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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