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| 8-K - AMCON DISTRIBUTING COMPANY 8-K - AMCON DISTRIBUTING CO | a6690483.htm |
Exhibit 99.1
AMCON Distributing Company Reports Fully Diluted Earnings Per Share of $2.05 for the Second Fiscal Quarter Ended March 31, 2011
OMAHA, Neb.--(BUSINESS WIRE)--April 19, 2011--AMCON Distributing Company (“AMCON”) (NYSE AMEX:DIT), an Omaha, Nebraska based consumer products company is pleased to announce fully diluted earnings per share of $2.05 on net income available to common stockholders of $1.5 million for the second fiscal quarter ended March 31, 2011. In addition, the Company has extended and expanded its revolving credit agreement with its bank group. The new facility is expandable to $80.0 million and has improved terms.
“Our management team did a good job this quarter, especially given the challenging environment our customers faced because of the higher level of energy prices. We are delighted to have an enhanced credit facility that we believe will give us additional flexibility to take advantage of potential acquisitions and merchant opportunities,” said Christopher H. Atayan, AMCON’s Chairman and Chief Executive Officer.
Each of AMCON’s business segments had solid quarters. The wholesale distribution segment reported revenues of $206.7 million and operating income before depreciation and amortization of $3.6 million in the second quarter of fiscal 2011. The retail health food segment reported revenues of $9.9 million and operating income before depreciation and amortization of $1.2 million for the same period.
“We are taking a long range view as we continue to make investments in foodservice, technology and related value added propositions designed to increase our customers’ bottom line. Our customers appreciate this partnership approach as they build their businesses,” said Kathleen Evans, President of AMCON’s Wholesale segment.
“We are carefully evaluating new store locations in both of the regions we operate in. Our recent store opening in Tulsa, Oklahoma has met our expectations. Our niche in the retail market is well defined and we believe there is room to prudently expand,” said Eric Hinkefent, President of AMCON’s Retail Health Food segment.
“Our stockholders’ equity grew to $36.9 million and consolidated debt decreased to $20.6 million. Our focused strategy of maintaining high liquidity levels has allowed us to successfully renew our credit agreement with significantly enhanced terms. We continue to carefully evaluate growth opportunities including a number of capital projects related to information technology and foodservice that are designed to enhance our competitive position in the markets we serve,” said Andrew Plummer, AMCON’s Chief Financial Officer.
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 Arkansas, Illinois, Missouri, Nebraska, North Dakota and South Dakota. 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 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
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AMCON Distributing Company and Subsidiaries |
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Condensed Consolidated Balance Sheets |
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March 31, 2011 and September 30, 2010 |
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| March | September | |||||
| 2011 | 2010 | |||||
| (Unaudited) | ||||||
| ASSETS | ||||||
| Current assets: | ||||||
| Cash | $ | 398,982 | $ | 356,735 | ||
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Accounts receivable, less allowance for doubtful accounts of $0.8
million and |
24,800,880 | 27,903,689 | ||||
| Inventories, net | 33,939,682 | 35,005,957 | ||||
| Deferred income taxes | 1,518,492 | 1,905,974 | ||||
| Prepaid and other current assets | 4,154,742 | 3,013,485 | ||||
| Total current assets | 64,812,778 | 68,185,840 | ||||
| Property and equipment, net | 11,919,797 | 11,855,669 | ||||
