AMCON Distributing Company (“AMCON”) (NYSE MKT:DIT), an Omaha, Nebraska
based consumer products company is pleased to announce fully diluted
earnings per share of $8.59 on net income available to common
shareholders of $6.2 million for the fiscal year ended September 30,
2015. AMCON earned $2.73 per fully diluted share on net income available
to common shareholders of $2.0 million for the fourth fiscal quarter
ended September 30, 2015.
“We are pleased with our results for fiscal 2015. AMCON’s leadership
position in the convenience distribution industry is a function of our
relentless focus on customer service and reliability,” said Christopher
H. Atayan, AMCON’s Chairman and Chief Executive Officer. He further
noted, “We believe our focused strategic plan and customer centric
philosophy has enabled AMCON to navigate this challenging business
environment. Our objective is to deliver attractive risk adjusted rates
of return on the capital we employ. To support this objective we
continue to invest in foodservice and information technology both of
which drive the profitability of our customers.”
The wholesale distribution segment reported revenues of $1.3 billion and
operating income before depreciation and amortization of $18.3 million
for fiscal 2015, and revenues and operating income before depreciation
and amortization of $336.9 million and $5.3 million, respectively, for
the fourth fiscal quarter of fiscal 2015. The retail health food segment
reported revenues of $31.3 million and operating income before
depreciation and amortization of $1.1 million for fiscal 2015, and
revenue of $7.6 million and operating income before depreciation and
amortization of $0.2 million for the fourth fiscal quarter of 2015.
“Our emphasis on building long term relationships continues to provide
us with a significant competitive advantage,” said Kathleen Evans,
President of AMCON’s Wholesale Distribution Segment. Evans continued,
“This is clearly evident based on our positive fall trade show response
which will provide considerable momentum as we enter fiscal 2016. We are
actively working with our customers to expand our service territory as
they grow.”
“The Retail Health Food industry continues to grow. However, with this
growth there has been substantial competition enter our markets which
has pressured revenues,” said Eric Hinkefent, President of AMCON’s
Retail Health Food segment. “We have taken an aggressive approach to
rationalize our operating expenses in light of the competitive
environment and are looking at alternative ways to maintain our
margins,” added Hinkefent.
“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, 2015, our shareholders’ equity was $61.4
million, resulting in adjusted book value per share of $88.23. We turned
our inventory twenty-three times and consolidated debt was $24.6
million. At its lowest point during fiscal 2015 our consolidated debt
was $12.6 million,” said Andrew 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 in the future of our business. In addition, we are
exploring additional upgrades and enhancements to our facilities 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 30,
|
|
|
|
|
2015
|
|
|
2014
|
|
ASSETS
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash
|
|
|
$219,536
|
|
|
|
$99,922
|
|
|
Accounts receivable, less allowance for doubtful accounts of $0.9
million at 2015 and $0.8 million at 2014
|
|
|
31,866,787
|
|
|
|
33,286,932
|
|
|
Inventories, net
|
|
|
60,793,478
|
|
|
|
43,635,266
|
|
|
Deferred income taxes
|
|
|
1,553,726
|
|
|
|
1,606,168
|
|
|
Income taxes receivable
|
|
|
113,238
|
|
|
|
—
|
|
|
Prepaid and other current assets
|
|
|
2,125,908
|
|
|
|
5,034,570
|
|
|
Total current assets
|
|
|
96,672,673
|
|
|
|
83,662,858
