GVIC Communications Inc.

August 14, 2006 18:31 ET

GVIC Reports Second Quarter Results

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 14, 2006) - GVIC Communications Inc. ("GVIC" or the "Company") reported cash flow, earnings and revenue for the quarter ended June 30, 2006.

For the six months ending June 30, 2006, GVIC generated $ 2.6 million of cash flow from operating activities (before changes in non-cash operating accounts), EBITA of $3.8 million and net income of $ 2.4 million on revenue of $9.6 million. This compares to $3.2 million of cash flow from operations, EBITA of $3.0 million and net income of $2.5 million on revenue of $8.6 million for the same period last year.

GVIC generated $0.9 million of cash flow from operating activities (before changes in non-cash operating accounts), EBITA of $1.3 million and net income of $0.8 million on revenue of $4.1 million for the quarter ended June 30, 2006. This compares to $1.2 million of cash flow from operations, EBITA of $1.2 million and net income of $1.2 million on revenue of $4.0 million for the same period last year.

GVIC earned cash flow from operations per share of $0.007, EBITA per share of $0.010 and net income per share of $0.006 for the six months ended June 30, 2006 as compared to cash flow from operations per share of $0.008, EBITA per share of $0.008 and net income per share of $0.006 for the same period last year.

Second quarter and year to date revenue performance was solid, with most categories higher than last year. In particular classified display revenues increased, which is an indicator of healthier market conditions. The decrease in cash flow and cash flow per share is a result of the fact that the Company is recording current income taxes payable for 2006 offset by the stronger performance.

The Company continues to strengthen its new Acreage Life product. Acreage Life is directed at acreage owners in Canada and 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. The magazine 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.

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 June 30, 2006, GVIC had cash of $9.0 million and working capital of $10.4 million excluding deferred revenue. Deferred revenue relates to funds received for subscriptions that have not yet been fulfilled.

GVIC is currently pursuing opportunities to provide shareholders with liquidity.

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. 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.

Contact Information

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