Glacier Water Announces Second Quarter 2012 Results

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Glacier Water Announces Second Quarter 2012 Results

VISTA, Calif.--(BUSINESS WIRE)-- Glacier Water Services, Inc. (Pink Sheets:GWSV) announced results for the second quarter ended July 1, 2012.

Brian McInerney, Chief Executive Officer of Glacier Water, said, "Our second quarter revenues increased 6.4% versus the same quarter last year and our year-to-date July 1, 2012 revenues increased 6.1%. Same-store revenues have increased 4.6% year-to-date. We continued to aggressively expand our network of machines across the U.S. and Canada adding approximately 1,100 machines across multiple retail channels compared to one year ago. Our second quarter income from operations increased to $1,320,000 and was impacted by an investment in infrastructure to support our continued growth in both water and ice machine placements. These infrastructure costs are incurred in advance of the machine placements reaching maturity in revenue and profits. At the end of the second quarter, Glacier operated more than 21,000 machines located at retailers across the U.S. and Canada, providing high quality, great tasting drinking water and premium ice."


Revenues for the second quarter ended July 1, 2012 increased 6.4% to $27,966,000 compared to $26,281,000 for the same quarter one year ago. For the six-month period ended July 1, 2012, revenues increased 6.1% to $52,965,000 compared to $49,930,000 for the same period last year. Sales growth was driven by both same store productivity and the increase in machines on location.

The Company's income from operations for the second quarter ended July 1, 2012 was $1,320,000 compared to $1,283,000 for the same period last year. For the six-month period ended July 1, 2012, income from operations was $1,485,000 compared to $1,662,000 for the same period last year. Income from operations year-to-date was positively impacted by the margin generated from the increased revenues, but was offset by increased operating costs to support the growth in machines, and in particular, labor and benefits, refurbishment, and vehicle costs. Income from operations for the first six months of 2012 and 2011 included non-cash compensation expense of $43,000 and $241,000 respectively.

The Company's net loss applicable to common stockholders for the quarter ended July 1, 2012 was $1,200,000 or $0.37 per basic and diluted share, compared to a net loss of $1,002,000, or $0.37 per basic share and diluted share, for the same period last year. For the six-month period ended July 1, 2012, the net loss applicable to common stockholders was $3,599,000, or $1.10 per basic and diluted share, compared to a net loss of $2,891,000 or $1.06 per basic share and diluted share, for the same period last year.

Subsequent to the quarter ending July 1, 2012, the Company converted its operating subsidiary, GW Services, organizational form from a corporation to a limited liability company ("GW Services, LLC") and raised $10,000,000 in equity from a limited liability company whose members are existing Company shareholders. This capital will fund our ongoing expansion of water vending and premium ice machine placements. GW Services, LLC issued $10,000,000 of preferred membership interests and 83,333 common membership interests. The preferred interests pay a dividend at an annual rate equal to the one-year treasury rate plus 6%, payable quarterly to the extent GW Services, LLC has adequate cash flow. The preferred interests may be redeemed at a premium amount by GW Services, LLC under certain conditions, including certain interest rate increases and/or liquidation.

With more than 21,000 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 January 1, 2012 are available on the Company's website,www.glacierwater.com, or 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
 
(In thousands, except share and per share data)
(Unaudited)
          
Three Months EndedSix Months Ended
July 3,July 1,July 3,July 1,
2011201220112012
Revenues$26,28127,96649,93052,965
Cost of revenues:
Operating expenses17,57518,74233,73835,933
Depreciation and amortization3,187 3,247 6,225 6,411 
Total cost of revenues20,762 21,989 39,963 42,344 
Gross profit5,5195,9779,96710,621
Selling, general, and administrative expenses4,236 4,657 8,305 9,136 
Income from operations1,2831,3201,6621,485
Interest expense2,268 2,509 4,530 5,063 
Loss before income taxes(985)(1,189)(2,868)(3,578)
Income taxes expense17 11 23 21 
Net loss$(1,002)(1,200)(2,891)(3,599)
 
Basic and diluted net loss per share$0.37 0.37 1.06 1.10 
Weighted average shares used in calculation2,720,048 3,276,195 2,720,048 3,276,189 
 

FINANCIAL RESULTS                                      

 GLACIER WATER SERVICES, INC.

 
GLACIER WATER SERVICES, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(In thousands, except share data)
(Unaudited)
 
    January 1, July 1,
Assets20122012
Current assets:
Cash and cash equivalents$3,4254,177
Accounts receivable, net of allowance for doubtful accounts
of $64 as of January 1, 2012 and July 1, 20121,7771,986
Repair parts3,9343,920
Prepaid expenses and other7,201 2,075 
Total current assets16,33712,158
 
Property and equipment, net53,89657,832
Goodwill7,0807,515
Investment in Glacier Water Trust I Common Securities2,6292,629
Investment in Glacier Water Trust I Preferred Securities3,6483,648
Equity investment1,0001,000
Deferred financing costs, net4,2664,204
Other assets872 898 
Total assets$89,728 89,884 
 
Liabilities and Stockholders' Deficit
Current liabilities:
Accounts payable$2,7152,322
Accrued commissions4,0264,672
Accrued liabilities2,6543,011
Bank overdraft1,027 2,157 
Total current liabilities10,42212,162
 
Junior subordinated debentures87,62987,629
Line of credit32,05634,538
Series B junior subordinated debentures10,00210,079
Long-term portion of deferred rent121 164 
Total liabilities140,230 144,572 
 
Commitments and contingencies
 
Stockholders' deficit:
Preferred Stock, $0.01 par value; Authorized 100,000 shares;
issued and outstanding, 0 shares at January 1, 2012 and July 1, 2012--
Common stock, $0.01 par value. Authorized 10,000,000 shares,
issued and outstanding, 3,225,767 and 3,276,482 shares at
January 1, 2012 and July 1, 2012, respectively4950
Additional paid-in capital24,15323,557
Accumulated deficit(42,500)(46,099)
Treasury stock, at cost, 1,587,606 shares at January 1, 2012 and July 1, 2012(32,562)(32,562)
Accumulated other comprehensive income358 366 
Total stockholders' deficit(50,502)(54,688)
Total liabilities and stockholders' deficit$89,728 89,884 



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

KEYWORDS:   United States  North America  California

INDUSTRY KEYWORDS:

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