OMAHA, Neb.--(BUSINESS WIRE)--November 8, 2023--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
|
|