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 $10.27 on net income available to common shareholders of $6.0 million for its third fiscal quarter ended June 30, 2022.

“We are pleased with our results for the third fiscal quarter. Our strategic plan, with its consistent focus on customer service, has furthered AMCON’s industry leadership 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 convenience and food service distributors who want to align with the Company’s growing platform and customer centric management philosophy.”

The wholesale distribution segment reported revenues of $539.2 million and operating income of $9.4 million for the third quarter of fiscal 2022 which includes $108.7 million of revenue and $1.6 million of operating income related to the Company’s majority investment in Team Sledd, LLC (“Team Sledd”). The retail health food segment reported revenues of $11.4 million and operating income of $0.2 million for the third quarter of fiscal 2022.

“After a considerable search, we have acquired and are developing a new 160,000 square foot distribution center located near Springfield, Missouri to support the growth of our customer base,” said Andrew C. Plummer, AMCON’s President and Chief Operating Officer. Mr. Plummer further noted, “We continue to search for facilities in, and adjacent to, the geographic markets we serve.”

“AMCON acquired a controlling interest in Team Sledd during the period. As a result, we are now consolidating Team Sledd into our financial statements and recorded a $2.4 million gain related to the Company’s ownership interest in Team Sledd. We have been delighted with our partnership with Team Sledd since our initial investment,” said Charles J. Schmaderer, AMCON’s Chief Financial Officer. Mr. Schmaderer further noted, “During the period, AMCON amended and expanded its revolving credit facility with Bank of America and BMO Harris Bank to support strategic growth initiatives including the development of our new warehouse facility near Springfield, Missouri. As a core operating principle, we continue to maintain high levels of liquidity and ended the quarter with $99.1 million of consolidated 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, Tennessee and West Virginia. AMCON, through its Healthy Edge Retail Group, operates nineteen (19) 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, 2022 and September 30, 2021

 

 

 

 

 

 

 

 

 

June

 

September

 

 

2022

 

2021

 

 

(Unaudited)

 

 

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash

 

$

600,936

 

 

$

519,591

 

Accounts receivable, less allowance for doubtful accounts of $2.6 million at June 2022 and $0.9 million September 2021

 

 

66,500,582

 

 

 

35,844,163

 

Inventories, net

 

 

142,093,610

 

 

 

95,212,085

 

Income taxes receivable

 

 

468,289

 

 

 

—

 

Prepaid expenses and other current assets

 

 

10,343,497

 

 

 

4,999,125

 

Total current assets

 

 

220,006,914

 

 

 

136,574,964

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

48,452,634

 

 

 

16,012,524

 

Operating lease right-of-use assets, net

 

 

19,672,900

 

 

 

17,846,529

 

Note receivable, net of current portion

 

 

—

 

 

 

3,325,000

 

Goodwill

 

 

5,277,950

 

 

 

4,436,950

 

Other intangible assets, net

 

 

2,135,645

 

 

 

500,000

 

Equity method investment

 

 

—

 

 

 

9,380,343

 

Other assets

 

 

2,749,360

 

 

 

334,819

 

Total assets

 

$

298,295,403

 

 

$

188,411,129

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

40,975,820

 

 

$

24,235,042

 

Accrued expenses

 

 

13,339,837

 

 

 

11,468,955

 

Accrued wages, salaries and bonuses

 

 

7,346,300

 

 

 

4,489,852

 

Income taxes payable

 

 

—

 

 

 

867,160

 

Current operating lease liabilities

 

 

6,204,257

 

 

 

5,513,390

 

Current maturities of long-term debt

 

 

1,204,348

 

 

 

561,202

 

Total current liabilities

 

 

69,070,562

 

 

 

47,135,601

 

 

 

 

 

 

 

 

Credit facilities

 

 

101,228,521

 

 

 

43,650,865

 

Deferred income tax liability, net

 

 

2,938,240

 

 

 

1,531,228

 

Long-term operating lease liabilities

 

 

13,759,819

 

 

 

12,669,157

 

Long-term debt, less current maturities

 

 

12,159,895

 

 

 

5,054,265

 

Other long-term liabilities

 

 

66,694

 

 

 

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 June 2022 and 551,369 shares outstanding at September 2021

 

 

9,168

 

 

 

8,834

 

Additional paid-in capital

 

 

26,729,124

 

 

 

24,918,781

 

Retained earnings

 

 

92,210,760

 

 

 

83,552,298

 

Treasury stock at cost

 

 

(30,867,287

)

 

 

(30,867,287

)

Total parent shareholders’ equity

 

 

88,081,765

 

 

 

77,612,626

 

Non-controlling interest

 

 

10,989,907

 

 

 

—

 

Total shareholders’ equity

 

 

99,071,672

 

 

 

77,612,626

 

Total liabilities and shareholders’ equity

 

$

298,295,403

 

 

$

188,411,129

 

AMCON Distributing Company and Subsidiaries

Condensed Consolidated Unaudited Statements of Operations

for the three and nine months ended June 30, 2022 and 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended June

