AMCON Distributing Company (“AMCON”) (NYSE American:DIT), an
Omaha, Nebraska based consumer products company is pleased to
announce fully diluted earnings per share of $0.49 on net income
available to common shareholders of $0.3 million for our second
fiscal quarter ended March 31, 2018.
“We operate in a highly competitive environment in both our
business segments. AMCON will continue to initiate the operating
investments necessary to support our customers and enhance our
leadership position in the Convenience Distribution Industry.
Foodservice expertise is a critical part of the future of our
industry and our commitment to this category remains at the
forefront of our business strategy. In addition, we seek to develop
proprietary 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. We are also looking carefully at a number of
geographic growth opportunities as our customer base expands.”
“Our annual spring trade show in Kansas City was well received
by our customers and vendors. This 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, “We are making the logistics and related technology
investments necessary to support our customers’ geographic
growth.”
“We are pleased with the progress of our new store in Lakeland,
Florida. Our management team is developing market driven
enhancements to our core business model in order for us to compete
in this highly challenging retail environment. We will continue to
invest heavily in new stores and store upgrades as that is
necessary for us to remain a viable competitor in the market
place,” 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 significant 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, 2018
quarter with shareholders’ equity of $70.1 million and consolidated
debt of $33.4 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, 2018 and
September 30, 2017 March
September 2018 2017 (Unaudited)
ASSETS Current assets: Cash $ 564,817 $ 523,065 Accounts
receivable, less allowance for doubtful accounts of $0.7 million at
March 2018 and $0.8 million at September 2017 29,245,698 30,690,403
Inventories, net 76,092,792 72,909,996 Prepaid and other current
assets 3,002,475 4,218,811 Total
current assets 108,905,782 108,342,275 Property and
equipment, net 13,616,571 13,307,986 Goodwill 6,349,827 6,349,827
Other intangible assets, net 3,446,186 3,494,311 Other assets
330,391 310,488 Total assets $
132,648,757 $ 131,804,887
LIABILITIES AND
SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $
17,720,165 $ 17,631,552 Accrued expenses 6,710,555 7,553,089
Accrued wages, salaries and bonuses 2,612,826 3,477,966 Income
taxes payable 175,600 544,069 Current maturities of long-term debt
379,302 373,645 Total current
liabilities 27,598,448 29,580,321 Credit facility 30,549,306
29,037,182 Deferred income tax liability, net 1,912,941 2,336,263
Long-term debt, less current maturities 2,456,769 2,648,179 Other
long-term liabilities 36,078 34,100 Shareholders’ equity:
Preferred stock, $.01 par value, 1,000,000 shares authorized — —
Common stock, $.01 par value, 3,000,000 shares authorized, 684,004
shares outstanding at March 2018 and 678,006 shares outstanding at
September 2017 8,441 8,314 Additional paid-in capital 22,036,562
20,825,919 Retained earnings 62,296,042 60,935,911 Treasury stock
at cost (14,245,830 ) (13,601,302 ) Total
shareholders’ equity 70,095,215 68,168,842
Total liabilities and shareholders' equity $ 132,648,757
$ 131,804,887
AMCON Distributing
Company and Subsidiaries Condensed Consolidated Unaudited
Statements of Operations for the three and six months ended
March 31, 2018 and 2017
For the three months ended March For
the six months ended March 2018 2017 2018
2017 Sales (including excise taxes of $83.1 million and
$85.7 million, and $171.7 million and $176.7 million, respectively)
$ 295,207,286 $ 294,047,870 $ 610,720,495 $ 604,152,099 Cost of
sales 278,141,110 276,573,968
575,462,557 568,362,211 Gross profit
17,066,176 17,473,902 35,257,938
35,789,888 Selling, general and administrative
expenses 15,619,420 15,820,504 31,973,028 31,518,823 Depreciation
and amortization 537,903 529,969
1,068,908 1,056,402 16,157,323
16,350,473 33,041,936 32,575,225
Operating income 908,853 1,123,429
2,216,002 3,214,663 Other
expense (income): Interest expense 313,364 147,910 515,555 365,453
Other (income), net (27,410 ) (14,964 )
(32,543 ) (20,737 ) 285,954 132,946
483,012 344,716 Income from
operations before income tax expense 622,899 990,483 1,732,990
2,869,947 Income tax expense (benefit) 284,000
502,000 (86,000 ) 1,335,000 Net income
available to common shareholders $ 338,899 $ 488,483
$ 1,818,990 $ 1,534,947 Basic earnings per
share available to common shareholders $ 0.49 $ 0.72 $ 2.64 $ 2.26
Diluted earnings per share available to common shareholders $ 0.49
$ 0.71 $ 2.61 $ 2.22 Basic weighted average shares
outstanding 689,480 678,938 688,570 680,318 Diluted weighted
average shares outstanding 697,406 688,016 697,563 690,190
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, 2018 and
2017 March March
2018 2017 CASH FLOWS FROM OPERATING ACTIVITIES: Net
income $ 1,818,990 $ 1,534,947
Adjustments to reconcile net income from
operations to net cash flows from operating activities:
Depreciation 1,020,783 923,903 Amortization 48,125 132,499 Gain on
sale of property and equipment (300 ) (21,624 ) Equity-based
compensation 642,785 765,554 Deferred income taxes (423,322 )
318,682 Provision (recovery) for losses on doubtful accounts
(77,000 ) 29,000 Inventory allowance (231,625 ) 72,197 Other 1,978
1,308 Changes in assets and liabilities: Accounts receivable
1,521,705 2,266,241 Inventories (2,951,171 ) 2,625,416 Prepaid and
other current assets 1,216,336 778,364 Other assets (19,903 )
(52,854 ) Accounts payable 126,012 (771,163 ) Accrued expenses and
accrued wages, salaries and bonuses (1,059,839 ) (822,955 ) Income
taxes payable (368,469 ) (117,476 ) Net cash flows
from operating activities 1,265,085 7,662,039
CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of
property and equipment (1,366,767 ) (837,895 ) Proceeds from sales
of property and equipment 300 31,978
Net cash flows from investing activities (1,366,467 )
(805,917 ) CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings
under revolving credit facility 623,945,799 610,559,577 Repayments
under revolving credit facility (622,433,675 ) (615,994,225 )
Principal payments on long-term debt (185,753 ) (180,267 )
Repurchase of common stock (644,528 ) (1,038,060 ) Dividends on
common stock (458,859 ) (452,685 ) Withholdings on the exercise of
equity-based awards (79,850 ) (107,082 ) Net cash
flows from financing activities 143,134
(7,212,742 ) Net change in cash 41,752 (356,620 ) Cash, beginning
of period 523,065 605,380 Cash, end of
period $ 564,817 $ 248,760 Supplemental
disclosure of cash flow information: Cash paid during the period
for interest $ 489,840 $ 365,620 Cash paid during the period for
income taxes 705,790 1,133,794 Supplemental disclosure of
non-cash information: Equipment acquisitions classified in accounts
payable 63,962 29,219
Issuance of common stock in connection
with the vesting and exercise of equity-based awards
1,183,091 1,262,763
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AMCON Distributing CompanyChristopher H. Atayan,
402-331-3727
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