Click here to close now.




















Welcome!

News Feed Item

Glacier Reports Third Quarter Results

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/13/12 -- Glacier Media Inc. (TSX:GVC) ("Glacier" or the "Company") reported cash flow, earnings and revenue for the three and nine months ended September 30, 2012.


Summary Results

----------------------------------------------------------------------------
                                      Three      Three       Nine       Nine
(thousands of dollars                months     months     months     months
 except share and per share           ended      ended      ended      ended
 amounts)                         30-Sep-12  30-Sep-11  30-Sep-12  30-Sep-11
----------------------------------------------------------------------------
Revenue                             $78,245    $61,955   $246,054   $194,375
Gross profit                        $24,013    $22,192    $82,440    $73,067
Gross margin(3)                       30.7%      35.8%      33.5%      37.6%
EBITDA(1)                            $9,815    $10,572    $37,823    $36,585
EBITDA margin(1)                      12.5%      17.1%      15.4%      18.8%
EBITDA per share(1)                   $0.11      $0.12      $0.42      $0.41
Interest expense, net                $1,304     $1,002     $4,488     $3,589
Net income attributable to                                                  
 common shareholders before non-                                            
 recurring items(1)(2)(4)            $2,855     $4,211    $12,321    $15,982
Net income attributable to                                                  
 common shareholders before non-                                            
 recurring items per                                                        
 share(1)(2)(4)                       $0.03      $0.05      $0.14      $0.18
Net income attributable to                                                  
 common shareholders                 $5,183     $3,721    $13,441    $13,510
Net income attributable to                                                  
 common shareholders per share        $0.06      $0.04      $0.15      $0.15
Cash flow from                                                              
 operations(1)(2)(4)                 $7,934     $9,880    $32,724    $33,699
Cash flow from operations per                                               
 share(1)(2)(4)                       $0.09      $0.11      $0.37      $0.37
Investment capital expenditures      $2,145     $2,953    $10,829     $5,049
Sustaining capital expenditures        $522     $1,126     $1,702     $3,314
Total assets                       $632,626   $513,222   $632,626   $513,222
Debt net of cash outstanding                                                
 before deferred financing                                                  
 charges and other expenses        $131,482    $91,971   $131,482    $91,971
Equity attributable to common                                               
 shareholders                      $350,773   $332,108   $350,773   $332,108
Dividends paid(5)                    $2,681     $2,681     $5,362     $2,681
Dividends paid per share(5)           $0.03      $0.03      $0.06      $0.03
Weighted average shares                                                     
 outstanding, net                89,358,410 89,383,682 89,358,410 90,204,930
----------------------------------------------------------------------------

Notes:

(1) Refer to "Non-IFRS Measures" section of the financial statements.
(2) Third quarter 2012 excludes $0.2 million of restructuring expense, $0.6
    million of transaction and transition costs, and $3.1 million of other
    income.
(3) Gross profit for these purposes excludes depreciation and amortization.
(4) For non-recurring items excluded in the prior period, refer to
    previously reported financial statements.
(5) Glacier commenced paying semi-annual dividends in 2011. The nine months
    ended September 30, 2011 represents only one dividend payment.

Highlights

--  Consolidated revenue increased 26.3% to $78.2 million for the three
    months ended September 30, 2012 from $62.0 million for the same period
    in the year prior; 
--  EBITDA for the third quarter of 2012 decreased 7.2% to $9.8 million from
    $10.6 million in the same period in the prior year; 
--  Glacier's consolidated cash flow from operations (before changes in non-
    cash operating accounts) for the three months ended September 30, 2012
    decreased 19.7% to $7.9 million from $9.9 million in the same period in
    the year prior; 
--  Glacier's net income attributable to common shareholders was $5.2
    million compared to $3.7 million in the same period in the prior year;
    and 
--  The Company repaid $6.0 million of debt during the quarter. 

Review of Operations

Consolidated revenue grew 26.3% during the third quarter of 2012 compared to the same period last year as a result of organic growth in a variety of operations, the November 2011 acquisition of the Postmedia British Columbia community media assets, and the acquisition of control of one of Glacier's community media partnerships in April 2012. Consolidated EBITDA decreased $0.8 million or 7.2% for the quarter.

