GVIC Communications Inc.

May 15, 2006 15:00 ET

GVIC Reports First Quarter Results

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 15, 2006) - GVIC Communications Inc. ("GVIC" or the "Company") reported cash flow, earnings and revenue for the quarter ended March 31, 2006.

For the three months ended March 31, 2006, GVIC generated $1.6 million of cash flow from operating activities (before changes in non-cash operating accounts), EBITA of $2.6 million and net income of $1.6 million on revenue of $5.5 million. This compares to $1.9 million of cash flow from operations, EBITA of $1.9 million and net income of $1.3 million on revenue of $4.6 million for the same period last year.

GVIC earned cash flow from operations per share of $0.004, EBITA per share of $0.007 and net income per share of $0.004 for the three months ended March 31, 2006, as compared to cash flow from operations per share of $0.005, EBITA per share of $0.005 and net income per share of $0.003 for the same period last year.

The first quarter revenue performance was solid, with most categories higher than last year. In particular classified revenues increased, which is an indicator of healthier market conditions.

The Company continues to strengthen its Acreage Life product. Acreage Life is directed at acreage owners in Canada and provides practical, informative and entertaining content about rural life for acreage owners who live close to an urban center and who do not rely on the land as a source of income. The magazine creates the opportunity for national companies currently advertising in The Western Producer to market smaller equipment lines not intended for commercial farming operations. It is also attractive to other "lifestyle" advertisers who can target middle to upper income non-urban acreage owners.

To supplement the consolidated financial statements presented in accordance with Canadian generally accepted accounting principles (GAAP), Glacier uses certain non-GAAP measures that may be different from the performance measures used by other companies. These non-GAAP measures include cash flow from operations (before changes in non-cash operating accounts) and earnings before interest, taxes and amortization (EBITA), which are not alternatives to GAAP financial measures. Management focuses on operating cash flow per share as the primary measure of operating profitability, free cash flow and value. EBITA per share is also an important measure as the Company has low ongoing capital expenditures.

As at March 31, 2006, GVIC had cash of $7.0 million and working capital of $9.7 million excluding deferred revenue. Deferred revenue relates to funds received for subscriptions that have not yet been fulfilled.

About the Company: GVIC Communications Inc. is an information communications company focused on the provision of essential information and related services.

Forward-Looking Statements

Certain statements in this press release are not historical and may constitute forward-looking statements reflecting financial performance. Investors are cautioned that all forward-looking statements involve risks and uncertainties. Forward-looking statements are based on management's estimates, beliefs and opinions on the date the statements are made. The Company assumes no obligation to update forward-looking statements if circumstances should change. Additional information on these and other potential factors that could affect the Company's financial results are detailed in documents filed from time to time with the applicable Canadian securities regulatory authorities and, in particular, are detailed under the "Business Environment and Risks" section of Management's Discussion and Analysis for the year ended December 31, 2005.

Contact Information

  • GVIC Communications Inc.
    Mr. Orest Smysnuik
    (604) 708-3264