Glacier Water Announces First Quarter Fiscal Year 2014 Results

VISTA, Calif.--()--Glacier Water Services, Inc. (Pink Sheets:GWSV) announced results for the first quarter of the fiscal year 2014, ended March 30, 2014.

Brian McInerney, Chief Executive Officer of Glacier Water, said, “Our first quarter revenues were $30,383,000, increasing $1,805,000 or 6.3% over the prior year. Same-store revenues increased 6.7%. The Company’s first quarter adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were $4,434,000, increasing 13.5% or $526,000 over the same period last year. At the end of the first 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 first quarter ended March 30, 2014 increased 6.3% to $30,383,000 compared to $28,578,000 for the same period last year. Sales growth was driven by both positive growth in same-store productivity and the number of machines on location.

The Company’s income from operations for the first quarter ended March 30, 2014 was $83,000 compared to a loss from operations of $66,000 for the same period last year. Income from operations for the first quarter of 2014 was positively impacted by the margin generated from growth in revenues, offset by increased depreciation and amortization of $377,000 and increased operating costs, in particular, labor and benefits and vehicle fleet expense.

The Company’s net loss applicable to common stockholders for the first quarter ended March 30, 2014 was $2,988,000 or $0.90 per basic and diluted share, compared to a net loss of $2,937,000, or $0.89 per basic and diluted share for the same period last year. Net loss attributable to non-controlling interests for the first quarter was $193,000, compared to a net loss of $105,000 for the prior year.

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 Ended
March 31,       March 30,
2013 2014
Revenues $ 28,578 30,383
Cost of revenues:
Operating expenses 20,015 21,169
Depreciation and amortization 3,927   4,304  
Total cost of revenues 23,942   25,473  
Gross profit 4,636 4,910
Selling, general, and administrative expenses 4,702   4,827  

Income (loss) from operations

(66 ) 83  
Other expenses:
Other expense 244 465
Interest expense 2,719   2,699  
Total other expense 2,963   3,164  
Loss before income taxes (3,029 ) (3,081 )

Income tax expense

13   100  
Net loss $ (3,042 ) (3,181 )
Net loss attributable to noncontrolling interest (105 ) (193 )
Net loss attributable to Glacier Water Services, Inc. $ (2,937 ) (2,988 )
 
Basic and diluted net loss per share $ (0.89 ) (0.90 )
Weighted average shares used in calculation 3,309,882 3,310,416
 
 
 
Pro-Forma, adjusted, EBITDA reconciliation
(In thousands)
(unaudited)
Three Months Ended
March 31, March 30,
2013 2014

Income (loss) from operations

$ (66 ) 83
EBITDA adjustments
Addback of depreciation and amortization 3,927 4,304
Non-cash stock compensation expense 47   47  
Adjusted EBITDA $ 3,908   4,434  
 
 
GLACIER WATER SERVICES, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(In thousands, except share data)
(unaudited)
      December 29,       March 30,
Assets 2013 2014
Current assets:
Cash and cash equivalents $ 4,264 4,759
Accounts receivable, net of allowance for doubtful accounts of $62
as of December 29, 2013 and March 30, 2014 2,617 2,665
Repair parts 4,344 4,418
Prepaid expenses and other current assets 1,808   2,197  
Total current assets 13,033 14,039
 
Property and equipment, net 69,852 68,853
Goodwill 18,747 18,747
Intangible assets, net 5,474 5,249
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 3,974
Other assets 1,046   871  
Total assets $ 118,437   118,010  
 
Liabilities and Stockholders’ Deficit
Current liabilities:
Accounts payable $ 1,608 1,770
Accrued commissions 4,726 5,289
Accrued liabilities 3,854 4,445
Bank overdraft 2,297   2,228  
Total current liabilities 12,485 13,732
 
Junior subordinated debentures 87,629 87,629
Line of credit 43,500 45,000
Series B junior subordinated debentures 10,311 10,350
Contingent consideration liability 2,202 2,218
Long-term portion of deferred rent 91   75  
Total liabilities 156,218   159,004  
 
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 March 30, 2014 - -
Common stock, $0.01 par value. Authorized 10,000,000 shares; issued 4,898,022,
outstanding 3,310,416 shares at December 29, 2013 and March 30, 2014 50 50
Additional paid-in capital 24,227 24,274
Accumulated deficit (58,042 ) (61,030 )
Treasury stock, at cost, 1,587,606 shares at December 29,2013 and March 30, 2014 (32,562 ) (32,562 )
Accumulated other comprehensive income 216   137  
Total stockholders’ deficit of Glacier Water Services, Inc. (66,111 ) (69,131 )
Noncontrolling interest 28,330   28,137  
Total stockholders’ deficit (37,781 ) (40,994 )
Total liabilities and stockholders’ deficit $ 118,437   118,010  

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