AMCON Distributing Company Reports Earnings from Continuing Operations of $1.81 Per Share for Fiscal Year Ended September 30, 2006 and Extends Credit Facility to 2009.CHICAGO -- AMCON Distributing Company ("AMCON") (AMEX AMEX See: American Stock Exchange :DIT), an Omaha, Nebraska based consumer products company is pleased to announce that it earned $1.81 per share 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 for the year ended September 30, 2006. For the quarter ended September 30, 2006 the Company earned 27 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. on a fully diluted basis. In addition, the Company has extended its revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility with its bank group to April 2009. "We are continuing to make solid progress in our efforts to restore the financial health of the company. The early renewal and extension of our credit facility is clearly a vote of confidence by our banks" said Christopher Atayan AMCON's Chief Executive Officer. As previously announced, the Company has accounted for its recently divested Hawaiian Natural Water business as a discontinued operation discontinued operation A segment of a business that has been abandoned or sold or for which plans for one or another of these actions have been approved. See also continuing operations. as of September 30, 2006 in accordance with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting and has recast its results for the fiscal years ended 2002 through 2005. The Hawaiian assets were divested in November 2006 and the accounting for this transaction will be realized when AMCON reports its first quarter 2007 results. "Our two core operating businesses continued to perform well. We believe that the recast financial results provided a more transparent view to our actual earning power Earning power Earnings before interest and taxes (EBIT) divided by total assets. earning power 1. The earnings that an asset could produce under optimal conditions. For example, AT&T may currently be earning $2. as an enterprise" added Atayan. AMCON's Wholesale Distribution business reported operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. before depreciation and amortization of $9.3 million for the fiscal year. The Company's Retail Health Food business reported operating income before depreciation and amortization of $3.0 million. "We are very competitive in the market and were awarded several new accounts during the fiscal year. Our high levels of customer service continue to be a positive differentiating factor" said Kathleen M. Evans President of AMCON's Wholesale Distribution business. "We believe that our financial performance in the retail segment is a direct reflection of our strategy of providing a high quality consumer experience in our stores. Our product merchandising and customer service are at the highest levels in the natural foods industry. As a result we enjoy strong customer loyalty" said Eric Hinkefent President of AMCON's Retail Health Food business. "Our reported financial results are significantly impacted by non recurring legal and accounting expenses related to our discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. . We expect this trend to continue in 2007" said Andrew C. Plummer AMCON's Acting Chief Financial Officer. AMCON is a leading wholesale distributor of consumer products, including beverages, candy, tobacco, groceries, food service, frozen and chilled foods, and health and beauty care products with distribution centers in Illinois, Missouri, Nebraska, North Dakota and South Dakota. Chamberlin's Natural Foods, Inc. and Health Food Associates, Inc., both wholly-owned subsidiaries of The Healthy Edge, Inc., operate health and natural product retail stores in central Florida (6), Kansas, Missouri, Nebraska and Oklahoma (4). The retail stores operate under the names Chamberlin's Market & Cafe and Akins 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 including, without limitation, availability of sufficient cash resources to conduct its business and meet its capital expenditures needs. 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 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.com [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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