Reddy Ice Holdings, Inc. (FRZ)
Q1 2010 Earnings Call Transcript
April 22, 2010 10:00 am ET
Hala Elsherbini – SVP and COO, Halliburton IR
Gilbert Cassagne – Chairman, President and CEO
Steven Janusek – EVP, CFO and Secretary
Previous Statements by FRZ
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» Reddy Ice Holdings Inc. Q1 2008 Earnings Call Transcript
Hello and welcome to the Reddy Ice Holdings Incorporated fiscal year 2010 first quarter earnings results conference call. Your host for today’s call is Gil Cassagne, Reddy Ice’s Chief Executive Officer. At this time all participants are in a listen-only mode. Any reproduction of this call in whole or in part is not permitted without prior written authorization of Reddy Ice Holdings, Inc. And as a reminder, this conference is being recorded today, Thursday, April 22nd.
I’d now like to turn the call over to Hala Elsherbini, Halliburton Investor Relations who will begin the call. Please go ahead.
Thank you good morning. Thank you for joining us today for the Reddy Ice Holdings conference call to discuss the company’s first quarter 2010 financial results.
Before I turn the call over to management, I'd like to review a few items. The company issued its first quarter earnings release this morning. And if you did not receive a copy, the release can be found on the Reddy Ice website at www.reddyice.com. Additionally, if you would like to be placed on the company's e-mail or fax distribution for future announcements please e-mail your request to email@example.com or call the office at Halliburton Investor Relations at 972-458-8000. You may also register to receive announcements through the Investor Relations portion of the company's website at www.reddyice.com. A replay of today's call will be available at approximately 1:00 PM Eastern Time, and can be accessed by dialing 1877-344-7529, and entering passcode number 439924. The telephone replay will be available through April 29th and the webcast will be available for approximately 90 days.
Before we begin, I would like to remind you that during the course of this conference call, management may make statements concerning the company's future prospects, business strategies and industry trends that are based on management's beliefs, as well as assumptions made by and information currently available to management. Such statements are considered forward-looking statements under the Private Securities Litigation Reform Act of 1995, and are subject to certain risks, uncertainties and assumptions, including known events and developments, which could cause actual results to differ materially from those that management might be describing during today's discussion.
Please refer to the company's filings with the Securities and Exchange Commission for more information on those risk factors. Please note that time sensitive information reported on this call is current as of today, April 21st, 2010 that may no longer be accurate at the time of any subsequent replay. Additionally, the company undertakes no obligation to publicly update or revise any forward-looking statements.
And now, I would like to turn the call over to Mr. Gil Cassagne, Chief Executive Officer of Reddy Ice's.
Thanks Hala. Good morning and thank you to everyone for joining us today. The purpose of this call is to discuss our 2010 first quarter results, as well as other items related to our business.
Before I report on our results I’d like to briefly comment on both the on going DOJ Investigation, related matters and our recent debt refinancing. The DOJ Investigation on the packaged ice industry is ongoing and we continue to cooperate just as we have since we’ve learned the investigation. Since our last earnings call there been a few developments with regards to the other companies in the industry that I would like to mention. Home city, which as you may recall pled guilty sometime ago to conspiring to allocate customers in Southeastern Michigan and the Detroit metropolitan area, was sentenced on March 2nd, 2010 and received a fine of 9 million with a payments schedule to be determined. This fine is in the same amount as that received by Arctic Glacier on February 11th, 2010.
As a reminder Reddy Ice does not now and has never conducted business anywhere in Michigan including Southeastern Michigan and the Detroit metropolitan area. In regard to the ongoing state and federal civil investigations there are no major developments.
Moving to the civil litigation for a moment, we filed motions to dismiss the direct purchaser and indirect purchaser claim in the multi-district antitrust litigation. We’ve also filed a motion to dismiss the shareholder class action those motions have been fully briefed by the parties, and are awaiting consideration by the judge. Our hiring regarding the motion to dismiss the direct purchaser complaint is set for June 24. There is no schedule for when the judge may rule on the motion to dismiss the direct purchaser action.
The shareholder derivative litigation in Taxes State court is still stayed and administratively closed. The next scheduled event in that case is a status conference in mid May. And finally, the McNulty case is proceeding with discovery in normal course.
As we said in the past, the Company intends to vigorously defend all of these cases. Due to the ongoing investigation by the DOJ and they send me advice of legal council. We will not hold a question-and-answer session on today’s call. Now I would also like to comment on our recent debt refinancing.
During the month of March, the Company completed the issuance of $300 million of 11.25, senior secured notes due 2015 and $139.4 million of 13.25, second lean senior secured notes due 2015 and entered into a new 35 million revolving credit facility with the group of banks.