Glacier Ventures International Corp.
TSX : GVC

Glacier Ventures International Corp.

August 12, 2005 13:27 ET

Glacier Reports Second Quarter Results

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 12, 2005) - Glacier Ventures International Corp. (TSX:GVC) ("Glacier") reported revenue, cash flow and earnings for the period ending June 30, 2005.

Highlights

- Cash flow from operations per share grew 25.2% for the six months ending June 30, 2005 compared to the same period last year;

- Subsequent to the quarter end, Glacier acquired substantially all of the Madison Publishing Group, which publishes community newspapers, business and trade publications in British Columbia and Western Canada;

- Subsequent to the quarter end, Glacier raised net proceeds of $18.8 million by way of private placement of common shares at $2.40 per share. The proceeds are intended primarily for further acquisitions, and were used to pay down debt in the interim.

Operating Results

For the six months ending June 30, 2005, Glacier earned $5.9 million of consolidated cash flow from operations on revenue of $28.2 million, as compared to $4.6 million on revenue of $20.9 million for the six months ended June 30, 2004. Glacier's EBITDA was $6.7 million and net income was $3.4 million for the period, as compared to EBITDA of $5.0 million and net income of $1.9 million for the same period last year.



--------------------------------------------------------------------
3 Months 3 Months 6 Months 6 Months
June 30, June 30, June 30, June 30,
2005 2004 2005 2004
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Revenue $ 13,121,151 $ 10,150,773 $ 28,241,115 $ 20,885,910
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EBITDA $ 2,266,044 $ 2,082,621 $ 6,683,099 $ 5,048,387
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Net income $ 1,162,937 $ 649,508 $ 3,360,168 $ 1,923,265
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Cash flow
from
operations $ 1,904,116 $ 1,858,776 $ 5,940,076 $ 4,621,218
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EBITDA/share $ 0.087 $ 0.083 $ 0.258 $ 0.200
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Cash flow
from
operations/
share $ 0.073 $ 0.074 $ 0.230 $ 0.183
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Net income/
share $ 0.045 $ 0.026 $ 0.130 $ 0.076
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Debt
outstanding
net of cash
reserves $ 27,973,629 $ 13,928,507 $ 27,973,629 $ 13,928,507
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Shareholders'
equity $ 41,507,445 $ 36,832,084 $ 41,507,445 $ 36,832,084
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Average shares
outstanding,
net 26,030,696 25,215,871 25,882,552 25,215,871
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For the six months ending June 30, 2005, consolidated cash flow from operations was $0.23 per share, EBITDA was $0.258 per share and net income was $0.13 per share, as compared to $0.183 of consolidated cash flow from operations per share, $0.20 of EBITDA per share and $0.076 of net income per share for the same period last year.

For the three months ending June 30, 2005, Glacier earned $1.9 million of consolidated cash flow from operations on revenue of $13.1 million, as compared to $1.9 million on revenue of $10.2 million for the three months ended June 30, 2004. Glacier's EBITDA was $2.3 million and net income was $1.2 million for the quarter, as compared to EBITDA of $2.1 million and net income of $0.7 million for the same period last year. The increase in EBITDA was offset by higher interest expense.

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, depreciation and amortization (EBITDA) and EBITDA 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 depreciation, amortization, future income taxes, non-controlling interest, losses on the disposal of assets and non-cash interest.

Operating Performance

Glacier's year-to-date revenue and cash flow continued to grow compared to last year as a result of stronger operating performance and the acquisition of the Community Newspaper Group operations from March 2004 to February 2005 and CD-Pharma Interactive Medical Productions Ltd. in January 2005. All of Glacier's divisions are ahead of last year on a year to date EBITDA basis.

Western Producer Publications and Farm Business Communications experienced some advertising revenue shifting from the second quarter to the first quarter of 2005, as some advertisers ran advertising campaigns earlier than expected. This revenue shifting resulted in lower second quarter performance compared to first quarter performance on a year over year basis. Year-to-date, however, both divisions generated solid revenue growth over last year. The second quarter performance does not appear to be indicative of any change in revenue prospects - it appears to be largely a factor of month-to-month revenue timing within the first half of the year, as well as other factors described following. Glacier expects to continue to be able to achieve strong operating performance.

WPP launched a new magazine called Acreage Life in the second quarter. The magazine is targeted to middle to higher income acreage owners across Western Canada and Ontario. While the advertising response was strong for the new magazine, start-up costs and operating expenses resulted in a net loss being incurred for the quarter by the publication. Management is satisfied with the progress of the magazine made to date. WPP also incurred other one-time labour related expenses during the quarter.

Both STP and the Community Newspaper Group generated EBITDA growth in the second quarter compared to last year. STP's renewal and acceptance rates continued to show improvements. Rationalization, efficiency and general improvement efforts in the Community Newspaper Group resulted in higher revenue and profitability compared to last year.

Due to seasonal factors, the second quarter is typically slower than the first quarter for all of Glacier's operations except Specialty Technical Publishers. As a result, a) absolute revenue and profits are typically lower and b) the operations acquired subsequent to the second quarter of 2004 contributed lower profit to Glacier's second quarter in 2005 relative to their expected annual contribution.

Acquisition of Madison Publishing

As previously announced, Glacier acquired substantially all of the Madison Publishing Group on July 6, 2005. The purchase price for Madison Publishing was $22.3 million before minority interests and debt outstanding at closing, plus an adjustment for working capital and the net value of a real estate property. The consideration paid was a combination of Glacier common shares issued at $2.25 per share and cash. Madison Publishing had revenue of $14.7 million and normalized EBITDA of $2.65 million for the twelve months ending February 28, 2005.

Madison Publishing is comprised of two operating divisions: 1) a group of community newspapers and related publications in Whistler, Squamish, Lillooet, and the Sunshine Coast (Sechelt and Powell River), which are located in the coastal areas adjacent to Vancouver, British Columbia and 2) the Business in Vancouver Media Group ("BIVMG"), which publishes Business in Vancouver (a weekly business newspaper) and related specialty magazines, the Western Investor (a commercial and industrial real estate publication), the Employment Paper, the Better Business Bureau Pages (a telephone directory) and the Visitor's Choice tourist magazines. The BIVMG publications are primarily based in the Vancouver area, except for the Western Investor which is distributed across western Canada. Madison Publishing had revenue of $14.7 million and normalized EBITDA of $2.65 million for the twelve months ending February 28, 2005.

As a result of the acquisition, Glacier's newspaper and trade publications now have a combined distribution of approximately 3.0 million copies.

Madison Publishing fits with Glacier's strategy of expanding in the North American information communications market through two core business segments: 1) the newspaper and trade publication market and 2) the business and professional information market.

Private Placement

Subsequent to the quarter end, Glacier issued by way of private placement 8,333,333 common shares at $2.40 per share for net proceeds of $18.8 million. The proceeds of the financing are intended to be used for further acquisitions and for general corporate purposes, and were used to pay down debt in the interim. The private placement was well received and significantly expanded Glacier's retail and institutional shareholder base.

Glacier expects to have approximately 41.7 million common shares outstanding as a result of the private placement and acquisition. The final amount is subject to the adjustments indicated relating to the Madison Publishing acquisition.

Financial Position

As at June 30, 2005, Glacier had consolidated cash of $4.0 million, current and long-term debt of $32.0 million and working capital of $5.0 million excluding deferred revenue. Deferred revenue relates to funds received for quarterly updates, renewals and subscriptions that have not yet been delivered.

Subsequent to the quarter end, Glacier used proceeds of the private placement to pay down debt to $16.7 million net of cash.

Glacier continues to pursue further acquisition opportunities to complement its existing operations.

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. Investors are cautioned that all forward-looking statements involve risks and uncertainties. Forward-looking statements are based on management's estimates, beliefs and opinions on the date the statements are made. Glacier assumes no obligation to update forward-looking statements if circumstances should change. Additional information on these and other potential factors that could affect Glacier's financial results are detailed in documents filed from time to time with the applicable Canadian securities regulatory authorities.




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