AMCON Distributing Company (“AMCON”) (NYSE MKT:DIT), an Omaha, Nebraska based consumer products company is pleased to announce fully diluted earnings per share of $2.11 on net income available to common shareholders of $1.5 million for the fiscal quarter ended December 31, 2014.
“We are pleased with our start to fiscal 2015. Our relentless focus on customer service and reliability leads to a virtuous circle of profitability for our Customers and AMCON,” said Christopher H. Atayan, AMCON’s Chairman and Chief Executive Officer. He further noted, “Our focused strategic plan continues to position us as a leader in the Convenience Distribution industry. AMCON is actively seeking acquisitions that can benefit from our extensive platform of services.”
“One of our goals is to develop our business in higher margin non-traditional products. In particular, foodservice continues to be an area of focus as our sales in this category grow,” said Kathleen M. Evans, President of AMCON’s Wholesale Distribution Segment.
“Industry growth in the retail health food sector has led to greater competition from new market entrants and has pressured sales. We have carefully rationalized our expense structure while maintaining our customary high level of customer service,” said Eric Hinkefent, President of AMCON’s Retail Health Food Segment.
“We continue to invest in information technology for internal and external purposes as well as our foodservice capability across the entire Company now that the Rapid City, South Dakota expansion is complete,” said Andrew C. Plummer, AMCON’s Chief Financial Officer. Plummer added, “The nationwide trend of lower fuel prices helps our expense structure; however, our emphasis on growing the foodservice category requires refrigerated delivery equipment that increases fuel consumption. Additionally, we are logging more miles as we expand our territory to better serve our customers. We were pleased to close the December 31, 2014 quarter with shareholders’ equity of $58.0 million and consolidated debt of $24.8 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 | ||||||||
December | September | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash | $ | 173,707 | $ | 99,922 | ||||
| Accounts receivable, less allowance for doubtful accounts of $1.0 million and $0.8 million at December 2014 and September 2014, respectively | 33,408,314 | 33,286,932 | ||||||
| Inventories, net | 47,495,141 | 43,635,266 | ||||||
| Deferred income taxes | 1,245,371 | 1,606,168 | ||||||
| Prepaid and other current assets | 6,578,677 | 5,034,570 | ||||||
| Total current assets | 88,901,210 | 83,662,858 | ||||||
| Property and equipment, net | 13,629,797 | 13,763,140 | ||||||
| Goodwill | 6,349,827 | 6,349,827 | ||||||
| Other intangible assets, net | 4,364,728 | 4,455,978 | ||||||
| Other assets | 316,706 | 448,149 | ||||||
| $ | 113,562,268 | $ | 108,679,952 | |||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 16,264,507 | $ | 16,412,895 | ||||
| Accrued expenses | 5,408,114 | 6,891,308 | ||||||
| Accrued wages, salaries and bonuses | 2,080,691 | 2,647,969 | ||||||
| Income taxes payable | 491,450 | 1,603,614 | ||||||
| Current maturities of long-term debt | 343,777 | 341,190 | ||||||
| Total current liabilities | 24,588,539 | 27,896,976 | ||||||
| Credit facility | 20,812,554 | 15,081,783 | ||||||
| Deferred income taxes | 3,502,668 | 3,484,204 | ||||||
| Long-term debt, less current maturities | 3,648,704 | 3,735,702 | ||||||
| Other long-term liabilities | 136,991 | 139,003 | ||||||
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 2014 and September 2014. | 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 December 2014 and September 2014, and a total liquidation preference of $0.4 million at both December 2014 and September 2014. | 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, 615,822 shares outstanding at December 2014 and 602,411 shares outstanding at September 2014 | 6,811 | 6,677 | ||||||
| Additional paid-in capital | 14,721,867 | 13,571,909 | ||||||
| Retained earnings | 49,209,637 | 47,829,201 | ||||||
| Treasury stock at cost | (5,965,503 | ) | (5,965,503 | ) | ||||
| Total shareholders’ equity | 57,972,812 | 55,442,284 | ||||||
| $ | 113,562,268 | $ | 108,679,952 | |||||
AMCON Distributing Company and Subsidiaries | ||||||||
