Arctic Glacier Income Fund
TSX : AG.UN

Arctic Glacier Income Fund

November 10, 2011 06:00 ET

Arctic Glacier Posts Third Quarter Results

WINNIPEG, MANITOBA--(Marketwire - Nov. 10, 2011) - Arctic Glacier Income Fund (TSX:AG.UN) today announced results for the third quarter ended September 30, 2011.

Summary of Third Quarter 2011*

  • Favorable weather in many of Arctic Glacier's markets
  • Sales increased by $7.0 million or 7% compared to prior year
  • EBITDA increased by $1.7 million or 4% compared to prior year
  • Net earnings increased to $21.6 million from loss of $45.7 million in prior year
  • Converted C$90.6 million convertible debentures to equity
  • Recorded goodwill and intangible asset impairment charges of $15.9 million
  • Lenders issued notice of default without accelerated payment obligations
  • Preliminary court approval for $12.5 million settlement of U.S. direct purchaser class action
  • Subsequent to third quarter, $10 million U.S. direct purchaser class action installment deferred to April 2012
  • TSX reviewing Fund's eligibility for continued listing subsequent to third quarter due to financial condition and reduced unit price
*Dollar amounts in U.S. currency unless otherwise specified

"Arctic Glacier's third quarter sales benefited from an extended period of favorable weather in many of our markets," said Keith McMahon, President and CEO of Arctic Glacier Inc., the Fund's operating company. "These conditions more than offset higher competitive activity in west coast markets and continued weakness in the North American economy, with the result that sales increased from the same quarter last year."

During the third quarter the Fund's weakened financial condition, caused by the prolonged antitrust investigation and related litigation, refinancing costs and reduced cash flow, meant a strategic or refinancing transaction that would provide the capital necessary to retire the convertible debentures could not be completed prior to their maturity on July 31, 2011. In addition, the Fund was not in a position to negotiate an extension to these debentures. Faced with the maturity of the debentures, in the best interests of the Fund these obligations were satisfied by the issuance of units as permitted by the trust indenture. A total of 311.3 million Fund units were issued to debenture holders on August 2, 2011, increasing the issued and outstanding equity to 350.3 million units.

The special committee of the board of trustees continues to evaluate alternatives as part of the strategic and financing review subsequent to the settlement of the convertible debentures, with the intention to facilitate a financial or strategic transaction in the near future in order to establish a longer-term solution.

The Fund was in breach of certain financial covenants under its credit facilities as at June 30, 2011 and September 30, 2011. The Fund received notices of default from its term loan lenders and revolving term credit facility lenders on September 10, 2011 and September 13, 2011 respectively. The Fund is in active discussions with its lenders regarding alternatives to restructure its debt obligations, although there can be no assurance as to the outcome or success of these discussions. The factors noted above indicate the existence of a material uncertainty that may cast significant doubt on the ability of the Fund to continue as a going concern.

Third Quarter 2011 Review

The Fund's financial disclosure for the three months ended September 30, 2011 has been prepared in accordance with International Financial Reporting Standards ("IFRS"). Accordingly, comparative periods for fiscal 2010 have been restated in accordance with IFRS, including the January 1, 2010 transition date balance sheet.

Sales in the third quarter totaled $111.8 million, an increase of $7.0 million or 7% from the same period in 2010. Excluding the effects of the stronger Canadian dollar, sales were up by $5.4 million or 5% as favorable weather in most of Arctic Glacier's markets offset the effect of higher competitive activity in west coast markets and continued weakness in the North American economy. The stronger Canadian dollar increased the U.S. dollar value of sales generated in Canadian markets by $1.6 million.

Cost of sales including depreciation and amortization totaled $79.5 million, an increase of $6.8 million or 9% compared to the third quarter of 2010. Depreciation and amortization expense comprised $9.8 million of the 2011 total, an increase of $2.0 million due primarily to a reduction in the amortization period for customer relationship assets in 2011. Excluding depreciation, amortization and the effects of currency, cost of sales increased by $4.0 million or 6% due to increased sales volumes and higher fuel, packaging, vehicle and third-party distribution costs. In addition, the stronger Canadian dollar increased the U.S. dollar value of costs incurred in Canadian markets by $0.8 million.

General and administrative expenses totaled $2.5 million, compared to $2.0 million for the same period of 2010. The increase was primarily the result of mark-to-market adjustments on unit-based compensation related to unit options granted in previous years.

