AMCON Distributing Company (“AMCON”) (NYSE MKT:DIT), an Omaha,
Nebraska based consumer products company is pleased to announce
fully diluted earnings per share of $2.62 on net income available
to common shareholders of $1.8 million for the fiscal quarter ended
June 30, 2016.
“The convenience sector continues to embrace fresh and on-the-go
food offerings that enhance their ability to effectively compete
against quick service restaurants for consumer dollars,” said
Christopher H. Atayan, AMCON’s Chairman and Chief Executive
Officer. Atayan continued, “AMCON has developed robust programs and
expanded its capabilities in foodservice and technology to support
our customers as they continue to evolve their stores. We have a
long-term commitment to building partnerships with our customers
and suppliers alike.” He further noted, “we are actively seeking
acquisitions that can benefit from our extensive platform of
customer service.”
For the third fiscal quarter, the wholesale distribution segment
reported revenues of $326.9 million, operating income of $4.9
million, and operating income before depreciation and amortization
of $5.3 million. Our retail health food segment reported revenues
of $6.5 million, an operating loss of $0.1 million, and break even
operating income before depreciation and amortization for the same
period.
“Our customers can count on our sales and marketing teams’
expertise in store design, product and program selection, and
product placement to help them maximize sales and profitability
particularly during the critical peak sales season. The investments
we’ve made in our refrigerated trucking fleet have proven to be a
competitive advantage as we are increasingly placing more emphasis
on our foodservice offerings,” said Kathleen M. Evans, President of
AMCON’s Wholesale Distribution segment.
“We are proactively taking steps to respond to the competitive
environment that we operate in. We are focused on developing an
enhanced shopping experience that builds on our key historical
strengths of customer service and product selection,” said Eric
Hinkefent, President of AMCON’s Retail Health Food Segment.
“We take a conservative approach to managing our balance sheet.
The emphasis we place on working capital and liquidity provides us
a competitive advantage in both of our business segments. We are
able to move decisively when opportunities manifest themselves,”
said Andrew C. Plummer, AMCON’s Chief Financial Officer. “We were
pleased to close the June 30, 2016 quarter with shareholders’
equity of $62.2 million and consolidated debt of $17.2
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 fifteen (15) 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
June 30, 2016 and September 30,
2015
June September 2016 2015
(Unaudited) ASSETS Current assets: Cash $ 414,997 $
219,536 Accounts receivable, less allowance for doubtful accounts
of $0.8 million at June 2016 and $0.9 million at September 2015
33,932,942 31,866,787 Inventories, net 50,670,660 60,793,478
Deferred income taxes 1,404,470 1,553,726 Income taxes receivable —
113,238 Prepaid and other current assets 5,446,628
2,125,908 Total current assets 91,869,697 96,672,673
Property and equipment, net 12,362,980 12,753,145 Goodwill
6,349,827 6,349,827 Other intangible assets, net 3,825,561
4,090,978 Other assets 289,287 317,184
$ 114,697,352 $ 120,183,807
LIABILITIES AND
SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $
17,997,838 $ 17,044,726 Accrued expenses 6,847,950 7,224,963
Accrued wages, salaries and bonuses 3,423,813 3,282,354 Income
taxes payable 363,114 — Current maturities of long-term debt
359,737 351,383 Total current liabilities
28,992,452 27,903,426 Credit facility 13,708,439 20,902,207
Deferred income taxes 3,785,570 3,696,098 Long-term debt, less
current maturities 3,113,288 3,384,319 Other long-term liabilities
29,826 34,860 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 June 2016 and
September 2015 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 June 2016 and September 2015,
and a total liquidation preference of $0.4 million at both June
2016 and September 2015 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, 587,185 shares outstanding and issued at June
2016 and 621,104 shares outstanding and issued at September 2015
7,197 7,061 Additional paid-in capital 16,676,738 15,509,199
