AMCON Distributing Company Reports Fully Diluted Earnings Per Share of $1.90 for the Fiscal Quarter

AMCON Distributing Company Reports Fully Diluted Earnings Per Share of $1.90 for the Fiscal Quarter Ended December 31, 2012

OMAHA, Neb.--(BUSINESS WIRE)-- AMCON Distributing Company ("AMCON") (NYSE AMEX MKT:DIT), an Omaha, Nebraska based consumer products company is pleased to announce fully diluted earnings per share of $1.90 on net income available to common shareholders of $1.4 million for the fiscal quarter ended December 31, 2012.

"Our management team is committed to the development of our focused business strategy in a diligent fashion. AMCON's culture of extreme dedication to customer service is what enables us to deliver consistent results. The depth and breadth of our customer relationships, in both our divisions, is an important and valuable asset as the merchant landscape remains highly competitive," said Christopher H. Atayan, AMCON's Chairman and Chief Executive Officer. "We carefully manage our balance sheet and pay particular attention to the risk adjusted return on capital we employ. This approach, consistently applied, has enabled us to develop shareholder value over the long term, while prudently managing risk," noted Mr. Atayan.


"The price/value relationship of our products and services are extremely important to our customer base. We are in alignment with our customers and our key vendors to develop dynamic merchandising programs that foster customer profitability and growth. We continue to make investments in foodservice and information technology as a key component of our program development," said Kathleen Evans, President of AMCON's wholesale distribution segment.

"We are progressing toward the opening of our two new stores located in Northwest Arkansas and Omaha, Nebraska. Site development and other preparations are going smoothly," said Eric Hinkefent, President of AMCON's retail health food segment. "We continue to look for new locations which support our customer focused business model," added Mr. Hinkefent.

"We were able to use our balance sheet strength to achieve several corporate objectives during the quarter. We negotiated the repurchase of 38,000 shares of preferred stock and 14,209 shares of common stock while at the same time taking advantage of attractive product related opportunities. At December 31, 2012, shareholders' equity was $48.8 million and consolidated debt was $36.3 million," said Andrew Plummer, AMCON's Chief Financial Officer. "We continue to make a wide variety of capital investments that will enhance our ability to provide first class service and support to our customers," added 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 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, 2012 and September 30, 2012

December

September

2012

2012

(Unaudited)

ASSETS

Current assets:

Cash

$

34,802

$

491,387

Accounts receivable, less allowance for doubtful accounts of $1.3 million and $1.2 million at December 2012 and September 2012, respectively

32,335,062

32,681,835

Inventories, net

49,705,411

38,364,621

Deferred income taxes

1,618,414

1,916,619

Prepaid and other current assets

7,355,045

6,476,702

Total current assets

91,048,734

79,931,164

Property and equipment, net

12,895,924

13,083,912

Goodwill

6,349,827

6,349,827

Other intangible assets, net

5,094,728

5,185,978

Other assets

441,409

1,258,985

$

115,830,622

$

105,809,866

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Accounts payable

$

15,220,297

$

17,189,208

Accrued expenses

5,709,984

6,931,859

Accrued wages, salaries and bonuses

2,146,303

2,503,361

Income taxes payable

625,784

2,194,966

Current maturities of long-term debt

1,192,560

1,182,829

Total current liabilities

24,894,928

30,002,223

Credit facility

30,379,181

14,353,732

Deferred income taxes

3,754,812

3,633,390

Long-term debt, less current maturities

4,773,604

5,075,680

Other long-term liabilities

334,175

336,186

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 2012 and September 2012.

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 December 31, 2012 and 58,000 shares issued and outstanding at September 30, 2012, and a total liquidation preference of $0.4 million and $1.5 million at December 2012 and September 2012, respectively.

