AMCON Distributing Company (“AMCON”) (NYSE MKT:DIT), an Omaha,
Nebraska based consumer products company is pleased to announce
fully diluted earnings per share of $4.26 on net income available
to common shareholders of $2.9 million for the fiscal year ended
September 30, 2017. AMCON earned $1.48 per fully diluted share on
net income available to common shareholders of $1.0 million for the
fourth fiscal quarter ended September 30, 2017.
“We are pleased with our results for fiscal 2017. AMCON
continues to be a leader in the convenience distribution industry
as a result of our relentless efforts to provide first class
customer service and reliability. As the convenience store industry
evolves and becomes increasingly complex, the wide variety of
programs and services we offer serve to competitively differentiate
our Company,” said Christopher H. Atayan, AMCON’s Chairman and
Chief Executive Officer. He further noted, “We are diligently
implementing our focused strategic plan anchored by our customer
centric philosophy enabling our management team to navigate a
challenging business environment. Our objective is to deliver
attractive risk adjusted rates of return on the capital we employ.
We expect an enhanced level of capital expenditures in the coming
years to support our efforts in foodservice, information
technology, expansion of our territory, and the addition of retail
health food stores. In addition, we are seeking acquisitions in
wholesale and foodservice distribution that further our strategic
objectives.”
The wholesale distribution segment reported revenues of $1.2
billion and operating income of $13.7 million for fiscal 2017, and
revenues and operating income of $331.9 million and $3.9 million,
respectively, for the fourth fiscal quarter of fiscal 2017. The
retail health food segment reported revenues of $25.4 million and
an operating loss of $1.8 million for fiscal 2017, and revenue of
$6.1 million and an operating loss of $0.7 million for the fourth
quarter of fiscal 2017.
“Our wholesale customers are growing both organically and from
acquisitions. To support this growth, we are actively expanding our
service territory,” said Kathleen M. Evans, President of AMCON’s
Wholesale Distribution Segment. Evans continued, “Our fall trade
shows provided considerable momentum as we enter fiscal 2018. We
embrace a long term approach to building our customers’ business
which is mutually beneficial.”
“Our new flagship Chamberlin’s store, which we opened early in
fiscal 2017 in the Orlando market, has been a commercial success.
We have recently opened a second store in the Lakeland market which
builds off the momentum we have made in the Florida market as a
function of our brand reimaging and social media initiatives in
this market,” said Clifford Ginn, President of AMCON’s Retail
Health Food Segment. “We will continue to invest in new stores,
store remodeling, and marketing as we seek to address the
competitive challenges we face in the industry. Our Midwestern
markets operate in a highly challenging environment.”
“We are very focused on increasing our shareholders’ equity per
share, maintaining high levels of balance sheet liquidity and
generating free cash flow. At September 30, 2017, our shareholders’
equity was $68.2 million, resulting in adjusted book value per
share of $99.24. We turned our inventory twenty-two times and
consolidated debt was $32.1 million. At its lowest point during
fiscal 2017 our consolidated debt was $3.7 million,” said Andrew C.
Plummer, AMCON’s Chief Financial Officer. “We continue to place a
high priority on the development of information technology for
internal and external purposes. These are important investments for
the future of our business. In addition, we are exploring
additional upgrades and expansion of our distribution facilities
and retail stores system wide,” added Plummer.
