DIT AMCON Distributing Co

AMCON Distributing Company (“AMCON” or “the Company”) (NYSE American: DIT), an Omaha, Nebraska based consumer products company, is pleased to announce fully diluted earnings per share of $19.46 on net income available to common shareholders of $11.6 million for the fiscal year ended September 30, 2023.

“We are pleased with our fiscal 2023 results. Our business continues to encounter numerous operating challenges resulting from a labor shortage, supply chain issues, inflation, volatility in energy prices, and rising interest rates. Navigating these headwinds is the central focus of our management team for the near term. One of the core operating philosophies that guide our daily decision-making process is a relentless focus on managing the Company’s balance sheet and maximizing our liquidity position. Another of AMCON’s long-standing core operating philosophies is providing a superior level of customer service. The customer-centric approach we embrace has guided us through these challenging times and helped ensure that AMCON’s customers receive a consistent and timely flow of goods and services,” said Christopher H. Atayan, AMCON’s Chairman and Chief Executive Officer. He further noted, “We continue to actively seek strategic acquisition opportunities for operators who want to align with our customer-centric management philosophy and further the legacy of their enterprises.”

The wholesale distribution segment reported revenues of $2.5 billion and operating income of $39.7 million for fiscal 2023 and the retail health food segment reported revenues of $43.1 million and an operating loss of $0.7 million for fiscal 2023.

“In the medium term our primary strategic objective is to drive the growth of our foodservice business through our Henry’s Foods (“Henry’s”) subsidiary. Henry’s offers a breadth and depth of proprietary foodservice programs and associated store level merchandising that is unparalleled in the convenience distribution industry. Through Henry’s, we now have the capability to offer turn-key solutions that will enable our customer base to compete head on with the Quick Service Restaurant industry. We are investing heavily in our foodservice and technology platforms and associated staffing for these strategic focus areas,” said Andrew C. Plummer, AMCON’s President and Chief Operating Officer. “We are also looking to expand our geographic reach, to better serve our customers as they grow their store footprints.”

Charles J. Schmaderer, AMCON’s Chief Financial Officer said, “At September 30, 2023, our shareholders’ equity was $104.2 million. We continue to prioritize high levels of daily liquidity. Our strong liquidity position provided maximum flexibility to take advantage of attractive short-term merchandising opportunities from several of our key vendor partners that materialized near our fiscal year end.” Mr. Schmaderer also added, “We are investing capital to develop our new 175,000 square foot distribution facility in Springfield, Missouri which will support our customers’ growth initiatives.”

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. We continue to rationalize our base of stores as well as developing new store opportunities.

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 with distribution centers in Illinois, Minnesota, Missouri, Nebraska, North Dakota, South Dakota, Tennessee and West Virginia. AMCON, through its Healthy Edge Retail Group, operates seventeen (17) 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

CONSOLIDATED BALANCE SHEETS

 

 

 

September

 

September

 

 

2023

 

2022

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash

 

$

790,931

 

 

$

431,576

 

Accounts receivable, less allowance for doubtful accounts of $2.4 million at September 2023 and $2.5 million at September 2022

 

 

70,878,420

 

 

 

62,367,888

 

Inventories, net

 

 

158,582,816

 

 

 

134,654,637

 

Income taxes receivable

 

 

1,854,484

 

 

 

819,595

 

Prepaid expenses and other current assets

 

 

13,564,056

 

 

 

12,702,084

 

Total current assets

 

 

245,670,707

 

 

 

210,975,780

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

80,607,451

 

 

 

48,085,520

 

Operating lease right-of-use assets, net

 

 

23,173,287

 

 

 

19,941,009

 

Goodwill

 

 

5,778,325

 

 

 

5,277,950

 

Other intangible assets, net

 

 

5,284,935

 

 

 

2,093,113

 

Other assets

 

 

2,914,495

 

 

 

2,751,155

 

Total assets

 

$

363,429,200

 

 

$

289,124,527

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

43,099,326

 

 

$

39,962,363

 

Accrued expenses

 

 

14,922,279

 

 

 

14,446,210

 

Accrued wages, salaries and bonuses

 

 

8,886,529

 

 

 

7,811,207

 

Current operating lease liabilities

 

 

6,063,048

 

 

 

6,454,473

 

Current maturities of long-term debt

 

 

1,955,065

 

 

 

1,595,309

 

Current mandatorily redeemable non-controlling interest

 

 

1,703,604

 

 

 

1,712,095

 

Total current liabilities

 

 

76,629,851

 

 

 

71,981,657

 

 

 

 

 

 

 

 

Credit facilities

 

 

140,437,989

 

