AMCON Distributing Company (“AMCON”) (NYSE MKT:DIT), an Omaha,
Nebraska based consumer products company is pleased to announce
fully diluted earnings per share of $1.04 on net income available
to common shareholders of $0.7 million for the fiscal quarter ended
March 31, 2015.
“We are making a number of targeted investments within our
wholesale business. In particular, we continue to develop our
technology infrastructure and proprietary applications to enhance
our customers’ experience and profitability. Additionally, we are
expanding our refrigerated and temperature controlled trucking
fleet. These investments are specifically designed to capitalize on
our convenience store customers increasing demand for new
foodservice offerings and technological needs,” said Christopher H.
Atayan, AMCON’s Chairman and Chief Executive Officer. He further
noted “We expect that we will continue to invest in our wholesale
business to maintain our leadership position in the industry and
are seeking acquisitions that can benefit from our extensive
platform of customer services.”
“In late March, we hosted our annual spring trade show in Kansas
City. This is our largest customer event of the year and once
again, we enjoyed outstanding attendance from both existing and
prospective customers. Our sales and merchandising teams are
working closely with customers as the spring sales season kicks
off. As convenience store traffic increases, fully capturing and
maximizing this opportunity is an important focus for our
customers,” said Kathleen M. Evans, President of AMCON’s Wholesale
Distribution Segment.
“The retail health food operating environment in the markets we
operate remains highly competitive. Both national and regional
chains are pursuing aggressive expansion efforts and continue to
open new stores. Our management team has been focused on a variety
of initiatives designed to enhance the operating economics of each
retail store. These efforts include a targeted focus on the major
business drivers such as inventory rationalization, merchandising,
store staffing mix, and expense management,” said Eric Hinkefent,
President of AMCON’s Retail Health Food Segment.
Each of AMCON’s business segments reported solid quarters. The
wholesale distribution segment reported revenues of $279.2 million
and operating income before depreciation and amortization of $3.0
million for the second fiscal quarter of 2015. The retail health
food segment reported revenues of $8.2 million and operating income
before depreciation and amortization of $0.6 million for the same
period.
“We actively manage our working capital and seek opportunities
to use our liquidity to our benefit,” said Andrew C. Plummer,
AMCON’s Chief Financial Officer. Plummer added, “We are also using
the lower cost energy environment to make additional investments in
our refrigerated fleet. These capital improvements enhance our
ability to support our foodservice business but the refrigeration
also increases overall fuel consumption company wide. We were
pleased to close the March 31, 2015 quarter with shareholders’
equity of $58.6 million and consolidated debt of $35.9
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 Subsidiaries
Condensed Consolidated Balance Sheets March 31, 2015 and
September 30, 2014 March
September 2015 2014 (Unaudited)
ASSETS Current assets: Cash $ 189,559 $ 99,922
Accounts receivable, less allowance for
doubtful accounts of $0.9 million and $0.8 million at March 2015
and September 2014, respectively
30,847,526 33,286,932 Inventories, net 65,521,673 43,635,266
Deferred income taxes 1,353,082 1,606,168 Prepaid and other current
assets
3,325,626
5,034,570 Total current assets 101,237,466
83,662,858 Property and equipment, net 13,388,517 13,763,140
Goodwill 6,349,827 6,349,827 Other intangible assets, net 4,273,478
4,455,978 Other assets
336,357
448,149 $ 125,585,645
$ 108,679,952
LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities:
Accounts payable $ 16,627,660 $ 16,412,895 Accrued expenses
5,978,844 6,891,308 Accrued wages, salaries and bonuses 1,977,298
2,647,969 Income taxes payable 26,476 1,603,614 Current maturities
of long-term debt
346,057
341,190 Total current liabilities 24,956,335
27,896,976 Credit facility 31,963,666 15,081,783 Deferred
income taxes 3,469,673 3,484,204 Long-term debt, less current
maturities 3,561,053 3,735,702 Other long-term liabilities 134,980
139,003
Series A cumulative, convertible preferred
stock, $.01 par value 100,000 shares authorized, issued, and
