Glacier Water Services, Inc. announced results for the third quarter ended Oct. 2, 2011.
Brian McInerney, chief executive officer of Glacier Water, said in a prepared statement, “Our third quarter revenues increased 6.0 percent versus the same quarter last year and our year-to-date Oct. 2, 2011 revenues increased 4.1 percent. Same-store revenues have increased 2.4 percent year-to-date. We continued to aggressively expand our network of machines across the U.S. and Canada adding approximately 1,700 machines compared to one year ago. Year-to-date income from operations was $3,500,000 and was impacted by an investment in infrastructure to support our continued growth in water vending locations and the launch of premium ice machines.
Operating income was also impacted by $1,135,000 in costs associated with the company’s efforts to file for an initial public offering, which was withdrawn on Oct. 17, 2011 due to unfavorable market conditions. At the end of the third quarter, Glacier operated more than 20,400 machines located at retailers across the U.S. and Canada, providing high quality, great tasting drinking water and premium ice.”
Revenues for the third quarter ended Oct. 2, 2011 increased 6.0 percent to $29,970,000 compared to $28,265,000 for the same quarter one year ago. For the nine-month period ended Oct. 2, 2011, revenues increased 4.1 percent to $79,901,000 compared to $76,750,000 for the same period one year ago. Sales growth was driven by both same store productivity and the increase in machines on location.
The company’s income from operations for the third quarter ended Oct. 2, 2011 was $1,839,000 compared to $3,707,000 for the same period last year. For the nine-month period ended Oct. 2, 2011, income from operations was $3,500,000 compared to $6,105,000 for the same period last year. The impact on operating income from expenses associated with our initial public offering effort was $960,000 and $1,135,000 for the third quarter and year-to-date 2011, respectively. Income from operations was also affected by increased operating costs to support the growth in machines, and in particular, labor and benefits, vehicle and fuel costs.
The company made additional investments to accelerate growth, including personnel additions in the areas of sales, marketing and product development. Income from operations for the first nine months of 2011 and 2010 included non-cash compensation expense of $361,000 and $525,000, respectively.
The company’s GAAP net loss applicable to common stockholders for the quarter ended Oct. 2, 2011 was $487,000 or $0.18 per basic and diluted share, compared to a GAAP net income of $1,690,000, or $0.62 per basic share and $0.60 per diluted share, for the same period last year. For the nine-month period ended Oct. 2, 2011, the GAAP net loss applicable to common stockholders was $3,378,000, or $1.24 per basic and diluted share, compared to a GAAP net loss of $203,000 or $0.07 per basic share and diluted share, for the same period last year. Excluding the impact of the initial public offering expenses, the non-GAAP pro-forma net income for the quarter ended Oct. 2, 2011 was $473,000 or $0.17 per basic and diluted share, and for the nine-month period ended Oct. 2, 2011 was a non-GAAP pro-forma net loss of $2,243,000, or $0.83 per basic and diluted share.
During the third quarter of 2011, the company modified its revolving bank agreement to include a $10,000,000 term loan, to be repaid in installments beginning next year and through Oct. 1, 2012, and a $38,000,000 revolving loan available to the company through the end of Dec. 31, 2012.
With more than 20,400 machines located in 42 states throughout the U.S. 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.
