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| 8-K - AMCON DISTRIBUTING COMPANY 8-K - AMCON DISTRIBUTING CO | a50613188.htm |
Exhibit 99.1
AMCON Distributing Company Reports Fully Diluted Earnings Per Share of $1.63 for the Fiscal Quarter Ended March 31, 2013
OMAHA, Neb.--(BUSINESS WIRE)--April 18, 2013--AMCON Distributing Company (“AMCON”) (NYSE AMEX:DIT), an Omaha, Nebraska based consumer products company is pleased to announce fully diluted earnings per share of $1.63 on net income available to common stockholders of $1.2 million for the fiscal quarter ended March 31, 2013.
“We delivered solid results in an operating environment that is characterized by significant competitive pressures in both of our business segments. Our strategic emphasis on customer service continues to be a differentiating factor for our organization in the market place,” said Christopher H. Atayan AMCON’s Chairman and Chief Executive Officer. “Our disciplined financial approach to internal and external growth is designed to prudently manage risk while enhancing shareholder value.”
Each of AMCON’s business segments reported good quarters. The wholesale distribution segment reported revenues of $264.7 million and operating income before depreciation and amortization of $3.0 million for the second fiscal quarter of 2013. 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 term approach to developing our foodservice platform. Our foodservice offerings continue to grow as we work collaboratively with our customers to implement these profit making opportunities,” said Kathleen Evans, President of AMCON’s wholesale distribution segment.
“A number of well capitalized competitors have entered the retail health food markets we serve,” said Eric Hinkefent, President of AMCON’s retail health food segment. “Our growth strategy is to selectively open new stores in locations where the demographics value our high customer service philosophy. Our new store in Omaha, Nebraska will open in our third fiscal quarter of 2013 and we continue to work diligently toward opening our new store in Rogers, Arkansas.”
“At March 31, 2013 our stockholders equity was $49.9 million and consolidated debt was $23.4 million. We remain committed to investing in information technology in our wholesale distribution segment as we believe it supports our customers’ efficiency initiatives and helps optimizes their product mix to improve their bottom line,” 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 Illinois, Missouri, Nebraska, North Dakota, South Dakota and Tennessee. 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
| AMCON Distributing Company and Subsidiaries | ||||||||||
| Condensed Consolidated Balance Sheets | ||||||||||
| March 31, 2013 and September 30, 2012 | ||||||||||
| March | September | |||||||||
| 2013 | 2012 | |||||||||
| (Unaudited) | ||||||||||
| ASSETS | ||||||||||
| Current assets: | ||||||||||
| Cash | $ | 432,857 | $ | 491,387 | ||||||
| Accounts receivable, less allowance for doubtful accounts of $1.2 million at both March 2013 and September 2012 | 30,956,166 | 32,681,835 | ||||||||
| Inventories, net | 39,096,409 | 38,364,621 | ||||||||
| Deferred income taxes | 1,654,571 | 1,916,619 | ||||||||
| Prepaid and other current assets | 6,323,715 | 6,476,702 | ||||||||
| Total current assets | 78,463,718 | 79,931,164 | ||||||||
| Property and equipment, net | 13,154,761 | 13,083,912 | ||||||||
| Goodwill | 6,349,827 | 6,349,827 | ||||||||
| Other intangible assets, net | 5,003,478 | 5,185,978 | ||||||||
| Other assets | 461,390 | 1,258,985 | ||||||||
| $ | 103,433,174 | $ | 105,809,866 | |||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable | $ | 15,433,201 | $ | 17,189,208 | ||||||
| Accrued expenses | 5,654,247 | 6,931,859 | ||||||||
| Accrued wages, salaries and bonuses | 1,887,926 | 2,503,361 | ||||||||
| Income taxes payable | 134,886 | 2,194,966 | ||||||||
| Current maturities of long-term debt | 1,202,804 | 1,182,829 | ||||||||
| Total current liabilities | 24,313,064 | 30,002,223 | ||||||||
| Credit facility | 17,732,149 | 14,353,732 | ||||||||
| Deferred income taxes | 3,828,867 | 3,633,390 | ||||||||
| Long-term debt, less current maturities | 4,468,350 | 5,075,680 | ||||||||
| Other long-term liabilities | 332,163 | 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 March 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 March 31, 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 March 2013 and September 2012, respectively |
400,000 | 1,450,000 | ||||||||
|
Shareholders’ equity: |
||||||||||
|
Preferred stock, $0.01 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 March 2013 and 612,327 shares outstanding at September 2012 |
6,543 | 6,293 | ||||||||
| Additional paid-in capital | 12,469,411 | 11,021,109 | ||||||||
| Retained earnings | 40,683,583 | 38,349,253 | ||||||||
| Treasury stock at cost | (3,300,956 | ) | (918,000 | ) | ||||||
| Total shareholders’ equity | 49,858,581 | 48,458,655 | ||||||||
| $ | 103,433,174 | $ | 105,809,866 | |||||||
| AMCON Distributing Company and Subsidiaries | ||||||||||||||||||||
| Condensed Consolidated Unaudited Statements of Operations | ||||||||||||||||||||