On a same-store basis, community media revenue was softer for the quarter compared to last year and trade and business and professional revenue was stronger. Revenues and EBITDA were affected by weaker economic conditions and related national advertising softness. Consolidated EBITDA was also affected by operating resource expense investments made to strengthen some of the community media assets acquired from Postmedia, as well as operating expense investments made in a new digital real estate information business. Excluding a small loss for the quarter relating to the Postmedia community media assets acquired and the new digital real estate information costs, consolidated EBITDA was slightly ahead of last year. Overall, revenues, profitability and cash flow remain strong.

Sales Performance

Glacier's trade and business and professional information operations continued to deliver strong growth, with revenue increases generated across a wide variety of verticals.

While some revenues have been adversely affected by economic conditions, a number of growth initiatives are being pursued and are generating strong sales results.

In particular, Glacier's trade information and business and professional information operations enjoyed growth in the energy, agricultural, environmental risk, environmental compliance networks, medical and financial information sectors. Continued softness was experienced in several trade verticals as a result of economic conditions.

In addition to core business information print and digital sales, management is focused on strategies geared to offer customers an increasingly richer value proposition through both enhanced information content and richer and more robust product solutions that digital platforms and technology can provide, as well as enhanced customer targeting and marketing effectiveness for advertisers, amongst other things.

Digital revenues represent more than a quarter of Glacier's trade information and business and professional information revenue and are growing steadily. Significant focus and related investment will continue to be made to enhance Glacier's digital trade and business and professional information verticals, through both organic development and the acquisition of new businesses. These acquisitions will be targeted to expand the markets that Glacier covers, expand the breadth of information products and marketing solutions provided, and to expand Glacier's digital media staff, technology and other relevant resources.

Overall, the business information operations and various market sectors offer attractive opportunities for growth with high levels of profitability.

Glacier's community media operations experienced weaker revenue performance in a number of markets during the quarter, primarily the result of softer national advertising. The Prairie operations continued to generate strong revenue and profitability. The B.C. markets were affected by weaker economic conditions in Victoria, the Lower Mainland and a variety of Vancouver Island and northern Interior markets. National advertising revenues were weaker in most markets, which appear to be the result of cautiousness due to economic conditions, as financial and government revenues have been significantly lower. Digital competition is also affecting national print spending levels, although this trend is primarily occurring in the larger urban markets. Local advertising revenues were resilient in both the existing markets where Glacier has operated, and some of the Lower Mainland and Vancouver Island markets acquired from Postmedia, although the Victoria market continues to struggle.

Operating expense investments are being made to improve the strength and resources of the community media assets acquired from Postmedia in order to increase competitiveness and sales effectiveness. The operations had been weakened by significant cost cutting incurred over many years under previous ownership due to the high debt levels of these owners. The costs of the operating investments have been partially offset by savings in overhead costs as a result of the integration of the operations with Glacier's existing infrastructure. The operating expense investments resulted in stronger local advertising sales and classified sales in the third quarter. While it will take time to strengthen and revitalize the operations, it is encouraging that direct revenue increases are being realized as investments are being made. Digital investments are also being made to exploit the digital revenue opportunities of the larger markets in which the community media operations acquired are located.

While economic and market challenges have affected the community media operations, management believes that these businesses remain strong and will continue to generate solid cash flow given the nature of the markets in which Glacier operates and the nature of local community media. This cash flow can be used to fund growth through both internal investment and acquisition of digital business information and digital community media assets, as well as repayment of debt, payment of dividends and repurchase of shares.

Glacier's small market community media operations offer a unique selling proposition and competitive advantage through the local information that they provide, of which they are a primary source, and the primary marketing channel they offer to advertisers. The value of Glacier's local community content is being provided to Glacier's readers in print and online, by tablet and mobile smartphone platforms. A number of new digital sales products and strategies have been introduced, and new digital sales and product staff are being hired and technology investments are being made to drive these growth initiatives. Given that the demand for local community information is expected to exist for the long term, Glacier expects to be able to monetize the information and marketing value through advertising and other revenue sources for the long term. As 85% of Glacier's local newspaper distribution is free, this also provides for a more durable reach of readership for advertisers over time wherein total market coverage can always be provided. The attributes of these community media operations are significantly different and stronger than larger metropolitan paid daily newspapers, which have been reflected in the financial performance of Glacier's community media group.

