AMCON Distributing Company (?AMCON?) (NYSE AMEX:DIT), an Omaha, Nebraska based consumer products company is pleased to announce fully diluted earnings per share of $2.41 on net income available to common stockholders of $1.8 million for the first fiscal quarter ended December 31, 2010.
?We were pleased with the performance this quarter. Management is steadfastly focused on delivering a premium level of service to our customers. We believe this philosophy enhances our customer's bottom line which ultimately benefits our shareholders,? said Christopher H. Atayan, AMCON's Chairman and Chief Executive Officer.
Each of AMCON's business segments had solid quarters. The wholesale distribution segment reported revenues of $236.0 million and operating income before depreciation and amortization of $5.3 million in the first quarter of fiscal 2011. The retail health food segment reported revenues of $9.1 million and operating income before depreciation and amortization of $0.9 million for the same period.
?We are working closely with our customers on a wide variety of initiatives designed to enhance their profitability and efficiency. This close level of interaction is mutually beneficial and is the platform that drove our performance again this quarter,? said Kathleen Evans, President of AMCON's wholesale distribution segment.
?The natural foods segment is particularly sensitive to economic trends. We have been careful to maintain a high level of customer service during the downturn because we believe this posture fosters consumer loyalty and positions us well as the economy recovers,? said Eric Hinkefent, President of AMCON's retail health food segment.
?Our financial focus continues to be centered on balance sheet liquidity. We ended the quarter with total stockholders' equity of $35.5 million and consolidated debt of $23.0 million. We are carefully evaluating a number of capital projects related to information technology and foodservice that are designed to enhance our competitive position in the markets we serve,? said Andrew Plummer, AMCON's Chief Financial Officer.
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 and South Dakota. 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, 2010 and September 30, 2010 | ||||||
December | September | |||||
2010 | 2010 | |||||
(Unaudited) | ||||||
ASSETS | ||||||
Current assets: | ||||||
Cash | $ | 300,920 | $ | 356,735 | ||
Accounts receivable, less allowance for doubtful accounts of $1.0 million and $1.6 million at December 2010 and September 2010, respectively | 22,245,824 | 27,903,689 | ||||
Inventories, net | 36,060,248 | 35,005,957 | ||||
Deferred income taxes | 1,542,599 | 1,905,974 | ||||
Prepaid and other current assets | 4,772,035 | 3,013,485 | ||||
Total current assets | 64,921,626 | 68,185,840 | ||||
Property and equipment, net | 11,712,178 | 11,855,669 | ||||
Goodwill | 6,149,168 | 6,149,168 | ||||
Other intangible assets, net | 4,757,019 | 4,807,644 | ||||
Other assets | 1,075,563 | 1,069,050 | ||||
$ | 88,615,554 | $ | 92,067,371 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
Current liabilities: | ||||||
Accounts payable | $ | 14,698,370 | $ | 16,656,257 | ||
Accrued expenses | 6,506,609 | 6,007,900 | ||||
Accrued wages, salaries and bonuses | 2,085,776 | 3,161,817 | ||||
Income taxes payable | 1,100,779 | 2,366,667 | ||||
Current maturities of long-term debt | 851,153 | 893,291 | ||||
Total current liabilities | 25,242,687 | 29,085,932 | ||||
Credit facility | 17,169,003 | 18,816,709 | ||||
Deferred income taxes | 1,135,311 | 1,075,861 | ||||
Long-term debt, less current maturities | 5,018,717 | 5,226,586 | ||||
Other long-term liabilities | 73,072 | 587,479 | ||||
Series A cumulative, convertible preferred stock, $.01 par value 100,000 shares authorized and issued, liquidation preference $25.00 per share | 2,500,000 | 2,500,000 | ||||
Series B cumulative, convertible preferred stock, $.01 par value 80,000 shares authorized and issued, liquidation preference $25.00 per share | 2,000,000 | 2,000,000 | ||||
Shareholders' equity: | ||||||
Preferred stock, $0.01 par, 1,000,000 shares authorized, 180,000
shares
outstanding and issued in Series A and B referred to above | ? | ? | ||||
Common stock, $.01 par value, 3,000,000 shares authorized, 590,232
shares
outstanding at December 2010 and 577,432 shares outstanding at September 2010 | 5,902 | 5,774 | ||||
Additional paid-in capital | 9,425,208 | 8,376,640 | ||||
Retained earnings | 26,045,654 | 24,392,390 | ||||
Total shareholders' equity | 35,476,764 | 32,774,804 | ||||
$ | 88,615,554 | $ | 92,067,371 | |||
AMCON Distributing Company and Subsidiaries | ||||||||
