VISTA, Calif.--(BUSINESS WIRE)--Glacier Water Services, Inc. (Pink Sheets:GWSV) announced results for the third quarter of the fiscal year 2013, ended September 29, 2013.
Brian McInerney, Chief Executive Officer of Glacier Water, said, “Our third quarter revenues were $35,458,000 increasing 13.2% versus the comparable period last year, with year-to-date revenues increasing 13.9%. Same-store revenues increased approximately 1% year-to-date. We are operating 2,100 more machines as compared to one year ago. The third quarter earnings before interest, taxes, depreciation and amortization (EBITDA) was $6,834,000, an increase of 10.3% or $637,000 over the same period last year. On a year-to-date basis EBITDA increased 16.4% or $2,312,000 to $16,405,000. At the end of the third quarter, Glacier operated approximately 23,700 machines located at retailers across the U.S. and Canada, providing high quality, great tasting drinking water and premium ice.”
Revenues for the third quarter ended September 29, 2013 increased 13.2% to $35,458,000 compared to $31,330,000 for the same period last year. For the nine-month period ended September 29, 2013, revenues increased 13.9% to $96,032,000 compared to $84,295,000 for the same period last year. Sales growth was driven primarily by the increase in the number of water vending machines on location resulting from the Aqua Fill asset acquisition completed in 2012, other new water vending and ice machine placements and from positive growth in same-store productivity.
The Company’s income from operations for the third quarter ended September 29, 2013 was $2,735,000 compared to $2,781,000 for the same period last year. For the nine-month period ended September 29, 2013, income from operations was $4,273,000 compared to $4,266,000 for the same period last year. The operating income on both a quarter and year-to-date basis was driven by the increased margin generated from growth in revenues, offset by increased depreciation and amortization of $683,000 and $2,305,000 respectively, associated primarily with the Aqua Fill asset acquisition in 2012, and by increased operating costs to support the increased machine population, in particular, labor and benefits, maintenance and repair costs.
The Company’s net loss applicable to common stockholders for the quarter ended September 29, 2013 was $358,000 or $0.11 per basic and diluted share, compared to a net income of $195,000, or $0.06 per basic and diluted share for the same period last year. For the nine-month period ended September 29, 2013, the net loss applicable to common stockholders was $4,708,000 or $1.42 per basic and diluted share, compared to a net loss of $3,404,000 or $1.04 per basic and diluted share, for the same period last year. Net loss attributable to the non-controlling interests for the third quarter and nine-month period ended September 29, 2013 was $16,000 and $188,000, respectively.
With approximately 23,700 water and ice vending machines located in 47 states throughout the United States and Canada, Glacier Water is the leading provider of both high-quality, low-priced drinking water dispensed to consumers through self-service bottled water machines, and state-of-the-art ice bagging 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 30, 2012 can be obtained by contacting Steve Stringer, Chief Financial Officer, at (760) 560-1111.
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FINANCIAL RESULTS |
GLACIER WATER SERVICES, INC. |
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| 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 30, | September 29, | September 30, | September 29, | ||||||||
| 2012 | 2013 | 2012 | 2013 | ||||||||
| Revenues | $ | 31,330 | 35,458 | 84,295 | 96,032 | ||||||
| Cost of revenues: | |||||||||||
| Operating expenses | 20,610 | 24,063 | 56,542 | 65,934 | |||||||
| Depreciation and amortization | 3,416 | 4,099 | 9,827 | 12,132 | |||||||
| Total cost of revenues | 24,026 | 28,162 | 66,369 | 78,066 | |||||||
| Gross profit | 7,304 | 7,296 | 17,926 | 17,966 | |||||||
| Selling, general, and administrative expenses | 4,523 | 4,561 | 13,660 | 13,693 | |||||||