Profit Performance

As stated, consolidated EBITDA decreased $0.8 million or 7.2% to $9.8 million for the quarter compared to $10.6 million for the third quarter of 2011. While revenues showed a significant increase on an overall dollar basis due to acquisitions, the economic environment, related softness in national advertising, and the operating expense investments made, resulted in lower EBITDA compared to last year. The community media operations acquired from Postmedia are historically weaker in the first and third quarter, and this annual cycle was exacerbated by the weaker economy and national advertising softness. The Postmedia community media assets acquired are historically profitable in the second and fourth quarters. The decrease in EBITDA was also the result of operating resource expense investments described. As stated, consolidated EBITDA was slightly ahead of last year excluding a small loss for the quarter relating to the Postmedia community media assets acquired and the digital real estate information costs.

Glacier's consolidated EBITDA margin decreased to 12.5% for the quarter from 17.1% for the same quarter last year as a result of the softness in overall community media revenues and the lower margins of the Postmedia assets acquired. Management will seek to improve the margins and profit performance of the assets acquired through improved print and digital sales effectiveness, cost efficiency and other initiatives.

Cost reduction measures continue to be implemented consistent with management's strategy of maintaining strong product and editorial quality while reducing operating costs where possible through initiatives that do not impact quality, sales capacity or market and competitive positions. Management is being careful to maintain appropriate levels of resources in staff and technology as well as business development in order to facilitate long-term revenue growth.

EBITDA was also impacted by increased operating infrastructure investment made in digital media management, staff, information technology and related resources, as well as other content and quality related areas. The increase in Glacier's consolidated revenue has both allowed this investment to be made and has been in part a result of the digital investments already made. These investments were made consistent with Glacier's complementary media platform and product strategy and business information strategies.

The complementary media platform and product strategy is geared to address both the risks that digital media represents to the traditional print platform and the opportunities digital media offers in Glacier's local community and business and trade information markets. The strategy is based upon the premise that customer utility and value should drive the structuring of platform utilization and product design and functionality. Online, mobile, tablet and other information delivery devices will be fully utilized, while print content and design quality will also be fully maintained. While the digital platforms offer many attractive new opportunities, the print platform continues to offer effective utility to both readers and advertisers. Maintaining strong print products also maintains strong brand image and awareness, which increases the likelihood of success online. Studies of time spent across media platforms and reader satisfaction support the premise of the complementary platform and product strategy. Management expects that customer utility will vary over time and will be affected by what Glacier and other media providers can creatively provide. Management believes that the pursuit of a complementary platform and product strategy will be prudent for the foreseeable future, and will maximize revenue and profit generation.

As indicated, the business information strategies are focused on increasing the value provided to customers through richer content, data and analytic value and deepening the customer decision dependence of Glacier's products and services, thereby moving Glacier's products and services further up the value ladder, with the higher revenue, profitability and recurring cash flow that this value proposition provides.

Financial Position

Glacier's consolidated debt net of cash outstanding before deferred financing charges and other expenses was 2.47x trailing 12 months EBITDA (normalized for the acquisition of control of one of Glacier's community media partnerships) as at September 30, 2012. The Company repaid $6.0 million of debt during the quarter. Glacier's consolidated debt net of cash outstanding before deferred financing charges and other expenses was $131.5 million as at September 30, 2012.

Glacier invested $2.7 million of capital expenditures during the quarter primarily on press facility construction and expansion to accommodate new press equipment, additional production equipment, information technology infrastructure and software. $2.2 million of these capital expenditures were investment capital expenditures, the majority of which relate to the building and installation of a new press facility that is expected to be completed in Q1 2013. The investment will result in lower operating costs, better quality, and new long-term contract based revenues (specifically, Glacier's joint venture operation, Great West Newspapers Limited Partnership, which has secured a contract to print the Edmonton Journal commencing in 2013). The investment capital expenditures are being made to generate direct revenue and cash flow improvements and payback consistent with Glacier's targeted return on investment, as well as quality improvements and other benefits.

Outlook

While economic conditions have impacted some of the community media operations and business information verticals, and digital competition is stronger in the larger community media markets, management expects that growth will continue in Glacier's trade information and business and professional information operations, as well as a variety of community media markets in Manitoba, Saskatchewan, Alberta and parts of British Columbia.

Management will focus in the short-term on a balance of paying down debt, integrating the operations acquired, continuing to develop existing operations, targeting select acquisition opportunities and returning value to shareholders.

Given the strong level of cash flow resulting from operations and the acquisitions indicated, an increasing portion of the Company's cash flow can also be returned to shareholders in the future through increased dividends. The board of directors intends to review the Company's dividend policy at the beginning of 2013. The Company also intends to repurchase shares as deemed attractive and prudent.

