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AMCON Distributing Company Reports Operating Results (10-Q)

January 19, 2010 | About:

AMCON Distributing Company (DIT) filed Quarterly Report for the period ended 2009-12-31.

Amcon Distributing Company has a market cap of $35.07 million; its shares were traded at around $61.2 with and P/S ratio of 0.04. The dividend yield of Amcon Distributing Company stocks is 1.18%. 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 increased $26.6 million in Q1 2010 as compared to Q1 2009. This change included a $25.3 million increase in cigarette sales and a net $1.3 million increase in sales of tobacco, beverages, snacks, candy, grocery, health & beauty products, automotive, food service, and store supplies categories (Other Products).

Gross profit in our wholesale segment increased $1.2 million in Q1 2010 as compared to Q1 2009. This increase primarily resulted from higher gross margins in our tobacco product categories totaling approximately $1.4 million and a $0.7 million increase in gross profit related to changes in promotional allowances and the acquisition of Discount Distributors. These increases were partially offset by a $0.9 million decrease in gross profit primarily attributable to a decrease in the volume of cigarette cartons sold.

Q1 2010 interest expense decreased $0.1 million as compared to Q1 2009. This change was principally related to lower interest rates and average borrowings on the Companys credit facility. In Q1 2010, the Companys average interest rates and average borrowings on its revolving credit facility were 0.2% and $1.0 million lower, respectively, as compared to Q1 2009.

The amount available for use on the Facility at any given time is subject to a number of factors including eligible accounts receivable and inventory balances that fluctuate day-to-day. Based on our collateral and loan limits as defined in the Facility agreement, the Companys availability was approximately $25.1 million at December 2009 and the outstanding balance on the revolving portion of the Facility was $25.5 million. The resulting credit limit on the Facility at December 31, 2009 was $50.6 million.

During Q1 2010, our peak borrowings under the Facility were $39.6 million and our average borrowings and average availability were $31.6 and $20.0 million, respectively. Our availability to borrow under the Facility generally decreases as inventory and accounts receivable levels increase because of the borrowing limitations that are placed on collateralized assets.

The Company paid cash dividends of $103,181 or $0.18 per common share, in Q1 2010, and $57,039 or $0.10 per common share, in Q1 2009. The Company paid cash dividends related to the Convertible Preferred Stock of $74,867 and $105,533, respectively, during Q1 2010 and Q1 2009.

Read the The complete Report

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