The Laurus Report featured research from Symphony Research covering Arctic Glacier Income Fund (AG.UN) in the October 6, 2006 edition.  The research covers analysis of AG.UN's business model, industry, competitors, financial performance and future prospects.


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Arctic Glacier Income Fund (AG.UN) - Highlights


Ø       Q2 results for 2006 improved significantly compared to Q2 2005 results. Sales in Q1 2006 rose by 28% and EBITDA by 36%


Ø       Second largest producer of packaged ice in North America


Ø       Growth strategy is mainly through good strategic acquisitions, which is expected to take the sales up to $250 million on annualized basis


Ø       The packaged ice industry is fragmented and small with several barriers to entry for new players. AG.UN has just one large competitor with a similar business model


Ø       EBITDA margins in Q2 2006 increased by 2% to 33.9% compared to 31.8% in Q2 2005


Artic Glacier has significant growth opportunities in future through profitable acquisitions of well-run, regional and local ice-production and distribution companies like its recent deals in New York and CaliforniaThe California Ice acquisition will generate better EBITDA margins that will be accretive to the unit holders. The annual recurring maintenance CapEx is low with its business model that is fixed asset light. Intangible assets comprise 66% of long-term assets.  With an 8.5% distribution yield and consistent gains, the fund offers excellent opportunity of total returns.


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