AMCON Distributing Company (DIT) filed Quarterly Report for the period ended 2009-06-30.
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. The company operates through two segments: Wholesale Distribution and Retail Health Food. The Wholesale Distribution segment has five distribution centers that distribute the products to approximately 4000 retailers such as convenience stores discount and general merchandise stores grocery stores and supermarkets drug stores and gas stations as well as serves institutional customers including restaurants and bars schools sports complexes and vendors and other wholesalers. The Retail Health Food segment operates retail health food stores which carry natural supplements groceries health and beauty care products and other food items. AMCON Distributing Company is based in Omaha Nebraska. AMCON Distributing Company has a market cap of $23.3 million; its shares were traded at around $40.96 . The dividend yield of AMCON Distributing Company stocks is 1%. AMCON Distributing Company had an annual average earning growth of 11.6% over the past 5 years.
Highlight of Business Operations:Sales in our wholesale distribution segment (wholesale) increased $20.2 million in Q3 2009 as compared to Q3 2008. This change included a $19.5 million increase in cigarette sales and a net $0.7 million increase in our tobacco, beverages, snacks, candy, grocery, health & beauty products, automotive, food service, and store supplies categories (Other Products).
Q3 2009 operating expenses decreased approximately $0.2 million as compared to Q3 2008. This change was primarily the result of a $0.6 million reduction in fuel costs and a $0.2 million decrease in other operating expenses. These items were partially offset by a $0.6 million increase in compensation costs.
Sales in our wholesale distribution segment increased $33.4 million for the nine months ended June 2009 as compared to the same prior year period. This change included a $26.1 million increase in cigarette sales and a net $7.3 million increase in Other Products.
Operating expenses for the nine month period ended June 2009 increased approximately $0.6 million as compared to the same prior year period. Significant items impacting operating expenses included a $0.9 million increase in compensation costs, a $0.5 million increase in health insurance costs, and a $0.1 million increase in other operating expenses. These items were partially offset by a $0.9 million decrease in fuel costs.
Financing Activities: The Company used cash of $12.8 million for financing activities during the nine months ended June 2009. Of this amount, $9.0 million related to net payments on the Companys credit facility, $2.0 million related to the redemption of the Companys Series C Convertible Preferred Stock, $0.6 million related to principal payments on long-term debt, $0.4 million related to dividends on the Companys common and preferred stock, and $0.8 million related to principal payments on long-term debt classified as discontined operations.
Cash on Hand/Working Capital: At June 2009, the Company had cash on hand of $0.4 million and working capital (current assets less current liabilities) of $34.0 million. This compares to cash on hand of $0.5 million and working capital of $38.9 million at September 2008. The decrease in working capital from September 2008 is primarily related to the SCHIP floor stocks tax liability discussed below and an increase in income taxes payable. The impact of these items on working capital was partially offset by the TSI transactions also discussed below.
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