Glacier Water Services: Little Known Stock, Tasty 9% Yield

Tim McPartland profile picture
Tim McPartland

It is seldom that you can garner a relatively safe 9% yield on an income issue (in this case a Trust Preferred issue) in this age of rock bottom interest rates, but that is the case with little known Glacier Water Services 9 1/16% Trust Preferred Shares (OTC:GWSVP).

Glacier Water Services (OTCPK:GWSV) is a small company with annual revenue of approximately $100 million. The company is about as straightforward as they come---they provide mainly 1 product---they provide and service water filtration vending machines--and at last count had almost 19,000 machines, in 42 states.

If you have not heard of the company before it is no surprise. The company purposely delisted their shares from the American Exchange in 2005---the company could not meet the requirement for having at least 300 public shareholders and thus chose to be delisted and trade only on the 'pink sheets'. Because of this decision the requirement for SEC filings was dropped and the company provides very little information for the investing public. At the time of delisting the company had 37 public common shares holders and 70 public Trust Preferred holders (NO--this isn't a typo--107 total public shareholders).

A bit of history is in order given the minimal amount of public information that is readily available.

The first available SEC 10K filings are from 1996 and at that time the company had just over 9,100 water vending machines installed in retail locations. The company had 3.4 million common shares outstanding at this time with cash flow of near $3/share. The company paid no dividends. Additionally the company had $11 million of debt outstanding at this time. The company had grown by near 100% (to $46 million in 1996) since 1992 and ended 1996 with 282 employees.

Jump ahead to late 1997 when the company formed the 'Trust' to

This article was written by

Tim McPartland profile picture
Tim McPartland is a private investor with over 50 years of investment experience. Additionally he is the editor, and former owner, of The Yield Hunter, a website devoted to the hunt for income producing securities of all types, but in particular specializing in preferred stocks and exchange traded debt.Currently Tim is publishing a new website "Innovative Income Investor"

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