DIT AMCON Distributing Co

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 $1.78 on net income available to common shareholders of $1.1 million for its first fiscal quarter ended December 31, 2023.

“We are pleased with our first quarter 2024 results. Our business continues to encounter numerous operating challenges resulting from a labor shortage, supply chain issues, inflation, volatility in energy prices, and the impact of rising interest rates. The customer-centric philosophy AMCON embraces has enabled our management team to work closely with our customers to ensure a timely flow of goods and services,” said Christopher H. Atayan, AMCON’s Chairman and Chief Executive Officer. He further noted, “We are actively pursuing strategic acquisition opportunities in the Convenience Distributor and Foodservice sectors.”

“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. Mr. Plummer added, “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 December 31, 2023, our shareholders’ equity was $106.9 million. Our strong liquidity position provided maximum flexibility to take advantage of attractive short-term merchandising opportunities that materialized during the quarter.” Mr. Schmaderer also added, “Our new 175,000 square foot distribution facility in Springfield, Missouri became partially operational in the first fiscal quarter and we will continue to invest in the facility to support our customers’ growth initiatives.”

AMCON, and its subsidiaries Team Sledd, LLC and Henry’s Foods, Inc., 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. Through its Healthy Edge Retail Group, AMCON operates fifteen (15) 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, 2023 and September 30, 2023

 

 

 

 

 

 

 

 

 

 

 

December

 

September

 

 

 

2023

 

2023

 

 

 

(Unaudited)

 

 

 

ASSETS

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

Cash

 

 

$

996,695

 

 

$

790,931

 

Accounts receivable, less allowance for credit losses of $2.3 million at December 2023 and $2.4 million at September 2023

 

 

 

68,822,905

 

 

 

70,878,420

 

Inventories, net

 

 

 

158,167,362

 

 

 

158,582,816

 

Income taxes receivable

 

 

 

1,517,687

 

 

 

1,854,484

 

Prepaid expenses and other current assets

 

 

 

13,926,848

 

 

 

13,564,056

 

Total current assets

 

 

 

243,431,497

 

 

 

245,670,707

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

 

81,730,692

 

 

 

80,607,451

 

Operating lease right-of-use assets, net

 

 

 

23,345,042

 

 

 

23,173,287

 

Goodwill

 

 

 

5,778,325

 

 

 

5,778,325

 

Other intangible assets, net

 

 

 

5,150,510

 

 

 

5,284,935

 

Other assets

 

 

 

2,936,861

 

 

 

2,914,495

 

Total assets

 

 

$

362,372,927

 

 

$

363,429,200

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Accounts payable

 

 

$

44,059,086

 

 

$

43,099,326

 

Accrued expenses

 

 

 

13,788,439

 

 

 

14,922,279

 

Accrued wages, salaries and bonuses

 

 

 

5,160,357

 

 

 

8,886,529

 

Current operating lease liabilities

 

 

 

6,019,749

 

 

 

6,063,048

 

Current maturities of long-term debt

 

 

 

1,972,096

 

 

 

1,955,065

 

Current mandatorily redeemable non-controlling interest

 

 

 

1,757,236

 

 

 

1,703,604

 

Total current liabilities

 

 

 

72,756,963

 

 

 

76,629,851

 

 

 

 

 

 

 

 

 

Credit facilities

 

 

 

140,073,953

 

 

 

140,437,989

 

Deferred income tax liability, net

 

 

 

5,385,163

 

 

 

4,917,960

 

Long-term operating lease liabilities

 

 

 

17,646,454

 

 

 

17,408,758

 

Long-term debt, less current maturities

 

 

 

11,167,890

 

 

 

11,675,439

 

Mandatorily redeemable non-controlling interest, less current portion

 

 

 

7,933,339

 

 

 

7,787,227

 

Other long-term liabilities

 

 

 

523,157

 

 

 

402,882

 

 

 

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

 

 

 

Preferred stock, $.01 par value, 1,000,000 shares authorized

 

 

 

—

 

 

 

—

 

Common stock, $.01 par value, 3,000,000 shares authorized, 630,362 shares outstanding at December 2023 and 608,689 shares outstanding at September 2023

 

 

 

9,648

 

 

 

9,431

 

Additional paid-in capital

 

 

 

32,521,091

 

 

 

30,585,388

 

Retained earnings

 

 

 

105,627,432

 

 

 

104,846,438

 

Treasury stock at cost

 

 

 

(31,272,163

)

 

 

(31,272,163

)

Total shareholders’ equity

 

 

 

106,886,008

 

 

 

104,169,094

 

Total liabilities and shareholders’ equity

 

 

$

362,372,927

 

 

$

363,429,200

 

   

AMCON Distributing Company and Subsidiaries

Condensed Consolidated Unaudited Statements of Operations

for the three months ended December 31, 2023 and 2022

 

 

 

 

 

 

 

 

 

For the three months ended December

 

 

2023

 

2022

Sales (including excise taxes of $138.1 million and $130.3 million, respectively)

 

$

644,959,073

 

 

$

565,989,507

 

Cost of sales

 

 

601,658,151

 

 

 

531,019,924

 

Gross profit

 

 

43,300,922

 

 

 

34,969,583

 

Selling, general and administrative expenses

 

 

37,258,677

 

 

 

28,379,186

 

Depreciation and amortization

 

 

2,219,168

 

 

 

1,070,886

 

 

 

 

39,477,845

 

 

 

29,450,072

 

Operating income

 

 

3,823,077

 

 

 

5,519,511

 

 

 

 

 

 

 

 

Other expense (income):

 

 

 

 

 

 

Interest expense

 

 

2,311,513

 

 

 

1,694,158

 

Change in fair value of mandatorily redeemable non-controlling interest

 

 

199,744

 

 

 

