DIT AMCON Distributing Co

AMCON Distributing Company (“AMCON” or “Company”) (NYSE American: DIT), an Omaha, Nebraska based consumer products company, is pleased to announce fully diluted earnings per share of $5.19 on net income available to common shareholders of $3.0 million for its second fiscal quarter ended March 31, 2022.

“We are pleased with our results for the second fiscal quarter. Our management team has remained highly focused on delivering a consistently superior level of customer service in a highly challenging operating environment,” said Christopher H. Atayan, AMCON’s Chairman and Chief Executive Officer. Mr. Atayan further noted, “AMCON continues to seek out acquisition opportunities for distributors who want to align with our growing platform and customer centric management philosophy.”

The wholesale distribution segment reported revenues of $379.5 million and operating income of $6.3 million for the second quarter of fiscal 2022. The retail health food segment reported revenues of $12.4 million and operating income of $0.7 million for the second quarter of fiscal 2022.

“Ongoing supply chain disruptions with the consumer-packaged goods companies we partner with have impacted product availability across all markets, including the convenience distribution industry in which our company operates. The United States continues to experience an acute workforce shortage which we work diligently to address in our daily operations. Our Annual Spring Trade Show was well received and provides momentum as we enter our summer season. AMCON’s customer base continues to grow geographically and we are deploying the capital and human resources necessary to support this 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, “We are pleased with the ongoing progress of our strategic investment in Team Sledd, LLC. As a core operating principle we continue to maintain consistently high levels of liquidity to support the Company’s various strategic initiatives and long-term growth plan. We ended the quarter with $82.0 million of shareholders’ equity.”

AMCON’s Healthy Edge Retail Group plays an important role in the health and wellness of the communities it serves. 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 refrigerated foods, automotive supplies and health and beauty care products with distribution locations in Illinois, Missouri, Nebraska, North Dakota, South Dakota and Tennessee. AMCON, through its Healthy Edge Retail Group, 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

March 31, 2022 and September 30, 2021

 

 

 

 

 

 

 

 

 

March

 

September

 

 

2022

 

2021

 

 

(Unaudited)

 

 

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash

 

$

527,555

 

 

$

519,591

 

Accounts receivable, less allowance for doubtful accounts of $0.9 million at March 2022 and September 2021

 

 

33,556,601

 

 

 

35,844,163

 

Inventories, net

 

 

90,248,795

 

 

 

95,212,085

 

Income taxes receivable

 

 

670,234

 

 

 

—

 

Prepaid expenses and other current assets

 

 

5,476,104

 

 

 

4,999,125

 

Total current assets

 

 

130,479,289

 

 

 

136,574,964

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

15,282,499

 

 

 

16,012,524

 

Operating lease right-of-use assets, net

 

 

16,280,827

 

 

 

17,846,529

 

Note receivable, net of current portion

 

 

3,325,000

 

 

 

3,325,000

 

Goodwill

 

 

4,436,950

 

 

 

4,436,950

 

Other intangible assets, net

 

 

500,000

 

 

 

500,000

 

Equity method investment

 

 

10,451,386

 

 

 

9,380,343

 

Other assets

 

 

414,120

 

 

 

334,819

 

Total assets

 

$

181,170,071

 

 

$

188,411,129

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

25,601,210

 

 

$

24,235,042

 

Accrued expenses

 

 

9,747,031

 

 

 

11,468,955

 

Accrued wages, salaries and bonuses

 

 

4,011,309

 

 

 

4,489,852

 

Income taxes payable

 

 

—

 

 

 

867,160

 

Current operating lease liabilities

 

 

5,458,358

 

 

 

5,513,390

 

Current maturities of long-term debt

 

 

572,100

 

 

 

561,202

 

Total current liabilities

 

 

45,390,008

 

 

 

47,135,601

 

 

 

 

 

 

 

 

Credit facility

 

 

35,191,547

 

 

 

43,650,865

 

Deferred income tax liability, net

 

 

2,630,427

 

 

 

1,531,228

 

Long-term operating lease liabilities

 

