AMCON Distributing Company Reports Fully Diluted Earnings Per Share of $1.85 for the Quarter Ended December 31, 2015
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 $1.85 on net income available to common
shareholders of $1.3 million for the fiscal quarter ended December 31,
2015.
“We are pleased with our start to fiscal 2016. Our business strategy is
centered on customer service and reliability and enables us to compete
well in a challenging environment,” said Christopher H. Atayan, AMCON’s
Chairman and Chief Executive Officer. He further noted, “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 continue to develop our foodservice
capabilities. Sales are growing industry wide in this category and we
are among the leaders in program development,” 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 were pleased to close the December 31, 2015 quarter with
shareholders’ equity of $61.4 million and consolidated debt of $14.8
million,” said Andrew C. Plummer, AMCON’s Chief Financial Officer.
Plummer added, “Providing cutting edge technology products to our
internal and external customers in a rapidly changing environment
requires considerable ongoing investment. We are also driving more miles
to serve our customers and investing significant resources in our
refrigerated delivery equipment.”
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 | ||||||||||
| December 31, 2015 and September 30, 2015 | ||||||||||
| December | September | |||||||||
| 2015 | 2015 | |||||||||
| (Unaudited) | ||||||||||
| ASSETS | ||||||||||
| Current assets: | ||||||||||
| Cash | $ | 344,467 | $ | 219,536 | ||||||
|
Accounts receivable, less allowance for doubtful accounts of $0.9 million at both December 2015 and September 2015 |
31,410,516 | 31,866,787 | ||||||||
| Inventories, net | 43,704,180 | 60,793,478 | ||||||||
| Deferred income taxes | 1,200,581 | 1,553,726 | ||||||||
| Income taxes receivable | — | 113,238 | ||||||||
| Prepaid and other current assets | 6,809,787 | 2,125,908 | ||||||||
| Total current assets | 83,469,531 | 96,672,673 | ||||||||
| Property and equipment, net | 12,635,474 | 12,753,145 | ||||||||
| Goodwill | 6,349,827 | 6,349,827 | ||||||||
| Other intangible assets, net | 3,999,728 | 4,090,978 | ||||||||
| Other assets | 279,792 | 317,184 | ||||||||
| $ | 106,734,352 | $ | 120,183,807 | |||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable | $ | 15,775,388 | $ | 17,044,726 | ||||||
| Accrued expenses | 6,218,204 | 7,224,963 | ||||||||
| Accrued wages, salaries and bonuses | 1,520,198 | 3,282,354 | ||||||||
| Income taxes payable | 341,623 | — | ||||||||
| Current maturities of long-term debt | 354,047 | 351,383 | ||||||||
| Total current liabilities | 24,209,460 | 27,903,426 | ||||||||
| Credit facility | 11,149,637 | 20,902,207 | ||||||||
| Deferred income taxes | 3,762,477 | 3,696,098 | ||||||||
| Long-term debt, less current maturities | 3,294,657 | 3,384,319 | ||||||||
| Other long-term liabilities | 32,849 | 34,860 | ||||||||
|
Series A cumulative, Convertible Preferred Stock, $.01 par value
authorized and issued, and a total liquidation preference of $2.5 December 2015 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 December
September 2015, and a total liquidation preference of $0.4 million December 2015 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, 609,339 shares
outstanding at December 2015 and 621,104 shares outstanding at |
7,197 | 7,061 | ||||||||
| Additional paid-in capital | 16,677,791 | 15,509,199 | ||||||||
| Retained earnings | 54,535,923 | 53,527,606 | ||||||||
| Treasury stock at cost | (9,835,639 | ) | (7,680,969 | ) | ||||||
| Total shareholders’ equity | 61,385,272 | 61,362,897 | ||||||||
| $ | 106,734,352 | $ | 120,183,807 | |||||||
| AMCON Distributing Company and Subsidiaries | ||||||||||
| Condensed Consolidated Unaudited Statements of Operations | ||||||||||
| for the three months ended December 31, 2015 and 2014 | ||||||||||
| December 2015 | December 2014 | |||||||||
|
Sales (including excise taxes of $97.3 million and $96.9 million at December 2015 and December 2014, respectively) |
$ | 322,008,249 | $ | 315,433,476 | ||||||
| Cost of sales | 303,046,345 | 295,906,944 | ||||||||
| Gross profit | 18,961,904 | 19,526,532 | ||||||||
