DIT AMCON Distributing Co

AMCON Distributing Company (“AMCON”) (NYSE American: DIT), an Omaha, Nebraska based consumer products company is pleased to announce fully diluted earnings per share of $1.10 on net income available to common shareholders of $0.7 million for its third fiscal quarter ended June 30, 2019.

“AMCON’s emphasis on first class service and reliability is a firm part of our tradition as a leader in the convenience distribution industry. Our leadership team is proactively evaluating strategic facility initiatives to support the growth needs and competitive position of our customer base. As such, we will continue to enthusiastically make investments in people, facilities, and equipment necessary for sustained excellence,” said Christopher H. Atayan, AMCON’s Chairman and Chief Executive Officer. He further noted, “Our Healthy Edge Retail Group management team is planning a comprehensive merchandising and point of sale solution to support our objective of being a total wellness solution for our customers.”

“We collaborate closely with our customers to design cutting edge foodservice programs that are competitive and profitable for our customers. Our portfolio of foodservice warehouse and fleet assets positions us as a leader in the convenience distribution industry,” said Andrew C. Plummer, AMCON’s President and Chief Operating Officer. In addition, he noted, “As the convenience industry consolidates, AMCON’s platform of technology and history of customer service position the business well for strategic acquisitions.” Mr. Plummer further added, “We were pleased to close June 30, 2019 with total shareholders’ equity of $65.4 million and consolidated debt of $36.2 million.”

AMCON is a leading wholesale distributor of consumer products, including beverages, candy, tobacco, groceries, foodservice, frozen and chilled foods, and health and beauty care products with locations in Illinois, Missouri, Nebraska, North Dakota, South Dakota and Tennessee. AMCON also operates twenty-two (22) health and natural product retail stores in the Midwest and Florida. The retail stores operate under the names Akin’s Natural Foods Market www.akins.com in its Midwest market, and Chamberlin's Market & Cafe www.chamberlins.com and Earth Origins Market www.earthoriginsmarket.com in its Florida market.

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, 2019 and September 30, 2018

 

 

 

June

 

September

 

 

2019

 

2018

 

 

(Unaudited)

 

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash

 

$

314,007

 

 

$

520,644

 

Accounts receivable, less allowance for doubtful accounts of $1.0 million at June 2019 and $0.9 million at September 2018

 

 

34,459,786

 

 

 

31,428,845

 

Inventories, net

 

 

66,946,540

 

 

 

78,869,615

 

Income taxes receivable

 

 

114,276

 

 

 

272,112

 

Prepaid and other current assets

 

 

10,638,796

 

 

 

4,940,775

 

Total current assets

 

 

112,473,405

 

 

 

116,031,991

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

17,376,511

 

 

 

15,768,484

 

Goodwill

 

 

4,436,950

 

 

 

4,436,950

 

Other intangible assets, net

 

 

3,373,269

 

 

 

3,414,936

 

Other assets

 

 

282,081

 

 

 

301,793

 

Total assets

 

$

137,942,216

 

 

$

139,954,154

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

23,403,140

 

 

$

20,826,834

 

Accrued expenses

 

 

8,604,004

 

 

 

8,556,620

 

Accrued wages, salaries and bonuses

 

 

2,376,347

 

 

 

3,965,733

 

Current maturities of long-term debt

 

 

808,103

 

 

 

1,096,306

 

Total current liabilities

 

 

35,191,594

 

 

 

34,445,493

 

 

 

 

 

 

 

 

Credit facility

 

 

32,114,531

 

 

 

35,428,597

 

Deferred income tax liability, net

 

 

1,895,240

 

 

 

1,782,801

 

Long-term debt, less current maturities

 

 

3,260,455

 

 

 

3,658,391

 

Other long-term liabilities

 

 

41,022

 

 

 

38,055

 

 

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

 

 

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

 

 

—

 

 

—

Common stock, $.01 par value, 3,000,000 shares authorized, 592,767 shares outstanding at June 2019 and 615,777 shares outstanding at September 2018

