Glacier Water Announces Fiscal Year 2015 Results

Record Revenues of $138 Million

VISTA, Calif.--()--Glacier Water Services, Inc. (OTC Pink: GWSV) announced results for the fiscal year ended January 3, 2016.

Brian McInerney, Chief Executive Officer of Glacier Water, said, “Our 2015 revenues were $138,328,000, increasing 4.1% over the prior year, with same-store revenues increasing 3.2%. We continued to optimize our network of water machines across the U.S. and Canada and focus on growth in the in-store ice bagging segment of our business. The Company’s 2015 operating income grew 32.6% to $7,235,000, while adjusted earnings before interest, taxes, and depreciation and amortization (EBITDA) increased 5.8% to $24,183,000. At the end of our fiscal year 2015, we operated approximately 23,000 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 January 3, 2016 increased to $138,328,000 from $132,921,000, representing a 4.1% increase versus fiscal year 2014. Sales growth was driven by an increase in the number of ice placements, same-store sales growth of 3.2% resulting from a combination of growth in machine productivity and a 53rd week of sales in the fiscal year 2015 versus 52 weeks in the fiscal year 2014 – estimated at $2 million in additional revenue, offset slightly by store closures resulting from retail consolidation.

The Company’s income from operations for the year ended January 3, 2016 increased 32.6% to $7,235,000 compared to $5,458,000 for the prior year. The increase in income from operations was driven by the margin generated from growth in revenues, lower fuel costs, and lower depreciation and amortization of $329,000, offset slightly by higher machine service and maintenance costs.

The Company’s net loss applicable to common stockholders for the year ended January 3, 2016 was $6,244,000 or $1.88 per basic and diluted share, compared to a net loss of $7,129,000, or $2.15 per basic and diluted share for the prior year. The net loss for fiscal 2015 included a non-recurring charge to other expense in the second quarter of $518,000 adjusting contingent consideration liability for a 2012 Company acquisition. Excluding the non-recurring charge, the net loss applicable to common stockholders for fiscal 2015 was $5,726,000 or $1.73 per basic and diluted share. Net loss attributable to non-controlling interests for fiscal 2015 was $403,000 compared to a net loss of $462,000 for the prior year.

With approximately 23,000 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 January 3, 2016 can be obtained by contacting Steve Stringer at steve.stringer@glacierwater.com.

 

FINANCIAL RESULTS

GLACIER WATER SERVICES, INC.

 
GLACIER WATER SERVICES, INC. AND SUBSIDIARIES
 
Consolidated Statements of Operations
 
Years ended December 28, 2014 and January 3, 2016
(In thousands, except share and per share data)
           
2014 2015
Revenues $ 132,921 138,328
Cost of revenues:
Operating expenses 91,427 95,331
Depreciation and amortization 17,207   16,878  
Total cost of revenues 108,634   112,209  
Gross profit 24,287 26,119
Selling, general, and administrative expenses 18,829   18,884  
Income from operations 5,458   7,235  
Other expenses:
Other expense 1,859 2,371
Interest expense 10,790   11,191  
Total other expense 12,649   13,562  
Loss before income taxes (7,191 ) (6,327 )
Income taxes expense 400   320  
Net loss $ (7,591 ) (6,647 )
Net loss attributable to noncontrolling interest (462 ) (403 )
Net loss attributable to Glacier Water Services, Inc. $ (7,129 ) (6,244 )
 
Basic and diluted net loss per share $ (2.15 ) (1.88 )
Weighted average shares used in calculation 3,310,416 3,314,796
 
 
Pro-Forma, adjusted, EBITDA reconciliation
 
Years ended December 28, 2014 and January 3, 2016
(In thousands)
 
2014 2015
Income from operations $ 5,458 7,235
EBITDA adjustments
Addback of depreciation and amortization 17,207 16,878
Non-cash stock compensation expense 189   70  
Adjusted EBITDA $ 22,854   24,183  
 
 

FINANCIAL RESULTS

GLACIER WATER SERVICES, INC.

 
GLACIER WATER SERVICES, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
December 28, 2014 and January 3, 2016
(In thousands, except share data)
       
Assets 2014 2015
Current assets:
Cash $ 4,519 5,340

Accounts receivable, net of allowance for doubtful accounts of $62 and $63 as of December 28, 2014 and January 3, 2016, respectively

2,844 2,995
Repair parts 5,046 5,371
Prepaid expenses and other current assets 1,347   2,111  
Total current assets 13,756 15,817
 
Property and equipment, net 66,552 63,490
Goodwill 18,747 18,747
Intangible assets, net 4,573 3,851
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 3,861 3,699
Other assets 973   743  
Total assets $ 114,739   112,624  
 
Liabilities and Stockholders’ Deficit
Current liabilities:
Accounts payable $ 1,617 1,663
Accrued commissions 4,951 5,703
Accrued liabilities 3,964 4,465
Bank overdraft 2,233   1,984  
Total current liabilities 12,765 13,815
 
Junior subordinated debentures 87,629 87,629
Line of credit 46,500 50,000

Series B Junior subordinated debentures

10,466 10,624
Contingent consideration liability 2,225 2,022
Deferred tax liability 531 838
Long-term portion of deferred rent 31   44  
Total liabilities 160,147   164,972  
 
 
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 28, 2014 and January 3, 2016

- -

Common stock, $0.01 par value. Authorized, 10,000,000 shares; issued 4,904,522, outstanding 3,310,416 and 3,316,916 shares at December 28, 2014 and January 3, 2016

50 50
Additional paid-in capital 24,416 24,538
Accumulated deficit (65,171 ) (71,415 )
Treasury stock, at cost, 1,587,606 shares at December 28, 2014 and January 3, 2016 (32,562 ) (32,562 )
Accumulated other comprehensive loss (9 ) (424 )
Total stockholders’ deficit of Glacier Water Services, Inc. (73,276 ) (79,813 )
Noncontrolling interest 27,868   27,465  
Total stockholders’ deficit (45,408 ) (52,348 )
Total liabilities and stockholders’ deficit $ 114,739   112,624  

Contacts

Glacier Water Services, Inc.
Steve Stringer, Chief Financial Officer
steve.stringer@glacierwater.com

Release Summary

Glacier Water announces fiscal year 2015 results.

Contacts

Glacier Water Services, Inc.
Steve Stringer, Chief Financial Officer
steve.stringer@glacierwater.com