AMCON Distributing Company Reports Results for the Quarter Ended June 30, 2023

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

 

 

Contacts

Christopher H. Atayan

AMCON Distributing Company

Ph 402-331-3727

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