 

 

8,561

 

 

 

8,441

 

Additional paid-in capital

 

 

23,185,173

 

 

 

22,069,098

 

Retained earnings

 

 

66,757,379

 

 

 

63,848,030

 

Treasury stock at cost

 

 

(24,511,739

)

 

 

(21,324,752

)

Total shareholders’ equity

 

 

65,439,374

 

 

 

64,600,817

 

Total liabilities and shareholders’ equity

 

$

137,942,216

 

 

$

139,954,154

 

AMCON Distributing Company and Subsidiaries Condensed Consolidated Unaudited Statements of Operations for the three and nine months ended June 30, 2019 and 2018

 

 

 

For the three months ended June

 

For the nine months ended June

 

 

2019

 

2018

 

2019

 

2018

Sales (including excise taxes of $98.0 million and $96.2 million, and $274.0 million and $267.9 million, respectively)

 

$

369,981,516

 

 

$

349,043,200

 

 

$

1,025,431,309

 

 

$

959,763,695

 

Cost of sales

 

 

349,455,624

 

 

 

329,930,190

 

 

 

963,683,859

 

 

 

905,392,747

 

Gross profit

 

 

20,525,892

 

 

 

19,113,010

 

 

 

61,747,450

 

 

 

54,370,948

 

Selling, general and administrative expenses

 

 

18,513,048

 

 

 

17,008,355

 

 

 

53,861,943

 

 

 

48,981,383

 

Depreciation and amortization

 

 

620,142

 

 

 

614,710

 

 

 

1,869,378

 

 

 

1,683,618

 

 

 

 

19,133,190

 

 

 

17,623,065

 

 

 

55,731,321

 

 

 

50,665,001

 

Operating income

 

 

1,392,702

 

 

 

1,489,945

 

 

 

6,016,129

 

 

 

3,705,947

 

 

 

 

 

 

 

 

 

 

Other expense (income):

 

 

 

 

 

 

 

 

Interest expense

 

 

381,469

 

 

 

261,510

 

 

 

1,100,995

 

 

 

777,065

 

Other (income), net

 

 

(15,446

)

 

 

(18,615

)

 

 

(55,081

)

 

 

(51,158

)

 

 

 

366,023

 

 

 

242,895

 

 

 

1,045,914

 

 

 

725,907

 

Income from operations before income taxes

 

 

1,026,679

 

 

 

1,247,050

 

 

 

4,970,215

 

 

 

2,980,040

 

Income tax expense

 

 

361,000

 

 

 

462,000

 

 

 

1,536,000

 

 

 

376,000

 

Net income available to common shareholders

 

$

665,679

 

 

$

785,050

 

 

$

3,434,215

 

 

$

2,604,040

 

 

 

 

 

 

 

 

 

 

Basic earnings per share available to common shareholders

 

$

1.12

 

 

$

1.21

 

 

$

5.65

 

 

$

3.85

 

Diluted earnings per share available to common shareholders

 

$

1.10

 

 

$

1.18

 

 

$

5.56

 

 

$

3.79

 

 

 

 

 

 

 

 

 

 

Basic weighted average shares outstanding

 

 

592,768

 

 

 

651,170

 

 

 

607,505

 

 

 

676,103

 

Diluted weighted average shares outstanding

 

 

606,278

 

 

 

664,688

 

 

 

617,887

 

 

 

686,576

 

 

 

 

 

 

 

 

 

 

Dividends declared and paid per common share

 

$

0.18

 

 

$

0.18

 

 

$

0.82

 

 

$

0.82

 

AMCON Distributing Company and Subsidiaries Condensed Consolidated Unaudited Statements of Shareholders’ Equity for the three and nine months ended June 30, 2019 and 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

 

 

Common Stock

 

Treasury Stock

 

Paid in

 

Retained

 

 

 

 

 

Shares

 

Amount

 

Shares

 

Amount

 

Capital

 

Earnings

 

