Glacier Water Announces Fiscal Year 2015 Results

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

Glacier Water Services, Inc. (OTC Pink: GWSV) announced results for the fiscal year ended January 3, 2016.

Brian McInerney, Chief Executive Officer of Glacier Water, said, "Our 2015 revenues were $138,328,000, increasing 4.1% over the prior year, with same-store revenues increasing 3.2%. We continued to optimize our network of water machines across the U.S. and Canada and focus on growth in the in-store ice bagging segment of our business. The Company's 2015 operating income grew 32.6% to $7,235,000, while adjusted earnings before interest, taxes, and depreciation and amortization (EBITDA) increased 5.8% to $24,183,000. At the end of our fiscal year 2015, we operated approximately 23,000 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 January 3, 2016 increased to $138,328,000 from $132,921,000, representing a 4.1% increase versus fiscal year 2014. Sales growth was driven by an increase in the number of ice placements, same-store sales growth of 3.2% resulting from a combination of growth in machine productivity and a 53^rd week of sales in the fiscal year 2015 versus 52 weeks in the fiscal year 2014 – estimated at $2 million in additional revenue, offset slightly by store closures resulting from retail consolidation.

The Company's income from operations for the year ended January 3, 2016 increased 32.6% to $7,235,000 compared to $5,458,000 for the prior year. The increase in income from operations was driven by the margin generated from growth in revenues, lower fuel costs, and lower depreciation and amortization of $329,000, offset slightly by higher machine service and maintenance costs.

The Company's net loss applicable to common stockholders for the year ended January 3, 2016 was $6,244,000 or $1.88 per basic and diluted share, compared to a net loss of $7,129,000, or $2.15 per basic and diluted share for the prior year. The net loss for fiscal 2015 included a non-recurring charge to other expense in the second quarter of $518,000 adjusting contingent consideration liability for a 2012 Company acquisition. Excluding the non-recurring charge, the net loss applicable to common stockholders for fiscal 2015 was $5,726,000 or $1.73 per basic and diluted share. Net loss attributable to non-controlling interests for fiscal 2015 was $403,000 compared to a net loss of $462,000 for the prior year.

With approximately 23,000 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 January 3, 2016 can be obtained by contacting Steve Stringer at steve.stringer@glacierwater.com.

FINANCIAL RESULTS							GLACIER WATER SERVICES, INC.
GLACIER WATER SERVICES, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
Years ended December 28, 2014 and January 3, 2016
(In thousands, except share and per share data)
									2014				2015
Revenues								$	132,921				138,328
Cost of revenues:
	Operating expenses								91,427				95,331
	Depreciation and amortization								17,207				16,878
		Total cost of revenues							108,634				112,209
		Gross profit							24,287				26,119
	Selling, general, and administrative expenses								18,829				18,884
		Income from operations							5,458				7,235
Other expenses:
	Other expense								1,859				2,371
	Interest expense								10,790				11,191
		Total other expense							12,649				13,562
		Loss before income taxes							(7,191	)			(6,327	)
Income taxes expense									400				320
		Net loss						$	(7,591	)			(6,647	)
Net loss attributable to noncontrolling interest									(462	)			(403	)
		Net loss attributable to Glacier Water Services, Inc.						$	(7,129	)			(6,244	)
Basic and diluted net loss per share								$	(2.15	)			(1.88	)
Weighted average shares used in calculation									3,310,416				3,314,796
Pro-Forma, adjusted, EBITDA reconciliation
Years ended December 28, 2014 and January 3, 2016
(In thousands)
									2014				2015
Income from operations								$	5,458				7,235
	EBITDA adjustments
		Addback of depreciation and amortization							17,207				16,878
		Non-cash stock compensation expense							189				70
			Adjusted EBITDA					$	22,854				24,183

FINANCIAL RESULTS							GLACIER WATER SERVICES, INC.
GLACIER WATER SERVICES, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
December 28, 2014 and January 3, 2016
(In thousands, except share data)
Assets									2014			2015
Current assets:
	Cash							$	4,519			5,340
	Accounts receivable, net of allowance for doubtful accounts of $62 and $63 as of December 28, 2014 and January 3, 2016, respectively								2,844			2,995
	Repair parts								5,046			5,371
	Prepaid expenses and other current assets								1,347			2,111
					Total current assets				13,756			15,817
Property and equipment, net									66,552			63,490
Goodwill									18,747			18,747
Intangible assets, net									4,573			3,851
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			3,699
Other assets									973			743
					Total assets			$	114,739			112,624
Liabilities and Stockholders' Deficit
Current liabilities:
	Accounts payable							$	1,617			1,663
	Accrued commissions								4,951			5,703
	Accrued liabilities								3,964			4,465
	Bank overdraft								2,233			1,984
					Total current liabilities				12,765			13,815
Junior subordinated debentures									87,629			87,629
Line of credit									46,500			50,000
Series B Junior subordinated debentures									10,466			10,624
Contingent consideration liability									2,225			2,022
Deferred tax liability									531			838
Long-term portion of deferred rent									31			44
					Total liabilities				160,147			164,972
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 January 3, 2016								-			-
	Common stock, $0.01 par value. Authorized, 10,000,000 shares; issued 4,904,522, outstanding 3,310,416 and 3,316,916 shares at December 28, 2014 and January 3, 2016								50			50
	Additional paid-in capital								24,416			24,538
	Accumulated deficit								(65,171	)		(71,415	)
	Treasury stock, at cost, 1,587,606 shares at December 28, 2014 and January 3, 2016								(32,562	)		(32,562	)
	Accumulated other comprehensive loss								(9	)		(424	)
					Total stockholders' deficit of Glacier Water Services, Inc.				(73,276	)		(79,813	)
	Noncontrolling interest								27,868			27,465
					Total stockholders' deficit				(45,408	)		(52,348	)
					Total liabilities and stockholders' deficit			$	114,739			112,624

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