For the third quarter of 2011, EBITDA was $39.6 million, up from $37.9 million for the same quarter in 2010. The increase was primarily due to increased sales volumes and the stronger Canadian dollar compared to the same period of 2010.

Finance costs of $9.7 million were $0.8 million higher than in the same quarter last year. The increase was primarily due to increased borrowing rates following the March 2011 loan agreement amendments and September 2011 defaults, the stronger Canadian dollar and increased amortization of deferred financing charges related to March 2011 loan amendments, which more than offset the interest savings following the maturity of the convertible debentures.

Other costs totaled $1.7 million for the quarter, a substantial reduction from $75.9 million in the same quarter of 2010. This was mainly due to a one-time non-cash $76.0 million goodwill impairment charge recorded last year. Other costs for the quarter just ended included a non-cash goodwill impairment charge of $12.1 million and intangible asset impairment charge of $3.8 million, loss of $5.3 million on settlement of the convertible debentures through issuance of Fund units, expenses of $4.0 million for the review of financing and strategic alternatives and legal costs of the DOJ antitrust investigation and related litigation totaling $50,000. These expenses were partially offset by a mark-to-market gain on the fair value of convertible debentures and warrants of $23.5 million, due to the weakening market price of units and debentures during the quarter.

The Fund's earnings in the third quarter of 2011 and loss in the same quarter of 2010 were significantly affected by costs of the antitrust investigations and related litigation, costs of the review of financing and strategic alternatives and goodwill and intangible asset impairment charges. These costs are not representative of the ongoing operations of the Fund and, as a result, it is more appropriate to evaluate operating performance by removing these costs. Accordingly, adjusted earnings in the third quarter of 2011 were $41.6 million, compared to $4.2 million for the same quarter last year. That was equivalent to $0.17 (basic) and $0.10 (diluted) per unit, compared to $0.11 (basic and diluted) last year.

The change was due primarily to unrealized gains resulting from mark-to-market adjustments on the fair value of convertible debentures and warrants, a decrease in taxes resulting from an increase in the valuation allowance in the third quarter of 2010 to reflect a reduction against future tax assets that may not be fully realized, and higher EBITDA this year.

Including the expenses, costs and provisions referred to above, net earnings for the third quarter of 2011 totaled $21.6 million or $0.09 (basic) and $0.02 (diluted) per unit, compared to a net loss of $45.7 million or $1.17 (basic and diluted) per unit in the same period of 2010.

Financial Position

As at September 30, 2011, Arctic Glacier's net debt, excluding convertible debentures, was $184.8 million compared to $243.3 million at the same time last year, with the reduction primarily due to the settlement of convertible debentures at maturity through the issuance of Fund units.

The Fund was in breach of financial covenants governing maximum leverage ratio, interest coverage ratio, fixed charge coverage ratio and minimum EBITDA levels under its revolving term credit and term loan facilities as at June 30, 2011 and financial covenants governing maximum leverage ratio and minimum EBITDA under both credit facilities and the fixed charge coverage ratio under its revolving term credit facility as at September 30, 2011. The breach of these covenants represents a default under the terms of the credit facilities and gives the Fund's secured lenders additional rights and privileges under the facilities. The Fund received notices of default from its term loan lenders and revolving term credit facility lenders on September 10, 2011 and September 13, 2011 respectively. As a result, the Fund does not have the ability to make additional draws on its revolving term credit facility and the secured lenders could demand the immediate repayment of amounts outstanding under the facilities.

The Fund is continuing active discussions with lenders regarding alternatives to restructure its debt obligations, although there can be no assurance as to the outcome or success of these discussions. Without the continued support of the secured lenders, there remains a material uncertainty that may cast significant doubt on the ability of the Fund to continue as a going concern.

The Fund had a working capital deficiency of $175.2 million at September 30, 2011. This resulted from the classification of $200.5 million of long-term debt as a current liability because the Fund's lenders have issued notices of credit default. Excluding the long-term debt, the Fund's working capital totaled $25.3 million at quarter end. That compares with a working capital balance of $23.1 million (excluding the convertible debenture liability) at the same time in 2010.

At September 30, 2011, the Fund was in default under its secured credit facilities and, as a result, does not have the ability to make additional draws on its revolving term credit facility. The Fund does have $23.6 million of cash on hand to meet operating and capital expenditure requirements.