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
12,753,145
|
|
|
|
13,763,140
|
|
|
Goodwill
|
|
|
6,349,827
|
|
|
|
6,349,827
|
|
|
Other intangible assets, net
|
|
|
4,090,978
|
|
|
|
4,455,978
|
|
|
Other assets
|
|
|
317,184
|
|
|
|
448,149
|
|
|
|
|
|
$120,183,807
|
|
|
|
$108,679,952
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
$17,044,726
|
|
|
|
$16,412,895
|
|
|
Accrued expenses
|
|
|
7,224,963
|
|
|
|
6,891,308
|
|
|
Accrued wages, salaries and bonuses
|
|
|
3,282,354
|
|
|
|
2,647,969
|
|
|
Income taxes payable
|
|
|
—
|
|
|
|
1,603,614
|
|
|
Current maturities of long-term debt
|
|
|
351,383
|
|
|
|
341,190
|
|
|
Total current liabilities
|
|
|
27,903,426
|
|
|
|
27,896,976
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit facility
|
|
|
20,902,207
|
|
|
|
15,081,783
|
|
|
Deferred income taxes
|
|
|
3,696,098
|
|
|
|
3,484,204
|
|
|
Long-term debt, less current maturities
|
|
|
3,384,319
|
|
|
|
3,735,702
|
|
|
Other long-term liabilities
|
|
|
34,860
|
|
|
|
139,003
|
|
|
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 September 2015 and September 2014
|
|
|
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
September 30, 2015 and September 30, 2014, and a total liquidation
preference of $0.4 million at both September 2015 and September 2014
|
|
|
400,000
|
|
|
|
400,000
|
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity:
|
|
|
|
|
|
|
|
Preferred stock, $0.01 par value, 1,000,000 shares authorized,
116,000 shares outstanding and issued in Series A and B referred to
above
|
|
|
—
|
|
|
|
—
|
|
|
Common stock, $0.01 par value, 3,000,000 shares authorized, 621,104
shares issued and outstanding at September 2015 and 602,411 shares
issued and outstanding at September 2014
|
|
|
7,061
|
|
|
|
6,677
|
|
|
Additional paid-in capital
|
|
|
15,509,199
|
|
|
|
13,571,909
|
|
|
Retained earnings
|
|
|
53,527,606
|
|
|
|
47,829,201
|
|
|
Treasury stock at cost
|
|
|
(7,680,969
|
)
|
|
|
(5,965,503
|
)
|
|
Total shareholders’ equity
|
|
|
61,362,897
|
|
|
|
55,442,284
|
|
|
|
|
|
$120,183,807
|
|
|
|
$108,679,952
|
|
|
|
|
|
|
|
|
|
|
|
|
AMCON Distributing Company and Subsidiaries
|
|
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
|
|
|
|
|
|
Fiscal Years Ended September
|
|
|
|
|
2015
|
|
|
2014
|
|
Sales (including excise taxes of $390.8 million and $387.8 million,
respectively)
|
|
|
$1,281,855,896
|
|
|
|
$1,236,755,388
|
|
|
Cost of sales
|
|
|
1,205,287,311
|
|
|
|
1,160,248,793
|
|
|
Gross profit
|
|
|
76,568,585
|
|
|
|
76,506,595
|
|
|
Selling, general and administrative expenses
|
|
|
62,769,438
|
|
|
|
64,723,824
|
|
|
Depreciation and amortization
|
|
|
2,264,184
|
|
|
|
2,386,402
|
|
|
|
|
|
65,033,622
|
|
|
|
67,110,226
|
|
|
Operating income
|
|
|
11,534,963
|
|
|
|
9,396,369
|
|
|
Other expense (income):
|
|
|
|
|
|
|
|
Interest expense
|
|
|
841,739
|
|
|
|
935,360
|
|
|
Other (income), net
|
|
|
(69,054
|
)
|
|
|
(130,519
|
)
|
|
|
|
|
772,685
|
|
|
|
804,841
|
|
|
Income from operations before income tax expense
|
|
|
10,762,278
|
|
|
|
8,591,528
|
|
|
Income tax expense
|
|
|
4,401,000
|
|
|
|
3,632,000
|
|
|
Net income
|
|
|
6,361,278
|
|
|
|
4,959,528
|
|
|
Preferred stock dividend requirements
|
|
|
(195,105
|
)
|
|
|
(195,105
|
)
|
|
Net income available to common shareholders
|
|
|
$6,166,173
|
|
|
|
$4,764,423
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share available to common shareholders:
|
|
|
$9.96
|
|
|
|
$7.81
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share available to common shareholders:
|
|
|
$8.59
|
|
|
|
$6.75
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average shares outstanding
|
|
|
619,295
|
|
|
|
610,392
|
|
|
Diluted weighted average shares outstanding
|
|
|
740,233
|
|
|
|
735,227
|
|
|
|
|
|
|
|
|
|
|
|
|
