Glacier Ventures International Corp.
TSX : GVC

Glacier Ventures International Corp.

August 14, 2006 18:30 ET

Glacier Reports Higher Second Quarter Earnings

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 14, 2006) - Glacier Ventures International Corp. ("Glacier") (TSX:GVC) reported revenue, cash flow and earnings for the period ending June 30, 2006.

Highlights

- Glacier's existing operations generated strong revenue and cash flow growth compared to last year.

- The newly acquired Hollinger operations continue to generate stronger revenue and EBITA growth compared to expectations.

Operating Results

For the six months ended June 30, 2006, Glacier earned $13.2 million of consolidated cash flow from operations on revenue of $89.4 million, as compared to $5.9 million on revenue of $28.2 million for the six months ended June 30, 2005. Glacier's EBITA was $18.9 million and net income was $10.8 million for the six month period ended June 30, 2006, as compared to EBITA of $6.7 million and net income of $3.4 million for the same period last year.



--------------------------------------------------------------------
--------------------------------------------------------------------
$000's except
share and 3 Months 3 Months 6 Months 6 Months
per share June 30, June 30, June 30, June 30,
amounts 2006 2005 2006 2005
--------------------------------------------------------------------
Revenue $ 48,570 $ 13,121 $ 89,413 $ 28,241
--------------------------------------------------------------------
EBITA $ 9,848 $ 2,266 $ 18,880 $ 6,683
--------------------------------------------------------------------
Net income $ 7,457 $ 1,163 $ 10,811 $ 3,360
--------------------------------------------------------------------
Cash flow
from operations $ 7,137 $ 1,904 $ 13,227 $ 5,940
--------------------------------------------------------------------
EBITA/share $ 0.141 $ 0.087 $ 0.279 $ 0.258
--------------------------------------------------------------------
Cash flow from
operations/share $ 0.102 $ 0.073 $ 0.196 $ 0.230
--------------------------------------------------------------------
Net income/share $ 0.107 $ 0.045 $ 0.160 $ 0.130
--------------------------------------------------------------------
Debt outstanding
net of cash
reserves $ 118,577 $ 27,974 $ 118,577 $ 27,974
--------------------------------------------------------------------
Shareholders'
equity $ 167,104 $ 41,507 $ 167,104 $ 41,507
--------------------------------------------------------------------
Average shares
outstanding, net 69,735,019 26,030,696 67,611,921 25,882,552
--------------------------------------------------------------------
--------------------------------------------------------------------


For the three months ending June 30, 2006, Glacier earned $7.1 million of consolidated cash flow from operations on revenue of $48.6 million, as compared to $1.9 million on revenue of $13.1 million for the three months ended June 30, 2005. Glacier's EBITA was $9.8 million and net income was $7.5 million for the three months ended June 30, 2006, as compared to EBITA of $2.3 million and net income of $1.2 million for the same period last year.

Per Share Performance and Outlook

For the three months ended June 30, 2006, cash flow from operations per share was $0.102 compared to $0.073 for the same period last year, EBITA per share was $0.141 compared to $0.087 for the same period last year and net income per share was $0.107 compared to $0.045 for the same period last year.

The EBITA and cash flow from operations per share increases for the quarter were due to internal growth from existing operations and the acquisition and profitability of the Hollinger Canada operations and Madison Publishing operations previously announced. Net income per share also increased as a result of a future income tax recovery resulting from a change in the federal enacted tax rate.

For the six months ended June 30, 2006, cash flow from operations per share was $0.196 compared to $0.230 for the same period last year, EBITA per share was $0.279 compared to $0.258 for the same period last year and net income per share was $0.160 compared to $0.130 for the same period last year.

Cash flow from operations per share for the six month year to date period was lower than last year due to the reduction of per share profitability that occurred in the first quarter of 2006 as a result of the timing of the issuance of common shares (December 2005 and February 2006), the borrowing of debt and the realization and seasonality of revenues and cash flows relating to the acquisition of the Hollinger Canada operations.

On an annualized basis, the acquisitions completed and Glacier's overall results are expected to be accretive with respect to cash flow per share, EBITA per share and net income per share for the following reasons:

- Glacier will need to have realized the majority of the full year of cash flow from the Hollinger Canada operations before year to date per share results become accretive, because these operations historically generate more of their EBITA in the second and fourth quarters. A concordant benefit of the transaction is that Glacier's profit and cash flow per share amounts will be earned more evenly than was the case in prior years;

- The newly acquired Hollinger operations are performing better than expected; and

- Glacier's existing operations are performing better than expected.