 

 

91,262,438

 

Deferred income tax liability, net

 

 

4,917,960

 

 

 

2,328,588

 

Long-term operating lease liabilities

 

 

17,408,758

 

 

 

13,787,721

 

Long-term debt, less current maturities

 

 

11,675,439

 

 

 

7,384,260

 

Mandatorily redeemable non-controlling interest, less current portion

 

 

7,787,227

 

 

 

9,446,460

 

Other long-term liabilities

 

 

402,882

 

 

 

103,968

 

 

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

 

 

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

 

 

—

 

 

 

—

 

Common stock, $.01 par value, 3,000,000 shares authorized, 608,689 shares outstanding at September 2023 and 584,789 shares outstanding at September 2022

 

 

9,431

 

 

 

9,168

 

Additional paid-in capital

 

 

30,585,388

 

 

 

26,903,201

 

Retained earnings

 

 

104,846,438

 

 

 

96,784,353

 

Treasury stock at cost

 

 

(31,272,163

)

 

 

(30,867,287

)

Total shareholders’ equity

 

 

104,169,094

 

 

 

92,829,435

 

Total liabilities and shareholders’ equity

$

363,429,200

$

289,124,527

AMCON Distributing Company and Subsidiaries

CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

 

Fiscal Years Ended September

 

 

2023

 

2022

Sales (including excise taxes of $564.6 million and $467.1 million, respectively)

 

$

2,539,994,999

 

 

$

2,010,798,385

 

Cost of sales

 

 

2,369,150,102

 

 

 

1,883,078,819

 

Gross profit

 

 

170,844,897

 

 

 

127,719,566

 

Selling, general and administrative expenses

 

 

137,301,668

 

 

 

101,474,359

 

Depreciation and amortization

 

 

7,576,646

 

 

 

3,643,840

 

 

 

 

144,878,314

 

 

 

105,118,199

 

Operating income

 

 

25,966,583

 

 

 

22,601,367

 

 

 

 

 

 

 

 

Other expense (income):

 

 

 

 

 

 

Interest expense

 

 

8,550,431

 

 

 

2,249,552

 

Change in fair value of mandatorily redeemable non-controlling interest

 

 

1,307,599

 

 

 

1,476,986

 

Other (income), net

 

 

(1,193,840

)

 

 

(2,600,675

)

 

 

 

8,664,190

 

 

 

1,125,863

 

Income from operations before income taxes

 

 

17,302,393

 

 

 

21,475,504

 

Income tax expense

 

 

5,706,000

 

 

 

6,473,380

 

Equity method investment earnings, net of tax

 

 

—

 

 

 

1,670,133

 

Net income available to common shareholders

 

$

11,596,393

 

 

$

16,672,257

 

 

 

 

 

 

 

 

Basic earnings per share available to common shareholders

 

$

19.85

 

 

$

29.37

 

Diluted earnings per share available to common shareholders

 

$

19.46

 

 

$

28.59

 

 

 

 

 

 

 

 

Basic weighted average shares outstanding

 

 

584,148

 

 

 

567,697

 

Diluted weighted average shares outstanding

 

 

595,850

 

 

 

583,062

 

 

 

 

 

 

 

 

Dividends paid per common share

 

$

5.72

 

 

$

5.72

 

AMCON Distributing Company and Subsidiaries

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

 

 

Common Stock

 

Treasury Stock

 

Paid-in

 

Retained

 

 

 

 

 

Shares

 

Amount

 

Shares

 

Amount

 

Capital

 

Earnings

 

Total

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, $5.72 per share

 

—

 

 

—

 

—

 

 

 

—

 

 

 

—

 

 

(3,440,202

)

 

 

(3,440,202

)

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

 

33,420

 

 

334

 

—

 

 

 

—

 

 

 

1,984,420

 

 

—

 

 

 

1,984,754

 

Net income available to common shareholders

 

—

 

 

—

 

—

 

 

 

—

 

 

 

—

 

 

16,672,257

 

 

 

16,672,257

 

Balance, September 30, 2022

 

917,009

 

$

9,168

 

(332,220

)

 

$

(30,867,287

)

 

$

26,903,201

 

$

96,784,353

 

 

$

92,829,435

 

Dividends on common stock, $5.72 per share

 

—

 

 

—

 

—

 

 

 

—

 

 

 

—

 

 

(3,534,308

)

 

 

(3,534,308

)

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

 

26,263

 

 

263

 

—

 

 

 

—

 

 

 

3,682,187

 

 

—

 

 

 

3,682,450

 

Repurchase of common stock

 

—

 

 

—

 

(2,363

)

 

 