Total

THREE MONTHS ENDED JUNE 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, April 1, 2018

 

844,089

 

$

8,441

 

(160,085

)

 

$

(14,245,830

)

 

$

22,036,562

 

$

62,296,042

 

 

$

70,095,215

 

Dividends on common stock, $0.18 per share

 

—

 

 

—

 

—

 

 

—

 

 

—

 

 

(127,937

)

 

 

(127,937

)

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

 

—

 

 

—

 

—

 

 

—

 

 

5,593

 

 

—

 

 

5,593

 

Repurchase of common stock

 

—

 

 

—

 

(68,016

)

 

 

(7,059,864

)

 

 

—

 

 

—

 

 

(7,059,864

)

Net income

 

—

 

 

—

 

—

 

 

—

 

 

—

 

 

785,050

 

 

 

785,050

 

Balance, June 30, 2018

 

844,089

 

$

8,441

 

(228,101

)

 

$

(21,305,694

)

 

$

22,042,155

 

$

62,953,155

 

 

$

63,698,057

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

THREE MONTHS ENDED JUNE 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, April 1, 2019

 

856,039

 

$

8,561

 

(263,271

)

 

$

(24,511,598

)

 

$

23,148,372

 

$

66,203,466

 

 

$

64,848,801

 

Dividends on common stock, $0.18 per share

 

—

 

 

—

 

—

 

 

—

 

 

—

 

 

(111,766

)

 

 

(111,766

)

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

 

—

 

 

—

 

—

 

 

—

 

 

36,801

 

 

—

 

 

36,801

 

Repurchase of common stock

 

—

 

 

—

 

(1

)

 

 

(141

)

 

 

—

 

 

—

 

 

(141

)

Net income

 

—

 

 

—

 

—

 

 

—

 

 

—

 

 

665,679

 

 

 

665,679

 

Balance, June 30, 2019

 

856,039

 

$

8,561

 

(263,272

)

 

$

(24,511,739

)

 

$

23,185,173

 

$

66,757,379

 

 

$

65,439,374

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

 

 

Common Stock

 

Treasury Stock

 

Paid in

 

Retained

 

 

 

 

 

Shares

 

Amount

 

Shares

 

Amount

 

Capital

 

Earnings

 

Total

NINE MONTHS ENDED JUNE 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, October 1, 2017

 

831,438

 

$

8,314

 

(153,432

)

 

$

(13,601,302

)

 

$

20,825,919

 

$

60,935,911

 

 

$

68,168,842

 

Dividends on common stock, $0.82 per share

 

—

 

 

—

 

—

 

 

—

 

 

—

 

 

(586,796

)

 

 

(586,796

)

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

 

12,651

 

 

127

 

—

 

 

—

 

 

1,216,236

 

 

—

 

 

1,216,363

 

Repurchase of common stock

 

—

 

 

—

 

(74,669

)

 

 

(7,704,392

)

 

 

—

 

 

—

 

 

(7,704,392

)

Net income

 

—

 

 

—

 

—

 

 

—

 

 

—

 

 

2,604,040

 

 

 

2,604,040

 

Balance, June 30, 2018

 

844,089

 

$

8,441

 

(228,101

)

 

$

(21,305,694

)

 

$

22,042,155

 

$

62,953,155

 

 

$

63,698,057

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NINE MONTHS ENDED JUNE 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, October 1, 2018

 

844,089

 

$

8,441

 

(228,312

)

 

$

(21,324,752

)

 

$

22,069,098

 

$

63,848,030

 

 

$

64,600,817

 

Dividends on common stock, $0.82 per share

 

—

 

 

—

 

—

 

 

—

 

 

—

 

 

(524,866

)

 

 

(524,866

)

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

 

11,950

 

 

120

 

—

 

 

—

 

 

1,116,075

 

 

—

 

 

1,116,195

 

Repurchase of common stock

 

—

 

 

—

 

(34,960

)

 

 

(3,186,987

)

 

 

