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ARCTIC GROUP REPORTS STRONG 1997 YEAR-END RESULTS The Arctic Group Inc. (AGP:ASE) recorded strong growth for the year ended April 30, 1997 reporting earnings before income taxes of $430,133, an increase of 64.8% over the previous year, President Robert J. Nagy announced today. Sales revenues were $5,345,004 for the year ended April 30, 1997, compared to sales of $3,741,456 in the previous year, reflecting the acquisition of the Alberta Ice Co. Ltd. at the beginning of fiscal 1997. Based in Winnipeg, Manitoba, the Company produces packaged ice
for both retail and industrial needs as well as distributing bottled
water products. The Arctic Group has progressed with a strong strategy
of acquisitions and consolidation in the North American ice industry.
The Company currently has In addition, subsequent to the April 30, 1997 year end, the Company signed Letters of Intent to acquire Crystal Ice, an ice production and distribution company in Regina, Saskatchewan, as well as Host Ice, the Company's first U.S. acquisition, with five distribution centres in Texas and New Mexico. Operating cash flow amounted to $860,277 resulting in operating cash flow per share of $0.09. Net earnings after income taxes of $273,813 during the year ended April 30, 1997 resulted in net earnings per share of $0.03 (1996 - $226,634, earnings per share $0.04). Per share amounts are based on the weighted average number of common shares issued and outstanding during the years, which increased to 10,096,941 in 1997 from 5,635,707 in 1996. Shareholders' equity increased by $2,212,535 for fiscal 1997 as a result of a combination of conversion of debt to equity by shareholders and affiliated companies, conversion of preferred shares of subsidiaries to equity, proceeds of the Initial Public Offering and operating income. President Robert Nagy said that annualized sales, on completion of the latest acquisitions, will top $15,000,000. He further noted that The Arctic Group is continuing to identify strategic acquisition candidates in North America as part of its long-term corporate strategy. "The April 30, 1997 operating year produced some very gratifying results, " Mr. Nagy said. "We believe that our rate of growth will accelerate because of the quality of people we will attract, the format of our acquisition strategy, and the growing interest of forward-looking owners of ice businesses in joining a strong goal oriented organization." For further information, call The Arctic Group TOLL FREE at 1-888-573-9237. (Signed) The Alberta Stock Exchange has not reviewed and does not approve or disapprove of the adequacy or accuracy of this release. |