Arrowhead Water Products Ltd.
TSX VENTURE : AWP.A

Arrowhead Water Products Ltd.

January 31, 2008 08:30 ET

Arrowhead Water Announces Year End Financial and Operating Results

CALGARY, ALBERTA--(Marketwire - Jan. 31, 2008) - Arrowhead Water Products Ltd. ("Arrowhead" or the "Company") (TSX VENTURE:AWP.A) is pleased to report its consolidated financial and operating results for the fiscal year ended September 30, 2007. For complete disclosure of Arrowhead's September 30, 2007 year-end financial results and Management's Discussion and Analysis ("MD&A"), please go to www.SEDAR.com and view documents listed under Arrowhead Water Products Ltd. The following are the highlights for fiscal 2007.

Highlights for the Year

- Gross profit increased to $3,581,557 from $3,336,976;

- Revenue increased to $8,996,269 from $8,834,432;

- Cash flow from operations decreased to $992,742 from $1,065,185;

- Sales to retail distributors increased from $5,830,319 to $6,541,639; and

- Incurred a loss from operations for the year of $498,867 prior to loss on sales of assets or impairments.

Operations and Outlook

Arrowhead is engaged in the production, distribution and sale of large format (15 litre and 18.9 litre) bottles of drinking water in Western Canada. Arrowhead's primary distribution channels include the Western Canadian retail and wholesale grocery market (currently 71% of total revenues). By focusing on the retail and wholesale channel, it is Management's view that the Company can significantly improve sales, cashflow and profitability.

Over the past year, the Company continued to position itself to grow the new 15 litre channel. The 15 litre business has increased the Company's revenues and bottled water volumes in the past year. The new 15 litre bottles are currently being produced from the Company's plant in Edmonton and are a lighter, crushable and blue box disposable PET bottle. The single use bottle is 100% recyclable and compatible with any water cooler. The bottle has a $0.20 refundable deposit and may be returned in Alberta or British Columbia at any bottle depot for a refund. As a result of the introduction of the new 15 litre channel and an agreement to purchase a second Siapi blow moulding machine to produce the new format 15 litre bottles, the Company will continue to expand its business at retail locations in Western Canada, primarily in Alberta, with expansion opportunities in British Columbia.

The Company advises that, as noted in the Financial Statements and MD&A, it has been working to increase profitability as its primary business goal. As a result of tightening cost controls and other costs, the Company has found it necessary to cease to provide products to one of its major retail accounts in Western Canada. This will allow the Company to better service its other major retail and wholesale customers while expanding its new 15 litre bottle business.

About Arrowhead Water

Arrowhead Water is Canada's largest Canadian owned, publicly traded water company which is engaged in the production, sale and distribution of large format (15 and 18.9 litre) bottled drinking water. Arrowhead produces and delivers bottles of reverse osmosis, distilled and natural spring water to the Western Canadian retail and wholesale market. Arrowhead remains committed to continually improve its level of service to its customers and to provide positive returns to its shareholders.

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.

Issued and Outstanding Shares: 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 W. Wood
    President and Chief Executive Officer
    (403) 692-8259
    (403) 243-1485 (FAX)
    Email: dwood@arrowheadwater.ca
    or
    Arrowhead Water Products Ltd.
    Russell Rogers
    Vice-President and General Manager
    (403) 692-8260
    (403) 243-1485 (FAX)
    Email: rrogers@arrowheadwater.ca
    or
    Arrowhead Water Products Ltd.
    5730 Burbank Road SE
    Calgary, Alberta T2H 1Z4