DIT AMCON Distributing Co

AMCON Distributing Company (“AMCON”) (NYSE American: DIT), an Omaha, Nebraska based consumer products company, is pleased to announce fully diluted earnings per share of $6.48 on net income available to common shareholders of $3.7 million for its third fiscal quarter ended June 30, 2021.

“We are pleased with our results for the third fiscal quarter. Our Management Team and Associates’ central focus is on delivering a consistent level of high quality service to our customers in this challenging economic environment,” said Christopher H. Atayan, AMCON’s Chairman and Chief Executive Officer. Mr. Atayan further noted, “AMCON continues to seek out acquisition opportunities for Convenience and Food Service Distributors who want to align with our growing platform and customer centric management philosophy.”

The wholesale distribution segment reported revenues of $426.6 million and operating income of $6.3 million for the third quarter of fiscal 2021. The retail health food segment reported revenues of $11.7 million and operating income of $0.6 million for the third quarter of fiscal 2021.

“Ongoing supply chain disruptions at consumer packaged goods companies have impacted product availability across all markets including the convenience distribution industry in which our Company operates. Additionally, the United States is experiencing an acute workforce shortage which has created a hyper-competitive wage environment which has impacted the Company’s operations. Our customer base continues to grow geographically and AMCON is deploying the capital and human resources necessary to support our customers’ growth in a collaborative fashion,” said Andrew C. Plummer, AMCON’s President and Chief Operating Officer. Mr. Plummer further noted, “We are actively searching for facilities in, and adjacent to, the geographic markets we serve.”

Charles J. Schmaderer, AMCON’s Chief Financial Officer said, “AMCON is pleased with the progress of our strategic investment in Team Sledd, LLC. In addition, AMCON ended the quarter with $71.4 million of shareholders’ equity and we continue to diligently focus on maintaining high levels of liquidity in our business to support operations and our growth initiatives.”

AMCON’s Healthy Edge Retail Group plays an important role in the health and wellness of the communities it serves. Throughout the pandemic, our management team has worked diligently to offer a continuous and safe shopping experience for customers. Our long term relationship with the organic/natural products vendor community has enabled our stores to meet the demands of our customers for total wellness solutions. Our strategy is to offer a broad selection of the highest quality organic and natural merchandise available supported by a high degree of customer service not found at other big box retailers within our industry.

AMCON is a leading wholesale distributor of consumer products, including beverages, candy, tobacco, groceries, foodservice, frozen and chilled foods, and health and beauty care products with locations in Illinois, Missouri, Nebraska, North Dakota, South Dakota and Tennessee. AMCON also operates twenty (20) health and natural product retail stores in the Midwest and Florida. The retail stores operate under the names Akin’s Natural Foods www.akins.com in its Midwest market, and Chamberlin's Natural Foods www.chamberlins.com and Earth Origins Market www.earthoriginsmarket.com in its Florida market.

This news release contains forward-looking statements that are subject to risks and uncertainties and which reflect management's current beliefs and estimates of future economic circumstances, industry conditions, Company performance and financial results. A number of factors could affect the future results of the Company and could cause those results to differ materially from those expressed in the Company's forward-looking statements including, without limitation, availability of sufficient cash resources to conduct its business and meet its capital expenditures needs and the other factors described under Item 1.A. of the Company’s Annual Report on Form 10-K. Moreover, past financial performance should not be considered a reliable indicator of future performance. Accordingly, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 with respect to all such forward-looking statements.

Visit AMCON Distributing Company's web site at: www.amcon.com

AMCON Distributing Company and Subsidiaries

Condensed Consolidated Balance Sheets

June 30, 2021 and September 30, 2020

 

 

 

 

 

 

 

 

 

June

 

September

 

 

2021

 

2020

 

 

(Unaudited)

 

 

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash

 

$

699,895

 

 

$

661,195

 

Accounts receivable, less allowance for doubtful accounts of $0.9 million at June 2021 and September 2020

 

 

36,526,770

 

 

 

34,278,429

 

Inventories, net

 

 

95,640,441

 

 

 

98,971,773

 

Prepaid and other current assets

 

 

5,769,066

 

 

 

2,091,645

 

Total current assets

 

 

138,636,172

 

 

 

136,003,042

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

16,425,171

 

 

 

17,497,274

 

Operating lease right-of-use assets, net

 

 

17,148,745

 

 

 

18,936,126

 

Note receivable

 

 

3,500,000

 

 

 

3,500,000

 

Goodwill

 

 

4,436,950

 

 

 

4,436,950

 

Other intangible assets, net

 

 

500,000

 

 

 

500,000

 

Equity method investment

 

 

7,784,753

 

