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 $4.46 on net income available to common shareholders of $2.6 million for its first fiscal quarter ended December 31, 2022.

“AMCON has a strategic focus on Customer Service and this long-held approach enables our leadership in the Convenience Distribution industry,” 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 $555.7 million and operating income of $8.2 million for the first quarter of fiscal 2023. The retail health food segment reported revenues of $10.3 million and an operating loss of $0.3 million for the first quarter of fiscal 2023.

“We are proud of the extra efforts our team made to ensure timely delivery to our customers during the severe weather we encountered during the quarter,” said Andrew C. Plummer, AMCON’s President and Chief Operating Officer. Mr. Plummer further noted, “We are investing heavily in our foodservice and technology platforms and associated staffing for these strategic focus areas. Our customer base is growing, and we continue to search for facilities in, and adjacent to, the geographic markets we serve.”

“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 $94.7 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 5,400 retail stores through distribution centers in Illinois, Missouri, Nebraska, North Dakota, South Dakota, Tennessee and West Virginia. AMCON, through its Healthy Edge Retail Group, also operates nineteen (19) 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

December 31, 2022 and September 30, 2022

 

 

 

 

 

 

 

 

 

December

 

September

 

 

2022

 

2022

 

 

(Unaudited)

 

 

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash

 

$

452,142

 

 

$

431,576

 

Accounts receivable, less allowance for doubtful accounts of $2.0 million at December 2022 and $2.5 million September 2022

 

 

54,482,938

 

 

 

62,367,888

 

Inventories, net

 

 

185,213,063

 

 

 

134,654,637

 

Income taxes receivable

 

 

660,617

 

 

 

819,595

 

Prepaid expenses and other current assets

 

 

12,656,974

 

 

 

12,702,084

 

Total current assets

 

 

253,465,734

 

 

 

210,975,780

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

48,449,099

 

 

 

48,085,520

 

Operating lease right-of-use assets, net

 

 

19,078,842

 

 

 

19,941,009

 

Goodwill

 

 

5,277,950

 

 

 

5,277,950

 

Other intangible assets, net

 

 

2,050,580

 

 

 

2,093,113

 

Other assets

 

 

2,551,744

 

 

 

2,751,155

 

Total assets

 

$

330,873,949

 

 

$

289,124,527

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

33,296,105

 

 

$

39,962,363

 

Accrued expenses

 

 

14,658,185

 

 

 

14,446,210

 

Accrued wages, salaries and bonuses

 

 

3,794,970

 

 

 

7,811,207

 

Current operating lease liabilities

 

 

6,426,103

 

 

 

6,454,473

 

Current maturities of long-term debt

 

 

1,554,653

 

 

 

1,595,309

 

Current mandatorily redeemable non-controlling interest

 

 

1,755,611

 

 

 

1,712,095

 

Total current liabilities

 

 

61,485,627

 

 

 

71,981,657

 

 

 

 

 

 

 

 

Credit facilities

 

 

141,488,518

 

 

 

91,262,438

 

Deferred income tax liability, net

 

 

3,474,410

 

 

 

2,328,588

 

Long-term operating lease liabilities

 

 

12,989,955

 

 

 

13,787,721

 

Long-term debt, less current maturities

 

 

7,222,520

 

 

 

7,384,260

 

Mandatorily redeemable non-controlling interest, less current portion

 

 

9,348,028

 

 

 

9,446,460

 

Other long-term liabilities

 

 

152,889

 

 

 

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 December 2022 and 584,789 shares outstanding at September 2022

 

 

9,431

 

 

 

9,168

 

Additional paid-in capital

 

 

29,357,154

 

 

 

26,903,201

 

Retained earnings

 

 

96,212,704

 

 

 

96,784,353

 

Treasury stock at cost

 

 

(30,867,287

)

 

 

(30,867,287

)

Total shareholders’ equity

 

 

94,712,002

 

 

 

