Glacier Reports First Quarter Results

Glacier Media Inc. ("Glacier" or the "Company") (TSX:GVC) reported cash flow,
earnings and revenue for the period ended March 31, 2013.


Summary Results

Results are reported below on an adjusted basis to include the Company's share
of the results of its joint ventures. Management continues to base its operating
decisions and performance evaluation utilizing these results. Refer to Change in
Accounting Policy on page 5 for discussion of the accounting change and results
in accordance with IFRS.




----------------------------------------------------------------------------
thousands of dollars                 Three months ended   Three months ended
except share and per share amounts   March 31, 2013 (5)   March 31, 2012 (5)
----------------------------------------------------------------------------
Revenue                            $             76,840 $             76,421
EBITDA (1)                         $              7,889 $             10,878
EBITDA margin (1)                                 10.3%                14.2%
EBITDA per share (1)               $               0.09 $               0.12
Net income attributable to common                                           
 shareholders                      $              (430) $              2,914
Net income attributable to common                                           
 shareholders per share            $               0.00 $               0.03
Cash flow from operations                                                   
 (1)(2)(3)                         $              7,031 $              9,431
Cash flow from operations per                                               
 share (1)(2)(3)                   $               0.08 $               0.11
Debt net of cash outstanding                                                
 before deferred financing charges $            120,907 $            127,182
Dividends paid (4)                 $                  - $              2,770
Dividends paid per share (4)       $                  - $               0.03
Weighted average shares                                                     
 outstanding, net                            89,243,102           89,358,410
----------------------------------------------------------------------------
Notes:                                                                      
                                                                            
(1) Refer to "Non-IFRS Measures" section of the financial statements.       
                                                                            
(2) 2013 excludes $0.7 million of restructuring expense and $0.4 million of 
transaction and transition costs.                                           
                                                                            
(3) For non-recurring items excluded in the prior period, refer to          
previously reported financial statements.                                   
                                                                            
(4) Dividends totalling $1.8 million were declared in January 2013 and paid 
on April 5, 2013.                                                           
                                                                            
(5) These results are presented on an adjusted basis to include the         
Company's share of the results of its joint ventures, as management         
continues to base its operating decisions and performance evaluation        
utilizing adjusted results.                                                 



Highlights



--  For the three months ended March 31, 2013, Glacier's adjusted
    consolidated revenue increased 0.5% to $76.8 million from $76.4 million
    in the prior period. This increase was primarily due to the acquisition
    of control of Alta Newspaper Group Limited Partnership ("ANGLP")
    completed on April 1, 2012 as well as growth in a number of the
    Company's business information operations offset by continued weakness
    in community media operations; 
--  Adjusted consolidated earnings before interest, taxes, depreciation and
    amortization (EBITDA) decreased by 27.5% to $7.9 million from $10.9
    million; 
--  Adjusted cash flow from operations (before changes in non-cash operating
    accounts and non-recurring items) decreased 25.4% to $7.0 million; 
--  Adjusted net income attributable to common shareholders was $(0.4)
    million compared to net income of $2.9 million; 
--  Adjusted EBITDA per share decreased 27.5% to $0.09 from $0.12 for the
    period compared to the same period in the prior year and net income
    attributable to common shareholders per share decreased to $0.00 from
    $0.03 for the same period last year; 
--  Adjusted cash flow from operations (before changes in non-cash operating
    accounts and non-recurring items) per share decreased to $0.08 per share
    from $0.11 for the same period last year; 
--  The Company's adjusted results for the quarter were affected by the
    acquisition of control of ANGLP on April 1, 2012; whereby the adjusted
    results for the three months ended March 31, 2012 only include the
    Company's previous percentage ownership; and 
--  Glacier became a 50% partner in a new venture, Weather INnovations
    ("WIN") Consulting - created as the result of merging WeatherFarm (a
    former Canadian Wheat Board asset acquired by Glacier in late 2012) and
    Weather INnovations Inc. (an agricultural meteorology information
    business), of which Glacier acquired an interest in subsequent to March
    31, 2013. 



