GVC.TO - Glacier Media

[gary17]

Thank you for sharing.

 

I really want to pull the trigger on this - but I just don't have enough clarity on the tax issue - and if it turns out to be negative, that could affect their profitability further as that's the strategy employed previously. 

 

We will see -

[bcsip]

When do the quarter results come out?

[Phaceliacapital]

27th !

[OracleofCarolina]

27th !

 

They came out yesterday

 

http://www.sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00005993

[gfp]

I see the dividend announcement, but the quarterly release looks like Q3 2013 was re-released in error?  Is that right?

[argonaut]

In the US, we can use a service like secfilings.com to automatically receive notice of public filings...Does anyone know of a similar free service to receive Sedar alerts?

 

Parsad, feel free to move this if it belongs in a different forum.

 

Thanks,

 

Marc

[matjone]

I set up an alert on changedetection for a sedar filing and it worked.  Not sure if this is reliable since I've only tried it once.  Not sure why they don't have RSS feeds.

[argonaut]

Very interesting ability. I will setup for Glacier and see what happens. I've setup a Google alert but that catches a bit too broad swath of info.

 

Thanks Matjone!

[Saj]

"In the US, we can use a service like secfilings.com to automatically receive notice of public filings...Does anyone know of a similar free service to receive Sedar alerts?"

 

I maintain a site at www.conferencecalltranscripts.org that does exactly this. It does both Sedar and Edgar, and it's free.

[argonaut]

Thanks Saj. When setting it up, what is the difference between Free and All for the transcripts? Do some notifications and or transcripts cost?

[Saj]

The notifications are free, but some transcripts cost money, so that option lets you toggle whether you want to get notified only if a free transcript is available, or if any transcript is available.

[argonaut]

4th Q report today...very slow decreases (revenue, income etc) across the board...and then a major impairment charge of 79 mm...I would be interested to know others' analysis of the report...they did pay down over 20MM of their debt which is very nice.

 

http://online.wsj.com/article/PR-CO-20140327-914972.html

[OracleofCarolina]

I liked that they paid some debt down, they are continuing to sell real estate, they bought some shares back, and the business information operations seems to be picking up steam.

 

The big unknown for me is the possibility of a large tax payment

[gary17]

 

If the tax issue is already priced in then this seems like a very low risk bet at this point... imo

 

I liked that they paid some debt down, they are continuing to sell real estate, they bought some shares back, and the business information operations seems to be picking up steam.

 

The big unknown for me is the possibility of a large tax payment

[Parsad]

I liked that they paid some debt down, they are continuing to sell real estate, they bought some shares back, and the business information operations seems to be picking up steam.

 

The big unknown for me is the possibility of a large tax payment

 

I think much of that is built into the price...not unlike BAC's legacy issues were a couple of years ago.  Granted...this is a dying business, not one that is going to grow a lot in the future other than through acquisitions or other lines of business.  Cheers!

[Mephistopheles]

Does anyone know why there is a discrepancy between JV vs. Proportionally Consolidated accounting for the "net income before non-recurring items" line item? I was under the impression that both should have the same net income. Does it have something to do with the way non-recurring items are accounted for in JV vs. PC?

[Otsog]

Tim McElvaine joins the Board of Directors

 

 

 

CheckCode.pdf

[phil_Buffett]

Tim McElvaine joins the Board of Directors

 

 

 

 

 

thanks. tim is a great guy. nice  :)

[Guest 50centdollars]

Decent Q1 results

 

Summary Results

 

Results are reported below on an adjusted basis to include the Company's share of the results of its joint ventures. Management bases its operating decisions and performance evaluation utilizing these results.

