VISTA, Calif.--(BUSINESS WIRE)--Glacier Water Services, Inc. (OTC Pink: GWSV) announced results for the third quarter of the fiscal year 2014, ended September 28, 2014.
Brian McInerney, Chief Executive Officer of Glacier Water, said, “Our third quarter and year-to-date revenues increased 6.3% versus the comparable periods last year. On a same-store basis, revenues increased 5.3% year-to-date. The Company’s first nine months of adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) was $18,379,000, an increase of 11.1% or $1,832,000 over the same period last year. At the end of the third quarter, Glacier operated approximately 23,500 machines located at retailers across the U.S. and Canada, providing high quality, great tasting drinking water or premium ice.”
Revenues for the third quarter ended September 28, 2014 increased 6.3% to $37,690,000 compared to $35,458,000 for the same period last year. For the nine-month period ended September 28, 2014, revenues increased 6.3% to $102,057,000 compared to $96,032,000 for the same period last year. Sales growth for the third quarter and nine-month period ended September 28, 2014 was driven primarily by positive growth in same-store productivity.
The Company’s income from operations for the third quarter ended September 28, 2014 increased 31.2% to $3,589,000 compared to $2,735,000 for the same period last year. For the nine-month period ended September 28, 2014, income from operations increased 25.5% to $5,362,000 compared to $4,273,000 for the same period last year. The increase in income from operations was driven by the margin generated from growth in revenues and better asset utilization across the Company, offset by increased depreciation and amortization of $175,000 and $743,000, respectively, and operating costs, in particular labor and benefits and vehicle fleet expense.
The Company’s net income applicable to common stockholders for the quarter ended September 28, 2014 was $320,000 or $0.10 per basic and diluted share, compared to a net loss of $358,000, or $0.11 per basic and diluted share for the same period last year. For the nine-month period ended September 28, 2014, the net loss applicable to common stockholders was $4,139,000 or $1.25 per basic and diluted share, compared to a net loss of $4,708,000 or $1.42 per basic and diluted share, for the same period last year. Net income attributable to the non-controlling interests for the third quarter ended September 28, 2014 was $21,000 and the net loss for the nine-month period ended September 28, 2014 was $268,000.
With approximately 23,500 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.
FINANCIAL RESULTS |
GLACIER WATER SERVICES, INC. |
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GLACIER WATER SERVICES, INC. AND SUBSIDIARIES | ||||||||||||||||||||
Consolidated Statements of Operations | ||||||||||||||||||||
(In thousands, except share and per share data) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Three Months Ended |
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Nine Months Ended | ||||||||||||||||||
September 29, | September 28, | September 29, | September 28, | |||||||||||||||||
2013 | 2014 | 2013 | 2014 | |||||||||||||||||
Revenues | $ | 35,458 | 37,690 | 96,032 | 102,057 | |||||||||||||||
Cost of revenues: | ||||||||||||||||||||
Operating expenses | 24,063 | 25,253 | 65,934 | 69,593 | ||||||||||||||||
Depreciation and amortization | 4,099 | 4,274 | 12,132 | 12,875 | ||||||||||||||||
Total cost of revenues | 28,162 | 29,527 | 78,066 | 82,468 | ||||||||||||||||
Gross profit | 7,296 | 8,163 | 17,966 | 19,589 | ||||||||||||||||
Selling, general, and administrative expenses | 4,561 | 4,574 | 13,693 | 14,227 | ||||||||||||||||
Income from operations | 2,735 | 3,589 | 4,273 | 5,362 | ||||||||||||||||
Other expenses: | ||||||||||||||||||||
Other expense | 393 | 464 | 987 | 1,392 | ||||||||||||||||
Interest expense | 2,703 | 2,684 | 8,143 | 8,077 | ||||||||||||||||
Total other expense | 3,096 | 3,148 | 9,130 | 9,469 | ||||||||||||||||
