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News   Press Releases

AMCON Distributing Company Reports Fully Diluted Earnings Per Share of $1.61 for the Quarter Ended March 31, 2016

DIT | April 18, 2016

AMCON Distributing Company (“AMCON”) (NYSE MKT:DIT), an Omaha, Nebraska based consumer products company is pleased to announce fully diluted earnings per share of $1.61 on net income available to common shareholders of $1.1 million for the fiscal quarter ended March 31, 2016.

“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.”

Each of AMCON’s business segments reported solid quarters. The wholesale distribution segment reported revenues of $288.9 million and operating income before depreciation and amortization of $3.5 million for the second fiscal quarter of 2016. The retail health food segment reported revenues of $7.5 million and operating income before depreciation and amortization of $0.6 million for the same period.

“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.

“Our management team is focusing on a variety of initiatives designed to enhance the operating economics of our retail stores. We operate in a competitive environment that continues to be highly challenging,” said Eric Hinkefent, President of AMCON’s Retail Health Food Segment.

“We actively manage our working capital and liquidity which provides us the 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,” said Andrew C. Plummer, AMCON’s Chief Financial Officer. “We were pleased to close the March 31, 2016 quarter with shareholders’ equity of $62.0 million and consolidated debt of $21.2 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, 2016 and September 30, 2015
       
March September
2016 2015
(Unaudited)
ASSETS
Current assets:
Cash $ 321,990 $ 219,536
Accounts receivable, less allowance for doubtful accounts of $0.8 million at March 2016 and $0.9 million at September 2015 29,255,947 31,866,787
Inventories, net 56,594,107 60,793,478
Deferred income taxes 1,278,006 1,553,726
Income taxes receivable — 113,238
Prepaid and other current assets   4,080,280     2,125,908  
Total current assets 91,530,330 96,672,673
 
Property and equipment, net 12,465,906 12,753,145
Goodwill 6,349,827 6,349,827
Other intangible assets, net 3,908,478 4,090,978
Other assets   296,717     317,184  
$ 114,551,258   $ 120,183,807  
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable $ 16,033,216 $ 17,044,726
Accrued expenses 5,860,058 7,224,963
Accrued wages, salaries and bonuses 2,558,420 3,282,354
Income taxes payable 230,066 —
Current maturities of long-term debt   357,000     351,383  
Total current liabilities 25,038,760 27,903,426
 
Credit facility 17,609,387 20,902,207
Deferred income taxes 3,772,620 3,696,098
Long-term debt, less current maturities 3,204,052 3,384,319
Other long-term liabilities 30,838 34,860
 

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 March 2016 and September 2015

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 both March 2016 and September 2015, and a total liquidation preference of $0.4 million at both March 2016 and September 2015 400,000 400,000
 
Shareholders’ equity:
Preferred stock, $.01 par value, 1,000,000 shares authorized, 116,000 shares outstanding and issued in Series A and B referred to above — —
Common stock, $.01 par value, 3,000,000 shares authorized, 604,022 shares outstanding at March 2016 and 621,104 shares outstanding at September 2015 7,197 7,061
Additional paid-in capital 16,697,234 15,509,199
Retained earnings 55,519,822 53,527,606
Treasury stock at cost   (10,228,652 )   (7,680,969 )
Total shareholders’ equity   61,995,601     61,362,897  
$ 114,551,258   $ 120,183,807  
 

 
AMCON Distributing Company and Subsidiaries
Condensed Consolidated Unaudited Statements of Operations
for the three and six months ended March 31, 2016 and 2015
               

For the three months ended March

For the six months ended March

2016 2015 2016 2015
Sales (including excise taxes of $88.7 million and $87.4 million, and $186.0 million and $184.4 million, respectively) $ 296,449,126 $ 287,443,864 $ 618,457,375 $ 602,877,340
Cost of sales   278,908,888     269,710,529     581,955,233     565,617,473  
Gross profit   17,540,238     17,733,335     36,502,142     37,259,867  
Selling, general and administrative expenses 14,770,358 15,485,757 30,615,492 31,666,879
Depreciation and amortization   575,681     590,857     1,142,630     1,167,162  
  15,346,039     16,076,614     31,758,122     32,834,041  
Operating income   2,194,199     1,656,721     4,744,020     4,425,826  
 
