GVIC Communications Inc.

March 31, 2006 21:22 ET

GVIC Reports 2005 Results

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 31, 2006) - GVIC Communications Inc. ("GVIC" or the "Company") reported cash flow, earnings and revenue for the year ended December 31, 2005.

For the year ended December 31, 2005, GVIC generated $4.6 million of cash flow from operating activities (before changes in non-cash operating accounts), EBITA of $4.2 million and net income of $3.7 million on revenue of $15.8 million. This compares to $4.8 million of cash flow from operations, EBITA of $4.6 million and net income of $2.5 million on revenue of $14.9 million for the same period last year.

GVIC earned cash flow from operations per share of $0.012, EBITA per share of $0.011 and net income per share of $0.010 for the year ended December 31, 2005 as compared to cash flow from operations per share of $0.012, EBITA per share of $0.012 and net income per share of $0.007 for the same period last year.

GVIC's core product is The Western Producer newspaper which is published weekly and is the largest paid circulation agricultural publication in Canada. Readers can subscribe to the newspaper or purchase it at selected newsstands. In addition to weekly coverage of agricultural news and policy, The Western Producer provides readers with technical information and an extensive package of specialty information through a variety of value-added supplements, magazines and inserts.

During the year, the Company launched a new magazine called Acreage Life in the spring of 2005. This magazine is directed at acreage owners in Canada. Acreage Life provides practical, informative and entertaining content about rural life for acreage owners who live close to an urban center and who do not rely on the land as a source of income. Acreage Life creates the opportunity for national companies currently advertising in The Western Producer to market smaller equipment lines not intended for commercial farming operations. It is also attractive to other "lifestyle" advertisers who can target middle to upper income non-urban acreage owners. While Acreage Life was well received by both readers and advertisers, and management is pleased with its progress to date, the publication incurred a net loss in its first year of publication.

The Company is making an ongoing effort to provide necessary information to farmers and ranchers regarding useful practices in order to help them in their day to day activities. The need for advertisers' products remains strong in especially in difficult times, as the types of seed, fertilizers, pesticides, efficient farm machinery and other products are of critical importance to making the most of adverse conditions.

To supplement the consolidated financial statements presented in accordance with Canadian generally accepted accounting principles (GAAP), Glacier 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) and earnings before interest, taxes and amortization (EBITA), which are not alternatives to GAAP financial measures. Management focuses on operating cash flow per share as the primary measure of operating profitability, free cash flow and value. EBITA per share is also an important measure as the Company has low ongoing capital expenditures.

As at December 31, 2005, GVIC had cash of $5.5 million and working capital of $7.8 million excluding deferred revenue. Deferred revenue relates to funds received for subscriptions that have not yet been fulfilled.

About the Company: GVIC Communications Inc. is an information communications company focused on the provision of essential information and related services.

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. The Company assumes no obligation to update forward-looking statements if circumstances should change. Additional information on these and other potential factors that could affect the Company's financial results are detailed in documents filed from time to time with the applicable Canadian securities regulatory authorities.

Contact Information

  • GVIC Communications Inc.
    Mr. Orest Smysnuik
    (604) 708-3264