VISTA, Calif.--(BUSINESS WIRE)--Glacier Water Services, Inc. (OTC Pink:GWSV) announced results for the third quarter of the fiscal year 2015, ended September 27, 2015.
Brian McInerney, Chief Executive Officer of Glacier Water, said, “Our year-to-date revenues increased 2.1% versus the comparable period last year, with third quarter revenue growth of 3.7%. Same-store revenues increased 1.1% year-to-date. The Company’s first nine months of adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were $18,804,000, an increase of 2.3%, or $425,000, over the same period last year. Income from operations for the first nine months grew 16.3% to $6,236,000. At the end of the third quarter, Glacier operated approximately 23,000 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 27, 2015 increased 3.7% to $39,092,000 compared to $37,690,000 for the same period last year. For the nine-month period ended September 27, 2015, revenues increased 2.1% to $104,199,000 compared to $102,057,000 for the same period last year. Sales growth for the third quarter and nine-month period ended September 27, 2015 was driven by growth in ice revenues and same store water vending sales productivity, which was partially offset by the impact of closed stores on the water vending side of the business.
The Company’s income from operations for the third quarter ended September 27, 2015 increased 13.0% to $4,054,000 compared to $3,589,000 for the same period last year. For the nine-month period ended September 27, 2015, income from operations increased 16.3% to $6,236,000 compared to $5,362,000 for the same period last 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 $132,000 and $377,000, respectively, offset slightly by higher machine maintenance costs.
The Company’s net income applicable to common stockholders for the quarter ended September 27, 2015 was $687,000 or $0.21 per basic and diluted share, compared to a net income of $320,000, or $0.10 per basic and diluted share for the same period last year. For the nine-month period ended September 27, 2015, the net loss applicable to common stockholders was $3,985,000 or $1.20 per basic and diluted share, compared to a net loss of $4,139,000 or $1.25 per basic and diluted share, for the same period last year. The nine-month period ending September 27, 2015 net loss 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 the nine-month period was $3,467,000, or $1.05 per basic and diluted share. Net income attributable to the non-controlling interests for the third quarter was $45,000 and the net loss attributable for the nine-month period ended September 27, 2015 was $258,000.
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 December 28, 2014 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 | Nine Months Ended | ||||||||||||||||||
| September 28, | September 27, | September 28, | September 27, | ||||||||||||||||
| 2014 | 2015 | 2014 | 2015 | ||||||||||||||||
| Revenues | $ | 37,690 | 39,092 | 102,057 | 104,199 | ||||||||||||||
| Cost of revenues: | |||||||||||||||||||
| Operating expenses | 25,253 | 26,223 | 69,593 | 71,437 | |||||||||||||||
| Depreciation and amortization | 4,274 | 4,142 | 12,875 | 12,498 | |||||||||||||||
| Total cost of revenues | 29,527 | 30,365 | 82,468 | 83,935 | |||||||||||||||
| Gross profit | 8,163 | 8,727 | 19,589 | 20,264 | |||||||||||||||
| Selling, general, and administrative expenses | 4,574 | 4,673 | 14,227 | 14,028 | |||||||||||||||
| Income from operations | 3,589 | 4,054 | 5,362 | 6,236 | |||||||||||||||
| Other expenses: | |||||||||||||||||||
| Other expense | 464 | 500 | 1,392 | 2,002 | |||||||||||||||
| Interest expense | 2,684 | 2,747 | 8,077 | 8,232 | |||||||||||||||
| Total other expense | 3,148 | 3,247 | 9,469 | 10,234 | |||||||||||||||
| Income (loss) before income taxes | 441 | 807 | (4,107 | ) | (3,998 | ) | |||||||||||||
| Income taxes expense | 100 | 75 | 300 | 245 | |||||||||||||||
| Net income (loss) | $ | 341 | 732 | (4,407 | ) | (4,243 | ) | ||||||||||||