AMCON Distributing Company and Subsidiaries
|
|
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
Fiscal Years Ended September
|
|
|
|
|
2015
|
|
|
2014
|
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
Net income
|
|
|
$6,361,278
|
|
|
|
$4,959,528
|
|
|
Adjustments to reconcile income from operations to net cash flows
from operating activities:
|
|
|
|
|
|
|
|
Depreciation
|
|
|
1,899,184
|
|
|
|
2,021,402
|
|
|
Amortization
|
|
|
365,000
|
|
|
|
365,000
|
|
|
(Gain) loss on sale of property and equipment
|
|
|
76,546
|
|
|
|
(59,449
|
)
|
|
Equity-based compensation
|
|
|
1,224,661
|
|
|
|
1,406,033
|
|
|
Net excess tax benefit on equity-based awards
|
|
|
(320,000
|
)
|
|
|
—
|
|
|
Deferred income taxes
|
|
|
264,336
|
|
|
|
382,959
|
|
|
Provision (recoveries) for losses on doubtful accounts
|
|
|
82,000
|
|
|
|
(317,000
|
)
|
|
Provision for losses on inventory obsolescence
|
|
|
69,324
|
|
|
|
44,695
|
|
|
Other
|
|
|
(8,045
|
)
|
|
|
(8,045
|
)
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
1,338,145
|
|
|
|
(4,586,727
|
)
|
|
Inventories
|
|
|
(17,227,536
|
)
|
|
|
3,403,156
|
|
|
Prepaid and other current assets
|
|
|
2,908,662
|
|
|
|
(32,578
|
)
|
|
Other assets
|
|
|
130,965
|
|
|
|
49,733
|
|
|
Accounts payable
|
|
|
643,487
|
|
|
|
591,478
|
|
|
Accrued expenses and accrued wages, salaries and bonuses
|
|
|
1,028,560
|
|
|
|
(238,994
|
)
|
|
Income taxes payable
|
|
|
(1,396,852
|
)
|
|
|
(318,737
|
)
|
|
Net cash flows from operating activities
|
|
|
(2,560,285
|
)
|
|
|
7,662,454
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
Purchase of property and equipment
|
|
|
(1,018,391
|
)
|
|
|
(2,796,326
|
)
|
|
Proceeds from sales of property and equipment
|
|
|
41,000
|
|
|
|
192,373
|
|
|
Acquisitions
|
|
|
—
|
|
|
|
(996,803
|
)
|
|
Net cash flows from investing activities
|
|
|
(977,391
|
)
|
|
|
(3,600,756
|
)
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
Net borrowings on bank credit agreements
|
|
|
5,820,424
|
|
|
|
240,071
|
|
|
Principal payments on long-term debt
|
|
|
(341,190
|
)
|
|
|
(998,788
|
)
|
|
Proceeds from the exercise of stock options
|
|
|
450,000
|
|
|
|
—
|
|
|
Repurchase of common stock
|
|
|
(1,715,466
|
)
|
|
|
(2,664,547
|
)
|
|
Net excess tax benefit on equity-based awards
|
|
|
320,000
|
|
|
|
—
|
|
|
Dividends paid on convertible preferred stock
|
|
|
(195,105
|
)
|
|
|
(195,105
|
)
|
|
Dividends on common stock
|
|
|
(467,768
|
)
|
|
|
(468,034
|
)
|
|
Withholdings on the exercise of equity-based awards
|
|
|
(213,605
|
)
|
|
|
(150,409
|
)
|
|
Net cash flow from financing activities
|
|
|
3,657,290
|
|
|
|
(4,236,812
|
)
|
|
Net change in cash
|
|
|
119,614
|
|
|
|
(175,114
|
)
|
|
Cash, beginning of year
|
|
|
99,922
|
|
|
|
275,036
|
|
|
Cash, end of year
|
|
|
$219,536
|
|
|
|
$99,922
|
|
|
|
|
|
|
|
|
|
|
Supplemental disclosure of cash flow information:
|
|
|
|
|
|
|
|
Cash paid during the year for interest
|
|
|
$828,005
|
|
|
|
$946,881
|
|
|
Cash paid during the year for income taxes
|
|
|
5,533,516
|
|
|
|
3,567,778
|
|
|
|
|
|
|
|
|
|
|
Supplemental disclosure of non-cash information:
|
|
|
|
|
|
|
|
Equipment acquisitions classified as accounts payable
|
|
|
$23,329
|
|
|
|
$34,985
|
|
|
Issuance of common stock in connection with the vesting and exercise
of equity-based awards
|
|
|
1,240,842
|
|
|
|
1,154,869
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMCON Distributing Company and Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FISCAL YEAR 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands, except per share data)
|
|
|
First
|
|
|
Second
|
|
|
Third
|
|
|
Fourth
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
|
$
|
315,433
|
|
|
|
$
|
287,444
|
|
|
|
$
|
334,457
|
|
|
|
$
|
344,522
