Arctic Glacier Income Fund racked up $1 million in expenses during the first month of the antitrust investigation into the packaged ice industry.
It's not clear what, if anything, the investigation by the U.S. Department of Justice has to do with the Winnipeg packaged ice company, other than that it has subpoenaed documents related to Arctic's U.S. operations.
Company CEO Keith McMahon said receipts for the last month have not been compiled yet so the company does not know if monthly costs will continue to be in the $1-million range.
The company recorded a $12.5-million net loss for the quarter, larger than last year's $10.9-million loss.
But company officials and analysts point out that Arctic produces a net loss every year in the first quarter because the packaged ice business is highly seasonal.
They said that with increased acquisitions, fixed costs go up and hence net losses during the first quarter are expected to increase.
Sales for the quarter were down eight per cent to $24.2 million with the higher Canadian dollar accounting for $3.3 million of that. (Arctic derives more than 80 per cent of its sales from the United States.) Some of that was attributed to poor weather in the U.S Midwest, Canada and California.
The rise in the price of fuel also meant an additional $300,000 in expenses.
Since the antitrust investigation began in early March, Arctic Glacier, the second-largest packaged ice company in North America, has been named along with Reddy Ice of Dallas, the largest ice company, in 60 potential class action law suits in the U.S.
Arctic's units were up a penny on Tuesday to $8.46. Its shares bottomed out at $7.60 on March 7 after the anti-trust investigation was disclosed.
martin.cash@freepress.mb.ca
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