 

(thousands of dollars) For the three months ended March 31,

except share and per share amounts 2014 (1)(5) 2013 (1)(5)

Revenue $76,895 $76,840

EBITDA (1) $8,927 $7,889

EBITDA margin (1) 11.6% 10.3%

EBITDA per share (1) $0.10 $0.09

Net income attributable to common shareholders before non-recurring items (1)(2)(3) $1,941 $540

Net income attributable to common shareholders per share before non-recurring items (1)(2)(3) $0.02 $0.01

Cash flow from operations (1)(2)(3) $9,184 $8,261

Cash flow from operations per share (1)(2)(3) $0.10 $0.09

Debt net of cash outstanding before deferred financing charges $101,739 $120,907

Dividends paid (4) $1,838 -

Dividends paid per share (4) $0.02 -

Weighted average shares outstanding, net 89,083,105 89,243,102

Notes:

(1) Refer to "Non-IFRS Measures" section of the financial statements.

(2) 2014 excludes $0.8 million of restructuring expense, $0.1 million of transaction and transition costs and $0.5 million of other income.

(3) For non-recurring items excluded in the prior period, refer to previously reported financial statements.

(4) Dividends in 2014 and 2013 total $0.08 per share, paid quarterly. Dividends in 2013 were declared in March and paid in April.

(5) These results are presented on an adjusted basis to include the Company's share of the results of its joint ventures, as management bases its operating decisions and performance evaluation on the adjusted results.

Key Financial Highlights (1)

 

For the quarter ended March 31, 2014, Glacier's adjusted consolidated revenues increased $0.1 million to $76.9 million from $76.8 million for the same quarter in the prior year;

For the period ended March 31, 2014, adjusted consolidated earnings before interest taxes, depreciation and amortization (EBITDA) increased 13.2% to $8.9 million from $7.9 million for the same period in the prior year;

Adjusted cash flow from operations (before changes in non-cash operating accounts and non-recurring items) increased 11.2% over the same period in the prior year to $9.2 million;

Adjusted net income attributable to common shareholders before non-recurring items was $1.9 million for the quarter, compared to $0.5 million for the same quarter in the prior year;

Adjusted EBITDA per share increased 11.1% to $0.10 per share from $0.09 per share for the quarter compared to the same quarter in the prior year and net income attributable to common shareholders before non-recurring items per share increased to $0.02 per share from $0.01 per share for the same quarter in the prior year;

Adjusted cash flow from operations (before changes in non-cash operating accounts and non-recurring items) increased to $0.10 per share from $0.09 per for the same quarter in the prior year; and

Continued progress was made in reducing leverage, with consolidated debt net of cash outstanding before deferred financing charges and other expenses being lowered to 2.3x trailing 12 months EBITDA as at March 31, 2014.

Note:

 

(1) These results include non-IFRS measures such as EBITDA, cash flow from operations and net income attributable to common shareholders before non-recurring items, and are presented on a basis that includes the Company's share of revenue, expenses, assets and liabilities from its joint venture operations, which reflects the basis on which management makes its operating decisions and performance evaluation. Prior to January 1, 2013 the Company consolidated the financial results of its joint ventures on a proportionate basis in accordance with then applicable accounting standards. Since January 1, 2013, the Company has been required to report the financial results of its joint ventures using equity accounting under the new IFRS accounting standards.

 

The adjusted results are not generally accepted measures of financial performance under IFRS. The Company's method of calculating these financial performance measures may differ from other companies and accordingly, they may not be comparable to measures used by other companies. Please refer to the MD&A for a reconciliation of these non-IFRS measures and adjusted results.

 

Review of Operations and Value Enhancement Initiatives

 

Glacier Media Inc. ("Glacier" or the "Company") completed the first quarter of 2014 with continued improvement. Consolidated EBITDA was up 13.2% for the quarter compared to the same quarter in the prior year on an adjusted basis(1). Consistent with Glacier's fourth quarter 2013 performance, revenues returned to prior year levels as a number of the Company's operations experienced improved market opportunities and revenue growth. The profit performance was also the result of a variety of initiatives that are being undertaken to affect the transformation of the Company and enhance value for shareholders. These initiatives are discussed below.

