SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES ACT OF 1934 Date of Report (Date of earliest event reported) March 23, 2001 --------------------------------------------------------------- AMCON DISTRIBUTING COMPANY -------------------------- (Exact name of registrant as specified in its charter) DELAWARE 0-24708 47-0702918 ------------------------------------------------------------------------------ (State or other (Commission (IRS Employer jurisdiction of File Number) Identification No.) incorporation) 10228 "L" Street, Omaha, NE 68127 --------------------------------- (Address of principal executive offices) (Zip Code) (402) 331-3727 -------------- (Registrant's telephone number, including area code) Not Applicable -------------- (Former name or former address, if changed since last report) ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS On March 23, 2001, the AMCON Distributing Company ("AMCON" or the "Company") completed the sale of the health and natural foods distribution business and related net assets of Food For Health Company Inc. ("FFH"), its wholly-owned subsidiary, to Tree of Life, Inc. ("TOL")for approximately $8.9 million in cash, subject to certain adjustments as set forth in the Assets Purchase Agreement. The health and natural foods distribution business operated out of two distribution facilities located in Phoenix, AZ and Melbourne, FL. The Company retains the lease obligations for the two distribution facilities, but is reimbursed for the facilities cost for a six month period under a separate access agreement with TOL. Subsequent to the six month period, AMCON is responsible for the remaining lease obligations for the two distribution facilities. The Company has reflected an adjustment of approximately $1.1 million in the accompanying pro forma condensed consolidated balance sheet to record a long-term liability for its estimated exposure in connection with these obligations. Consideration was determined by arms length negotiations. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS (b) Pro Forma Financial Information The following pro forma unaudited condensed consolidated financial data of AMCON reflects the pro forma impact on the Company's financial position and results of operations of the sale of FFH. Pro forma condensed consolidated statements of income are presented for the three months ended December 31, 2000 and 1999 and for the three years ended September 30, 2000, 1999 and 1998, reflecting pro forma adjustments as if the sale was consummated at the beginning of each of the periods presented. A pro forma condensed consolidated balance sheet is presented as of December 31, 2000, reflecting pro forma adjustments as if the sale was consummated on that date. Certain Management assumptions and adjustments are described in the accompanying notes. The following pro forma financial information is not necessarily indicative of the actual financial position or results of operations that would have resulted had the sale been consummated on the dates assumed, nor is it necessarily indicative of future operating results. AMCON Distributing Company and Subsidiaries Pro Forma Condensed Consolidated Statements of Income Three months ended December 31, 2000 (Unaudited) Historical Pro Forma December 31, Pro Forma December 31, 2000 Adjustments 2000 ------------ ------------ ------------ Sales $109,251,278 $( 8,228,774) (1) $101,022,504 Cost of sales 96,351,902 (5,985,925) (1) 90,365,977 ------------ ----------- ------------ Gross profit 12,899,376 (2,242,849) 10,656,527 Selling, general and administrative expenses 11,190,434 (2,936,439) (1) 268,925 (2) 8,522,920 Depreciation and amortization 628,192 (131,270) (1) 496,922 ------------ ----------- ------------ 11,818,626 (2,798,784) 9,019,842 ------------ ----------- ------------ Income from operations 1,080,750 555,935 1,636,685 Other expense (income): Interest expense 853,549 (139,490) (3) (77,500) (4) 636,559 Other (income) expense (21,234) 11,040 (1) (10,194) ------------ ----------- ------------ 832,315 (205,950) 626,365 ------------ ----------- ------------ Income before taxes 248,435 761,885 1,010,320 Income tax expense 85,641 310,688 (5) 396,329 ------------ ----------- ------------ Net income $ 162,794 $ 451,197 $ 613,991 ============ =========== ============ Earnings per share (diluted) $ 0.06 $ 0.16 $ 0.22 ============ =========== ============ Weighted average shares outstanding (diluted) 2,819,443 2,819,443 2,819,443 ============ =========== ============ AMCON Distributing Company and Subsidiaries Pro Forma Condensed Consolidated Statements of Income Three months ended December 31, 1999 (Unaudited) Historical Pro Forma December 31, Pro Forma December 31, 1999 Adjustments 1999 ------------ ------------ ----------- Sales $112,043,760 $(11,427,664) (1) $100,616,096 Cost of sales 98,085,020 (8,498,975) (1) 89,586,045 ------------ ------------ ----------- Gross profit 13,958,740 (2,928,689) 11,030,051 Selling, general and administrative expenses 10,967,986 (2,762,800) (1) 150,750 (2) 8,355,936 