U.S. DOJ Investigation and Related Litigation

During the third quarter of 2011 the Fund announced preliminary court approval for a $12.5 million settlement with U.S. direct purchasers of packaged ice who had filed a class action. Arctic Glacier paid the first installment of the settlement of $2.5 million on August 4, 2011. Subsequent to the end of the quarter, the settlement agreement was amended to defer the final installment payment of $10.0 million to approximately April 2, 2012.

Still ongoing are a number of state investigations to determine if state antitrust laws have been broken, although there has not been any movement in this area for some time. Also outstanding are several class action lawsuits initiated in Canada and the U.S. At this time, it is not possible to predict the timeline or final outcome of the investigations or litigation, or any potential effect they may have on the Fund or its operations.

Further information, including court decisions rendered to date, will be outlined in the Fund's third quarter Management's Discussion and Analysis.

Outlook

As Arctic Glacier enters the fourth quarter, its highest priority remains ongoing discussions with its lenders to secure a financing solution for its revolving term credit and term loan facilities. The Fund received notices of default from its term loan lenders and revolving term credit facility lenders on September 10, 2011 and September 13, 2011 respectively. As a result, the Fund does not have the ability to make additional draws on its revolving term credit facility and the secured lenders could demand the immediate repayment of amounts outstanding under the facilities. The Fund would not have adequate liquidity to satisfy a demand for accelerated repayment under its credit facilities if it received one.

The Fund is in active discussions with its lenders regarding alternatives to restructure its debt obligations, although there can be no assurance as to the outcome or success of these discussions. The Fund's ability to continue as a going concern is dependent on the outcome of these discussions. The factors noted above indicate the existence of a material uncertainty that may cast significant doubt on the ability of the Fund to continue as a going concern.

During the third quarter the Fund, under the direction of the special committee of the board of trustees and with the assistance of TD Securities, continued to evaluate alternatives as part of the strategic and financing review, seeking a longer-term solution to ensure the continued viability of the Fund.

The Fund has made considerable progress resolving remaining antitrust issues and related litigation. During the third quarter, the U.S. direct purchasers' class action litigation settlement agreement received preliminary court approval and Arctic Glacier paid the first installment of the settlement of $2.5 million on August 4, 2011. Subsequent to the end of the quarter, the settlement agreement was amended to defer the final installment payment of $10.0 million to approximately April 2, 2012.

During the third quarter, Arctic Glacier benefited from an extended period of favorable weather in many of its markets. These conditions more than offset higher competitive activity in west coast markets and a weak North American economy, with the result that sales increased from the same quarter last year. In the fourth quarter of 2011 and first quarter of 2012 weather will be less of a determining factor in most markets because winter months constitute an off-peak season, when Arctic Glacier normally posts negative EBITDA and net losses.

Subsequent to quarter end, the Toronto Stock Exchange advised the Fund it is reviewing the eligibility for continued listing of Fund units. The Fund is being reviewed under TSX's Remedial Review Process and has been granted 30 days, subject to any further extensions that may be granted by TSX in its discretion, to comply with all TSX requirements for continued listing. If the Fund is unable to demonstrate on or before November 21, 2011 that it meets, or is expected to meet within a reasonable period of time, all TSX requirements for continued listing, the units will be delisted 30 days from such date. TSX initiated its delisting review due to (i) the Fund's difficult financial condition, including its current default under its credit facilities with its lenders and (ii) the trading price of the Fund's units, which have been reduced to a level that potentially may not warrant continued listing.

Going forward, Arctic Glacier is focused on key operational strategies that include:

  • Adding new sales volumes at attractive margins in both retail and non-retail channels in current markets;
  • Working with customers to expand product categories and improve product mix to increase sales and profitability; and,
  • Pursuing technology-based initiatives in manufacturing and distribution to improve efficiencies and reduce costs.

As the Fund examines financing alternatives, management continues to carefully manage its cash position and expenditures to provide liquidity to support operations.

Arctic Glacier is working to resolve current challenges, and as the Fund examines new initiatives to improve the business, its key operating principles remain unchanged: to provide value to its customers through superior product quality and industry leading customer service.

About Arctic Glacier

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, primarily under the brand name of Arctic Glacier® Premium Ice. Arctic Glacier operates 39 production plants and 48 distribution facilities across Canada and the northeast, central and western United States servicing more than 75,000 retail locations.

Arctic Glacier Income Fund trust units are listed on the Toronto Stock Exchange under the trading symbol AG.UN. There are 350.3 million trust units outstanding.