 

For the quarter ended March 31, 2014, adjusted consolidated revenue increased 0.1% to $76.9 million and adjusted consolidated EBITDA increased to $8.9 million, from $7.9 million the prior year. Revenue remained consistent despite the closure of the Kamloops Daily News and other small publications. Revenues were also affected by weaker community media revenues, which were impacted by overall economic conditions first experienced in 2013 that continue in 2014, as well as digital competition. The community media revenue shortfalls were offset by stronger business information revenues and increased printing revenues in one of Glacier's joint venture operations.

 

Improved operating performance resulted as well from a series of value enhancement initiatives first launched in 2013 and continued in 2014. They include:

 

Evolve, Enrich and Extend initiatives. The Company is pursuing a comprehensive initiative to grow its business information operations through an Evolve, Enrich and Extend strategy. This strategy focuses on the provision of richer content, data and information, related analytics and business and market intelligence, and the achievement of greater customer utility and decision dependence. Management is currently reviewing the spectrum of verticals in which it operates with a view of focusing resources and efforts on those verticals and opportunities deemed to have the greatest growth potential that can be realized through this Evolve, Enrich and Extend strategy. Management and staff are using the strategy to develop the Company's community media operations as well.

Cost reduction initiatives. A variety of significant cost reduction measures have and are being implemented to reduce overall operating costs. The initiatives have been targeted to reduce costs by more than $10.0 million on an annualized basis. Savings from these initiatives began to be realized in both the third and fourth quarters of 2013 - and continue in the first quarter of 2014. In implementing these initiatives, management has been diligent to maintain the operating integrity of the businesses, and maintain development spending in areas where growth opportunities exist.

Sale of real estate assets. The Company has been selling real estate properties to strengthen its financial position. In 2013, more than $12.0 million was raised through the sale of property. In early 2014, the Company entered into an agreement to sell its vacant real estate property in Kamloops for $4.8 million. The sale is expected to close in the summer of 2014. Other property dispositions are currently being pursued. Given current capitalization and interest rates, monetizing real estate value to reduce leverage has been deemed prudent.

Real estate and other asset sales have been targeted to a) cover any required deposit relating to the previously reported notice of possible re-assessment from Canada Revenue Agency (CRA) for the 2008-2011 income tax years, should a deposit become payable and b) result in a net reduction of leverage from current levels. Any potential CRA re-assessment timing is not currently determinable.

Sale of non-core assets. The Company continues to assess assets that may be considered non-core.

Business Information

 

Many of the Company's business information operations (which include business and professional and trade information) continue to grow and provide attractive opportunities for future growth in both existing and new verticals through multi-platform offerings. In particular, energy, agriculture, environmental risk, environmental compliance, manufacturing and financial services performed well.

 

Business information operations now represent more than half of Glacier's EBITDA, of which 45% comes from rich information digital data products. These products provide essential information that generate highly profitable recurring revenues, and are particularly well positioned for scalable growth. The product lines offer resiliency in challenging economic times as they provide critical insight and analysis to Glacier's customers. Much of 2014's strategic initiatives will focus on enhancing and expanding existing product lines, with a view to increasing the level of customer decision dependence, as a key aspect of the Evolve, Enrich and Extend strategy.

 

The Company is continuing to develop its business information content and marketing offerings with multi-platform solutions - with a key focus on mobile offerings - digitally designed to integrate more seamlessly with customer decision-making processes. Digital revenues now represent more than one quarter of Glacier's business information revenues. Efforts continue to be refined with respect to developing different types of digital revenues, including content, advertising and subscriptions. A consistent focus on various ways of enriching content is resulting in improved rates for advertising positioned alongside rich information.

