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AMCON Distributing Company Reports Operating Results (10-Q)

July 20, 2010 | About:
10qk

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.
This is the annual revenues and earnings per share of DIT over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of DIT.


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

Read the The complete Report

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