Glacier Water Services, Inc. (OTC Pink: GWSV) announced results for the fiscal year ended December 28, 2014.
Brian McInerney, Chief Executive Officer of Glacier Water, said, “Our 2014 revenues were $132,921,000, increasing 6.3% over the prior year, with same-store revenues increasing 5.5%. We continued to optimize our network of water machines across the U.S. and Canada and focused on growth in the in-store ice bagging segment of our business. The Company’s 2014 operating income grew to $5,458,000, while adjusted earnings before interest, taxes, and depreciation and amortization (EBITDA) increased 8.5% to $22,854,000. At the end of our fiscal year 2014, Glacier operated approximately 23,400 machines located at retailers across the U.S. and Canada, providing high quality, great tasting drinking water and premium ice.”
Revenues for the year ended December 28, 2014 increased to $132,921,000 from $124,995,000, representing a 6.3% increase versus fiscal year 2013. Sales growth was driven by strong growth in water vending same-store productivity and revenue from new ice machine placements during the year.
The Company’s income from operations for the year ended December 28, 2014 was $5,458,000 compared to $2,814,000 for the prior year. Income from operations for 2014 was positively impacted by the margin generated from growth in revenues, offset in part by increased operating costs year-over-year to support the machine population, in particular, labor and benefits, fuel and fleet expense and maintenance and repair costs.
The Company’s net loss applicable to common stockholders for the year ended December 28, 2014 was $7,129,000 or $2.15 per basic and diluted share, compared to a net loss of $9,399,000, or $2.84 per basic and diluted share for the prior year. Net loss attributable to non-controlling interests for the year was $462,000, which interests relate to the conversion of the Company’s U.S. operating subsidiary, GW Services Inc., from a corporation to a limited liability company in 2012.
With approximately 23,400 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.
| GLACIER WATER SERVICES, INC. AND SUBSIDIARIES | |||||||||||||
| Consolidated Statements of Operations | |||||||||||||
| Years ended December 29, 2013 and December 28, 2014 | |||||||||||||
| (In thousands, except share and per share data) | |||||||||||||
| 2013 | 2014 | ||||||||||||
| Revenues | $ | 124,995 | 132,921 | ||||||||||
| Cost of revenues: | |||||||||||||
| Operating expenses | 85,848 | 91,427 | |||||||||||
| Depreciation and amortization | 18,064 | 17,207 | |||||||||||
| Total cost of revenues | 103,912 | 108,634 | |||||||||||
| Gross profit | 21,083 | 24,287 | |||||||||||
| Selling, general, and administrative expenses | 18,269 | 18,829 | |||||||||||
| Income from operations | 2,814 | 5,458 | |||||||||||
| Other expenses: | |||||||||||||
| Other expense | 1,490 | 1,859 | |||||||||||
| Interest expense | 10,718 | 10,790 | |||||||||||
| Total other expense | 12,208 | 12,649 | |||||||||||
| Loss before income taxes | (9,394 | ) | (7,191 | ) | |||||||||
| Income taxes expense | 398 | 400 | |||||||||||
| Net loss | $ | (9,792 | ) | (7,591 | ) | ||||||||
| Net loss attributable to noncontrolling interest | (393 | ) | (462 | ) | |||||||||
| Net loss attributable to Glacier Water Services, Inc. | $ | (9,399 | ) | (7,129 | ) | ||||||||
| Basic and diluted net loss per share | $ | (2.84 | ) | (2.15 | ) | ||||||||
| Weighted average shares used in calculation | 3,310,200 | 3,310,416 | |||||||||||
| Pro-Forma, adjusted, EBITDA reconciliation | |||||||||||||
| Years ended December 29, 2013 and December 28, 2014 | |||||||||||||
| (In thousands) | |||||||||||||
| 2013 | 2014 | ||||||||||||
| Income from operations | $ | 2,814 | 5,458 | ||||||||||
| EBITDA adjustments | |||||||||||||
| Addback of depreciation and amortization | 18,064 | 17,207 | |||||||||||
| Non-cash stock compensation expense | 189 | 189 | |||||||||||
| Adjusted EBITDA | $ | 21,067 | 22,854 | ||||||||||
| GLACIER WATER SERVICES, INC. AND SUBSIDIARIES | |||||||||||||
| Consolidated Balance Sheets | |||||||||||||
| December 29, 2013 and December 28, 2014 | |||||||||||||
| (In thousands, except share data) | |||||||||||||
| Assets | 2013 | 2014 | |||||||||||
| Current assets: | |||||||||||||
| Cash and cash equivalents | $ | 4,264 | 4,519 | ||||||||||
Accounts receivable, net of allowance for doubtful accounts of $62 as of December 29, 2013 and December 28, 2014 | 2,617 | 2,844 | |||||||||||
| Repair parts | 4,344 | 5,046 | |||||||||||
| Prepaid expenses and other current assets | 1,808 | 1,347 | |||||||||||
| Total current assets | 13,033 | 13,756 | |||||||||||
| Property and equipment, net | 69,852 | 66,552 | |||||||||||
| Goodwill | 18,747 | 18,747 | |||||||||||
| Intangible assets, net | 5,474 | 4,573 | |||||||||||
| 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 | 4,008 | 3,861 | |||||||||||
| Other assets | 1,046 | 973 | |||||||||||
| Total assets | $ | 118,437 | 114,739 | ||||||||||
| Liabilities and Stockholders’ Deficit | |||||||||||||
| Current liabilities: | |||||||||||||
| Accounts payable | $ | 1,608 | 1,617 | ||||||||||
| Accrued commissions | 4,726 | 4,951 | |||||||||||
| Accrued liabilities | 3,854 | 4,495 | |||||||||||
| Bank overdraft | 2,297 | 2,233 | |||||||||||
| Total current liabilities | 12,485 | 13,296 | |||||||||||
| Junior subordinated debentures | 87,629 | 87,629 | |||||||||||
| Line of credit | 43,500 | 46,500 | |||||||||||
| Series B junior subordinated debentures | 10,311 | 10,466 | |||||||||||
| Contingent consideration liability | 2,202 | 2,225 | |||||||||||
| Long-term portion of deferred rent | 91 | 31 | |||||||||||
| Total liabilities | 156,218 | 160,147 | |||||||||||
| 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 29, 2013 and December 28, 2014 | - | - | |||||||||||
Common stock, $0.01 par value. Authorized 10,000,000 shares; issued 4,898,022, outstanding 3,310,416 shares at December 29, 2013 and December 28, 2014 | 50 | 50 | |||||||||||
| Additional paid-in capital | 24,227 | 24,416 | |||||||||||
| Accumulated deficit | (58,042 | ) | (65,171 | ) | |||||||||
| Treasury stock, at cost, 1,587,606 shares at December 29, 2013 and December 28, 2014 | (32,562 | ) | (32,562 | ) | |||||||||
| Accumulated other comprehensive income | 216 | (9 | ) | ||||||||||
| Total stockholders’ deficit of Glacier Water Services, Inc. | (66,111 | ) | (73,276 | ) | |||||||||
| Noncontrolling interest | 28,330 | 27,868 | |||||||||||
| Total stockholders’ deficit | (37,781 | ) | (45,408 | ) | |||||||||
| Total liabilities and stockholders’ deficit | $ | 118,437 | 114,739 | ||||||||||
Contacts:
Steve Stringer, Chief Financial Officer
(760)
560-1111