| 2014 | 2013 | |||||||
| Sales (including excise taxes of $96.9 million and $97.3 million at December 2014 and December 2013, respectively) | $ | 315,433,476 | $ | 305,625,557 | ||||
| Cost of sales | 295,906,944 | 285,984,494 | ||||||
| Gross profit | 19,526,532 | 19,641,063 | ||||||
| Selling, general and administrative expenses | 16,181,122 | 16,492,263 | ||||||
| Depreciation and amortization | 576,305 | 624,040 | ||||||
| 16,757,427 | 17,116,303 | |||||||
| Operating income | 2,769,105 | 2,524,760 | ||||||
| Other expense (income): | ||||||||
| Interest expense | 237,142 | 301,995 | ||||||
| Other (income), net | (7,067 | ) | (30,231 | ) | ||||
| 230,075 | 271,764 | |||||||
| Income from operations before income tax expense | 2,539,030 | 2,252,996 | ||||||
| Income tax expense | 993,000 | 965,000 | ||||||
| Net income | 1,546,030 | 1,287,996 | ||||||
| Preferred stock dividend requirements | (49,177 | ) | (49,177 | ) | ||||
| Net income available to common shareholders | $ | 1,496,853 | $ | 1,238,819 | ||||
| Basic earnings per share available to common shareholders | $ | 2.44 | $ | 1.99 | ||||
| Diluted earnings per share available to common shareholders | 2.11 | 1.73 | ||||||
| Basic weighted average shares outstanding | 612,560 | 622,226 | ||||||
| Diluted weighted average shares outstanding | 734,256 | 744,568 | ||||||
AMCON Distributing Company and Subsidiaries | ||||||||
| 2014 | 2013 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net income | $ | 1,546,030 | $ | 1,287,996 | ||||
Adjustments to reconcile net income from operations to net cash flows from operating activities: | ||||||||
| Depreciation | 485,055 | 532,790 | ||||||
| Amortization | 91,250 | 91,250 | ||||||
| (Gain) loss on sale of property and equipment | 12,036 | (7,704 | ) | |||||
| Equity-based compensation | 289,551 | 342,160 | ||||||
| Deferred income taxes | 379,261 | 484,838 | ||||||
| Provision for losses on doubtful accounts | 186,750 | 130,000 | ||||||
| Provision for losses on inventory obsolescence | 10,420 | 38,803 | ||||||
| Other | (2,012 | ) | (2,011 | ) | ||||
| Changes in assets and liabilities: | ||||||||
| Accounts receivable | (308,132 | ) | (3,838,855 | ) | ||||
| Inventories | (3,870,295 | ) | (4,900,694 | ) | ||||
| Prepaid and other current assets | (1,544,107 | ) | (2,030,838 | ) | ||||
| Other assets | 131,443 | 64,798 | ||||||
| Accounts payable | (174,140 | ) | 995 | |||||
| Accrued expenses and accrued wages, salaries and bonuses | (1,033,434 | ) | (928,307 | ) | ||||
| Income tax payable | (1,112,164 | ) | (1,669,022 | ) | ||||
| Net cash flows from operating activities | (4,912,488 | ) | (10,403,801 | ) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Purchases of property and equipment | (340,796 | ) | (985,678 | ) | ||||
| Proceeds from sales of property and equipment | 2,800 | 9,320 | ||||||
| Net cash flows from investing activities | (337,996 | ) | (976,358 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Net borrowings on bank credit agreements | 5,730,771 | 13,908,025 | ||||||
| Principal payments on long-term debt | (84,411 | ) | (302,076 | ) | ||||
| Repurchase of common stock and Series B Convertible Preferred Stock | ― | (1,941,918 | ) | |||||
| Dividends paid on convertible preferred stock | (49,177 | ) | (49,177 | ) | ||||
| Dividends on common stock | (116,417 | ) | (120,628 | ) | ||||
| Withholdings on the exercise of equity-based awards | (156,497 | ) | (62,713 | ) | ||||
| Net cash flows from financing activities | 5,324,269 | 11,431,513 | ||||||
| Net change in cash | 73,785 | 51,354 | ||||||
Cash, beginning of period | 99,922 | 275,036 | ||||||
| Cash, end of period | $ | 173,707 | $ | 326,390 | ||||
| 2014 | 2013 | |||||||
| Supplemental disclosure of cash flow information: | ||||||||
| Cash paid during the period for interest | $ | 223,385 | $ | 274,796 | ||||
| Cash paid during the period for income taxes | 1,725,903 | 2,149,184 | ||||||
| Supplemental disclosure of non-cash information: | ||||||||
| Equipment acquisitions classified as accounts payable | $ | 60,737 | $ | 60,332 | ||||
| Issuance of common stock in connection with the vesting and exercise of equity-based awards. | 1,240,842 | 1,154,869 | ||||||
Contacts:
Christopher H. Atayan, 402-331-3727
