Arctic Glacier Reports Record Earnings In Third Quarter.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. -- 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) Net income climbs to $11.6 million The Arctic Glacier Income Fund (TSX:AG) today announced results for the third quarter and nine months ended September September: see month. 30, 2004. Highlights - Purchased distribution center in Newburgh Newburgh (n  `bərg, ny`–), city (1990 pop. 26,454), Orange co., SE N.Y. , New York New York, state, United StatesNew 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 - Improved tax efficiency of cash flow from U.S. subsidiaries to Fund - Completed tuck-in acquisition Tuck-In Acquisition The acquisition of a company made for the sole purpose of merging it into a division of the acquirer. Sometimes referred to as "bolt-on acquisitions." Notes: in Minnesota Minnesota, state, United States Minnesota (mĭn'ĭsō`tə), upper midwestern state of the United States. It is bordered by Lake Superior and Wisconsin (E), Iowa (S), South Dakota and North Dakota (W), and the Canadian provinces market - Increased sales $2.4 million to $50.6 million - Increased earnings $0.2 million to $11.6 million - Maintained quarterly cash distribution rate of $0.27 per unit "During the third quarter we successfully integrated our recent acquisitions and increased overall sales, despite unseasonably cool and wet weather," 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. ."It has been a very challenging year to date for the entire industry, but we expect that a return to more favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. weather patterns will improve the outlook in 2005." Keith Keith may refer to: People with the given name Keith:
Result of a transaction that decreases earnings per common share (EPS). on results until deployed."To date, our acquisitions have been accretive to both earnings and distributable cash," said Mr. McMahon. During the quarter the Fund maintained a quarterly cash distribution rate of $0.27 per unit resulting in declared distributions to unitholders totaling $6.2 million.This represents $1.07 per unit on an 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. basis.To eliminate the effect of seasonal fluctuations in distributable cash, monthly distributions have been leveled throughout the year. Third Quarter Operational Review During the third quarter, Arctic Glacier continued execution of its growth strategy in key U.S. markets.The Fund acquired the assets of a small ice manufacturer and one of its distributors in the Minnesota market in July July: see month. and also purchased a distribution center in Newburgh, New York that had previously been leased.The Newburgh facility will be expanded and converted into a production plant during the first half of 2005. Effective September 1, 2004, the Fund and its subsidiaries changed certain aspects of their internal corporate structure to improve the tax efficiency of the flow of funds Flow of funds In the context of municipal bonds, refers to the statement displaying the priorities by which municipal revenue will be applied to the debt. In the context of mutual funds, refers to the movement of money into or out of a mutual funds or between or among from U.S. subsidiaries to the Fund for ultimate distribution to unitholders. As a result, certain components of cash flows from the U.S. to Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of are now considered to be portfolio interest for taxation purposes and are no longer subject to U.S. withholding tax The amount legally deducted from an employee's wages or salary by the employer, who uses it to prepay the charges imposed by the government on the employee's yearly earnings. . "We expect these changes to our subsidiaries will lead to an increase in distributable cash of about $0.3 million in 2004 and $1.0 million on an annualized basis going forward," said Mr. McMahon. Third Quarter Financial review Sales in the third quarter totaled $50.6 million, up from $48.2 million in the same period last year.Acquisitions completed over the past 12 months, primarily in the New York and Pennsylvania Pennsylvania (pĕnsəlvā`nyə), one of the Middle Atlantic states of the United States. It is bordered by New Jersey, across the Delaware River (E), Delaware (SE), Maryland (S), West Virginia (SW), Ohio (W), and Lake Erie and New York markets, contributed $8.2 million in sales. Operating results for the third quarter were significantly affected by the unseasonably cool and wet weather conditions that affected much 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. this summer.Many key markets experienced the coolest summer in recent history, with some setting long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. records for cold or rain.As a result, sales were down 9% or $4.2 million in markets serviced prior to these acquisitions. The strengthened 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 also adversely impacted