Glacier Water Services, Inc. (Pink Sheets: GWSV) announced results for the quarter ended July 1, 2007.
Brian McInerney, Chief Executive Officer of Glacier Water, said, "Total revenues for the second quarter and the six-month period were up 1.2% and 3.5%, respectively, versus the same periods last year. Same store revenue growth for the six-month period was 8.4%. Revenue growth during the second quarter was moderated by the sustained wet weather in the Southwest, particularly in Texas, record heat during the same period last year and the impact of approximately 170 Albertson's store closures. Income from operations for the second quarter was $1,172,000 and was impacted by higher operating costs, particularly fuel, healthcare premiums and increased machine refurbishing costs to support new location growth."
Revenues for the quarter ended July 1, 2007 increased 1.2% to $22,870,000 compared to $22,594,000 for the same quarter a year ago. For the six-month period ended July 1, 2007, revenues increased 3.5% to $43,508,000 compared to $42,042,000 for the same period a year ago. The increase in revenues for both the quarter and the six-month period was primarily the result of higher volume per machine plus the impact of additional locations this year compared to the same periods last year.
The Company's income from operations for the quarter ended July 1, 2007 was $1,172,000 compared to $1,658,000 for the same period last year. For the six-month period ended July 1, 2007, income from operations was $1,299,000 compared to $1,646,000 for the same period last year. Income from operations in both the three- and six-month periods was negatively impacted by higher operating costs including fuel, healthcare premiums and machine refurbishing costs as compared to last year. Also included in income from operations was $72,000 and $130,000 of additional non-cash stock compensation expense for the quarter and the six-month periods, respectively.
The Company's net loss applicable to common stockholders for the quarter ended July 1, 2007, was $1,102,000, or $0.42 per basic and diluted share, compared to a loss of $700,000, or $0.29 per basic and diluted share, for the same period last year. For the six-month period ended July 1, 2007, the net loss applicable to common stockholders was $3,273,000, or $1.25 per basic and diluted share, compared to a loss of $3,102,000, or $1.32 per basic and diluted share, for the same period last year.
With approximately 16,100 machines located in 41 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 31, 2006 are available on the Company's website, www.glacierwater.com, or can be obtained by contacting W. David Walters at 760-560-1111.
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GLACIER WATER SERVICES, INC. | |||||||||||||||||||||
Summary Financial Information | |||||||||||||||||||||
| Consolidated Statements of Operations | |||||||||||||||||||||
| (In thousands, except share and per share data) | |||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||
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| Three Months Ended | Six Months Ended | ||||||||||||||||||||
| July 1, | July 2, | July 1, | July 2, | ||||||||||||||||||
| 2007 | Â | 2006 | Â | 2007 | Â | 2006 | Â | ||||||||||||||
| Revenues | $ | 22,870 | $ | 22,594 | $ | 43,508 | $ | 42,042 | |||||||||||||
| Operating costs and expenses: | |||||||||||||||||||||
| Operating expenses | 14,419 | 13,852 | 27,610 | 26,132 | |||||||||||||||||
| Depreciation and amortization | 3,954 | Â | 3,937 | Â | 7,874 | Â | 7,920 | Â | |||||||||||||
| Cost of goods sold | 18,373 | 17,789 | 35,484 | 34,052 | |||||||||||||||||
| Selling, general, and administrative expenses | 3,325 | Â | 3,147 | Â | 6,725 | Â | 6,344 | Â | |||||||||||||
| Total operating costs and expenses | 21,698 | Â | 20,936 | Â | 42,209 | Â | 40,396 | Â | |||||||||||||