 

For the nine months ended June

 

 

2022

 

2021

 

2022

 

2021

Sales (including excise taxes of $129.2 million and $104.9 million, and $315.5 million and $297.4 million, respectively)

 

$

550,584,152

 

 

$

438,313,030

 

 

$

1,365,043,621

 

 

$

1,221,571,294

 

Cost of sales

 

 

516,907,540

 

 

 

412,771,324

 

 

 

1,277,757,425

 

 

 

1,149,594,823

 

Gross profit

 

 

33,676,612

 

 

 

25,541,706

 

 

 

87,286,196

 

 

 

71,976,471

 

Selling, general and administrative expenses

 

 

25,862,325

 

 

 

20,501,117

 

 

 

70,168,415

 

 

 

58,123,100

 

Depreciation and amortization

 

 

912,501

 

 

 

741,180

 

 

 

2,514,968

 

 

 

2,295,390

 

 

 

 

26,774,826

 

 

 

21,242,297

 

 

 

72,683,383

 

 

 

60,418,490

 

Operating income

 

 

6,901,786

 

 

 

4,299,409

 

 

 

14,602,813

 

 

 

11,557,981

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other expense (income):

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

655,811

 

 

 

329,929

 

 

 

1,222,829

 

 

 

1,016,902

 

Other (income), net

 

 

(2,417,252

)

 

 

(43,437

)

 

 

(2,518,320

)

 

 

(169,525

)

 

 

 

(1,761,441

)

 

 

286,492

 

 

 

(1,295,491

)

 

 

847,377

 

Income from operations before income taxes

 

 

8,663,227

 

 

 

4,012,917

 

 

 

15,898,304

 

 

 

10,710,604

 

Income tax expense

 

 

2,397,000

 

 

 

1,076,000

 

 

 

4,987,000

 

 

 

2,916,000

 

Equity method investment earnings, net of tax

 

 

307,973

 

 

 

754,293

 

 

 

1,670,133

 

 

 

1,403,124

 

Net income

 

 

6,574,200

 

 

 

3,691,210

 

 

 

12,581,437

 

 

 

9,197,728

 

Less: Net income attributable to non-controlling interest

 

 

(591,369

)

 

 

—

 

 

 

(591,369

)

 

 

—

 

Net income available to common shareholders

 

$

5,982,831

 

 

$

3,691,210

 

 

$

11,990,068

 

 

$

9,197,728

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share available to common shareholders

 

$

10.50

 

 

$

6.69

 

 

$

21.15

 

 

$

16.71

 

Diluted earnings per share available to common shareholders

 

$

10.27

 

 

$

6.48

 

 

$

20.62

 

 

$

16.37

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic weighted average shares outstanding

 

 

569,689

 

 

 

551,369

 

 

 

567,026

 

 

 

550,276

 

Diluted weighted average shares outstanding

 

 

582,370

 

 

 

569,481

 

 

 

581,578

 

 

 

561,940

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends paid per common share

 

$

0.18

 

 

$

0.18

 

 

$

5.54

 

 

$

5.54

 

AMCON Distributing Company and Subsidiaries

Condensed Consolidated Unaudited Statements of Shareholders’ Equity

for the three and nine months ended June 30, 2022 and 2021

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Stock

 

Treasury Stock

 

Additional Paid-in

 

Retained

 

Non-controlling

 

 

 

 

 

Shares

 

Amount

 

Shares

 

Amount

 

Capital

 

Earnings

 

Interest

 

Total

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 settlement of equity-based awards

 

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

 

25,527

 

 

 

—

 

 

 

—

 

 

 

25,527

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

THREE MONTHS ENDED JUNE 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, April 1, 2022

 

 

917,009

 

 

$

9,168

 

 

(332,220

)

 

$

(30,867,287

)

 

$

26,555,046

 

 

$

86,336,525

 

 

$

—

 

 

$

82,033,452

 

Dividends on common stock, $0.18 per share

 

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(108,596

)

 

 

—

 

 

 

(108,596

)

Compensation expense and settlement of equity-based awards

 

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

 

174,078

 

 

 

—

 

 

 

—

 

 

 

174,078

 

Fair value measurement of non-controlling interest

 

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

10,419,138

 

 

 

10,419,138

 

Distributions

 

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(20,600

)

 

 

(20,600

)

Net income

 

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

 

—

 

 

 

5,982,831

 

 

 

591,369

 

 

 

6,574,200

 

Balance, June 30, 2022

 

917,009

 

$

9,168

 

(332,220

)

 

$

(30,867,287

)

 

$

26,729,124

 

$

92,210,760

 

 

$

10,989,907

 

 

$

99,071,672

 

 

 

Common Stock

 

Treasury Stock

 

Additional Paid-in

 

Retained

 

Non-controlling

 

 

 

 

 

Shares

 

Amount

 

Shares

 

Amount

 

Capital

 

Earnings

 

Interest

 

Total

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 settlement of 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NINE MONTHS ENDED JUNE 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, $5.54 per share