As indicated, significant focus and related investment will continue to be made to enhance Glacier's business information verticals, through both organic development and the acquisition of new businesses. These acquisitions will be targeted to expand the markets that Glacier covers, expand the breadth of information products and marketing solutions provided, and to expand Glacier's digital media staff, technology and other relevant resources.

In this regard, management will continue to seek a balance of maintaining debt at manageable levels and delivering growth through both operations and acquisitions. In particular, management will seek to time investment in the acquisition and organic growth opportunities to allow cash flow from operations to be used to pay down the increased borrowings incurred in the fourth quarter of 2011.

Shares in Glacier are traded on the Toronto Stock Exchange under the symbol GVC.

About the Company: Glacier Media Inc. is an information communications company focused on the provision of primary and essential information and related services through print, electronic and online media. Glacier is pursuing this strategy through its core businesses: the local newspaper, trade information and business and professional information markets.

Financial Measures

To supplement the condensed interim consolidated financial statements presented in accordance with International Financial Reporting Standards (IFRS), Glacier uses certain non-IFRS measures that may be different from the performance measures used by other companies. These non-IFRS measures include cash flow from operations (before changes in non-cash operating accounts and non-recurring items), net income attributable to common shareholders before non-recurring items and earnings before interest, taxes, depreciation and amortization (EBITDA), which are not alternatives to IFRS financial measures. Management focuses on operating cash flow per share as the primary measure of operating profitability, free cash flow and value. EBITDA per share is also an important measure as the Company has low ongoing capital expenditures and depreciation and amortization largely relates to acquisition goodwill and copyrights and does not represent a corresponding sustaining capital expense. These non-IFRS measures do not have any standardized meanings prescribed by IFRS and accordingly they are unlikely to be comparable to similar measures presented by other issuers.

Forward-Looking Statements

This news release contains forward-looking statements that relate to, among other things, the Company's objectives, goals, strategies, intentions, plans, beliefs, expectations and estimates. These forward-looking statements include, among other things, statements under the heading "Review of Operations" and the headings "Sales Performance", "Profit Performance", "Financial Position" and "Outlook" and statements relating to the Company's expectations regarding revenues, expenses, cash flows and future profitability, including our expectations that growth will continue in Glacier's business segments, our expectations as to organic revenue and profitability growth, that profitability will continue to improve as the economy recovers, that cost savings will be realized, and that annual dividends are expected to be declared. These forward looking statements are based on certain assumptions, including continued economic growth and recovery and the realization of cost savings, and are subject to 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.

Important factors that could cause actual results to differ materially from these expectations are listed in the Company's Annual Information Form under the heading "Risk Factors" and in the Company's MD&A under the heading "Business Environment and Risks", many of which are out of the Company's control. These factors include, but are not limited to, the ability of the Company to sell advertising and subscriptions related to its publications, foreign exchange rate fluctuations, the seasonal and cyclical nature of the agricultural industry, discontinuation of Department of Canadian Heritage, Canada Periodical Fund, general market conditions in both Canada and the United States, changes in the prices of purchased supplies including newsprint, the effects of competition in the Company's markets, dependence on key personnel, integration of newly acquired businesses, technological changes, and financing and debt service risk.

The forward-looking statements made in this news release relate only to events or information as of the date on which the statements are made. Except as required by law, the Company undertakes no obligation to update or revise publicly any forward- looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

Contacts:
Glacier Media Inc.
Mr. Orest Smysnuik
Chief Financial Officer
604-708-3264

