Arctic Glacier Posts Record Third Quarter Results.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, return of favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. weather fuel 51% increase in distributable cash 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.UN) today announced results for the three months ended September September: see month. 30, 2005. Highlights: - Increased sales 45% to new high of $73.6 million - Increased 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 56% to record $31.6 million - Increased distributable cash 51% to record $28.6 million - Increased distributable cash per unit to $1.19 from $0.81 - Increased earnings 48% to record $17.1 million - Increased earnings per unit (basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. ) to $0.72 from $0.50 - Paid distributions to unitholders at 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. rate of $1.10 per unit - Completed offering of 4.45 million trust units for net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of $47.2 million - Acquired ice products division of Hometown home·town n. The town or city of one's birth, rearing, or main residence. Noun 1. hometown - the town (or city) where you grew up or where you have your principal residence; "he never went back to his hometown again" Inc. of Milwaukee, Wisconsin For other places with the same name, see Milwaukee (disambiguation). Milwaukee is the largest city within the state of Wisconsin and 25th largest (by population) in the United States. establishing Arctic Glacier as the market leader in Wisconsin Wisconsin, state, United States Wisconsin (wĭskŏn`sən, –sĭn), upper midwestern state of the United States. It is bounded by Lake Superior and the Upper Peninsula of Michigan, from which it is divided by the Menominee . "The Fund posted its best results ever during the third 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, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Arctic Glacier Inc., the Fund's operating company operating company A business that engages in transactions with outsiders. . "Strategic acquisitions were the principal driver behind the improvement, as well as a return to more favorable weather conditions this summer." "The successful integration of the acquisitions completed in late 2004 expanded 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 scale of operations and established new highs for performance metrics Performance metrics are measures of an organizations activities and performance. Performance metrics should support a range of stakeholder needs from customers, shareholders to employees [1]. ," said Keith McMahon, Executive Vice President and Chief Financial Officer of Arctic Glacier. "The results also demonstrate that the Fund is generating distributable cash that significantly exceeds the current level of distributions to unitholders." Financial Review Sales during the third quarter of 2005 increased by 45% or $23.0 million to an all-time record of $73.6 million. The gain was driven mainly by acquisitions of packaged-ice producers in the U.S. in the final quarter of 2004. These included 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 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. Also making a small initial contribution was the ice division of Hometown Inc. of Milwaukee, Wisconsin, that was acquired by Arctic Glacier on September 16, 2005. These acquisitions contributed $17.2 million to sales in the third quarter. The Fund also benefited from a return to more favorable weather conditions this summer. The change was a significant improvement from unprecedented cold and rainy rain·y adj. rain·i·er, rain·i·est Characterized by, full of, or bringing rain. rain  i·ness n.Adj. conditions that prevailed across most of 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. during the same period in 2004. The impact is evident in financial results for the quarter when acquisitions completed over the previous year are excluded; the results show a 17% increase in sales in previously served markets for the third quarter of 2005 compared to the same quarter in 2004. The improved sales were partly 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 decreased the Canadian-dollar value of sales incurred in U.S. markets by $2.5 million during the third quarter as compared to 2004. For the first nine months of 2005, sales advanced 37% over 2004 to $134.7 million. EBITDA, driven by the same factors as sales, increased by 56% in the third quarter of 2005 compared to 2004, to $31.6 million. In addition to $6.3 million being contributed by the Losquadro and Party Time operations, EBITDA from previously serviced markets was up by $6.1 million or 32%, largely due to improved weather conditions. For the first nine months of 2005, EBITDA increased 56% to $41.6 million compared to 2004. Earnings for the third quarter of 2005 gained 48% to $17.1 million, which equated to $0.72 per unit (basic and diluted), up from $0.50 for the third quarter of 2004. Year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. earnings increased by 26% to $17.8 million, or $0.75 per unit, versus $0.60 in 2004. The improvement was largely due to the expanded scale of Arctic Glacier's operations. Distributable cash, propelled by the larger scale of operations and vastly improved weather conditions, posted a 51% gain during the third quarter to $28.6 million as compared to 2004; on a per-unit basis, that amounted to $1.19 compared to $0.81 in 2004. For the first nine months of 2005, distributable cash increased 49% to $32.3 million or $1.37 per unit, up from $0.93 last year. 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 September 30, 2005 of $71.6 million, compared to $56.0 million at the same time last year, with the increase due to the acquisitions made over the last twelve months. The Fund had total working capital of $22.8 million, including $10.4 million of cash, at the end of the third quarter. This compares to working capital of $22.1 million one year ago. The Fund's net debt to trailing 12-month EBITDA ratio at September 30, 2005 was 1.4:1, reflecting an increase to trailing EBITDA of $1.3 million to give effect to the contribution of acquisitions and foreign currency option gains. This ratio has improved from 1.7:1 at the same time in 2004, and is well 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. Outlook Arctic Glacier's record third quarter results dramatically demonstrate the benefits of the strategic acquisitions completed in the final quarter of 2004. The Fund's expansion in the New York City area and entry into the Michigan market, including the populous pop·u·lous adj. Containing many people or inhabitants; having a large population. [Middle English, from Latin popul Detroit metro area This article is about the music production team. For the article about population centers, see metropolitan area. Metro Area are a Brooklyn-based dance music production team composed of Morgan Geist and Darshan Jesrani. , powered increases in performance metrics to record levels during the third quarter. In addition, the accretive nature of the initiatives is underlined by gains in per-unit results following completion of the acquisitions. The Fund's purchase of the assets of the ice division of Hometown Inc. in Wisconsin during the third quarter further expands the Fund's market reach and is expected to add another $10 million in annual sales. As each acquisition is integrated into Arctic Glacier's operations, rationalization rationalization, in psychology: see defense mechanism. measures seek to maximize synergies and eliminate overlap o·ver·lap n. 1. A part or portion of a structure that extends or projects over another. 2. The suturing of one layer of tissue above or under another layer to provide additional strength, often used in dental surgery. v. and duplication duplication /du·pli·ca·tion/ (doo-pli-ka´shun) 1. the act or process of doubling, or the state of being doubled. 2. . Typically, acquisitions reach optimum performance 18 to 24 months following acquisition. Meanwhile, operational costs are being reduced throughout the system and productivity growth is being encouraged by improvement of production processes, distribution networks and administrative infrastructure. Going forward, the combination of recent accretive acquisitions 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. , rationalization activities and the return to more favorable weather conditions is expected to generate new performance benchmarks for the fiscal year. The Fund is well capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. and has a strong balance sheet. The Fund has a solid foundation that has been strengthened over the past year and will provide investors with secure and stable monthly distributions. Arctic Glacier will discuss third quarter results for 2005 during a conference call with a live audio webcast for investors and analysts on Tuesday, November 1 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, log on to 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 under the brand name of Arctic Glacier(R) Premium Ice. Arctic Glacier operates 26 production plants and 41 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 53,000 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.UN. There are 27.9 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 September 30, 2005 and 2004 (unaudited)
and December 31, 2004 (audited)
September September December
(thousands) 30, 2005 30, 2004 31, 2004
---------------------------------------------------------------------
ASSETS
Current assets
Cash $ 10,351 $ 11,900 $ 14,755
Accounts receivable 20,649 13,860 7,845
Inventories 5,116 3,726 5,961
Prepaid expenses 2,439 2,539 2,180
------------------------------
38,555 32,025 30,741
Property, plant and equipment 122,267 94,046 120,717
Other assets 3,012 1,804 3,739
Intangibles 25,361 3,724 25,695
Goodwill 103,500 101,972 106,150
------------------------------
$ 292,695 $ 233,571 $ 287,042
------------------------------
------------------------------
LIABILITIES AND UNITHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued
liabilities $ 12,658 $ 7,648 $ 12,325
Distributions payable to
unitholders 2,555 2,081 2,083
Current obligations under
capital leases - 51 38
Principal due within one year
on long-term debt 493 190 514
------------------------------
15,706 9,970 14,960
Long-term debt 71,127 55,721 112,252
Future income taxes 13,453 7,568 10,426
Unitholders' equity
Capital contributions 249,596 201,508 201,721
Contributed surplus 664 285 334
Cumulative earnings 40,101 22,112 22,327
Cumulative distributions (77,054) (51,214) (57,462)
Cumulative translation
adjustment (20,898) (12,379) (17,516)
------------------------------
192,409 160,312 149,404
------------------------------
$ 292,695 $ 233,571 $ 287,042
------------------------------
------------------------------
ARCTIC GLACIER INCOME FUND
Interim Consolidated Statements of Operations
Three and nine months ended September 30,
2005 and 2004 (unaudited)
Three Months Nine Months
---------------------------------------
(thousands, except ---------------------------------------
