Reddy Ice Holdings Inc. (FRZ, Financial) filed Quarterly Report for the period ended 2009-09-30.
Reddy Ice manufactures and distributes packaged ice under the Reddy Ice brand name. Reddy Ice Holdings Inc. has a market cap of $118.7 million; its shares were traded at around $5.29 with a P/E ratio of 8.6 and P/S ratio of 0.4.
Operating Expenses. Our operating expenses are costs associated with selling, general and administrative functions. These costs include executive officers' compensation, office and administrative salaries, insurance, legal and other professional services and costs associated with leasing office space. Labor costs, including associated payroll taxes and benefit costs but excluding non-cash stock-based compensation expense, included in operating expenses represented approximately 8% and 7% of revenues in the nine months ended September 30, 2009 and 2008, respectively.
Labor costs, including associated payroll taxes and benefit costs (including health insurance), accounted for approximately 20% of revenues in the three months ended September 30, 2009 and 2008, respectively. Cost of plastic bags represented approximately 6% and 7% of revenues in the three
months ended September 30, 2009 and 2008. Fuel expenses represented approximately 3% and 6% of revenues in the three months ended September 30, 2009 and 2008. The ratio of fuel expenses to revenues decreased as a result of declines in the market prices of energy. Expenses for independent third party distribution services were 6% and 5% of revenues in the three months ended September 30, 2009 and 2008. Electricity expense accounted for approximately 5% and 6% of revenues in the three months ended September 30, 2009 and 2008.
Labor costs, including associated payroll taxes and benefit costs (including health insurance), accounted for approximately 24% and 23%% of revenues in the nine months ended September 30, 2009 and 2008, respectively. Cost of plastic bags represented approximately 6% and 7% of revenues in the nine months ending September 30, 2009 and 2008, respectively. Fuel expenses represented approximately 3% and 6% of revenues in the nine months ended September 30, 2009 and 2008, respectively. The ratio of plastic bag and fuel expenses to sales decreased as a result of declines in the market prices of energy. Expenses for independent third party distribution services were 6% of revenues in the nine months ended September 30, 2009 and 2008. Electricity expense represented approximately 5% and 6% of revenues in the nine months ended September 30, 2009 and 2008, respectively.
Income tax benefit (expense): The effective tax rate increased from 11.4% during the nine months ending September 30, 2008 to 61.5% during the nine months ended September 30, 2009 as a result of the effect of changes in the ratio of permanent differences and state taxes based on gross margin to projected annual pre-tax income (loss).
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Reddy Ice manufactures and distributes packaged ice under the Reddy Ice brand name. Reddy Ice Holdings Inc. has a market cap of $118.7 million; its shares were traded at around $5.29 with a P/E ratio of 8.6 and P/S ratio of 0.4.
Highlight of Business Operations:
the traditional manufacture and delivery of ice from a central point of production to the point of sale; and the installation and operation of The Ice Factory®, our proprietary equipment located in high volume locations that produces, packages and stores ice through an automated, self-contained system. Seasonality. The packaged ice business is highly seasonal, characterized by peak demand during the warmer months of May through September, with an extended peak selling season in the southern United States. Approximately 69%, 68% and 70% of our annual revenues occurred during the second and third calendar quarters in each of 2008, 2007 and 2006. As a result of seasonal revenue declines and a less than proportional decline in expenses during the first and fourth quarters, we typically experience lower margins resulting in losses during these periods.Operating Expenses. Our operating expenses are costs associated with selling, general and administrative functions. These costs include executive officers' compensation, office and administrative salaries, insurance, legal and other professional services and costs associated with leasing office space. Labor costs, including associated payroll taxes and benefit costs but excluding non-cash stock-based compensation expense, included in operating expenses represented approximately 8% and 7% of revenues in the nine months ended September 30, 2009 and 2008, respectively.
Labor costs, including associated payroll taxes and benefit costs (including health insurance), accounted for approximately 20% of revenues in the three months ended September 30, 2009 and 2008, respectively. Cost of plastic bags represented approximately 6% and 7% of revenues in the three
months ended September 30, 2009 and 2008. Fuel expenses represented approximately 3% and 6% of revenues in the three months ended September 30, 2009 and 2008. The ratio of fuel expenses to revenues decreased as a result of declines in the market prices of energy. Expenses for independent third party distribution services were 6% and 5% of revenues in the three months ended September 30, 2009 and 2008. Electricity expense accounted for approximately 5% and 6% of revenues in the three months ended September 30, 2009 and 2008.
Labor costs, including associated payroll taxes and benefit costs (including health insurance), accounted for approximately 24% and 23%% of revenues in the nine months ended September 30, 2009 and 2008, respectively. Cost of plastic bags represented approximately 6% and 7% of revenues in the nine months ending September 30, 2009 and 2008, respectively. Fuel expenses represented approximately 3% and 6% of revenues in the nine months ended September 30, 2009 and 2008, respectively. The ratio of plastic bag and fuel expenses to sales decreased as a result of declines in the market prices of energy. Expenses for independent third party distribution services were 6% of revenues in the nine months ended September 30, 2009 and 2008. Electricity expense represented approximately 5% and 6% of revenues in the nine months ended September 30, 2009 and 2008, respectively.
Income tax benefit (expense): The effective tax rate increased from 11.4% during the nine months ending September 30, 2008 to 61.5% during the nine months ended September 30, 2009 as a result of the effect of changes in the ratio of permanent differences and state taxes based on gross margin to projected annual pre-tax income (loss).
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