Q3 - EBITDA More Than Doubles To A Record $19.4 Million
November 25, 1999
WINNIPEG, MANITOBA--
Mr. Robert Nagy, Chairman reports
The Arctic Group Inc. is pleased to announce record revenue and
operating performance for the third quarter and the fiscal year to
date.
Revenue for the third quarter grew to $34.8 million. Year to date
revenue increased 69 percent to $64.9 million. EBITDA for the
third quarter was $13.5 million. EBITDA year to date of $19.4
million is more than double that achieved in the first nine
months of last year. Net income for the year to date increased to
$5.4 million or $.15 per share (basic).
EBITDA for the 9 month period ended September 30, 1999 was $.54
per share (basic).
EBITDA performance as a percentage of revenue for the third
quarter increased to 39 percent and year to date EBITDA
performance is 30 percent. Both the quarter and year to date
EBITDA Margin results represent an improvement of 6 percentage
points over the identical periods in 1998.
/T/
3 months ended Sept. 30 9 months ended Sept. 30
1999 1998 1999 1998
($000's) ($000's)
Revenue 34,861 28,241 64,927 38,531
EBITDA 13,495 9,350 19,400 9,178
EBITDA Margin 39% 33% 30% 24%
(% of Revenue)
/T/
The Company's focus on improving operating performance in our
business units has been very successful as is evidenced by the
Company's year to date 25 percent improvement in EBITDA Margins,
increasing EBITDA Margins from 24 percent to 30 percent. The
Company will continue to create shareholder value through reducing
overhead, increasing production efficiencies and rationalization
of distribution systems.
The Arctic Group will continue to assess acquisition opportunities
with a continued geographic focus. The Company completed 4
acquisitions in the third quarter bringing the total to 12 for the
current fiscal year. The Company's annual run rate is in excess
of $80 million.
The Company is well capitalized to fund its operations and growth
over the next year. At the end of the third quarter, the Company
has credit facilities of over $30 million available in addition to
working capital of $18 million.
As noted in earlier quarterly reports the Company has changed its
fiscal year end to correspond with the calendar year. The change
of year end has created differences in the months included in the
historical comparative results contained in the quarterly
financial statements released today. The previous table and
comments relate to Revenue and EBITDA for the identical period in
1999 and 1998 respectively. This presentation provides the
reader with a more meaningful comparison of the improvement of
operations year over year.
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
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
The Arctic Group Inc.
1-888-573-9237
www.arcticgroup.com
The Alberta Stock Exchange has not reviewed and does not approve
or disapprove of the adequacy or accuracy of this release. |
