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AMCON Distributing Company Reports Fully Diluted Earnings Per Share of $1.90 for the Fiscal Quarter Ended December 31, 2012

  AMCON Distributing Company Reports Fully Diluted Earnings Per Share of $1.90
  for the Fiscal Quarter Ended December 31, 2012

Business Wire

OMAHA, Neb. -- January 18, 2013

AMCON Distributing Company (“AMCON”) (NYSE AMEX MKT:DIT), an Omaha, Nebraska
based consumer products company is pleased to announce fully diluted earnings
per share of $1.90 on net income available to common shareholders of $1.4
million for the fiscal quarter ended December 31, 2012.

“Our management team is committed to the development of our focused business
strategy in a diligent fashion. AMCON’s culture of extreme dedication to
customer service is what enables us to deliver consistent results. The depth
and breadth of our customer relationships, in both our divisions, is an
important and valuable asset as the merchant landscape remains highly
competitive,” said Christopher H. Atayan, AMCON’s Chairman and Chief Executive
Officer. “We carefully manage our balance sheet and pay particular attention
to the risk adjusted return on capital we employ. This approach, consistently
applied, has enabled us to develop shareholder value over the long term, while
prudently managing risk,” noted Mr. Atayan.

“The price/value relationship of our products and services are extremely
important to our customer base. We are in alignment with our customers and our
key vendors to develop dynamic merchandising programs that foster customer
profitability and growth. We continue to make investments in foodservice and
information technology as a key component of our program development,” said
Kathleen Evans, President of AMCON’s wholesale distribution segment.

“We are progressing toward the opening of our two new stores located in
Northwest Arkansas and Omaha, Nebraska. Site development and other
preparations are going smoothly,” said Eric Hinkefent, President of AMCON’s
retail health food segment. “We continue to look for new locations which
support our customer focused business model,” added Mr. Hinkefent.

“We were able to use our balance sheet strength to achieve several corporate
objectives during the quarter. We negotiated the repurchase of 38,000 shares
of preferred stock and 14,209 shares of common stock while at the same time
taking advantage of attractive product related opportunities. At December 31,
2012, shareholders’ equity was $48.8 million and consolidated debt was $36.3
million,” said Andrew Plummer, AMCON’s Chief Financial Officer. “We continue
to make a wide variety of capital investments that will enhance our ability to
provide first class service and support to our customers,” added Mr. Plummer.

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
December 31, 2012 and September 30, 2012
                                                            
                                             December          September
                                             2012              2012
                                             (Unaudited)
ASSETS
Current assets:
Cash                                         $ 34,802          $ 491,387
Accounts receivable, less allowance for
doubtful accounts of $1.3 million and $1.2     32,335,062        32,681,835
million at December 2012 and September
2012, respectively
Inventories, net                               49,705,411        38,364,621
Deferred income taxes                          1,618,414         1,916,619
Prepaid and other current assets              7,355,045       6,476,702   
Total current assets                           91,048,734        79,931,164
                                                               
Property and equipment, net                    12,895,924        13,083,912
Goodwill                                       6,349,827         6,349,827
Other intangible assets, net                   5,094,728         5,185,978
Other assets                                  441,409         1,258,985   
                                             $ 115,830,622    $ 105,809,866 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable                             $ 15,220,297      $ 17,189,208
Accrued expenses                               5,709,984         6,931,859
Accrued wages, salaries and bonuses            2,146,303         2,503,361
Income taxes payable                           625,784           2,194,966
Current maturities of long-term debt          1,192,560       1,182,829   
Total current liabilities                      24,894,928        30,002,223
                                                               
Credit facility                                30,379,181        14,353,732
Deferred income taxes                          3,754,812         3,633,390
Long-term debt, less current maturities        4,773,604         5,075,680
Other long-term liabilities                    334,175           336,186
                                                                             
Series A cumulative, Convertible Preferred
Stock, $.01 par value 100,000 shares
authorized and issued, and a total             2,500,000         2,500,000
liquidation preference of $2.5 million at
both December 2012 and September 2012.
Series B cumulative, Convertible Preferred
Stock, $.01 par value 80,000 shares
authorized, 16,000 shares issued and
outstanding at December 31, 2012 and
58,000 shares issued and outstanding at        400,000           1,450,000
September 30, 2012, and a total
liquidation preference of $0.4 million and
$1.5 million at December 2012 and
September 2012, respectively.
                                                               