To supplement the consolidated financial statements presented in accordance with Canadian generally accepted accounting principles (GAAP), the Company 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), cash flow from operations (before changes in non-cash operating accounts) per share, earnings before interest, taxes and amortization (EBITA) and EBITA per share, which are not alternatives to GAAP financial measures. Cash flow from operations is calculated by taking net income and adding back non-cash items including amortization, future income taxes, non-controlling interest, losses on the disposal of assets and non-cash interest.

Strong Operating Performance

The overall growth in Glacier's revenue and cash flow is the result of significantly stronger internal operating performance from Glacier's existing operations, as well as the acquisition of the Hollinger Canada operations.

A number of sales effectiveness and cost efficiency efforts have been successfully implemented. General market growth has also resulted in stronger revenues. The newly acquired Hollinger operations were ahead of last year on both a revenue and EBITA basis. Integration efforts are also going well with our newly acquired businesses.

Management is spending considerable time focusing on improving the operations that have been acquired.

Hollinger Canada Operations

As previously disclosed, Glacier acquired the Canadian publishing assets of Hollinger International Inc. ("Hollinger") at year end and during the first quarter of 2006. The assets acquired include: a 50% interest in the Great West Newspaper Group, which publishes and prints a group of Alberta based community newspapers and publications, a 50% interest in Fundata Canada, which provides investment fund related electronic and print information and analytics to the Canadian and global investment community and a wide variety of Canadian newspapers and media, 100% of Hollinger Canadian Newspapers, Limited Partnership ("HCNLP"), 100% of Eco Log Environmental Risk Information Services Ltd. ("Eco Log") and certain real estate and other assets. HCNLP owns and operates 1) the Business Information Group in Ontario, which publishes a variety of trade magazines, directories, newsletters, electronic databases and specialty websites, and 2) daily, community and specialty newspapers and printing operations in British Columbia and Quebec. Eco Log is an electronic information and report service provider that accesses key federal, provincial and private sector databases to help identify potential environmental risks in Canada for real estate developers, banks, insurance companies and a variety of other customers. The purchase price for all the businesses acquired from Hollinger was $186 million, including transaction costs and an adjustment relating to working capital in the three months ended June 30, 2006.

Glacier acquired the Hollinger Canada operations to further develop our operations within the parameters of our strategy of growing in two core segments: 1) the business and professional information sector and 2) the newspaper and trade publication sector.

Glacier's combined daily and community newspaper group now offers distribution of approximately 1,020,000 copies across B.C., Alberta, Saskatchewan and Manitoba. Glacier's trade publication group now consists of the largest agricultural publication group in Western Canada, the Business In Vancouver Media Group, and one of Canada's largest trade magazine operations published by the Business Information Group. Glacier's business & professional information group now includes Specialty Technical Publishers which publishes regulatory & compliance information, CD-Pharma Interactive Medical Productions which develops electronic interactive continuing medical education programs for doctors, and a variety of directories, specialty websites and electronic information published by the Business Information Group.

Financial Position

As at June 30, 2006, Glacier had consolidated cash of $13.9 million, current and long-term debt of $132.5 million and working capital of $8.7 million excluding deferred revenue. Deferred revenue relates to funds received for quarterly updates, renewals and subscriptions that have not yet been delivered.

Acquisition Opportunities

While considerable focus is being placed on the integration of the newly acquired operations and ongoing business improvement, Glacier continues to review further acquisition opportunities in the information communications sectors.

Shares in Glacier can be traded on the Toronto Stock Exchange under the symbol GVC.

About the Company: Glacier Ventures International Corp. is an information communications company focused on expanding across North America through both internal growth and the strategic acquisition of information communications companies that provide essential information and related services through print, electronic and online media.

Forward-Looking Statements

Certain statements in this press release are not historical and may constitute forward-looking statements reflecting financial performance. Although Management believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks, uncertainties and other factors which may cause results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements, and undue reliance should not be placed on such statements. Significant factors that could cause results to differ materially from expectations are discussed in the section entitled "Risk Factors" in the Company's Annual Information Form, as updated in the Management's Discussion and Analysis included in the Company's quarterly reports. The Company disclaims any intention or obligation to update any forward-looking statement even if new information becomes available, as a result of future events or for any other reason.

The Toronto Stock Exchange has neither approved nor disapproved the form or content of this release.

Contact Information