AMCON Distributing Company Reports Fully Diluted Earnings Per Share of $2.19 for the Fiscal Quarter

AMCON Distributing Company Reports Fully Diluted Earnings Per Share of $2.19 for the Fiscal Quarter Ended June 30, 2013

OMAHA, Neb.--(BUSINESS WIRE)-- AMCON Distributing Company ("AMCON") (NYSE MKT: DIT), an Omaha, Nebraska based consumer products company is pleased to announce fully diluted earnings per share of $2.19 on net income available to common stockholders of $1.6 million for the fiscal quarter ended June 30, 2013.

"We are pleased with the continued strong performance of the Company. Our management team is highly focused on generating attractive rates of return on the capital we deploy. Our lending group continues to work closely with our management team to further our strategic initiatives and we are delighted to announce the renewal and enhancement of our existing credit facility," said Christopher H. Atayan, AMCON's Chairman and Chief Executive Officer. "We continue to actively seek strategic acquisitions in both our business segments," added Atayan.


Each of AMCON's business segments reported good quarters. The wholesale distribution segment reported revenues of $306.7 million and operating income before depreciation and amortization of $4.4 million for the third fiscal quarter of 2013. The retail health food segment reported revenues of $9.3 million and operating income before depreciation and amortization of $0.5 million for the same period.

"We continue to focus on developing non-tobacco products and services to enhance the bottom line of our customers. AMCON has made a long term commitment of resources to this end," said Kathleen Evans, President of AMCON's wholesale distribution segment.

"Both of our new retail stores are now operational and in their initial build up phase. We are working diligently to generate store traffic and sales volumes to enable these stores to contribute to our bottom line," said Eric Hinkefent, President of AMCON's retail health food segment.

"We were able to utilize our balance sheet to implement attractive merchant opportunities this quarter. We closely manage our liquidity on a day-to-day basis to capitalize on these opportunities in a meaningful way. At June 30, 2013, our stockholders' equity was $51.3 million and consolidated debt was $33.4 million," said Andrew Plummer, AMCON's Chief Financial Officer. Plummer added, "We are extremely pleased with the favorable terms of our credit facility extension and the enhancements thereto. This renewal provides increased flexibility, ready access to capital, and reduced interest rates while extending our deep relationship with our existing lending group through July 2018."

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
June 30, 2013 and September 30, 2012
    
JuneSeptember
20132012
(Unaudited)
ASSETS
Current assets:
Cash$177,452$491,387
Accounts receivable, less allowance for doubtful accounts of $1.2 million at both June 2013 and September 201235,454,48632,681,835
Inventories, net48,138,31038,364,621
Deferred income taxes1,730,1261,916,619
Prepaid and other current assets 8,098,720  6,476,702 
Total current assets93,599,09479,931,164
 
Property and equipment, net13,311,64813,083,912
Goodwill6,349,8276,349,827
Other intangible assets, net4,912,2285,185,978
Other assets 442,361  1,258,985 
$118,615,158 $105,809,866 
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable$16,128,607$17,189,208
Accrued expenses6,663,7626,931,859
Accrued wages, salaries and bonuses2,830,9242,503,361
Income taxes payable1,098,3542,194,966
Current maturities of long-term debt 1,214,256  1,182,829 
Total current liabilities27,935,90330,002,223
 
Credit facility28,051,38914,353,732
Deferred income taxes3,896,0853,633,390
Long-term debt, less current maturities4,160,3305,075,680
Other long-term liabilities330,152336,186

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 June 2013 and September 2012

2,500,0002,500,000

Series B cumulative, convertible preferred stock, $.01 par value 80,000 shares authorized, 16,000 shares issued and outstanding at June 30, 2013 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 June 2013 and September 2012, respectively

400,0001,450,000
 

Shareholders' equity:

Preferred stock, $.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 June 2013 and 612,327 shares outstanding at September 2012

6,5436,293
Additional paid-in capital12,485,77311,021,109
Retained earnings42,149,93938,349,253
Treasury stock at cost (3,300,956) (918,000)
Total shareholders' equity 51,341,299  48,458,655 
$118,615,158 $105,809,866 
 

 
AMCON Distributing Company and Subsidiaries
Condensed Consolidated Unaudited Statements of Operations
for the three and nine months ended June 30, 2013 and 2012
 
  For the three months  For the nine months
ended Juneended June
2013  20122013  2012
Sales (including excise taxes of $100.2 million and $96.1 million, and $285.4 million and $272.7 million, respectively)$316,031,197$307,112,774$892,817,669$866,505,090
Cost of sales 296,220,406  287,211,769  835,480,069  808,750,009 
Gross profit 19,810,791  19,901,005  57,337,600  57,755,081 
 

Selling, general and administrative expenses

16,065,28515,845,20147,351,95247,096,958
Depreciation and amortization 598,061  552,888  1,791,708  1,780,309 
 16,663,346  16,398,089  49,143,660  48,877,267 
Operating income 3,147,445  3,502,916  8,193,940  8,877,814 
 
Other expense (income):
Interest expense309,445361,756874,4891,105,707
Other (income), net (49,487) (47,841) (225,682) (292,979)
 259,958  313,915  648,807  812,728 
Income from operations before income tax expense2,887,4873,189,0017,545,1338,065,086
Income tax expense 1,255,000  1,343,000  3,236,000  3,316,000 
Net income1,632,4871,846,0014,309,1334,749,086
Preferred stock dividend requirements (48,642) (66,907) (156,041) (201,454)
Net income available to common shareholders$1,583,845 $1,779,094 $4,153,092 $4,547,632 
 
 
Basic earnings per share available to common shareholders$2.54$2.92$6.67$7.38
Diluted earnings per share available to common shareholders$2.19$2.37$5.73$6.06
 
Basic weighted average shares outstanding623,115608,271622,833615,913
Diluted weighted average shares outstanding744,732779,106751,946783,987
 

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AMCON Distributing Company and Subsidiaries
Condensed Consolidated Unaudited Statements of Cash Flows
for the nine months ended June 30, 2013 and 2012
 
  2013  2012
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income$4,309,133$4,749,086
Adjustments to reconcile net income from operations to net cash flows from operating activities:
Depreciation1,517,9581,496,868
Amortization273,750283,441
Gain on sale of property and equipment(72,318)(28,606)
Equity-based compensation971,954930,593
Deferred income taxes449,1881,022,701
Provision for losses on doubtful accounts80,00075,757
Provision for losses on inventory obsolescence54,02898,789
Other(6,034)(6,034)
 
Changes in assets and liabilities:
Accounts receivable(2,852,651)(1,144,999)
Inventories(9,827,717)(11,031,978)
Prepaid and other current assets(1,622,018)1,097,241
Other assets55,753(51,138)
Accounts payable(1,070,612)(2,396,748)
Accrued expenses and accrued wages, salaries and bonuses525,856(19,827)
Income tax payable (1,096,612) (1,796,182)
Net cash flows from operating activities(8,310,342)(6,721,036)
 
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment(1,808,206)(914,486)
Proceeds from sales of property and equipment 144,841  48,984 
Net cash flows from investing activities(1,663,365)(865,502)