| Goodwill | 6,149,168 | 6,149,168 | ||||
| Other intangible assets, net | 4,706,394 | 4,807,644 | ||||
| Other assets | 1,177,614 | 1,069,050 | ||||
| $ | 88,765,751 | $ | 92,067,371 | |||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||
| Current liabilities: | ||||||
| Accounts payable | $ | 16,307,547 | $ | 16,656,257 | ||
| Accrued expenses | 6,569,164 | 6,007,900 | ||||
| Accrued wages, salaries and bonuses | 2,080,139 | 3,161,817 | ||||
| Income taxes payable | 531,884 | 2,366,667 | ||||
| Current maturities of long-term debt | 745,177 | 893,291 | ||||
| Total current liabilities | 26,233,911 | 29,085,932 | ||||
| Credit facility | 14,980,497 | 18,816,709 | ||||
| Deferred income taxes | 1,145,250 | 1,075,861 | ||||
| Long-term debt, less current maturities | 4,902,732 | 5,226,586 | ||||
| Other long-term liabilities | 71,061 | 587,479 | ||||
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Series A cumulative, convertible preferred stock, $.01 par value
100,000 |
2,500,000 | 2,500,000 | ||||
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Series B cumulative, convertible preferred stock, $.01 par value
80,000 |
2,000,000 | 2,000,000 | ||||
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Shareholders’ equity: |
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Preferred stock, $0.01 par value, 1,000,000 shares authorized,
180,000 shares |
— | — | ||||
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Common stock, $.01 par value, 3,000,000 shares authorized, 590,232
shares |
5,902 | 5,774 | ||||
| Additional paid-in capital | 9,482,317 | 8,376,640 | ||||
| Retained earnings | 27,444,081 | 24,392,390 | ||||
| Total shareholders’ equity | 36,932,300 | 32,774,804 | ||||
| $ | 88,765,751 | $ | 92,067,371 | |||
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AMCON Distributing Company and Subsidiaries |
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Condensed Consolidated Unaudited Statements of Operations |
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for the three and six months ended March 31, 2011 and 2010 |
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| For the three months | For the six months | |||||||||||||||
| ended March | ended March | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
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Sales (including excise taxes of $70.8 million and $76.9 |
$ | 216,603,039 | $ | 230,499,129 | $ | 461,560,200 | $ | 474,440,167 | ||||||||
| Cost of sales | 200,233,927 | 213,558,955 | 427,583,366 | 440,271,980 | ||||||||||||
| Gross profit | 16,369,112 | 16,940,174 | 33,976,834 | 34,168,187 | ||||||||||||
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Selling, general and administrative expenses |
12,909,642 | 13,365,802 | 26,597,013 | 27,144,541 | ||||||||||||
| Depreciation and amortization | 507,133 | 415,572 | 1,004,716 | 802,841 | ||||||||||||
| 13,416,775 | 13,781,374 | 27,601,729 | 27,947,382 | |||||||||||||
| Operating income | 2,952,337 | 3,158,800 | 6,375,105 | 6,220,805 | ||||||||||||
| Other expense (income): | ||||||||||||||||
| Interest expense | 263,872 | 368,425 | 648,455 | 773,670 | ||||||||||||
| Other (income), net | (45,211 | ) | (23,046 | ) | (68,092 | ) | (36,426 | ) | ||||||||
| 218,661 | 345,379 | 580,363 | 737,244 | |||||||||||||
| Income from operations before income tax | 2,733,676 | 2,813,421 | 5,794,742 | 5,483,561 | ||||||||||||
| Income tax expense | 1,149,000 | 1,022,000 | 2,378,000 | 1,963,000 | ||||||||||||
| Net income | 1,584,676 | 1,791,421 | 3,416,742 | 3,520,561 | ||||||||||||
| Preferred stock dividend requirements | (73,239 | ) | (73,239 | ) | (148,106 | ) | (148,106 | ) | ||||||||
| Net income available to common shareholders | $ | 1,511,437 | $ | 1,718,182 | $ | 3,268,636 | $ | 3,372,455 | ||||||||
| Basic earnings per share available to common shareholders: | $ | 2.56 | $ | 3.05 | $ | 5.60 | $ | 6.00 | ||||||||
