Amcon Distributing Co. Reports Solid First Quarter

Amcon Distributing Co., an Omaha, Nebraska based food distributor, announced fully diluted earnings per share of $2.41 on net income available to common stockholders of $1.8 million for the first fiscal quarter ended Dec. 31, 2010.

"We were pleased with the performance this quarter. Management is steadfastly focused on delivering a premium level of service to our customers. We believe this philosophy enhances our customer's bottom line which ultimately benefits our shareholders," said Christopher H. Atayan, Amcon's chairman and chief executive officer in a prepared statement.

Each of Amcon's business segments had solid quarters. The wholesale distribution segment reported revenues of $236.0 million and operating income before depreciation and amortization of $5.3 million in the first quarter of fiscal 2011. The retail health food segment reported revenues of $9.1 million and operating income before depreciation and amortization of $0.9 million for the same period.

"We are working closely with our customers on a wide variety of initiatives designed to enhance their profitability and efficiency. This close level of interaction is mutually beneficial and is the platform that drove our performance again this quarter," said Kathleen Evans, president of Amcon's wholesale distribution segment.

"The natural foods segment is particularly sensitive to economic trends. We have been careful to maintain a high level of customer service during the downturn because we believe this posture fosters consumer loyalty and positions us well as the economy recovers," said Eric Hinkefent, president of Amcon's retail health food segment.

"Our financial focus continues to be centered on balance sheet liquidity. We ended the quarter with total stockholders' equity of $35.5 million and consolidated debt of $23.0 million. We are carefully evaluating a number of capital projects related to information technology and foodservice that are designed to enhance our competitive position in the markets we serve," said Andrew Plummer, Amcon's chief financial officer.

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