DIT AMCON Distributing Co

AMCON Distributing Company (“AMCON” or “the Company”) (NYSE American: DIT), an Omaha, Nebraska based Convenience and Foodservice Distributor, is pleased to announce fully diluted earnings per share of $2.46 on net income available to common shareholders of $1.5 million for its third fiscal quarter ended June 30, 2024.

“AMCON’s customer-centric philosophy is a competitive advantage in this economic environment, as our customers rely on our ability to deliver a timely flow of goods and services. Foodservice, technology platforms, and associated staffing for these strategic areas are a central focus of our management team. We are committed to making the investments necessary to compete in the marketplace,” said Christopher H. Atayan, AMCON’s Chairman and Chief Executive Officer. He further noted, “We welcome our new team members and customers from our recently completed acquisition of Richmond Master Distributors, Inc. AMCON is committed to pursuing strategic acquisition opportunities in the Convenience Distributor and Foodservice sectors.”

“Labor shortages, supply chain issues, inflation, volatility in energy prices, and the impact of rising interest rates continue to present challenges for our business,” said Andrew C. Plummer, AMCON’s President and Chief Operating Officer. Mr. Plummer added, “Our recent acquisitions have enhanced our geographic reach to better serve our customers as they grow their store footprints.”

Charles J. Schmaderer, AMCON’s Chief Financial Officer said, “Sales for the fiscal quarter ended June 30, 2024 were $717.9 million and the Company ended the fiscal period with total shareholders’ equity of approximately $110.0 million. We continue to maintain a strong liquidity position and recent amendments to our bank credit facilities provided additional flexibility to pursue our strategic objectives that materialized during the quarter.” Mr. Schmaderer also added, “We continue to invest in the final completion of our 175,000 square foot distribution facility in Springfield, Missouri. In addition, we are also deploying capital in enhanced foodservice capabilities in our recently purchased 250,000 square foot distribution facility in Colorado City, Colorado, and we opened a new retail location in Lakewood Ranch, Florida.”

AMCON, and its subsidiaries Team Sledd, LLC and Henry’s Foods, Inc., is a leading Convenience and Foodservice Distributor of consumer products, including beverages, candy, tobacco, groceries, foodservice, frozen and refrigerated foods, automotive supplies and health and beauty care products with thirteen (13) distribution centers in Colorado, Illinois, Indiana, 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

June 30, 2024 and September 30, 2023

 

 

 

 

 

 

 

 

 

June

 

September

 

 

2024

 

2023

 

 

(Unaudited)

 

 

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash

 

$

719,342

 

 

$

790,931

 

Accounts receivable, less allowance for credit losses of $2.5 million at June 2024 and $2.4 million at September 2023

 

 

80,469,376

 

 

 

70,878,420

 

Inventories, net

 

 

160,778,835

 

 

 

158,582,816

 

Income taxes receivable

 

 

330,170

 

 

 

1,854,484

 

Prepaid expenses and other current assets

 

 

15,991,451

 

 

 

13,564,056

 

Total current assets

 

 

258,289,174

 

 

 

245,670,707

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

103,989,865

 

 

 

80,607,451

 

Operating lease right-of-use assets, net

 

 

24,710,670

 

 

 

23,173,287

 

Goodwill

 

 

5,778,325

 

 

 

5,778,325

 

Other intangible assets, net

 

 

4,881,659

 

 

 

5,284,935

 

Other assets

 

 

2,954,262

 

 

 

2,914,495

 

Total assets

 

$

400,603,955

 

 

$

363,429,200

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

46,249,366

 

 

$

43,099,326

 

Accrued expenses

 

 

16,590,155

 

 

 

14,922,279

 

Accrued wages, salaries and bonuses

 

 

8,168,882

 

 

 

8,886,529

 

Current operating lease liabilities

 

 

6,662,109

 

 

 

6,063,048

 

Current maturities of long-term debt

 

 

5,335,127

 

 

 

1,955,065

 

Current mandatorily redeemable non-controlling interest

 

 

1,651,608

 

 

 

1,703,604

 

Total current liabilities

 

 

84,657,247

 

 

 

76,629,851

 

 

 

 

 

 

 

 

Credit facilities

 

 

156,941,944

 

 

 

140,437,989

 

Deferred income tax liability, net

 

 

4,594,841

 

 

 

4,917,960

 

Long-term operating lease liabilities

 

 

18,358,088

 

 

 

17,408,758

 

Long-term debt, less current maturities

 

 

17,917,378

 

 

 

11,675,439

 

Mandatorily redeemable non-controlling interest, less current portion

 

 

6,497,523

 

 

 

7,787,227

 

Other long-term liabilities

 

 

1,669,817

 

 

 

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 June 2024 and 608,689 shares outstanding at September 2023

 

 

9,648

 

 

 

9,431

 

Additional paid-in capital

 

 

33,800,187

 

 

 

30,585,388

 

Retained earnings

 

 

107,429,445

 

 

 

104,846,438

 

Treasury stock at cost

 