| Diluted earnings per share available to common shareholders: | $ | 2.05 | $ | 2.40 | $ | 4.47 | $ | 4.72 | ||||||||
| Basic weighted average shares outstanding | 589,454 | 564,216 | 583,986 | 562,145 | ||||||||||||
| Diluted weighted average shares outstanding | 771,738 | 746,873 | 765,067 | 745,773 | ||||||||||||
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AMCON Distributing Company and Subsidiaries |
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Condensed Consolidated Unaudited Statements of Cash Flows |
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for the six months ended March 31, 2011 and 2010 |
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| 2011 | 2010 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net income | $ | 3,416,742 | $ | 3,520,561 | ||||
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Adjustments to reconcile net income from operations |
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| Depreciation | 845,120 | 678,860 | ||||||
| Amortization | 159,596 | 123,981 | ||||||
| Gain on sale of property and equipment | (8,722 | ) | (16,935 | ) | ||||
| Stock based compensation | 1,514,567 | 267,464 | ||||||
| Net excess tax benefit on equity-based awards | (125,904 | ) | (130,126 | ) | ||||
| Deferred income taxes | 456,871 | (34,196 | ) | |||||
| Provision for (recoveries) losses on doubtful accounts | (843,000 | ) | 178,367 | |||||
| Provision for losses on inventory obsolescence | 26,538 | 16,393 | ||||||
| Other | (4,022 | ) | — | |||||
| Changes in assets and liabilities: | ||||||||
| Accounts receivable | 3,945,809 | 491,271 | ||||||
| Inventories | 1,039,737 | 1,125,441 | ||||||
| Prepaid and other current assets | (1,141,257 | ) | (519,415 | ) | ||||
| Other assets | (108,564 | ) | (47,087 | ) | ||||
| Accounts payable | (319,457 | ) | 1,144,665 | |||||
| Accrued expenses and accrued wages, salaries and bonuses | (1,625,822 | ) | (1,878,536 | ) | ||||
| Income tax payable | (1,708,879 | ) | (2,977,213 | ) | ||||
| Net cash flows from operating activities | 5,519,353 | 1,943,495 | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Purchases of property and equipment | (957,254 | ) | (1,102,929 | ) | ||||
| Proceeds from sales of property and equipment | 27,475 | 42,905 | ||||||
| Acquisition | — | (3,099,836 | ) | |||||
| Net cash flows from investing activities | (929,779 | ) | (4,159,860 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Net (payments) borrowings on bank credit agreements | (3,836,212 | ) | 3,025,076 | |||||
| Principal payments on long-term debt | (471,968 | ) | (433,443 | ) | ||||
| Proceeds from exercise of stock options | — | 68,965 | ||||||
| Net excess tax benefit on equity-based awards | 125,904 | 130,126 | ||||||
| Dividends paid on convertible preferred stock | (148,106 | ) | (148,106 | ) | ||||
| Dividends on common stock | (216,945 | ) | (206,759 | ) | ||||
| Net cash flows from financing activities | (4,547,327 | ) | 2,435,859 | |||||
| Net change in cash | 42,247 | 219,494 | ||||||
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Cash, beginning of period |
356,735 | 309,914 | ||||||
| Cash, end of period | $ | 398,982 | $ | 529,408 | ||||
| 2011 | 2010 | |||||||
| Supplemental disclosure of cash flow information: | ||||||||
| Cash paid during the period for interest | $ | 668,389 | $ | 760,727 | ||||
| Cash paid during the period for income taxes | 3,630,007 | 4,974,408 | ||||||
| Supplemental disclosure of non-cash information: | ||||||||
| Equipment acquisitions classified as accounts payable | 8,953 | 85,939 | ||||||
| Business acquisition: | ||||||||
| Inventory | — | 1,981,498 | ||||||
| Property and equipment | — | 122,978 | ||||||
| Customer relationships intangible asset | — | 1,620,000 | ||||||
| Goodwill | — | 300,360 | ||||||
| Note payable | — | 500,000 | ||||||
| Contingent consideration | — | 425,000 | ||||||
CONTACT:
AMCON Distributing Company
Christopher H. Atayan,
402-331-3727