 

In 2014, Glacier's business information divisions continued their focus on integrated solutions selling. Among the activities:

 

A new National Network team was created, drawing together top sales and sales management personnel, with a view to offering national clients solutions that span the depth and breadth of all divisions;

In February 2014, the business information division launched a new conference - the Next-Gen Forum - which focuses on the importance of corporate social responsibility in the extractive industries sectors. This forum represents a new practice area for Glacier and will include new publications and related events and conferences;

The British Columbia, Alberta and Ontario Export Awards were added to the Company's growing stable of events and conferences. The events solidify important relationships with the Canadian Manufacturers and Exporters association, as well as respective provincial governments and the federal government, along with key marketing clients;

Several divisions launched formal partnerships with key industry associations that represent lead business segments. These partnerships create new revenue opportunities via events, branded content and new supplements.

Community Media

 

Glacier's community media operations offer broad coverage across Western Canada in local markets, and continue to offer a strong value proposition through local information and marketing channel utility.

 

Generally weak economic conditions, as well as structural changes in the community newspaper industry, continued to affect revenue levels. National revenues have been generally lower as a result of these factors, although national revenues recovered in April to higher levels than the previous year. Many of the Company's smaller rural community media markets - largely spread across the Prairies - have enjoyed more steady local performance due to their strong local positions and local advertising revenues, although they are still affected by cyclical downturns in key economies such as energy and agriculture, and the factors driving national revenues.

 

While print advertising revenues continue to be weak in some markets, digital revenues continue to grow steadily in Glacier's community media operations with new product offerings including extended market coverage and specialty digital products. Operating expense investments are being made to improve the digital community media products in order to exploit new revenue opportunities, particularly of the larger markets, focusing on content delivery and advertising effectiveness. The investments are being made prudently with a view to generating profitable revenue. As a result, Glacier's community media digital operations are contributing attractive net profit margins to the Company.

 

Significant efforts are also being made to develop new community media features and products. The scale of these efforts continues to build, with the segment generating strong print revenue growth over prior year, augmented with digital revenues and events.

 

While economic and market challenges have affected the community media operations, management believes that these businesses have unrealized opportunities available and will continue to generate solid cash flow given the nature of the markets in which Glacier operates - particularly within the more robust micro-economies of Western Canada. This cash flow can be used to fund growth and reduce leverage through both internal investment and acquisition of digital business information and community media assets, as well as debt repayments.

 

Financial Position

 

On an adjusted basis, to include the Company's share of its joint ventures, Glacier's consolidated debt net of cash outstanding before deferred financing charges and other expenses was reduced to 2.3x trailing 12 months EBITDA as at March 31, 2014.

 

The Company (excluding its joint ventures) reduced debt by $1.7 million during the period. Glacier's consolidated debt net of cash outstanding before deferred financing charges was $94.0 million as at March 31, 2014.

 

Capital expenditures (excluding the Company's joint ventures) were $0.8 million for the quarter ended March 31, 2014 compared to $1.1 million for the same period in the prior year.

 

Declaration of Dividend

 

The Board of Directors declared a quarterly dividend of $0.02 per share to shareholders of record on June 13, 2014 and payable on July 4, 2014. The dividend is consistent with the Company's dividend policy of paying $0.08 per share per annum, payable quarterly.

 

Outlook

 

The Company continues to grow its business operations through its Evolve, Enrich and Extend strategy and is making good progress in this transformation. While media maturation factors are having an impact as described, the softer economy has continued to play a significant role in dampening revenues, and economic strengthening should result in improved revenues at the margin.

 

As indicated, management has undertaken a number of Value Enhancement Initiatives to strengthen the Company's financial position and operating performance in the near term, including a) a wide variety of revenue development initiatives, b) sale of real estate assets to reduce leverage and cover a potential tax re-assessment deposit, c) sale of non-core assets, d) significant cost reduction measures targeted to reduce costs by more than $10.0 million, and e) review of the spectrum of verticals in which the Company operates to focus operating and financial resources on those verticals deemed to have the greatest growth potential. Profitability enhancements and asset sale initiatives are intended to significantly improve Glacier's financial position and place the Company in a better position from which to take advantage of organic growth and acquisition opportunities, particularly within the digital business information space.