Review of Operations

Glacier Media Inc. ("Glacier" or the "Company") continued to generate strong
revenue, profit and cash flows from a number of its operations and through its
diversified base of information communications businesses. However, weaker
economic conditions in the quarter adversely affected operating results.
Business and trade information revenue weakened in some operations during the
three months ended March 31, 2013 due to softness in key economic sectors,
particularly those in which volatile commodity pricing affect business
information activity. Community media revenue continued to be softer compared to
the same period last year. Revenues and EBITDA in the community media operations
were affected by weaker conditions in the general economy and by related
national advertising softness, as well as digital competition. Consolidated
EBITDA was also affected by operating resource expense investments made to
strengthen some community media assets acquired from Postmedia, and increased
digital investment including a new real estate information portal, amongst other
things.


Many of the Company's business information operations continue to grow and
provide attractive opportunities for future growth in both existing and new
verticals through multi-platform offerings, including rich information products
and solutions. Community media operations continue to offer a strong value
proposition through local information they provide to readers and key marketing
channels they provide in the small community markets they serve across
complementary multi-media platforms. As mentioned, weaker economic conditions in
the first quarter adversely affected national advertising revenues - a trend
which appears to be largely cyclical. Digital competition exacerbated the weaker
economic conditions in the larger urban markets, but has been less of a factor
in the smaller regional markets.


Notwithstanding the current market softness, a variety of significant growth
opportunities are still available. The Company's strategy is to invest cash flow
generated from the community media operations and the business and trade
information operations in both operational opportunities and acquisitions. In
particular, the Company intends to increase capital allocated to business and
trade information acquisitions and growth opportunities, which includes internal
product development related technology investments. The Company also intends to
provide returns to shareholders through increasing dividends as well as share
buy-backs.


Sales Performance

Business Information

Many of Glacier's business and trade information operations continued to deliver
growth, with revenue increases generated across a wide variety of verticals -
driven by a diverse variety of product and information innovations. While in
some verticals this growth was slower than the prior year, the various products
and services still outperformed peer groups active in those sectors.


To the degree revenues have been adversely affected by general economic malaise,
a number of growth initiatives are being pursued and are generating strong sales
results, especially those associated with sectors of the economy which are
experiencing relatively stable conditions in a pan-Canadian context. This is a
result of a stronger inter-divisional collaboration framework created between
the various operations.


In particular, Glacier's business and trade information operations enjoyed
growth in the energy, environmental risk, environmental compliance networks,
medical and financial information sectors as a result of targeted initiatives
designed to align with growth areas within those sectors. Glacier's business and
trade information portfolio contains many brands that have decades of service in
their respective sectors. The intrinsic equity associated with these brands is a
key competitive advantage as the products evolve and extend.


In addition to core business and trade information print and digital sales,
management is focused on strategies designed to offer customers increasingly
richer value propositions. These include multi-platform solutions - with a key
focus on mobile offerings - designed to integrate more seamlessly with customer
decision-making processes, thus ensuring heightened levels of decision
dependency on specific information tools. Such dependence is enhanced through a
focus on effective pricing and targeted timing. Consequently, these information
tools are increasingly integrated in customer decision-making and as a result
sales efficiency, renewal and retention improves. This includes a focus on
advertising solutions that are underpinned by a strong economic development
framework. As a result, Glacier expects to develop increased business with
non-traditional customers.


Key efforts are under way to distinguish different types of digital content,
advertising and subscriptions based on research designed to highlight individual
industry sector needs. Premium subscription and related products are being
enhanced and developed with a particular focus on essential content, data,
search, interpretation, contextualization and analytics. A consistent focus on
various ways of enriching content results in improved rates for advertising
positioned alongside rich information.


Digital revenues now represent more than a quarter of Glacier's business and
trade information revenues and are growing steadily. Significant focus and
related investment will continue to be made to enhance Glacier's digital
business and trade information verticals, through both organic development and
new business acquisition. These acquisitions will be targeted to expand the
markets that Glacier covers, extend the breadth of information products and
marketing solutions provided, and to enrich Glacier's digital media staff,
technology and other relevant resources - all focused on consistently enhancing
"decision dependence".


Overall, the business and trade information operations and various markets offer
attractive opportunities for growth with high levels of profitability -
particularly when aligned with Glacier's leading position in key sectors. An
integration framework which permits management teams in various verticals to
remain entrepreneurial and market- focused will enhance the Company's ability to
service its key customers with more integrated solutions.


