AMCON Distributing Company (DIT) has reported 5.98 percent fall in profit for the year ended Sep. 30, 2016. The company has earned $5.98 million, or $8.38 a share in the year, compared with $6.36 million, or $8.59 a share for the last year.
Revenue during the year went up marginally by 1 percent to $1,294.63 million from $1,281.86 million in the previous year. Gross margin for the year contracted 20 basis points over the previous year to 5.78 percent. Total expenses were 99.16 percent of annual revenues, up from 99.10 percent for the last year. That has resulted in a contraction of 6 basis points in operating margin to 0.84 percent.
Operating income for the year was $10.87 million, compared with $11.53 million in the previous year.
"We are pleased with our results for fiscal 2016. AMCON has earned its leadership position in the convenience distribution industry as a result of its determined and focused efforts to provide first class customer service and reliability. As the convenience store industry evolves and becomes increasingly complex, the wide variety of programs and services we offer serve to competitively differentiate AMCON," said Christopher H. Atayan, AMCON's chairman and chief executive officer.
Operating cash flow turns positive
AMCON Distributing Company has generated cash of $18.39 million from operating activities during the year as against cash outgo of $2.56 million in the last year.
The company has spent $1.48 million cash to meet investing activities during the year as against cash outgo of $0.98 million in the last year. It has incurred net capital expenditure of $1.48 million on net basis during the year, up 51.70 percent or $0.51 million from year ago.
The company has spent $16.52 million cash to carry out financing activities during the year as against cash inflow of $3.66 million in the last year period.
Cash and cash equivalents stood at $0.61 million as on Sep. 30, 2016, up 175.75 percent or $0.39 million from $0.22 million on Sep. 30, 2015.
Working capital declines
AMCON Distributing Company has witnessed a decline in the working capital over the last year. It stood at $60.36 million as at Sep. 30, 2016, down 12.23 percent or $8.41 million from $68.77 million on Sep. 30, 2015. Current ratio was at 3.09 as on Sep. 30, 2016, down from 3.46 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 11 days for the year from 21 days for the last year. Days sales outstanding were almost stable at 9 days for the year, when compared with the last year period.
Days inventory outstanding has decreased to 7 days for the year compared with 17 days for the previous year period. At the same time, days payable outstanding was almost stable at 5 days for the year, when compared with the previous year period.
Debt comes down significantly
AMCON Distributing Company has recorded a decline in total debt over the last one year. It stood at $13.92 million as on Sep. 30, 2016, down 43.50 percent or $10.72 million from $24.64 million on Sep. 30, 2015. Total debt was 12.40 percent of total assets as on Sep. 30, 2016, compared with 20.50 percent on Sep. 30, 2015. Debt to equity ratio was at 0.21 as on Sep. 30, 2016, down from 0.40 as on Sep. 30, 2015. Interest coverage ratio improved to 15.04 for the year from 13.70 for the same period last year.
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