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
In their Live Hack” presentation at 17th Cloud Expo, Stephen Coty and Paul Fletcher, Chief Security Evangelists at Alert Logic, will provide the audience with a chance to see a live demonstration of the common tools cyber attackers use to attack cloud and traditional IT systems. This “Live Hack” uses open source attack tools that are free and available for download by anybody. Attendees will learn where to find and how to operate these tools for the purpose of testing their own IT infrastructu...
Whether you like it or not, DevOps is on track for a remarkable alliance with security. The SEC didn’t approve the merger. And your boss hasn’t heard anything about it. Yet, this unruly triumvirate will soon dominate and deliver DevSecOps faster, cheaper, better, and on an unprecedented scale. In his session at DevOps Summit, Frank Bunger, VP of Customer Success at ScriptRock, will discuss how this cathartic moment will propel the DevOps movement from such stuff as dreams are made on to a prac...
SYS-CON Events announced today that IceWarp will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. IceWarp, the leader of cloud and on-premise messaging, delivers secured email, chat, documents, conferencing and collaboration to today's mobile workforce, all in one unified interface
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
It’s been proven time and time again that in tech, diversity drives greater innovation, better team productivity and greater profits and market share. So what can we do in our DevOps teams to embrace diversity and help transform the culture of development and operations into a true “DevOps” team? In her session at DevOps Summit, Stefana Muller, Director, Product Management – Continuous Delivery at CA Technologies, answered that question citing examples, showing how to create opportunities for ...
With the proliferation of connected devices underpinning new Internet of Things systems, Brandon Schulz, Director of Luxoft IoT – Retail, will be looking at the transformation of the retail customer experience in brick and mortar stores in his session at @ThingsExpo. Questions he will address include: Will beacons drop to the wayside like QR codes, or be a proximity-based profit driver? How will the customer experience change in stores of all types when everything can be instrumented and a...
Red Hat is investing in Tesora, the number one contributor to OpenStack Trove Database as a Service (DBaaS) also ranked among the top 20 companies contributing to OpenStack overall. Tesora, the company bringing OpenStack Trove Database as a Service (DBaaS) to the enterprise, has announced that Red Hat and others have invested in the company as a part of Tesora's latest funding round. The funding agreement expands on the ongoing collaboration between Tesora and Red Hat, which dates back to Febr...
The Internet of Things (IoT) is about the digitization of physical assets including sensors, devices, machines, gateways, and the network. It creates possibilities for significant value creation and new revenue generating business models via data democratization and ubiquitous analytics across IoT networks. The explosion of data in all forms in IoT requires a more robust and broader lens in order to enable smarter timely actions and better outcomes. Business operations become the key driver of I...
SYS-CON Events announced today that DataClear Inc. will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. The DataClear ‘BlackBox’ is the only solution that moves your PC, browsing and data out of the United States and away from prying (and spying) eyes. Its solution automatically builds you a clean, on-demand, virus free, new virtual cloud based PC outside of the United States, and wipes it clean...
Culture is the most important ingredient of DevOps. The challenge for most organizations is defining and communicating a vision of beneficial DevOps culture for their organizations, and then facilitating the changes needed to achieve that. Often this comes down to an ability to provide true leadership. As a CIO, are your direct reports IT managers or are they IT leaders? The hard truth is that many IT managers have risen through the ranks based on their technical skills, not their leadership ab...
A producer of the first smartphones and tablets, presenter Lee M. Williams will talk about how he is now applying his experience in mobile technology to the design and development of the next generation of Environmental and Sustainability Services at ETwater. In his session at @ThingsExpo, Lee Williams, COO of ETwater, will talk about how he is now applying his experience in mobile technology to the design and development of the next generation of Environmental and Sustainability Services at ET...
Cloud and datacenter migration innovator AppZero has joined the Microsoft Enterprise Cloud Alliance Program. AppZero is a fast, flexible way to move Windows Server applications from any source machine – physical or virtual – to any destination server, in any cloud or datacenter, using its patented container technology. AppZero’s container is also called a Virtual Application Appliance (VAA). To facilitate Microsoft Azure onboarding, AppZero has two purpose-built offerings: AppZero SP for Azure,...
WSM International, the pioneer and leader in server migration services, has announced an agreement with WHOA.com, a leader in providing secure public, private and hybrid cloud computing services. Under terms of the agreement, WSM will provide migration services to WHOA.com customers to relocate some or all of their applications, digital assets, and other computing workloads to WHOA.com enterprise-class, secure cloud infrastructure. The migration services include detailed evaluation and planning...
This Enterprise Strategy Group lab validation report of the NEC Express5800/R320 server with Intel® Xeon® processor presents the benefits of 99.999% uptime NEC fault-tolerant servers that lower overall virtualized server total cost of ownership. This report also includes survey data on the significant costs associated with system outages impacting enterprise and web applications. Click Here to Download Report Now!
IBM’s Blue Box Cloud, powered by OpenStack, is now available in any of IBM’s globally integrated cloud data centers running SoftLayer infrastructure. Less than 90 days after its acquisition of Blue Box, IBM has integrated its Blue Box Cloud Dedicated private-cloud-as-a-service into its broader portfolio of OpenStack® based solutions. The announcement, made today at the OpenStack Silicon Valley event, further highlights IBM’s continued support to deliver OpenStack solutions across all cloud depl...