 

 

6,744,095

 

Other assets

 

 

349,139

 

 

 

383,786

 

Total assets

 

$

188,780,930

 

 

$

188,001,273

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

24,788,839

 

 

$

22,108,299

 

Accrued expenses

 

 

11,169,530

 

 

 

8,306,160

 

Accrued wages, salaries and bonuses

 

 

3,839,072

 

 

 

4,761,020

 

Income taxes payable

 

 

495,860

 

 

 

567,408

 

Current operating lease liabilities

 

 

5,503,940

 

 

 

5,607,098

 

Current maturities of long-term debt

 

 

555,832

 

 

 

516,850

 

Total current liabilities

 

 

46,353,073

 

 

 

41,866,835

 

 

 

 

 

 

 

 

Credit facility

 

 

51,491,984

 

 

 

61,971,682

 

Deferred income tax liability, net

 

 

1,585,882

 

 

 

1,806,575

 

Long-term operating lease liabilities

 

 

12,000,823

 

 

 

14,028,606

 

Long-term debt, less current maturities

 

 

5,196,596

 

 

 

2,608,794

 

Other long-term liabilities

 

 

757,387

 

 

 

927,241

 

 

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

 

 

Preferred stock, $.01 par value, 1,000,000 shares authorized

 

 

—

 

 

 

—

 

Common stock, $.01 par value, 3,000,000 shares authorized, 551,369 shares outstanding at June 2021 and 537,715 shares outstanding at September 2020

 

 

8,834

 

 

 

8,697

 

Additional paid-in capital

 

 

24,943,292

 

 

 

24,282,058

 

Retained earnings

 

 

77,310,346

 

 

 

71,362,334

 

Treasury stock at cost

 

 

(30,867,287

)

 

 

(30,861,549

)

Total shareholders’ equity

 

 

71,395,185

 

 

 

64,791,540

 

Total liabilities and shareholders’ equity

 

$

188,780,930

 

 

$

188,001,273

 

AMCON Distributing Company and Subsidiaries

Condensed Consolidated Unaudited Statements of Operations

for the three and nine months ended June 30, 2021 and 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended June

 

For the nine months ended June

 

 

2021

 

2020

 

2021

 

2020

Sales (including excise taxes of $104.9 million and $103.6 million, and $297.4 million and $285.1 million, respectively)

 

$

438,313,030

 

 

$

396,854,324

 

 

$

1,221,571,294

 

 

$

1,094,841,943

 

Cost of sales

 

 

412,771,324

 

 

 

375,202,044

 

 

 

1,149,594,823

 

 

 

1,031,651,499

 

Gross profit

 

 

25,541,706

 

 

 

21,652,280

 

 

 

71,976,471

 

 

 

63,190,444

 

Selling, general and administrative expenses

 

 

20,501,117

 

 

 

18,377,641

 

 

 

58,123,100

 

 

 

55,843,266

 

Depreciation

 

 

741,180

 

 

 

801,683

 

 

 

2,295,390

 

 

 

2,318,045

 

 

 

 

21,242,297

 

 

 

19,179,324

 

 

 

60,418,490

 

 

 

58,161,311

 

Operating income

 

 

4,299,409

 

 

 

2,472,956

 

 

 

11,557,981

 

 

 

5,029,133

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other expense (income):

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

329,929

 

 

 

461,581

 

 

 

1,016,902

 

 

 

1,321,267

 

Other (income), net

 

 

(43,437

)

 

 

(42,525

)

 

 

(169,525

)

 

 

(79,222

)

 

 

 

286,492

 

 

 

419,056

 

 

 

847,377

 

 

 

1,242,045

 

Income from operations before income taxes

 

 

4,012,917

 

 

 

2,053,900

 

 

 

10,710,604

 

 

 

3,787,088

 

Income tax expense

 

 

1,076,000

 

 

 

586,000

 

 

 

2,916,000

 

 

 

1,168,000

 

Equity method investment earnings, net of tax

 

 

754,293

 

 

 

111,666

 

 

 

1,403,124

 

 

 

111,666

 

Net income available to common shareholders

 

$

3,691,210

 

 

$

1,579,566

 

 

$

9,197,728

 

 

$

2,730,754

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share available to common shareholders

 

$

6.69

 

 

$

2.79

 

 

$

16.71

 

 

$

4.84

 

Diluted earnings per share available to common shareholders

 

$

6.48

 

 

$

2.77

 

 

$

16.37

 

 

$

4.79

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic weighted average shares outstanding

 

 

551,369

 

 

 

565,483

 

 

 

550,276

 

 

 

564,578

 

Diluted weighted average shares outstanding

 

 

569,481

 