 

(31,272,163

)

 

 

(31,272,163

)

Total shareholders’ equity

 

 

109,967,117

 

 

 

104,169,094

 

Total liabilities and shareholders’ equity

 

$

400,603,955

 

 

$

363,429,200

AMCON Distributing Company and Subsidiaries

Condensed Consolidated Unaudited Statements of Operations

for the three and nine months ended June 30, 2024 and 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended June

 

For the nine months ended June

 

 

2024

 

2023

 

2024

 

2023

Sales (including excise taxes of $150.2 and $153.7 million, and $415.7 and $414.9 million, respectively)

 

$

717,852,293

 

 

$

696,489,427

 

 

$

1,964,688,673

 

 

$

1,847,472,782

 

Cost of sales

 

 

669,893,539

 

 

 

649,623,651

 

 

 

1,831,118,129

 

 

 

1,724,504,862

 

Gross profit

 

 

47,958,754

 

 

 

46,865,776

 

 

 

133,570,544

 

 

 

122,967,920

 

Selling, general and administrative expenses

 

 

39,920,976

 

 

 

36,851,520

 

 

 

113,857,467

 

 

 

99,227,695

 

Depreciation and amortization

 

 

2,415,158

 

 

 

2,103,429

 

 

 

6,923,716

 

 

 

4,982,068

 

 

 

 

42,336,134

 

 

 

38,954,949

 

 

 

120,781,183

 

 

 

104,209,763

 

Operating income

 

 

5,622,620

 

 

 

7,910,827

 

 

 

12,789,361

 

 

 

18,758,157

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other expense (income):

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

2,903,925

 

 

 

2,385,842

 

 

 

7,463,175

 

 

 

6,249,540

 

Change in fair value of mandatorily redeemable non-controlling interest

 

 

393,324

 

 

 

698,571

 

 

 

727,457

 

 

 

864,684

 

Other (income), net

 

 

(78,903

)

 

 

(931,765

)

 

 

(833,050

)

 

 

(1,159,021

)

 

 

 

3,218,346

 

 

 

2,152,648

 

 

 

7,357,582

 

 

 

5,955,203

 

Income from operations before income taxes

 

 

2,404,274

 

 

 

5,758,179

 

 

 

5,431,779

 

 

 

12,802,954

 

Income tax expense

 

 

914,875

 

 

 

1,813,800

 

 

 

2,331,875

 

 

 

4,164,000

 

Net income available to common shareholders

 

$

1,489,399

 

 

$

3,944,379

 

 

$

3,099,904

 

 

$

8,638,954

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share available to common shareholders

 

$

2.48

 

 

$

6.74

 

 

$

5.18

 

 

$

14.78

 

Diluted earnings per share available to common shareholders

 

$

2.46

 

 

$

6.59

 

 

$

5.11

 

 

$

14.56

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic weighted average shares outstanding

 

 

600,161

 

 

 

585,625

 

 

 

598,637

 

 

 

584,359

 

Diluted weighted average shares outstanding

 

 

606,252

 

 

 

598,590

 

 

 

606,151

 

 

 

593,480

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends paid per common share

 

$

0.18

 

 

$

0.18

 

 

$

0.82

 

 

$

5.54

 

AMCON Distributing Company and Subsidiaries

Condensed Consolidated Unaudited Statements of Shareholders’ Equity

for the three and nine months ended June 30, 2024 and 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

 

 

Common Stock

 

Treasury Stock

 

Paid-in

 

Retained

 

 

 

 

 

Shares

 

Amount

 

Shares

 

Amount

 

Capital

 

Earnings

 

Total

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 common 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

THREE MONTHS ENDED JUNE 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, April 1, 2024

 

964,945

 

$

9,648

 

(334,583

)

 

$

(31,272,163

)

 

$

33,160,639

 

$

106,053,510

 

 

$

107,951,634

 

Dividends on common stock, $0.18 per share

 

—

 

 

—

 

—

 

 

 

—

 

 

 

—

 

 

(113,464

)

 

 

(113,464

)

Compensation expense related to equity-based awards

 

—

 

 

—

 

—

 

 

 

—

 

 

 

639,548

 

 

—

 

 

 

639,548

 

Net income available to common shareholders

 

—

 

 

—

 

—

 

 

 

—

 

 

 

—

 

 

1,489,399

 

 

 

1,489,399

 

Balance, June 30, 2024

 

964,945

 

$

9,648

 

(334,583

)

 

$

(31,272,163

)

 

$

33,800,187

 

$

107,429,445

 

 

$

109,967,117

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

 

 

Common Stock

 

Treasury Stock

 

Paid-in

 

Retained

 

 

 

 

 

Shares

 

Amount

 

Shares

 

Amount

 

Capital

 

Earnings

 

Total

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 issuance of stock in connection with equity-based awards

 

26,263

 

 

263

 

—

 

 

 

—

 

 

 

3,272,776

 

 

—

 

 

 

3,273,039

 