Conference Call and Webcast

Arctic Glacier will discuss third quarter 2011 results during a conference call with a live audio webcast for investors and analysts on Thursday, November 10 at 11 am (EDT). To access the simultaneous webcast, log on to Arctic Glacier's website at http://www.arcticglacier.com/. Please note the webcast allows participants to listen only.

Forward-Looking Statements

This news release contains statements that constitute forward-looking information within the meaning of applicable securities legislation. All statements other than statements of historical fact are forward-looking statements. The forward-looking information in this news release includes, without limitation, statements regarding: (i) the continuing review by the special committee of the board of trustees of financial or strategic transactions to establish a longer-term solution to ensure the continued viability of the Fund; (ii) the Fund's active discussions with its lenders regarding alternatives to restructure its debt obligations; and (iii) the ongoing anti-trust investigations and related litigation. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management.

Forward-looking information is presented for the purpose of assisting readers of this news release in understanding the Fund's financial condition and results of operations and its strategies, priorities and objectives and may not be appropriate for other purposes. Forward-looking information involves significant risks and uncertainties. Actual results, events, performances, achievements and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking information contained in this news release. The forward-looking information contained in this news release is based on a number of assumptions which may prove to be incorrect, including, but not limited to, the potential impact on the Fund of (i) any potential strategic or financial transaction, (ii) the restructuring of the Fund's debt obligations or (iii) the settlement of on-going anti-trust investigations and related litigation. Although the forward-looking statements contained in this news release are based upon what management believes to be reasonable assumptions, the Fund cannot assure readers that actual results will be consistent with these forward-looking statements. Note that there can be no assurance that the Fund will successfully locate, negotiate or complete a financial or strategic transaction, or if completed, that such a transaction will be completed on terms favorable to the Fund or its unit holders. Further, there can be no assurance as to the outcome or success of the Fund's discussions with its lenders regarding alternatives to restructure the Fund's debt obligations. And, at this time, it is not possible to predict the timeline or final outcome of the investigations or litigation, or any potential effect they may have on the Fund or its operations. All of the foregoing indicate the existence of a material uncertainty that may cast significant doubt on the ability of the Fund to continue as a going concern.

The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. These forward-looking statements are made as at the date of this news release, and, other than as required by applicable securities legislation, the Fund assumes no obligation to update or revise them, either publicly or otherwise, to reflect new events, information or circumstances, despite the fact that new events, information or circumstances may cause the Fund's views to change.

Non-IFRS Financial Measures

EBITDA and adjusted earnings are not recognized measures under International Financial Reporting Standards (IFRS). EBITDA is defined as earnings before interest and finance costs, loan amendment fees, income taxes, depreciation, amortization, gains or losses on foreign exchange, asset impairment charges, costs of antitrust investigations and related litigation, cost of review of financing and strategic alternatives and other non-recurring expenses. EBITDA is a performance measure used by management to provide an indication of cash generated 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. Adjusted earnings is defined as earnings before one-time after tax costs of antitrust investigations and related litigation, cost of review of financing and strategic alternatives, asset impairment charges and loss on settlement of convertible debentures. Adjusted earnings is used by management to evaluate the ongoing profitability of the Fund by eliminating the effect of these material non-operating costs. Investors should be cautioned that EBITDA and adjusted earnings should not be construed as alternatives to earnings, cash from operating activities or other financial measures determined in accordance with IFRS as indicators of the Fund's performance. The Fund's method of calculating EBITDA and adjusted earnings may differ from other companies and income trusts and, accordingly, may not be comparable to measures used by them.