| Selling, general and administrative expenses | 15,845,134 | 16,181,122 | ||||||||
| Depreciation and amortization | 566,949 | 576,305 | ||||||||
| 16,412,083 | 16,757,427 | |||||||||
| Operating income | 2,549,821 | 2,769,105 | ||||||||
| Other expense (income): | ||||||||||
| Interest expense | 212,454 | 237,142 | ||||||||
| Other (income), net | (27,255 | ) | (7,067 | ) | ||||||
| 185,199 | 230,075 | |||||||||
| Income from operations before income tax expense | 2,364,622 | 2,539,030 | ||||||||
| Income tax expense | 1,009,000 | 993,000 | ||||||||
| Net income | 1,355,622 | 1,546,030 | ||||||||
| Preferred stock dividend requirements | (49,177 | ) | (49,177 | ) | ||||||
| Net income available to common shareholders | $ | 1,306,445 | $ | 1,496,853 | ||||||
| Basic earnings per share available to common shareholders | $ | 2.09 | $ | 2.44 | ||||||
| Diluted earnings per share available to common shareholders | 1.85 | 2.11 | ||||||||
| Basic weighted average shares outstanding | 625,356 | 612,560 | ||||||||
| Diluted weighted average shares outstanding | 733,484 | 734,256 | ||||||||
| AMCON Distributing Company and Subsidiaries | ||||||||||
| Condensed Consolidated Unaudited Statements of Cash Flows | ||||||||||
| for the three months ended December 31, 2015 and 2014 | ||||||||||
| December 2015 | December 2014 | |||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||
| Net income | $ | 1,355,622 | $ | 1,546,030 | ||||||
|
Adjustments to reconcile net income from operations to net cash |
||||||||||
| Depreciation | 475,699 | 485,055 | ||||||||
| Amortization | 91,250 | 91,250 | ||||||||
| (Gain) loss on sale of property and equipment | (11,441 | ) | 12,036 | |||||||
| Equity-based compensation | 349,522 | 289,551 | ||||||||
| Deferred income taxes | 419,524 | 379,261 | ||||||||
| Provision for losses on doubtful accounts | 8,000 | 186,750 | ||||||||
| Provision for losses on inventory obsolescence | 44,903 | 10,420 | ||||||||
| Other | (2,011 | ) | (2,012 | ) | ||||||
| Changes in assets and liabilities: | ||||||||||
| Accounts receivable | 448,271 | (308,132 | ) | |||||||
| Inventories | 17,044,395 | (3,870,295 | ) | |||||||
| Prepaid and other current assets | (4,683,879 | ) | (1,544,107 | ) | ||||||
| Other assets | 37,392 | 131,443 | ||||||||
| Accounts payable | (1,268,360 | ) | (174,140 | ) | ||||||
| Accrued expenses and accrued wages, salaries and bonuses | (2,046,917 | ) | (1,033,434 | ) | ||||||
| Income taxes payable | 454,861 | (1,112,164 | ) | |||||||
| Net cash flows from operating activities | 12,716,831 | (4,912,488 | ) | |||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||
| Purchase of property and equipment | (361,565 | ) | (340,796 | ) | ||||||
| Proceeds from sales of property and equipment | 14,000 | 2,800 | ||||||||
| Net cash flows from investing activities | (347,565 | ) | (337,996 | ) | ||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||
| Net (payments) borrowings on bank credit agreements | (9,752,570 | ) | 5,730,771 | |||||||
| Principal payments on long-term debt | (86,998 | ) | (84,411 | ) | ||||||
| Dividends paid on convertible preferred stock | (49,177 | ) | (49,177 | ) | ||||||
| Dividends on common stock | (119,514 | ) | (116,417 | ) | ||||||
| Repurchase of common stock | (2,154,670 | ) | — | |||||||
| Withholdings on the exercise of equity-based awards | (81,406 | ) | (156,497 | ) | ||||||
| Net cash flows from financing activities | (12,244,335 | ) | 5,324,269 | |||||||
| Net change in cash |
124,931 |
73,785 |
||||||||
|
Cash, beginning of period |
219,536 | 99,922 | ||||||||
| Cash, end of period | $ | 344,467 | $ | 173,707 | ||||||
| December 2015 | December 2014 | |||||||||
| Supplemental disclosure of cash flow information: | ||||||||||
| Cash paid during the period for interest | $ | 225,512 | $ | 223,385 | ||||||
| Cash paid during the period for income taxes | 134,615 | 1,725,903 | ||||||||
| Supplemental disclosure of non-cash information: | ||||||||||
| Equipment acquisitions classified as accounts payable | $ | 22,351 | $ | 60,737 | ||||||
| Dividends payable | 178,614 | — | ||||||||
|
Issuance of common stock in connection with the vesting and exercise of equity-based awards |
1,174,981 | 1,240,842 | ||||||||
Contacts
AMCON Distributing Company
Christopher H. Atayan,
402-331-3727
