AMCON Distributing Company (DIT) has reported 22.81 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $1.05 million, or $1.52 a share in the quarter, compared with $1.36 million, or $1.85 a share for the same period last year. Revenue during the quarter dropped 3.70 percent to $310.10 million from $322.01 million in the previous year period. Gross margin for the quarter expanded 2 basis points over the previous year period to 5.91 percent. Total expenses were 99.33 percent of quarterly revenues, up from 99.21 percent for the same period last year. That has resulted in a contraction of 12 basis points in operating margin to 0.67 percent.
Operating income for the quarter was $2.09 million, compared with $2.55 million in the previous year period.
“We are pleased with our start to fiscal 2017. Our business strategy is centered on customer service and reliability which enables us to compete in a challenging environment. We expect that we will enter into a period of sustained capital expenditures in order to maintain and enhance our competitive position in light of current operating conditions,” said Christopher H. Atayan, AMCON’s Chairman and Chief Executive Officer. He further noted, “As a leader in the Convenience Distribution industry, AMCON is actively seeking acquisitions in the convenience distribution and foodservice industries that can benefit from our extensive platform of services.”
Operating cash flow drops significantly
AMCON Distributing Company has generated cash of $2.17 million from operating activities during the quarter, down 82.97 percent or $ 10.55 million, when compared with the last year period. The company has spent $0.37 million cash to meet investing activities during the quarter as against cash outgo of $0.35 million in the last year period. It has incurred capital expenditure of $0.37 million on net basis during the quarter, up 6.25 percent or $0.02 million from year ago period.
The company has spent $2.07 million cash to carry out financing activities during the quarter as against cash outgo of $12.24 million in the last year period.
Cash and cash equivalents stood at $0.33 million as on Dec. 31, 2016, down 3.79 percent or $0.01 million from $0.34 million on Dec. 31, 2015.
Working capital increases marginally
AMCON Distributing Company has recorded an increase in the working capital over the last year. It stood at $60.85 million as at Dec. 31, 2016, up 2.69 percent or $1.59 million from $59.26 million on Dec. 31, 2015. Current ratio was at 3.59 as on Dec. 31, 2016, up from 3.45 on Dec. 31, 2015.
Cash conversion cycle (CCC) has decreased to 11 days for the quarter from 20 days for the last year period. Days sales outstanding were almost stable at 9 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 8 days for the quarter compared with 16 days for the previous year period. At the same time, days payable outstanding was almost stable at 5 days for the quarter, when compared with the previous year period.
Debt comes down
AMCON Distributing Company has recorded a decline in total debt over the last one year. It stood at $13.10 million as on Dec. 31, 2016, down 11.48 percent or $1.70 million from $14.80 million on Dec. 31, 2015. Total debt was 12.24 percent of total assets as on Dec. 31, 2016, compared with 13.86 percent on Dec. 31, 2015. Debt to equity ratio was at 0.20 as on Dec. 31, 2016, down from 0.24 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 9.61 for the quarter from 12 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
