Arrowhead Water Products Ltd.
TSX VENTURE : AWP.A

Arrowhead Water Products Ltd.

August 30, 2007 14:06 ET

Arrowhead Water Announces Third Quarter Results

CALGARY, ALBERTA--(Marketwire - Aug. 30, 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 third quarter ended June 30, 2007. The following summarizes the financial results for the quarter as compared to the third quarter of 2006.



Three months ended June 30 2007 2006
$ $
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Sales 2,260,067 2,255,836
Cost of Sales 1,364,734 1,383,918
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Gross Profit 895,333 871,307
General & Administrative 591,617 546,884
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EBITDA 303,716 324,423
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Amortization 339,535 282,235-
Stock-based compensation 7,174 14,468
Interest 39,458- 45,279
Loss for the period (142,056) 24,564
Retained earnings, (deficit) beginning (878,962) (559,467)
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Retained earnings, (deficit) end (1,021,019) (534,903)
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For complete disclosure of Arrowhead's third quarter financial results and Management Discussion & Analysis, please go to www.sedar.com and view documents listed under Arrowhead Water Products Ltd. Additional information 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 has experienced significant growth, management and operational changes that have occurred over the past two years and is on track integrating these changes and returning the Company to profitability and growth.

The highlights for the quarter when compared to the third quarter ended June 30, 2006 are:

- Gross profit increased $24,026 to $895,333;

- Total expenses increased by $44,733 or 8.2%;

- Cost of Goods sold decreased by $19,184 or 2%

- Operating cash flow for the quarter continues to be strong; and

- Incurred a net loss for the quarter of $142,056 as compared to a net gain of $24,564 for the same period last year.

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.

Overview

Arrowhead continues to increase its test market with the advancement of its 15L "1-way" bottle channel to a number of locations within the major retail sector in Western Canada. Quarterly results have proven this to be successful. and current quarter has doubled in both revenues and production volumes from the second quarter. Management believes that this trend will continue over the fourth quarter and into fiscal 2008.

READER ADVISORY

This press release includes forward-looking statements and assumptions respecting the Company's strategies, future operations, expected financial results, financial sources, commodity prices, costs of production and quantum of oil and natural gas reserves and discusses certain issues, risks and uncertainties that can be expected to impact on any of such matters. By their nature, forward-looking statements are subject to numerous risks and uncertainties that can significantly affect future results. Actual future results may differ materially from those assumed or described in such forward-looking statements as a result of the impact of issues, risks and uncertainties whether described herein or not, which the company may not be able to control. The reader is therefore cautioned not to place undue reliance on such forward-looking statements. The Company disclaims any intention or obligation to update or revise these forward-looking statements, as a result of new information future events or otherwise.

Shares Issued 30,832,530

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

Contact Information

  • Arrowhead Water Products Ltd.
    Donald Wood
    CEO/President
    (403) 692-8259
    Email: dwood@arrowheadwater.ca
    or
    Arrowhead Water Products Ltd.
    Russell P.Rogers
    VP & General Manager
    (403) 692-8259
    Email: rrogers@arrowheadwater.ca
    or
    Arrowhead Water Products Ltd.
    5730 Burbank Road S.E.
    Calgary, Alberta T2H 1Z4
    (780) 243-1485 (FAX)