AMCON Distributing Company (“AMCON”) (NYSE MKT:DIT), an Omaha, Nebraska based consumer products company is pleased to announce fully diluted earnings per share of $1.61 on net income available to common shareholders of $1.1 million for the fiscal quarter ended March 31, 2016.
“We continue to invest in our wholesale business to enhance our leadership position in the Convenience Distribution Industry. We are expanding our foodservice and technology capabilities as the needs of our customers grow in complexity. This approach has served to differentiate us from our competition,” said Christopher H. Atayan, AMCON’s Chairman and Chief Executive Officer. He further noted “We are actively seeking acquisitions that can benefit from our extensive platform of customer service.”
Each of AMCON’s business segments reported solid quarters. The wholesale distribution segment reported revenues of $288.9 million and operating income before depreciation and amortization of $3.5 million for the second fiscal quarter of 2016. The retail health food segment reported revenues of $7.5 million and operating income before depreciation and amortization of $0.6 million for the same period.
“Our annual spring trade show in Kansas City was well received by our customers and vendors. This event provides momentum as we enter our customers’ peak selling season,” said Kathleen M. Evans, President of AMCON’s Wholesale Distribution segment.
“Our management team is focusing on a variety of initiatives designed to enhance the operating economics of our retail stores. We operate in a competitive environment that continues to be highly challenging,” said Eric Hinkefent, President of AMCON’s Retail Health Food Segment.
“We actively manage our working capital and liquidity which provides us the ability to respond quickly to the dynamic environments in which both of our business segments operate. This conservative approach provides us significant flexibility to act in the long term best interest of the many constituencies we serve,” said Andrew C. Plummer, AMCON’s Chief Financial Officer. “We were pleased to close the March 31, 2016 quarter with shareholders’ equity of $62.0 million and consolidated debt of $21.2 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 | ||||||||||
| Condensed Consolidated Balance Sheets | ||||||||||
| March 31, 2016 and September 30, 2015 | ||||||||||
| March | September | |||||||||
| 2016 | 2015 | |||||||||
| (Unaudited) | ||||||||||
| ASSETS | ||||||||||
| Current assets: | ||||||||||
| Cash | $ | 321,990 | $ | 219,536 | ||||||
| Accounts receivable, less allowance for doubtful accounts of $0.8 million at March 2016 and $0.9 million at September 2015 | 29,255,947 | 31,866,787 | ||||||||
| Inventories, net | 56,594,107 | 60,793,478 | ||||||||
| Deferred income taxes | 1,278,006 | 1,553,726 | ||||||||
| Income taxes receivable | — | 113,238 | ||||||||
| Prepaid and other current assets | 4,080,280 | 2,125,908 | ||||||||
| Total current assets | 91,530,330 | 96,672,673 | ||||||||
| Property and equipment, net | 12,465,906 | 12,753,145 | ||||||||
| Goodwill | 6,349,827 | 6,349,827 | ||||||||
| Other intangible assets, net | 3,908,478 | 4,090,978 | ||||||||
| Other assets | 296,717 | 317,184 | ||||||||
| $ | 114,551,258 | $ | 120,183,807 | |||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable | $ | 16,033,216 | $ | 17,044,726 | ||||||
| Accrued expenses | 5,860,058 | 7,224,963 | ||||||||
| Accrued wages, salaries and bonuses | 2,558,420 | 3,282,354 | ||||||||
| Income taxes payable | 230,066 | — | ||||||||
| Current maturities of long-term debt | 357,000 | 351,383 | ||||||||
| Total current liabilities | 25,038,760 | 27,903,426 | ||||||||
| Credit facility | 17,609,387 | 20,902,207 | ||||||||
| Deferred income taxes | 3,772,620 | 3,696,098 | ||||||||
| Long-term debt, less current maturities | 3,204,052 | 3,384,319 | ||||||||
| Other long-term liabilities | 30,838 | 34,860 | ||||||||
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 March 2016 and September 2015 | 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 March 2016 and September 2015, and a total liquidation preference of $0.4 million at both March 2016 and September 2015 | 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, 604,022 shares outstanding at March 2016 and 621,104 shares outstanding at September 2015 | 7,197 | 7,061 | ||||||||
| Additional paid-in capital | 16,697,234 | 15,509,199 | ||||||||
| Retained earnings | 55,519,822 | 53,527,606 | ||||||||
| Treasury stock at cost | (10,228,652 | ) | (7,680,969 | ) | ||||||
| Total shareholders’ equity | 61,995,601 | 61,362,897 | ||||||||
| $ | 114,551,258 | $ | 120,183,807 | |||||||
| AMCON Distributing Company and Subsidiaries | ||||||||||||||||||||
| Condensed Consolidated Unaudited Statements of Operations | ||||||||||||||||||||
| for the three and six months ended March 31, 2016 and 2015 | ||||||||||||||||||||
For the three months ended March | For the six months ended March | |||||||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||||||
| Sales (including excise taxes of $88.7 million and $87.4 million, and $186.0 million and $184.4 million, respectively) | $ | 296,449,126 | $ | 287,443,864 | $ | 618,457,375 | $ | 602,877,340 | ||||||||||||