 

 

569,902

 

 

 

561,940

 

 

 

569,873

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends declared and paid per common share

 

$

0.18

 

 

$

0.18

 

 

$

5.54

 

 

$

0.82

 

AMCON Distributing Company and Subsidiaries

Condensed Consolidated Unaudited Statements of Shareholders’ Equity

for the three and nine months ended June 30, 2021 and 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

 

 

Common Stock

 

Treasury Stock

 

Paid-in

 

Retained

 

 

 

 

 

Shares

 

Amount

 

Shares

 

Amount

 

Capital

 

Earnings

 

Total

THREE MONTHS ENDED JUNE 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, April 1, 2020

 

869,367

 

$

8,692

 

(303,841

)

 

$

(28,863,654

)

 

$

24,224,145

 

$

67,184,900

 

 

$

62,554,083

 

Dividends on common stock, $0.18 per share

 

—

 

 

—

 

—

 

 

 

—

 

 

 

—

 

 

(107,091

)

 

 

(107,091

)

Compensation expense and issuance of stock in connection with equity-based awards

 

500

 

 

5

 

—

 

 

 

—

 

 

 

26,728

 

 

—

 

 

 

26,733

 

Repurchase of common stock

 

—

 

 

—

 

(1,148

)

 

 

(68,725

)

 

 

—

 

 

—

 

 

 

(68,725

)

Net income

 

—

 

 

—

 

—

 

 

 

—

 

 

 

—

 

 

1,579,566

 

 

 

1,579,566

 

Balance, June 30, 2020

 

869,867

 

$

8,697

 

(304,989

)

 

$

(28,932,379

)

 

$

24,250,873

 

$

68,657,375

 

 

$

63,984,566

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

THREE MONTHS ENDED JUNE 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, April 1, 2021

 

883,589

 

$

8,834

 

(332,220

)

 

$

(30,867,287

)

 

$

24,917,765

 

$

73,724,722

 

 

$

67,784,034

 

Dividends on common stock, $0.18 per share

 

—

 

 

—

 

—

 

 

 

—

 

 

 

—

 

 

(105,586

)

 

 

(105,586

)

Compensation expense and issuance of stock in connection with equity-based awards

 

—

 

 

—

 

—

 

 

 

—

 

 

 

25,527

 

 

—

 

 

 

25,527

 

Repurchase of common stock

 

—

 

 

—

 

—

 

 

 

—

 

 

 

—

 

 

—

 

 

 

—

 

Net income

 

—

 

 

—

 

—

 

 

 

—

 

 

 

—

 

 

3,691,210

 

 

 

3,691,210

 

Balance, June 30, 2021

 

883,589

 

$

8,834

 

(332,220

)

 

$

(30,867,287

)

 

$

24,943,292

 

$

77,310,346

 

 

$

71,395,185

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

 

 

Common Stock

 

Treasury Stock

 

Paid-in

 

Retained

 

 

 

 

 

Shares

 

Amount

 

Shares

 

Amount

 

Capital

 

Earnings

 

Total

NINE MONTHS ENDED JUNE 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, October 1, 2019

 

856,039

 

$

8,561

 

(303,425

)

 

$

(28,831,855

)

 

$

23,165,639

 

$

66,414,397

 

 

$

60,756,742

 

Dividends on common stock, $0.82 per share

 

—

 

 

—

 

—

 

 

 

—

 

 

 

—

 

 

(487,776

)

 

 

(487,776

)

Compensation expense and issuance of stock in connection with equity-based awards

 

13,828

 

 

136

 

—

 

 

 

—

 

 

 

1,085,234

 

 

—

 

 

 

1,085,370

 

Repurchase of common stock

 

—

 

 

—

 

(1,564

)

 

 

(100,524

)

 

 

—

 

 

—

 

 

 

(100,524

)

Net income

 

—

 

 

—

 

—

 

 

 

—

 

 

 

—

 

 

2,730,754

 

 

 

2,730,754

 

Balance, June 30, 2020

 

869,867

 

$

8,697

 

(304,989

)

 

$

(28,932,379

)

 

$

24,250,873

 

$

68,657,375

 

 

$

63,984,566

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NINE MONTHS ENDED JUNE 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, October 1, 2020

 

869,867

 

$

8,697

 

(332,152

)

 

$

(30,861,549

)

 

$

24,282,058

 

$

71,362,334

 

 

$

64,791,540

 

Dividends on common stock, $5.54 per share

 

—

 

 

—

 

—

 

 

 

—

 

 

 

—

 

 

(3,249,716

)

 

 

(3,249,716

)

Compensation expense and issuance of stock in connection with equity-based awards

 

13,722

 