ARCTIC GLACIER INCOME FUND
Interim Condensed Consolidated Statement of Financial Position
As at September 30, 2011 and 2010 (unaudited), and December 31, 2010 (unaudited)
(thousands of U.S. dollars) September 30, 2011 September 30, 2010 December 31, 2010
ASSETS
Current assets
Cash $ 23,593 $ 15,333 $ 9,240
Accounts receivable 27,194 25,787 11,804
Inventories 10,059 9,548 10,493
Prepaids 4,372 4,663 3,703
65,218 55,331 35,240
Deferred tax asset 2,887 11,728 13,415
Property, plant and equipment 130,090 138,913 137,388
Intangible assets 87,264 106,988 105,570
Goodwill 58,571 71,061 71,762
$ 344,030 $ 384,021 $ 363,375
LIABILITIES AND UNITHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued liabilities $ 20,912 $ 22,730 $ 15,277
Provisions 365 343 335
Antitrust related litigation settlements 11,802 - 11,393
Other financial liabilities 3,791 7,312 8,228
Convertible debentures - 81,578 74,490
Principal due within one year on long-term debt 203,508 1,840 2,391
240,378 113,803 112,114
Unit options - 545 80
Warrants - 44 -
Long-term debt 4,885 175,223 176,522
Deferred tax liability - 2,410 7,254
Unitholders' equity
Units 389,922 325,170 325,170
Deficit (283,839 ) (231,630 ) (253,693 )
Accumulated other comprehensive loss (7,316 ) (1,544 ) (4,072 )
98,767 91,996 67,405
$ 344,030 $ 384,021 $ 363,375
ARCTIC GLACIER INCOME FUND
Interim Condensed Consolidated Statement of Operations
Three and nine months ended September 30, 2011 and 2010 (unaudited)
Three Months Nine Months
(thousands of U.S. dollars, except per unit amounts) 2011 2010 2011 2010
Sales $ 111,790 $ 104,818 $ 201,476 $ 198,616
Cost of sales 79,527 72,737 178,697 165,390
32,263 32,081 22,779 33,226
General and administrative expenses 2,477 1,964 7,563 6,128
Operating earnings 29,786 30,117 15,216 27,098
Finance costs 9,744 8,896 28,644 24,981
Other costs 1,711 75,923 13,171 79,496
Earnings (loss) before income taxes 18,331 (54,702 ) (26,599 ) (77,379 )
Income taxes
Current 116 37 367 292
Deferred (reduction) (3,386 ) (9,084 ) 3,180 (17,063 )
(3,270 ) (9,047 ) 3,547 (16,771 )
Earnings (loss) for the period $ 21,601 $ (45,655 ) $ (30,146 ) $ (60,608 )
Earnings (loss) per unit – basic $ 0.09 $ (1.17 ) $ (0.28 ) $ (1.55 )
Earnings (loss) per unit – diluted $ 0.02 $ (1.17 ) $ (0.35 ) $ (1.55 )
ARCTIC GLACIER INCOME FUND
Interim Condensed Consolidated Statement of Comprehensive Income (Loss)
Three and nine months ended September 30, 2011 and 2010 (unaudited)
Three Months Nine Months
(thousands of U.S. dollars) 2011 2010 2011 2010
Earnings (loss) for the period $ 21,601 $ (45,655 ) $ (30,146 ) $ (60,608 )
Other comprehensive loss
Foreign currency translation adjustments (719 ) (2,569 ) (3,244 ) (1,544 )
Comprehensive income (loss) for the period $ 20,882 $ (48,224 ) $ (33,390 ) $ (62,152 )
ARCTIC GLACIER INCOME FUND
Interim Condensed Consolidated Statement of Changes in Unitholders' Equity
Nine months ended September 30, 2011 and 2010 (unaudited)
Nine Months
(thousands of U.S. dollars) 2011 2010
Units
Balance, beginning of period $ 325,170 $ 325,170
Unit issuance 64,752 -
Balance, end of period 389,922 325,170
Deficit
Balance, beginning of period (253,693 ) (171,022 )
Loss for the period (30,146 ) (60,608 )
Balance, end of period (283,839 ) (231,630 )
Accumulated other comprehensive loss
Balance, beginning of period (4,072 ) -
Other comprehensive loss (3,244 ) (1,544 )
Balance, end of period (7,316 ) (1,544 )
Total Unitholders' Equity $ 98,767 $ 91,996
ARCTIC GLACIER INCOME FUND
Interim Condensed Consolidated Statement of Cash Flow
Nine months ended September 30, 2011 and 2010 (unaudited)
Nine Months
(thousands of U.S. dollars) 2011 2010
Cash from (used in):
Operating activities
Loss for the period $ (30,146 ) $ (60,608 )
Adjustments for:
Depreciation and amortization 29,393 23,506
Finance costs 28,644 24,981
Interest paid (24,903 ) (20,473 )
Antitrust litigation settlement paid (2,500 ) -
Antitrust related litigation settlements 1,993 -