sales during the third quarter.The Canadian-dollar value of sales generated in U.S. markets declined by $1.6 million compared to the same period in 2003. For the first nine months of 2004, sales totaled $98.0 million, an increase of $16.5 million or 20% over the same period in 2003. Year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. contributions to sales by acquisitions during the past 12 months were partially offset by the effect of poor weather and the strengthened Canadian dollar. Earnings for the third quarter were $11.6 million, a 2% or $0.2 million increase compared to $11.4 million for the same quarter in 2003.On a per-unit basis, the increased number of units issued and outstanding reduced earnings to $0.50 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. ) from $0.62 in the third quarter last year. For the nine months ended September 30, 2004, earnings were $14.1 million, an increase of 17% or $2.0 million compared to $12.1 million earned in the same period last year.Earnings per unit for the period totaled $0.60, compared to $0.73 in 2003. Distributable cash for the quarter just ended increased 11% or $2.0 million to $19.0 million, compared to $17.0 million in 2003. For the first nine months of 2004, distributable cash was $21.6 million, an increase of 15% compared to $18.8 million in the same period in 2003.On a per unit basis, distributable cash for the first nine months of 2004 was $0.93 compared to $1.13 for the same period in 2003. For both the quarter and the first nine months of 2004, earnings and distributable cash per unit were impacted by the dilutive effect of undeployed proceeds of units issued in the October October: see month. 2003 equity offering.These proceeds are expected to be deployed in the fourth quarter of 2004. Financial Position As at September 30, 2004, 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 total debt was $56.0 million, down from $62.6 million at the same time last year.The Fund had total working capital of $22.1 million, including $11.9 million in cash, at the end of the third quarter.This compares to working capital of $22.7 million one year ago.The Fund's net debt to trailing 12-month 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 ratio at quarter end was 1.7:1, compared to 2.0:1 in 2003. Arctic Glacier is well positioned for continued growth by acquisition.At the end of the quarter, the Fund had $18 million available for investment from the October 2003 equity offering.The Fund expects to deploy the balance of this capital during the fourth quarter of 2004. Outlook In the fourth quarter, Arctic Glacier expects sales to increase due to contributions from its recent acquisitions.However, management expects some of these contributions to be offset by the negative effect on sales of the stronger Canadian dollar. For the 12 months ended December December: see month. 31, 2004, management believes the combined effect of poor weather and the stronger Canadian dollar have affected results to the extent that distributions paid to unitholders will exceed distributable cash. However, the Fund possesses sufficient cash resources required to maintain distributions for the balance of 2004.In addition, Arctic Glacier anticipates that a return to more normal weather patterns next year, combined with the expected 2004 fourth quarter deployment of the remaining proceeds of 2003 equity offerings, will generate sufficient cash in 2005 to meet or exceed the current annualized distribution rate of $1.07 per unit. For the balance of 2004, management is actively investigating accretive opportunities in markets where a significant regional presence can be achieved or enhanced.The Fund is financially well positioned for expansion and will proceed with acquisitions that meet exacting guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. on quality, accretion The act of adding portions of soil to the soil already in possession of the owner by gradual deposition through the operation of natural causes. The growth of the value of a particular item given to a person as a specific bequest under the provisions of a will between the , location and value. Arctic Glacier will discuss third quarter results for 2004 during a conference call with a live audio webcast for investors and analysts on Friday, November 12 at 2 p.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 under the brand name of Arctic Glacier(R) Premium Ice.Arctic Glacier operates 20 production plants and 35 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 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 40,000 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 23.3 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 and non-recurring expenses, including 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 Funds 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 Fund. 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 Funds and, accordingly, may not be comparable to measures used by them.
