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
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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/