EX-99.1 2 a4696078ex991.txt PRESS RELEASE EXHIBIT 99.1 Glacier Water Announces Second Quarter Results VISTA, Calif.--(BUSINESS WIRE)--Aug. 6, 2004--Glacier Water Services, Inc. (AMEX:HOO) announced results for the quarter ended June 27, 2004. Brian McInerney, Chief Executive Officer of Glacier Water, said, "We are pleased to report increased revenues and earnings from operations for the second quarter and the six months that ended June 27, 2004. We continue to see earnings improvement and we remain committed to returning the Company to profitability." Revenues for the quarter ended June 27, 2004 increased 8.2% to $19,246,000 compared to $17,789,000 for the same quarter a year ago. For the six-month period ended June 27, 2004 revenues increased 7.2% to $36,791,000 compared to $34,322,000 for the same period a year ago. The increase in revenues for both the quarter and the six-month period was primarily the result of the Water Island acquisition, which occurred during the fourth quarter of 2003. The Company's income from operations for the quarter ended June 27, 2004 was $1,724,000, representing a 45.0% improvement of $535,000 from $1,189,000 in the same period last year. For the six-month period ended June 27, 2004, income from operations was $2,453,000 compared to $1,727,000 for the same period last year, representing a $726,000 or 42.0% improvement. The Company's net loss applicable to common stockholders for the quarter ended June 27, 2004 was $182,000, or $0.09 per basic and diluted share, compared to a loss of $659,000, or $0.32 per basic and diluted share, for the same period last year. For the six-month period ended June 27, 2004, the net loss applicable to common stockholders was $1,382,000, or $0.65 per basic and diluted share, compared to a loss of $1,627,000, or $0.66 per basic and diluted share, for the same period last year. With approximately 15,200 machines located in 39 states throughout the United States, Glacier is the leading provider of high quality, low-priced drinking water dispensed to consumers through self-service vending machines located at supermarkets and other retail locations. Statements in this announcement that are not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements with respect to the financial condition and results of operations of the Company which involve risks and uncertainties are detailed further in the filings of the Company with the Securities and Exchange Commission, including, but not limited to, the Company's Annual Report on Form 10-K for the year ended December 28, 2003. FINANCIAL RESULTS GLACIER WATER SERVICES, INC. SECOND QUARTER 2004 Consolidated Statements of Operations (Dollars in thousands, except shares and per share data) (unaudited) Three Months Ended Six Months Ended --------------------- --------------------- June 27, June 29, June 27, June 29, 2004 2003 2004 2003 ---------- ---------- ---------- ---------- Revenues $19,246 $17,789 $36,791 $34,322 Operating costs and expenses: Operating expenses 12,158 10,976 23,833 21,646 Depreciation and amortization 2,590 2,917 5,100 5,878 ---------- ---------- ---------- ---------- Cost of goods sold 14,748 13,893 28,933 27,524 Selling, general and administrative expenses 2,774 2,707 5,405 5,071 ---------- ---------- ---------- ---------- Total operating costs and expenses 17,522 16,600 34,338 32,595 ---------- ---------- ---------- ---------- Income from operations 1,724 1,189 2,453 1,727 Other expenses: Interest expense 1,906 1,788 3,835 3,238 Investment expense -- 28 -- 52 ---------- ---------- ---------- ---------- Total other expense 1,906 1,816 3,835 3,290 ---------- ---------- ---------- ---------- Loss before income taxes (182) (627) (1,382) (1,563) Income tax benefit -- -- -- -- ---------- ---------- ---------- ---------- Net loss (182) (627) (1,382) (1,563) Preferred stock dividends -- 32 -- 64 ---------- ---------- ---------- ---------- Net loss applicable to common stockholders $(182) $(659) $(1,382) $(1,627) ========== ========== ========== ========== Basic and diluted loss per common share: Net loss applicable to common stockholders $(0.09) $(0.32) $(0.65) $(0.66) ========== ========== ========== ========== Weighted average shares used in calculation 2,119,790 2,039,842 2,119,637 2,448,567 CONTACT: Glacier Water Services, Inc. W. David Walters, Chief Financial Officer (760) 560-1111