ARCTIC GLACIER INCOME FUND
Interim Consolidated Balance Sheets
As at September 30, 2004 and 2003 (unaudited) and December 31, 2003
(audited)
September September December
(thousands) 30, 2004 30, 2003 31, 2003
---------------------------------------------------------------------
ASSETS
Current assets
Cash $ 11,900 $ 13,055 $ 11,032
Accounts receivable 13,860 16,030 6,417
Inventories 3,726 3,097 3,515
Prepaid expenses 2,539 1,862 2,213
---------------------------------------------------------------------
32,025 34,044 23,177
Property, plant and equipment 94,046 82,447 89,061
Other assets 4,152 3,822 3,703
Intangibles 1,376 1,373 1,375
Goodwill 101,972 92,437 97,341
---------------------------------------------------------------------
$ 233,571 $ 214,123 $ 214,657
---------------------------------------------------------------------
---------------------------------------------------------------------
LIABILITIES AND UNITHOLDERS' EQUITY
Current liabilities
Accounts payable and
accrued liabilities $ 7,648 $ 9,603 $ 8,366
Distributions payable to
unitholders 2,081 1,633 2,076
Current obligations under
capital leases 51 89 427
Principal due within one
year on long-term debt 190 67 203
---------------------------------------------------------------------
9,970 11,392 11,072
Obligations under capital
leases - 486 38
Long-term debt 55,721 61,915 31,377
Future income taxes 7,568 8,740 5,701
Unitholders' equity
Capital contributions 201,508 153,603 200,905
Contributed surplus 285 - -
Cumulative earnings 22,112 9,314 8,026
Cumulative distributions (51,214) (26,278) (32,505)
Cumulative translation
adjustment (12,379) (5,049) (9,957)
---------------------------------------------------------------------
160,312 131,590 166,469
---------------------------------------------------------------------
$ 233,571 $ 214,123 $ 214,657
---------------------------------------------------------------------
---------------------------------------------------------------------
ARCTIC GLACIER INCOME FUND
Interim Consolidated Statements of Operations
Three and nine months ended September 30, 2004 and 2003 (unaudited)
Three Months Nine Months
-----------------------------------------
(thousands, except per -----------------------------------------
unit amounts) 2004 2003 2004 2003
---------------------------------------------------------------------
Sales $ 50,640 $ 48,219 $ 97,950 $ 81,430
Cost of sales, selling,
general and
administration expenses 30,443 27,806 71,323 56,321
---------------------------------------------------------------------
Earnings before the
undernoted 20,197 20,413 26,627 25,109
Amortization 2,939 2,744 8,839 7,569
Interest 455 510 1,171 1,306
Acquisition
integration charges 83 117 315 117
Loss (gain) on disposal
Of property, plant and
equipment (258) (3) (363) 56
Gain on foreign
exchange options (380) - (901) -
Non-recurring expenses - 179 109 276
---------------------------------------------------------------------
Earnings before
income taxes 17,358 16,866 17,457 15,785
Income taxes
Current 450 873 1,389 1,091
Future 5,342 4,642 1,982 2,642
---------------------------------------------------------------------
5,792 5,515 3,371 3,733
---------------------------------------------------------------------
Earnings for the
period $ 11,566 $ 11,351 $ 14,086 $ 12,052
---------------------------------------------------------------------
---------------------------------------------------------------------
Earnings per unit -
basic and diluted $ 0.50 $ 0.62 $ 0.60 $ 0.73
---------------------------------------------------------------------
ARCTIC GLACIER INCOME FUND
Interim Consolidated Statements of Cumulative Earnings
Three and nine months ended September 30, 2004 and 2003 (unaudited)
Three Months Nine Months
-----------------------------------------
-----------------------------------------
(thousands) 2004 2003 2004 2003
---------------------------------------------------------------------
Cumulative earnings
(deficit), beginning of
period $ 10,546 $ (2,037) $ 8,026 $ (2,738)
Earnings for the period 11,566 11,351 14,086 12,052
---------------------------------------------------------------------
Cumulative earnings,
end of period $ 22,112 $ 9,314 $ 22,112 $ 9,314
---------------------------------------------------------------------
---------------------------------------------------------------------
ARCTIC GLACIER INCOME FUND
Interim Consolidated Statements of Cash Flows
Three and nine months ended September 30, 2004 and 2003 (unaudited)
