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| 8-K - AMCON DISTRIBUTING COMPANY 8-K - AMCON DISTRIBUTING CO | a51745407.htm |
Exhibit 99.1
AMCON Distributing Company Reports Fully Diluted Earnings Per Share of $2.13 for the Quarter Ended December 31, 2017
OMAHA, Neb.--(BUSINESS WIRE)--January 18, 2018--AMCON Distributing Company (“AMCON”) (NYSE MKT:DIT), an Omaha, Nebraska based consumer products company is pleased to announce fully diluted earnings per share of $2.13 on net income available to common shareholders of $1.5 million for the fiscal quarter ended December 31, 2017.
“We are pleased with our start to fiscal 2018. Our business philosophy is centered on customer service and reliability which enables us to compete in a challenging environment. We expect to continue to operate the enterprise with a view toward sustained capital expenditures. This investment is necessary to maintain and enhance our strong competitive position in light of current operating conditions,” 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 in the convenience distribution and foodservice industries that can benefit from our extensive platform of services.”
For the first fiscal quarter, the Wholesale Distribution Segment reported revenues of $309.2 million and operating income of $3.2 million. Our Retail Health Food Segment reported revenues of $6.3 million and an operating loss of $0.5 million.
“Foodservice category sales are growing industry wide. We are among the leaders in program development and strive to continue to enhance our capabilities in this category,” said Kathleen M. Evans, President of AMCON’s Wholesale Distribution Segment.
“We opened our second store in the Lakeland, Florida market early in fiscal 2018 which has been well received,” said Clifford Ginn, President of AMCON’s Retail Health Food Segment. “We will continue to invest in brand reimaging, social media, new stores, store remodeling, and marketing as we seek to address the competitive challenges we face in the industry. Our Midwestern markets operate in a highly challenging environment.”
“We closed the December 31, 2017 quarter with shareholders’ equity of $70.5 million and consolidated debt of $15.6 million,” said Andrew C. Plummer, AMCON’s Chief Financial Officer. Plummer added, “During the first fiscal quarter, the Company benefitted approximately $0.9 million from the implementation of the Tax Cuts and Jobs Act which was signed into law on December 22, 2017. This tax cut will facilitate our continued development in technology products for our internal and external customers in a rapidly changing environment. In addition, we have a commitment to investing in our facilities and transportation equipment to serve our long term strategic initiatives in foodservice. We continue to actively manage our working capital and liquidity which affords us the ability to invest in our businesses for the long-term which benefits our customers.”
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, 2017 and September 30, 2017 | ||||||||||
| December | September | |||||||||
| 2017 | 2017 | |||||||||
| (Unaudited) | ||||||||||
| ASSETS | ||||||||||
| Current assets: | ||||||||||
| Cash | $ | 570,560 | $ | 523,065 | ||||||
| Accounts receivable, less allowance for doubtful accounts of $0.8 million at both December 2017 and September 2017 | 30,511,104 | 30,690,403 | ||||||||
| Inventories, net | 49,699,948 | 72,909,996 | ||||||||
| Prepaid and other current assets | 7,982,638 | 4,218,811 | ||||||||
| Total current assets | 88,764,250 | 108,342,275 | ||||||||
| Property and equipment, net | 13,014,903 | 13,307,986 | ||||||||
| Goodwill | 6,349,827 | 6,349,827 | ||||||||
| Other intangible assets, net | 3,461,811 | 3,494,311 | ||||||||
| Other assets | 323,643 | 310,488 | ||||||||
| Total assets | $ | 111,914,434 | $ | 131,804,887 | ||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable | $ | 15,022,223 | $ | 17,631,552 | ||||||
| Accrued expenses | 6,735,349 | 7,553,089 | ||||||||
| Accrued wages, salaries and bonuses | 1,555,176 | 3,477,966 | ||||||||
| Income taxes payable | 657,095 | 544,069 | ||||||||
| Current maturities of long-term debt | 376,478 | 373,645 | ||||||||
| Total current liabilities | 24,346,321 | 29,580,321 | ||||||||
| Credit facility | 12,638,221 | 29,037,182 | ||||||||
| Deferred income tax liability, net | 1,854,151 | 2,336,263 | ||||||||
| Long-term debt, less current maturities | 2,552,935 | 2,648,179 | ||||||||
| Other long-term liabilities | 35,089 | 34,100 | ||||||||
| Shareholders’ equity: | ||||||||||
| Preferred stock, $.01 par value, 1,000,000 shares authorized | — | — | ||||||||
| Common stock, $.01 par value, 3,000,000 shares authorized, 690,486 shares outstanding at December 2017 and 678,006 shares outstanding at September 2017 | 8,441 | 8,314 | ||||||||
| Additional paid-in capital | 22,009,620 | 20,825,919 | ||||||||
| Retained earnings | 62,086,133 | 60,935,911 | ||||||||
| Treasury stock at cost | (13,616,477 | ) | (13,601,302 | ) | ||||||
