News Column

Glacier Water Announces Second Quarter Fiscal Year 2014 Results

August 26, 2014

VISTA, Calif.--(BUSINESS WIRE)-- Glacier Water Services, Inc. (OTC Pink:GWSV) announced results for the second quarter of the fiscal year 2014, ended June 29, 2014.

Brian McInerney, Chief Executive Officer of Glacier Water, said, “Our second quarter and year-to-date revenues increased 6.2% and 6.3%, respectively, versus the comparable periods last year. On a same-store basis, revenues increased 5.4% year-to-date. The Company’s first six months of adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were $10,469,000, an increase of 8.3% or $803,000 over the same period last year. At the end of the second quarter, Glacier operated approximately 23,400 machines located at retailers across the U.S. and Canada, providing high-quality, great tasting drinking water or premium ice.”

Revenues for the second quarter ended June 29, 2014 increased 6.2% to $33,985,000 compared to $31,996,000 for the same period last year. For the six-month period ended June 29, 2014, revenues increased 6.3% to $64,367,000 compared to $60,574,000 for the same period last year. Sales growth for the second quarter and six-month period ended June 29, 2014 was driven primarily by positive growth in same-store productivity.

The Company’s income from operations for the second quarter ended June 29, 2014 was $1,691,000 compared to $1,606,000 for the same period last year. For the six-month period ended June 29, 2014, income from operations was $1,773,000 compared to $1,539,000 for the same period last year. The increase in income from operations was driven by the margin generated from growth in revenues, offset by increased depreciation and amortization of $191,000 and $569,000, respectively, and operating costs, in particular labor and benefits and vehicle fleet expense.

The Company’s net loss applicable to common stockholders for the quarter ended June 29, 2014 was $1,474,000 or $0.45 per basic and diluted share, compared to a net loss of $1,412,000 or $0.43 per basic and diluted share for the same period last year. For the six-month period ended June 29, 2014, the net loss applicable to common stockholders was $4,463,000 or $1.35 per basic and diluted share, compared to a net loss of $4,349,000 or $1.31 per basic and diluted share for the same period last year. Net loss attributable to the noncontrolling interests for the second quarter and six-month period ended June 29, 2014 was $92,000 and $285,000, respectively.

With approximately 23,400 machines located in 47 states throughout the United States and Canada, Glacier is the leading provider of high-quality, low-priced drinking water dispensed to consumers through self-service bottled water machines located at supermarkets and other retail locations.

Statements in this announcement that are not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.A copy of the Company’s audited financial statements for the year ended December 29, 2013 can be obtained by contacting Steve Stringer at (760) 560-1111.

                 
GLACIER WATER SERVICES, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(In thousands, except share and per share data)
(Unaudited)
           
Three Months EndedSix Months Ended
June 30,June 29,June 30,June 29,
2013201420132014
Revenues $ 31,996 33,985 60,574 64,367
Cost of revenues:
Operating expenses 21,855 23,172 41,871 44,341
Depreciation and amortization 4,105   4,296   8,032   8,601  
Total cost of revenues 25,960   27,468   49,903   52,942  
Gross profit 6,036 6,517 10,671 11,425
Selling, general, and administrative expenses 4,430   4,826   9,132   9,652  
Income from operations 1,606 1,691 1,539 1,773
Other expenses:
Other expense 351 463 594 928
Interest expense 2,721   2,694   5,440   5,393  
Total other expense 3,072   3,157   6,034   6,321  
Loss before income taxes (1,466 ) (1,466 ) (4,495 ) (4,548 )
Income taxes expense 13   100   26   200  
Net loss $ (1,479 ) (1,566 ) (4,521 ) (4,748 )
Net loss attributable to noncontrolling interest (67 ) (92 ) (172 ) (285 )
Net loss attributable to Glacier Water Services, Inc. $ (1,412 ) (1,474 ) (4,349 ) (4,463 )
 
Basic and diluted net loss per share $

(0.43

)

(0.45

)

(1.31

)

(1.35

)

Weighted average shares used in calculation 3,310,216 3,310,416 3,310,049 3,310,416
 
Pro-Forma, adjusted, EBITDA reconciliation
(In thousands)
(unaudited)
 
Three Months EndedSix Months Ended
June 30,June 29,June 30,June 29,
2013201420132014

Income from operations

$ 1,606 1,691 1,539 1,773
EBITDA adjustments
Addback of depreciation and amortization 4,105 4,296 8,032 8,601
Non-cash stock compensation expense 47   47   95   95  
Adjusted EBITDA $ 5,758   6,034   9,666   10,469  
 
 
                     
GLACIER WATER SERVICES, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(In thousands, except share data)
(unaudited)
       
Assets

December 29,

2013

June 29,

2014

Current assets:
Cash $ 4,264 5,288

Accounts receivable, net of allowance for doubtful accounts of $62 as of December 29, 2013 and June 29, 2014

2,617 2,877
Repair parts 4,344 4,530
Prepaid expenses and other current assets 1,808   1,917  
Total current assets 13,033 14,612
 
Property and equipment, net 69,852 68,556
Goodwill 18,747 18,747
Intangible assets, net 5,474 5,024
Investment in Glacier Water Trust I Common Securities 2,629 2,629
Investment in Glacier Water Trust I Preferred Securities 3,648 3,648
Deferred financing costs, net 4,008 3,941
Other assets 1,046   790  
Total assets $ 118,437   117,947  
 
Liabilities and Stockholders’ Deficit
Current liabilities:
Accounts payable $ 1,608 2,236
Accrued commissions 4,726 5,913
Accrued liabilities 3,854 3,774
Bank overdraft 2,297   2,134  
Total current liabilities 12,485 14,057
 
Junior subordinated debentures 87,629 87,629
Line of credit 43,500 46,000
Series B junior subordinated debentures 10,311 10,389
Contingent consideration liability 2,202 2,234
Long-term portion of deferred rent 91   59  
Total liabilities 156,218   160,368  
 
Commitments and contingencies
 
Stockholders’ deficit:

Preferred Stock, $0.01 par value; liquidation preference $100 per share; 8% cumulative redeemable convertible; Authorized, 100,000 shares; issued and outstanding, 0 shares at December 29, 2013 and June 29, 2014

- -

Common stock, $0.01 par value. Authorized 10,000,000 shares, issued 4,898,022; outstanding 3,310,416 at December 29, 2013 and June 29, 2014

50 50
Additional paid-in capital 24,227 24,321
Accumulated deficit (58,042 ) (62,505 )

Treasury stock, at cost, 1,587,606 shares at December 29, 2013 and June 29, 2014

(32,562 ) (32,562 )
Accumulated other comprehensive income 216   230  
Total stockholders’ deficit of Glacier Water Services, Inc. (66,111 ) (70,466 )
Noncontrolling interest 28,330   28,045  
Total stockholders’ deficit (37,781 ) (42,421 )
Total liabilities and stockholders’ deficit $ 118,437   117,947  
 





Glacier Water Services, Inc.

Steve Stringer, Chief Financial Officer

(760) 560-1111

Source: Glacier Water Services, Inc.


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