Three Months Nine Months
-----------------------------------------
-----------------------------------------
(thousands) 2004 2003 2004 2003
---------------------------------------------------------------------
Cash from (used in):
Operating activities
Earnings for the period $ 11,566 $ 11,351 $ 14,086 $ 12,052
Adjustments for:
Amortization 2,939 2,744 8,839 7,569
Gain (loss) on disposal
of property, plant and
equipment (258) (3) (363) 56
Unit-based
Compensation expense 48 - 283 -
Unrealized loss (gain)
on foreign exchange
options 178 - (269) -
Future income taxes 5,342 4,642 1,982 2,642
---------------------------------------------------------------------
Funds from operations 19,815 18,734 24,558 22,319
Changes in working
capital items 658 (1,116) (8,120) (5,313)
---------------------------------------------------------------------
20,473 17,618 16,438 17,006
---------------------------------------------------------------------
Investing activities
Additions to property,
plant and equipment (4,041) (2,479) (11,188) (5,477)
Proceeds from disposal
of property, plant and
equipment 338 12 797 42
Additions to other assets (35) (608) (274) (651)
Additions to intangibles - - - (3)
Additions to goodwill (93) - (144) -
Acquisition of business
operations, net of bank
indebtedness assumed
of $nil (2003 - $569) (2,538) (27,939) (12,252) (34,631)
---------------------------------------------------------------------
(6,369) (31,014) (23,061) (40,720)
---------------------------------------------------------------------
Financing activities
Proceeds from
long-term debt 3,940 28,740 26,606 29,847
Principal repayments
on long-term debt (51) (35) (159) (13,638)
Principal payments under
capital lease obligations (18) (77) (414) (228)
Units issued 223 (6) 603 23,652
Cash distributions paid (6,239) (4,899) (18,704) (13,255)
---------------------------------------------------------------------
(2,145) 23,723 7,932 26,378
---------------------------------------------------------------------
Foreign exchange loss
on cash held in foreign
currency (534) (624) (441) (1,528)
---------------------------------------------------------------------
Increase in cash 11,425 9,703 868 1,136
Cash, beginning of period 475 3,352 11,032 11,919
---------------------------------------------------------------------
Cash, end of period $ 11,900 $ 13,055 $ 11,900 $ 13,055
---------------------------------------------------------------------
---------------------------------------------------------------------
Supplementary cash
flow information
Interest paid $ 550 $ 510 $ 1,279 $ 1,535
Income taxes paid 450 228 1,390 497
---------------------------------------------------------------------
ARCTIC GLACIER INCOME FUND
Interim Schedule of Distributable Cash
Three and nine months ended September 30, 2004 and 2003 (unaudited)
Three Months Nine Months
-----------------------------------------
(thousands, except per unit -----------------------------------------
amounts) 2004 2003 2004 2003
---------------------------------------------------------------------
Cash from operating
activities $ 20,473 $ 17,618 $ 16,438 $ 17,006
Adjustments:
Changes in working
capital items (658) 1,116 8,120 5,313
---------------------------------------------------------------------
19,815 18,734 24,558 22,319
Less sustaining capital
expenditures, net of
dispositions (857) (1,726) (2,917) (3,511)
---------------------------------------------------------------------
Distributable cash 18,958 $ 17,008 $ 21,641 $ 18,808
---------------------------------------------------------------------
---------------------------------------------------------------------
Weighted average
number of units 23,321 18,310 23,302 16,601
Distributable cash
per unit $ 0.81 $ 0.93 $ 0.93 $ 1.13
---------------------------------------------------------------------
---------------------------------------------------------------------
Distributions declared $ 6,241 $ 4,899 $ 18,709 $ 13,517
Distributions
declared per unit $ 0.27 $ 0.27 $ 0.80 $ 0.80
Distributions declared
per unit (annualized) $ 1.07 $ 1.07 $ 1.07 $ 1.07
---------------------------------------------------------------------
The Toronto Stock Exchange does not approve or disapprove dis·ap·prove v. dis·ap·proved, dis·ap·prov·ing, dis·ap·proves v.tr. 1. To have an unfavorable opinion of; condemn. 2. To refuse to approve; reject. v.intr. of the adequacy or accuracy of this release. Arctic Glacier Income Fund (TSX:AG) |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion