AMCON Distributing Company Reports Fully Diluted Earnings Per Share of $1.85 for the Quarter Ended December 31, 2015

OMAHA, Neb.–(BUSINESS WIRE)–AMCON Distributing Company (“AMCON”) (NYSE MKT:DIT), an Omaha, Nebraska
based consumer products company is pleased to announce fully diluted
earnings per share of $1.85 on net income available to common
shareholders of $1.3 million for the fiscal quarter ended December 31,
2015.

“We are pleased with our start to fiscal 2016. Our business strategy is
centered on customer service and reliability and enables us to compete
well in a challenging environment,” 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 that can benefit from our extensive platform of services.”

“One of our goals is to continue to develop our foodservice
capabilities. Sales are growing industry wide in this category and we
are among the leaders in program development,” said Kathleen M. Evans,
President of AMCON’s Wholesale Distribution Segment.

“Industry growth in the retail health food sector has led to greater
competition from new market entrants and has pressured sales. We have
carefully rationalized our expense structure while maintaining our
customary high level of customer service,” said Eric Hinkefent,
President of AMCON’s Retail Health Food Segment.

“We were pleased to close the December 31, 2015 quarter with
shareholders’ equity of $61.4 million and consolidated debt of $14.8
million,” said Andrew C. Plummer, AMCON’s Chief Financial Officer.
Plummer added, “Providing cutting edge technology products to our
internal and external customers in a rapidly changing environment
requires considerable ongoing investment. We are also driving more miles
to serve our customers and investing significant resources in our
refrigerated delivery equipment.”

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, 2015 and September 30, 2015
 
    December     September
2015 2015
(Unaudited)
ASSETS
Current assets:
Cash $ 344,467 $ 219,536
Accounts receivable, less allowance for doubtful accounts of $0.9
million at both December 2015 and September 2015
31,410,516 31,866,787
Inventories, net 43,704,180 60,793,478
Deferred income taxes 1,200,581 1,553,726
Income taxes receivable 113,238
Prepaid and other current assets   6,809,787     2,125,908  
Total current assets 83,469,531 96,672,673
 
Property and equipment, net 12,635,474 12,753,145
Goodwill 6,349,827 6,349,827
Other intangible assets, net 3,999,728 4,090,978
Other assets   279,792     317,184  
$ 106,734,352   $ 120,183,807  
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable $ 15,775,388 $ 17,044,726
Accrued expenses 6,218,204 7,224,963
Accrued wages, salaries and bonuses 1,520,198 3,282,354
Income taxes payable 341,623
Current maturities of long-term debt   354,047     351,383  
Total current liabilities 24,209,460 27,903,426
 
Credit facility 11,149,637 20,902,207
Deferred income taxes 3,762,477 3,696,098
Long-term debt, less current maturities 3,294,657 3,384,319
Other long-term liabilities 32,849 34,860
 

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

December 2015 and September 2015

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 both December
2015 and

September 2015, and a total liquidation preference of $0.4 million
at both

December 2015 and September 2015

400,000 400,000
 

Shareholders’ equity:

Preferred stock, $.01 par value, 1,000,000 shares authorized, 116,000

shares outstanding and issued in Series A and B referred to above

Common stock, $.01 par value, 3,000,000 shares authorized, 609,339
shares

outstanding at December 2015 and 621,104 shares outstanding at
September 2015

7,197 7,061
Additional paid-in capital 16,677,791 15,509,199
Retained earnings 54,535,923 53,527,606
Treasury stock at cost   (9,835,639 )   (7,680,969 )
Total shareholders’ equity   61,385,272     61,362,897  
$ 106,734,352   $ 120,183,807  
 
 
AMCON Distributing Company and Subsidiaries
Condensed Consolidated Unaudited Statements of Operations
for the three months ended December 31, 2015 and 2014
 
    December 2015     December 2014
Sales (including excise taxes of $97.3 million and $96.9 million at
December 2015 and December 2014, respectively)
$ 322,008,249 $ 315,433,476
Cost of sales   303,046,345     295,906,944  
Gross profit   18,961,904     19,526,532  
 
Selling, general and administrative expenses 15,845,134 16,181,122
Depreciation and amortization   566,949     576,305  
  16,412,083     16,757,427  
Operating income   2,549,821     2,769,105  
Other expense (income):
Interest expense 212,454 237,142
Other (income), net   (27,255 )   (7,067 )
  185,199     230,075  
Income from operations before income tax expense 2,364,622 2,539,030
Income tax expense   1,009,000     993,000  
Net income 1,355,622 1,546,030
Preferred stock dividend requirements   (49,177 )   (49,177 )
Net income available to common shareholders $ 1,306,445   $ 1,496,853  
 
 
Basic earnings per share available to common shareholders $ 2.09 $ 2.44
Diluted earnings per share available to common shareholders 1.85 2.11
 
Basic weighted average shares outstanding 625,356 612,560
Diluted weighted average shares outstanding 733,484 734,256
 
 
AMCON Distributing Company and Subsidiaries
Condensed Consolidated Unaudited Statements of Cash Flows
for the three months ended December 31, 2015 and 2014
 
    December 2015     December 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 1,355,622 $ 1,546,030

Adjustments to reconcile net income from operations to net cash
flows from operating activities:

Depreciation 475,699 485,055
Amortization 91,250 91,250
(Gain) loss on sale of property and equipment (11,441 ) 12,036
Equity-based compensation 349,522 289,551
Deferred income taxes 419,524 379,261
Provision for losses on doubtful accounts 8,000 186,750
Provision for losses on inventory obsolescence 44,903 10,420
Other (2,011 ) (2,012 )
 
Changes in assets and liabilities:
Accounts receivable 448,271 (308,132 )
Inventories 17,044,395 (3,870,295 )
Prepaid and other current assets (4,683,879 ) (1,544,107 )
Other assets 37,392 131,443
Accounts payable (1,268,360 ) (174,140 )
Accrued expenses and accrued wages, salaries and bonuses (2,046,917 ) (1,033,434 )
Income taxes payable   454,861     (1,112,164 )
Net cash flows from operating activities 12,716,831 (4,912,488 )
 
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment (361,565 ) (340,796 )
Proceeds from sales of property and equipment   14,000     2,800  
Net cash flows from investing activities (347,565 ) (337,996 )
 
CASH FLOWS FROM FINANCING ACTIVITIES:
Net (payments) borrowings on bank credit agreements (9,752,570 ) 5,730,771
Principal payments on long-term debt (86,998 ) (84,411 )
Dividends paid on convertible preferred stock (49,177 ) (49,177 )
Dividends on common stock (119,514 ) (116,417 )
Repurchase of common stock (2,154,670 )
Withholdings on the exercise of equity-based awards   (81,406 )   (156,497 )
Net cash flows from financing activities   (12,244,335 )   5,324,269  
Net change in cash

124,931

73,785

Cash, beginning of period

  219,536     99,922  
Cash, end of period $ 344,467   $ 173,707  
 
 
December 2015 December 2014
Supplemental disclosure of cash flow information:
Cash paid during the period for interest $ 225,512 $ 223,385
Cash paid during the period for income taxes 134,615 1,725,903
 
Supplemental disclosure of non-cash information:
Equipment acquisitions classified as accounts payable $ 22,351 $ 60,737
Dividends payable 178,614
Issuance of common stock in connection with the vesting and exercise
of equity-based awards
1,174,981 1,240,842
 

Contacts

AMCON Distributing Company
Christopher H. Atayan,
402-331-3727