 

 

[phil_Buffett]

Decent Q1 results

 

Summary Results

 

Results are reported below on an adjusted basis to include the Company's share of the results of its joint ventures. Management bases its operating decisions and performance evaluation utilizing these results.

 

(thousands of dollars) For the three months ended March 31,

except share and per share amounts 2014 (1)(5) 2013 (1)(5)

Revenue $76,895 $76,840

EBITDA (1) $8,927 $7,889

EBITDA margin (1) 11.6% 10.3%

EBITDA per share (1) $0.10 $0.09

Net income attributable to common shareholders before non-recurring items (1)(2)(3) $1,941 $540

Net income attributable to common shareholders per share before non-recurring items (1)(2)(3) $0.02 $0.01

Cash flow from operations (1)(2)(3) $9,184 $8,261

Cash flow from operations per share (1)(2)(3) $0.10 $0.09

Debt net of cash outstanding before deferred financing charges $101,739 $120,907

Dividends paid (4) $1,838 -

Dividends paid per share (4) $0.02 -

Weighted average shares outstanding, net 89,083,105 89,243,102

Notes:

(1) Refer to "Non-IFRS Measures" section of the financial statements.

(2) 2014 excludes $0.8 million of restructuring expense, $0.1 million of transaction and transition costs and $0.5 million of other income.

(3) For non-recurring items excluded in the prior period, refer to previously reported financial statements.

(4) Dividends in 2014 and 2013 total $0.08 per share, paid quarterly. Dividends in 2013 were declared in March and paid in April.

(5) These results are presented on an adjusted basis to include the Company's share of the results of its joint ventures, as management bases its operating decisions and performance evaluation on the adjusted results.

Key Financial Highlights (1)

 

For the quarter ended March 31, 2014, Glacier's adjusted consolidated revenues increased $0.1 million to $76.9 million from $76.8 million for the same quarter in the prior year;

For the period ended March 31, 2014, adjusted consolidated earnings before interest taxes, depreciation and amortization (EBITDA) increased 13.2% to $8.9 million from $7.9 million for the same period in the prior year;

Adjusted cash flow from operations (before changes in non-cash operating accounts and non-recurring items) increased 11.2% over the same period in the prior year to $9.2 million;

Adjusted net income attributable to common shareholders before non-recurring items was $1.9 million for the quarter, compared to $0.5 million for the same quarter in the prior year;

Adjusted EBITDA per share increased 11.1% to $0.10 per share from $0.09 per share for the quarter compared to the same quarter in the prior year and net income attributable to common shareholders before non-recurring items per share increased to $0.02 per share from $0.01 per share for the same quarter in the prior year;

Adjusted cash flow from operations (before changes in non-cash operating accounts and non-recurring items) increased to $0.10 per share from $0.09 per for the same quarter in the prior year; and

Continued progress was made in reducing leverage, with consolidated debt net of cash outstanding before deferred financing charges and other expenses being lowered to 2.3x trailing 12 months EBITDA as at March 31, 2014.

Note:

 

(1) These results include non-IFRS measures such as EBITDA, cash flow from operations and net income attributable to common shareholders before non-recurring items, and are presented on a basis that includes the Company's share of revenue, expenses, assets and liabilities from its joint venture operations, which reflects the basis on which management makes its operating decisions and performance evaluation. Prior to January 1, 2013 the Company consolidated the financial results of its joint ventures on a proportionate basis in accordance with then applicable accounting standards. Since January 1, 2013, the Company has been required to report the financial results of its joint ventures using equity accounting under the new IFRS accounting standards.

 

The adjusted results are not generally accepted measures of financial performance under IFRS. The Company's method of calculating these financial performance measures may differ from other companies and accordingly, they may not be comparable to measures used by other companies. Please refer to the MD&A for a reconciliation of these non-IFRS measures and adjusted results.