| Income from operations | 1,172 | 1,658 | 1,299 | 1,646 | |||||||||||||||||
| Interest expense | 2,274 | Â | 2,358 | Â | 4,572 | Â | 4,748 | Â | |||||||||||||
| Loss before income taxes | (1,102 | ) | (700 | ) | (3,273 | ) | (3,102 | ) | |||||||||||||
| Income tax benefit | - | Â | - | Â | - | Â | - | Â | |||||||||||||
| Net loss applicable to common stockholders | $ | (1,102 | ) | $ | (700 | ) | $ | (3,273 | ) | $ | (3,102 | ) | |||||||||
| Basic and diluted loss per share: | |||||||||||||||||||||
| Net loss applicable to common stockholders | $ | (0.42 | ) | $ | (0.29 | ) | $ | (1.25 | ) | $ | (1.32 | ) | |||||||||
| Weighted average shares used in calculation | 2,620,707 | 2,376,534 | 2,610,123 | 2,351,584 | |||||||||||||||||
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GLACIER WATER SERVICES, INC. | ||||||||||
| Consolidated Balance Sheets | ||||||||||
| (In thousands, except share data) | ||||||||||
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| July 1, | December 31, | |||||||||
| Assets | 2007 | Â | 2006(a) | |||||||
| (Unaudited) | ||||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 2,274 | $ | 3,841 | ||||||
Accounts receivable, net of allowance for doubtful accounts of $100 and $96 as of July 1, 2007 and December 31, 2006, respectively | ||||||||||
| 1,822 | 2,119 | |||||||||
| Repair parts | 2,246 | 2,180 | ||||||||
| Prepaid expenses and other | 1,399 | Â | 1,099 | Â | ||||||
| Total current assets | 7,741 | 9,239 | ||||||||
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| Property and equipment, net | 51,134 | 54,459 | ||||||||
| Goodwill | 7,099 | 7,080 | ||||||||
Intangible assets, net of accumulated amortization of $1,252 and $1,178 as of July 1, 2007 and December 31, 2006, respectively | ||||||||||
| 112 | 151 | |||||||||
| Investment in Glacier Water Trust I Common Securities | 2,629 | 2,629 | ||||||||
| Investment in Glacier Water Trust I Preferred Securities | 3,357 | 3,357 | ||||||||
| Other assets | 5,206 | Â | 5,213 | Â | ||||||
| Total assets | $ | 77,278 | Â | $ | 82,128 | Â | ||||
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| Liabilities and Stockholders' Deficit | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable | $ | 1,279 | $ | 1,016 | ||||||
| Accrued commissions | 2,968 | 2,353 | ||||||||
| Accrued liabilities | 3,549 | 4,237 | ||||||||
| Bank overdraft | - | 1,750 | ||||||||
| Current portion of long-term notes payable | 73 | 112 | ||||||||
| Current portion of deferred rent | 56 | 52 | ||||||||
| Current portion of obligations under capital lease | - | Â | 404 | Â | ||||||
| Total current liabilities | 7,925 | 9,924 | ||||||||
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| Long-term debt | 87,629 | 87,629 | ||||||||
| Long-term notes payable | 20,954 | 19,599 | ||||||||
| Long-term portion of deferred rent | 88 | Â | 111 | Â | ||||||
| Total liabilities | 116,596 | Â | 117,263 | Â | ||||||
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| Commitments and contingencies | ||||||||||
| Stockholders' deficit: | ||||||||||
| Common stock, $0.01 par value. Authorized 10,000,000 shares, issued and outstanding 2,664,195 and 2,590,405 shares at July 1, 2007 and December 31, 2006, respectively | ||||||||||
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| 44 | 43 | |||||||||
| Additional paid-in capital | 21,239 | 22,379 | ||||||||
| Retained deficit | (28,272 | ) | (24,999 | ) | ||||||
| Treasury stock, at cost, 1,587,606 shares at July 1, 2007 and December 31, 2006 | (32,562 | ) | (32,562 | ) | ||||||
| Accumulated other comprehensive income | 233 | Â | 4 | Â | ||||||
| Total stockholders' deficit | (39,318 | ) | (35,135 | ) | ||||||
| Total liabilities and stockholders' deficit | $ | 77,278 | Â | $ | 82,128 | Â | ||||
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(a) Amounts derived from audited information | ||||||||||