Community Media

Glacier's community media operations continue to experience weaker revenue
performance in a number of markets, primarily the result of softer national
advertising. The B.C. markets were affected by weaker economic conditions in
Victoria, the Lower Mainland and a variety of Vancouver Island and Northern
Interior markets. National advertising revenues were weaker in most markets,
which appear to be the result of cautiousness due to prevailing economic
conditions, as financial and government revenues have been significantly lower.
Digital competition also affected print spending levels, although this trend
primarily affected larger urban markets. Local advertising revenues were
resilient in both the existing markets where Glacier has operated and in some of
the Lower Mainland and Vancouver Island markets acquired from Postmedia -
although the Victoria market continues to struggle.


Operating expense investments are being made to improve the strength and
resources of the community media assets acquired from Postmedia in order to
increase competitiveness and sales effectiveness. Operating investments have
been partially offset by savings in overhead costs as a result of operational
alignments with Glacier's existing infrastructure. While it will take time to
strengthen and revitalize operations, it is encouraging that direct revenue
increases are being realized as investments are made. Digital investments are
also being made to exploit revenue opportunities of the larger markets, with a
specific focus on content delivery and advertising effectiveness.


While economic and market challenges have affected the community media
operations, management believes that these businesses remain strong and will
continue to generate solid cash flow given the nature of the markets in which
Glacier operates. This cash flow can be used to fund growth through both
internal investment and acquisition of digital business and trade information
and digital community media assets, as well as debt repayments, dividend
payments and share repurchases.


Glacier's small market community media operations offer a unique selling
proposition and competitive advantage through the local information that they
provide - of which they are a primary source - and the primary advertising and
marketing channels they offer. The value of community content is provided to
readers in print and online, by tablet and smartphone platforms. As described
above, a number of new digital sales products and strategies have been
introduced, and new digital sales and product staff are being hired and
technology investments are being made to drive these growth initiatives. Given
that the demand for local community information is expected to exist for the
long term, Glacier expects to be able to monetize the information and marketing
value. As 85% of Glacier's local newspaper distribution is free, this also
provides for a more durable reach of readership for advertisers over time
wherein total market coverage can always be provided. The attributes of these
community media operations are significantly different and stronger than larger
metropolitan paid daily newspapers, which have been reflected in the financial
performance of Glacier's community media group. An important advantage is that
being local often means being integrally rooted in the fabric of a community and
Glacier's community media management and staff work assiduously to remain tied
to the rhythms of the markets they serve.


Operational Performance

As stated, adjusted consolidated EBITDA decreased $3.0 million or 27.5% to $7.9
million compared to $10.9 million in the same period last year. While adjusted
consolidated revenues showed a slight increase on an overall dollar basis, due
to the acquisition of control of ANGLP, the economic environment and related
softness resulted in lower same- store EBITDA in certain trade information
businesses and in the community media operations.


Glacier's adjusted consolidated EBITDA margin decreased to 10.3% for the three
months ended March 31, 2013 from 14.2% for same period last year as a result of
softness in both community media and some business information operations.
Management will seek to improve these margins and profit performance through
improved print and digital sales effectiveness, cost efficiency and other
initiatives.


In accordance with IFRS, Glacier's EBITDA was $6.2 million for the three months
ended March 31, 2013, a decrease of $1.0 million or 13.7% and its EBITDA margin
decreased to 8.8% from 11.1% for the same period in the prior year. As discussed
above, the economic environment and related softness resulted in a lower
same-store revenue and EBITDA in certain trade information businesses and in the
community media operations.


EBITDA was also impacted by higher pension and post-retirement benefit costs,
accounting changes relating to certain business directory digital revenue
recognition, increased operating infrastructure investment made in digital media
management, staff, information technology and related resources, development of
a new real estate information portal, as well as other content and quality
related areas. These investments were made consistent with Glacier's
complementary media platform and product strategy and business and trade
information strategies.


Additional cost reduction measures are being implemented consistently with
management's strategy of maintaining strong product and editorial quality while
reducing operating costs where possible through initiatives that do not impact
quality, sales capacity or market and competitive positions.


Management is being careful to maintain appropriate levels of resources in staff
and technology as well as business development in order to facilitate long-term
revenue growth.


