AMCON Distributing Company (“AMCON”) (NYSE American:DIT), an Omaha, Nebraska based consumer products company is pleased to announce fully diluted earnings per share of $1.18 on net income available to common shareholders of $0.8 million for its third fiscal quarter ended June 30, 2018.
“AMCON continues to enhance its leadership position in the convenience distribution industry by initiating the necessary operational and technological investments to support our customers’ needs. We are actively seeking acquisitions in our Wholesale Segment which can benefit from our extensive platform of customer service. In addition, we are also looking carefully at a number of internal geographic growth opportunities as our customer base expands,” said Christopher H. Atayan, AMCON’s Chairman and Chief Executive Officer. Mr. Atayan further noted, “Our Healthy Edge retail health food subsidiary acquired eight Earth Origins Market stores on July 15, 2018. These stores are located in Florida and will enhance our footprint in that growing market.”
“We are making the logistics, foodservice, and related technology commitments necessary to support our customers’ geographic growth. A key component of our strategic plan is utilizing our internal technology team to develop proprietary and custom designed programs which support our customers and enhance their profitability and efficiency,” said Kathleen M. Evans, President of AMCON’s Wholesale Distribution Segment.
Clifford Ginn, President of AMCON’s Healthy Edge Retail Health Food Segment commented, “We are diligently working to integrate our newly acquired stores in Florida and welcome our new associates and customers to the Healthy Edge family of stores.”
“We actively manage our working capital and liquidity position which provides us with the ability to respond quickly to the dynamic environments in which both of our business segments operate. This conservative approach provides us significant flexibility to act in the long term interest of the many constituencies we serve. Both of our business segments are utilizing significant financial resources in the course of making the investments necessary for long term competitive success. Toward that end, we also recently closed two health food retail stores and redeployed that capital within our Retail Health Food Segment,” said Andrew C. Plummer, AMCON’s Chief Financial Officer. “We were pleased to close the June 30, 2018 quarter with shareholders’ equity of $63.7 million and consolidated debt of $23.2 million.”
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 twenty-two (22) health and natural product retail stores in the Midwest and Florida. The retail stores operate under the names Akin’s Natural Foods Market www.akins.com in its Midwest market, and Chamberlin's Market & Cafe www.chamberlins.com, and Earth Origins Market www.earthoriginsmarket.com in its Florida market.
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, 2018 and September 30, 2017 | ||||||||
| June | September | |||||||
| 2018 | 2017 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash | $ | 275,320 | $ | 523,065 | ||||
| Accounts receivable, less allowance for doubtful accounts of $0.8 million at both June 2018 and September 2017 | 33,943,794 | 30,690,403 | ||||||
| Inventories, net | 51,009,431 | 72,909,996 | ||||||
| Prepaid and other current assets | 10,062,688 | 4,218,811 | ||||||
| Total current assets | 95,291,233 | 108,342,275 | ||||||
| Property and equipment, net | 13,715,318 | 13,307,986 | ||||||
| Goodwill | 6,349,827 | 6,349,827 | ||||||
| Other intangible assets, net | 3,430,561 | 3,494,311 | ||||||
| Other assets | 315,416 | 310,488 | ||||||
| Total assets | $ | 119,102,355 | $ | 131,804,887 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 19,122,752 | $ | 17,631,552 | ||||
| Accrued expenses | 8,127,663 | 7,553,089 | ||||||
| Accrued wages, salaries and bonuses | 2,669,243 | 3,477,966 | ||||||
| Income taxes payable | 555,820 | 544,069 | ||||||
| Current maturities of long-term debt | 382,209 | 373,645 | ||||||
| Total current liabilities | 30,857,687 | 29,580,321 | ||||||
| Credit facility | 20,485,436 | 29,037,182 | ||||||
| Deferred income tax liability, net | 1,663,832 | 2,336,263 | ||||||
| Long-term debt, less current maturities | 2,360,276 | 2,648,179 | ||||||
| Other long-term liabilities | 37,067 | 34,100 | ||||||
| Shareholders’ equity: | ||||||||
| Preferred stock, $.01 par value, 1,000,000 shares authorized | — | — | ||||||
| Common stock, $.01 par value, 3,000,000 shares authorized, 615,988 shares outstanding at June 2018 and 678,006 shares outstanding at September 2017 | 8,441 | 8,314 | ||||||
| Additional paid-in capital | 22,042,155 | 20,825,919 | ||||||
| Retained earnings | 62,953,155 | 60,935,911 | ||||||
| Treasury stock at cost | (21,305,694 | ) | (13,601,302 | ) | ||||
| Total shareholders’ equity | 63,698,057 | 68,168,842 | ||||||
| Total liabilities and shareholders' equity | $ | 119,102,355 | $ | 131,804,887 | ||||
AMCON Distributing Company and Subsidiaries | ||||||||||||||||
Condensed Consolidated Unaudited Statements of Operations | ||||||||||||||||
