AMCON Announces Third Quarter Results.Business Editors OMAHA Omaha, city, United States Omaha (ō`məhä, –hô), city (1990 pop. 335,795), seat of Douglas co., E Nebr., on the west bank of the Missouri River; inc. 1857. , Neb.--(BUSINESS WIRE)--Aug. 14, 2001 AMCON Distributing Company (AMEX AMEX See: American Stock Exchange :DIT) announced today that, for the three months ended June 30, income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the was $44,618, or $0.02 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share compared to $1.5 million, or $0.54 per diluted share for the prior year quarter. Income from continuing operations for the third quarter ended June 30, 2000 included $1.1 million, or $0.41 per diluted share, in nonrecurring gains, net of tax, related to the sale of the Company's interest in a condominium condominium In modern property law, individual ownership of one dwelling unit within a multidwelling building. Unit owners have undivided ownership interest in the land and those portions of the building shared in common. and resolution of an intellectual property matter. In addition, the loss from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. for the third quarter ended June 30, 2000 was $150,910, or $0.05, per diluted share. For the nine months ended June 30, 2001, AMCON's net income from continuing operations was $216, 876, or $0.08 per diluted share compared to $3.6 million, or $1.26 per diluted share for the same period of the prior year. Results for the nine months ended June 30, 2001, on an after-tax basis After-tax basis The comparison basis used to analyze the net after-tax returns on a corporate taxable bond and a municipal tax-free bond. , were below the prior year due to the following factors: (1) net margin related to cigarette price increases was $0.5 million below prior year amounts, (2) traditional distribution operating results were $0.6 million below the prior year due to severe winter weather in the Midwest during the first and second quarter of the year, (3) retail health food operating results were $0.9 below the prior year due to a general downturn in the health food industry and expenses associated with integration of the health foods business, and (4) income from continuing operations for the nine months ended June 30, 2000 included $1.1 million in nonrecurring gains, net of tax, related to the sale of the Company's interest in a condominium and resolution of an intellectual property matter. In addition, AMCON incurred a loss from discontinued operations of $1.6 million for the nine months ended June 30, 2001 in connection with the operations and sale of its wholesale health food distribution business in March 2001. The loss is comprised of a $0.9 million loss from the discontinued operations of the business and a $0.7 million loss on the disposal of the discontinued operations. The $0.7 million loss includes a $1.8 million, net of tax, charge for the estimated future costs of two operating leasehold commitments and other contractual agreements associated with the disposal. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the three and nine-month periods ended June 30, 2001 increased to $153.7 million and $355.9 million, respectively, compared to $106.0 million and $306.1 million for the same periods of the prior year. Sales from the new Quincy, IL distribution business, which was acquired from Merchants Wholesale, Inc. on June 1, 2001, represented 70.8% of the increase in sales for the quarter and 67.8% of the sales increase for the nine months ended June, 30, 2001. Wm. F. Wright, Chairman of AMCON, noted that "Income from continuing operations for the third quarter of fiscal 2001 improved from the second quarter of the year and was comparable to the third quarter of fiscal 2000, excluding the nonrecurring gains in the third quarter of the prior year. Sales growth in our wholesale distribution business increased with improved weather in the Midwest and with the addition of the new Quincy, IL distribution business." "Same store sales Same Store Sales A statistic used in retail industry analysis. It compares sales of stores that have been open for a year or more. Notes: This statistic allows investors to determine what portion of new sales has come from sales growth and what portion from the opening of and gross profit from our retail health food business continue to be sluggish compared to the prior year due to increased competition in our retail territories and an overall softening softening /sof·ten·ing/ (sof´en-ing) malacia. softening a change of consistency, with loss of firmness or hardness. of the natural food retail market over the past year. As a result, the Company plans to close one retail store in the Florida market before the end of the fiscal year due to poor financial performance. No significant charges to our results are expected as a result of this close." Wright continued, "We believe that we will continue to improve our operating results in the fourth quarter since the fourth quarter typically represents one of our stronger operational periods. In addition, we are seeking to expedite ex·pe·dite tr.v. ex·pe·dit·ed, ex·pe·dit·ing, ex·pe·dites 1. To speed up the progress of; accelerate. 2. the release from our operating lease Operating Lease A lease contract that allows the use of an asset, but does not convey rights similar to ownership of the asset. Notes: An operating lease is not capitalized it is accounted for as a rental expense. commitments under the Arizona and Florida leaseholds related to the disposed business to mitigate the cash outflow related to the charges already taken through discontinued operations." Omaha-based AMCON is a leading wholesale distributor of consumer products including beverages, candy, tobacco, groceries, food service, frozen and chilled foods Chilled foods are prepared foods stored at refrigeration temperatures (at or below 8°C). They have been available in the United Kingdom and many other industrialised countries since the 1960s. , and health and beauty care products with distribution centers in Illinois, Missouri (2), Nebraska, North Dakota North Dakota, state in the N central United States. It is bordered by Minnesota, across the Red River of the North (E), South Dakota (S), Montana (W), and the Canadian provinces of Saskatchewan and Manitoba (N). , South Dakota South Dakota (dəkō`tə), state in the N central United States. It is bordered by North Dakota (N), Minnesota and Iowa (E), Nebraska (S), and Wyoming and Montana (W). and Wyoming. Chamberlin's Natural Foods, Inc., and Health Food Associates, Inc., both wholly-owned subsidiaries of The Healthy Edge, Inc. (formerly Food For Health Co., Inc.), operate health and natural product retail stores in central Florida
Central Florida is the central region of the United States state of Florida, on the East Coast. (8), Kansas, Missouri, Nebraska and Oklahoma (3). The retail stores operate under the names Chamberlin's Market & Cafe and Akin's Natural Foods 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. Moreover, past financial performance should not be considered a reliable indicator of future performance. Accordingly, the Company claims the protection of the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. for forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. contained in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 with respect to all such forward-looking statements. Visit AMCON Distributing Company's web site at: www.amcon-dist.com Financial Table Follows
AMCON Distributing Company
Condensed Consolidated Statements of Operations
for the three and nine months ended June 30, 2001 and 2000
(Unaudited)
----------------------------------------------------------------------
For the three months For the nine months
ended June 30 ended June 30
-------------------------- --------------------------
2001 2000 2001 2000
------------ ------------ ------------ ------------
Sales $153,662,344 $105,950,999 $355,924,403 $306,123,069
============ ============ ============ ============
Income from
continuing
operations $ 44,618 $ 1,531,501 $ 216,876 $ 3,607,710
Loss from
discontinued
operations,
net of income
tax benefit of
$88,630,
$551,298 and
$5,357 - (150,910) (894,435) (9,122)
Loss on
disposal of
discontinued
operations,
net of income
tax benefit of
$411,350 - - (675,416) -
------------ ------------ ------------ ------------
Net income
(loss) $ 44,618 $ 1,380,591 $ (1,352,975) $ 3,598,588
============ ============ ============ ============
Earnings (loss)
per share from
continuing
operations:
Basic $ 0.02 $ 0.56 $ 0.08 $ 1.32
Diluted $ 0.02 $ 0.54 $ 0.08 $ 1.26
Earnings (loss)
per share from
discontinued
operations:
Basic $ - $ (0.06) $ (0.57) $ (0.00)
Diluted $ - $ (0.05) $ (0.56) $ (0.00)
Net earnings
(loss) per
share:
Basic $ 0.02 $ 0.50 $ (0.49) $ 1.32
Diluted $ 0.02 $ 0.49 $ (0.48) $ 1.26
Weighted
average shares
outstanding:
Basic 2,738,231 2,737,333 2,737,983 2,733,954
Diluted 2,831,433 2,845,101 2,826,207 2,858,725
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