(54,916

)

Other (income), net

 

 

(563,141

)

 

 

(53,532

)

 

 

 

1,948,116

 

 

 

1,585,710

 

Income from operations before income taxes

 

 

1,874,961

 

 

 

3,933,801

 

Income tax expense

 

 

804,000

 

 

 

1,304,800

 

Net income available to common shareholders

 

$

1,070,961

 

 

$

2,629,001

 

 

 

 

 

 

 

 

Basic earnings per share available to common shareholders

 

$

1.80

 

 

$

4.52

 

Diluted earnings per share available to common shareholders

 

$

1.78

 

 

$

4.46

 

 

 

 

 

 

 

 

Basic weighted average shares outstanding

 

 

595,623

 

 

 

581,612

 

Diluted weighted average shares outstanding

 

 

603,300

 

 

 

589,881

 

 

 

 

 

 

 

 

Dividends paid per common share

 

$

0.18

 

 

$

0.18

 

   

AMCON Distributing Company and Subsidiaries

Condensed Consolidated Unaudited Statements of Shareholders’ Equity

for the three months ended December 31, 2023 and 2022

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

 

 

Common Stock

 

Treasury Stock

 

Paid-in

 

Retained

 

 

 

 

 

Shares

 

Amount

 

Shares

 

Amount

 

Capital

 

Earnings

 

Total

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 issuance of stock in connection with 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

THREE MONTHS ENDED DECEMBER 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, October 1, 2023

 

943,272

 

$

9,431

 

(334,583

)

 

$

(31,272,163

)

 

$

30,585,388

 

$

104,846,438

 

 

$

104,169,094

 

Dividends on common stock, $0.46 per share

 

—

 

 

—

 

—

 

 

 

—

 

 

 

—

 

 

(289,967

)

 

 

(289,967

)

Compensation expense and issuance of stock in connection with equity-based awards

 

21,673

 

 

217

 

—

 

 

 

—

 

 

 

1,935,703

 

 

—

 

 

 

1,935,920

 

Net income available to common shareholders

 

—

 

 

—

 

—

 

 

 

—

 

 

 

—

 

 

1,070,961

 

 

 

1,070,961

 

Balance, December 31, 2023

 

964,945

 

$

9,648

 

(334,583

)

 

$

(31,272,163

)

 

$

32,521,091

 

$

105,627,432

 

 

$

106,886,008

 

 

AMCON Distributing Company and Subsidiaries

Condensed Consolidated Unaudited Statements of Cash Flows

for the three months ended December 31, 2023 and 2022

 

 

 

 

 

 

 

 

 

December

 

December

 

 

2023

 

2022

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

Net income available to common shareholders

 

$

1,070,961

 

 

$

2,629,001

 

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

 

 

 

 

 

 

Depreciation

 

 

2,084,743

 

 

 

1,028,353

 

Amortization

 

 

134,425

 

 

 

42,533

 

(Gain) loss on sales of property and equipment

 

 

(53,287

)

 

 

(36,000

)

Equity-based compensation

 

 

571,137

 

 

 

390,570

 

Deferred income taxes

 

 

467,203

 

 

 

1,145,822

 

Provision for credit losses

 

 

(91,969

)

 

 

(496,332

)

Inventory allowance

 

 

30,988

 

 

 

141,087

 

Change in fair value of mandatorily redeemable non-controlling interest

 

 

199,744

 

 

 

(54,916

)

Changes in assets and liabilities:

 

 

 

 

 

 

Accounts receivable

 

 

2,147,484

 

 

 

8,381,282

 

Inventories

 

 

384,466

 

 

 

(50,699,513

)

Prepaid and other current assets

 

 

(362,792

)

 

 

45,110

 

Other assets

 

 

(22,366

)

 

 

199,411

 

Accounts payable

 

 

1,627,403

 

 

 

(6,602,785

)

Accrued expenses and accrued wages, salaries and bonuses

 

 

(3,649,088

)

 

 

(4,794,015

)

Other long-term liabilities

 

 

120,275

 

 

 

48,921

 

Income taxes payable and receivable

 

 

336,797

 

 

 

158,978

 

Net cash flows from (used in) operating activities

 

 

4,996,124

 

 

 

(48,472,493

)

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

Purchase of property and equipment

 

 

(3,947,143

)

 

 

(1,455,405

)

Proceeds from sales of property and equipment

 

 

124,803

 

 

 

36,000

 

Net cash flows from (used in) investing activities

 

 

(3,822,340

)

 

 

(1,419,405

)

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

Borrowings under revolving credit facilities

 

 

603,650,771

 

 

 

639,488,133

 

Repayments under revolving credit facilities

 

 

(604,014,807

)

 

 

(589,262,053

)

Principal payments on long-term debt

 

 

(490,518

)

 

 

(202,396

)

Dividends on common stock

 

 

(113,466

)

 

 

(111,220

)

Net cash flows from (used in) financing activities

 

 

(968,020

)

 

 

49,912,464

 

Net change in cash

 

 

205,764

 

 

 

20,566

 

Cash, beginning of period

 

 

790,931

 

 

 

431,576

 

Cash, end of period

 

$

996,695

 

 

$

452,142

 

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

Cash paid during the period for interest

 

$

2,235,562

 

 

$

1,458,843

 

 

 

 

 

 

 

 

Supplemental disclosure of non-cash information:

 

 

 

 

 

 

Equipment acquisitions classified in accounts payable

 

$

347,891

 

 

$

28,183

 

Dividends declared, not paid

 

 

176,501

 

 

 

3,089,430

 

Issuance of common stock in connection with the vesting of equity-based awards

 

 

1,296,372

 

 

 

2,044,805

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240118483412/en/

Charles J. Schmaderer AMCON Distributing Company Ph 402-331-3727