| Total shareholders’ equity | 70,487,717 | 68,168,842 | ||||||||
| Total liabilities and shareholders' equity | $ | 111,914,434 | $ | 131,804,887 | ||||||
| AMCON Distributing Company and Subsidiaries | ||||||||||
| Condensed Consolidated Unaudited Statements of Operations | ||||||||||
| for the three months ended December 31, 2017 and 2016 | ||||||||||
| For the three months ended December | ||||||||||
| 2017 | 2016 | |||||||||
| Sales (including excise taxes of $88.6 million and $91.0 million, respectively) | $ | 315,513,209 | $ | 310,104,229 | ||||||
| Cost of sales | 297,321,447 | 291,788,243 | ||||||||
| Gross profit | 18,191,762 | 18,315,986 | ||||||||
| Selling, general and administrative expenses | 16,353,608 | 15,698,319 | ||||||||
| Depreciation and amortization | 531,005 | 526,433 | ||||||||
| 16,884,613 | 16,224,752 | |||||||||
| Operating income | 1,307,149 | 2,091,234 | ||||||||
| Other expense (income): | ||||||||||
| Interest expense | 202,191 | 217,543 | ||||||||
| Other (income), net | (5,133 | ) | (5,773 | ) | ||||||
| 197,058 | 211,770 | |||||||||
| Income from operations before income tax expense | 1,110,091 | 1,879,464 | ||||||||
| Income tax expense (benefit) | (370,000 | ) | 833,000 | |||||||
| Net income available to common shareholders | $ | 1,480,091 | $ | 1,046,464 | ||||||
| Basic earnings per share available to common shareholders | $ | 2.15 | $ | 1.54 | ||||||
| Diluted earnings per share available to common shareholders | $ | 2.13 | $ | 1.52 | ||||||
| Basic weighted average shares outstanding | 687,679 | 681,668 | ||||||||
| Diluted weighted average shares outstanding | 695,950 | 688,676 | ||||||||
| Dividends declared and paid per common share | $ | 0.18 | $ | 0.18 | ||||||
| AMCON Distributing Company and Subsidiaries | ||||||||||
| Condensed Consolidated Unaudited Statements of Cash Flows | ||||||||||
| for the three months ended December 31, 2017 and 2016 | ||||||||||
| December | December | |||||||||
| 2017 | 2016 | |||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||
| Net income | $ | 1,480,091 | $ | 1,046,464 | ||||||
|
Adjustments to reconcile net income from operations to net cash flows from operating activities: |
||||||||||
| Depreciation | 498,505 | 460,183 | ||||||||
| Amortization | 32,500 | 66,250 | ||||||||
| Gain on sale of property and equipment | (300 | ) | (23,559 | ) | ||||||
| Equity-based compensation | 334,256 | 459,278 | ||||||||
| Deferred income taxes | (482,112 | ) | 406,972 | |||||||
| Provision (recovery) for losses on doubtful accounts | (3,000 | ) | 183 | |||||||
| Provision for losses on inventory obsolescence | 30,660 | 58,776 | ||||||||
| Other | 989 | 319 | ||||||||
| Changes in assets and liabilities: | ||||||||||
| Accounts receivable | 182,299 | 3,605,673 | ||||||||
| Inventories | 23,179,388 | (1,385,731 | ) | |||||||
| Prepaid and other current assets | (3,763,827 | ) | 1,969,853 | |||||||
| Other assets | (13,155 | ) | 24,074 | |||||||
| Accounts payable | (2,523,433 | ) | (2,179,939 | ) | ||||||
| Accrued expenses and accrued wages, salaries and bonuses | (2,011,951 | ) | (2,370,918 | ) | ||||||
| Income taxes payable | 113,026 | 28,134 | ||||||||
| Net cash flows from operating activities | 17,053,936 | 2,166,012 | ||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||
| Purchase of property and equipment | (291,318 | ) | (400,778 | ) | ||||||
| Proceeds from sales of property and equipment | 300 | 31,478 | ||||||||
| Net cash flows from investing activities | (291,018 | ) | (369,300 | ) | ||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||
| Borrowings under revolving credit facility | 305,522,554 | 319,265,456 | ||||||||
| Repayments under revolving credit facility | (321,921,515 | ) | (319,998,237 | ) | ||||||
| Principal payments on long-term debt | (92,411 | ) | (89,662 | ) | ||||||
| Repurchase of common stock | (15,175 | ) | (1,038,060 | ) | ||||||
| Dividends on common stock | (129,026 | ) | (127,713 | ) | ||||||
| Withholdings on the exercise of equity-based awards | (79,850 | ) | (82,456 | ) | ||||||
| Net cash flows from financing activities | (16,715,423 | ) | (2,070,672 | ) | ||||||
| Net change in cash | 47,495 | (273,960 | ) | |||||||
| Cash, beginning of period | 523,065 | 605,380 | ||||||||
| Cash, end of period | $ | 570,560 | $ | 331,420 | ||||||
| Supplemental disclosure of cash flow information: | ||||||||||
| Cash paid during the period for interest | $ | 199,423 | $ | 223,802 | ||||||
| Cash paid during the period for income taxes | — | 397,894 | ||||||||
| Supplemental disclosure of non-cash information: | ||||||||||
| Equipment acquisitions classified in accounts payable | 15,465 | 2,128 | ||||||||
| Dividends declared, not paid | 200,843 | 194,173 | ||||||||
|
Issuance of common stock in connection with the vesting and exercise of equity-based awards |
1,183,091 | 1,262,763 | ||||||||
CONTACT:
AMCON Distributing Company
Christopher H. Atayan,
402-331-3727