Glacier Water Announces First Quarter Fiscal Year 2015 Results

VISTA, Calif.--(BUSINESS WIRE)--

Glacier Water Services, Inc. (OTC Pink: GWSV) announced results for the first quarter of fiscal year 2015, ended March 29, 2015.

Brian McInerney, Chief Executive Officer of Glacier Water, said, "Our first quarter revenues were $31,000,000, which represents an increase of $617,000 or 2.0% over the prior year. Same-store revenues increased 2.4%. Income from operations for the quarter grew from $83,000 to $289,000. The Company's first quarter adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were $4,539,000, which represents an increase of 2.4% over the same period last year. At the end of the first quarter, Glacier operated approximately 23,100 machines located at retailers across the U.S. and Canada, providing high quality, great tasting drinking water or premium ice."

Revenues for the first quarter ended March 29, 2015 increased 2.0% to $31,000,000 compared to $30,383,000 for the same period last year. Sales growth was driven primarily by the growth in same-store productivity and the sale of bagged ice through the Company's ice machine placements.

The Company's income from operations for the first quarter ended March 29, 2015 was $289,000 compared to income from operations of $83,000 for the same period last year. Income from operations for the first quarter of 2015 was positively impacted by the margin generated from growth in revenues, reduced fuel costs, reduced depreciation and amortization expense compared to the prior year and the continued positive leverage associated with the Company's SG&A spend.

The Company's net loss applicable to common stockholders for the first quarter ended March 29, 2015 was $2,849,000 or $0.86 per basic and diluted share, compared to a net loss of $2,988,000, or $0.90 per basic and diluted share for the same period last year. Net loss attributable to non-controlling interests for the first quarter was $184,000, compared to a net loss of $193,000 for the prior year.

With approximately 23,100 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
(In thousands, except share and per share data)
(unaudited)
								Three Months Ended
								March 30, 2014				March 29, 2015
Revenues							$	30,383				31,000
Cost of revenues:
	Operating expenses							21,169				21,666
	Depreciation and amortization							4,304				4,203
		Total cost of revenues						25,473				25,869
		Gross profit						4,910				5,131
	Selling, general, and administrative expenses							4,827				4,842
		Income from operations						83				289
Other expenses:
	Other expense							465				491
	Interest expense							2,699				2,736
		Total other expense						3,164				3,227
		Loss before income taxes						(3,081	)			(2,938	)
Income tax expense								100				95
		Net loss					$	(3,181	)			(3,033	)
Net loss attributable to noncontrolling interest								(193	)			(184	)
		Net loss attributable to Glacier Water Services, Inc.					$	(2,988	)			(2,849	)
Basic and diluted net loss per share							$	(0.90	)			(0.86	)
Weighted average shares used in calculation								3,310,416				3,310,416
Pro-Forma, adjusted, EBITDA reconciliation
(In thousands)
(unaudited)
								Three Months Ended
								March 30, 2014				March 29, 2015
Income from operations							$	83				289
	EBITDA adjustments
		Addback of depreciation and amortization						4,304				4,203
		Non-cash stock compensation expense						47				47
			Adjusted EBITDA				$	4,434				4,539

GLACIER WATER SERVICES, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(In thousands, except share data)
(unaudited)
								December 28,			March 29,
Assets								2014			2015
Current assets:
	Cash and cash equivalents						$	4,519			4,903
	Accounts receivable, net of allowance for doubtful accounts of $62 and $61
		as of December 28, 2014 and March 29, 2015 respectively						2,844			2,680
	Repair parts							5,046			4,929
	Prepaid expenses and other current assets							1,347			2,499
					Total current assets			13,756			15,011
Property and equipment, net								66,552			65,375
Goodwill								18,747			18,747
Intangible assets, net								4,573			4,392
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			3,820
Other assets								973			818
					Total assets		$	114,739			114,440
Liabilities and Stockholders' Deficit
Current liabilities:
	Accounts payable						$	1,617			1,577
	Accrued commissions							4,951			5,337
	Accrued liabilities							4,495			5,025
	Bank overdraft							2,233			2,669
					Total current liabilities			13,296			14,608
Junior subordinated debentures								87,629			87,629
Line of credit								46,500			48,000
Series B junior subordinated debentures								10,466			10,505
Contingent consideration liability								2,225			2,257
Long-term portion of deferred rent								31			36
					Total liabilities			160,147			163,035
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 March 29, 2015						-			-
	Common stock, $0.01 par value. Authorized 10,000,000 shares; issued 4,898,022,
		outstanding 3,310,416 shares at December 28, 2014 and March 29, 2015						50			50
	Additional paid-in capital							24,416			24,463
	Accumulated deficit							(65,171	)		(68,020	)
	Treasury stock, at cost, 1,587,606 shares at December 28, 2014 and March 29, 2015							(32,562	)		(32,562	)
	Accumulated other comprehensive income							(9	)		(210	)
					Total stockholders' deficit of Glacier Water Services, Inc.			(73,276	)		(76,279	)
	Noncontrolling interest							27,868			27,684
					Total stockholders' deficit			(45,408	)		(48,595	)
					Total liabilities and stockholders' deficit		$	114,739			114,440