outstanding, and a total liquidation preference of $2.5 million at
both March 2015 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 March 2015 and September 2014, and a
total liquidation preference of $0.4 million at both March 2015 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 March 2015 and
602,411 shares outstanding at September 2014
6,811 6,677 Additional paid-in capital 14,743,839 13,571,909
Retained earnings 49,814,791 47,829,201 Treasury stock at cost
(5,965,503 )
(5,965,503 ) Total shareholders’ equity
58,599,938
55,442,284 $
125,585,645 $
108,679,952 AMCON Distributing
Company and Subsidiaries Condensed Consolidated Unaudited
Statements of Operations for the three and six months ended
March 31, 2015 and 2014 For the
three months For the six months ended March
ended March 2015
2014 2015
2014
Sales (including excise taxes of $87.4
million and $85.7 million, and $184.4 million and $183.1 million,
respectively)
$ 287,443,864 $ 272,421,788 $ 602,877,340 $ 578,047,345 Cost of
sales
269,710,529
254,801,826 565,617,473
540,786,320 Gross profit
17,733,335 17,619,962
37,259,867
37,261,025
Selling, general and administrative
expenses
15,485,757 15,812,174 31,666,879 32,304,437 Depreciation and
amortization
590,857
628,834 1,167,162
1,252,874 16,076,614
16,441,008
32,834,041 33,557,311
Operating income
1,656,721
1,178,954 4,425,826
3,703,714 Other expense (income):
Interest expense 194,375 222,624 431,517 524,619 Other (income),
net
(35,987 )
(38,955 )
(43,054 )
(69,186 )
158,388 183,669
388,463 455,433
Income from operations before income tax expense 1,498,333
995,285 4,037,363 3,248,281 Income tax expense
729,000 464,000
1,722,000 1,429,000
Net income 769,333 531,285 2,315,363 1,819,281 Preferred
stock dividend requirements
(48,108 )
(48,108 )
(97,285 )
(97,285 ) Net income available to common shareholders
$ 721,225 $
483,177 $ 2,218,078
$ 1,721,996
Basic earnings per share available to common shareholders $ 1.17 $
0.79 $ 3.61 $ 2.79 Diluted earnings per share available to common
shareholders $ 1.04 $ 0.72 $ 3.15 $ 2.46 Basic weighted
average shares outstanding 615,822 611,432 614,173 616,888 Diluted
weighted average shares outstanding 737,180 737,461 735,599 739,223
AMCON Distributing Company and Subsidiaries
Condensed Consolidated Unaudited Statements of Cash Flows
for the six months ended March 31, 2015 and 2014
2015
2014 CASH FLOWS FROM OPERATING
ACTIVITIES: Net income $ 2,315,363 $ 1,819,281
Adjustments to reconcile net income from
operations to net cash flows from operating activities:
Depreciation 984,662 1,070,374 Amortization 182,500 182,500 (Gain)
loss on sale of property and equipment 7,036 (24,746 ) Equity-based
compensation 607,661 717,821 Deferred income taxes 238,555 462,447
Provision for losses on doubtful accounts 159,999 132,000 Provision
for losses (recoveries) on inventory obsolescence (34,189 ) (1,121
) Other (4,023 ) (4,023 ) Changes in assets and liabilities:
Accounts receivable 2,279,407 1,356,409 Inventories (21,852,218 )
(2,474,084 ) Prepaid and other current assets 1,708,944 5,700 Other
assets 111,792 13,054 Accounts payable 200,996 (34,071 ) Accrued
expenses and accrued wages, salaries and bonuses (862,235 )
(1,565,640 ) Income tax payable
(1,577,138 )
(1,618,592 ) Net cash flows from operating
activities (15,532,888 ) 37,309 CASH FLOWS FROM INVESTING
ACTIVITIES: Purchases of property and equipment (611,106 )
(1,362,832 ) Proceeds from sales of property and equipment 7,800
29,969 Acquisition
—
(513,938 ) Net cash flows from investing
activities (603,306 ) (1,846,801 ) CASH FLOWS FROM FINANCING
ACTIVITIES: Net borrowings on bank credit agreements 16,881,883
4,926,619 Principal payments on long-term debt (169,782 ) (607,923
) Repurchase of Series B Convertible Preferred Stock and common
stock — (1,941,918 ) Dividends paid on convertible preferred stock
(97,285 ) (97,285 ) Dividends on common stock (232,488 ) (239,362 )
Withholdings on the exercise of equity-based awards
(156,497 )
(109,115 ) Net cash
flows from financing activities
16,225,831
1,931,016 Net change in
cash 89,637 121,524
Cash, beginning of period
99,922 275,036
Cash, end of period
$ 189,559
$ 396,560
2015 2014 Supplemental
disclosure of cash flow information: Cash paid during the period
for interest $ 403,758 $ 523,081 Cash paid during the period for
income taxes 3,060,584 2,585,145 Supplemental disclosure of
non-cash information: Equipment acquisitions classified as accounts
payable 48,754 152,311
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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