AMCON Distributing Company (“AMCON”) (NYSE MKT:DIT), an Omaha, Nebraska based consumer products company is pleased to announce fully diluted earnings per share of $2.11 on net income available to common shareholders of $1.5 million for the fiscal quarter ended December 31, 2014.

“We are pleased with our start to fiscal 2015. Our relentless focus on customer service and reliability leads to a virtuous circle of profitability for our Customers and AMCON,” said Christopher H. Atayan, AMCON’s Chairman and Chief Executive Officer. He further noted, “Our focused strategic plan continues to position us as a leader in the Convenience Distribution industry. AMCON is actively seeking acquisitions that can benefit from our extensive platform of services.”

“One of our goals is to develop our business in higher margin non-traditional products. In particular, foodservice continues to be an area of focus as our sales in this category grow,” said Kathleen M. Evans, President of AMCON’s Wholesale Distribution Segment.

“Industry growth in the retail health food sector has led to greater competition from new market entrants and has pressured sales. We have carefully rationalized our expense structure while maintaining our customary high level of customer service,” said Eric Hinkefent, President of AMCON’s Retail Health Food Segment.

“We continue to invest in information technology for internal and external purposes as well as our foodservice capability across the entire Company now that the Rapid City, South Dakota expansion is complete,” said Andrew C. Plummer, AMCON’s Chief Financial Officer. Plummer added, “The nationwide trend of lower fuel prices helps our expense structure; however, our emphasis on growing the foodservice category requires refrigerated delivery equipment that increases fuel consumption. Additionally, we are logging more miles as we expand our territory to better serve our customers. We were pleased to close the December 31, 2014 quarter with shareholders’ equity of $58.0 million and consolidated debt of $24.8 million.”

AMCON is a leading wholesale distributor of consumer products, including beverages, candy, tobacco, groceries, foodservice, frozen and chilled foods, and health and beauty care products with locations in Illinois, Missouri, Nebraska, North Dakota, South Dakota and Tennessee. AMCON also operates sixteen (16) health and natural product retail stores in the Midwest and Florida. The retail stores operate under the names Chamberlin's Market & Cafe www.chamberlins.com and Akin’s Natural Foods Market www.akins.com.

This news release contains forward-looking statements that are subject to risks and uncertainties and which reflect management's current beliefs and estimates of future economic circumstances, industry conditions, Company performance and financial results. A number of factors could affect the future results of the Company and could cause those results to differ materially from those expressed in the Company's forward-looking statements including, without limitation, availability of sufficient cash resources to conduct its business and meet its capital expenditures needs and the other factors described under Item 1.A. of the Company’s Annual Report on Form 10-K. Moreover, past financial performance should not be considered a reliable indicator of future performance. Accordingly, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 with respect to all such forward-looking statements.

Visit AMCON Distributing Company's web site at: www.amcon.com

   

AMCON Distributing Company and SubsidiariesCondensed Consolidated Balance SheetsDecember 31, 2014 and September 30, 2014

 

 

December2014

September2014

(Unaudited) ASSETS Current assets: Cash $ 173,707 $ 99,922 Accounts receivable, less allowance for doubtful accounts of $1.0 million and $0.8 million at December 2014 and September 2014, respectively 33,408,314 33,286,932 Inventories, net 47,495,141 43,635,266 Deferred income taxes 1,245,371 1,606,168 Prepaid and other current assets   6,578,677     5,034,570   Total current assets 88,901,210 83,662,858   Property and equipment, net 13,629,797 13,763,140 Goodwill 6,349,827 6,349,827 Other intangible assets, net 4,364,728 4,455,978 Other assets   316,706     448,149   $ 113,562,268   $ 108,679,952   LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 16,264,507 $ 16,412,895 Accrued expenses 5,408,114 6,891,308 Accrued wages, salaries and bonuses 2,080,691 2,647,969 Income taxes payable 491,450 1,603,614 Current maturities of long-term debt   343,777     341,190   Total current liabilities 24,588,539 27,896,976   Credit facility 20,812,554 15,081,783 Deferred income taxes 3,502,668 3,484,204 Long-term debt, less current maturities 3,648,704 3,735,702 Other long-term liabilities 136,991 139,003  

Series A cumulative, Convertible Preferred Stock, $.01 par value 100,000 shares authorized and issued, and a total liquidation preference of $2.5 million at both December 2014 and September 2014.

2,500,000 2,500,000

Series B cumulative, Convertible Preferred Stock, $.01 par value 80,000 shares authorized, 16,000 shares issued and outstanding at both December 2014 and September 2014, and a total liquidation preference of $0.4 million at both December 2014 and September 2014.