(404,876

)

 

 

—

 

 

—

 

 

 

(404,876

)

Net income available to common shareholders

 

—

 

 

—

 

—

 

 

 

—

 

 

 

—

 

 

11,596,393

 

 

 

11,596,393

 

Balance, September 30, 2023

 

943,272

 

$

9,431

 

(334,583

)

 

$

(31,272,163

)

 

$

30,585,388

 

$

104,846,438

 

 

$

104,169,094

 

AMCON Distributing Company and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

 

September

 

September

 

 

2023

 

2022

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

Net income available to common shareholders

 

$

11,596,393

 

 

$

16,672,257

 

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

 

 

 

 

 

 

Depreciation

 

 

7,161,468

 

 

 

3,572,953

 

Amortization

 

 

415,178

 

 

 

70,887

 

Equity method investment earnings, net of tax

 

 

—

 

 

 

(1,670,133

)

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

 

 

—

 

 

 

(2,387,411

)

(Gain) loss on sales of property and equipment

 

 

(133,659

)

 

 

(140,139

)

Equity-based compensation

 

 

2,717,370

 

 

 

3,103,320

 

Deferred income taxes

 

 

2,589,372

 

 

 

797,360

 

Provision for losses on doubtful accounts

 

 

(133,924

)

 

 

(32,420

)

Inventory allowance

 

 

(138,820

)

 

 

212,637

 

Change in fair value of mandatorily redeemable non-controlling interest

 

 

1,307,599

 

 

 

1,476,986

 

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

 

 

 

 

 

 

Accounts receivable

 

 

(138,956

)

 

 

3,032,876

 

Inventories

 

 

(7,728,394

)

 

 

3,240,946

 

Prepaid and other current assets

 

 

(679,229

)

 

 

(5,344,754

)

Equity method investment distributions

 

 

—

 

 

 

1,095,467

 

Other assets

 

 

(163,340

)

 

 

(730,391

)

Accounts payable

 

 

2,213,085

 

 

 

332,400

 

Accrued expenses and accrued wages, salaries and bonuses

 

 

1,574,050

 

 

 

2,482,409

 

Other long-term liabilities

 

 

298,914

 

 

 

(653,419

)

Income taxes payable and receivable

 

 

(1,034,889

)

 

 

(2,241,755

)

Net cash flows from (used in) operating activities

 

 

19,722,218

 

 

 

22,890,076

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

Purchase of property and equipment

 

 

(11,561,347

)

 

 

(14,691,799

)

Proceeds from sales of property and equipment

 

 

151,808

 

 

 

152,000

 

Principal payment received on note receivable

 

 

—

 

 

 

175,000

 

Cash acquired in business combination

 

 

—

 

 

 

7,958

 

Acquisition of Henry's

 

 

(54,865,303

)

 

 

—

 

Net cash flows from (used in) investing activities

 

 

(66,274,842

)

 

 

(14,356,841

)

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

Borrowings under revolving credit facilities

 

 

2,512,309,723

 

 

 

2,042,679,688

 

Repayments under revolving credit facilities

 

 

(2,463,134,172

)

 

 

(2,041,106,459

)

Proceeds from borrowings on long-term debt

 

 

7,000,000

 

 

 

—

 

Principal payments on long-term debt

 

 

(2,349,065

)

 

 

(4,909,548

)

Proceeds from exercise of stock options

 

 

—

 

 

 

173,590

 

Repurchase of common stock

 

 

(404,876

)

 

 

—

 

Dividends on common stock

 

 

(3,534,308

)

 

 

(3,440,202

)

Settlement and withholdings of equity-based awards

 

 

—

 

 

 

(1,280,749

)

Redemption and distributions to non-controlling interest

 

 

(2,975,323

)

 

 

(737,570

)

Net cash flows from (used in) financing activities

 

 

46,911,979

 

 

 

(8,621,250

)

Net change in cash

 

 

359,355

 

 

 

(88,015

)

Cash, beginning of period

 

 

431,576

 

 

 

519,591

 

Cash, end of period

 

$

790,931

 

 

$

431,576

 

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

Cash paid during the period for interest

 

$

8,311,375

 

 

$

2,210,828

 

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

 

 

4,141,370

 

 

 

7,915,225

 

 

 

 

 

 

 

 

Supplemental disclosure of non-cash information:

 

 

 

 

 

 

Equipment acquisitions classified in accounts payable

 

$

1,015,534

 

 

$

91,656

 

Effect of business acquisition

 

 

—

 

 

 

23,308,624

 

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/20231108166908/en/

Charles J. Schmaderer AMCON Distributing Company Ph 402-331-3727