for the three and nine months ended June 30, 2018 and 2017 | ||||||||||||||||
| For the three months ended June | For the nine months ended June | |||||||||||||||
| 2018 | 2017 | 2018 | 2017 | |||||||||||||
| Sales (including excise taxes of $96.2 million and $95.1 million, and $267.9 million and $271.8 million, respectively) | $ | 349,043,200 | $ | 332,842,200 | $ | 959,763,695 | $ | 936,994,299 | ||||||||
| Cost of sales | 329,930,190 | 314,818,453 | 905,392,747 | 883,180,664 | ||||||||||||
| Gross profit | 19,113,010 | 18,023,747 | 54,370,948 | 53,813,635 | ||||||||||||
| Selling, general and administrative expenses | 17,008,355 | 16,587,055 | 48,981,383 | 48,105,878 | ||||||||||||
| Depreciation and amortization | 614,710 | 474,890 | 1,683,618 | 1,531,292 | ||||||||||||
| 17,623,065 | 17,061,945 | 50,665,001 | 49,637,170 | |||||||||||||
| Operating income | 1,489,945 | 961,802 | 3,705,947 | 4,176,465 | ||||||||||||
| Other expense (income): | ||||||||||||||||
| Interest expense | 261,510 | 180,266 | 777,065 | 545,719 | ||||||||||||
| Other (income), net | (18,615 | ) | (16,513 | ) | (51,158 | ) | (37,250 | ) | ||||||||
| 242,895 | 163,753 | 725,907 | 508,469 | |||||||||||||
| Income from operations before income tax expense | 1,247,050 | 798,049 | 2,980,040 | 3,667,996 | ||||||||||||
| Income tax expense | 462,000 | 413,000 | 376,000 | 1,748,000 | ||||||||||||
| Net income available to common shareholders | $ | 785,050 | $ | 385,049 | $ | 2,604,040 | $ | 1,919,996 | ||||||||
| Basic earnings per share available to common shareholders | $ | 1.21 | $ | 0.57 | $ | 3.85 | $ | 2.82 | ||||||||
| Diluted earnings per share available to common shareholders | $ | 1.18 | $ | 0.56 | $ | 3.79 | $ | 2.78 | ||||||||
| Basic weighted average shares outstanding | 651,170 | 678,938 | 676,103 | 679,858 | ||||||||||||
| Diluted weighted average shares outstanding | 664,688 | 691,701 | 686,576 | 690,840 | ||||||||||||
| Dividends declared and paid per common share | $ | 0.18 | $ | 0.18 | $ | 0.82 | $ | 0.82 | ||||||||
AMCON Distributing Company and Subsidiaries | ||||||||
Condensed Consolidated Unaudited Statements of Cash Flows | ||||||||
for the nine months ended June 30, 2018 and 2017 | ||||||||
| June | June | |||||||
| 2018 | 2017 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net income | $ | 2,604,040 | $ | 1,919,996 | ||||
Adjustments to reconcile net income from operations to net cash flows from operating activities: | ||||||||
| Depreciation | 1,619,868 | 1,332,542 | ||||||
| Amortization | 63,750 | 198,750 | ||||||
| Gain on sale of property and equipment | (5,300 | ) | (30,854 | ) | ||||
| Equity-based compensation | 957,656 | 1,193,005 | ||||||
| Deferred income taxes | (672,431 | ) | 120,367 | |||||
| Provision for losses on doubtful accounts | 23,000 | 42,000 | ||||||
| Inventory allowance | (267,389 | ) | 4,852 | |||||
| Other | 2,967 | 2,296 | ||||||
| Changes in assets and liabilities: | ||||||||
| Accounts receivable | (3,276,391 | ) | (1,044,423 | ) | ||||
| Inventories | 22,167,954 | (701,279 | ) | |||||
| Prepaid and other current assets | (5,843,877 | ) | 771,870 | |||||
| Other assets | (4,928 | ) | (38,358 | ) | ||||
| Accounts payable | 1,584,358 | 322,325 | ||||||
| Accrued expenses and accrued wages, salaries and bonuses | 125,758 | (659,813 | ) | |||||
| Income taxes payable | 11,751 | 7,059 | ||||||
| Net cash flows from operating activities | 19,090,786 | 3,440,335 | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Purchase of property and equipment | (2,120,358 | ) | (1,761,431 | ) | ||||
| Proceeds from sales of property and equipment | 5,300 | 42,655 | ||||||
| Net cash flows from investing activities | (2,115,058 | ) | (1,718,776 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Borrowings under revolving credit facility | 1,043,415,401 | 950,104,143 | ||||||
| Repayments under revolving credit facility | (1,051,967,147 | ) | (950,313,271 | ) | ||||
| Principal payments on long-term debt | (279,339 | ) | (271,031 | ) | ||||
| Repurchase of common stock | (7,704,392 | ) | (1,038,060 | ) | ||||
| Dividends on common stock | (586,796 | ) | (579,848 | ) | ||||
| Withholdings on the exercise of equity-based awards | (101,200 | ) | (107,082 | ) | ||||
| Net cash flows from financing activities | (17,223,473 | ) | (2,205,149 | ) | ||||
| Net change in cash | (247,745 | ) | (483,590 | ) | ||||
| Cash, beginning of period | 523,065 | 605,380 | ||||||
| Cash, end of period | $ | 275,320 | $ | 121,790 | ||||
| Supplemental disclosure of cash flow information: | ||||||||
| Cash paid during the period for interest | $ | 764,557 | $ | 545,719 | ||||
| Cash paid during the period for income taxes | 1,036,680 | 1,620,574 | ||||||
| Supplemental disclosure of non-cash information: | ||||||||
| Equipment acquisitions classified in accounts payable | 8,203 | 9,881 | ||||||
Issuance of common stock in connection with the vesting and exercise of equity-based awards | 1,183,091 | 1,262,763 | ||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20180718005790/en/
Contacts:
Christopher H. Atayan, 402-331-3727