| Income from operations | 2,781 | 2,735 | 4,266 | 4,273 | |||||||
| Other expenses: | |||||||||||
| Other expense | - | 393 | - | 987 | |||||||
| Interest expense | 2,574 | 2,703 | 7,637 | 8,143 | |||||||
| Total other expense | 2,574 | 3,096 | 7,637 | 9,130 | |||||||
| Income (loss) before income taxes | 207 | (361 | ) | (3,371 | ) | (4,857 | ) | ||||
| Income taxes expense | 12 | 13 | 33 | 39 | |||||||
| Net income (loss) | $ | 195 | (374 | ) | (3,404 | ) | (4,896 | ) | |||
| Net income (loss) attributable to noncontrolling interest | - | (16 | ) | - | (188 | ) | |||||
| Net income (loss) attributable to Glacier Water Services, Inc. | $ | 195 | (358 | ) | (3,404 | ) | (4,708 | ) | |||
| Basic and diluted net income (loss) per share | |||||||||||
| Basic net income (loss) per share | $ | 0.06 | (0.11 | ) | (1.04 | ) | (1.42 | ) | |||
| Weighted average shares used in calculation | 3,276,482 | 3,310,286 | 3,276,286 | 3,310,128 | |||||||
| Diluted net income (loss) per share | $ | 0.06 | (0.11 | ) | (1.04 | ) | (1.42 | ) | |||
| Weighted average shares used in calculation | 3,340,463 | 3,310,286 | 3,276,286 | 3,310,128 | |||||||
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FINANCIAL RESULTS |
GLACIER WATER SERVICES, INC. |
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| GLACIER WATER SERVICES, INC. AND SUBSIDIARIES | ||||||
| Consolidated Balance Sheets | ||||||
| (In thousands, except share data) | ||||||
| (unaudited) | ||||||
| December 30, | September 29, | |||||
| Assets | 2012 | 2013 | ||||
| Current assets: | ||||||
| Cash | $ | 5,229 | 5,662 | |||
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Accounts receivable, net of allowance for doubtful accounts of $65 as of December 30, 2012 and September 29, 2013 |
2,196 | 2,979 | ||||
| Repair parts | 5,142 | 4,178 | ||||
| Prepaid expenses and other current assets | 1,317 | 2,323 | ||||
| Total current assets | 13,884 | 15,142 | ||||
| Property and equipment, net | 67,963 | 71,421 | ||||
| Goodwill | 15,392 | 20,239 | ||||
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Intangible assets, net of accumulated amortization of $43 and $237 as of December 30, 2012 and September 29, 2013 |
2,537 | 2,343 | ||||
| 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 and note receivable, net | 1,884 | - | ||||
| Deferred financing costs, net | 4,143 | 4,042 | ||||
| Other assets | 1,131 | 931 | ||||
| Total assets | $ | 113,211 | 120,395 | |||
| Liabilities and Stockholders’ Deficit | ||||||
| Current liabilities: | ||||||
| Accounts payable | $ | 3,169 | 1,938 | |||
| Accrued commissions | 4,665 | 6,198 | ||||
| Accrued liabilities | 6,009 | 3,792 | ||||
| Bank overdraft | 2,214 | 2,277 | ||||
| Total current liabilities | 16,057 | 14,205 | ||||
| Junior subordinated debentures | 87,629 | 87,629 | ||||
| Line of credit | 41,500 | 41,000 | ||||
| Series B junior subordinated debentures | 10,157 | 10,273 | ||||
| Long-term portion of deferred rent | 160 | 112 | ||||
| Total liabilities | 155,503 | 153,219 | ||||
| Commitments and contingencies | ||||||
| Stockholders’ deficit: | ||||||
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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 30, 2012 and September 29, 2013 |
- | - | ||||
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Common stock, $0.01 par value. Authorized 10,000,000 shares, issued and outstanding, 3,279,857 and 3,310,416 shares at December 30, 2012 and September 29, 2013, respectively |
50 | 50 | ||||
| Additional paid-in capital | 23,682 | 24,179 | ||||
| Accumulated deficit | (48,643 | ) | (53,350 | ) | ||
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Treasury stock, at cost, 1,587,606 shares at December 30, 2012 and September 29, 2013 |
(32,562 | ) | (32,562 | ) | ||
| Accumulated other comprehensive income | 418 | 324 | ||||
| Total stockholders’ deficit of Glacier Water Services, Inc. | (57,055 | ) | (61,359 | ) | ||
| Noncontrolling interest | 14,763 | 28,535 | ||||
| Total stockholders’ deficit | (42,292 | ) | (32,824 | ) | ||
| Total liabilities and stockholders’ deficit | $ | 113,211 | 120,395 | |||