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
CONSOLIDATED BALANCE SHEETS
September September 2017
2016 ASSETS Current assets: Cash $ 523,065 $ 605,380
Accounts receivable, less allowance for
doubtful accounts of $0.8 million at September 2017 and $0.7
million at September 2016
30,690,403 30,033,104 Inventories, net 72,909,996 48,404,882 Income
taxes receivable — 164,959 Prepaid and other current assets
4,218,811 8,608,049 Total current assets 108,342,275
87,816,374 Property and equipment, net 13,307,986 12,607,877
Goodwill 6,349,827 6,349,827 Other intangible assets, net 3,494,311
3,759,311 Other assets 310,488 288,082 Total assets $
131,804,887 $ 110,821,471
LIABILITIES AND SHAREHOLDERS’
EQUITY Current liabilities: Accounts payable $ 17,631,552 $
18,164,983 Accrued expenses 7,553,089 6,792,884 Accrued wages,
salaries and bonuses 3,477,966 3,580,996 Income taxes payable
544,069 — Current maturities of long-term debt 373,645
362,495 Total current liabilities 29,580,321 28,901,358
Credit facility 29,037,182 10,537,226 Deferred income tax
liability, net 2,336,263 2,579,650 Long-term debt, less current
maturities 2,648,179 3,021,824 Other long-term liabilities 34,100
30,815 Shareholders’ equity: Preferred stock, $.01 par
value, 1,000,000 shares authorized — —
Common stock, $.01 par value, 3,000,000
shares authorized, 678,006 shares outstanding at September 2017 and
677,057 shares outstanding at September 2016
8,314 8,184 Additional paid-in capital 20,825,919 19,525,554
Retained earnings 60,935,911 58,693,241 Treasury stock at cost
(13,601,302) (12,476,381) Total shareholders’ equity
68,168,842 65,750,598 Total liabilities and
shareholders' equity $ 131,804,887 $ 110,821,471
AMCON Distributing Company and
Subsidiaries
CONSOLIDATED STATEMENTS OF
OPERATIONS
Fiscal Years Ended September 2017
2016 Sales (including excise taxes of $368.8 million and
$386.1 million, respectively) $ 1,274,984,408 $ 1,294,625,223 Cost
of sales 1,202,536,285 1,219,855,401
Gross profit 72,448,123 74,769,822
Selling, general and administrative expenses 64,173,895 61,733,220
Depreciation and amortization 2,049,475
2,162,667 66,223,370 63,895,887
Operating income 6,224,753 10,873,935 Other expense
(income): Interest expense 825,690 723,221 Other (income), net
(39,513 ) (104,959 ) 786,177
618,262 Income from operations before income tax expense
5,438,576 10,255,673 Income tax expense 2,489,000
4,275,000 Net income 2,949,576 5,980,673 Preferred
stock dividend requirements — (160,360 ) Net
income available to common shareholders $ 2,949,576 $
5,820,313 Basic earnings per share available to
common shareholders $ 4.34 $ 9.37 Diluted earnings per share
available to common shareholders $ 4.26 $ 8.38 Basic
weighted average shares outstanding 679,478 621,435 Diluted
weighted average shares outstanding 692,183 713,897
Dividends declared and paid per common share $ 1.00 $ 1.00
AMCON Distributing Company and
Subsidiaries
CONSOLIDATED STATEMENTS OF CASH
FLOWS
Fiscal Years Ended September 2017
2016 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $
2,949,576 $ 5,980,673
Adjustments to reconcile net income from
operations to net cash flows from operating activities:
Depreciation 1,784,475 1,831,000 Amortization 265,000 331,667 Gain
on sale of property and equipment (31,622 ) (58,926 ) Equity-based
compensation 1,394,879 1,403,584 Deferred income taxes (243,387 )
437,278 Provision (recovery) for losses on doubtful accounts 98,000
(199,000 ) Recoveries for losses on inventory obsolescence (101,716
) (57,247 ) Other 3,285 (4,045 ) Changes in assets and liabilities:
Accounts receivable (755,299 ) 2,032,683 Inventories (24,403,398 )
12,445,843 Prepaid and other current assets 4,389,238 (6,482,141 )
Other assets (22,406 ) 29,102 Accounts payable (467,348 ) 976,142
Accrued expenses and accrued wages, salaries and bonuses 669,873
(228,552 ) Income taxes payable (receivable) 709,028
(51,721 ) Net cash flows from operating activities
(13,761,822 ) 18,386,340 CASH FLOWS FROM
INVESTING ACTIVITIES: Purchase of property and equipment (2,565,699
) (1,594,848 ) Proceeds from sales of property and equipment
46,654 112,157 Net cash flows from investing
activities (2,519,045 ) (1,482,691 ) CASH
FLOWS FROM FINANCING ACTIVITIES: Borrowings under revolving credit
facility 1,311,967,154 1,303,722,318 Repayments under revolving
credit facility (1,293,467,198 ) (1,314,087,299 ) Principal
payments on long-term debt (362,495 ) (351,383 ) Repurchase of
common stock (1,124,921 ) (4,795,412 ) Dividends paid on
convertible preferred stock — (160,360 ) Dividends on common stock
(706,906 ) (654,678 ) Withholdings on the exercise of equity-based