 

Review of Operations and Value Enhancement Initiatives

 

Glacier Media Inc. ("Glacier" or the "Company") completed the first quarter of 2014 with continued improvement. Consolidated EBITDA was up 13.2% for the quarter compared to the same quarter in the prior year on an adjusted basis(1). Consistent with Glacier's fourth quarter 2013 performance, revenues returned to prior year levels as a number of the Company's operations experienced improved market opportunities and revenue growth. The profit performance was also the result of a variety of initiatives that are being undertaken to affect the transformation of the Company and enhance value for shareholders. These initiatives are discussed below.

 

For the quarter ended March 31, 2014, adjusted consolidated revenue increased 0.1% to $76.9 million and adjusted consolidated EBITDA increased to $8.9 million, from $7.9 million the prior year. Revenue remained consistent despite the closure of the Kamloops Daily News and other small publications. Revenues were also affected by weaker community media revenues, which were impacted by overall economic conditions first experienced in 2013 that continue in 2014, as well as digital competition. The community media revenue shortfalls were offset by stronger business information revenues and increased printing revenues in one of Glacier's joint venture operations.

 

Improved operating performance resulted as well from a series of value enhancement initiatives first launched in 2013 and continued in 2014. They include:

 

Evolve, Enrich and Extend initiatives. The Company is pursuing a comprehensive initiative to grow its business information operations through an Evolve, Enrich and Extend strategy. This strategy focuses on the provision of richer content, data and information, related analytics and business and market intelligence, and the achievement of greater customer utility and decision dependence. Management is currently reviewing the spectrum of verticals in which it operates with a view of focusing resources and efforts on those verticals and opportunities deemed to have the greatest growth potential that can be realized through this Evolve, Enrich and Extend strategy. Management and staff are using the strategy to develop the Company's community media operations as well.

Cost reduction initiatives. A variety of significant cost reduction measures have and are being implemented to reduce overall operating costs. The initiatives have been targeted to reduce costs by more than $10.0 million on an annualized basis. Savings from these initiatives began to be realized in both the third and fourth quarters of 2013 - and continue in the first quarter of 2014. In implementing these initiatives, management has been diligent to maintain the operating integrity of the businesses, and maintain development spending in areas where growth opportunities exist.

Sale of real estate assets. The Company has been selling real estate properties to strengthen its financial position. In 2013, more than $12.0 million was raised through the sale of property. In early 2014, the Company entered into an agreement to sell its vacant real estate property in Kamloops for $4.8 million. The sale is expected to close in the summer of 2014. Other property dispositions are currently being pursued. Given current capitalization and interest rates, monetizing real estate value to reduce leverage has been deemed prudent.

Real estate and other asset sales have been targeted to a) cover any required deposit relating to the previously reported notice of possible re-assessment from Canada Revenue Agency (CRA) for the 2008-2011 income tax years, should a deposit become payable and b) result in a net reduction of leverage from current levels. Any potential CRA re-assessment timing is not currently determinable.

Sale of non-core assets. The Company continues to assess assets that may be considered non-core.

Business Information

 

Many of the Company's business information operations (which include business and professional and trade information) continue to grow and provide attractive opportunities for future growth in both existing and new verticals through multi-platform offerings. In particular, energy, agriculture, environmental risk, environmental compliance, manufacturing and financial services performed well.

 

Business information operations now represent more than half of Glacier's EBITDA, of which 45% comes from rich information digital data products. These products provide essential information that generate highly profitable recurring revenues, and are particularly well positioned for scalable growth. The product lines offer resiliency in challenging economic times as they provide critical insight and analysis to Glacier's customers. Much of 2014's strategic initiatives will focus on enhancing and expanding existing product lines, with a view to increasing the level of customer decision dependence, as a key aspect of the Evolve, Enrich and Extend strategy.

 

The Company is continuing to develop its business information content and marketing offerings with multi-platform solutions - with a key focus on mobile offerings - digitally designed to integrate more seamlessly with customer decision-making processes. Digital revenues now represent more than one quarter of Glacier's business information revenues. Efforts continue to be refined with respect to developing different types of digital revenues, including content, advertising and subscriptions. A consistent focus on various ways of enriching content is resulting in improved rates for advertising positioned alongside rich information.

