RCTIC GROUP RELEASES 1999 SECOND QUARTER RESULTS
Winnipeg, Manitoba - The Arctic Group Inc. (Alberta AGP) today announced
solid operating results for the second quarter ended June 30th, 1999.
Revenues increased to $22.4 million for the second quarter 1999, up from
$19.9 million for the three months ended July 31st, 1998, the most recent
published comparable quarter.
Robert Nagy, Chairman and CEO stated:
"We are pleased to report that Arctic recorded EBITDA of $7.3 million or
$0.20 per share, on sales of $22.4 million for the three months ended June
30, 1999. This represents an operating ratio of 32% for the quarter, is
ahead of the $7.1 million achieved in the prior year and well above the
performance targets established in the company's business plan.
All of the company's major divisions contributed to the improvement in the
financial results. Second quarter sales increased 13% over last year to
$22.4 million. For the spring, the weather patterns in our markets were
average, though we were able to attain solid volume increases in eastern
Canada. This reflects the investments made to rationalize those markets
and the high level of service which Arctic is committed to provide its
customers."
As noted in earlier releases, the company has changed its reporting cycle
to correspond with the calendar year. As a result, the presentation of the
current year's results for this quarter include the months of April, May
and June. For the comparable quarter in prior years, we had published the
months of May, June and July.
Since July represents the single largest month of activity for Arctic, the
reader should consider this fact when comparing the Company's performance
against prior years. To quantify the information, note that the Company's
internal revenue estimate for July 1999 is in the range of $14 million. As
we move through the balance of this year, the effect of this timing
difference will be eliminated, though the shareholders should consider its
impact on the current quarter.
The Arctic Group Inc. is committed to building an internationally
recognized ice company by focusing on an aggressive strategy of growth
through acquisition and consolidation of the ice industry in North America.
For further information, call The Arctic Group Inc. TOLL FREE at
1-888-573-9237 or visit The Arctic Group's Web Site at
arcticgroup.com.
(Signed) On behalf of the Management and the Board of Directors of The
Arctic Group Inc., Robert Nagy, Chairman and CEO
The Alberta Stock Exchange has not reviewed and does not approve or
disapprove of the adequacy or accuracy of this release.
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