 

11,123,103

 

 

 

12,669,157

 

Long-term debt, less current maturities

 

 

4,765,465

 

 

 

5,054,265

 

Other long-term liabilities

 

 

36,069

 

 

 

757,387

 

 

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

 

 

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

 

 

—

 

 

 

—

 

Common stock, $.01 par value, 3,000,000 shares authorized, 584,789 shares outstanding at March 2022 and 551,369 shares outstanding at September 2021

 

 

9,168

 

 

 

8,834

 

Additional paid-in capital

 

 

26,555,046

 

 

 

24,918,781

 

Retained earnings

 

 

86,336,525

 

 

 

83,552,298

 

Treasury stock at cost

 

 

(30,867,287

)

 

 

(30,867,287

)

Total shareholders’ equity

 

 

82,033,452

 

 

 

77,612,626

 

Total liabilities and shareholders’ equity

 

$

181,170,071

 

 

$

188,411,129

AMCON Distributing Company and Subsidiaries

Condensed Consolidated Unaudited Statements of Operations

for the three and six months ended March 31, 2022 and 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended March

 

For the six months ended March

 

 

2022

 

2021

 

2022

 

2021

Sales (including excise taxes of $89.1 million and $92.0 million, and $186.2 million and $192.5 million, respectively)

 

$

391,888,192

 

 

$

378,513,490

 

 

$

814,459,469

 

 

$

783,258,263

 

Cost of sales

 

 

365,211,270

 

 

 

355,540,704

 

 

 

760,849,885

 

 

 

736,823,498

 

Gross profit

 

 

26,676,922

 

 

 

22,972,786

 

 

 

53,609,584

 

 

 

46,434,765

 

Selling, general and administrative expenses

 

 

21,915,351

 

 

 

19,022,167

 

 

 

44,306,090

 

 

 

37,621,983

 

Depreciation

 

 

818,222

 

 

 

779,925

 

 

 

1,602,467

 

 

 

1,554,210

 

 

 

 

22,733,573

 

 

 

19,802,092

 

 

 

45,908,557

 

 

 

39,176,193

 

Operating income

 

 

3,943,349

 

 

 

3,170,694

 

 

 

7,701,027

 

 

 

7,258,572

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other expense (income):

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

244,920

 

 

 

310,543

 

 

 

567,018

 

 

 

686,973

 

Other (income), net

 

 

(60,958

)

 

 

(84,265

)

 

 

(101,068

)

 

 

(126,088

)

 

 

 

183,962

 

 

 

226,278

 

 

 

465,950

 

 

 

560,885

 

Income from operations before income taxes

 

 

3,759,387

 

 

 

2,944,416

 

 

 

7,235,077

 

 

 

6,697,687

 

Income tax expense

 

 

1,345,000

 

 

 

829,000

 

 

 

2,590,000

 

 

 

1,840,000

 

Equity method investment earnings, net of tax

 

 

591,795

 

 

 

313,492

 

 

 

1,362,161

 

 

 

648,831

 

Net income available to common shareholders

 

$

3,006,182

 

 

$

2,428,908

 

 

$

6,007,238

 

 

$

5,506,518

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share available to common shareholders

 

$

5.29

 

 

$

4.41

 

 

$

10.62

 

 

$

10.02

 

Diluted earnings per share available to common shareholders

 

$

5.19

 

 

$

4.33

 

 

$

10.33

 

 

$

9.87

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic weighted average shares outstanding

 

 

567,889

 

 

 

551,369

 

 

 

565,694

 

 

 

549,729

 

Diluted weighted average shares outstanding

 

 

578,751

 

 

 

560,941

 

 

 

581,328

 

 

 

557,741

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends paid per common share

 

$

0.18

 

 

$

5.18

 

 

$

5.36

 

 

$

5.36

 

AMCON Distributing Company and Subsidiaries

Condensed Consolidated Unaudited Statements of Shareholders’ Equity

for the three and six months ended March 31, 2022 and 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

 

 

Common Stock

 

Treasury Stock

 

