AMCON Reports 1st Quarter Earnings.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)--Feb. 10, 2003 AMCON Distributing Company (AMEX AMEX See: American Stock Exchange :DIT), an Omaha, NE based consumer products company, announced today that its net income for the first quarter ended December December: see month. 2002 was $274,974 or $ 0.09 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 with $390,642 or $0.14 per diluted share for the first quarter of the prior year. Sales for the first quarter were $197.7 million compared to $210.2 million for the same period in the prior year. William William, crown prince of Germany William or Frederick William, 1882–1951, crown prince of Germany, son of William II. In World War I he commanded (1914) an army on the Western Front and was nominal commander in the German attack F. Wright, Chairman of AMCON, stated that "In a fiercely competitive environment, as is the wholesale distribution business, our sales did decline from the comparable quarter of last year but, in spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite that fact, we were able to retain the net income contribution from the wholesale distribution business and manage our inventories and receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed in a way that resulted in cash flow and debt reduction in excess of $12.0 million for the quarter. We were also able to control our operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. and continue our focus on customer service, which we believe sets us apart from our competitors. The realignment re·a·lign tr.v. re·a·ligned, re·a·lign·ing, re·a·ligns 1. To put back into proper order or alignment. 2. To make new groupings of or working arrangements between. of our management team in our retail health food segment showed dramatic results last fiscal year. Because of this, as previously announced, we have allocated additional resources to the expansion of this business to remodel re·mod·el tr.v. re·mod·eled also re·mod·elled, re·mod·el·ing also re·mod·el·ling, re·mod·els also re·mod·els To make over in structure or style; reconstruct. certain locations and to expand into new markets. We believe that this approach will allow us to increase sales and more effectively utilize our management overhead expenses." Wright added, "We announced last month the creation of a new beverage division which includes Hawaiian Hawaiian, member of the Polynesian group of the Austronesian family of languages. Of the fewer than 10,000 people who speak Hawaiian, only a few hundred are native speakers, but the language is taught in some Hawaiian schools and remains important as a symbol of Springs Natural Water Company and The Beverage Group, Inc. The Beverage Group, Inc. will focus its efforts on the development of markets for Hawaiian Springs(R) natural spring water products and other non-owned premium beverages on the U.S. mainland, Canada and Mexico. The upgrade to our water plant in Hawaii is now substantially completed and we expect a new warehouse and additional equipment presently being installed to be ready for the summer season. Additionally, we expect shortly to announce agreements with non-owned premium beverage manufacturers to distribute their products in our markets. Finally, we have completed the required analysis of goodwill impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. and have been advised that there is no impairment and, accordingly, no charges will need to be taken by the Company." AMCON is a leading wholesale distributor of consumer products including beverages, candy candy: see confectionery. candy Sweet sugar- or chocolate-based confection. The Egyptians made candy from honey (combined with figs, dates, nuts, and spices), sugar being unknown. , tobacco, groceries gro·cer·y n. pl. gro·cer·ies 1. A store selling foodstuffs and various household supplies. 2. groceries Commodities sold by a grocer. , 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 Illinois, river, United States Illinois, river, 273 mi (439 km) long, formed by the confluence of the Des Plaines and Kankakee rivers, NE Ill., and flowing SW to the Mississippi at Grafton, Ill. It is an important commercial and recreational waterway. , Missouri Missouri, state, United States Missouri (mĭz  r`ē, –ə), one of the midwestern states of the United States. , 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. (7), Kansas, Missouri, Nebraska and Oklahoma (3). The retail stores operate under the names Chamberlin's Market & Cafe and Akin's Natural Foods Market. Hawaiian Natural Water Company, Inc., which was acquired in December of 2001, produces and sells natural spring water under the Hawaiian Springs label. The water is bottled at the source on the Big Island of Hawaii. The Beverage Group, Inc. markets and distributes Hawaiian Springs and other premium beverage products in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , Canada and Mexico. 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 CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or , 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.com
AMCON Distributing Company and Subsidiaries
Condensed Consolidated Balance Sheets
December 2002 and September 2002
----------------------------------------------------------------------
(Unaudited)
December 2002 September 2002
-------------- --------------
ASSETS
Current assets:
Cash $ 118,375 $ 130,091
Accounts receivable, less allowance
for doubtful accounts of $0.7 million
and $0.6 million, respectively 26,488,856 31,216,783
Inventories 28,321,040 35,744,074
Income tax receivable 904,760 981,054
Deferred income taxes 324,369 324,369
Other 493,092 393,365
-------------- --------------
Total current assets 56,650,492 68,789,736
Fixed assets, net 16,009,266 16,096,124
Available-for-sale investments 710,590 562,000
Goodwill 6,091,402 6,091,402
Other Intangible Assets 11,728,084 11,804,284
Other assets 1,287,244 1,242,923
-------------- --------------
$92,477,078 $104,586,469
============== ==============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 19,960,502 $19,873,851
Accrued expenses 3,390,965 3,969,164
Accrued wages, salaries, bonuses 1,595,735 1,371,310
Current liabilities of discontinued
operations 87,378 93,558
Current portion of long-term debt 4,597,488 14,783,967
Current portion of subordinated debt 1,708,987 1,708,986
-------------- --------------
Total current liabilities 31,341,055 41,800,836
-------------- --------------
Deferred income taxes 844,780 788,316
Non-current liabilities of
discontinued operations 188,025 197,024
Long-term debt, less current portion 34,375,600 36,362,099
Subordinated debt, less current
portion 8,738,886 8,738,886
Commitments and contingencies
Shareholders' equity:
Preferred stock, $.01 par value,
1,000,000 shares authorized, none
outstanding - -
Common stock, $.01 par value,
15,000,000 shares authorized,
3,168,961 and 3,156,962 issued,
respectively 31,690 31,570
Additional paid-in capital 5,998,006 5,977,643
Accumulated other comprehensive income,
net of tax of $0.2 million and $0.2
million, respectively 386,897 294,771
Retained earnings 10,572,139 10,395,324
-------------- --------------
Total shareholders' equity 16,988,732 16,699,308
-------------- --------------
$92,477,078 $104,586,469
============== ==============
AMCON Distributing Company and Subsidiaries
Condensed Consolidated Statements of Operations
for the three months ended December 2002 and 2001
(Unaudited)
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2002 2001
------------- -------------
Sales (including excise taxes of
$41.7 million and $38.4 million,
respectively) $197,720,887 $210,153,847
Cost of sales 183,877,011 195,043,632
------------- -------------
Gross profit 13,843,876 15,110,215
------------- -------------
Selling, general and administrative
expenses 12,175,703 12,557,354
Depreciation and amortization 556,346 719,284
------------- -------------
12,732,049 13,276,638
------------- -------------
Income from operations 1,111,827 1,833,577
------------- -------------
Other expense (income):
Interest expense 843,655 1,084,098
Other income, net (171,802) (46,797)
Equity in loss of unconsolidated
affiliate - 95,007
------------- -------------
671,853 1,132,308
------------- -------------
Income before income taxes 439,974 701,269
Income tax expense 165,000 310,627
------------- -------------
Net income $ 274,974 $ 390,642
============= =============
Earnings per share:
Basic $ 0.09 $ 0.14
============= =============
Diluted $ 0.09 $ 0.14
============= =============
Dividends per share $ 0.03 $ 0.03
============= =============
Weighted average shares outstanding:
Basic 3,157,790 2,788,633
Diluted 3,232,023 2,859,271
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