 

In 2014, Glacier's business information divisions continued their focus on integrated solutions selling. Among the activities:

 

A new National Network team was created, drawing together top sales and sales management personnel, with a view to offering national clients solutions that span the depth and breadth of all divisions;

In February 2014, the business information division launched a new conference - the Next-Gen Forum - which focuses on the importance of corporate social responsibility in the extractive industries sectors. This forum represents a new practice area for Glacier and will include new publications and related events and conferences;

The British Columbia, Alberta and Ontario Export Awards were added to the Company's growing stable of events and conferences. The events solidify important relationships with the Canadian Manufacturers and Exporters association, as well as respective provincial governments and the federal government, along with key marketing clients;

Several divisions launched formal partnerships with key industry associations that represent lead business segments. These partnerships create new revenue opportunities via events, branded content and new supplements.

Community Media

 

Glacier's community media operations offer broad coverage across Western Canada in local markets, and continue to offer a strong value proposition through local information and marketing channel utility.

 

Generally weak economic conditions, as well as structural changes in the community newspaper industry, continued to affect revenue levels. National revenues have been generally lower as a result of these factors, although national revenues recovered in April to higher levels than the previous year. Many of the Company's smaller rural community media markets - largely spread across the Prairies - have enjoyed more steady local performance due to their strong local positions and local advertising revenues, although they are still affected by cyclical downturns in key economies such as energy and agriculture, and the factors driving national revenues.

 

While print advertising revenues continue to be weak in some markets, digital revenues continue to grow steadily in Glacier's community media operations with new product offerings including extended market coverage and specialty digital products. Operating expense investments are being made to improve the digital community media products in order to exploit new revenue opportunities, particularly of the larger markets, focusing on content delivery and advertising effectiveness. The investments are being made prudently with a view to generating profitable revenue. As a result, Glacier's community media digital operations are contributing attractive net profit margins to the Company.

 

Significant efforts are also being made to develop new community media features and products. The scale of these efforts continues to build, with the segment generating strong print revenue growth over prior year, augmented with digital revenues and events.

 

While economic and market challenges have affected the community media operations, management believes that these businesses have unrealized opportunities available and will continue to generate solid cash flow given the nature of the markets in which Glacier operates - particularly within the more robust micro-economies of Western Canada. This cash flow can be used to fund growth and reduce leverage through both internal investment and acquisition of digital business information and community media assets, as well as debt repayments.

 

Financial Position

 

On an adjusted basis, to include the Company's share of its joint ventures, Glacier's consolidated debt net of cash outstanding before deferred financing charges and other expenses was reduced to 2.3x trailing 12 months EBITDA as at March 31, 2014.

 

The Company (excluding its joint ventures) reduced debt by $1.7 million during the period. Glacier's consolidated debt net of cash outstanding before deferred financing charges was $94.0 million as at March 31, 2014.

 

Capital expenditures (excluding the Company's joint ventures) were $0.8 million for the quarter ended March 31, 2014 compared to $1.1 million for the same period in the prior year.

 

Declaration of Dividend

 

The Board of Directors declared a quarterly dividend of $0.02 per share to shareholders of record on June 13, 2014 and payable on July 4, 2014. The dividend is consistent with the Company's dividend policy of paying $0.08 per share per annum, payable quarterly.

 

Outlook

 

The Company continues to grow its business operations through its Evolve, Enrich and Extend strategy and is making good progress in this transformation. While media maturation factors are having an impact as described, the softer economy has continued to play a significant role in dampening revenues, and economic strengthening should result in improved revenues at the margin.

 

As indicated, management has undertaken a number of Value Enhancement Initiatives to strengthen the Company's financial position and operating performance in the near term, including a) a wide variety of revenue development initiatives, b) sale of real estate assets to reduce leverage and cover a potential tax re-assessment deposit, c) sale of non-core assets, d) significant cost reduction measures targeted to reduce costs by more than $10.0 million, and e) review of the spectrum of verticals in which the Company operates to focus operating and financial resources on those verticals deemed to have the greatest growth potential. Profitability enhancements and asset sale initiatives are intended to significantly improve Glacier's financial position and place the Company in a better position from which to take advantage of organic growth and acquisition opportunities, particularly within the digital business information space.