Paid-in

 

Retained

 

 

 

 

 

Shares

 

Amount

 

Shares

 

Amount

 

Capital

 

Earnings

 

Total

THREE MONTHS ENDED MARCH 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, January 1, 2021

 

883,589

 

$

8,834

 

(332,220

)

 

$

(30,867,287

)

 

$

25,007,239

 

 

$

71,401,400

 

 

$

65,550,186

 

Dividends on common stock, $0.18 per share

 

—

 

 

—

 

—

 

 

 

—

 

 

 

—

 

 

 

(105,586

)

 

 

(105,586

)

Compensation expense and settlement of equity-based awards

 

—

 

 

—

 

—

 

 

 

—

 

 

 

(89,474

)

 

 

—

 

 

 

(89,474

)

Repurchase of common stock

 

—

 

 

—

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Net income

 

—

 

 

—

 

—

 

 

 

—

 

 

 

—

 

 

 

2,428,908

 

 

 

2,428,908

 

Balance, March 31, 2021

 

883,589

 

$

8,834

 

(332,220

)

 

$

(30,867,287

)

 

$

24,917,765

 

 

$

73,724,722

 

 

$

67,784,034

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

THREE MONTHS ENDED MARCH 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, January 1, 2022

 

915,009

 

$

9,148

 

(332,220

)

 

$

(30,867,287

)

 

$

26,999,735

 

 

$

83,438,578

 

 

$

79,580,174

 

Dividends on common stock, $0.18 per share

 

—

 

 

—

 

—

 

 

 

—

 

 

 

—

 

 

 

(108,235

)

 

 

(108,235

)

Compensation expense and settlement of equity-based awards

 

2,000

 

 

20

 

—

 

 

 

—

 

 

 

(444,689

)

 

 

—

 

 

 

(444,669

)

Repurchase of common stock

 

—

 

 

—

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Net income

 

—

 

 

—

 

—

 

 

 

—

 

 

 

—

 

 

 

3,006,182

 

 

 

3,006,182

 

Balance, March 31, 2022

 

917,009

 

$

9,168

 

(332,220

)

 

$

(30,867,287

)

 

$

26,555,046

 

 

$

86,336,525

 

 

$

82,033,452

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

 

 

Common Stock

 

Treasury Stock

 

Paid-in

 

Retained

 

 

 

 

 

Shares

 

Amount

 

Shares

 

Amount

 

Capital

 

Earnings

 

Total

SIX MONTHS ENDED MARCH 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, $5.36 per share

 

—

 

 

—

 

—

 

 

 

—

 

 

 

—

 

 

 

(3,144,130

)

 

 

(3,144,130

)

Compensation expense and settlement of equity-based awards

 

13,722

 

 

137

 

—

 

 

 

—

 

 

 

635,707

 

 

 

—

 

 

 

635,844

 

Repurchase of common stock

 

—

 

 

—

 

(68

)

 

 

(5,738

)

 

 

—

 

 

 

—

 

 

 

(5,738

)

Net income

 

—

 

 

—

 

—

 

 

 

—

 

 

 

—

 

 

 

5,506,518

 

 

 

5,506,518

 

Balance, March 31, 2021

 

883,589

 

$

8,834

(332,220

)

 

$

(30,867,287

)

 

$

24,917,765

 

 

$

73,724,722

 

 

$

67,784,034

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SIX MONTHS ENDED MARCH 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, October 1, 2021

 

883,589

 

$

8,834

(332,220

)

 

$

(30,867,287

)

 

$

24,918,781

 

 

$

83,552,298

 

 

$

77,612,626

 

Dividends on common stock, $5.36 per share

 

—

 

 

—

 

—

 

 

 

—

 

 

 

—

 

 

 

(3,223,011

)

 

 

(3,223,011

)

Compensation expense and settlement of equity-based awards

 

33,420

 

 

334

 

—

 

 

 

—

 

 

 

1,636,265

 

 

 

—

 

 

 

1,636,599

 

Repurchase of common stock

 

—

 

 

—

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Net income

 

—

 