| Cost of sales | 278,908,888 | 269,710,529 | 581,955,233 | 565,617,473 | ||||||||||||||||
| Gross profit | 17,540,238 | 17,733,335 | 36,502,142 | 37,259,867 | ||||||||||||||||
| Selling, general and administrative expenses | 14,770,358 | 15,485,757 | 30,615,492 | 31,666,879 | ||||||||||||||||
| Depreciation and amortization | 575,681 | 590,857 | 1,142,630 | 1,167,162 | ||||||||||||||||
| 15,346,039 | 16,076,614 | 31,758,122 | 32,834,041 | |||||||||||||||||
| Operating income | 2,194,199 | 1,656,721 | 4,744,020 | 4,425,826 | ||||||||||||||||
| Other expense (income): | ||||||||||||||||||||
| Interest expense | 161,402 | 194,375 | 373,856 | 431,517 | ||||||||||||||||
| Other (income), net | (35,827 | ) | (35,987 | ) | (63,082 | ) | (43,054 | ) | ||||||||||||
| 125,575 | 158,388 | 310,774 | 388,463 | |||||||||||||||||
| Income from operations before income tax expense | 2,068,624 | 1,498,333 | 4,433,246 | 4,037,363 | ||||||||||||||||
| Income tax expense | 922,000 | 729,000 | 1,931,000 | 1,722,000 | ||||||||||||||||
| Net income | 1,146,624 | 769,333 | 2,502,246 | 2,315,363 | ||||||||||||||||
| Preferred stock dividend requirements | (48,643 | ) | (48,108 | ) | (97,820 | ) | (97,285 | ) | ||||||||||||
| Net income available to common shareholders | $ | 1,097,981 | $ | 721,225 | $ | 2,404,426 | $ | 2,218,078 | ||||||||||||
| Basic earnings per share available to common shareholders | $ | 1.81 | $ | 1.17 | $ | 3.90 | $ | 3.61 | ||||||||||||
| Diluted earnings per share available to common shareholders | $ | 1.61 | $ | 1.04 | $ | 3.46 | $ | 3.15 | ||||||||||||
| Basic weighted average shares outstanding | 606,080 | 615,822 | 615,768 | 614,173 | ||||||||||||||||
| Diluted weighted average shares outstanding | 712,547 | 737,180 | 723,317 | 735,599 | ||||||||||||||||
| Dividends declared and paid per common share | $ | 0.18 | $ | 0.18 | $ | 0.64 | $ | 0.36 | ||||||||||||
| AMCON Distributing Company and Subsidiaries | ||||||||||
| Condensed Consolidated Unaudited Statements of Cash Flows | ||||||||||
| for the six months ended March 31, 2016 and 2015 | ||||||||||
| 2016 | 2015 | |||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||
| Net income | $ | 2,502,246 | $ | 2,315,363 | ||||||
| Adjustments to reconcile net income from operations to net cash flows from operating activities: | ||||||||||
| Depreciation | 960,130 | 984,662 | ||||||||
| Amortization | 182,500 | 182,500 | ||||||||
| (Gain) loss on sale of property and equipment | (34,482 | ) | 7,036 | |||||||
| Equity-based compensation | 660,203 | 607,661 | ||||||||
| Deferred income taxes | 352,242 | 238,555 | ||||||||
| Provision (recovery) for losses on doubtful accounts | (67,000 | ) | 159,999 | |||||||
| Provision (recovery) for losses on inventory obsolescence | 70,818 | (34,189 | ) | |||||||
| Other | (4,022 | ) | (4,023 | ) | ||||||
| Changes in assets and liabilities: | ||||||||||
| Accounts receivable | 2,677,840 | 2,279,407 | ||||||||
| Inventories | 4,128,553 | (21,852,218 | ) | |||||||
| Prepaid and other current assets | (1,954,372 | ) | 1,708,944 | |||||||
| Other assets | 20,467 | 111,792 | ||||||||
| Accounts payable | (1,005,681 | ) | 200,996 | |||||||
| Accrued expenses and accrued wages, salaries and bonuses | (1,479,465 | ) | (862,235 | ) | ||||||
| Income taxes payable | 343,304 | (1,577,138 | ) | |||||||
| Net cash flows from operating activities | 7,353,281 | (15,532,888 | ) | |||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||
| Purchase of property and equipment | (692,402 | ) | (611,106 | ) | ||||||
| Proceeds from sales of property and equipment | 48,164 | 7,800 | ||||||||
| Net cash flows from investing activities | (644,238 | ) | (603,306 | ) | ||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||
| Net (payments) borrowings on bank credit agreements | (3,292,820 | ) | 16,881,883 | |||||||
| Principal payments on long-term debt | (174,650 | ) | (169,782 | ) | ||||||
| Repurchase of common stock | (2,547,683 | ) | — | |||||||
| Dividends paid on convertible preferred stock | (97,820 | ) | (97,285 | ) | ||||||
| Dividends on common stock | (412,210 | ) | (232,488 | ) | ||||||
| Withholdings on the exercise of equity-based awards | (81,406 | ) | (156,497 | ) | ||||||
| Net cash flows from financing activities | (6,606,589 | ) | 16,225,831 | |||||||
| Net change in cash | 102,454 | 89,637 | ||||||||
| Cash, beginning of period | 219,536 | 99,922 | ||||||||
| Cash, end of period | $ | 321,990 | $ | 189,559 | ||||||
| Supplemental disclosure of cash flow information: | ||||||||||
| Cash paid during the period for interest | $ | 391,130 | $ | 403,758 | ||||||
| Cash paid during the period for income taxes | 1,235,454 | 3,060,584 | ||||||||
| Supplemental disclosure of non-cash information: | ||||||||||
| Equipment acquisitions classified as accounts payable | 17,500 | 48,754 | ||||||||
| Issuance of common stock in connection with the vesting and exercise of equity-based awards | 1,174,981 | 1,240,842 | ||||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20160418006512/en/
Contacts:
Christopher H. Atayan,
402-331-3727
