AMCON Distributing Company (“AMCON”) (NYSE AMEX:DIT), an Omaha,
Nebraska based consumer products company is pleased to announce
fully diluted earnings per share of $1.83 on net income available
to common stockholders of $1.4 million for the fiscal quarter ended
December 31, 2011.
“The integration of the Crossville, Tennessee branch continues
to progress according to plan. Considerable management attention is
focused on diversifying the product mix. We are working hard to
introduce our full range of products and services to enhance our
customer’s ability to improve margins. Overall business conditions
in both of our segments remain highly competitive so we were
pleased with the results for the quarter,” said Christopher H.
Atayan, AMCON’s Chairman and Chief Executive Officer. “We believe
we are well positioned strategically in the current environment and
are actively engaged in organically developing new business
opportunities within our existing customer base and prospects. We
also continue to be active on the acquisition trail,” noted Mr.
Atayan.
Each of AMCON’s business segments reported solid quarters. The
wholesale distribution segment reported revenues of $275.0 million
and operating income before depreciation and amortization of $3.9
million for the first fiscal quarter of fiscal 2012. The retail
health food segment reported revenues of $8.5 million and operating
income before depreciation and amortization of $0.5 million for the
first fiscal quarter of 2012.
“We hosted our first trade show for the Crossville branch during
the quarter. The show was well received by customers, with
considerable enthusiasm shown for our industry leading e-Space
planogram program. We also completed a significant capital
expansion for freezers and related food service equipment in our
Quincy branch which positions us well as we expand our food service
offerings,” said Kathleen Evans, President of AMCON’s wholesale
distribution segment.
“Our Chamberlin’s stores in Florida continue to show improved
results as that region recovers from the depths of the recession.
Our Akin's stores in the Midwest are experiencing increased
competition from several national health food chains which
negatively impacted results in the first quarter. On a long term
basis our stores are well positioned to compete. Consumers of
natural products tend to be a well educated customer segment, who
demand a higher level of product and dietary knowledge by in store
associates, which is our strength,” said Eric Hinkefent, President
of AMCON’s Retail Health Food Segment.
“We continue to maintain high levels of balance sheet liquidity
to take advantage of buying opportunities when available. We are
very focused on using our balance sheet as a tool to drive
profitability for our customers. At December 31, 2011,
stockholders’ equity was $43.9 million and consolidated debt was
$35.9 million,” said Andrew Plummer, AMCON’s Chief Financial
Officer. “We are making significant personnel and capital
investments in information technology, for both internal and
customer use, and will continue to do so for the foreseeable
future,” commented Mr. 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 Arkansas, Illinois, Missouri, Nebraska, North Dakota,
South Dakota, and Tennessee. AMCON also operates fourteen (14)
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 December 31, 2011
and September 30, 2011
December
2011
September
2011
(Unaudited) ASSETS Current assets: Cash $ 974,815 $
1,389,665 Accounts receivable, less allowance for doubtful accounts
of $1.2 million at both December 2011 and September 2011 29,223,872
32,963,693 Inventories, net 47,940,028 38,447,982 Deferred income
taxes 1,455,121 1,707,889 Prepaid and other current assets
4,951,373 6,073,536 Total current
assets 84,545,209 80,582,765 Property and equipment, net
13,454,969 13,713,238 Goodwill 6,349,827 6,349,827 Other intangible
assets, net 5,459,727 5,550,978 Other assets
1,243,000 1,238,825 $
111,052,732 $ 107,435,633
LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities:
Accounts payable $ 15,845,825 $ 18,439,446 Accrued expenses
5,348,974 7,153,672 Accrued wages, salaries and bonuses 1,900,367
2,460,558 Income taxes payable 732,613 2,100,180 Current maturities
of long-term debt
1,915,309
1,384,625 Total current liabilities 25,743,088
31,538,481 Credit facility 28,768,119 20,771,613 Deferred
income taxes 2,939,629 2,743,238 Long-term debt, less current
maturities 5,252,739 6,194,195 Other long-term liabilities 427,501
429,513
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 December 2011
and September 2011.
2,500,000 2,500,000
Series B cumulative, convertible preferred
stock, $.01 par value 80,000 shares authorized, 62,000 shares
outstanding and a total liquidation preference of $1.6 million at
December 2011 and September 2011.
