Glacier Water Announces Fiscal Year 2013 Results

Record Revenues of $125 Million

VISTA, Calif.--()--Glacier Water Services, Inc. (Pink Sheets:GWSV) announced results for the fiscal year ended December 29, 2013.

Brian McInerney, Chief Executive Officer of Glacier Water, said, “Our 2013 revenues were $124,995,000, increasing 11.7% over the prior year with same-store revenues increasing 1%. We continued to expand our network of machines across the U.S. and Canada, adding approximately 300 machines across multiple retail channels. The Company’s annual adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for 2013 increased by $3,024,000 to $21,067,000. During the year we completed the integrations of both the Aqua Fill and the ISBMCO asset acquisitions. At the end of the fiscal year 2013, Glacier operated approximately 23,700 machines located at retailers across the U.S. and Canada, providing high quality, great tasting drinking water and premium ice.”

Revenues for the year ended December 29, 2013 increased to $124,995,000 from $111,874,000 representing an 11.7% increase versus fiscal year 2012. Sales growth was driven by the increase in machines on location, which included approximately 1,600 machines from the October 2012 Aqua Fill asset acquisition, other new water vending and ice machine placements and from positive growth in same-store productivity.

The Company’s income from operations for the year ended December 29, 2013 was $2,814,000 compared to $4,404,000 for the prior year. Income from operations for 2013 was positively impacted by the margin generated from growth in revenues, offset by increased depreciation and amortization of $4,543,000 associated primarily with the Aqua Fill asset acquisition completed in 2012. Depreciation in 2013 also included a one-time, non-cash vending machine write-off of $1,539,000. Operating costs increased year-over-year to support the increased machine population, in particular, labor and benefits, maintenance and repair costs.

The Company’s net loss applicable to common stockholders for the year ended December 29, 2013 was $9,399,000 or $2.84 per basic and diluted share, compared to a net loss of $6,143,000, or $1.88 per basic and diluted share for the prior year. Net loss attributable to non-controlling interests for the year was $393,000, which interests relate to the conversion of the Company’s U.S. operating subsidiary, GW Services Inc., from a corporation to a limited liability company and subsequent capital contributions by investors of $14,000,000 in 2013 and $15,000,000 in 2012.

With approximately 23,700 machines located in 46 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.

FINANCIAL RESULTS

GLACIER WATER SERVICES, INC.

 
GLACIER WATER SERVICES, INC. AND SUBSIDIARIES
 
Consolidated Statements of Operations
 
Years ended December 30, 2012 and December 29, 2013
(In thousands, except share and per share data)
         
2012   2013  
Revenues $ 111,874 124,995
Cost of revenues:
Operating expenses 76,390 85,848
Depreciation and amortization 13,521   18,064  
Total cost of revenues 89,911   103,912  
Gross profit 21,963 21,083
Selling, general, and administrative expenses 17,559   18,269  
Income from operations 4,404   2,814  
Other expenses:
Other expense 335 1,490
Interest expense 10,255   10,718  
Total other expense 10,590   12,208  
Loss before income taxes (6,186 ) (9,394 )
Income taxes expense 45   398  
Net loss $ (6,231 ) (9,792 )
Net loss attributable to noncontrolling interest (88 ) (393 )
Net loss attributable to Glacier Water Services, Inc. $ (6,143 ) (9,399 )
 
Basic and diluted net loss per share $ (1.88 ) (2.84 )
Weighted average shares used in calculation 3,276,673 3,310,200
 
 
Pro-Forma, adjusted, EBITDA reconciliation
Years ended December 30, 2012 and December 29, 2013
(In thousands)
 
2012   2013  
Income from operations $ 4,404 2,814
EBITDA adjustments
Addback of depreciation and amortization 13,521 18,064
Non-cash stock compensation expense 118   189  
Adjusted EBITDA $ 18,043   21,067  
 

FINANCIAL RESULTS

GLACIER WATER SERVICES, INC.

 
GLACIER WATER SERVICES, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
December 30, 2012 and December 29, 2013
(In thousands, except share data)
     
Assets

 

2012   2013  
Current assets:
Cash and cash equivalents $ 5,229 4,264

Accounts receivable, net of allowance for doubtful
accounts of $64 and $62 as of December 30, 2012 and
December 29, 2013, respectively

2,196 2,617
Repair parts 5,142 4,344
Prepaid expenses and other current assets 1,317   1,808  
Total current assets 13,884 13,033
 
Property and equipment, net 67,963 69,852
Goodwill 15,392 18,747
Intangible assets, net 2,537 5,474
Investment in Glacier Water Trust I Common Securities 2,629 2,629
Investment in Glacier Water Trust I Preferred Securities 3,648 3,648
Equity investment and note receivable, net 1,884 -
Deferred financing costs, net 4,143 4,008
Other assets 1,131   1,046  
Total assets $ 113,211   118,437  
 
Liabilities and Stockholders’ Deficit
Current liabilities:
Accounts payable $ 3,169 1,608
Accrued commissions 4,665 4,726
Accrued liabilities 6,009 3,854
Bank overdraft 2,214   2,297  
Total current liabilities 16,057 12,485
 
Junior subordinated debentures 87,629 87,629
Line of credit 41,500 43,500
Series B junior subordinated debentures 10,157 10,311
Contingent consideration liability - 2,202
Long-term portion of deferred rent 160   91  
Total liabilities 155,503   156,218  
 
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 30, 2012 and
December 29, 2013

- -

Common stock, $0.01 par value. Authorized 10,000,000
shares; issued 4,867,463 and 4,898,022 shares at
December 30, 2012 and December 29, 2013,
respectively; outstanding, 3,279,857 and 3,310,416
shares at December 30, 2012 and December 29, 2013,
respectively

 
 
50 50
Additional paid-in capital 23,682 24,227
Accumulated deficit (48,643 ) (58,042 )
Treasury stock, at cost, 1,587,606 shares at December 30, 2012 and (32,562 ) (32,562 )
December 29, 2013
Accumulated other comprehensive income 418   216  
Total stockholders’ deficit of Glacier Water Services, Inc. (57,055 ) (66,111 )
Noncontrolling interest 14,763   28,330  
Total stockholders’ deficit (42,292 ) (37,781 )
Total liabilities and stockholders’ deficit $ 113,211   118,437  

Contacts

Glacier Water Services, Inc.
Steve Stringer, Chief Financial Officer
(760) 560-1111

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Contacts

Glacier Water Services, Inc.
Steve Stringer, Chief Financial Officer
(760) 560-1111