Depreciation and amortization 629,824 ( 118,136) (1) 511,688 ------------ ------------ ----------- 11,597,810 (2,730,186) 8,867,624 ------------ ------------ ----------- Income (loss) from operations 2,360,930 ( 198,503) 2,162,427 Other expense (income): Interest expense 744,602 ( 139,764) (3) ( 72,625) (4) 532,213 Other (income) expense (8,112) ( 7,682) (1) ( 15,794) ------------ ----------- ----------- 736,490 ( 220,071) 516,419 ------------ ----------- ----------- Income before taxes 1,624,440 21,568 1,646,008 Income tax expense 612,197 21,671 (5) 633,868 ------------ ------------ ----------- Net income $ 1,012,243 $ ( 103) $ 1,012,140 ============ ============ =========== Earnings per share (diluted) $ 0.35 $ 0.00 $ 0.35 ============ ============ =========== Weighted average shares outstanding (diluted) 2,864,444 2,864,444 2,864,444 ============ ============ =========== AMCON Distributing Company and Subsidiaries Pro Forma Condensed Consolidated Statements of Income Year ended September 30, 2000 (Unaudited) Historical Pro Forma September 30, Pro Forma September 30, 2000 Adjustments 2000 ------------ ------------ ------------ Sales $466,125,245 $(41,393,914) (1) $424,731,331 Cost of sales 410,511,066 (30,542,869) (1) 379,968,197 ------------ ------------ ------------ Gross profit 55,614,179 (10,851,045) 44,763,134 Selling, general and administrative expenses 45,910,903 (11,479,540) (1) 603,000 (2) 35,034,363 Depreciation and amortization 2,794,996 (585,578) (1) 2,209,418 ------------ ------------ ------------ 48,705,899 (11,462,118) 37,243,781 ------------ ------------ ------------ Income from operations 6,908,280 611,073 7,519,353 Other expense (income): Interest expense 3,048,314 (549,508) (3) (297,000) (4) 2,201,806 Other (income) expense (2,159,995) (87,847) (1) (2,247,842) ------------ ------------ ------------ 888,319 ( 934,355) ( 46,036) ------------ ------------ ------------ Income before taxes 6,019,961 1,545,428 7,565,389 Income tax expense 2,115,522 656,926 (5) 2,772,448 ------------ ------------ ------------ Net income $ 3,904,439 $ 888,502 $ 4,792,941 ============ ============ ============ Earnings per share (diluted) $ 1.37 $ 0.31 $ 1.68 ============ ============ ============ Weighted average shares outstanding (diluted) 2,853,320 2,853,320 2,853,320 ============ ============ ============ AMCON Distributing Company and Subsidiaries Pro Forma Condensed Consolidated Statements of Income Year ended September 30, 1999 (Unaudited) Historical Pro Forma September 30, Pro Forma September 30, 1999 Adjustments 1999 ------------ ------------ ------------ Sales $385,501,178 $(42,637,607) (1) $342,863,571 Cost of sales 343,021,443 (31,952,148) (1) 311,069,295 ------------ ------------ ------------ Gross profit 42,479,735 (10,685,459) 31,794,276 Selling, general and administrative expenses 32,754,406 (10,235,545) (1) 135,600 (2) 22,654,461 Depreciation and amortization 1,861,364 (578,083) (1) 1,283,281 ------------ ----------- ------------ 34,615,770 (10,678,028) 23,937,742 ------------ ------------ ------------ Income (loss) from operations 7,863,965 ( 7,431) 7,856,534 Other expense (income): Interest expense 1,754,837 (297,364) (3) (262,500) (4) 1,194,973 Other (income) expense (72,325) (171,775) (1) (244,100) ------------ ------------ ------------ 1,682,512 (731,639) 950,873 ------------ ------------ ------------ Income before taxes 6,181,453 724,208 6,905,661 Income tax expense 2,345,924 337,041 (5) 2,682,965 ------------ ------------ ------------ Net income $ 3,835,529 $ 387,167 $ 4,222,696 ============ ============ ============ Earnings per share (diluted) $ 1.35 $ 0.13 $ 1.48 ============ ============ ============ Weighted average shares outstanding (diluted) 2,855,419 2,855,419 2,855,419 ============ ============ ============ AMCON Distributing Company and Subsidiaries Pro Forma Condensed Consolidated Statements of Income Year ended September 30, 1998 (Unaudited) Historical Pro Forma September 30, Pro Forma September 30, 1998 Adjustments 1998 ------------ ------------ ------------ Sales $294,281,323 $(31,197,993) (1) $263,083,330 Cost of sales 262,632,767 (23,452,792) (1) 239,179,975 ------------ ------------ ------------ Gross profit 31,648,556 (7,745,201) 23,903,355 Selling, general and administrative expenses 25,088,767 (6,918,383) (1) 18,170,384 Depreciation and amortization 1,120,482 (197,581) (1) 922,901 ------------ ------------ ------------ 26,209,249 (7,115,964) 19,093,285 ------------ ------------ ------------ Income (loss) from operations 5,439,307 (629,237) 4,810,070 Other expense (income): Interest expense 1,814,555 (248,893) (3) (271,000) (4) 1,294,662 Other (income) expense (276,287) (259,522) (535,809) ------------ ------------ ------------ 1,538,268 (779,415) 758,853 ------------ ------------ ------------ Income before taxes 3,901,039 150,178 4,051,217 Income tax expense 1,542,853 88,747 (5) 1,631,600 ------------ ------------ ------------ Net income $ 2,358,186 $ 61,431 $ 2,419,617 ============ ============ ============ Earnings per share (diluted) $ 