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AMCON Distributing Company Reports Operating Results (10-Q)

July 20, 2010 | About:
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10qk

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AMCON Distributing Company (DIT) filed Quarterly Report for the period ended 2010-06-30.

Amcon Distributing Company has a market cap of $29.9 million; its shares were traded at around $52.0001 . The dividend yield of Amcon Distributing Company stocks is 1.4%. Amcon Distributing Company had an annual average earning growth of 8.1% over the past 10 years.DIT is in the portfolios of Jim Simons of Renaissance Technologies LLC.

Highlight of Business Operations:

Gross profit in our Wholesale Segment increased $1.7 million in Q3 2010 as compared to Q3 2009. During Q3 2009, our gross profit benefited $0.6 million due to price increases implemented by cigarette and tobacco manufacturers. On a year-over-year basis, the decrease in this gross profit from the prior year period was offset by $0.7 million due to the gross profit generated by the Discount Distributors acquisition, $0.6 million due to improved gross margins in our cigarette and tobacco categories, and $1.0 million due to changes in sales volume and promotional allowances.

Operating expenses increased approximately $1.4 million in Q3 2010 as compared to Q3 2009. Of this increase, approximately $0.6 million was attributable to operating costs incurred servicing our new business in Northwest Arkansas, $0.4 million related to an increase in bad debt expense, $0.2 million related to higher depreciation and amortization expense, $0.2 million related to higher insurance and fuel costs, and $0.3 million primarily related to our new Retail Segment store in Tulsa, Oklahoma. These increases were partially offset by a $0.3 million decrease in compensation expense.

Gross profit in our Wholesale Segment increased $2.5 million for the nine month period ended June 2010 as compared to the same period in the prior year. During the comparable prior year period, our gross profit included a benefit of $3.2 million due to price increases implemented by cigarette and tobacco manufacturers. On a year-over-year basis, the decrease in this gross profit from the prior year period was offset by $1.8 million due to the gross profit generated by Discount Distributors, and $2.5 million due to improved gross margins in our cigarette and tobacco categories, and $1.4 million related to changes in promotional allowances and overall sales volume.

Gross profit for the Retail Segment increased $0.6 million for the nine month period ended June 2010. Of this increase, approximately $0.1 million related to our new Retail store in Tulsa, Oklahoma and $0.5 million related to lower throw-out costs and improved gross margins.

Operating expenses for the nine month period ended June 2010 increased approximately $2.9 million as compared to the same prior year period. Of this increase, approximately $1.3 million is to attributable to operating costs incurred servicing our new business in Northwest Arkansas, $0.2 million related to an increase in our bad debt expense, $0.4 million related to higher depreciation and amortization expense, $0.5 million related higher compensation expense, $0.2 million related to higher fuel costs, and $0.3 million primarily related to our new Retail Segment store in Tulsa, Oklahoma.

During the nine months ended June 2010, our peak borrowings under the Facility were $39.6 million and our average borrowings and average availability were $31.2 and $20.0 million, respectively. Our availability to b

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10qk
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