Glacier Ventures International Corp.
TSX : GVC

Glacier Ventures International Corp.

November 14, 2006 17:32 ET

Glacier Reports Higher Third Quarter Earnings

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

Highlights

- Glacier acquired 50% of Alta Newspaper Group Limited Partnership, which publishes newspapers in Southern Alberta and Saskatchewan.

- Glacier's existing operations generated stronger revenues and cash flow compared to last year.

- The Hollinger Canada operations acquired earlier in the year continue to generate stronger revenue and EBITA growth compared to expectations.

Operating Results

For the nine months ended September 30, 2006, Glacier earned $17.3 million of consolidated cash flow from operations on revenue of $133.0 million, as compared to $7.9 million on revenue of $43.7 million for the nine months ended September 30, 2005. Glacier's EBITA was $25.5 million and net income was $11.7 million for the nine month period ended September 30, 2006, as compared to EBITA of $8.9 million and net income of $4.3 million for the same period last year.



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$000's except 3 Months 3 Months 9 Months 9 Months
share and per September 30, September 30, September 30, September 30,
share amounts 2006 2005 2006 2005
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Revenue $ 43,616 $ 15,484 $ 133,029 $ 43,726
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EBITA $ 6,760 $ 2,206 $ 25,542 $ 8,890
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Net income $ 851 $ 890 $ 11,662 $ 4,250
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Cash flow from
operations $ 4,128 $ 1,936 $ 17,259 $ 7,914
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EBITA/share $ 0.09 $ 0.06 $ 0.37 $ 0.29
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Cash flow from
operations /share $ 0.06 $ 0.05 $ 0.25 $ 0.26
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Net income/share $ 0.01 $ 0.02 $ 0.17 $ 0.14
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Debt outstanding
net of cash
reserves $ 143,216 $ 18,993 $ 143,216 $ 18,993
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Shareholders'
equity $ 205,723 $ 75,148 $ 205,723 $ 75,148
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Average shares
outstanding, net 71,838,014 39,747,171 69,036,099 30,554,878
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For the three months ending September 30, 2006, Glacier earned $4.1 million of consolidated cash flow from operations on revenue of $43.6 million, as compared to $1.9 million on revenue of $15.5 million for the three months ended September 30, 2005. Glacier's EBITA was $6.8 million and net income was $0.9 million for the three months ended September 30, 2006, as compared to EBITA of $2.2 million and net income of $0.9 million for the same period last year.

Per Share Performance and Outlook

For the three months ended September 30, 2006, cash flow from operations per share was $0.06 compared to $0.05 for the same period last year, EBITA per share was $0.09 compared to $0.06 for the same period last year and net income per share was $0.01 compared to $0.02 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 Alta Newspaper Group Limited Partnership and Hollinger Canada operations previously announced.

For the nine months ended September 30, 2006, cash flow from operations per share was $0.25 compared to $0.26 for the same period last year, EBITA per share was $0.37 compared to $0.29 for the same period last year and net income per share was $0.17 compared to $0.14 for the same period last year.

Cash flow from operations per share for the nine month year to date period was slightly 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. The recent equity issue in September 2006 had minimal impact on the per share amounts.

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.

Acquisition of Alta Newspaper Group Limited Partnership & Related Financings

As previously announced, Glacier acquired 50% of Alta Newspaper Group Limited Partnership ("ANGLP") on September 15, 2006.

ANGLP owns and operates a group of daily and community newspapers based in Southern Alberta including the Lethbridge Herald, Medicine Hat News, Sunny South News, Vauxhall Advance, Bow Island County Commentator, Taber Times, Prairie Post, The Pipeline, The Southern Times, and Farm News. ANGLP also owns a group of recently acquired newspapers in Saskatchewan including the Shaunavon Standard, Maple Creek News and Southwest Advance Times. Glacier contributed the Sherbrooke Record to ANGLP as partial consideration for the acquisition.

The purchase price for the 50% equity interest in ANGLP was $30.8 million including transaction costs. In addition, Glacier lent $15 million in subordinated debt to ANGLP.

In order to finance the transaction, Glacier raised $50.7 million of common equity at $3.00 per share through two private placements. $38.7 million was raised through subscription receipts concurrent with the acquisition, and $12 million was raised in a follow-on private placement that closed October 17, 2006. In addition to the equity capital, Glacier raised $12 million of five year subordinated debt.

The equity capital not used to finance the transaction is intended for further acquisitions including the purchase of additional equity interests in ANGLP, pay down of debt in the interim, and for general corporate purposes.

The ANGLP acquisition complements the Hollinger Canada operations acquired earlier in the year by further expanding Glacier's reach in the Western Canada community and non-metropolitan newspaper market.

Glacier's combined daily and community newspaper group now offers distribution of more than 1 million 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 September 30, 2006, Glacier had consolidated cash of $11.9 million, current and long-term debt of $155.1 million (of which $17.5 million was borrowed by ANGLP and is non-recourse) and working capital of $7.1 million excluding deferred revenue. During the third quarter, Glacier reduced its bank term loan by $3.5 million more than was required by scheduled principal repayments. Repayment of long-term debt is an important priority for Glacier. 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. Glacier is currently pursuing this strategy through two core business segments: 1) the business and professional information markets and 2) the newspaper and trade publication markets.

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

  • Glacier Ventures International Corp.
    Mr. Orest Smysnuik
    (604) 872-8565