| Net income (loss) attributable to noncontrolling interest | 21 | 45 | (268 | ) | (258 | ) | |||||||||||||
| Net income (loss) attributable to Glacier Water Services, Inc. | $ | 320 | 687 | (4,139 | ) | (3,985 | ) | ||||||||||||
| Basic and diluted net income (loss) per share | |||||||||||||||||||
| Basic net income (loss) per share | $ | 0.10 | 0.21 | (1.25 | ) | (1.20 | ) | ||||||||||||
| Weighted average shares used in calculation | 3,310,416 | 3,316,916 | 3,310,416 | 3,315,845 | |||||||||||||||
| Diluted net income (loss) per share | $ | 0.10 | 0.21 | (1.25 | ) | (1.20 | ) | ||||||||||||
| Weighted average shares used in calculation | 3,360,196 | 3,351,164 | 3,310,416 | 3,315,845 | |||||||||||||||
| Pro-Forma, adjusted, EBITDA reconciliation | |||||||||||||||||
| (In thousands) | |||||||||||||||||
| (unaudited) | |||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||
| September 28, | September 27, | September 28, | September 27, | ||||||||||||||
| 2014 | 2015 | 2014 | 2015 | ||||||||||||||
| Income from operations | $ | 3,589 | 4,054 | 5,362 | 6,236 | ||||||||||||
| EBITDA adjustments | |||||||||||||||||
| Addback of depreciation and amortization | 4,274 | 4,142 | 12,875 | 12,498 | |||||||||||||
| Non-cash stock compensation expense | 47 | 9 | 142 | 70 | |||||||||||||
| Adjusted EBITDA | $ | 7,910 | 8,205 | 18,379 | 18,804 | ||||||||||||
|
FINANCIAL RESULTS |
GLACIER WATER SERVICES, INC. |
||||||||||
| GLACIER WATER SERVICES, INC. AND SUBSIDIARIES | |||||||||||
| Consolidated Balance Sheets | |||||||||||
| (In thousands, except share data) | |||||||||||
| (unaudited) | |||||||||||
| December 28, | September 27, | ||||||||||
| Assets | 2014 | 2015 | |||||||||
| Current assets: | |||||||||||
| Cash | $ | 4,519 | 6,619 | ||||||||
|
Accounts receivable, net of allowance for doubtful accounts of $62 as of December 28, 2014 and September 27, 2015 |
2,844 | 3,504 | |||||||||
| Repair parts | 5,046 | 5,294 | |||||||||
| Prepaid expenses and other current assets | 1,347 | 2,252 | |||||||||
| Total current assets | 13,756 | 17,669 | |||||||||
| Property and equipment, net | 66,552 | 64,110 | |||||||||
| Goodwill | 18,747 | 18,747 | |||||||||
| Intangible assets, net | 4,573 | 4,031 | |||||||||
| 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 | 3,739 | |||||||||
| Other assets | 973 | 689 | |||||||||
| Total assets | $ | 114,739 | 115,262 | ||||||||
| Liabilities and Stockholders’ Deficit | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 1,617 | 1,870 | ||||||||
| Accrued commissions | 4,951 | 6,322 | |||||||||
| Accrued liabilities | 4,495 | 4,738 | |||||||||
| Bank overdraft | 2,233 | 3,310 | |||||||||
| Total current liabilities | 13,296 | 16,240 | |||||||||
| Junior subordinated debentures | 87,629 | 87,629 | |||||||||
| Line of credit | 46,500 | 48,500 | |||||||||
| Series B junior subordinated debentures | 10,466 | 10,582 | |||||||||
| Contingent consideration liability | 2,225 | 2,142 | |||||||||
| Long-term portion of deferred rent | 31 | 32 | |||||||||
| Total liabilities | 160,147 | 165,125 | |||||||||
| 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 28, 2014 and September 27, 2015 |
- | - | |||||||||
|
Common stock, $0.01 par value. Authorized 10,000,000 shares, issued 4,904,522, outstanding 3,310,416 and 3,316,916 at December 28, 2014 and September 27, 2015, respectively |
50 | 50 | |||||||||
|
Additional paid-in capital |
24,416 | 24,538 | |||||||||
| Accumulated deficit | (65,171 | ) | (69,156 | ) | |||||||
|
Treasury stock, at cost, 1,587,606 shares at December 28, 2014 and September 27, 2015 |
(32,562 | ) | (32,562 | ) | |||||||
| Accumulated other comprehensive income | (9 | ) | (343 | ) | |||||||
| Total stockholders’ deficit of Glacier Water Services, Inc. | (73,276 | ) | (77,473 | ) | |||||||
| Noncontrolling interest | 27,868 | 27,610 | |||||||||
| Total stockholders’ deficit | (45,408 | ) | (49,863 | ) | |||||||
| Total liabilities and stockholders’ deficit | $ | 114,739 | 115,262 | ||||||||