Sparkling Spring Water Group Limited Announces Record 2000 Revenue AND EBITDA (All currency amounts in US$)

Apr 02, 2001, 01:00 ET from Spring Water Group Limited

    VANCOUVER, British Columbia, April 2 /PRNewswire/ --   Spring Water Group
 Limited announced record full year 2000 EBITDA, up 12.0% to $19.2 million from
 $17.1 million in 1999.  The 2000 revenue increased 8.4% to a record
 $69.3 million from $63.9 million in 1999.  EBITDA excludes an acquisition
 charge of $0.5 million in 2000 and $0.1 million in 1999.  For 2000, the
 Company recorded a net income of approximately $44,000 after inclusion of
 extraordinary gains of $1.1 million related to early retirement of debt.  This
 compares to a net loss of $1.8 million in 1999.  The Company's customer
 location base ended 2000 at 182,000 up 14% from a base of 160,000 in 1999.
     The Company's 2000 operating results were driven by its home and office
 water business which achieved an increase of 9.4% in water revenues over
 1999 on a unit volume increase of 14.9%.  Declines in the exchange rates
 (primarily the British Pound) resulted in a decrease of approximately 4% in
 reported home and office revenue growth.  The EBITDA margin for the year
 increased to 27.7% up from 26.8% in 1999.  Selling, delivery and
 administrative expenditures decreased as a percentage of revenue by 1.3% to
 53.8% from 55.1% in 1999 as Sparkling Spring Water Holdings Limited, parent
 company of Sparkling Spring Water Group Limited, absorbed $1.6 million of
 administrative expenses in 2000 vs $0.1 million in 1999.
     Mr. G. John Krediet, Chairman and CEO of Sparkling Spring stated, "I am
 pleased with the results for 2000.  They reflect a solid performance.  I am
 particularly pleased with our organic customer growth of 12,000 rental
 customers up 9.5% over our beginning rental base."  Mr. Krediet added, "In the
 year 2001 we plan to focus our efforts on further increasing our internal
 customer growth and we also plan to resume acquisition activity as market
 opportunities arise."
     The declines in the currency exchange rate of the Pound Sterling reduced
 reported 2000 revenue and EBITDA by approximately $1.7 million and
 $0.7 million or by 2.4% and 3.7%, respectively.  In 2000, interest expense
 decreased by $3.6 million from $11.7 million in 1999 to $8.1 million.
 Exclusive of the benefits from gains on the Company's currency swaps and
 non-cash interest amortization, cash interest decreased $0.2 million from
 $12.1 million in 1999 to $11.9 million in 2000.  Lower average interest rates
 in 2000 resulting from the repurchase of senior subordinated notes in
 1999 offset the increase in interest expense due to higher debt levels
 required to fund the 2000 acquisitions of $5.2 million and capital
 expenditures of approximately $11.0 million including a new plant in Scotland.
     Sparkling Spring is a leading producer and distributor of bottled water to
 the home and office segment.  The Company does business as "Nature Springs" in
 England, "Water at Work" in Scotland, "Sparkling Springs" in the Atlantic
 Provinces of Canada, "Canadian Springs" and "Rocky Mountain Springs" in
 British Columbia, Canada, "Cool Spring," "Sparta" and "Rocky Mountain Springs"
 in Alberta, Canada and in the United States, "Cullyspring" and "Crystal
 Springs" in Washington and "Crystal Springs" in Oregon.
     The statements contained in this release that are not historical facts are
 forward-looking statements.  These forward-looking statements involve risks
 and uncertainties that could cause actual results to differ materially from
 those in such statements.  The results could be affected by, among other
 things, general business conditions, the impact of competition, weather, the
 seasonality of the Company's business, the ability to obtain financing, the
 cost or availability of both water from the Company's water sources and fuel
 required to deliver the Company's products, government regulations, labor
 relations and currency fluctuations.  Investors also should consider other
 risks and uncertainties described in further detail in documents filed by the
 Company with the Securities and Exchange Commission.
 