 

137

 

—

 

 

 

—

 

 

 

661,234

 

 

—

 

 

 

661,371

 

Repurchase of common stock

 

—

 

 

—

 

(68

)

 

 

(5,738

)

 

 

—

 

 

—

 

 

 

(5,738

)

Net income

 

—

 

 

—

 

—

 

 

 

—

 

 

 

—

 

 

9,197,728

 

 

 

9,197,728

 

Balance, June 30, 2021

 

883,589

 

$

8,834

 

(332,220

)

 

$

(30,867,287

)

 

$

24,943,292

 

$

77,310,346

 

 

$

71,395,185

 

AMCON Distributing Company and Subsidiaries

Condensed Consolidated Unaudited Statements of Cash Flows

for the nine months ended June 30, 2021 and 2020

 

 

 

 

 

 

 

 

 

June

 

June

 

 

2021

 

2020

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

Net income

 

$

9,197,728

 

 

$

2,730,754

 

Adjustments to reconcile net income from operations to net cash flows from (used in) operating activities:

 

 

 

 

 

 

Depreciation

 

 

2,295,390

 

 

 

2,318,045

 

Equity method investment earnings, net of tax

 

 

(1,403,124

)

 

 

(111,666

)

(Gain) loss on sales of property and equipment

 

 

(8,057

)

 

 

17,042

 

Equity-based compensation

 

 

1,819,272

 

 

 

765,704

 

Deferred income taxes

 

 

(220,693

)

 

 

(2,862

)

Provision for losses on doubtful accounts

 

 

86,000

 

 

 

349,000

 

Inventory allowance

 

 

238,148

 

 

 

182,218

 

Changes in assets and liabilities:

 

 

 

 

 

 

Accounts receivable

 

 

(2,334,341

)

 

 

(9,309,422

)

Inventories

 

 

3,093,184

 

 

 

20,152,080

 

Prepaid and other current assets

 

 

(3,677,421

)

 

 

(373,414

)

Equity method investment distributions

 

 

828,466

 

 

 

—

 

Other assets

 

 

34,647

 

 

 

(126,364

)

Accounts payable

 

 

2,680,540

 

 

 

2,040,386

 

Accrued expenses and accrued wages, salaries and bonuses

 

 

804,983

 

 

 

(1,424,472

)

Other long-term liabilities

 

 

(169,854

)

 

 

125,744

 

Income taxes payable and receivable

 

 

(537,548

)

 

 

794,027

 

Net cash flows from (used in) operating activities

 

 

12,727,320

 

 

 

18,126,800

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

Purchase of property and equipment

 

 

(1,254,958

)

 

 

(2,901,134

)

Proceeds from sales of property and equipment

 

 

39,728

 

 

 

16,600

 

Investment in equity method investee

 

 

—

 

 

 

(6,500,000

)

Issuance of note receivable

 

 

—

 

 

 

(3,500,000

)

Net cash flows from (used in) investing activities

 

 

(1,215,230

)

 

 

(12,884,534

)

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

Borrowings under revolving credit facility

 

 

1,217,375,073

 

 

 

1,083,878,207

 

Repayments under revolving credit facility

 

 

(1,227,854,771

)

 

 

(1,087,870,919

)

Proceeds from borrowings on long-term debt

 

 

3,000,000

 

 

 

—

 

Principal payments on long-term debt

 

 

(373,216

)

 

 

(397,936

)

Proceeds from exercise of stock options

 

 

—

 

 

 

25,750

 

Repurchase of common stock

 

 

(5,738

)

 

 

(100,524

)

Dividends on common stock

 

 

(3,249,716

)

 

 

(487,776

)

Settlement and withholdings of equity-based awards

 

 

(365,022

)

 

 

(30,208

)

Net cash flows from (used in) financing activities

 

 

(11,473,390

)

 

 

(4,983,406

)

Net change in cash

 

 

38,700

 

 

 

258,860

 

Cash, beginning of period

 

 

661,195

 

 

 

337,704

 

Cash, end of period

 

$

699,895

 

 

$

596,564

 

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

Cash paid during the period for interest

 

$

1,031,457

 

 

$

1,387,381

 

Cash paid during the period for income taxes

 

 

3,667,036

 

 

 

376,835

 

 

 

 

 

 

 

 

Supplemental disclosure of non-cash information:

 

 

 

 

 

 

Equipment acquisitions classified in accounts payable

 

$

—

 

 

$

100,424

 

Issuance of common stock in connection with the vesting and exercise of equity-based awards

 

 

949,812

 

 

 

990,653

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20210719005750/en/

Christopher H. Atayan AMCON Distributing Company Ph 402-331-3727