The complementary media platform and product strategy addresses both the risks
that digital media represents to the traditional print platform and the
opportunities digital media offers in Glacier's local community and business and
trade information markets. The strategy's premise is that customer utility and
value should drive platform utilization and product design and functionality.
Online, mobile, tablet and other information delivery devices will be fully
utilized, while print content and design quality will also be fully maintained.
While digital platforms offer many attractive new opportunities, print platforms
continue to offer effective utility to both readers and advertisers. Maintaining
strong print products also maintains strong brand image and awareness, which
increases the likelihood of success online. Studies of time spent across media
platforms and reader satisfaction support the complementary platform and product
strategy. Management expects that customer utility will vary over time and will
be affected by what Glacier and other media providers can creatively provide.
Management believes the complementary platform and product strategy will be
prudent for the foreseeable future, and will maximize revenue and profit
generation.


As indicated, the business and trade information strategies are focused on
increasing the value provided to customers through richer content, data and
analytic value and heightening customer decision dependence of Glacier's
products and services. This dependence moves Glacier's products and services
further up the value ladder, with the higher revenue, profitability and
recurring cash flow that this value proposition provides.


Financial Position

On an adjusted basis to include the Company's share of its joint ventures,
Glacier's consolidated debt net of cash outstanding before deferred financing
charges and other expenses was 2.55x trailing 12 months EBITDA as at March 31,
2013.


Including Glacier's joint ventures, the Company invested $2.1 million of capital
expenditures during the period primarily on its new printing facility at 50%
owned GWNLP and software related to the transition of the digital assets from
Postmedia. The investment capital expenditures are being made to generate direct
revenue and cash flow improvements and payback consistent with Glacier's
targeted return on investment, as well as quality improvements and other
benefits.


The Company (excluding its joint ventures) repaid $2.5 million of debt during
the three months ended March 31, 2013. Glacier's consolidated debt net of cash
outstanding before deferred financing charges was $118.5 million as at March 31,
2013.


As previously reported, in March 2013, an affiliate of the Company received
correspondence from Canada Revenue Agency ("CRA") proposing to issue a notice of
reassessment with respect to the utilization of non-capital losses by the
affiliate, pertaining to taxation years 2008 to 2011. The Company believes that
it has reported its tax position appropriately and believes the Company's
affiliate has substantial defences to the matters raised by the CRA; however,
should the proposed reassessment by CRA ultimately be upheld against the
Company's affiliate, the resulting payment would materially affect the Company's
financial statements and cash flows. Notwithstanding, the Company's affiliate
has the financial capacity to pay such amounts, if any. The likely timing to
resolve this matter may take years.


Change in accounting policy

As a result of a change in IFRS accounting policies effective January 1, 2013,
the Company is now required to account for its joint ventures under the equity
method. Previously, the Company's joint ventures were accounted for using
proportionate consolidation. As a result of the change in accounting, the
Company no longer presents the revenues, expenses, assets and liabilities of its
share of these operations in the Company's results on a line by line basis. The
Company now carries its interest as a net investment on its balance sheet and
includes the net results from these operations in its statement of operations as
earnings from joint ventures and associates.


Despite this accounting change, management believes that including its share of
revenues and expenses in the Company's results (consistent with its prior
accounting treatment) provides an important basis for assessing the overall
operations of the Company. The table below adjusts the Company's reported
results under IFRS to include the revenues and expenses of its joint ventures,
consistent with its historical presentation. Management continues to base its
operating decisions and performance evaluation using the adjusted results and
has reported its results above on this basis.




----------------------------------------------------------------------------
                                               Three months ended           
                                               March 31, 2013 (4)           
                                                                            
thousands of dollars                         Per    Adjustment              
except share and per share amounts          IFRS           (4)      Adjusted
----------------------------------------------------------------------------
                                                                            
Revenue                            $      70,526 $       6,314 $      76,840
EBITDA (1)                         $       6,232 $       1,657 $       7,889
EBITDA margin (1)                           8.8%                       10.3%
EBITDA per share (1)               $        0.07               $        0.09
Net income attributable to common                                           
 shareholders                      $       (368) $        (62) $       (430)
Net income attributable to common                                           
 shareholders per share            $        0.00               $        0.00
Cash flow from operations                                                   
 (1)(2)(3)                         $       5,685 $       1,346 $       7,031
Cash flow from operations per                                               
 share (1)(2)(3)                   $        0.06               $        0.08
Debt net of cash outstanding                                                
 before deferred financing charges $     118,494 $       2,413 $     120,907
Weighted average shares                                                     
 outstanding, net                     89,243,102                  89,243,102
----------------------------------------------------------------------------

