Glacier Water Announces First Quarter 2009 Results

VISTA, Calif.--(BUSINESS WIRE)--Glacier Water Services, Inc. (Pink Sheets:GWSV) announced results for the first quarter ended March 29, 2009.

Brian McInerney, Chief Executive Officer of Glacier Water, said, “Glacier recorded first quarter 2009 revenues of $22,839,000, up 9.4% over the first quarter of last year. The revenue increase was driven by a combination of new location growth and increased sales productivity by machine. Glacier operated approximately 1,000 more machines at retail locations compared to last year. Income from operations for the first quarter was $669,000 compared to a loss for the first quarter last year of $245,000, primarily as a result of the increased margin from strong revenue growth and lower fuel costs. At the end of the quarter, Glacier had more than 17,300 machines located at retailers across the U.S. and Canada providing high quality, great tasting drinking water.”

Revenues for the quarter ended March 29, 2009 increased to $22,839,000 from $20,880,000, representing a 9.4% increase versus the same period last year. The increase in revenue was primarily the result of growth in the number of locations this year compared to last year, coupled with an increase in average sales per machine.

The Company’s income from operations for the quarter ended March 29, 2009 was $669,000 compared to a loss from operations of $245,000 for the same period last year. The year over year improvement was driven by increased revenues coupled with reduced fuel costs. Income from operations for the first quarter included non-cash compensation expense of $89,000 as compared to $80,000 for the first quarter of 2008.

The Company’s net loss applicable to common stockholders for the quarter ended March 29, 2009, was $1,423,000, or $0.52 per basic and diluted share, compared to a loss of $2,440,000, or $0.91 per basic and diluted share for the same period last year.

With approximately 17,300 machines located in 42 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 28, 2008 are available on the Company’s website, www.glacierwater.com, or can be obtained by contacting Steve Stringer at (760) 560-1111.

Summary Financial Information
GLACIER WATER SERVICES, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(In thousands, except share and per share data)
(Unaudited)
		Three Months Ended
		March 29,				March 30,
		2009				2008
Revenues		$	22,839			20,880
Operating costs and expenses:
Operating expenses			14,677			13,686
Depreciation and amortization			3,901			3,937
Cost of goods sold			18,578			17,623
Selling, general, and administrative expenses			3,592			3,502
Total operating costs and expenses			22,170			21,125
Income (loss) from operations			669			(245	)
Interest expense			2,092			2,195
Loss before income taxes			(1,423	)		(2,440	)
Income tax benefit			-			-
Net loss applicable to common stockholders		$	(1,423	)		(2,440	)
Basic and diluted loss per share:
Net loss applicable to common stockholders		$	(0.52	)		(0.91	)
Weighted average shares used in calculation			2,711,599			2,690,613
Cash dividend per common share		$	-			0.50

GLACIER WATER SERVICES, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(In thousands, except share data)
		March 29,				December 28,
Assets		2009				2008
		(Unaudited)
Current assets:
Cash and cash equivalents		$	3,110			3,268
Accounts receivable, net of allowance for doubtful accounts
of $62 and $63 as of March 29, 2009 and December 28, 2008, respectively			1,591			1,678
Repair parts			2,784			2,778
Prepaid expenses and other			1,372			1,009
Total current assets			8,857			8,733
Property and equipment, net			42,876			44,460
Goodwill			7,080			7,080
Intangible assets, net of accumulated amortization of $1,210
and $1,207 as of March 29, 2009 and December 28, 2008, respectively			39			43
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			4,551			4,575
Other assets			757			865
Total assets		$	70,437			72,033
Liabilities and Stockholders’ Deficit
Current liabilities:
Accounts payable		$	1,249			1,304
Accrued commissions			3,277			2,947
Accrued liabilities			2,549			2,802
Bank overdraft			1,483			1,897
Current portion of deferred rent			32			55
Total current liabilities			8,590			9,005
Long-term debt			87,629			87,629
Long-term line of credit and notes payable			26,438			26,263
Long-term portion of deferred rent			23			11
Total liabilities			122,680			122,908
Commitments and contingencies
Stockholders’ deficit:
Common stock, $0.01 par value. Authorized 10,000,000 shares,
issued and outstanding 2,711,673, and 2,711,473 shares at
March 29, 2009 and December 28, 2008, respectively			44			44
Additional paid-in capital			15,924			15,832
Retained deficit			(35,527	)		(34,104	)
Treasury stock, at cost, 1,587,606 shares at March 29, 2009			(32,562	)		(32,562	)
and December 28, 2008
Accumulated other comprehensive income (loss)			(122	)		(85	)
Total stockholders’ deficit			(52,243	)		(50,875	)
Total liabilities and stockholders’ deficit		$	70,437			72,033