Retained earnings 57,209,248 53,527,606 Treasury stock at cost
(11,725,406 ) (7,680,969 ) Total shareholders’ equity
62,167,777 61,362,897 $ 114,697,352
$ 120,183,807
AMCON Distributing Company and
Subsidiaries
Condensed Consolidated Unaudited
Statements of Operations
for the three and nine months ended
June 30, 2016 and 2015
For the three months ended
June For the nine months ended June 2016
2015 2016 2015 Sales (including excise taxes
of $98.9 million and $101.5 million, and $284.9 million and $285.9
million, respectively) $ 333,398,723 $ 334,456,509 $ 951,856,098 $
937,333,849 Cost of sales 314,235,192
314,957,889 896,190,425 880,575,362
Gross profit 19,163,531 19,498,620
55,665,673 56,758,487 Selling,
general and administrative expenses 15,335,808 15,405,676
45,951,300 47,072,555 Depreciation and amortization 512,543
542,307 1,655,173
1,709,469 15,848,351 15,947,983
47,606,473 48,782,024 Operating income
3,315,180 3,550,637 8,059,200
7,976,463 Other expense (income):
Interest expense 188,798 242,266 562,654 673,783 Other (income),
net (35,552 ) (20,853 ) (98,634 )
(63,907 ) 153,246 221,413
464,020 609,876 Income from operations before
income tax expense 3,161,934 3,329,224 7,595,180 7,366,587 Income
tax expense 1,310,000 1,333,000
3,241,000 3,055,000 Net income 1,851,934
1,996,224 4,354,180 4,311,587 Preferred stock dividend requirements
(48,642 ) (48,643 ) (146,462 ) (145,928
) Net income available to common shareholders $ 1,803,292 $
1,947,581 $ 4,207,718 $ 4,165,659 Basic
earnings per share available to common shareholders $ 3.03 $ 3.16 $
6.91 $ 6.78 Diluted earnings per share available to common
shareholders $ 2.62 $ 2.69 $ 6.07 $ 5.85 Basic weighted
average shares outstanding 596,112 615,822 609,240 614,723 Diluted
weighted average shares outstanding 707,300 741,183 717,875 737,325
Dividends declared and paid per common share $ 0.18 $ 0.18 $
0.82 $ 0.54
AMCON Distributing Company and
Subsidiaries
Condensed Consolidated Unaudited
Statements of Cash Flows
for the nine months ended June 30, 2016
and 2015
2016 2015 CASH FLOWS FROM
OPERATING ACTIVITIES: Net income $ 4,354,180 $ 4,311,587
Adjustments to reconcile net income from operations to net cash
flows from operating activities: Depreciation 1,389,756 1,435,719
Amortization 265,417 273,750 (Gain) loss on sale of property and
equipment (69,215 ) 5,103 Equity-based compensation 1,050,644
910,920 Deferred income taxes 238,728 133,493 Provision (recovery)
for losses on doubtful accounts (39,000 ) 193,000 Provision for
losses on inventory obsolescence 2,014 132,793 Other (5,034 )
(6,034 ) Changes in assets and liabilities: Accounts
receivable (2,027,155 ) (207,224 ) Inventories 10,120,804
(6,393,734 ) Prepaid and other current assets (3,320,720 ) 942,531
Other assets 27,897 118,531 Accounts payable 924,567 242,760
Accrued expenses and accrued wages, salaries and bonuses 2,825
1,505,917 Income taxes payable 476,352
(1,022,572 ) Net cash flows from operating activities 13,392,060
2,576,540 CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of
property and equipment (1,013,988 ) (812,624 ) Proceeds from sales
of property and equipment 112,157 24,000
Net cash flows from investing activities (901,831 ) (788,624
) CASH FLOWS FROM FINANCING ACTIVITIES: Net payments on bank
credit agreements (7,193,768 ) (774,559 ) Principal payments on
long-term debt (262,677 ) (255,157 ) Repurchase of common stock
(4,044,437 ) — Dividends paid on convertible preferred stock
(146,462 ) (145,928 ) Dividends on common stock (526,076 ) (348,732
) Withholdings on the exercise of equity-based awards
(121,348 ) (213,605 ) Net cash flows from financing
activities (12,294,768 ) (1,737,981 ) Net
change in cash 195,461 49,935 Cash, beginning of period
219,536 99,922 Cash, end of period $
414,997 $ 149,857 Supplemental disclosure of
cash flow information: Cash paid during the period for interest $
576,681 $ 677,163 Cash paid during the period for income taxes
2,525,920 3,944,080 Supplemental disclosure of non-cash
information: Equipment acquisitions classified as accounts payable
51,874 8,483 Issuance of common stock in connection with the
vesting and exercise of equity-based awards 1,174,981 1,240,842
.
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AMCON Distributing CompanyChristopher H. Atayan,
402-331-3727
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