Reddy Ice Holdings, Inc. (FRZ)
Q2 2010 Earnings Call
August 5, 2010 10:00 AM ET
Hala Elsherbini – Halliburton, Investor Relations
Gil Cassagne – Chief Executive Officer
Steve Janusek – Chief Financial Officer
Previous Statements by FRZ
» Reddy Ice Holdings, Inc. Q1 2010 Earnings Call Transcript
» Reddy Ice Holdings Q4 2008 Earnings Call Transcript
» Reddy Ice Holdings Inc. Q2 2008 Earnings Call Transcript
Hello. And welcome to the Reddy Ice Holdings Incorporated Fiscal Year 2010 Second 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 in part is not permitted without prior written authorization of Reddy Ice Holdings. And as a reminder, this conference is being recorded today, Thursday, August 5, 2010.
I would like to turn the call over to Hala Elsherbini, Halliburton Investor Relations, who will begin the call. Please go ahead.
Thank you, Tony. Good morning, everybody. And thank you for joining us today for the Reddy Ice Holdings conference call to discuss the company’s second quarter 2010 financial results. Before I turn the call over to management, I would like to review a few items.
The company issued its second 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 offices 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 telephone replay will be available through August 12th at approximately 1 PM Eastern Time and can be accessed by dialing 1-877-344-7529, and entering passcode number 442795, and the webcast will be available for about -- 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, August 5, 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.
I would now like to turn the call over to Mr. Gil Cassagne, Chief Executive Officer of Reddy Ice.
Thanks, Hala. Good morning, and thank you to everyone for joining us today. The purpose of our call is to discuss our 2010 second quarter results, as well as, other items related to our business. Before I report on our results, I’d like to briefly comment on the DoJ investigation and related matters.
The DoJ investigation of the packaged ice industry is ongoing and we continue to cooperate, just as we have since we learned of the investigation. Since our last earnings call, there have not been any material developments in the investigation. There have also been no significant developments in the other ongoing government investigations.
Moving to the civil litigation for a moment, several months ago, we filed motions to dismiss direct purchaser and indirect purchaser claims in the multi-district antitrust litigation. The motion to dismiss relating to the direct purchaser claims was denied by the court on July 1, 2010. That portion of the litigation is now moving into the discovery phase. The motion related to the indirect purchaser claims has been fully briefed by the parties and is awaiting consideration by the judge.
In March of this year, two periodic class action statements of claims were filed against us in two different courts in Canada. A status conference has been held in the matter pending in Ontario and a schedule was set for proceedings related to the plaintiff’s motion for certification of the class. We have not been served with the second statement of claim, which is pending in Alberta.
Moving to the shareholder class action, we filed a motion to dismiss the shareholder class action several months ago. The motions related to this case have been fully briefed by the parties and are awaiting consideration by the judge. Also, the shareholder derivative litigation in Texas State Court is now set for trial on August 2, 2011.
And finally, the McNulty case continues to proceed with discovery in the normal course. As we’ve said in the past, the company continues to vigorously defend all of these cases. As with our past conference calls, due to the ongoing investigation by the DoJ and based on the advice of legal counsel, we will not hold a question-and-answer session on today’s call.
Now turning to the financial results for the second quarter, packaged ice volumes for the quarter were up from last year’s second quarter, primarily as a result of a more stable, although still challenging, economic environment, improved weather conditions and net account gains. This is the first quarter with volume and revenue growth, since the fourth quarter of 2007 and we are cautiously optimistic that we are turning the corner in regards to volume trends.