400,000 400,000  

Shareholders’ equity:

Preferred stock, $.01 par value, 1,000,000 shares authorized, 116,000 shares outstanding and issued in Series A and B referred to above

— —

Common stock, $.01 par value, 3,000,000 shares authorized, 615,822 shares outstanding at December 2014 and 602,411 shares outstanding at September 2014

6,811 6,677 Additional paid-in capital 14,721,867 13,571,909 Retained earnings 49,209,637 47,829,201 Treasury stock at cost   (5,965,503 )   (5,965,503 ) Total shareholders’ equity   57,972,812     55,442,284   $ 113,562,268   $ 108,679,952    

AMCON Distributing Company and SubsidiariesCondensed Consolidated Unaudited Statements of Operationsfor the three months ended December 31, 2014 and 2013

    2014 2013 Sales (including excise taxes of $96.9 million and $97.3 million at December 2014 and December 2013, respectively) $ 315,433,476 $ 305,625,557 Cost of sales   295,906,944     285,984,494   Gross profit   19,526,532     19,641,063     Selling, general and administrative expenses 16,181,122 16,492,263 Depreciation and amortization   576,305     624,040     16,757,427     17,116,303   Operating income   2,769,105     2,524,760   Other expense (income): Interest expense 237,142 301,995 Other (income), net   (7,067 )   (30,231 )   230,075     271,764   Income from operations before income tax expense 2,539,030 2,252,996 Income tax expense   993,000     965,000   Net income 1,546,030 1,287,996 Preferred stock dividend requirements   (49,177 )   (49,177 ) Net income available to common shareholders $ 1,496,853   $ 1,238,819       Basic earnings per share available to common shareholders $ 2.44 $ 1.99 Diluted earnings per share available to common shareholders 2.11 1.73   Basic weighted average shares outstanding 612,560 622,226 Diluted weighted average shares outstanding 734,256 744,568      

AMCON Distributing Company and SubsidiariesCondensed Consolidated Unaudited Statements of Cash Flowsfor the three months ended December 31, 2014 and 2013

  2014 2013 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 1,546,030 $ 1,287,996

Adjustments to reconcile net income from operations to net cash flows from operating activities:

Depreciation 485,055 532,790 Amortization 91,250 91,250 (Gain) loss on sale of property and equipment 12,036 (7,704 ) Equity-based compensation 289,551 342,160 Deferred income taxes 379,261 484,838 Provision for losses on doubtful accounts 186,750 130,000 Provision for losses on inventory obsolescence 10,420 38,803 Other (2,012 ) (2,011 )   Changes in assets and liabilities: Accounts receivable (308,132 ) (3,838,855 ) Inventories (3,870,295 ) (4,900,694 ) Prepaid and other current assets (1,544,107 ) (2,030,838 ) Other assets 131,443 64,798 Accounts payable (174,140 ) 995 Accrued expenses and accrued wages, salaries and bonuses (1,033,434 ) (928,307 ) Income tax payable   (1,112,164 )   (1,669,022 ) Net cash flows from operating activities (4,912,488 ) (10,403,801 )   CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and equipment (340,796 ) (985,678 ) Proceeds from sales of property and equipment   2,800     9,320   Net cash flows from investing activities (337,996 ) (976,358 )   CASH FLOWS FROM FINANCING ACTIVITIES: Net borrowings on bank credit agreements 5,730,771 13,908,025 Principal payments on long-term debt (84,411 ) (302,076 ) Repurchase of common stock and Series B Convertible Preferred Stock ― (1,941,918 ) Dividends paid on convertible preferred stock (49,177 ) (49,177 ) Dividends on common stock (116,417 ) (120,628 ) Withholdings on the exercise of equity-based awards   (156,497 )   (62,713 ) Net cash flows from financing activities   5,324,269     11,431,513     Net change in cash

73,785

51,354

 

Cash, beginning of period

  99,922     275,036   Cash, end of period $ 173,707   $ 326,390         2014 2013 Supplemental disclosure of cash flow information: Cash paid during the period for interest $ 223,385 $ 274,796 Cash paid during the period for income taxes 1,725,903 2,149,184   Supplemental disclosure of non-cash information: Equipment acquisitions classified as accounts payable $ 60,737 $ 60,332 Issuance of common stock in connection with the vesting and exercise of equity-based awards. 1,240,842 1,154,869  

AMCON Distributing CompanyChristopher H. Atayan, 402-331-3727

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