Glacier Water Announces Third Quarter 2012 Results

Before you go, we thought you'd like these...
Before you go close icon

Glacier Water Announces Third Quarter 2012 Results

VISTA, Calif.--(BUSINESS WIRE)-- Glacier Water Services, Inc. (GWSV.pk) announced results for the third quarter ended September 30th, 2012.

Brian McInerney, Chief Executive Officer of Glacier Water, said, "Our third quarter revenues increased 4.5% versus the same quarter last year and our year-to-date September 30, 2012 revenues increased 5.5%. Same-store revenues have increased 3.0% year-to-date. We continued to aggressively expand our network of machines across the U.S. and Canada adding more than 1,100 machines across multiple retail channels compared to one year ago. Our third quarter income from operations increased to $2,781,000 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 third quarter, Glacier operated more than 21,500 machines located at retailers across the U.S. and Canada, providing high quality, great tasting drinking water and ice."


Revenues for the third quarter ended September 30, 2012 increased 4.5% to $31,330,000 compared to $29,970,000 for the same quarter one year ago. For the nine-month period ended September 30, 2012, revenues increased 5.5% to $84,295,000 compared to $79,901,000 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 third quarter ended September 30, 2012 was $2,781,000 compared to $1,839,000 for the same period last year. For the nine-month period ended September 30, 2012, income from operations was $4,266,000 compared to $3,500,000 for the same period last year. Income from operations year-to-date was positively impacted by the margin generated from the increased revenues, offset in part by increased operating costs to support the growth in machines, and in particular, labor and benefits and vehicle costs. The prior year income from operations included expenses associated to the initial public offering effort of $960,000 and $1,135,000 for the third quarter and nine months year-to-date, respectively. Income from operations for the first nine months of 2012 and 2011 included non-cash compensation expense of $87,000 and $361,000, respectively.

The Company's net income applicable to common stockholders for the quarter ended September 30, 2012 was $195,000 or $0.06 per basic and diluted share, compared to a net loss of $487,000, or $0.18 per basic and diluted share for the same period last year. For the nine-month period ended September 30, 2012, the net loss applicable to common stockholders was $3,404,000, or $1.04 per basic and diluted share, compared to a net loss of $3,378,000 or $1.24 per basic share and diluted share, for the same period last year.

In September 2012, the Company converted its U.S. operating subsidiary, GW Services Inc., from a corporation to a limited liability company ("GW Services, LLC"), enabling the Company to raise new equity. Initially, the Company raised $10,000,000 from a partnership made up of certain existing Company shareholders, in order to fund expansion of water vending and ice machine placements. The investors received $10,000,000 of Preferred Interests and 83,333 Common Membership Shares (2.39%) in GW Services, LLC. The Preferred Interests bear distributions at an annual rate equal to the one-year treasury rate plus 6%, distributable quarterly to the extent the Company has adequate cash flow. Subsequent to the third quarter on November 1, 2012, the Company raised an additional $5,000,000 from the same partnership in exchange for $5,000,000 of additional Preferred Interests and 34,420 Common Membership Shares (0.98%) in GW Services, LLC. The Preferred Interests may be redeemed at a premium amount by GW Services, LLC under certain conditions, including in the event of certain interest rate increases or liquidation.

Also subsequent to the third quarter, the Company amended its credit agreement with City National Bank in October 2012, increasing the amount available under the revolving facility to $50,000,000 through September 30, 2015. City National Bank is the Lead Arranger and Administrative Agent under the amended credit agreement with a second lender added to the facility. The amended credit agreement also includes an accordion feature allowing the Company to request an increase in the credit commitment up to an additional $25,000,000.

On October 26 2012, Glacier announced the completion of the acquisition of the assets of the Aqua Fill water vending business, which includes approximately 1,600 water vending machines in operation mainly in the western U.S., bringing the total number of machines in operation to more than 23,000.

With more than 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 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 EndedNine Months Ended
October 2,September 30,October 2,September 30,
2011201220112012
Revenues$29,97031,33079,90184,295
Cost of revenues:
Operating expenses19,90520,61053,64356,542
Depreciation and amortization3,302 3,4169,527 9,827 
Total cost of revenues23,207 24,02663,170 66,369 
Gross profit6,7637,30416,73117,926
Selling, general, and administrative expenses4,924 4,52313,231 13,660 
Income from operations1,8392,7813,5004,266
Interest expense2,314 2,5746,843 7,637 
Income (loss) before income taxes(475)207(3,343)(3,371)
Income taxes expense12 1235 33 
Net income (loss)$(487)195(3,378)(3,404)
 
Basic and diluted net income (loss) per share
Basic net income (loss) per share$(0.18)0.06(1.24)(1.04)
Weighted average shares used in calculation2,720,048 3,276,4822,720,048 3,276,286 
 
Diluted net income (loss) per share$(0.18)0.06(1.24)(1.04)
Weighted average shares used in calculation2,720,048 3,340,4632,720,048 3,276,286 
 

 

FINANCIAL RESULTS

GLACIER WATER SERVICES, INC.

 
GLACIER WATER SERVICES, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(In thousands, except share data)
(Unaudited)
 
   January 1,  September 30,
Assets

2012

2012
Current assets:
Cash and cash equivalents$3,42511,362
Accounts receivable, net of allowance for doubtful accounts
of $64 as of January 1, 2012 and September 30, 20121,7772,113
Repair parts3,9344,285
Prepaid expenses and other7,201 1,941 
Total current assets16,33719,701
 
Property and equipment, net53,89660,696
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, net4,2664,173
Other assets872 773 
Total assets$89,728 100,135 
 

Liabilities and Stockholders' Deficit

Current liabilities:
Accounts payable$2,7152,452
Accrued commissions4,0264,941
Accrued liabilities2,6543,618
Bank overdraft1,027 2,231 
Total current liabilities10,42213,242
 
Junior subordinated debentures87,62987,629
Line of credit32,05633,500
Series B junior subordinated debentures10,00210,118
Long-term portion of deferred rent121 150 
Total liabilities140,230 144,639 
 
Commitments and contingencies
 
Stockholders' deficit:
Preferred interests LLC investment-9,856
Preferred stock, $0.01 par value; Authorized 100,000 shares;
issued and outstanding, 0 shares at January 1, 2012 and September 30, 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 September 30, 2012, respectively4950
Additional paid-in capital24,15323,602
Accumulated deficit(42,500)(45,904)
Treasury stock, at cost, 1,587,606 shares at January 1, 2012 and September 30, 2012(32,562)(32,562)
Accumulated other comprehensive income358 454 
Total stockholders' deficit(50,502)(44,504)
Total liabilities and stockholders' deficit$89,728 100,135 



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

KEYWORDS:   United States  North America  California

INDUSTRY KEYWORDS:

The article Glacier Water Announces Third Quarter 2012 Results originally appeared on Fool.com.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners