Arctic Glacier Posts 23% First Quarter Sales Gain.WINNIPEG Winnipeg, city, Canada Winnipeg (wĭn`ĭpĕg), city (1991 pop. 616,790), provincial capital, SE Man., Canada, at the confluence of the Red and Assiniboine rivers. , Manitoba Manitoba (mănĭtō`bə), province (2001 pop. 1,119,583), 250,934 sq mi (650,930 sq km), including 39,215 sq mi (101,580 sq km) of water surface, W central Canada. -- Acquisitions spur Q1 revenue increase to record high The Arctic Glacier Arctic Glacier is a manufacturer of packaged ice in Winnipeg, Manitoba, Canada. The company was founded in 1996 and has rapidly grown to become the largest producer of ice for the Canadian market and one of the largest for the American market. Income Fund (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :AG) today announced results for the three months ended March 31, 2005. Highlights: - Increased sales to a record $13.8 million, up $2.6 million or 23% compared to first quarter of 2004 - Declared distributions totaling $6.3 million ($0.2701 per unit) compared to $6.2 million ($0.2676 per unit) for first quarter of 2004 - Increased annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. distribution rate to $1.10 per unit from $1.07 per unit effective March 2005 - Continued operational focus of rationalizing and integrating acquired operations; during the first quarter closed two production facilities and converted and expanded one distribution center into a production facility "The strategic and prudent implementation of Arctic Arctic area of constant cold. [Geography: WB, A:600] See : Coldness (language, music) Arctic - A real-time functional language, used for music synthesis. ["Arctic: A Functional Language for Real-Time Control", R.B. Glacier's growth strategy during 2004 drove our top line to a new record for the first quarter," said Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. Nagy Nagy is the most popular Hungarian surname, pronounced /nɒɟ/ or roughly like 'nawdge'. It may refer, among others, to the following people:
A business that engages in transactions with outsiders. . "In addition, the deployment of capital from equity offerings in 2003 toward major acquisitions completed late in 2004 ensures accretive improvement of distributable cash in 2005. It also enables the Fund to provide unitholders with cash distributions at the higher annualized rate of $1.10 per unit." Acquisitions of packaged-ice producers in the U.S. in 2004 formed the main driver behind a 23% sales gain over the first quarter of 2004. Revenues were significantly enhanced by the acquisitions of the Losquadro Ice Group in Arctic Glacier's key New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. market and the Party Time Ice group of companies, which for Arctic Glacier commenced a new and strong market presence in Michigan Michigan (mĭsh`ĭgən), upper midwestern state of the United States. It consists of two peninsulas thrusting into the Great Lakes and has borders with Ohio and Indiana (S), Wisconsin (W), and the Canadian province of Ontario (N,E). , including the densely populated pop·u·late tr.v. pop·u·lat·ed, pop·u·lat·ing, pop·u·lates 1. To supply with inhabitants, as by colonization; people. 2. city of Detroit Detroit, city, United States Detroit (dĭtroit`), city (1990 pop. 1,027,974), seat of Wayne co., SE Mich., on the Detroit River and between lakes St. Clair and Erie; inc. as a city 1815. . "The Fund performed well during the quarter, and results were fully in line with expectations," said Keith Keith may refer to: People with the given name Keith:
Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. approximately 25 percent of annual fixed costs fixed costs, n.pl the costs that do not change to meet fluctuations in enrollment or in use of services (e.g., salaries, rent, business license fees, and depreciation). . As a result, Arctic Glacier's first quarter results will traditionally show lower sales compared to the summer season, negative EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become and a net loss, and the first quarter this year was consistent with this pattern." First Quarter Financial Review Sales in the first quarter of 2005 totaled $13.8 million, an increase of $2.6 million or 23% from the same period in 2004. Most of the gain was due to acquisitions completed during late 2004 in the New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of and Michigan markets, which contributed $2.9 million to sales during the first quarter. In addition, sales in previously serviced markets increased $0.2 million or 2% from the first quarter of 2004. These increases in sales were partially offset by the stronger Canadian dollar Noun 1. Canadian dollar - the basic unit of money in Canada; "the Canadian dollar has the image of loon on one side of the coin" loonie dollar - the basic monetary unit in many countries; equal to 100 cents , which reduced reported sales in previously serviced markets by $0.5 million. EBITDA during the quarter was negative $5.1 million, compared to negative $4.1 million in the same period last year, reflecting the increased scale of operations and the seasonal nature of the business. Negative EBITDA, excluding non-cash unit based compensation expense, totaled 35.1% of sales for the quarter, an improvement compared to 36.7% and 47.7% for the same periods in 2004 and 2003 respectively. This improvement is the result of improved fixed cost efficiency due to the increased scale of operations. Net loss for the quarter totaled $5.7 million or $0.24 per unit, compared to $3.1 million or $0.13 per unit for the same period in 2004. As Arctic Glacier's scale of operations continues to increase, losses that are typical of the first quarter can be expected to increase as well. The first quarter of 2005 ended with a distributable cash deficiency of $7.9 million or $0.34 per unit, compared to a deficiency of $5.4 million or $0.23 per unit for the same period in 2004. "Arctic Glacier will see a full year of contribution in 2005 from the Losquadro and Party Time acquisitions," said Mr. McMahon. "With the accretive nature of these acquisitions, full deployment of the equity proceeds from the October October: see month. 2003 equity offering and a return to more normal summer weather conditions, the Fund expects to generate sufficient cash in 2005 to exceed the current distribution rate." The Fund declared distributions to unitholders totaling $6.3 million or $0.2701 per unit during the quarter, compared to distributions of $6.2 million or $0.2676 during the same period of 2004. The Fund's current monthly distribution rate of $0.0917 per unit set in March 2005 equates to an annualized distribution rate of $1.10 per unit. Financial Position The Fund had total long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. at March 31, 2005 of $115.7 million, compared to $49.3 million at the same time last year, with the increase due to the acquisitions made in December 2004. Included in the March 31, 2005 figures is $13 million that is effectively bridge financing Bridge Financing A method of financing, used by companies before their IPO, to obtain necessary cash for the maintenance of operations. Notes: These funds are usually supplied by the investment bank underwriting the new issue. within current credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities . The Fund's net debt to trailing 12-month EBITDA ratio at March 31, 2005 was 3.2:1, or 2.8:1 excluding temporary bridge financing, as the Fund has temporarily funded a portion of the December 2004 acquisitions and growth capital expenditures out of working capital. These ratios reflect an increase to trailing EBITDA of $10.4 million to give effect to the contribution of acquisitions and foreign currency option gains. The net debt to trailing EBITDA ratio is expected to reduce to a level within the Fund's internal guideline guideline Medtalk A series of recommendations by a body of experts in a particular discipline. See Cancer screening guidelines, Cardiac profile guidelines, Gatekeeper guidelines, Harvard guidelines, Transfusion guidelines. of 2.25:1 during 2005. That should occur as working capital is replenished and as EBITDA increases with an expected return Expected Return The average of a probability distribution of possible returns, calculated by using the following formula: to more normal weather conditions during the summer. Strong Growth Outlook Strategic acquisitions in key markets completed during the past year will make significant contributions to the Fund in 2005 and beyond. The rationalization rationalization, in psychology: see defense mechanism. of acquisitions will proceed during 2005 and the first half of 2006. As this occurs, the Fund will remove costs and enhance productivity growth by improving production processes, distribution networks and administrative infrastructure. The Fund is well positioned in all the markets in which it operates. Recent acquisitions in the New York and Michigan markets represent key additions to the Fund's operating assets Operating Assets Another term for working capital. as these acquisitions will enhance operating synergies, raise market profile and enlarge TO ENLARGE. To extend; as, to enlarge a rule to plead, is to extend the time during which a defendant may plead. To enlarge, means also to set at liberty; as, the prisoner was enlarged on giving bail. the foundation for future expansion. The Fund will continue to examine accretive acquisition Accretive Acquisition An acquisition that will increase the acquiring company's EPS. Notes: As they are expected to increase the acquiring company's future earnings, these acquisitions tend to be favorable for the company's market price. opportunities that are strategic and where a significant regional presence can be achieved or enhanced. Arctic Glacier will discuss first quarter results for 2004 during a conference call with a live audio webcast for investors and analysts on Thursday, May 12 at 11 a.m. (EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT ). To access the simultaneous webcast, please visit Arctic Glacier's website at www.arcticglacierinc.com. Please note the webcast allows participants to listen only. Arctic Glacier Income Fund, through its operating company, Arctic Glacier Inc., is a leading producer, marketer and distributor of high-quality packaged ice in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. under the brand name of Arctic Glacier(R) Premium Ice. Arctic Glacier operates 24 production plants and 39 distribution facilities across Canada Across Canada was an afternoon program that formerly aired on The Weather Network. The segment ran from early 1999 until mid 2002. The show ran from 3:00PM ET until 7:00 PM ET. and the central, midwest and northeastern United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. servicing more than 50,000 retail accounts. Arctic Glacier Income Fund trust units are listed on the Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. under the trading symbol Trading symbol See: Ticker symbol AG. There are 23.4 million trust units outstanding. This news release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , which are subject to certain risks, uncertainties and assumptions. A number of factors could cause actual results to differ materially from the results discussed in these forward-looking statements, and there is no assurance that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as at the date of this news release, and the Fund assumes no obligation to update or revise them, either publicly or otherwise, to reflect new events, information or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or . EBITDA and distributable cash are not recognized measures under Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ). EBITDA is defined as earnings before interest, taxes, amortization, non-recurring expenses and acquisition integration charges that are one-time costs unique to each individual acquisition. EBITDA is a performance metric used by many investors to provide an indication of cash available for distribution from ongoing operations prior to debt service, capital expenditures and income taxes and is often used to compare companies and income trusts on the basis of ability to generate cash from ongoing operations. Distributable cash is a performance metric used by many investors to summarize sum·ma·rize intr. & tr.v. sum·ma·rized, sum·ma·riz·ing, sum·ma·riz·es To make a summary or make a summary of. sum the funds available for distribution to unitholders in an income trust. Investors should be cautioned that EBITDA and distributable cash should not be construed as alternatives to net income, cash from operations or other financial measures determined in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with GAAP as indicators of the Fund's performance. The Fund's method of calculating EBITDA and distributable cash may differ from other companies and income trusts and, accordingly, may not be comparable to measures used by them.
ARCTIC GLACIER INCOME FUND
Interim Consolidated Balance Sheets
As at March 31, 2005 and 2004 (unaudited)
and December 31, 2004 (audited)
March 31, March 31, December 31,
(thousands) 2005 2004 2004
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ASSETS
Current assets
Cash $ - $ 4,132 $ 14,755
Accounts receivable 4,983 4,441 7,845
Inventories 7,454 4,873 5,961
Prepaid expenses 4,538 3,671 2,180
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16,975 17,117 30,741
Property, plant and equipment 122,023 92,389 120,717
Other assets 3,645 3,419 3,739
Intangibles 25,249 2,699 25,695
Goodwill 106,703 103,995 106,150
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$ 274,595 $ 219,619 $ 287,042
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LIABILITIES AND UNITHOLDERS' EQUITY
Current liabilities
Bank indebtedness $ 3,378 $ - $ -
Accounts payable and accrued
liabilities 10,266 8,264 12,325
Distributions payable to
unitholders 2,143 2,078 2,083
Current obligations under
capital leases 26 360 38
Principal due within one year
on long-term debt 513 206 514
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16,326 10,908 14,960
Obligations under capital leases - 25 -
Long-term debt 115,121 48,684 112,252
Future income taxes 4,599 1,309 10,426
Unitholders' equity
Capital contributions 201,938 201,076 201,721
Contributed surplus 568 - 334
Cumulative earnings 16,620 4,972 22,327
Cumulative distributions (63,772) (38,737) (57,462)
Cumulative translation adjustment (16,805) (8,618) (17,516)