----------------------------------------------------------------------------
                                               Three months ended           
                                               March 31, 2012 (4)           
                                                                            
thousands of dollars                         Per    Adjustment              
except share and per share amounts          IFRS           (4)      Adjusted
----------------------------------------------------------------------------
                                                                            
Revenue                            $      64,859 $      11,562 $      76,421
EBITDA (1)                         $       7,221 $       3,657 $      10,878
EBITDA margin (1)                          11.1%                       14.2%
EBITDA per share (1)               $        0.08               $        0.12
Net income attributable to common                                           
 shareholders                      $       2,746 $         168 $       2,914
Net income attributable to common                                           
 shareholders per share            $        0.03               $        0.03
Cash flow from operations                                                   
 (1)(2)(3)                         $       5,757 $       3,674 $       9,431
Cash flow from operations per                                               
 share (1)(2)(3)                   $        0.06               $        0.11
Debt net of cash outstanding                                                
 before deferred financing charges $     111,167 $      16,015 $     127,182
Weighted average shares                                                     
 outstanding, net                     89,358,410                  89,358,410
----------------------------------------------------------------------------
(1) Refer to "Non-IFRS Measures" section for calculation of non-IFRS        
measures used in this table.                                                
                                                                            
(2) 2013 excludes $0.7 million of restructuring expense and $0.4 million of 
transaction and transition costs.                                           
                                                                            
(3) For non-recurring items excluded in the prior period, refer to          
previously reported financial statements.                                   
                                                                            
(4) Adjustment to include the Company's share of revenues, expenses and cash
flows from its joint venture operations consistent with the Company's       
treatment on a historical basis and prior to implementing the new accounting
standards.                                                                  



For the three months ended March 31, 2013, excluding its share of revenues and
expenses from its joint ventures and in accordance with IFRS, consolidated
revenues were $70.5 million, an increase of 8.7% over the same period in the
prior year; EBITDA was $6.2 million, a decrease of $1.0 million or 13.7%; and
cash flow from operations was $5.7 million, a decrease of $0.1 million or 1.3%.
On a per share basis, EBITDA decreased $0.01 for the three months ended March
31, 2013, and cash flow from operations was $0.06, the same as the prior year.
Under IFRS, the results of ANGLP are included in the statement of operations as
earnings from joint ventures and associates for the three months ended March 31,
2012.


Acquisitions

Glacier continued its strategy of acquiring businesses that provide high-value
data and information by becoming a 50% partner in a new venture, Weather
INnovations ("WIN") Consulting - created as the result of merging WeatherFarm (a
former Canadian Wheat Board asset acquired by Glacier in late 2012) and Weather
INnovations Inc. (an agricultural meteorology business), of which Glacier
acquired an interest in subsequent to March 31, 2013. The partnership blends two
key weather information provision systems that enable farmers and other crop
producers to make near real-time decisions for operations such as seeding,
spraying and harvesting. As well, the partnership will provide predictive
modeling tools to manage disease and pest threats. The new business will operate
closely with Glacier's existing agriculture portfolio of products and services.


Outlook and Summary

While economic conditions have adversely impacted some community media
operations and business and trade information verticals and digital competition
is stronger in the larger community media markets, management expects that
growth will continue in most of Glacier's business and trade information
operations, as well as a variety of community media markets where local market
conditions are stronger. In this regard, management will continue to closely
monitor economic conditions in various markets and verticals to ensure
appropriate decisions are made in a timely fashion.


Management will focus in the short-term on a balance of reducing certain
operating expenses where appropriate, paying down debt, integrating the
operations acquired, enhancing existing operations, targeting select acquisition
opportunities and returning value to shareholders.


