Glacier Water Announces Fiscal Year 2014 Results

Record Revenues of $133 Million

VISTA, Calif.--()--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

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

Release Summary

Glacier Fiscal Year 2014 Financial Results

Glacier Water Services, Inc.