Q3 ResultsArctic Group Inc (The) - News Release
The Arctic Group releases third quarter results
Arctic Group Inc (The) AGP
Shares issued 36,213,233 2000-11-21 close $0.88
Wednesday Nov 22 2000 News Release
Mr. Robert Nagy reports
The Arctic Group (AGP: TSE) released record breaking results for the third quarter ended Sept. 30, 2000.
Arctic's third quarter includes the summer months of July and August, when demand for its products is at its peak. This quarter was the strongest in the history of the company. Sales, EBITDA (earnings before interest, taxes, depreciation and amortization), operating margins and profitability all reached record levels during the quarter and for the year to date.
Revenue of $37.1-million in the third quarter represents an increase of 6 per cent over the same period last year. Resultant EBITDA was $15.8-million, up 17 per cent over last year's $13.5-million. EBITDA as a percentage of sales (EBITDA margin) improved from 38.7 per cent to 42.7 per cent, an increase of 10.3 per cent.
Overall figures for the nine months ended Sept. 30, 2000, also reflect the strong third quarter. EBITDA grew by 16.1 per cent from 1999, to $22.5-million, on a sales increase of 8.5 per cent, to $70.5-million. EBITDA margins climbed to 32.0 per cent versus 29.9 per cent last year.
Robert Nagy, chairman and chief executive officer stated:
"This record performance was achieved in spite of unseasonably cool and wet weather in a number of key markets. The ability to increase our sales, and more importantly our margins, despite reduced demand validates our strategy of building an international brand and taking advantage of operational synergies. Our geographic diversity helps to reduce the risk of being adversely affected at the corporate level by inclement weather in any single region.
"The Arctic Group's plan to advance its branding and licensing initiatives has continued in 2000. Arctic glacier premium ice has been introduced in all our markets this year. In the last quarter, Arctic announced its second licensing agreement with a major U.S. producer servicing the Midwest. Under the licensing program, qualified manufacturers that meet stringent quality standards may package their product under the brand name of Arctic glacier premium ice.
The other major tenet of Arctic's strategy has also progressed significantly during the last three months. The Arctic Group Inc., has now completed development of an in store ice production system known as the ice perfection system. This machine filters the water, produces the ice, packages the product and merchandises the brand, all at the point of sale. Placements of the ice perfection system are scheduled to begin in the fourth quarter of this year. This system, together with the licensing program, will provide Arctic the opportunity to grow its brand outside its traditional geographic markets with limited capital investment.
We are pleased with the progress we have made toward our goal of becoming an internationally recognized company and a leader in our industry during the year."