Committed repurchase of common 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NINE MONTHS ENDED JUNE 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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, $0.82 per share

 

—

 

 

—

 

—

 

 

 

—

 

 

 

—

 

 

(516,897

)

 

 

(516,897

)

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

 

21,673

 

 

217

 

—

 

 

 

—

 

 

 

3,214,799

 

 

—

 

 

 

3,215,016

 

Net income available to common shareholders

 

—

 

 

—

 

—

 

 

 

—

 

 

 

—

 

 

3,099,904

 

 

 

3,099,904

 

Balance, June 30, 2024

 

964,945

 

$

9,648

 

(334,583

)

 

$

(31,272,163

)

 

$

33,800,187

 

$

107,429,445

 

 

$

109,967,117

 

AMCON Distributing Company and Subsidiaries

Condensed Consolidated Unaudited Statements of Cash Flows

for the nine months ended June 30, 2024 and 2023

 

 

 

 

 

 

 

 

 

June

 

June

 

 

2024

 

2023

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

Net income available to common shareholders

 

$

3,099,904

 

 

$

8,638,954

 

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

 

 

 

 

 

 

Depreciation

 

 

6,520,440

 

 

 

4,701,316

 

Amortization

 

 

403,276

 

 

 

280,752

 

(Gain) loss on sales of property and equipment

 

 

(141,522

)

 

 

(133,159

)

Equity-based compensation

 

 

1,850,233

 

 

 

1,940,631

 

Deferred income taxes

 

 

(323,119

)

 

 

809,616

 

Provision for credit losses

 

 

131.132

 

 

 

(7,697

)

Inventory allowance

 

 

175,706

 

 

 

442,603

 

Change in fair value of contingent consideration

 

 

45,362

 

 

 

—

 

Change in fair value of mandatorily redeemable non-controlling interest

 

 

727,457

 

 

 

864,684

 

Changes in assets and liabilities, net of effects of business combinations:

 

 

 

 

 

 

Accounts receivable

 

 

(4,110,926

)

 

 

(8,026,950

)

Inventories

 

 

12,365,936

 

 

 

(12,294,118

)

Prepaid and other current assets

 

 

(999,319

)

 

 

(745,490

)

Other assets

 

 

(39,767

)

 

 

(569,683

)

Accounts payable

 

 

4,082,394

 

 

 

10,360,228

 

Accrued expenses and accrued wages, salaries and bonuses

 

 

1,112,351

 

 

 

1,487,971

 

Other long-term liabilities

 

 

446,831

 

 

 

185,704

 

Income taxes payable and receivable

 

 

1,524,314

 

 

 

1,572,253

 

Net cash flows from (used in) operating activities

 

 

26,870,683

 

 

 

9,507,615

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

Purchase of property and equipment

 

 

(16,793,486

)

 

 

(6,759,929

)

Proceeds from sales of property and equipment

 

 

306,748

 

 

 

151,307

 

Acquisition of Burklund

 

 

(15,464,397

)

 

 

—

 

Acquisition of Richmond Master

 

 

(6,631,039

)

 

 

—

 

Acquisition of Henry's

 

 

—

 

 

 

(54,865,303

)

Net cash flows from (used in) investing activities

 

 

(38,582,174

)

 

 

(61,473,925

)

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

Borrowings under revolving credit facilities

 

 

1,845,255,576

 

 

 

1,863,027,754

 

Repayments under revolving credit facilities

 

 

(1,828,751,621

)

 

 

(1,810,914,231

)

Proceeds from borrowings on long-term debt

 

 

—

 

 

 

7,000,000

 

Principal payments on long-term debt

 

 

(2,277,999

)

 

 

(1,011,559

)

Dividends on common stock

 

 

(516,897

)

 

 

(3,423,089

)

Redemption and distributions to non-controlling interest

 

 

(2,069,157

)

 

 

(2,405,128

)

Net cash flows from (used in) financing activities

 

 

11,639,902

 

 

 

52,273,747

 

Net change in cash

 

 

(71,589

)

 

 

307,437

 

Cash, beginning of period

 

 

790,931

 

 

 

431,576

 

Cash, end of period

 

$

719,342

 

 

$

739,013

 

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

Cash paid during the period for interest, net of amounts capitalized

 

$

6,976,501

 

 

$

5,824,144

 

Cash paid during the period for income taxes, net of refunds

 

 

1,066,105

 

 

 

1,780,000

 

 

 

 

 

 

 

 

Supplemental disclosure of non-cash information:

 

 

 

 

 

 

Equipment acquisitions classified in accounts payable

 

$

83,180

 

 

$

1,622,224

 

Committed repurchase of treasury stock

 

 

—

 

 

 

404,876

 

Purchase of property financed with promissory note

 

 

8,000,000

 

 

 

—

 

Portion of Burklund acquisition financed with promissory note

 

 

3,900,000

 

 

 

—

 

Portion of Burklund acquisition financed with contingent consideration

 

 

1,578,444

 

 

 

—

 

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/20240718546002/en/

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