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 and Akin's Natural Foods Market

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.

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AMCON Distributing Company and Subsidiaries

Condensed Consolidated Balance Sheets

December 31, 2012 and September 30, 2012

Current assets:
Accounts receivable, less allowance for doubtful accounts of $1.3 million and $1.2 million at December 2012 and September 2012, respectively32,335,06232,681,835
Inventories, net49,705,41138,364,621
Deferred income taxes1,618,4141,916,619
Prepaid and other current assets 7,355,045  6,476,702 
Total current assets91,048,73479,931,164
Property and equipment, net12,895,92413,083,912
Other intangible assets, net5,094,7285,185,978
Other assets 441,409  1,258,985 
$115,830,622 $105,809,866 
Current liabilities:
Accounts payable$15,220,297$17,189,208
Accrued expenses5,709,9846,931,859
Accrued wages, salaries and bonuses2,146,3032,503,361
Income taxes payable625,7842,194,966
Current maturities of long-term debt 1,192,560  1,182,829 

Total current liabilities

Credit facility30,379,18114,353,732
Deferred income taxes3,754,8123,633,390
Long-term debt, less current maturities4,773,6045,075,680
Other long-term liabilities334,175336,186

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.


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.


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

Additional paid-in capital12,453,04911,021,109
Retained earnings39,635,28638,349,253
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

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 expenses15,848,47215,350,002
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 expense316,052424,110
Other (income), net (61,349) (151,264)
 254,703  272,846 
Income from operations before income tax expense2,532,7522,401,335
Income tax expense 1,070,000  963,000 
Net income1,462,7521,438,335
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 outstanding622,277619,910
Diluted weighted average shares outstanding767,957783,994

AMCON Distributing Company and Subsidiaries

Condensed Consolidated Unaudited Statements of Cash Flows

for the three months ended December 31, 2012 and 2011

Net income$1,462,752$1,438,335

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

Gain on sale of property and equipment(70,631)(3,600)
Equity-based compensation327,476318,894
Deferred income taxes419,627449,159
Provision for losses on doubtful accounts105,00087,735
Provision for losses on inventory obsolescence71,60346,563
Changes in assets and liabilities:
Accounts receivable241,7733,652,086
Prepaid and other current assets(878,343)1,122,163
Other assets56,705(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)
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)
Net borrowings on bank credit agreements16,025,4497,996,506
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 options1,1801,180
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 
Supplemental disclosure of cash flow information:
Cash paid during the period for interest$279,667$401,312
Cash paid during the period for income taxes2,219,5551,881,407
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 awards1,389,258950,562
Conversion by holder of Series B Convertible Preferred Stock to common stock100,000
Common stock acquired with other consideration760,871

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

KEYWORDS:   United States  North America  Nebraska


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