92,829,435

 

Total liabilities and shareholders’ equity

 

$

330,873,949

 

 

$

289,124,527

 

  AMCON Distributing Company and Subsidiaries

Condensed Consolidated Unaudited Statements of Operations

for the three months ended December 31, 2022 and 2021

 

 

 

 

 

 

 

 

 

For the three months ended December

 

 

2022

 

2021

Sales (including excise taxes of $130.3 million and $97.1 million, respectively)

 

$

565,989,507

 

 

$

422,571,278

 

Cost of sales

 

 

531,019,924

 

 

 

395,638,615

 

Gross profit

 

 

34,969,583

 

 

 

26,932,663

 

Selling, general and administrative expenses

 

 

28,379,186

 

 

 

22,390,740

 

Depreciation and amortization

 

 

1,070,886

 

 

 

784,245

 

 

 

 

29,450,072

 

 

 

23,174,985

 

Operating income

 

 

5,519,511

 

 

 

3,757,678

 

 

 

 

 

 

 

 

Other expense (income):

 

 

 

 

 

 

Interest expense

 

 

1,694,158

 

 

 

322,097

 

Change in fair value of mandatorily redeemable non-controlling interest

 

 

(54,916

)

 

 

—

 

Other (income), net

 

 

(53,532

)

 

 

(40,109

)

 

 

 

1,585,710

 

 

 

281,988

 

Income from operations before income taxes

 

 

3,933,801

 

 

 

3,475,690

 

Income tax expense

 

 

1,304,800

 

 

 

1,245,000

 

Equity method investment earnings, net of tax

 

 

—

 

 

 

770,365

 

Net income available to common shareholders

 

$

2,629,001

 

 

$

3,001,055

 

 

 

 

 

 

 

 

Basic earnings per share available to common shareholders

 

$

4.52

 

 

$

5.33

 

Diluted earnings per share available to common shareholders

 

$

4.46

 

 

$

5.18

 

 

 

 

 

 

 

 

Basic weighted average shares outstanding

 

 

581,612

 

 

 

563,546

 

Diluted weighted average shares outstanding

 

 

589,881

 

 

 

578,964

 

 

 

 

 

 

 

 

Dividends paid per common share

 

$

0.18

 

 

$

5.18

 

  AMCON Distributing Company and Subsidiaries

Condensed Consolidated Unaudited Statements of Shareholders’ Equity

for the three months ended December 31, 2022 and 2021

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

 

 

Common Stock

 

Treasury Stock

 

Paid-in

 

Retained

 

 

 

 

 

Shares

 

Amount

 

Shares

 

Amount

 

Capital

 

Earnings

 

Total

THREE MONTHS ENDED DECEMBER 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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, $5.18 per share

 

—

 

 

—

 

—

 

 

 

—

 

 

 

—

 

 

(3,114,775

)

 

 

(3,114,775

)

Compensation expense and settlement of equity-based awards

 

31,420

 

 

314

 

—

 

 

 

—

 

 

 

2,080,954

 

 

—

 

 

 

2,081,268

 

Net income available to common shareholders

 

—

 

 

—

 

—

 

 

 

—

 

 

 

—

 

 

3,001,055

 

 

 

3,001,055

 

Balance, December 31, 2021

 

915,009

 

$

9,148

 

(332,220

)

 

$

(30,867,287

)

 

$

26,999,735

 

$

83,438,578

 

 

$

79,580,174

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

THREE MONTHS ENDED DECEMBER 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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, $5.18 per share

 

—

 

 

—

 

—

 

 

 

—

 

 

 

—

 

 

(3,200,650

)

 

 

(3,200,650

)

Compensation expense and settlement of equity-based awards

 

26,263

 

 

263

 

—

 

 

 

—

 

 

 

2,453,953

 

 

—

 

 

 

2,454,216

 

Net income available to common shareholders

 

—

 

 

—

 

—

 

 