 

 

 

sounds great. thanks 50centdollars :)

 

they  are going in the right direction. streamline the Business. sell non core assets. pay back debt. more cashflow.

[phil_Buffett]

Tim McElvaine talks about Glacier at the AGM. Sanjeev asks the question  :)

 

Yes Sanjeev?

Sanjeev: So you’re recently appointed to the board of Glacier Media. Any comments, ideas, anything you want to add to that?

Tim: Well, it’s interesting. As Sanjeev says, I was recently—joined the board of Glacier, which has been a long time holding of ours and has not been a stellar performer during that period. And you kind of go from there.

I really just joined, so I don’t have a lot of comments. The people are very good. The business is very cash generative, and we’ll see.

 

and For example, Glacier is a larger position. Part of that is because I think it’s cheap, and part of that is I have a high familiarity and comfort level with what I see there.

 

 

http://www.cornerofberkshireandfairfax.ca/forum/general-discussion/2013-annual-report-tim-mcelvaine/

[OracleofCarolina]

I believe the annual meeting is tomorrow...if anyone attends, It will be real nice to hear some thoughts...

 

 

Cheers!

[Parsad]

I was at the meeting today, and I've got to say that I'm extremely disappointed with the institutional mentality that is preventing Glacier from actually increasing shareholder value.

 

The team at Glacier, in particular CEO Jonathon Kennedy, are top-notch, honest guys.  Chairman of Madison Ventures, Sam Grippo, wasn't there, but I certainly would have liked to hear his opinion.

 

In general, the company's plan is to focus on creating, acquiring and growing rich media products, while selling off non-core, decaying businesses.  With the cash, they want to pay down debt, buy back shares and maintain the dividend.  For the most part, they are in a position to handle the possible CRA decision if necessary.

 

I asked why pay such a fat dividend when you can pay down debt, prepare for a possible CRA settlement or buy back shares at a large discount to book?  It sounded like Madison was interested in buying back shares, but there was definite pushback from a couple of institutional shareholders.

 

One of the institutional shareholders suggested to me that removing the dividend could put the stock in play?  I said how could the stock be in play if Madison controls 33%, Tim controls several percent and the two institutional guys control about 15-20%?  He didn't really have an answer except to say that he couldn't explain the details to me. 

 

Then one of the other institutional shareholders said that removing the dividend would tarnish the company and that shareholders have long memories.  I explained that the capital was still being returned to shareholders, but in a more effective way by either paying down debt or buying back shares.  He sort of shrugged and said "I'm just laying it out there, and you can ponder it over the weekend"! 

 

It's these types of idiots that caused the company to deteriorate and languish.  No, no, don't cut the dividend.  "They have core undervalued assets they can sell and buy back shares."  Well, if they are undervalued, then would it not make sense to buy back stock?

 

Through the whole discussion, it seemed as though management had to play this balancing game between what these institutional shareholders desired and what was truly right for the business going forward.  I can't stand this institutional mandate.  Guys run mutual funds with hundreds of positions and then have a status quo system to fix companies that run into trouble.  The problem is that their status quo often just keeps running the company into the ground. 

 

Anyway, I think the guy from Montrusco Bolton really started to dislike me and wanted to gouge my eyes out a la Martell/Mountain fight from Game of Thrones!  ;D  Cheers!

[yadayada]

'and you can ponder it over the weekend'

 

That attitude attached to ignorance makes me want to ponder people in the face.

 

[ItsAValueTrap]

Thanks for the update.  That sounds pretty crazy...

 

*Disclosure:  Long GVC.TO.  (Because I swing trade stocks in my TFSA.  It's a very small position for me.)