Other expense (income):
Interest expense 161,402 194,375 373,856 431,517
Other (income), net   (35,827 )   (35,987 )   (63,082 )   (43,054 )
  125,575     158,388     310,774     388,463  
Income from operations before income tax expense 2,068,624 1,498,333 4,433,246 4,037,363
Income tax expense   922,000     729,000     1,931,000     1,722,000  
Net income 1,146,624 769,333 2,502,246 2,315,363
Preferred stock dividend requirements   (48,643 )   (48,108 )   (97,820 )   (97,285 )
Net income available to common shareholders $ 1,097,981   $ 721,225   $ 2,404,426   $ 2,218,078  
 
Basic earnings per share available to common shareholders $ 1.81 $ 1.17 $ 3.90 $ 3.61
Diluted earnings per share available to common shareholders $ 1.61 $ 1.04 $ 3.46 $ 3.15
 
Basic weighted average shares outstanding 606,080 615,822 615,768 614,173
Diluted weighted average shares outstanding 712,547 737,180 723,317 735,599
 
Dividends declared and paid per common share $ 0.18 $ 0.18 $ 0.64 $ 0.36
 

 
AMCON Distributing Company and Subsidiaries
Condensed Consolidated Unaudited Statements of Cash Flows
for the six months ended March 31, 2016 and 2015
       
2016 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 2,502,246 $ 2,315,363
Adjustments to reconcile net income from operations to net cash flows from operating activities:
Depreciation 960,130 984,662
Amortization 182,500 182,500
(Gain) loss on sale of property and equipment (34,482 ) 7,036
Equity-based compensation 660,203 607,661
Deferred income taxes 352,242 238,555
Provision (recovery) for losses on doubtful accounts (67,000 ) 159,999
Provision (recovery) for losses on inventory obsolescence 70,818 (34,189 )
Other (4,022 ) (4,023 )
 
Changes in assets and liabilities:
Accounts receivable 2,677,840 2,279,407
Inventories 4,128,553 (21,852,218 )
Prepaid and other current assets (1,954,372 ) 1,708,944
Other assets 20,467 111,792
Accounts payable (1,005,681 ) 200,996
Accrued expenses and accrued wages, salaries and bonuses (1,479,465 ) (862,235 )
Income taxes payable   343,304     (1,577,138 )
Net cash flows from operating activities 7,353,281 (15,532,888 )
 
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment (692,402 ) (611,106 )
Proceeds from sales of property and equipment   48,164     7,800  
Net cash flows from investing activities (644,238 ) (603,306 )
 
CASH FLOWS FROM FINANCING ACTIVITIES:
Net (payments) borrowings on bank credit agreements (3,292,820 ) 16,881,883
Principal payments on long-term debt (174,650 ) (169,782 )
Repurchase of common stock (2,547,683 ) —
Dividends paid on convertible preferred stock (97,820 ) (97,285 )
Dividends on common stock (412,210 ) (232,488 )
Withholdings on the exercise of equity-based awards   (81,406 )   (156,497 )
Net cash flows from financing activities   (6,606,589 )   16,225,831  
 
Net change in cash 102,454 89,637
 
Cash, beginning of period   219,536     99,922  
Cash, end of period $ 321,990   $ 189,559  
 
Supplemental disclosure of cash flow information:
Cash paid during the period for interest $ 391,130 $ 403,758
Cash paid during the period for income taxes 1,235,454 3,060,584
 
Supplemental disclosure of non-cash information:
Equipment acquisitions classified as accounts payable 17,500 48,754
Issuance of common stock in connection with the vesting and exercise of equity-based awards 1,174,981 1,240,842
 

AMCON Distributing Company
Christopher H. Atayan, 402-331-3727

Copyright Business Wire 2016
Business Wire
April 18, 2016 - 4:01 PM EDT

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