group of private businesses ("Private Company Partners") in exchange for royalties or distributions from the Private Company Partners, with the principal objective of generating stable and predictable cash flows for dividend payments to its shareholders. Royalties or distributions from the Private Company Partners are structured as a percentage of a "top line" financial performance measure such as gross margin and same-store sales and rank in priority to the owners' common equity position. Forward-Looking Statements This press release contains forward-looking statements. Statements other than statements of historical fact contained in this press release are forward-looking statements, including, without limitation, management's expectations, intentions and beliefs concerning the growth, results of operations, performance and business prospects and opportunities of the Corporation and LMS, the general economy, and plans and objectives of or involving the Corporation or LMS. Many of these statements can be identified by looking for words such as "believe", "expects", "will", "intends", "projects", "anticipates", "estimates", "continues" or similar words or the negative thereof. In particular, this press release contains forward-looking statements regarding the anticipated financial and operating performance of LMS in 2009. In addition to the general factors outlined above, the forward-looking statements relating to LMS assume that LMS will benefit from the British Columbia provincial government's announcement of $14 billion of new infrastructure projects and higher priced inventory being installed in future construction projects. There can be no assurance that the plans, intentions or expectations upon which these forward-looking statements are based will occur. Forward-looking statements are subject to risks, uncertainties and assumptions and should not be read as guarantees or assurances of future performance. The actual results of the Corporation and LMS could materially differ from those anticipated in the forward-looking statements contained herein as a result of certain risk factors, including, but not limited to, the following: the dependence of Alaris on LMS; reliance on key personnel; general economic conditions; failure to complete or realize the anticipated benefit of Alaris' financing arrangements with LMS; or other Private Company Partners limited diversification of Alaris' financing arrangements with the Private Company Partners; management of future growth; availability of future financing; competition; government regulations; leverage and restrictive covenants under credit facilities; the ability of a Private Company Partner to terminate the agreements pursuant to which Alaris has invested in such Private Company Partner; risk relating to the Private Company Partners and their businesses; unpredictability and potential volatility of the trading price of Common Shares; fluctuations of dividends; restrictions on the potential growth of Alaris as a consequence of the payment by Alaris of substantially all of its operating cash flow; income tax related risk; future sales of Common Shares by significant shareholders; ability to recover from a Private Company Partner for defaults under the agreements pursuant to which Alaris has invested in such Private Company Partner; conflicts of interest; dilution; and liquidity of Common Shares. Accordingly, readers are cautioned not to place undue reliance on any forward-looking information contained in this press release. Statements containing forward-looking information reflect management's current beliefs and assumptions based on information in its possession on the date of this press release. Although management believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. The Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securites law.
For more information please contact:Alaris Royalty Corp. Curtis Krawetz Investor Relations (403) 221-7305