400,000

1,450,000

Shareholders' equity:

Preferred stock, $0.01 par value, 1,000,000 shares authorized, 116,000 and 158,000 shares outstanding and issued in Series A and B referred to above

Common stock, $.01 par value, 3,000,000 shares authorized, 623,115 shares outstanding at December 2012 and 612,327 shares outstanding at September 2012

6,543

6,293

Additional paid-in capital

12,453,049

11,021,109

Retained earnings

39,635,286

38,349,253

Treasury stock at cost

(3,300,956

)

(918,000

)

Total shareholders' equity

48,793,922

48,458,655

$

115,830,622

$

105,809,866

AMCON Distributing Company and Subsidiaries

Condensed Consolidated Unaudited Statements of Operations

for the three months ended December 31, 2012 and 2011

2012

2011

Sales (including excise taxes of $98.0 million and $90.5 million, respectively)

$

302,218,321

$

283,563,050

Cost of sales

282,988,532

264,925,373

Gross profit

19,229,789

18,637,677

Selling, general and administrative expenses

15,848,472

15,350,002

Depreciation and amortization

593,862

613,494

16,442,334

15,963,496

Operating income

2,787,455

2,674,181

Other expense (income):

Interest expense

316,052

424,110

Other (income), net

(61,349

)

(151,264

)

254,703

272,846

Income from operations before income tax expense

2,532,752

2,401,335

Income tax expense

1,070,000

963,000

Net income

1,462,752

1,438,335

Preferred stock dividend requirements

(59,291

)

(67,641

)

Net income available to common shareholders

$

1,403,461

$

1,370,694

Basic earnings per share available to common shareholders

$

2.26

$

2.21

Diluted earnings per share available to common shareholders

$

1.90

$

1.83

Basic weighted average shares outstanding

622,277

619,910

Diluted weighted average shares outstanding

767,957

783,994

AMCON Distributing Company and Subsidiaries

Condensed Consolidated Unaudited Statements of Cash Flows

for the three months ended December 31, 2012 and 2011

2012

2011

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income

$

1,462,752

$

1,438,335

Adjustments to reconcile net income from operations to net cash flows from operating activities:

Depreciation

502,612

512,555

Amortization

91,250

100,939

Gain on sale of property and equipment

(70,631

)

(3,600

)

Equity-based compensation

327,476

318,894

Deferred income taxes

419,627

449,159

Provision for losses on doubtful accounts

105,000

87,735

Provision for losses on inventory obsolescence

71,603

46,563

Other

(2,011

)

(2,012

)

Changes in assets and liabilities:

Accounts receivable

241,773

3,652,086

Inventories

(11,412,393

)

(9,538,609

)

Prepaid and other current assets

(878,343

)

1,122,163

Other assets

56,705

(4,175

)

Accounts payable

(2,021,716

)

(2,586,190

)

Accrued expenses and accrued wages, salaries and bonuses

(500,789

)

(1,731,517

)

Income tax payable

(1,569,182

)

(1,367,567

)

Net cash flows from operating activities

(13,176,267

)

(7,505,241

)

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchases of property and equipment

(330,228

)

(261,717

)

Proceeds from sales of property and equipment

139,040

3,600

Net cash flows from investing activities

(191,188

)

(258,117

)

CASH FLOWS FROM FINANCING ACTIVITIES:

Net borrowings on bank credit agreements

16,025,449

7,996,506

Principal payments on long-term debt

(292,345

)

(410,772

)

Repurchase of Series B Convertible Preferred Stock and common stock

(2,572,085

)

Dividends paid on convertible preferred stock

(59,291

)

(67,641

)

Dividends on common stock

(117,428

)

(119,313

)

Proceeds from exercise of stock options

1,180

1,180

Withholdings on the exercise of equity-based awards

(74,610

)

(51,452

)

Net cash flows from financing activities

12,910,870

7,348,508

Net change in cash

(456,585

)

(414,850

)

Cash, beginning of period

491,387

1,389,665

Cash, end of period

$

34,802

$

974,815

2012

2011

Supplemental disclosure of cash flow information:

Cash paid during the period for interest

$

279,667

$

401,312

Cash paid during the period for income taxes

2,219,555

1,881,407

Supplemental disclosure of non-cash information:

Equipment acquisitions classified as accounts payable

$

64,042

$

3,254

Issuance of common stock in connection with the vesting and exercise of equity-based awards

1,389,258

950,562

Conversion by holder of Series B Convertible Preferred Stock to common stock

100,000

Common stock acquired with other consideration

760,871



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

KEYWORDS: United States North America Nebraska

INDUSTRY KEYWORDS:

The article AMCON Distributing Company Reports Fully Diluted Earnings Per Share of $1.90 for the Fiscal Quarter Ended December 31, 2012 originally appeared on Fool.com.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.