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 $6.59 on
net income available to common shareholders of $3.9 million for its
third fiscal quarter ended June 30, 2023.
“We have begun the integration of an expanded foodservice
platform now available for our customer base as a result of our
recent acquisition of Henry’s Foods,” 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 $685.7
million and operating income of $11.8 million for the third quarter
of fiscal 2023. The retail health food segment reported revenues of
$10.7 million and an operating loss of $0.3 million for the third
quarter of fiscal 2023.
“Foodservice and our technology suite of services are strategic
areas of focus. Our customer base is growing, and we continue to
search for facilities in and adjacent to our current service area,”
said Andrew C. Plummer, AMCON’s President and Chief Operating
Officer. Mr. Plummer further noted, “We are actively seeking to
hire industry leading talent in all areas of our organization to
support our growth.”
“Our working capital position is strong. As a core operating
principle, we are highly liquid and able to take advantage of
strategic opportunities in the marketplace,” said Charles J.
Schmaderer, AMCON’s Chief Financial Officer. Mr. Schmaderer further
noted, “AMCON ended the quarter with $100.9 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 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
Condensed Consolidated Balance
Sheets
June 30, 2023 and September
30, 2022
June
September
2023
2022
(Unaudited)
ASSETS
Current assets:
Cash
$
739,013
$
431,576
Accounts receivable, less allowance for
doubtful accounts of $2.5 million at both June 2023 and September
2022
78,640,187
62,367,888
Inventories, net
162,567,117
134,654,637
Income taxes receivable
—
819,595
Prepaid expenses and other current
assets
13,630,317
12,702,084
Total current assets
255,576,634
210,975,780
Property and equipment, net
78,872,876
48,085,520
Operating lease right-of-use assets,
net
19,739,321
19,941,009
Goodwill
5,778,325
5,277,950
Other intangible assets, net
5,419,361
2,093,113
Other assets
3,320,838
2,751,155
Total assets
$
368,707,355
$
289,124,527
LIABILITIES AND SHAREHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
51,853,159
$
39,962,363
Accrued expenses
15,960,945
14,446,210
Accrued wages, salaries and bonuses
7,799,903
7,811,207
Income taxes payable
752,658
—
Current operating lease liabilities
6,300,102
6,454,473
Current maturities of long-term debt
2,738,524
1,595,309
Current mandatorily redeemable
non-controlling interest
1,641,612
1,712,095
Total current liabilities
87,046,903
71,981,657
Credit facilities
143,375,961
91,262,438
Deferred income tax liability, net
3,138,204
2,328,588
Long-term operating lease liabilities
13,737,167
13,787,721
Long-term debt, less current
maturities
12,229,486
7,384,260
Mandatorily redeemable non-controlling
interest, less current portion
7,976,499
9,446,460
Other long-term liabilities
289,672
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 June 2023 and
584,789 shares outstanding at September 2022
9,431
9,168
Additional paid-in capital
30,175,977
26,903,201
Retained earnings
102,000,218
96,784,353
Treasury stock at cost
(31,272,163
)
(30,867,287
)
Total shareholders’ equity
100,913,463
92,829,435
Total liabilities and shareholders’
equity
$
368,707,355
$
289,124,527
AMCON Distributing Company and Subsidiaries
Condensed Consolidated
Unaudited Statements of Operations
for the three and nine months
ended June 30, 2023 and 2022
For the three months ended
June
For the nine months ended
June
2023
2022
2023
2022
Sales (including excise taxes of $153.7
million and $129.2 million, and $414.9 million and $315.5 million,
respectively)
$
696,489,427
$
550,584,152
$
1,847,472,782
$
1,365,043,621
Cost of sales
649,623,651
516,907,540
1,724,504,862
1,277,757,425
Gross profit
46,865,776
33,676,612
122,967,920
87,286,196
Selling, general and administrative
expenses
36,851,520
25,862,325
99,227,695
70,168,415
Depreciation and amortization
2,103,429
912,501
4,982,068
2,514,968
38,954,949
26,774,826
104,209,763
72,683,383
Operating income
7,910,827
6,901,786
18,758,157
14,602,813
Other expense (income):
Interest expense
2,385,842
655,811
6,249,540
1,222,829
Change in fair value of mandatorily
redeemable non-controlling interest
698,571
705,392
864,684
705,392
Other (income), net
(931,765
)
(2,417,252
)
(1,159,021
)
(2,518,320
)
2,152,648
(1,056,049
)
5,955,203
(590,099
)
Income from operations before income
taxes
5,758,179
7,957,835
12,802,954
15,192,912
Income tax expense
1,813,800
2,221,000
4,164,000
4,811,000
Equity method investment earnings, net of
tax
—
307,973
—
1,670,133
Net income available to common
shareholders
$
3,944,379
$
6,044,808
$
8,638,954
$
12,052,045
Basic earnings per share available to
common shareholders
$
6.74
$
10.61
$
14.78
$
21.25
Diluted earnings per share available to
common shareholders
$
6.59
$
10.38
$
14.56
$
20.72
Basic weighted average shares
outstanding
585,625
569,689
584,359
567,026
Diluted weighted average shares