—

 

 

—

 

 

(3,186,987

)

Net income

 

—

 

 

—

 

—

 

 

—

 

 

—

 

 

3,434,215

 

 

 

3,434,215

 

Balance, June 30, 2019

 

856,039

 

$

8,561

 

(263,272

)

 

$

(24,511,739

)

 

$

23,185,173

 

$

66,757,379

 

 

$

65,439,374

 

AMCON Distributing Company and Subsidiaries Condensed Consolidated Unaudited Statements of Cash Flows for the nine months ended June 30, 2019 and 2018

 

 

June

 

June

 

 

2019

 

2018

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

Net income

 

$

3,434,215

 

 

$

2,604,040

 

Adjustments to reconcile net income from operations to net cash flows from

operating activities:

 

 

 

 

 

 

Depreciation

 

 

1,827,711

 

 

 

1,619,868

 

Amortization

 

 

41,667

 

 

 

63,750

 

Gain on sales of property and equipment

 

 

(15,376

)

 

 

(5,300

)

Equity-based compensation

 

 

1,035,128

 

 

 

957,656

 

Deferred income taxes

 

 

112,439

 

 

 

(672,431

)

Provision for losses on doubtful accounts

 

 

179,000

 

 

 

23,000

 

Inventory allowance

 

 

454,357

 

 

 

(267,389

)

Other

 

 

2,967

 

 

 

2,967

 

 

 

 

 

 

 

 

Changes in assets and liabilities:

 

 

 

 

 

 

Accounts receivable

 

 

(3,209,941

)

 

 

(3,276,391

)

Inventories

 

 

11,468,718

 

 

 

22,167,954

 

Prepaid and other current assets

 

 

(5,698,021

)

 

 

(5,843,877

)

Other assets

 

 

19,712

 

 

 

(4,928

)

Accounts payable

 

 

2,485,721

 

 

 

1,584,358

 

Accrued expenses and accrued wages, salaries and bonuses

 

 

(1,460,935

)

 

 

125,758

 

Income taxes receivable

 

 

157,836

 

 

 

11,751

 

Net cash flows from operating activities

 

 

10,835,198

 

 

 

19,090,786

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

Purchase of property and equipment

 

 

(3,385,977

)

 

 

(2,120,358

)

Proceeds from sales of property and equipment

 

 

56,200

 

 

 

5,300

 

Net cash flows (used in) investing activities

 

 

(3,329,777

)

 

 

(2,115,058

)

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

Borrowings under revolving credit facility

 

 

1,022,309,940

 

 

 

1,043,415,401

 

Repayments under revolving credit facility

 

 

(1,025,624,006

)

 

 

(1,051,967,147

)

Principal payments on long-term debt

 

 

(686,139

)

 

 

(279,339

)

Repurchase of common stock

 

 

(3,186,987

)

 

 

(7,704,392

)

Dividends on common stock

 

 

(524,866

)

 

 

(586,796

)

Withholdings on the exercise of equity-based awards

 

 

—

 

 

(101,200

)

Net cash flows (used in) financing activities

 

 

(7,712,058

)

 

 

(17,223,473

)

Net change in cash

 

 

(206,637

)

 

 

(247,745

)

Cash, beginning of period

 

 

520,644

 

 

 

523,065

 

Cash, end of period

 

$

314,007

 

 

$

275,320

 

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

Cash paid during the period for interest

 

$

1,140,562

 

 

$

764,557

 

Cash paid during the period for income taxes

 

 

1,265,725

 

 

 

1,036,680

 

 

 

 

 

 

 

 

Supplemental disclosure of non-cash information:

 

 

 

 

 

 

Equipment acquisitions classified in accounts payable

 

$

91,838

 

 

$

8,203

 

Issuance of common stock in connection with the vesting and exercise of

equity-based awards

 

 

1,005,792

 

 

 

1,183,091

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20190718005759/en/

Christopher H. Atayan AMCON Distributing Company Ph 402-331-3727