Arrowhead Water Products Ltd.
TSX VENTURE : AWP.A

Arrowhead Water Products Ltd.

March 02, 2007 08:30 ET

Arrowhead Water Announces First Quarter Results

CALGARY, ALBERTA--(CCNMatthews - March 2, 2007) - Arrowhead Water Products Ltd. (TSX VENTURE:AWP.A) ("Arrowhead" or the "Company") is pleased to report its unaudited consolidated financial and operating results for the three months ended December 31, 2006. The following summarizes the financial results for the quarter as compared to the first quarter of 2005.



Three months ended December 31 2006 2005
$ $
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Sales 2,148,902 1,950,383
Cost of Sales 1,295,553 1,191,202
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Gross Profit 853,349 759,181
Total expenses 891,730 911,941
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Loss from operations (38,381) (152,760)
Loss on sale of capital assets (6,486) -
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Net loss for the period (44,867) (152,760)
Deficit, beginning of period (655,180) (462,096)
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Deficit, end of period (700,047) (614,856)
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The highlights for the quarter when compared to the first quarter ended December 31, 2005 are:

- Gross margin increased to 40% from 39%.

- Total expenses as a percentage of sales decreased to 41% from 47%.

- Operating cash flow for the quarter was $265,843 as compared to $113,652 for 2005.

- Net loss for the quarter was $44,866 as compared to a net loss of $152,760 for the same period in 2005, an improvement of $107,894.

Improvements in the first three months over 2005 represent the commencement of Arrowhead's commitment to improving gross margins to a range of 40% to 42% of sales. The Company also controlled operating expenses while maintaining annual sales growth in the 15% to 20% range. Going forward, the Company's focus will be to improve on profitability through revenue growth and the control of costs and expenses.

For complete disclosure of Arrowhead's first quarter financial results and Management Discussion & Analysis, please go to www.sedar.com and view documents listed under Arrowhead Water Products Ltd. Additional information is also available on the Company's website at www.arrowheadwater.ca

Overall Performance

The water industry continues to provide many opportunities for growth and advancement. Arrowhead has embarked upon a number of new initiatives that will drive the Company as an innovator and leader in the water business in Western Canada. The Company's new vision and strategic focus will lead the way to increased revenues and profitability. The Company has experienced significant growth and completed management and operational changes over the past two years.

Arrowhead is also pleased to announce the successful launch of its new 15 litre PET compressible bottle to a number of test stores within a major grocery chain in Alberta. This new product is first to market in Western Canada and offers consumers a totally green and 100% recyclable bottle. First month sales have reported an increase of 45% over the traditional volumes for the 18.9 litre returnable bottle. The bottle deposit is only $0.20 per bottle as compared to the traditional $10.00 per bottle deposit for the 18.9 litre returnable bottle currently in use.

About Arrowhead

Arrowhead is a bottled water company that generates the majority of its revenues through the sale and rental of water coolers and the delivery of spring, distilled and drinking water throughout Western Canada. Provincial coverage is achieved by operating production facilities located in Edmonton and Calgary, Alberta and Dawson Creek, B.C. Arrowhead remains committed to continually improve its level of service to its customers and to provide positive returns to its shareholders.

ADVISORY:

Certain information regarding Arrowhead Water Products Ltd. including management's assessment of future plans and operations, may constitute forward-looking statements under applicable securities laws and necessarily involve risks associated with production, marketing and transportation such as loss of market, volatility of prices, currency fluctuations, environment risks, competition from other producers and ability to assess sufficient capital from internal and external source. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements.

Shares Issued 30,832,530




The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Arrowhead Water Products Ltd.
    Don Wood, President and CEO
    5730 Burbank Road S.E. Calgary, Alberta T2H 1Z4
    (403) 692-8260
    (403) 243-1485 (FAX)
    Email: ddwood@arrowheadwater.ca
    or
    Arrowhead Water Products Ltd.
    Dan DeMaere, CFO
    4372 - 97 Street Edmonton, Alberta T6E 5R9
    (780) 486-2467 ext 224
    (780) 486-2878 (FAX)
    Email: dandemaere@arrowheadwater.ca