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 $3.49 on net income available to common shareholders of $2.1 million for its second fiscal quarter ended March 31, 2023.

“AMCON’s leadership position in Convenience Distribution is a function of our relentless focus on customer service. We faced historic levels of severe weather in the markets we serve during the quarter, and our operations teams made the extra effort necessary to ensure continuity of service across our customer base,” 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 foodservice distributors who want to align with the Company’s growing platform and customer centric management philosophy.”

The wholesale distribution segment reported revenues of $573.6 million and operating income of $8.9 million for the second quarter of fiscal 2023. The retail health food segment reported revenues of $11.3 million and operating income of $0.2 million for the second quarter of fiscal 2023.

“As a result of our recent acquisition of Henry’s Foods, we have begun the integration of an expanded foodservice platform now available to the Company and our customer base,” said Andrew C. Plummer, AMCON’s President and Chief Operating Officer. Mr. Plummer further noted, “Foodservice and our technology suite of services are strategic focus areas. Our customer base is growing, and we continue to search for facilities in, and adjacent to our current service area.”

“We are actively managing our working capital position to take advantage of strategic opportunities in the marketplace,” said Charles J. Schmaderer, AMCON’s Chief Financial Officer. Mr. Schmaderer further noted, “As a core operating principle, we maintain high levels of liquidity and ended the quarter with $97.1 million of consolidated shareholders’ equity.”

AMCON is a leading convenience distributor of consumer products, including beverages, candy, tobacco, groceries, foodservice, frozen and refrigerated foods, automotive supplies and health and beauty care products servicing approximately 6,800 retail stores through distribution centers in Illinois, Minnesota, Missouri, Nebraska, North Dakota, South Dakota, Tennessee and West Virginia. AMCON, through its Healthy Edge Retail Group, also operates eighteen (18) health and natural product retail stores in the Midwest and Florida.

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, 2023 and September 30, 2022

 

 

 

March

 

September

 

 

 

2023

 

 

 

2022

 

 

 

(Unaudited)

 

 

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash

 

$

781,761

 

 

$

431,576

 

Accounts receivable, less allowance for doubtful accounts of $2.1 million at March 2023 and $2.5 million September 2022

 

 

65,886,561

 

 

 

62,367,888

 

Inventories, net

 

 

130,878,576

 

 

 

134,654,637

 

Income taxes receivable

 

 

879,122

 

 

 

819,595

 

Prepaid expenses and other current assets

 

 

13,296,012

 

 

 

12,702,084

 

Total current assets

 

 

211,722,032

 

 

 

210,975,780

 

 

 

 

 

 

Property and equipment, net

 

 

75,366,996

 

 

 

48,085,520

 

Operating lease right-of-use assets, net

 

 

18,913,326

 

 

 

19,941,009

 

Goodwill

 

 

5,871,659

 

 

 

5,277,950

 

Other intangible assets, net

 

 

5,553,786

 

 

 

2,093,113

 

Other assets

 

 

3,026,951

 

 

 

2,751,155

 

Total assets

 

$

320,454,750

 

 

$

289,124,527

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

50,460,856

 

 

$

39,962,363

 

Accrued expenses

 

 

15,204,328

 

 

 

14,446,210

 

Accrued wages, salaries and bonuses

 

 

5,070,513

 

 

 

7,811,207

 

Current operating lease liabilities

 

 

6,496,935

 

 

 

6,454,473

 

Current maturities of long-term debt

 

 

2,758,738

 

 

 

1,595,309

 

Current mandatorily redeemable non-controlling interest

 

 

1,812,558

 

 

 

1,712,095

 

Total current liabilities

 

 

81,803,928

 

 

 

71,981,657

 

 

 

 

 

 

Credit facilities

 

 

103,064,246

 

 

 

91,262,438

 

Deferred income tax liability, net

 

 

3,318,290

 

 

 

2,328,588

 

Long-term operating lease liabilities

 

 

12,743,653

 

 

 

13,787,721

 

Long-term debt, less current maturities

 

 

12,715,890

 

 

 

7,384,260

 

Mandatorily redeemable non-controlling interest, less current portion

 

 

9,512,111

 

 

 

9,446,460

 

Other long-term liabilities

 

 

220,864

 

 

 

103,968

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

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

 

 

—

 

 

 

—

 

Common stock, $.01 par value, 3,000,000 shares authorized, 611,052 shares outstanding at March 2023 and 584,789 shares outstanding at September 2022

 

 

9,431

 

 

 

9,168

 

Additional paid-in capital

 

 

29,766,566

 

 

 

26,903,201

 

Retained earnings

 

 

98,167,058

 

 

 

96,784,353

 

Treasury stock at cost

 

 

(30,867,287

)

 

 

(30,867,287

)

Total shareholders’ equity

 