Condensed Consolidated Unaudited Statements of Operations | ||||||||
for the three months ended December 31, 2010 and 2009 | ||||||||
2010 | 2009 | |||||||
Sales (including excise taxes of $81.3 million and $81.6 million, respectively) | $ | 244,957,161 | $ | 243,941,038 | ||||
Cost of sales | 227,349,439 | 226,713,025 | ||||||
Gross profit | 17,607,722 | 17,228,013 | ||||||
Selling, general and administrative expenses | 13,687,371 | 13,778,739 | ||||||
Depreciation and amortization | 497,583 | 387,269 | ||||||
14,184,954 | 14,166,008 | |||||||
Operating income | 3,422,768 | 3,062,005 | ||||||
Other expense (income): | ||||||||
Interest expense | 384,583 | 405,245 | ||||||
Other (income), net | (22,881 | ) | (13,380 | ) | ||||
361,702 | 391,865 | |||||||
Income from operations before income taxes | 3,061,066 | 2,670,140 | ||||||
Income tax expense | 1,229,000 | 941,000 | ||||||
Net income | 1,832,066 | 1,729,140 | ||||||
Preferred stock dividend requirements | (74,867 | ) | (74,867 | ) | ||||
Net income available to common shareholders | $ | 1,757,199 | $ | 1,654,273 | ||||
Basic earnings per share available to common shareholders | $ | 3.04 | $ | 2.95 | ||||
Diluted earnings per share available to common shareholders | $ | 2.41 | $ | 2.32 | ||||
Basic weighted average shares outstanding | 578,636 | 560,119 | ||||||
Diluted weighted average shares outstanding | 758,692 | 745,223 | ||||||
AMCON Distributing Company and Subsidiaries | ||||||||
Condensed Consolidated Unaudited Statements of Cash Flows | ||||||||
for the three months ended December 31, 2010 and 2009 | ||||||||
2010 | 2009 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 1,832,066 | $ | 1,729,140 | ||||
Adjustments to reconcile net income from operations to net cash flows from operating activities: | ||||||||
Depreciation | 418,565 | 338,099 | ||||||
Amortization | 79,018 | 49,170 | ||||||
Gain on sale of property and equipment | (2,315 | ) | (16,935 | ) | ||||
Stock based compensation | 1,166,833 | 163,364 | ||||||
Net excess tax benefit on equity-based awards | (79,863 | ) | (107,048 | ) | ||||
Deferred income taxes | 422,825 | 10,104 | ||||||
Provision for (recoveries) losses on doubtful accounts | (625,000 | ) | 16,426 | |||||
Provision for losses on inventory obsolescence | 81,416 | 76,703 | ||||||
Other | (2,011 | ) | ? | |||||
Changes in assets and liabilities: | ||||||||
Accounts receivable | 6,282,865 | 4,695,589 | ||||||
Inventories | (1,135,707 | ) | 3,442,508 | |||||
Prepaid and other current assets | (1,758,550 | ) | (2,679,354 | ) | ||||
Other assets | (6,513 | ) | 519 | |||||
Accounts payable | (1,949,184 | ) | (1,329,456 | ) | ||||
Accrued expenses and accrued wages, salaries and bonuses | (1,316,121 | ) | (2,127,887 | ) | ||||
Income tax payable | (1,186,025 | ) | (2,973,111 | ) | ||||
Net cash flows from operating activities | 2,222,299 | 1,287,831 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Purchases of property and equipment | (293,037 | ) | (596,612 | ) | ||||
Proceeds from sales of property and equipment | 11,575 | 34,306 | ||||||
Acquisition | ? | (3,099,836 | ) | |||||
Net cash flows from investing activities | (281,462 | ) | (3,662,142 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Net (payments) borrowings on bank credit agreements | (1,647,706 | ) | 2,769,851 | |||||
Principal payments on long-term debt | (250,007 | ) | (182,901 | ) | ||||
Proceeds from exercise of stock options | ? | 66,411 | ||||||
Net excess tax benefit on equity-based awards | 79,863 | 107,048 | ||||||
Dividends paid on convertible preferred stock | (74,867 | ) | (74,867 | ) | ||||
Dividends on common stock | (103,935 | ) | (103,181 | ) | ||||
Net cash flows from financing activities | (1,996,652 | ) | 2,582,361 | |||||
Net change in cash | (55,815 | ) | 208,050 | |||||
Cash, beginning of period | 356,735 | 309,914 | ||||||
Cash, end of period | $ | 300,920 | $ | 517,964 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Cash paid during the period for interest | $ | 372,376 | $ | 381,746 | ||||
Cash paid during the period for income taxes | 1,992,200 | 3,903,998 | ||||||
Supplemental disclosure of non-cash information: | ||||||||
Equipment acquisitions classified as accounts payable | 29,503 | 21,512 | ||||||
Business acquisition: | ||||||||
Inventory | ? | 1,981,498 | ||||||
Property and equipment | ? | 122,978 | ||||||
Customer relationships intangible asset | ? | 1,620,000 | ||||||
Goodwill | ? | 300,360 | ||||||
Note payable | ? | 500,000 | ||||||
Contingent consideration | ? | 425,000 | ||||||
AMCON Distributing Company
Christopher H. Atayan
402-331-3727