AMCON Distributing Company (“AMCON”) (NYSE MKT:DIT), an Omaha,
Nebraska based consumer products company is pleased to announce
fully diluted earnings per share of $0.71 on net income available
to common shareholders of $0.5 million for our second fiscal
quarter ended March 31, 2017.
“We continue to invest in our wholesale business to enhance our
leadership position in the convenience distribution industry. We
are expanding our foodservice and technology capabilities as the
needs of our customers grow in complexity. This approach has served
to differentiate us from our competition,” said Christopher H.
Atayan, AMCON’s Chairman and Chief Executive Officer. He further
noted, “We are actively seeking acquisitions that can benefit from
our extensive platform of customer service and are evaluating
several geographic growth opportunities as our customer base
expands.”
For the second fiscal quarter of 2017, our Wholesale
Distribution Segment reported revenues of $287.3 million and
operating income of $2.7 million. Our Retail Health Food Segment
reported revenues of $6.7 million and an operating loss of $0.2
million for the same period.
“Our annual spring trade show in Kansas City was well received
by our customers and vendors. This annual event provides momentum
as we enter our customers’ peak selling season,” said Kathleen M.
Evans, President of AMCON’s Wholesale Distribution Segment. She
further noted, “As we expand into new territories we are
implementing the logistics investments and technology necessary to
support our customers’ geographic growth.”
“We are pleased with the progress of our new store in Orlando.
Our management team is developing market driven enhancements to our
core business model in order to compete in this highly challenging
retail environment,” said Clifford Ginn, President of AMCON’s
Retail Health Food Segment.
“We actively manage our working capital and liquidity which
provides an ability to respond quickly to the dynamic environments
in which both of our business segments operate. This conservative
approach provides us significant flexibility to act in the long
term best interest of the many constituencies we serve. Both of our
business segments are utilizing financial resources in the course
of making the investments necessary for long term competitive
success,” said Andrew C. Plummer, AMCON’s Chief Financial Officer.
“We were pleased to close the March 31, 2017 quarter with
shareholders’ equity of $67.1 million and consolidated debt of $8.3
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, 2017 and September 30,
2016
March September 2017 2016
(Unaudited)
ASSETS
Current assets: Cash $ 248,760 $ 605,380
Accounts receivable, less allowance for
doubtful accounts of $0.7 million at March 2017 and $0.7 million at
September 2016
27,737,863 30,033,104 Inventories, net 45,707,269 48,404,882
Deferred income taxes 1,182,299 1,441,919 Income taxes receivable
282,435 164,959 Prepaid and other current assets 7,829,685
8,608,049 Total current assets 82,988,311
89,258,293 Property and equipment, net 12,373,290 12,607,877
Goodwill 6,349,827 6,349,827 Other intangible assets, net 3,626,812
3,759,311 Other assets 340,936 288,082
Total assets $ 105,679,176 $ 112,263,390
LIABILITIES AND
SHAREHOLDERS’ EQUITY
Current liabilities: Accounts payable $ 17,255,595 $ 18,164,983
Accrued expenses 6,299,199 6,792,884 Accrued wages, salaries and
bonuses 2,653,577 3,580,996 Current maturities of long-term debt
367,982 362,495 Total current
liabilities 26,576,353 28,901,358 Credit facility 5,102,578
10,537,226 Deferred income taxes 4,080,631 4,021,569 Long-term
debt, less current maturities 2,836,070 3,021,824 Other long-term
liabilities 32,123 30,815 Shareholders’ equity: Preferred
stock, $.01 par value, 1,000,000 shares authorized — —
Common stock, $.01 par value, 3,000,000
shares authorized, 678,938 shares outstanding and issued at March
2017 and 677,057 shares outstanding and issued at September
2016
8,314 8,184 Additional paid-in capital 20,782,045 19,525,554
Retained earnings 59,775,503 58,693,241 Treasury stock at cost
(13,514,441 ) (12,476,381 )
Total shareholders’
equity 67,051,421 65,750,598
Total liabilities and shareholders' equity $ 105,679,176