 

—

 

 

 

—

 

 

2,629,001

 

 

 

2,629,001

 

Balance, December 31, 2022

 

943,272

 

$

9,431

 

(332,220

)

 

$

(30,867,287

)

 

$

29,357,154

 

$

96,212,704

 

 

$

94,712,002

 

  AMCON Distributing Company and Subsidiaries

Condensed Consolidated Unaudited Statements of Cash Flows

for the three months ended December 31, 2022 and 2021

 

 

 

 

 

 

 

 

 

December

 

December

 

 

2022

 

2021

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

Net income available to common shareholders

 

$

2,629,001

 

 

$

3,001,055

 

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

 

 

 

 

 

 

Depreciation

 

 

1,028,353

 

 

 

784,245

 

Amortization

 

 

42,533

 

 

 

—

 

Equity method investment earnings, net of tax

 

 

—

 

 

 

(770,365

)

(Gain) loss on sales of property and equipment

 

 

(36,000

)

 

 

(31,000

)

Equity-based compensation

 

 

390,570

 

 

 

710,056

 

Deferred income taxes

 

 

1,145,822

 

 

 

1,173,648

 

Provision for losses on doubtful accounts

 

 

(496,332

)

 

 

(102,000

)

Inventory allowance

 

 

141,087

 

 

 

99,304

 

Change in fair value of mandatorily redeemable non-controlling interest

 

 

(54,916

)

 

 

—

 

Changes in assets and liabilities:

 

 

 

 

 

 

Accounts receivable

 

 

8,381,282

 

 

 

5,084,916

 

Inventories

 

 

(50,699,513

)

 

 

(2,629,537

)

Prepaid and other current assets

 

 

45,110

 

 

 

(6,573

)

Other assets

 

 

199,411

 

 

 

22,184

 

Accounts payable

 

 

(6,602,785

)

 

 

(5,750,609

)

Accrued expenses and accrued wages, salaries and bonuses

 

 

(4,794,015

)

 

 

(1,519,848

)

Other long-term liabilities

 

 

48,921

 

 

 

(743,776

)

Income taxes payable and receivable

 

 

158,978

 

 

 

71,352

 

Net cash flows from (used in) operating activities

 

 

(48,472,493

)

 

 

(606,948

)

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

Purchase of property and equipment

 

 

(1,455,405

)

 

 

(333,084

)

Proceeds from sales of property and equipment

 

 

36,000

 

 

 

31,000

 

Principal payment received on note receivable

 

 

—

 

 

 

175,000

 

Net cash flows from (used in) investing activities

 

 

(1,419,405

)

 

 

(127,084

)

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

Borrowings under revolving credit facilities

 

 

639,488,133

 

 

 

439,039,482

 

Repayments under revolving credit facilities

 

 

(589,262,053

)

 

 

(434,242,609

)

Principal payments on long-term debt

 

 

(202,396

)

 

 

(138,284

)

Dividends on common stock

 

 

(111,220

)

 

 

(3,114,775

)

Settlement and withholdings of equity-based awards

 

 

—

 

 

 

(488,412

)

Net cash flows from (used in) financing activities

 

 

49,912,464

 

 

 

1,055,402

 

Net change in cash

 

 

20,566

 

 

 

321,370

 

Cash, beginning of period

 

 

431,576

 

 

 

519,591

 

Cash, end of period

 

$

452,142

 

 

$

840,961

 

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

Cash paid during the period for interest

 

$

1,458,843

 

 

$

333,941

 

 

 

 

 

 

 

 

Supplemental disclosure of non-cash information:

 

 

 

 

 

 

Equipment acquisitions classified in accounts payable

 

$

28,183

 

 

$

16,591

 

Dividends declared, not paid

 

 

3,089,430

 

 

 

—

 

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/20230118005580/en/

For Further Information Contact: Christopher H. Atayan AMCON Distributing Company Ph 402-331-3727