0.85 $ 0.02 $ 0.87 ============ ============ ============ Weighted average shares outstanding (diluted) 2,788,996 2,788,996 2,788,996 ============ ============ ============ AMCON Distributing Company Notes to Pro Forma Condensed Consolidated Statements of Income Three months ended December 31, 2000 and Years ended September 30, 2000, 1999 and 1998 (1) Adjustment eliminates from consolidated results the amounts contributed by the health and natural foods distribution business. Adjustments do not reflect the net gain or loss on the sale of the health and natural foods distribution business as the resulting gain or loss will not be a component of continuing operations. (2) Adjustment reflects pro forma amount of corporate overhead originally allocated to the health and natural foods distribution business for segment reporting purposes. (3)Adjustment reflects pro forma reduction in interest expense from debt reductions resulting from the use of proceeds from the sale of FFH including repayment of approximately $5.4 million of long-term debt associated with the health and natural foods distribution business. Pro forma adjustments based on actual interest rates incurred during the related periods. (4) Adjustment reflects pro forma reduction in interest expense during the period on $3.5 million of cash proceeds applied to reduce the Company's debt, excluding repayment of debt described in (3) above. Calculations are based on actual interest rates realized during the related periods. (5) Adjustment reflects the pro forma tax effect of the pro forma adjustments discussed in the notes above at FFH's estimated effective tax rate. The difference between FFH's statutory tax rate of 39% and its effective tax rate is attributable to non-deductible goodwill amortization. AMCON Distributing Company and Subsidiaries Pro Forma Condensed Consolidated Balance Sheet December 31, 2000 (Unaudited) Pro Forma Historical Adjustments Pro Forma ------------ ------------ ------------ ASSETS Current assets: Cash $ 1,414,270 - $ 1,414,270 Accounts receivable 17,341,106 (1,886,429) (1) 15,454,677 Inventories 24,528,190 (6,022,201) (1) 18,505,989 Deferred income taxes 1,653,871 ( 136,000) (1) 1,517,871 Other 614,049 ( 225,360) (1) 388,689 ------------ ------------ ------------ Total current assets 45,551,486 (8,269,990) 37,281,496 Fixed assets, net 5,771,799 ( 970,555) (1) 4,801,244 Notes receivable 750,000 - 750,000 Investments 495,062 - 495,062 Other assets 15,172,915 (2,837,522) (1) 12,335,393 ------------ ------------ ------------ $ 67,741,262 $(12,078,067) $ 55,663,195 ============ ============ ============ LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 11,267,770 $ (3,457,339) (1) $ 7,810,431 Accrued expenses 4,092,186 (1,027,116) (1) 3,065,070 Income taxes payable 440,781 - (1) 440,781 Dividends payable 82,137 - 82,137 Current portion of long-term debt 2,830,282 ( 216,000) 2,614,282 Current portion of subordinated debt 906,318 - (2) 906,318 ------------ ----------- ------------ Total current liabilities 19,619,474 (4,700,455) 14,919,019 ------------ ----------- ------------ Other liabilities 1,204,647 1,093,133 (3) 2,297,780 Long-term debt, less current portion 21,251,544 (8,684,000) (2) 12,567,544 Subordinated debt, less current portion 8,735,236 - 8,735,236 Shareholders' equity (as restated): Preferred stock, $.01 par value, 1,000,000 shares authorized, none outstanding - - - Common stock, $.01 par value, 15,000,000 shares authorized, 2,737,881 issued 27,379 - 27,379 Additional paid-in capital 4,122,464 - 4,122,464 Unrealized gain on investments available-for-sale, net of $136,069 tax 223,237 - 223,237 Retained earnings 12,557,281 213,255 (1) 12,770,536 ------------ ----------- ------------ Total shareholders' equity 16,930,361 213,255 17,143,616 ------------ ------------ ------------ $ 67,741,262 $(12,078,067) $ 55,663,195 ============ ============ ============ AMCON Distributing Company Notes to Pro Forma Condensed Consolidated Balance Sheet December 31, 2000 (1) Adjustment eliminates amounts attributable to the health and natural foods distribution business, net of assets and liabilities to be retained. (2) Adjustment reflects the pro forma repayment of debt with the cash proceeds from the buyer, consistent with the intended actual application of cash proceeds after the closing of the transaction. (3) Adjustment reflects the pro forma accrual of approximately $1.1 million for the Company's estimated exposure under the lease obligations that will be retained by AMCON in connection with the two FFH distribution facilities. (c) Exhibits: 2.1 Assets Purchase and Sale Agreement by and between Food For Health Company, Inc, AMCON Distributing Company and Tree of Life, Inc. dated March 8, 2001 2.2 Amendment to Assets Sale and Purchase Agreement effective March 23, 2001 SIGNATURE Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. AMCON DISTRIBUTING COMPANY (Registrant) Date: April 10, 2001 By : Michael D. James ------------------------- Name: Michael D. James Title: Treasurer & Chief Financial Officer