Glacier Ventures International Corp.
TSX : GVC

Glacier Ventures International Corp.

November 08, 2005 19:31 ET

Glacier Reports Third Quarter Results

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 8, 2005) - Glacier Ventures International Corp. (TSX:GVC) ("Glacier") reported revenue, cash flow and earnings for the period ending September 30, 2005.

Highlights

- Cash flow from operations per share grew 19.4% for the nine months ending September 30, 2005 compared to the same period last year;

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

- 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.

Operating Results

For the nine months ending September 30, 2005, Glacier earned $7.9 million of consolidated cash flow from operations on revenue of $43.7 million, as compared to $5.5 million on revenue of $30.1 million for the nine months ended September 30, 2004. Glacier's EBITDA was $8.9 million and net income was $4.2 million for the period, as compared to EBITDA of $6.2 million and net income of $2.0 million for the same period last year.



-----------------------------------------------------------------------
3 Months 3 Months 9 Months 9 Months
September 30, September 30, September 30, September 30,
2005 2004 2005 2004
-----------------------------------------------------------------------
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Revenue $ 15,484,572 $ 9,238,441 $ 43,725,687 $ 30,124,351
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EBITDA $ 2,206,728 $ 1,106,351 $ 8,889,737 $ 6,154,738
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Net income $ 889,140 $ 48,565 $ 4,249,308 $ 1,971,830
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Cash flow
from
operations $ 1,935,382 $ 862,021 $ 7,912,958 $ 5,483,238
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EBITDA/share $ 0.056 $ 0.043 $ 0.291 $ 0.243
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Cash flow
from
operations/
share $ 0.049 $ 0.034 $ 0.259 $ 0.217
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Net income/
share $ 0.022 $ 0.002 $ 0.139 $ 0.078
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Debt
outstanding
net of cash
reserves $ 18,993,174 $ 16,120,433 $ 18,993,174 $ 16,120,433
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Shareholders'
equity $ 75,147,890 $ 37,421,762 $ 75,147,890 $ 37,421,762
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Average
shares
outstanding,
net 39,747,171 25,433,746 30,554,878 25,289,026
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-----------------------------------------------------------------------


For the nine months ended September 30, 2005, cash flow from operations per share grew 19.4% to $0.259 compared to the same period last year, EBITDA per share grew 19.8% to $0.291 and net income per share grew 78.2% to $0.139.

Per share growth levels were reduced by the increase in number of shares outstanding as a result of the July 2005 private placement. Glacier raised additional capital to be well positioned for acquisition opportunities, and is currently pursuing a number of these. This capital was not required to fund the Madison Publishing or prior acquisitions.

For the three months ending September 30, 2005, Glacier earned $1.9 million of consolidated cash flow from operations on revenue of $15.5 million, as compared to $0.9 million on revenue of $9.2 million for the three months ended September 30, 2004. Glacier's EBITDA was $2.2 million and net income was $0.9 million for the quarter, as compared to EBITDA of $1.1 million and net income of $0.05 million for the same period last year.

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 grew 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, CD-Pharma Interactive Medical Productions Ltd. in January 2005 and Madison Publishing in July 2005. All of Glacier's divisions are ahead of last year on a year to date EBITDA basis.

Revenues at Western Producer Publications were stronger in the third quarter, primarily as a result of additional advertising promotions run by major advertisers as well as strong special supplement advertising. Certain categories of classified advertising also increased during the third quarter. Revenues at Farm Business Communications were also stronger due to increased spending activity from major advertisers.

Specialty Technical Publishers continues to show improvements in its core renewal and acceptance rates and develop new sources of revenue. A contract has been signed with US Legal Forms, Inc., one of the largest suppliers of legal forms in the United States, giving the division the exclusive right to market USLR's products. There is a significant market for legal forms in the United States.

Results at the Community Newspaper Group continue to be strong as both revenue and EBITDA are ahead of last year. Rationalization, efficiency and general improvement efforts in the Community Newspaper Group also contributed to higher profitability compared to last year. The Madison Publishing Group performed well in the quarter. The majority of the normalization improvements described in the July 2005 Madison Publishing transaction information circular have been achieved.

Madison Publishing Acquisition

During the third quarter Glacier acquired substantially all of the Madison Publishing Group, which operates 1) a group of community newspapers in Whistler, Squamish, Lillooet, and the Sunshine Coast, located in the coastal areas adjacent to Vancouver, British Columbia and 2) the Business in Vancouver Media Group, which primarily publishes in the Vancouver area. The purchase price for Madison Publishing was $22.3 million before minority interest 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.

Private Placement

Also in the third quarter, 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 primarily intended for future acquisitions, and were used to pay down debt and general corporate purposes in the interim. The private placement was well received and significantly expanded Glacier's retail and institutional shareholder base.

Financial Position

As at September 30, 2005, Glacier had consolidated debt net of cash on hand of $19.0 million and working capital of $3.4 million excluding deferred revenue. Deferred revenue relates to funds received for quarterly updates, renewals and subscriptions that have not yet been delivered.

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