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