awards (107,082 ) (190,991 ) Net cash flows from
financing activities 16,198,552 (16,517,805 )
Net change in cash (82,315 ) 385,844 Cash, beginning of period
605,380 219,536 Cash, end of period $
523,065 $ 605,380 Supplemental disclosure of
cash flow information: Cash paid during the period for interest $
819,969 $ 737,252 Cash paid during the period for income taxes
2,023,359 3,889,443 Supplemental disclosure of non-cash
information: Equipment acquisitions classified in accounts payable
101,361 167,444
Issuance of common stock in connection
with the vesting and exercise of equity-based awards
1,262,763 1,174,981
Issuance of common stock in connection
with the redemption of Series A & B convertible preferred
stock
— 2,899,892
AMCON Distributing Company and
Subsidiaries
FISCAL YEAR 2017
(dollars in thousands, except per share data)
First Second
Third Fourth Sales $
310,104 $ 294,048 $ 332,842 $ 337,990
Gross profit
18,316 17,474
18,024 18,634
Income from operations before income tax
expense
1,879 990
798 1,771
Net income
1,046 488 385 1,030
Preferred stock dividend requirements
— — —
—
Net income available to common
shareholders
$ 1,046 $ 488
$ 385 $ 1,030
Basic earnings per share available to
common shareholders
$ 1.54 $ 0.72
$ 0.57 $ 1.52
Diluted earnings per share available to
common shareholders
$ 1.52
$ 0.71 $ 0.56
$ 1.48
FISCAL YEAR 2016 (dollars in
thousands, except per share data) First
Second Third
Fourth Sales $ 322,008 $ 296,449 $
333,399 $ 342,769
Gross profit
18,962 17,540
19,164 19,104
Income from operations before income tax
expense
2,365 2,069
3,162 2,660
Net income
1,356 1,147 1,852 1,626
Preferred stock dividend requirements
(49
)
(49
)
(49
)
(14
)
Net income available to common
shareholders
$ 1,307 $ 1,098
$ 1,803 $ 1,613
Basic earnings per share available to
common shareholders
$ 2.09 $ 1.81
$ 3.03 $ 2.45
Diluted earnings per share available to
common shareholders
$ 1.85 $ 1.61
$ 2.62 $ 2.32
The Company’s quarterly earnings per share are based on weighted
average shares outstanding for the quarter; therefore the sum of
the quarters may not equal the full year earnings per share
amount.
AMCON Distributing Company and
Subsidiaries
GAAP Reconciliation and Management Explanation of Non-GAAP
Financial Measures
The financial measure of adjusted book value per share included
in this press release (“adjusted book value per share”) has been
determined by methods other than in accordance with U.S. generally
accepted accounting principles (“GAAP”). Management believes that
this non-GAAP financial measurement reflects an additional way of
viewing aspects of the Company’s business that, when viewed
together with its financial results computed in accordance with
GAAP, provides a more complete understanding of factors affecting
historical financial performance of the Company. This measure is
important to investors interested in determining the amount of book
value per share if all potentially dilutive shares were exercised
or vested and outstanding. This non-GAAP financial measurement is
not intended to be a substitute for the comparable GAAP
measurements and should be read only in conjunction with our
consolidated financial statements prepared in accordance with
GAAP.
The Company has defined the non-GAAP financial measure of
adjusted book value per share as follows:
- “Adjusted book value per share” is
defined as total shareholders’ equity increased by the impact of
proceeds from the exercise of all stock options and vesting of
restricted stock units divided by total common shares outstanding
plus common shares issuable upon the exercise of all stock options
and vesting of restricted stock units.”
September 2017
Number of common shares outstanding at September 30, 2017 678,006
Total shareholders’ equity at September 30, 2017
$
68,168,842 Book value per share at September
30, 2017 $ 100.54
September 2017
Number of common shares outstanding at September 30, 2017 678,006
Add: common shares potentially issuable for stock options and
unvested restricted stock units /1/
55,821
733,827 Total shareholders’ equity at
September 30, 2017 $ 68,168,842 Equity impact if all potential
common shares were exercised or vested /1/
4,654,135 $ 72,822,977
Adjusted book value per share at September 30, 2017 $ 99.24
____________
/1/ Assumes the exercise of all vested and unvested stock
options and vesting of all outstanding restricted stock units at
September 30, 2017.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20171108006419/en/
AMCON Distributing CompanyChristopher H. Atayan,
402-331-3727
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