Recognition of rents on a straight-line basis 371 537
Unit-based compensation expense (82 ) (626 )
Loss on disposals of non-current assets 71 110
Gain on settlement of acquisition payable (1,091 ) -
Loss (gain) on fair value adjustments on convertible debentures (18,047 ) 1,175
Loss on settlement of convertible debentures 5,268 -
Gain on fair value adjustments on warrants (428 ) (1,505 )
Loss on U.S. denominated debt - 283
Deferred income tax (reduction) 3,180 (17,063 )
Goodwill impairment 12,119 76,008
Intangibles impairment 3,807 -
7,649 26,325
Changes in non-cash working capital items (9,739 ) (7,135 )
(2,090 ) 19,190
Investing activities
Additions to property, plant and equipment (9,015 ) (14,680 )
Proceeds from disposal of property, plant and equipment 232 162
Additions to intangibles (200 ) -
(8,983 ) (14,518 )
Financing activities
Proceeds from long-term debt 30,300 212,598
Principal repayments on long-term debt (1,186 ) (184,596 )
Payment of deferred financing charges (2,799 ) (18,140 )
Unit issuance costs (157 ) -
26,158 9,862
Foreign currency translation adjustments (732 ) 72
Increase in cash 14,353 14,606
Cash, beginning of period 9,240 727
Cash, end of period $ 23,593 $ 15,333
ARCTIC GLACIER INCOME FUND
Reconciliation of Adjusted Earning (Loss)
Three and nine months ended September 30, 2011 and 2010 (unaudited)
Three Months Nine Months
(in thousands of U.S. dollars) 2011 2010 2011 2010
Earnings (loss) for the period $ 21,601 $ (45,655 ) $ (30,146 ) $ (60,608 )
Add:
Costs of antitrust investigations and related litigation (1) 50 1,640 4,177 3,535
Costs of review of financing and strategic alternatives 3,998 - 7,366 -
Goodwill impairment (2) 12,119 48,190 12,119 48,190
Intangible asset impairment (3) 3,807 - 3,807 -
Adjusted earnings (loss) 41,575 4,175 (2,677 ) (8,883 )
Dilutive effect of convertible debentures (17,721 ) - (9,276 ) -
Diluted adjusted earnings (loss) $ 23,854 $ 4,175 $ (11,953 ) $ (8,883 )
Earnings (loss) per unit
Basic $ 0.09 $ (1.17 ) $ (0.28 ) $ (1.55 )
Diluted $ 0.02 $ (1.17 ) $ (0.35 ) $ (1.55 )
Adjusted earnings (loss) per unit
Basic $ 0.17 $ 0.11 $ (0.02 ) $ (0.23 )
Diluted $ 0.10 $ 0.11 $ (0.11 ) $ (0.23 )
1. Net of tax effect of $nil and $nil for the three and nine months ended September 30, 2011 since 2011 future tax recoveries are offset by valuations against future tax assets in U.S. subsidiaries which may not be fully realized (2010 - $880 recovery and $nil).
2. Net of tax effect of $nil and $nil for the three and nine months ended September 30, 2011 since 2011 future tax recoveries are offset by valuation against future tax assets in U.S. subsidiaries which may not be fully realized (2010 - $27,818 and $27,818).
3. Net of tax effect of $nil and $nil for the three and nine months ended September 30, 2011 since 2011 future tax recoveries are offset by valuation against future tax assets in U.S. subsidiaries which may not be fully realized (2010 - $niland $nil).
ARCTIC GLACIER INCOME FUND
Reconciliation of EBITDA
Three and nine months ended September 30, 2011 and 2010 (unaudited)
Three Months Nine Months
(in thousands of U.S. dollars) 2011 2010 2011 2010
Earnings (loss) for the period $ 21,601 $ (45,655 ) $ (30,146 ) $ (60,608 )
Add (deduct):
Depreciation and amortization 9,828 7,821 29,393 23,506
Loss on disposals of non-current assets 29 7 71 110
Finance costs 9,744 8,896 28,644 24,981
Other costs 1,711 75,923 13,171 79,496
Income taxes (reduction) (3,270 ) (9,047 ) 3,547 (16,771 )
EBITDA $ 39,643 $ 37,945 $ 44,680 $ 50,714

The Toronto Stock Exchange does not approve or disapprove of the adequacy or accuracy of this release.

Contact Information

  • Arctic Glacier Income Fund
    Keith McMahon
    President & CEO
    1-888-573-9237

    Arctic Glacier Income Fund
    Doug Bailey
    Chief Financial Officer
    1-888-573-9237

    Toll free investor relations phone:
    1-888-573-9237
    www.arcticglacier.com