 

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(3,331,606

)

 

 

—

 

 

 

(3,331,606

)

Compensation expense and settlement of equity-based awards

 

 

33,420

 

 

 

334

 

 

—

 

 

 

—

 

 

 

1,810,343

 

 

 

—

 

 

 

—

 

 

 

1,810,677

 

Fair value measurement of non-controlling interest

 

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

10,419,138

 

 

 

10,419,138

 

Distributions

 

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(20,600

)

 

 

(20,600

)

Net income

 

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

 

—

 

 

 

11,990,068

 

 

 

591,369

 

 

 

12,581,437

 

Balance, June 30, 2022

 

917,009

 

$

9,168

 

(332,220

)

 

$

(30,867,287

)

 

$

26,729,124

 

$

92,210,760

 

 

$

10,989,907

 

 

$

99,071,672

 

AMCON Distributing Company and Subsidiaries

Condensed Consolidated Unaudited Statements of Cash Flows

for the nine months ended June 30, 2022 and 2021

  

 

 

 

 

 

 

 

 

June

 

June

 

 

2022

 

2021

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

Net income

 

$

12,581,437

 

 

$

9,197,728

 

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

 

 

 

 

 

 

Depreciation

 

 

2,486,613

 

 

 

2,295,390

 

Amortization

 

 

28,355

 

 

 

—

 

Equity method investment earnings, net of tax

 

 

(1,670,133

)

 

 

(1,403,124

)

Gain on re-valuation of equity method investment to fair value

 

 

(2,387,411

)

 

 

—

 

Gain on sales of property and equipment

 

 

(133,639

)

 

 

(8,057

)

Equity-based compensation

 

 

1,903,884

 

 

 

1,819,272

 

Deferred income taxes

 

 

1,407,012

 

 

 

(220,693

)

Provision for losses on doubtful accounts

 

 

83,000

 

 

 

86,000

 

Inventory allowance

 

 

688,902

 

 

 

238,148

 

Changes in assets and liabilities net of effects of business acquisition:

 

 

 

 

 

 

Accounts receivable

 

 

(1,215,238

)

 

 

(2,334,341

)

Inventories

 

 

(4,674,292

)

 

 

3,093,184

 

Prepaid and other current assets

 

 

(2,986,167

)

 

 

(3,677,421

)

Equity method investment distributions

 

 

1,095,467

 

 

 

828,466

 

Other assets

 

 

(728,596

)

 

 

34,647

 

Accounts payable

 

 

1,313,711

 

 

 

2,680,540

 

Accrued expenses and accrued wages, salaries and bonuses

 

 

1,926,479

 

 

 

804,983

 

Other long-term liabilities

 

 

(690,693

)

 

 

(169,854

)

Income taxes payable and receivable

 

 

(1,890,449

)

 

 

(537,548

)

Net cash flows from (used in) operating activities

 

 

7,138,242

 

 

 

12,727,320

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

Purchase of property and equipment

 

 

(13,940,428

)

 

 

(1,254,958

)

Proceeds from sales of property and equipment

 

 

145,500

 

 

 

39,728

 

Principal payment received on note receivable

 

 

175,000

 

 

 

—

 

Cash acquired in business acquisition

 

 

7,958

 

 

 

—

 

Net cash flows from (used in) investing activities

 

 

(13,611,970

)

 

 

(1,215,230

)

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

Borrowings under revolving credit facilities

 

 

1,393,048,057

 

 

 

1,217,375,073

 

Repayments under revolving credit facilities

 

 

(1,381,508,745

)

 

 

(1,227,854,771

)

Proceeds from borrowings on long-term debt

 

 

—

 

 

 

3,000,000

 

Principal payments on long-term debt

 

 

(524,874

)

 

 

(373,216

)

Proceeds from exercise of stock options

 

 

173,590

 

 

 

—

 

Repurchase of common stock

 

 

—

 

 

 

(5,738

)

Dividends on common stock

 

 

(3,331,606

)

 

 

(3,249,716

)

Settlement and withholdings of equity-based awards

 

 

(1,280,749

)

 

 

(365,022

)

Distributions to non-controlling interest

 

 

(20,600

)

 

 

—

 

Net cash flows from (used in) financing activities

 

 

6,555,073

 

 

 

(11,473,390

)

Net change in cash

 

 

81,345

 

 

 

38,700

 

Cash, beginning of period

 

 

519,591

 

 

 

661,195

 

Cash, end of period

 

$

600,936

 

 

$

699,895

 

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

Cash paid during the period for interest

 

$

1,201,073

 

 

$

1,031,457

 

Cash paid during the period for income taxes

 

 

5,468,488

 

 

 

3,667,036

 

 

 

 

 

 

 

 

Supplemental disclosure of non-cash information:

 

 

 

 

 

 

Equipment acquisitions classified in accounts payable

 

$

123,801

 

 

$

—

 

Effect of business acquisition (see Note 2)

 

 

23,308,624

 

 

 

—

 

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/20220718005507/en/

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