per unit amounts) 2005 2004 2005 2004
---------------------------------------------------------------------
Sales $ 73,584 $ 50,640 $134,668 $ 97,950
Cost of sales, selling,
general and administration
expenses 42,017 30,443 93,104 71,323
---------------------------------------
Earnings before the
undernoted 31,567 20,197 41,564 26,627
Amortization 4,475 2,939 13,445 8,839
Interest 2,117 455 5,736 1,171
Acquisition integration
charges 186 83 665 315
Loss (gain) on disposal
of property, plant
and equipment 53 (258) 57 (363)
Loss (gain) on foreign
exchange options (269) (380) 92 (901)
Non-recurring expenses - - - 109
---------------------------------------
Earnings before income taxes 25,005 17,358 21,569 17,457
Income tax expense
Current 119 450 468 1,389
Future 7,737 5,342 3,327 1,982
---------------------------------------
7,856 5,792 3,795 3,371
---------------------------------------
Earnings for the period $ 17,149 $ 11,566 $ 17,774 $ 14,086
---------------------------------------
---------------------------------------
Earnings per unit - basic
and diluted $ 0.72 $ 0.50 $ 0.75 $ 0.60
---------------------------------------
ARCTIC GLACIER INCOME FUND
Interim Consolidated Statements of Cumulative Earnings
Three and nine months ended September 30, 2005
and 2004 (unaudited)
Three Months Nine Months
---------------------------------------
---------------------------------------
(thousands) 2005 2004 2005 2004
---------------------------------------------------------------------
Cumulative earnings,
beginning of period $ 22,952 $ 10,546 $ 22,327 $ 8,026
Earnings for the period 17,149 11,566 17,774 14,086
---------------------------------------
Cumulative earnings,
end of period $ 40,101 $ 22,112 $ 40,101 $ 22,112
---------------------------------------
---------------------------------------
ARCTIC GLACIER INCOME FUND
Interim Consolidated Statements of Cash Flows
Three and nine months ended September 30,
2005 and 2004 (unaudited)
Three Months Nine Months
---------------------------------------
---------------------------------------
(thousands) 2005 2004 2005 2004
---------------------------------------------------------------------
Cash from (used in):
Operating activities
Earnings for the period $ 17,149 $ 11,566 $ 17,774 $ 14,086
Adjustments for:
Amortization 4,475 2,939 13,445 8,839
Loss (gain) on disposal
of property, plant and
equipment 53 (258) 57 (363)
Unit-based compensation
expense 40 48 330 283
Unrealized loss (gain) on
foreign exchange options (216) 178 110 (269)
Future income taxes 7,737 5,342 3,327 1,982
---------------------------------------
Funds from operations 29,238 19,815 35,043 24,558
Changes in working capital
items 303 658 (10,694) (8,120)
---------------------------------------
29,541 20,473 24,349 16,438
---------------------------------------
Investing activities
Additions to property,
plant and equipment (1,896) (4,041) (10,628) (11,188)
Proceeds from disposal
of property, plant and
equipment 73 338 280 797
Additions to other assets (60) (35) (272) (274)
Additions to goodwill - (93) - (144)
Acquisitions of business
operations (8,456) (2,538) (8,456) (12,252)
---------------------------------------
(10,339) (6,369) (19,076) (23,061)
---------------------------------------
Financing activities
Proceeds from long-term
debt - 3,940 2,318 26,606
Principal repayments on
long-term debt (39,682) (51) (39,947) (159)
Principal payments
under capital lease
obligations (12) (18) (36) (414)
Units issued 47,385 223 47,875 603
Cash distributions paid (6,438) (6,239) (19,120) (18,704)
---------------------------------------
1,253 (2,145) (8,910) 7,932
---------------------------------------
Foreign exchange loss
on cash held in foreign
currency (971) (534) (767) (441)
---------------------------------------
Increase (decrease) in cash 19,484 11,425 (4,404) 868
Cash (bank indebtedness),
beginning of period (9,133) 447 14,755 11,032
---------------------------------------
Cash, end of period $ 10,351 $ 11,900 $ 10,351 $ 11,900
---------------------------------------
---------------------------------------
Supplementary cash flow
information
Interest paid $ 3,055 $ 550 $ 5,654 $ 1,279
Income taxes paid 119 450 468 1,389
---------------------------------------
ARCTIC GLACIER INCOME FUND
Interim Schedule of Distributable Cash
Three and nine months ended September 30,
2005 and 2004 (unaudited)
Three Months Nine Months
---------------------------------------
---------------------------------------
(thousands, except per
unit amounts) 2005 2004 2005 2004
---------------------------------------------------------------------
Cash from operating
activities $ 29,541 $ 20,473 $ 24,349 $ 16,438
Adjustments:
Changes in working
capital items (303) (658) 10,694 8,120
---------------------------------------
29,238 19,815 35,043 24,558
Less sustaining capital
expenditures, net of
dispositions (668) (857) (2,722) (2,917)
---------------------------------------
Distributable cash $ 28,570 $ 18,958 $ 32,321 $ 21,641
---------------------------------------
---------------------------------------
Weighted average number
of units 23,937 23,321 23,562 23,302
Distributable cash per unit $ 1.19 $ 0.81 $ 1.37 $ 0.93
---------------------------------------
---------------------------------------
Distributions declared $ 6,848 $ 6,241 $ 19,592 $ 18,709
Distributions declared
per unit $ 0.28 $ 0.27 $ 0.82 $ 0.80
Distributions declared
per unit (annualized) $ 1.10 $ 1.07 $ 1.10 $ 1.07
---------------------------------------
Arctic Glacier Income Fund (TSX:AG.UN) |
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