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| 8-K - AMCON DISTRIBUTING COMPANY 8-K - AMCON DISTRIBUTING CO | a50673131.htm |
Exhibit 99.1
AMCON Distributing Company Reports Fully Diluted Earnings Per Share of $2.19 for the Fiscal Quarter Ended June 30, 2013
OMAHA, Neb.--(BUSINESS WIRE)--July 18, 2013--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 | ||||||||||
| June | September | |||||||||
| 2013 | 2012 | |||||||||
| (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 2012 | 35,454,486 | 32,681,835 | ||||||||
| Inventories, net | 48,138,310 | 38,364,621 | ||||||||
| Deferred income taxes | 1,730,126 | 1,916,619 | ||||||||
| Prepaid and other current assets | 8,098,720 | 6,476,702 | ||||||||
| Total current assets | 93,599,094 | 79,931,164 | ||||||||
| Property and equipment, net | 13,311,648 | 13,083,912 | ||||||||
| Goodwill | 6,349,827 | 6,349,827 | ||||||||
| Other intangible assets, net | 4,912,228 | 5,185,978 | ||||||||
| 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 expenses | 6,663,762 | 6,931,859 | ||||||||
| Accrued wages, salaries and bonuses | 2,830,924 | 2,503,361 | ||||||||
| Income taxes payable | 1,098,354 | 2,194,966 | ||||||||
| Current maturities of long-term debt | 1,214,256 | 1,182,829 | ||||||||
| Total current liabilities | 27,935,903 | 30,002,223 | ||||||||
| Credit facility | 28,051,389 | 14,353,732 | ||||||||
| Deferred income taxes | 3,896,085 | 3,633,390 | ||||||||
| Long-term debt, less current maturities | 4,160,330 | 5,075,680 | ||||||||
| Other long-term liabilities | 330,152 | 336,186 | ||||||||
|
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 |
2,500,000 | 2,500,000 | ||||||||
|
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 |
400,000 | 1,450,000 | ||||||||
|
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 |
6,543 | 6,293 | ||||||||
| Additional paid-in capital | 12,485,773 | 11,021,109 | ||||||||
| Retained earnings | 42,149,939 | 38,349,253 | ||||||||
| 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 June | ended June | |||||||||||||||||||
| 2013 | 2012 | 2013 | 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 |
16,065,285 | 15,845,201 | 47,351,952 | 47,096,958 | ||||||||||||||||
| 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 expense | 309,445 | 361,756 | 874,489 | 1,105,707 | ||||||||||||||||
| 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 expense | 2,887,487 | 3,189,001 | 7,545,133 | 8,065,086 | ||||||||||||||||
| Income tax expense | 1,255,000 | 1,343,000 | 3,236,000 | 3,316,000 | ||||||||||||||||
| Net income | 1,632,487 | 1,846,001 | 4,309,133 | 4,749,086 | ||||||||||||||||
| 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 outstanding | 623,115 | 608,271 | 622,833 | 615,913 | ||||||||||||||||
| Diluted weighted average shares outstanding | 744,732 | 779,106 | 751,946 | 783,987 | ||||||||||||||||
| 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: | ||||||||||
| Depreciation | 1,517,958 | 1,496,868 | ||||||||
| Amortization | 273,750 | 283,441 | ||||||||
| Gain on sale of property and equipment | (72,318 | ) | (28,606 | ) | ||||||
| Equity-based compensation | 971,954 | 930,593 | ||||||||
| Deferred income taxes | 449,188 | 1,022,701 | ||||||||
| Provision for losses on doubtful accounts | 80,000 | 75,757 | ||||||||
| Provision for losses on inventory obsolescence | 54,028 | 98,789 | ||||||||
| 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 assets | 55,753 | (51,138 | ) | |||||||
| Accounts payable | (1,070,612 | ) | (2,396,748 | ) | ||||||
| Accrued expenses and accrued wages, salaries and bonuses | 525,856 | (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 | ) | ||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||
| Net borrowings on bank credit agreements | 13,697,657 | 9,308,869 | ||||||||
| Principal payments on long-term debt | (883,923 | ) | (1,018,587 | ) | ||||||
| Repurchase of Series B Convertible Preferred Stock and common stock | (2,572,085 | ) | (918,000 | ) | ||||||
| Dividends paid on convertible preferred stock | (156,041 | ) | (201,454 | ) | ||||||
| Dividends on common stock | (352,406 | ) | (354,723 | ) | ||||||
| Proceeds from exercise of stock options | 1,180 | 1,180 | ||||||||
| Withholdings on the exercise of equity-based awards | (74,610 | ) | (51,452 | ) | ||||||
| Net cash flows from financing activities | 9,659,772 | 6,765,833 | ||||||||
| Net change in cash | (313,935 | ) | (820,705 | ) | ||||||
|
Cash, beginning of period |
491,387 | 1,389,665 | ||||||||
| Cash, end of period | $ | 177,452 | $ | 568,960 | ||||||
| 2013 | 2012 | |||||||||
| Supplemental disclosure of cash flow information: | ||||||||||
| Cash paid during the period for interest | $ | 851,665 | $ | 1,094,086 | ||||||
| Cash paid during the period for income taxes | 3,883,424 | 4,089,482 | ||||||||
| Supplemental disclosure of non-cash information: | ||||||||||
| Equipment acquisitions classified as accounts payable | 21,248 | 28,282 | ||||||||
|
Issuance of common stock in connection with the vesting and exercise of equity-based awards |
1,389,258 | 950,562 | ||||||||
| Conversion by holder of Series B Convertible Preferred Stock to common stock | 100,000 | — | ||||||||
| Common stock acquired with other consideration | 760,871 | — | ||||||||
CONTACT:
AMCON Distributing Company
Christopher H. Atayan,
402-331-3727