 

97,075,768

 

 

 

92,829,435

 

Total liabilities and shareholders’ equity

 

$

320,454,750

 

 

$

289,124,527

 

 

AMCON Distributing Company and Subsidiaries

Condensed Consolidated Unaudited Statements of Operations

for the three and six months ended March 31, 2023 and 2022

 

 

 

For the three months ended March

 

For the six months ended March

 

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Sales (including excise taxes of $130.9 and $89.1 million, and $261.3 million and $186.2 million, respectively)

 

$

584,993,848

 

 

$

391,888,192

 

 

$

1,150,983,356

 

 

$

814,459,469

 

Cost of sales

 

 

543,861,287

 

 

 

365,211,270

 

 

 

1,074,881,211

 

 

 

760,849,885

 

Gross profit

 

 

41,132,561

 

 

 

26,676,922

 

 

 

76,102,145

 

 

 

53,609,584

 

Selling, general and administrative expenses

 

 

33,996,988

 

 

 

21,915,351

 

 

 

62,376,176

 

 

 

44,306,090

 

Depreciation and amortization

 

 

1,807,753

 

 

 

818,222

 

 

 

2,878,639

 

 

 

1,602,467

 

 

 

 

35,804,741

 

 

 

22,733,573

 

 

 

65,254,815

 

 

 

45,908,557

 

Operating income

 

 

5,327,820

 

 

 

3,943,349

 

 

 

10,847,330

 

 

 

7,701,027

 

 

 

 

 

 

 

 

 

 

Other expense (income):

 

 

 

 

 

 

 

 

Interest expense

 

 

2,169,541

 

 

 

244,920

 

 

 

3,863,698

 

 

 

567,018

 

Change in fair value of mandatorily redeemable non-controlling interest

 

 

221,030

 

 

 

—

 

 

 

166,114

 

 

 

—

 

Other (income), net

 

 

(173,725

)

 

 

(60,958

)

 

 

(227,257

)

 

 

(101,068

)

 

 

 

2,216,846

 

 

 

183,962

 

 

 

3,802,555

 

 

 

465,950

 

Income from operations before income taxes

 

 

3,110,974

 

 

 

3,759,387

 

 

 

7,044,775

 

 

 

7,235,077

 

Income tax expense

 

 

1,045,400

 

 

 

1,345,000

 

 

 

2,350,200

 

 

 

2,590,000

 

Equity method investment earnings, net of tax

 

 

—

 

 

 

591,795

 

 

 

—

 

 

 

1,362,161

 

Net income available to common shareholders

 

$

2,065,574

 

 

$

3,006,182

 

 

$

4,694,575

 

 

$

6,007,238

 

 

 

 

 

 

 

 

 

 

Basic earnings per share available to common shareholders

 

$

3.53

 

 

$

5.29

 

 

$

8.04

 

 

$

10.62

 

Diluted earnings per share available to common shareholders

 

$

3.49

 

 

$

5.19

 

 

$

7.94

 

 

$

10.33

 

 

 

 

 

 

 

 

 

 

Basic weighted average shares outstanding

 

 

585,885

 

 

 

567,889

 

 

 

583,725

 

 

 

565,694

 

Diluted weighted average shares outstanding

 

 

592,448

 

 

 

578,751

 

 

 

591,249

 

 

 

581,328

 

 

 

 

 

 

 

 

 

 

Dividends paid per common share

 

$

5.18

 

 

$

0.18

 

 

$

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, 2023 and 2022

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

Common Stock

 

Treasury Stock

 

Paid-in

 

Retained

 

 

 

 

Shares

 

Amount

 

Shares

 

Amount

 

Capital

 

Earnings

 

Total

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

)

Net income available to common shareholders

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

 

—

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

THREE MONTHS ENDED MARCH 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, January 1, 2023

 

943,272

 

 

$

9,431

 

 

(332,220

)

 

$

(30,867,287

)

 

$

29,357,154

 

 

$

96,212,704

 

 

$

94,712,002

 

Dividends on common stock, $0.18 per share

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(111,220

)

 

 

(111,220

)

Compensation expense related to equity-based awards

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

 

409,412

 

 

 

—

 

 

 

409,412

 

Net income available to common shareholders

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,065,574

 

 

 

2,065,574

 

Balance, March 31, 2023

 

943,272

 

 

$

9,431

 

 

(332,220

)

 

$

(30,867,287

)

 

$

29,766,566

 

 

$

98,167,058

 

 

$

97,075,768

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

Common Stock

 

Treasury Stock

 

Paid-in

 

Retained

 

 

 

 

Shares

 

Amount

 

Shares

 

Amount

 

Capital

 

Earnings

 

Total

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

 

Net income available to common shareholders

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

 

—

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SIX MONTHS ENDED MARCH 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, October 1, 2022