 

—

 

—

 

 

 

—

 

 

 

—

 

 

 

6,007,238

 

 

 

6,007,238

 

Balance, March 31, 2022

 

917,009

 

$

9,168

(332,220

)

 

$

(30,867,287

)

 

$

26,555,046

 

 

$

86,336,525

 

 

$

82,033,452

 

AMCON Distributing Company and Subsidiaries

Condensed Consolidated Unaudited Statements of Cash Flows

for the six months ended March 31, 2022 and 2021

 

 

 

 

 

 

 

 

 

March

 

March

 

 

2022

 

2021

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

Net income

 

$

6,007,238

 

 

$

5,506,518

 

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

 

 

 

 

 

 

Depreciation

 

 

1,602,467

 

 

 

1,554,210

 

Equity method investment earnings, net of tax

 

 

(1,362,161

)

 

 

(648,831

)

(Gain) loss on sales of property and equipment

 

 

(76,220

)

 

 

(1,374

)

Equity-based compensation

 

 

1,208,655

 

 

 

833,624

 

Deferred income taxes

 

 

1,099,199

 

 

 

48,248

 

Provision for losses on doubtful accounts

 

 

(3,000

)

 

 

5,000

 

Inventory allowance

 

 

155,534

 

 

 

110,769

 

Changes in assets and liabilities:

 

 

 

 

 

 

Accounts receivable

 

 

2,290,562

 

 

 

1,390,027

 

Inventories

 

 

4,807,756

 

 

 

17,772,604

 

Prepaid and other current assets

 

 

(651,979

)

 

 

(4,096,452

)

Equity method investment distributions

 

 

744,118

 

 

 

—

 

Other assets

 

 

(79,301

)

 

 

23,327

 

Accounts payable

 

 

1,465,370

 

 

 

429,389

 

Accrued expenses and accrued wages, salaries and bonuses

 

 

(700,748

)

 

 

(610,589

)

Other long-term liabilities

 

 

(721,318

)

 

 

(169,854

)

Income taxes payable and receivable

 

 

(1,990,394

)

 

 

(867,112

)

Net cash flows from (used in) operating activities

 

 

13,795,778

 

 

 

21,279,504

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

Purchase of property and equipment

 

 

(974,424

)

 

 

(720,567

)

Proceeds from sales of property and equipment

 

 

79,000

 

 

 

10,938

 

Principal payment received on note receivable

 

 

175,000

 

 

 

—

 

Net cash flows from (used in) investing activities

 

 

(720,424

)

 

 

(709,629

)

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

Borrowings under revolving credit facility

 

 

819,125,190

 

 

 

771,182,879

 

Repayments under revolving credit facility

 

 

(827,584,508

)

 

 

(791,045,384

)

Proceeds from borrowings on long-term debt

 

 

—

 

 

 

3,000,000

 

Principal payments on long-term debt

 

 

(277,902

)

 

 

(237,566

)

Proceeds from exercise of stock options

 

 

173,590

 

 

 

—

 

Repurchase of common stock

 

 

—

 

 

 

(5,738

)

Dividends on common stock

 

 

(3,223,011

)

 

 

(3,144,130

)

Settlement and withholdings of equity-based awards

 

 

(1,280,749

)

 

 

(365,022

)

Net cash flows from (used in) financing activities

 

 

(13,067,390

)

 

 

(20,614,961

)

Net change in cash

 

 

7,964

 

 

 

(45,086

)

Cash, beginning of period

 

 

519,591

 

 

 

661,195

 

Cash, end of period

 

$

527,555

 

 

$

616,109

 

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

Cash paid during the period for interest

 

$

582,394

 

 

$

690,134

 

Cash paid during the period for income taxes

 

 

3,481,196

 

 

 

2,658,865

 

 

 

 

 

 

 

 

Supplemental disclosure of non-cash information:

 

 

 

 

 

 

Equipment acquisitions classified in accounts payable

 

$

29,047

 

 

$

16,230

 

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

 

 

2,280,783

 

 

 

949,812

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220418005427/en/

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