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
19,527
|
|
|
|
|
17,733
|
|
|
|
|
19,499
|
|
|
|
|
19,810
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations before income tax expense
|
|
|
|
2,539
|
|
|
|
|
1,498
|
|
|
|
|
3,329
|
|
|
|
|
3,396
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
1,546
|
|
|
|
|
769
|
|
|
|
|
1,996
|
|
|
|
|
2,050
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock dividend requirements
|
|
|
|
(49
|
)
|
|
|
|
(48
|
)
|
|
|
|
(49
|
)
|
|
|
|
(49
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to common shareholders
|
|
|
$
|
1,497
|
|
|
|
$
|
721
|
|
|
|
$
|
1,947
|
|
|
|
$
|
2,001
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share available to common shareholders
|
|
|
$
|
2.44
|
|
|
|
$
|
1.17
|
|
|
|
$
|
3.16
|
|
|
|
$
|
3.16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share available to common shareholders
|
|
|
$
|
2.11
|
|
|
|
$
|
1.04
|
|
|
|
$
|
2.69
|
|
|
|
$
|
2.73
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FISCAL YEAR 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands, except per share data)
|
|
|
First
|
|
|
Second
|
|
|
Third
|
|
|
Fourth
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
|
$
|
305,626
|
|
|
|
$
|
272,422
|
|
|
|
$
|
322,648
|
|
|
|
$
|
336,060
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
19,641
|
|
|
|
|
17,620
|
|
|
|
|
19,295
|
|
|
|
|
19,951
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations before income tax expense
|
|
|
|
2,253
|
|
|
|
|
995
|
|
|
|
|
2,250
|
|
|
|
|
3,093
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
1,288
|
|
|
|
|
531
|
|
|
|
|
1,260
|
|
|
|
|
1,880
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock dividend requirements
|
|
|
|
(49
|
)
|
|
|
|
(48
|
)
|
|
|
|
(49
|
)
|
|
|
|
(49
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to common shareholders
|
|
|
$
|
1,239
|
|
|
|
$
|
483
|
|
|
|
$
|
1,211
|
|
|
|
$
|
1,831
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share available to common shareholders
|
|
|
$
|
1.99
|
|
|
|
$
|
0.79
|
|
|
|
$
|
2.00
|
|
|
|
$
|
3.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share available to common shareholders
|
|
|
$
|
1.73
|
|
|
|
$
|
0.72
|
|
|
|
$
|
1.73
|
|
|
|
$
|
2.57
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 converted. 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, conversion of convertible preferred stock and vesting
of restricted stock units divided by total common shares outstanding
plus common shares issuable upon the exercise of all stock options,
conversion of convertible preferred stock and vesting of restricted
stock units.”
|
|
|
|
|
|
|
|
|
September 2015
|
|
Number of common shares outstanding at September 30, 2015
|
|
|
|
621,104
|
|
Total shareholders’ equity at September 30, 2015
|
|
|
$
|
61,362,897
|
|
|
|
|
|
|
Book value per share at September 30, 2015
|
|
|
$
|
98.80
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 2015
|
|
Number of common shares outstanding at September 30, 2015
|
|
|
|
621,104
|
|
Add: common shares potentially issuable for stock options,
convertible preferred stock, and unvested restricted stock units /1/
|
|
|
|
149,785
|
|
|
|
|
|
770,889
|
|
|
|
|
|
|
Total shareholders’ equity at September 30, 2015
|
|
|
$
|
61,362,897
|
|
Equity impact if all potential common shares were converted /1/
|
|
|
|
6,651,906
|
|
|
|
|
$
|
68,014,803
|
|
|
|
|
|
|
Adjusted book value per share at September 30, 2015
|
|
|
$
|
88.23
|
|
|
|
|
|
|
|
|
|
|
|
|
/1/
|
|
|
Assumes the exercise of all vested and unvested stock options,
conversion of all preferred stock, and vesting of all outstanding
restricted stock units at September 30, 2015.
|
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20151106005958/en/
Copyright Business Wire 2015