<PAGE> 1
<TABLE>
REGISTRANT'S 2000 ANNUAL REPORT TO SHAREHOLDERS
FINANCIAL HIGHLIGHTS<F1>:
<CAPTION>
Fiscal Year Ended
----------------- June 30, June 30, June 30, March 28, March 29,
2000 1999 1998<F2> 1997 1996
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Income Statement Data (in thousands,
except share and per share data)
Net sales $1,458,047 $ 815,319 $612,427 $479,524 $425,333
Gross profit 56,422 41,536 30,654 22,810 20,935
Income from operations 22,299 14,842 9,770 5,617 2,810
Net income $ 8,199 $ 6,625 $ 3,942 $ 1,461 $ (704)
Basic earnings per share $ 1.93 $ 1.72 $ 1.18 $ 0.48 $ (0.24)
Diluted earnings per share $ 1.84 $ 1.58 $ 1.07 $ 0.44 $ (0.24)
Basic common shares outstanding 4,240,951 3,846,837 3,345,261 3,033,536 2,971,117
Diluted common shares outstanding 4,549,876 4,219,876 3,766,352 3,588,943 2,971,117
<CAPTION>
June 30, June 30, June 30, March 28, March 29,
2000 1999 1998<F2> 1997 1996
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Balance Sheet Data (in thousands)
Current assets $237,494 $181,824 $153,513 $ 81,901 $ 74,737
Working capital 93,556 28,525 60,549 31,239 31,023
Total assets 294,419 236,990 178,371 108,034 100,736
Long-term debt 99,647 40,449 61,156 41,530 43,190
Stockholders' equity 45,265 40,887 20,719 12,988 11,426
<FN>
<F1> Restated to reflect the change from the LIFO method of inventory accounting to the FIFO method.
<F2> Fiscal year end changed to June 30.
</TABLE>
<TABLE>
NET SALES [BAR GRAPH]
<CAPTION>
'96 '97 '98 '99 '00
----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
425,333 479,524 612,427 815,319 1,458,047
STOCKHOLDERS' EQUITY [BAR GRAPH]
<CAPTION>
'96 '97 '98 '99 '00
----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
11,426 12,988 20,719 40,887 45,265
INCOME FROM OPERATIONS [BAR GRAPH]
<CAPTION>
'96 '97 '98 '99 '00
----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
2,810 5,617 9,770 14,842 22,299
GROSS PROFIT [BAR GRAPH]
<CAPTION>
'96 '97 '98 '99 '00
----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
20,935 22,810 30,654 41,536 56,422
</TABLE>
98
<PAGE> 2
PRICE RANGE PER COMMON SHARE:
The Company's common stock (symbol: "DKWD") is traded on the NASDAQ national
market. The number of beneficial holders of the Company's common stock is
approximately 1,700. Set forth below are the high and low transaction prices
as reported by the NASDAQ stock market for the periods indicated. Such prices
reflect interdealer prices, without retail markup, markdown, or commission:
<TABLE>
<CAPTION>
Low High
--- ----
<S> <C> <C>
2000
----
First Quarter 22 1/8 25 7/8
Second Quarter 13 1/2 24
Third Quarter 10 1/2 18
Fourth Quarter 7 1/2 12 1/4
1999
----
First Quarter 12 1/2 25 3/4
Second Quarter 15 7/8 27 1/4
Third Quarter 22 27 3/8
Fourth Quarter 19 13/16 25
</TABLE>
CORPORATE OFFICES:
D&K Healthcare Resources, Inc.
8000 Maryland Ave. Suite 920
St. Louis, Missouri 63105
(888) 727-3485
(314) 727-3485
Fax: (314) 727-5759
web: www.dkwd.com
TRANSFER AGENT REGISTRAR:
Harris Trust & Savings Bank
111 West Monroe Street
Chicago, Illinois 60690
(312) 461-2121
AUDITORS:
Arthur Andersen LLP
St. Louis, Missouri
COUNSEL:
Armstrong Teasdale LLP
St. Louis, Missouri
FORM 10-K:
Copies of form 10-K filed by D&K Healthcare Resources, Inc. for the year
ended June 30, 2000, are available without charge upon request. Requests
should be directed to the Company's corporate office address, marked
attention: Investor Relations.
99
<PAGE> 3
FORWARD-LOOKING STATEMENTS:
The forward-looking statements contained in this document are inherently
subject to risks and uncertainties. D&K's actual results could differ
materially from those currently anticipated due to a number of factors,
including without limitation, the competitive nature of the wholesale
pharmaceutical drug distribution industry, the evolving business and
regulatory environment of the healthcare industry in which D&K operates and
other factors set forth in reports and other documents filed by D&K with the
Securities and Exchange Commission from time to time.
ANNUAL MEETING:
The annual meeting of stockholders will be held at 10:00 a.m. Thursday,
November 9, 2000, in The Ritz-Carlton, 100 Carondelet Plaza, St. Louis, MO.
100