$ 112,263,390
AMCON Distributing Company and
Subsidiaries
Condensed Consolidated Unaudited
Statements of Operations
for the three and six months
ended March 31, 2017 and 2016
For the three months ended March
For the six months ended March 2017 2016
2017 2016 Sales (including excise taxes of $85.7
million and $88.7 million, and $176.7 million and $186.0 million,
respectively) $ 294,047,870 $ 296,449,126 $ 604,152,099 $
618,457,375 Cost of sales 276,573,968
278,908,888 568,362,211 581,955,233
Gross profit 17,473,902 17,540,238
35,789,888 36,502,142 Selling,
general and administrative expenses 15,820,504 14,770,358
31,518,823 30,615,492 Depreciation and amortization 529,969
575,681 1,056,402
1,142,630 16,350,473 15,346,039
32,575,225 31,758,122 Operating income
1,123,429 2,194,199 3,214,663
4,744,020 Other expense (income):
Interest expense 147,910 161,402 365,453 373,856 Other (income),
net (14,964 ) (35,827 ) (20,737 )
(63,082 ) 132,946 125,575
344,716 310,774 Income from operations before
income tax expense 990,483 2,068,624 2,869,947 4,433,246 Income tax
expense 502,000 922,000
1,335,000 1,931,000 Net income 488,483
1,146,624 1,534,947 2,502,246 Preferred stock dividend requirements
— (48,643 ) — (97,820 )
Net income available to common shareholders $ 488,483 $
1,097,981 $ 1,534,947 $ 2,404,426 Basic
earnings per share available to common shareholders $ 0.72 $ 1.81 $
2.26 $ 3.90 Diluted earnings per share available to common
shareholders $ 0.71 $ 1.61 $ 2.22 $ 3.46 Basic weighted
average shares outstanding 678,938 606,080 680,318 615,768 Diluted
weighted average shares outstanding 688,016 712,547 690,190 723,317
Dividends declared and paid per common share $ 0.46 $ 0.46 $
0.64 $ 0.64
AMCON Distributing Company and
Subsidiaries
Condensed Consolidated Unaudited
Statements of Cash Flows
for the six months ended March 31, 2017
and 2016
March March 2017 2016
CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 1,534,947 $
2,502,246 Adjustments to reconcile net income from operations to
net cash flows from operating activities: Depreciation 923,903
960,130 Amortization 132,499 182,500 Gain on sale of property and
equipment (21,624 ) (34,482 ) Equity-based compensation 765,554
660,203 Deferred income taxes 318,682 352,242 Provision (recovery)
for losses on doubtful accounts 29,000 (67,000 ) Provision for
losses on inventory obsolescence 72,197 70,818 Other 1,308 (4,022 )
Changes in assets and liabilities: Accounts receivable 2,266,241
2,677,840 Inventories 2,625,416 4,128,553 Prepaid and other current
assets 778,364 (1,954,372 ) Other assets (52,854 ) 20,467 Accounts
payable (771,163 ) (1,005,681 ) Accrued expenses and accrued wages,
salaries and bonuses (822,955 ) (1,479,465 ) Income taxes
receivable (117,476 ) 343,304 Net cash flows
from operating activities 7,662,039 7,353,281
CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of
property and equipment (837,895 ) (692,402 ) Proceeds from sales of
property and equipment 31,978 48,164
Net cash flows from investing activities (805,917 )
(644,238 ) CASH FLOWS FROM FINANCING ACTIVITIES: Net
payments on bank credit agreements (5,434,648 ) (3,292,820 )
Principal payments on long-term debt (180,267 ) (174,650 )
Repurchase of common stock (1,038,060 ) (2,547,683 ) Dividends paid
on convertible preferred stock — (97,820 ) Dividends on common
stock (452,685 ) (412,210 ) Withholdings on the exercise of
equity-based awards (107,082 ) (81,406 ) Net cash
flows from financing activities (7,212,742 )
(6,606,589 ) Net change in cash (356,620 ) 102,454 Cash, beginning
of period 605,380 219,536 Cash, end of
period $ 248,760 $ 321,990 Supplemental
disclosure of cash flow information: Cash paid during the period
for interest $ 365,620 $ 391,130 Cash paid during the period for
income taxes 1,133,794 1,235,454 Supplemental disclosure of
non-cash information: Equipment acquisitions classified as accounts
payable 29,219 17,500 Issuance of common stock in connection with
the vesting and exercise of equity-based awards 1,262,763 1,174,981
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AMCON Distributing CompanyChristopher H. Atayan,
402-331-3727
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