Glacier Media Inc.’s (“Glacier” or the “Company”) third quarter results continue to be consistent with the trend in the year-to-date 2017 results. Declines in adjusted print revenues affected the Company’s community media results, as well as agriculture and energy advertising sales. Progress continues to be made in the growth areas the Company is pursuing, which is resulting in overall adjusted revenue and profit growth in these areas. Adjusted(1) consolidated EBITDA, including the Company’s share of its joint venture interests, decreased to $6.0 million for the quarter ended September 30, 2017 compared to $7.7 million for the same period in the prior year. Adjusted consolidated revenue was $54.8 million for the quarter compared to $58.4 million for the same quarter in the prior year.
The environmental, property and financial information operations experienced another strong quarter. Adjusted revenues grew by 11.1% to $7.1 million while adjusted EBITDA grew by 7.3% to $1.7 million. Year to-date these operations have grown adjusted revenue and adjusted EBITDA by 16.6% and 22.7% respectively even while increasing the level of investment in the fast growing REW.ca real estate portal.
The Company’s commodity information operations continued to face adverse conditions in the quarter mainly due to the depressed energy and agricultural prices. Adjusted revenues declined by $0.8 million or 5.1% to $15.3 million while adjusted EBITDA declined to $2.5 million from $2.9 million in the same quarter last year. Glacier FarmMedia was heavily impacted by the low commodity prices and continuing industry consolidation among key customers. Adjusted revenue declines were partially offset by increases in the successful agricultural exhibition shows which were held during the quarter. The Company’s mining information group continued to generate adjusted revenue and profit growth, benefiting from both the recovery in the mining sector as well as growth in advertising, circulation and events revenues. Overall, the commodity information operations experienced lower adjusted revenue and adjusted EBITDA declines versus recent quarters as market conditions improved somewhat, and operational refocusing, restructuring and growth in targeted initiatives generated improved adjusted results.
The Company’s community media operations experienced a soft quarter. Ongoing print advertising challenges in the community media industry, combined with economic challenges in certain areas, continue to weigh on the results of the operations. Adjusted revenues for the community media operations declined by 9.8% to $32.4 million while adjusted EBITDA declined by 27.4% to $3.6 million. Digital community media operations continue to develop well, with continued progress being made in the Company’s various digital products and media services being offered. Adjusted digital revenues and profits are continuing to grow.
Given the ongoing impact of weak energy and commodity market conditions on the Western Canadian economy, as well as print advertising declines, near-term uncertainty and market risk continues to affect the Company. In light of these conditions, the Company will continue to evaluate cost reduction initiatives where appropriate in the businesses affected. At the same time, given the growth opportunities that exist in the strategic areas being targeted, and the results that are being generated, the Company will continue to invest in its strategic growth opportunities and revenue generating initiatives.
Given the varied outlook, management plans to continue the progress of the last few years in strengthening the Company’s financial position by further reducing debt. The reduction in debt in the Company’s investment entities over the past year should lead to further cash flow to pay back senior debt. A strengthened balance sheet will mitigate risk while allowing the ongoing and planned operational and capital investments. These investments are necessary to continue the evolution of the Company’s products, services and operations, and the growth being realized in a number of the Company’s businesses.