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138,549 158,693 149,404
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$ 274,595 $ 219,619 $ 287,042
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ARCTIC GLACIER INCOME FUND
Interim Consolidated Statements of Operations
Three months ended March 31, 2005 and 2004 (unaudited)
(thousands, except per unit amounts) 2005 2004
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Sales $ 13,809 $ 11,222
Cost of sales, selling, general and
administration expenses 18,898 15,345
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Loss before the undernoted (5,089) (4,123)
Amortization 4,453 2,863
Interest 1,462 313
Acquisition integration charges 292 103
Gain on disposal of property, plant and
equipment (20) (102)
Loss on foreign exchange options 130 -
Non-recurring expenses - 7
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Loss before income taxes (11,406) (7,307)
Income tax expense
Current 211 218
Future (reduction) (5,910) (4,471)
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(5,699) (4,253)
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Loss for the period $ (5,707)$ (3,054)
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Loss per unit - basic and diluted $ (0.24)$ (0.13)
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ARCTIC GLACIER INCOME FUND
Interim Consolidated Statements of Cumulative Earnings
Three months ended March 31, 2005 and 2004 (unaudited)
(thousands) 2005 2004
---------------------------------------------------------------------
Cumulative earnings, beginning of period $ 22,327 $ 8,026
Loss for the period (5,707) (3,054)
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Cumulative earnings, end of period $ 16,620 $ 4,972
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ARCTIC GLACIER INCOME FUND
Interim Consolidated Statements of Cash Flows
Three months ended March 31, 2005 and 2004 (unaudited)
(thousands) 2005 2004
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Cash from (used in):
Operating activities
Loss for the period $ (5,707)$ (3,054)
Adjustments for:
Amortization 4,453 2,863
Gain on disposal of property, plant and
equipment (20) (102)
Unit-based compensation expense 234 -
Unrealized loss on foreign exchange options 130 -
Future income tax reduction (5,910) (4,471)
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Funds used in operations (6,820) (4,764)
Changes in working capital items (3,176) (735)
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(9,996) (5,499)
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Investing activities
Additions to property, plant and equipment (4,411) (3,251)
Proceeds from disposal of property, plant
and equipment 112 232
Additions to other assets (208) (15)
Additions to goodwill - (11)
Acquisition of business operations - (9,515)
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(4,507) (12,560)
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Financing activities
Proceeds from long-term debt 2,318 17,243
Principal repayments on long-term debt (134) (56)
Principal payments under capital lease
obligations (12) (79)
Units issued 217 171
Cash distributions paid (6,250) (6,230)
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(3,861) 11,049
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Foreign exchange gain on cash held in foreign
currency 231 110
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Decrease in cash (18,133) (6,900)
Cash, beginning of period 14,755 11,032
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Cash (bank indebtedness), end of period $ (3,378)$ 4,132
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Supplementary cash flow information
Interest paid $ 875 $ 294
Income taxes paid 211 218
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ARCTIC GLACIER INCOME FUND
Interim Schedule of Distributable Cash
Three months ended March 31, 2005 and 2004 (unaudited)
(thousands, except per unit amounts) 2005 2004
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Cash used in operating activities $ (9,996)$ (5,499)
Adjustments:
Changes in working capital items 3,176 735
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(6,820) (4,764)
Less sustaining capital expenditures, net of
dispositions (1,053) (651)
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Distributable cash deficiency $ (7,873)$ (5,415)
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Weighted average number of units 23,359.7 23,283.7
Distributable cash deficiency per unit $ (0.34)$ (0.23)
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Distributions declared $ 6,310 $ 6,232
Distributions declared per unit $ 0.27 $ 0.27
Distributions declared per unit (annualized) $ 1.08 $ 1.07
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Arctic Glacier Income Fund (TSX:AG) |
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