Glacier Water Announces Second Quarter 2012 Results
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 Ended | Six Months Ended | |||||||||||||||||||
July 3, | July 1, | July 3, | July 1, | |||||||||||||||||
2011 | 2012 | 2011 | 2012 | |||||||||||||||||
Revenues | $ | 26,281 | 27,966 | 49,930 | 52,965 | |||||||||||||||
Cost of revenues: | ||||||||||||||||||||
Operating expenses | 17,575 | 18,742 | 33,738 | 35,933 | ||||||||||||||||
Depreciation and amortization | 3,187 | 3,247 | 6,225 | 6,411 | ||||||||||||||||
Total cost of revenues | 20,762 | 21,989 | 39,963 | 42,344 | ||||||||||||||||
Gross profit | 5,519 | 5,977 | 9,967 | 10,621 | ||||||||||||||||
Selling, general, and administrative expenses | 4,236 | 4,657 | 8,305 | 9,136 | ||||||||||||||||
Income from operations | 1,283 | 1,320 | 1,662 | 1,485 | ||||||||||||||||
Interest expense | 2,268 | 2,509 | 4,530 | 5,063 | ||||||||||||||||
Loss before income taxes | (985 | ) | (1,189 | ) | (2,868 | ) | (3,578 | ) | ||||||||||||
Income taxes expense | 17 | 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 calculation | 2,720,048 | 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, | ||||||||||||
Assets | 2012 | 2012 | |||||||||||
Current assets: | |||||||||||||
Cash and cash equivalents | $ | 3,425 | 4,177 | ||||||||||
Accounts receivable, net of allowance for doubtful accounts | |||||||||||||
of $64 as of January 1, 2012 and July 1, 2012 | 1,777 | 1,986 | |||||||||||
Repair parts | 3,934 | 3,920 | |||||||||||
Prepaid expenses and other | 7,201 | 2,075 | |||||||||||
Total current assets | 16,337 | 12,158 | |||||||||||
Property and equipment, net | 53,896 | 57,832 | |||||||||||
Goodwill | 7,080 | 7,515 | |||||||||||
Investment in Glacier Water Trust I Common Securities | 2,629 | 2,629 | |||||||||||
Investment in Glacier Water Trust I Preferred Securities | 3,648 | 3,648 | |||||||||||
Equity investment | 1,000 | 1,000 | |||||||||||
Deferred financing costs, net | 4,266 | 4,204 | |||||||||||
Other assets | 872 | 898 | |||||||||||
Total assets | $ | 89,728 | 89,884 | ||||||||||
Liabilities and Stockholders' Deficit | |||||||||||||
Current liabilities: | |||||||||||||
Accounts payable | $ | 2,715 | 2,322 | ||||||||||
Accrued commissions | 4,026 | 4,672 | |||||||||||
Accrued liabilities | 2,654 | 3,011 | |||||||||||
Bank overdraft | 1,027 | 2,157 | |||||||||||
Total current liabilities | 10,422 | 12,162 | |||||||||||
Junior subordinated debentures | 87,629 | 87,629 | |||||||||||
Line of credit | 32,056 | 34,538 | |||||||||||
Series B junior subordinated debentures | 10,002 | 10,079 | |||||||||||
Long-term portion of deferred rent | 121 | 164 | |||||||||||
Total liabilities | 140,230 | 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, respectively | 49 | 50 | |||||||||||
Additional paid-in capital | 24,153 | 23,557 | |||||||||||
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 income | 358 | 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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