Given continued significant cash flow resulting from operations and acquisitions
as indicated, an increasing portion of cash generated can also be returned to
shareholders through increased dividends. In January 2013, the Board of
Directors reviewed the Company's dividend policy and announced a 33% increase in
the annual dividend to $0.08 from $0.06 per share - to be paid quarterly instead
of semi-annually, the first dividend of which was paid on April 5, 2013. The
second quarterly dividend of $0.02 per share has been declared on May 14, 2013,
to shareholders of record on June 14, 2013 and payable on July 5, 2013.


As indicated, significant focus and related investment will continue to be made
to enhance Glacier's business and trade information verticals, through both
organic development and acquisition. These acquisitions will be targeted to
expand markets that Glacier covers; expand the breadth of information products
and marketing solutions; and expand Glacier's digital media staff, technology
and related resources.


Management will continue to seek a balance of maintaining debt at manageable
levels and delivering growth through both operations and acquisitions. In
particular, management will seek to time investment in the acquisition and
organic growth opportunities to allow cash flow from operations to be used to
pay down the increased borrowings incurred in the fourth quarter of 2011.


Shares in Glacier are traded on the Toronto Stock Exchange under the symbol GVC.

About the Company: Glacier Media Inc. is an information communications company
focused on the provision of primary and essential information and related
services through print, electronic and online media. Glacier is pursuing this
strategy through its core businesses: the local newspaper, trade information and
business and professional information markets.


Financial Measures

To supplement the consolidated financial statements presented in accordance with
International Financial Reporting Standards (IFRS), Glacier uses certain
non-IFRS measures that may be different from the performance measures used by
other companies. These non-IFRS measures include cash flow from operations
(before changes in non-cash operating accounts and non-recurring items), net
income attributable to common shareholders before non-recurring items and
earnings before interest, taxes, depreciation and amortization (EBITDA), which
are not alternatives to IFRS financial measures. Management focuses on operating
cash flow per share as the primary measure of operating profitability, free cash
flow and value. EBITDA per share is also an important measure as the Company has
low ongoing capital expenditures and depreciation and amortization largely
relates to acquisition goodwill and copyrights and does not represent a
corresponding sustaining capital expense. These non-IFRS measures do not have
any standardized meanings prescribed by IFRS and accordingly they are unlikely
to be comparable to similar measures presented by other issuers.


Forward-Looking Statements

This news release contains forward-looking statements that relate to, among
other things, the Company's objectives, goals, strategies, intentions, plans,
beliefs, expectations and estimates. These forward-looking statements include,
among other things, statements under the headings "Review of Operations, "Sales
Performance", "Operational Performance" and "Outlook and Summary" and statements
relating to the Company's expectations regarding revenues, expenses, cash flows
and future profitability, including its expectations that growth will continue
in Glacier's business segments, its expectations as to acquisitions and organic
revenue and profitability growth, that cost savings will be realized, and that
annual dividends are expected to be declared, and that the Company expects to
repurchase shares. These forward looking statements are based on certain
assumptions, including continued economic growth and recovery and the
realization of cost savings, and are subject to risks, uncertainties and other
factors which may cause results, performance or achievements of the Company to
be materially different from any future results, performance or achievements
expressed or implied by such forward-looking statements, and undue reliance
should not be placed on such statements.


Important factors that could cause actual results to differ materially from
these expectations are listed in the Company's Annual Information Form under the
heading "Risk Factors" and in the Company's MD&A under the heading "Business
Environment and Risks", many of which are out of the Company's control. These
factors include, but are not limited to, the ability of the Company to sell
advertising and subscriptions related to its publications, foreign exchange rate
fluctuations, the seasonal and cyclical nature of the agricultural industry,
discontinuation of the Department of Canadian Heritage's Canada Periodical Fund,
general market conditions in both Canada and the United States, changes in the
prices of purchased supplies including newsprint, the effects of competition in
the Company's markets, dependence on key personnel, integration of newly
acquired businesses, technological changes, tax risk and financing and debt
service risk.


The forward-looking statements made in this news release relate only to events
or information as of the date on which the statements are made. Except as
required by law, the Company undertakes no obligation to update or revise
publicly any forward-looking statements, whether as a result of new information,
future events or otherwise, after the date on which the statements are made or
to reflect the occurrence of unanticipated events.



FOR FURTHER INFORMATION PLEASE CONTACT: 
Glacier Media Inc.
Mr. Orest Smysnuik
Chief Financial Officer
604-708-3264