outstanding
598,590
582,370
593,480
581,578
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, 2023 and 2022
Additional
Common Stock
Treasury Stock
Paid-in
Retained
Shares
Amount
Shares
Amount
Capital
Earnings
Total
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 related to
equity-based awards
—
—
—
—
174,078
—
174,078
Net income available to common
shareholders
—
—
—
—
—
6,044,808
6,044,808
Balance, June 30, 2022
917,009
$
9,168
(332,220
)
$
(30,867,287
)
$
26,729,124
$
92,272,737
$
88,143,742
THREE MONTHS ENDED JUNE 2023
Balance, April 1, 2023
943,272
$
9,431
(332,220
)
$
(30,867,287
)
$
29,766,566
$
98,167,058
$
97,075,768
Dividends on common stock, $0.18 per
share
—
—
—
—
—
(111,219
)
(111,219
)
Compensation expense related to
equity-based awards
—
—
—
—
409,411
—
409,411
Committed repurchase of treasury stock
—
—
(2,363
)
(404,876
)
—
—
(404,876
)
Net income available to common
shareholders
—
—
—
—
—
3,944,379
3,944,379
Balance, June 30, 2023
943,272
$
9,431
(334,583
)
$
(31,272,163
)
$
30,175,977
$
102,000,218
$
100,913,463
Additional
Common Stock
Treasury Stock
Paid-in
Retained
Shares
Amount
Shares
Amount
Capital
Earnings
Total
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
Net income available to common
shareholders
—
—
—
—
—
12,052,045
12,052,045
Balance, June 30, 2022
917,009
$
9,168
(332,220
)
$
(30,867,287
)
$
26,729,124
$
92,272,737
$
88,143,742
NINE MONTHS ENDED JUNE 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, $5.54 per
share
—
—
—
—
—
(3,423,089
)
(3,423,089
)
Compensation expense and settlement of
equity-based awards
26,263
263
—
—
3,272,776
—
3,273,039
Committed repurchase of treasury stock
—
—
(2,363
)
(404,876
)
—
—
(404,876
)
Net income available to common
shareholders
—
—
—
—
—
8,638,954
8,638,954
Balance, June 30, 2023
943,272
$
9,431
(334,583
)
$
(31,272,163
)
$
30,175,977
$
102,000,218
$
100,913,463
AMCON Distributing Company and Subsidiaries
Condensed Consolidated
Unaudited Statements of Cash Flows
for the nine months ended June
30, 2023 and 2022
June
June
2023
2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income available to common
shareholders
$
8,638,954
$
12,052,045
Adjustments to reconcile net income
available to common shareholders to net cash flows from (used in)
operating activities:
Depreciation
4,701,316
2,486,613
Amortization
280,752
28,355
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
(133,159
)
(133,639
)
Equity-based compensation
1,940,631
1,903,884
Deferred income taxes
809,616
1,231,012
Provision for losses on doubtful
accounts
(7,697
)
83,000
Inventory allowance
442,603
688,902
Change in fair value of mandatorily
redeemable non-controlling interest
864,684
705,392
Changes in assets and liabilities, net of
effects of business acquisition:
Accounts receivable
(8,026,950
)
(1,215,238
)
Inventories
(12,294,118
)
(4,674,292
)
Prepaid and other current assets
(745,490
)
(2,986,167
)
Equity method investment distributions
—
1,095,467
Other assets
(569,683
)
(728,596
)
Accounts payable
10,360,228
1,313,711
Accrued expenses and accrued wages,
salaries and bonuses
1,487,971
1,926,479
Other long-term liabilities
185,704
(690,693
)
Income taxes payable and receivable
1,572,253
(1,890,449
)
Net cash flows from (used in) operating
activities
9,507,615
7,138,242
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment
(6,759,929
)
(13,940,428
)
Proceeds from sales of property and
equipment
151,307
145,500
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
(61,473,925
)
(13,611,970
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under revolving credit
facilities
1,863,027,754
1,393,048,057
Repayments under revolving credit
facilities
(1,810,914,231
)
(1,381,508,745
)
Proceeds from borrowings on long-term
debt
7,000,000
—
Principal payments on long-term debt
(1,011,559
)
(524,874
)
Proceeds from exercise of stock
options
—
173,590
Dividends on common stock
(3,423,089
)
(3,331,606
)
Settlement and withholdings of
equity-based awards
—
(1,280,749
)
Redemption and distributions to
non-controlling interest
(2,405,128
)
(20,600
)
Net cash flows from (used in) financing
activities
52,273,747
6,555,073
Net change in cash
307,437
81,345
Cash, beginning of period
431,576
519,591
Cash, end of period
$
739,013
$
600,936
Supplemental disclosure of cash flow
information:
Cash paid during the period for
interest
$
5,824,144
$
1,201,073
Cash paid during the period for income
taxes, net of refunds
1,780,000
5,468,488
Supplemental disclosure of non-cash
information:
Equipment acquisitions classified in
accounts payable
$
1,622,224
$
123,801
Effect of business acquisition
—
23,308,624
Committed repurchase of treasury stock
404,876
—
Issuance of common stock in connection
with the vesting and exercise of equity-based awards
2,044,805
2,280,783
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version on businesswire.com: https://www.businesswire.com/news/home/20230718911861/en/
Christopher H. Atayan AMCON Distributing Company Ph
402-331-3727
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