1,550,000 1,550,000
Shareholders’ equity:
Preferred stock, $0.01 par value,
1,000,000 shares authorized, 162,000 shares outstanding and issued
in Series A and B referred to above
— —
Common stock, $.01 par value, 3,000,000
shares authorized, 625,271 shares outstanding at December 2011 and
609,320 shares outstanding at September 2011
6,252 6,093 Additional paid-in capital 10,892,578 9,981,055
Retained earnings
32,972,826
31,721,445 Total shareholders’ equity
43,871,656 41,708,593
$ 111,052,732 $
107,435,633 AMCON Distributing
Company and Subsidiaries Condensed Consolidated Unaudited
Statements of Operations for the three months ended December
31, 2011 and 2010
2011
2010 Sales (including excise taxes of $90.5
million and $81.3 million, respectively) $ 283,563,050 $
244,957,161 Cost of sales
264,925,373
227,349,439 Gross profit
18,637,677 17,607,722
Selling, general and administrative expenses
15,350,002 13,687,371 Depreciation and amortization
613,494 497,583
15,963,496
14,184,954 Operating income
2,674,181 3,422,768
Other expense (income): Interest expense 424,110 384,583 Other
(income), net
(151,264 )
(22,881 )
272,846
361,702 Income from operations before income
taxes 2,401,335 3,061,066 Income tax expense
963,000 1,229,000
Net income 1,438,335 1,832,066 Preferred stock dividend
requirements
(67,641 )
(74,867 ) Net income available to common shareholders
$ 1,370,694 $
1,757,199 Basic earnings per
share available to common shareholders $ 2.21 $ 3.04 Diluted
earnings per share available to common shareholders $ 1.83 $ 2.41
Basic weighted average shares outstanding 619,910 578,636
Diluted weighted average shares outstanding 783,994 758,692
AMCON Distributing Company and Subsidiaries
Condensed Consolidated Unaudited Statements of Cash Flows
for the three months ended December 31, 2011 and 2010
2011
2010 CASH FLOWS FROM OPERATING
ACTIVITIES: Net income $ 1,438,335 $ 1,832,066
Adjustments to reconcile net income from
operations to net cash flows from operating activities:
Depreciation 512,555 418,565 Amortization 100,939 79,018 Gain on
sale of property and equipment (3,600 ) (2,315 ) Equity-based
compensation 318,894 1,166,833 Net excess tax benefit on
equity-based awards — (79,863 ) Deferred income taxes 449,159
422,825 Provision (recoveries) for losses on doubtful accounts
87,735 (625,000 ) Provision for losses on inventory obsolescence
46,563 81,416 Other (2,012 ) (2,011 ) Changes in assets and
liabilities: Accounts receivable 3,652,086 6,282,865 Inventories
(9,538,609 ) (1,135,707 ) Prepaid and other current assets
1,122,163 (1,758,550 ) Other assets (4,175 ) (6,513 ) Accounts
payable (2,586,190 ) (1,949,184 ) Accrued expenses and accrued
wages, salaries and bonuses (1,731,517 ) (1,316,121 ) Income tax
payable
(1,367,567 )
(1,186,025 ) Net cash flows from operating activities
(7,505,241 ) 2,222,299 CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment (261,717 ) (293,037 ) Proceeds
from sales of property and equipment
3,600
11,575 Net cash flows from
investing activities (258,117 ) (281,462 ) CASH FLOWS FROM
FINANCING ACTIVITIES: Net borrowings (payments) on bank credit
agreements 7,996,506 (1,647,706 ) Principal payments on long-term
debt (410,772 ) (250,007 ) Net excess tax benefit on equity-based
awards — 79,863 Dividends paid on convertible preferred stock
(67,641 ) (74,867 ) Dividends on common stock (119,313 ) (103,935 )
Proceeds from exercise of stock options 1,180 — Withholdings on the
exercise of equity-based awards
(51,452 )
— Net cash flows from financing
activities
7,348,508
(1,996,652 ) Net change in cash (414,850 ) (55,815 )
Cash, beginning of period
1,389,665 356,735
Cash, end of period
$ 974,815
$ 300,920
2011 2010
Supplemental disclosure of cash flow information: Cash paid
during the period for interest $ 401,312 $ 372,376 Cash paid during
the period for income taxes 1,881,407 1,992,200 Supplemental
disclosure of non-cash information: Equipment acquisitions
classified as accounts payable $ 3,254 $ 29,503
Issuance of common stock in connection
with the vesting and exercise of equity-based awards
950,562 —
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