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              6,543             6,293
outstanding at December 2012 and 612,327
shares outstanding at September 2012
Additional paid-in capital                     12,453,049        11,021,109
Retained earnings                              39,635,286        38,349,253
Treasury stock at cost                        (3,300,956  )    (918,000    )
Total shareholders’ equity                    48,793,922      48,458,655  
                                             $ 115,830,622    $ 105,809,866 
                                                                             

AMCON Distributing Company and Subsidiaries
Condensed Consolidated Unaudited Statements of Operations
for the three months ended December 31, 2012 and 2011
                                                            
                                             2012              2011
Sales (including excise taxes of $98.0       $ 302,218,321     $ 283,563,050
million and $90.5 million, respectively)
Cost of sales                                 282,988,532     264,925,373 
Gross profit                                  19,229,789      18,637,677  
                                                               
Selling, general and administrative            15,848,472        15,350,002
expenses
Depreciation and amortization                 593,862         613,494     
                                              16,442,334      15,963,496  
Operating income                              2,787,455       2,674,181   
Other expense (income):
Interest expense                               316,052           424,110
Other (income), net                           (61,349     )    (151,264    )
                                              254,703         272,846     
Income from operations before income tax       2,532,752         2,401,335
expense
Income tax expense                            1,070,000       963,000     
Net income                                     1,462,752         1,438,335
Preferred stock dividend requirements         (59,291     )    (67,641     )
Net income available to common               $ 1,403,461      $ 1,370,694   
shareholders
                                                               
                                                               
Basic earnings per share available to        $ 2.26            $ 2.21
common shareholders
Diluted earnings per share available to      $ 1.90            $ 1.83
common shareholders
                                                               
Basic weighted average shares outstanding      622,277           619,910
Diluted weighted average shares                767,957           783,994
outstanding
                                                                             

AMCON Distributing Company and Subsidiaries
Condensed Consolidated Unaudited Statements of Cash Flows
for the three months ended December 31, 2012 and 2011
                                                             
                                              2012              2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income                                    $ 1,462,752       $ 1,438,335
Adjustments to reconcile net income from
operations to net cash flows from operating
activities:
Depreciation                                    502,612           512,555
Amortization                                    91,250            100,939
Gain on sale of property and equipment          (70,631     )     (3,600     )
Equity-based compensation                       327,476           318,894
Deferred income taxes                           419,627           449,159
Provision for losses on doubtful accounts       105,000           87,735
Provision for losses on inventory               71,603            46,563
obsolescence
Other                                           (2,011      )     (2,012     )
                                                                
Changes in assets and liabilities:
Accounts receivable                             241,773           3,652,086
Inventories                                     (11,412,393 )     (9,538,609 )
Prepaid and other current assets                (878,343    )     1,122,163
Other assets                                    56,705            (4,175     )
Accounts payable                                (2,021,716  )     (2,586,190 )
Accrued expenses and accrued wages,             (500,789    )     (1,731,517 )
salaries and bonuses
Income tax payable                             (1,569,182  )    (1,367,567 )
Net cash flows from operating activities        (13,176,267 )     (7,505,241 )
                                                                
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment             (330,228    )     (261,717   )
Proceeds from sales of property and            139,040         3,600      
equipment
Net cash flows from investing activities        (191,188    )     (258,117   )
                                                                
CASH FLOWS FROM FINANCING ACTIVITIES:
Net borrowings on bank credit agreements        16,025,449        7,996,506
Principal payments on long-term debt            (292,345    )     (410,772   )
Repurchase of Series B Convertible              (2,572,085  )     —
Preferred Stock and common stock
Dividends paid on convertible preferred         (59,291     )     (67,641    )
stock
Dividends on common stock                       (117,428    )     (119,313   )
Proceeds from exercise of stock options         1,180             1,180
Withholdings on the exercise of                (74,610     )    (51,452    )
equity-based awards
Net cash flows from financing activities       12,910,870      7,348,508  
Net change in cash                              (456,585    )     (414,850   )
                                                                             
Cash, beginning of period                      491,387         1,389,665  
Cash, end of period                           $ 34,802         $ 974,815    
                                                                             
                                                                             
                                              2012              2011
Supplemental disclosure of cash flow
information:
Cash paid during the period for interest      $ 279,667         $ 401,312
Cash paid during the period for income          2,219,555         1,881,407
taxes
                                                                
Supplemental disclosure of non-cash
information:
Equipment acquisitions classified as          $ 64,042          $ 3,254
accounts payable
Issuance of common stock in connection with
the vesting and exercise of equity-based        1,389,258         950,562
awards
Conversion by holder of Series B                100,000           —
Convertible Preferred Stock to common stock
Common stock acquired with other                760,871           —
consideration

Contact:

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