 

917,009

 

 

$

9,168

 

 

(332,220

)

 

$

(30,867,287

)

 

$

26,903,201

 

 

$

96,784,353

 

 

$

92,829,435

 

Dividends on common stock, $5.36 per share

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(3,311,870

)

 

 

(3,311,870

)

Compensation expense and settlement of equity-based awards

 

26,263

 

 

 

263

 

 

—

 

 

 

—

 

 

 

2,863,365

 

 

 

—

 

 

 

2,863,628

 

Net income available to common shareholders

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4,694,575

 

 

 

4,694,575

 

Balance, March 31, 2023

 

943,272

 

 

$

9,431

 

 

(332,220

)

 

$

(30,867,287

)

 

$

29,766,566

 

 

$

98,167,058

 

 

$

97,075,768

 

 

 

AMCON Distributing Company and Subsidiaries

Condensed Consolidated Unaudited Statements of Cash Flows

for the six months ended March 31, 2023 and 2022

 

 

 

March

 

March

 

 

 

2023

 

 

 

2022

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

Net income available to common shareholders

 

$

4,694,575

 

 

$

6,007,238

 

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

 

 

 

 

Depreciation

 

 

2,732,312

 

 

 

1,602,467

 

Amortization

 

 

146,327

 

 

 

—

 

Equity method investment earnings, net of tax

 

 

—

 

 

 

(1,362,161

)

(Gain) loss on sales of property and equipment

 

 

(133,159

)

 

 

(76,220

)

Equity-based compensation

 

 

1,061,383

 

 

 

1,208,655

 

Deferred income taxes

 

 

989,702

 

 

 

1,099,199

 

Provision for losses on doubtful accounts

 

 

(378,302

)

 

 

(3,000

)

Inventory allowance

 

 

(6,947

)

 

 

155,534

 

Change in fair value of mandatorily redeemable non-controlling interest

 

 

166,114

 

 

 

—

 

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

 

 

 

 

Accounts receivable

 

 

5,097,281

 

 

 

2,290,562

 

Inventories

 

 

19,843,973

 

 

 

4,807,756

 

Prepaid and other current assets

 

 

(411,185

)

 

 

(651,979

)

Equity method investment distributions

 

 

—

 

 

 

744,118

 

Other assets

 

 

(275,796

)

 

 

(79,301

)

Accounts payable

 

 

10,457,273

 

 

 

1,465,370

 

Accrued expenses and accrued wages, salaries and bonuses

 

 

(1,094,009

)

 

 

(700,748

)

Other long-term liabilities

 

 

116,896

 

 

 

(721,318

)

Income taxes payable and receivable

 

 

(59,527

)

 

 

(1,990,394

)

Net cash flows from (used in) operating activities

 

 

42,946,911

 

 

 

13,795,778

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

Purchase of property and equipment

 

 

(2,760,586

)

 

 

(974,424

)

Proceeds from sales of property and equipment

 

 

137,500

 

 

 

79,000

 

Principal payment received on note receivable

 

 

—

 

 

 

175,000

 

Acquisition of Henry's

 

 

(54,958,637

)

 

 

—

 

Net cash flows from (used in) investing activities

 

 

(57,581,723

)

 

 

(720,424

)

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

Borrowings under revolving credit facilities

 

 

1,184,888,842

 

 

 

819,125,190

 

Repayments under revolving credit facilities

 

 

(1,173,087,034

)

 

 

(827,584,508

)

Proceeds from borrowings on long-term debt

 

 

7,000,000

 

 

 

—

 

Principal payments on long-term debt

 

 

(504,941

)

 

 

(277,902

)

Proceeds from exercise of stock options

 

 

—

 

 

 

173,590

 

Dividends on common stock

 

 

(3,311,870

)

 

 

(3,223,011

)

Settlement and withholdings of equity-based awards

 

 

—

 

 

 

(1,280,749

)

Net cash flows from (used in) financing activities

 

 

14,984,997

 

 

 

(13,067,390

)

Net change in cash

 

 

350,185

 

 

 

7,964

 

Cash, beginning of period

 

 

431,576

 

 

 

519,591

 

Cash, end of period

 

$

781,761

 

 

$

527,555

 

 

 

 

 

 

Supplemental disclosure of cash flow information:

 

 

 

 

Cash paid during the period for interest

 

$

3,527,737

 

 

$

582,394

 

Cash paid during the period for income taxes, net of refunds

 

 

1,419,354

 

 

 

3,481,196

 

 

 

 

 

 

Supplemental disclosure of non-cash information:

 

 

 

 

Equipment acquisitions classified in accounts payable

 

$

132,876

 

 

$

29,047

 

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

 

 

2,044,805

 

 

 

2,280,783

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230418005904/en/

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