 |
|
||||||
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
|
|
ARCTIC GLACIER INCOME FUND REPORTS RESULTS OF THE ARCTIC GROUP INC. FOR 2001 WINNIPEG, May 30, 2002 - Arctic Glacier Income Fund today reported results for The Arctic Group Inc. for the year ended December 31, 2001. The Arctic Group Inc. was reorganized into the Arctic Glacier Income Fund on March 22, 2002. For the fifth consecutive year, Arctic achieved record levels of sales, earnings before interest, taxes, depreciation, amortization and non-recurring expenses (EBITDA), and funds from operations. Sales increased by 11% to $91.4 million in 2001, compared to $82.1 million in 2000, as a result of strong organic sales growth combined with favorable weather conditions in many of the Company's Canadian and U.S. sales regions during the key summer sales period. EBITDA increased by 16% to $25.1 million in 2001. This is a $3.5 million increase from $21.6 million in 2000 reflecting the strong sales performance combined with the continued focus on efficiency and rationalization of operations. EBITDA margins, as a percent of sales, increased to 27.4% this year compared to 26.3% in 2000. Earnings from operations increased by 204% to $3.8 million in 2001; an increase of $2.5 million compared to $1.2 million in 2000 as a result of the substantial increase in EBITDA. Funds from operations for the year reached $11.9 million, an increase of 24% compared to $9.6 million in 2000. Excluding the non-cash loss (after tax) on debt settlement of $4.1 million and goodwill charges of $1.8 million, net earnings for 2001 were $1.1 million, an improvement of $2.1 million compared to a loss of $1.0 million in 2000. This is equivalent to net earnings of $0.14 per unit in 2001, an improvement of $0.32 compared to a loss of $0.18 per unit in 2000. The improvement resulted from sales growth and improved margins. The net loss for 2001 was $4.8 million or $0.84 per unit, compared to $2.9 million or $0.54 per unit in 2000, primarily attributable to the non-cash debt settlement expenses and other non-recurring costs that were incurred. Per unit amounts have been adjusted to reflect the exchange of six common shares of The Arctic Group Inc. for one Fund unit on March 22, 2002. Robert Nagy, Chairman and CEO of the Arctic Glacier Income Fund stated: "During 2001 we continued to make significant progress in improving the efficiency of our operations. Although we are reaching the final stages of a multi-year program of rationalizing acquired operations, we remain focused on the continued improvement of operations in our existing markets. One of our key objectives has been to establish sufficient market share to achieve the critical mass necessary to realize significant operating synergies. The Arctic business model is sound, our annual cash flows are strong and reliable, and we will continue to take advantage of opportunities as they arise. Our recent reorganization into an income trust has substantially reduced debt and strengthened our financial position, and it provides an enhanced platform for growth. Looking into the future, we continue to see opportunities for growth and improved efficiencies." Arctic Glacier Income Fund, through its operating company, Arctic Glacier Inc., is a leading producer, marketer and distributor of high-quality packaged ice to consumers in Canada and the United States under the brand name of Arctic Glacier Premium Ice. Arctic Glacier operates 17 production plants and 32 distribution facilities across Canada and the central United States servicing 35,000 retail accounts. Arctic Glacier Income Fund trust units are listed on the Toronto Stock Exchange under the trading symbol AG.UN. There are 15.65 million trust units outstanding. This document contains forward-looking statements, which are subject to certain risks, uncertainties and assumptions. A number of factors could cause actual results to differ materially from the results discussed in these forward-looking statements, and there is no assurance that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as at the date of this document, and the Fund assumes no obligation to update or revise them, either publicly or otherwise, to reflect new events, information or circumstances. For further information, call Arctic Glacier Inc. TOLL FREE at 1-888-573-9237 or visit Arctic Glacier’s Web Site at www.arcticglacierinc.com. (Signed) The Toronto Stock Exchange does not approve or disapprove of the adequacy or accuracy of this release. |