Glacier Water Announces Fiscal Year 2008 Results

Business Wire, April 02, 2009

VISTA, Calif. -- Glacier Water Services, Inc. (Pink Sheets:GWSV) announced results for the year ended December 28, 2008.

Brian McInerney, Chief Executive Officer of Glacier Water, said, “Glacier achieved record revenues in 2008 of $94,711,000, up 4.8% over the prior year. Same-store revenue growth for the twelve-month period continued its positive trend and was up 10.4%. The 2008 revenue increase was the result of higher machine productivity and an increase in the number of machines on location across the U.S. During 2008 we placed almost 900 incremental Glacier machines at retailers. Income from operations for the current year improved to $4,237,000 but was impacted by higher operating costs, including the costs to support new location growth and increased fuel costs. At the end of the year, Glacier had more than 17,200 machines at retailers across the U.S. and Canada providing high quality, great tasting drinking water.”

Revenues for the year ended December 28, 2008 increased to $94,711,000 from $90,376,000, representing a 4.8% increase versus 2007. The increase in revenue was primarily the result of growth in the number of locations this year compared to last year, coupled with an increase in average sales per machine.

The Company’s income from operations for the year ended December 28, 2008 was $4,237,000 compared to $4,154,000 for the same period last year. Income from operations for 2008 was negatively impacted by higher operating costs, including labor and machine maintenance associated with new location growth, and fuel costs. Additionally, income from operations for the year includes non-cash compensation expense of $324,000 as compared to $297,000 for 2007.

The Company’s net loss applicable to common stockholders for the year ended December 28, 2008, was $4,227,000, or $1.56 per basic and diluted share, compared to a loss of $4,878,000, or $1.85 per basic and diluted share for the same period last year.

With approximately 17,200 machines located in 42 States throughout the United States and Canada, Glacier is the leading provider of high quality, low-priced drinking water dispensed to consumers through self-service bottled water machines located at supermarkets and other retail locations.

Statements in this announcement that are not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. A copy of the Company’s audited financial statements for the year ended December 28, 2008 are available on the Company’s website, www.glacierwater.com, or can be obtained by contacting Steve Stringer at (760) 560-1111.

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