 

SOURCE Spring Water Group Limited
    VANCOUVER, British Columbia, April 2 /PRNewswire/ --   Spring Water Group
 Limited announced record full year 2000 EBITDA, up 12.0% to $19.2 million from
 $17.1 million in 1999.  The 2000 revenue increased 8.4% to a record
 $69.3 million from $63.9 million in 1999.  EBITDA excludes an acquisition
 charge of $0.5 million in 2000 and $0.1 million in 1999.  For 2000, the
 Company recorded a net income of approximately $44,000 after inclusion of
 extraordinary gains of $1.1 million related to early retirement of debt.  This
 compares to a net loss of $1.8 million in 1999.  The Company's customer
 location base ended 2000 at 182,000 up 14% from a base of 160,000 in 1999.
     The Company's 2000 operating results were driven by its home and office
 water business which achieved an increase of 9.4% in water revenues over
 1999 on a unit volume increase of 14.9%.  Declines in the exchange rates
 (primarily the British Pound) resulted in a decrease of approximately 4% in
 reported home and office revenue growth.  The EBITDA margin for the year
 increased to 27.7% up from 26.8% in 1999.  Selling, delivery and
 administrative expenditures decreased as a percentage of revenue by 1.3% to
 53.8% from 55.1% in 1999 as Sparkling Spring Water Holdings Limited, parent
 company of Sparkling Spring Water Group Limited, absorbed $1.6 million of
 administrative expenses in 2000 vs $0.1 million in 1999.
     Mr. G. John Krediet, Chairman and CEO of Sparkling Spring stated, "I am
 pleased with the results for 2000.  They reflect a solid performance.  I am
 particularly pleased with our organic customer growth of 12,000 rental
 customers up 9.5% over our beginning rental base."  Mr. Krediet added, "In the
 year 2001 we plan to focus our efforts on further increasing our internal
 customer growth and we also plan to resume acquisition activity as market
 opportunities arise."
     The declines in the currency exchange rate of the Pound Sterling reduced
 reported 2000 revenue and EBITDA by approximately $1.7 million and
 $0.7 million or by 2.4% and 3.7%, respectively.  In 2000, interest expense
 decreased by $3.6 million from $11.7 million in 1999 to $8.1 million.
 Exclusive of the benefits from gains on the Company's currency swaps and
 non-cash interest amortization, cash interest decreased $0.2 million from
 $12.1 million in 1999 to $11.9 million in 2000.  Lower average interest rates
 in 2000 resulting from the repurchase of senior subordinated notes in
 1999 offset the increase in interest expense due to higher debt levels
 required to fund the 2000 acquisitions of $5.2 million and capital
 expenditures of approximately $11.0 million including a new plant in Scotland.
     Sparkling Spring is a leading producer and distributor of bottled water to
 the home and office segment.  The Company does business as "Nature Springs" in
 England, "Water at Work" in Scotland, "Sparkling Springs" in the Atlantic
 Provinces of Canada, "Canadian Springs" and "Rocky Mountain Springs" in
 British Columbia, Canada, "Cool Spring," "Sparta" and "Rocky Mountain Springs"
 in Alberta, Canada and in the United States, "Cullyspring" and "Crystal
 Springs" in Washington and "Crystal Springs" in Oregon.
     The statements contained in this release that are not historical facts are
 forward-looking statements.  These forward-looking statements involve risks
 and uncertainties that could cause actual results to differ materially from
 those in such statements.  The results could be affected by, among other
 things, general business conditions, the impact of competition, weather, the
 seasonality of the Company's business, the ability to obtain financing, the
 cost or availability of both water from the Company's water sources and fuel
 required to deliver the Company's products, government regulations, labor
 relations and currency fluctuations.  Investors also should consider other
 risks and uncertainties described in further detail in documents filed by the
 Company with the Securities and Exchange Commission.
 
 SOURCE  Spring Water Group Limited