| for the three and six months ended March 31, 2013 and 2012 | ||||||||||||||||||||
| For the three months | For the six months | |||||||||||||||||||
| ended March | ended March | |||||||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||||||
| Sales (including excise taxes of $87.2 million and $86.1 million, and $185.2 million and $176.6 million, respectively) | $ | 274,568,151 | $ | 275,829,266 | $ | 576,786,472 | $ | 559,392,316 | ||||||||||||
| Cost of sales | 256,271,131 | 256,612,867 | 539,259,663 | 521,538,240 | ||||||||||||||||
| Gross profit | 18,297,020 | 19,216,399 | 37,526,809 | 37,854,076 | ||||||||||||||||
|
Selling, general and administrative expenses |
15,438,195 | 15,901,755 | 31,286,667 | 31,251,757 | ||||||||||||||||
| Depreciation and amortization | 599,785 | 613,927 | 1,193,647 | 1,227,421 | ||||||||||||||||
| 16,037,980 | 16,515,682 | 32,480,314 | 32,479,178 | |||||||||||||||||
| Operating income | 2,259,040 | 2,700,717 | 5,046,495 | 5,374,898 | ||||||||||||||||
| Other expense (income): | ||||||||||||||||||||
| Interest expense | 248,992 | 319,841 | 565,044 | 743,951 | ||||||||||||||||
| Other (income), net | (114,846 | ) | (93,874 | ) | (176,195 | ) | (245,138 | ) | ||||||||||||
| 134,146 | 225,967 | 388,849 | 498,813 | |||||||||||||||||
| Income from operations before income tax expense | 2,124,894 | 2,474,750 | 4,657,646 | 4,876,085 | ||||||||||||||||
| Income tax expense | 911,000 | 1,010,000 | 1,981,000 | 1,973,000 | ||||||||||||||||
| Net income | 1,213,894 | 1,464,750 | 2,676,646 | 2,903,085 | ||||||||||||||||
| Preferred stock dividend requirements | (48,108 | ) | (66,906 | ) | (107,399 | ) | (134,547 | ) | ||||||||||||
| Net income available to common shareholders | $ | 1,165,786 | $ | 1,397,844 | $ | 2,569,247 | $ | 2,768,538 | ||||||||||||
| Basic earnings per share available to common shareholders | $ | 1.87 | $ | 2.26 | $ | 4.13 | $ | 4.47 | ||||||||||||
| Diluted earnings per share available to common shareholders | $ | 1.63 | $ | 1.87 | $ | 3.55 | $ | 3.70 | ||||||||||||
| Basic weighted average shares outstanding | 623,115 | 619,480 | 622,692 | 619,705 | ||||||||||||||||
| Diluted weighted average shares outstanding | 743,195 | 784,429 | 754,881 | 785,281 | ||||||||||||||||
| AMCON Distributing Company and Subsidiaries | ||||||||||
| Condensed Consolidated Unaudited Statements of Cash Flows | ||||||||||
| for the six months ended March 31, 2013 and 2012 | ||||||||||
| 2013 | 2012 | |||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||
| Net income | $ | 2,676,646 | $ | 2,903,085 | ||||||
| Adjustments to reconcile net income from operations to net cash flows from operating activities: | ||||||||||
| Depreciation | 1,011,147 | 1,035,231 | ||||||||
| Amortization | 182,500 | 192,190 | ||||||||
| Gain on sale of property and equipment | (71,131 | ) | (22,216 | ) | ||||||
| Equity-based compensation | 652,421 | 674,180 | ||||||||
| Deferred income taxes | 457,525 | 453,989 | ||||||||
| Provision for losses on doubtful accounts | 39,000 | 164,757 | ||||||||
| Provision for losses on inventory obsolescence | 49,179 | 7,827 | ||||||||
| Other | (4,023 | ) | (4,023 | ) | ||||||
| Changes in assets and liabilities: | ||||||||||
| Accounts receivable | 1,686,669 | 813,322 | ||||||||
| Inventories | (780,967 | ) | 3,645,697 | |||||||
| Prepaid and other current assets | 152,987 | (1,308,654 | ) | |||||||
| Other assets | 36,724 | (48,424 | ) | |||||||
| Accounts payable | (1,802,183 | ) | (2,062,052 | ) | ||||||
| Accrued expenses and accrued wages, salaries and bonuses | (1,123,486 | ) | (1,509,628 | ) | ||||||
| Income tax payable | (2,060,080 | ) | (1,268,395 | ) | ||||||
| Net cash flows from operating activities | 1,102,928 | 3,666,886 | ||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||
| Purchases of property and equipment | (1,104,229 | ) | (707,724 | ) | ||||||
| Proceeds from sales of property and equipment | 139,540 | 40,820 | ||||||||
| Net cash flows from investing activities | (964,689 | ) | (666,904 | ) | ||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||
| Net borrowings (payments) on bank credit agreements | 3,378,417 | (1,464,646 | ) | |||||||
| Principal payments on long-term debt | (587,355 | ) | (732,440 | ) | ||||||
| Repurchase of Series B Convertible Preferred Stock and common stock | (2,572,085 | ) | (918,000 | ) | ||||||
| Dividends paid on convertible preferred stock | (107,399 | ) | (134,547 | ) | ||||||
| Dividends on common stock | (234,917 | ) | (238,628 | ) | ||||||
| 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 | (196,769 | ) | (3,538,533 | ) | ||||||
| Net change in cash | (58,530 | ) | (538,551 | ) | ||||||
|
Cash, beginning of period |
491,387 | 1,389,665 | ||||||||
| Cash, end of period | $ | 432,857 | $ | 851,114 | ||||||
| 2013 | 2012 | |||||||||
| Supplemental disclosure of cash flow information: | ||||||||||
| Cash paid during the period for interest | $ | 564,422 | $ | 770,110 | ||||||
| Cash paid during the period for income taxes | 3,583,555 | 2,787,407 | ||||||||
| Supplemental disclosure of non-cash information: | ||||||||||
| Equipment acquisitions classified as accounts payable | 57,412 | 5,185 | ||||||||
|
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