Income (loss) before income taxes | (361 | ) | 441 | (4,857 | ) | (4,107 | ) | |||||||||||||
Income taxes expense | 13 | 100 | 39 | 300 | ||||||||||||||||
Net income (loss) | $ | (374 | ) | 341 | (4,896 | ) | (4,407 | ) | ||||||||||||
Net income (loss) attributable to noncontrolling interest | (16 | ) | 21 | (188 | ) | (268 | ) | |||||||||||||
Net income (loss) attributable to Glacier Water Services, Inc. | $ | (358 | ) | 320 | (4,708 | ) | (4,139 | ) | ||||||||||||
Basic and diluted net income (loss) per share | ||||||||||||||||||||
Basic net income (loss) per share | $ | (0.11 | ) | 0.10 | (1.42 | ) | (1.25 | ) | ||||||||||||
Weighted average shares used in calculation | 3,310,286 | 3,310,416 | 3,310,128 | 3,310,416 | ||||||||||||||||
Diluted net income (loss) per share | $ | (0.11 | ) | 0.10 | (1.42 | ) | (1.25 | ) | ||||||||||||
Weighted average shares used in calculation | 3,310,286 | 3,360,196 | 3,310,128 | 3,310,416 | ||||||||||||||||
Pro-Forma, adjusted, EBITDA reconciliation | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 29, | September 28, | September 29, | September 28, | |||||||||||||||||
2013 | 2014 | 2013 | 2014 | |||||||||||||||||
Income from operations | $ | 2,735 | 3,589 | 4,273 | 5,362 | |||||||||||||||
EBITDA adjustments | ||||||||||||||||||||
Addback of depreciation and amortization | 4,099 | 4,274 | 12,132 | 12,875 | ||||||||||||||||
Non-cash stock compensation expense | 47 | 47 | 142 | 142 | ||||||||||||||||
Adjusted EBITDA | $ | 6,881 | 7,910 | 16,547 | 18,379 | |||||||||||||||
FINANCIAL RESULTS |
GLACIER WATER SERVICES, INC. |
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GLACIER WATER SERVICES, INC. AND SUBSIDIARIES | |||||||||||
Consolidated Balance Sheets | |||||||||||
(In thousands, except share data) | |||||||||||
(unaudited) | |||||||||||
Assets | December 29, | September 28, | |||||||||
2013 | 2014 | ||||||||||
Current assets: | |||||||||||
Cash | $ | 4,264 | 6,674 | ||||||||
Accounts receivable, net of allowance for doubtful accounts of $62 as of December 29, 2013 and September 28, 2014 |
2,617 | 3,168 | |||||||||
Repair parts | 4,344 | 4,783 | |||||||||
Prepaid expenses and other current assets | 1,808 | 2,053 | |||||||||
Total current assets | 13,033 | 16,678 | |||||||||
Property and equipment, net | 69,852 | 67,585 | |||||||||
Goodwill | 18,747 | 18,747 | |||||||||
Intangible assets, net | 5,474 | 4,798 | |||||||||
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 | 3,907 | |||||||||
Other assets | 1,046 | 836 | |||||||||
Total assets | $ | 118,437 | 118,828 | ||||||||
Liabilities and Stockholders’ Deficit | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 1,608 | 1,481 | ||||||||
Accrued commissions | 4,726 | 6,302 | |||||||||
Accrued liabilities | 3,854 | 4,553 | |||||||||
Bank overdraft | 2,297 | 3,324 | |||||||||
Total current liabilities | 12,485 | 15,660 | |||||||||
Junior subordinated debentures | 87,629 | 87,629 | |||||||||
Line of credit | 43,500 | 45,000 | |||||||||
Series B junior subordinated debentures | 10,311 | 10,427 | |||||||||
Contingent consideration liability | 2,202 | 2,250 | |||||||||
Long-term portion of deferred rent | 91 | 26 | |||||||||
Total liabilities | 156,218 | 160,992 | |||||||||
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 September 28, 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 September 28, 2014; |
50 | 50 | |||||||||
Additional paid-in capital | 24,227 | 24,369 | |||||||||
Accumulated deficit | (58,042 | ) | (62,181 | ) | |||||||
Treasury stock, at cost, 1,587,606 shares at December 29, 2013 and September 28, 2014 |
(32,562 | ) | (32,562 | ) | |||||||
Accumulated other comprehensive income | 216 | 98 | |||||||||
Total stockholders’ deficit of Glacier Water Services, Inc. | (66,111 | ) | (70,226 | ) | |||||||
Noncontrolling interest | 28,330 | 28,062 | |||||||||
Total stockholders’ deficit | (37,781 | ) | (42,164 | ) | |||||||
Total liabilities and stockholders’ deficit | $ | 118,437 | 118,828 | ||||||||