AMCON Distributing Company (“AMCON”) (NYSE American: DIT), an
Omaha, Nebraska based consumer products company is pleased to
announce fully diluted earnings per share of $5.25 on net income
available to common shareholders of $3.2 million for the fiscal
year ended September 30, 2019. AMCON incurred a loss of $0.41 per
fully diluted share on a net loss available to common shareholders
of $0.2 million for the fourth fiscal quarter ended September 30,
2019.
“We are pleased with our results for fiscal 2019. Our management
philosophy and tradition of sustained excellence in customer
service has positioned AMCON as a leader in the Convenience
Distribution Industry,” said Christopher H. Atayan, AMCON’s
Chairman and Chief Executive Officer. He further noted, “We
continue to expect a heightened level of capital expenditures in
the coming years to support various strategic initiatives such as
enhancements to our foodservice platform, investments in
information technology, expansion of our geographic reach, and the
continued redevelopment of our retail health food stores. In
addition, we are seeking strategic acquisition opportunities.”
The wholesale distribution segment reported revenues of $1.3
billion and operating income of $17.3 million for fiscal 2019, and
revenues and operating income of $356.7 million and $6.2 million,
respectively, for the fourth fiscal quarter of fiscal 2019. The
retail health food segment reported revenues of $44.2 million and
an operating loss of $4.7 million for fiscal 2019, and revenues of
$10.2 million and an operating loss of $4.2 million for the fourth
quarter of fiscal 2019.
“Our customer base is growing and we are expanding our
territories to serve them,” said Andrew C. Plummer, AMCON’s
President and Chief Operating Officer. He further noted, “We
completed the redevelopment of our Bismarck, ND facility in the
second half of the fiscal year and are proud to report the
operational efficiencies and new capabilities these investments are
providing to customers. The fall trade show season was well
received by our customer base and enthusiastically supported by our
vendor community. We are also delighted to announce the promotion
of Douglas Sperry and Chad Pickel to Group Vice Presidents,
reflecting their increased operational roles which span multiple
branches.”
Mr. Plummer further added, “At September 30, 2019, our
shareholders’ equity was $60.8 million, resulting in adjusted book
value per share of $106.56. We turned our inventory 19 times and
consolidated debt was $64.0 million. At its lowest point during
fiscal 2019 our consolidated debt was $16.3 million.”
AMCON’s Healthy Edge Retail Group operates in a highly
competitive and challenging environment. The organic and natural
vendor community has supported our management team’s efforts to
remerchandise our stores. Our strategy is to offer a broad
selection of products supported with customer service as an
alternative to the capital intensive big box retailers in the
segment.
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
www.akins.com in its Midwest market, and Chamberlin's Natural Foods
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
CONSOLIDATED BALANCE
SHEETS
September
September
2019
2018
ASSETS
Current assets:
Cash
$
337,704
$
520,644
Accounts receivable, less allowance for
doubtful accounts of $0.9 million at September 2019 and September
2018
24,665,620
31,428,845
Inventories, net
102,343,517
78,869,615
Income taxes receivable
350,378
272,112
Prepaid and other current assets
7,148,459
4,940,775
Total current assets
134,845,678
116,031,991
Property and equipment, net
17,655,415
15,768,484
Goodwill
4,436,950
4,436,950
Other intangible assets, net
500,000
3,414,936
Other assets
273,579
301,793
Total assets
$
157,711,622
$
139,954,154
LIABILITIES AND SHAREHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
18,647,572
$
20,826,834
Accrued expenses
8,577,972
8,556,620
Accrued wages, salaries and bonuses
3,828,847
3,965,733
Current maturities of long-term debt
532,747
1,096,306
Total current liabilities
31,587,138
34,445,493
Credit facility
60,376,714
35,428,597
Deferred income tax liability, net
1,823,373
1,782,801
Long-term debt, less current
maturities
3,125,644
3,658,391
Other long-term liabilities
42,011
38,055
Shareholders’ equity:
Preferred stock, $.01 par value, 1,000,000
shares authorized
—
—
Common stock, $.01 par value, 3,000,000
shares authorized, 552,614 shares outstanding at September 2019 and
615,777 shares outstanding at September 2018
8,561
8,441
Additional paid-in capital
23,165,639
22,069,098
Retained earnings
66,414,397
63,848,030
Treasury stock at cost
(28,831,855
)
(21,324,752
)
Total shareholders’ equity
60,756,742
64,600,817
Total liabilities and shareholders’
equity
$
157,711,622
$
139,954,154
AMCON Distributing Company and
Subsidiaries
CONSOLIDATED STATEMENTS OF
OPERATIONS
Fiscal Years Ended
September
2019
2018
Sales (including excise taxes of $370.2
million and $368.4 million, respectively)
$
1,392,388,157
$
1,322,306,658
Cost of sales
1,308,364,726
1,245,375,460
Gross profit
84,023,431
76,931,198
Selling, general and administrative
expenses
72,182,883
66,781,234
Depreciation and amortization
2,617,591
2,318,146
Impairment charges
2,873,269
1,912,877
77,673,743
71,012,257
Operating income
6,349,688
5,918,941
Other expense (income):
Interest expense
1,598,864
1,194,373
Other (income), net
(61,119
)
(54,042
)
1,537,745
1,140,331
Income from operations before income
taxes
4,811,943
4,778,610
Income tax expense
1,609,000
1,164,000
Net income available to common
shareholders
$
3,202,943
$
3,614,610
Basic earnings per share available to
common shareholders
$
5.36
$
5.47
Diluted earnings per share available to
common shareholders
$
5.25
$
5.38
Basic weighted average shares
outstanding
597,961
660,925
Diluted weighted average shares
outstanding
609,836
672,449
Dividends declared and paid per common
share
$
1.00
$
1.00
AMCON Distributing Company and
Subsidiaries
CONSOLIDATED STATEMENTS OF
SHAREHOLDERS’ EQUITY
Additional
Common Stock
Treasury Stock
Paid in
Retained
Shares
Amount
Shares
Amount
Capital
Earnings
Total
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, $1.00 per
share
—
—
—
—
—
(702,491
)
(702,491
)
Compensation expense and issuance of stock
in connection with equity-based awards
12,651
127
—
—
1,243,179
—
1,243,306
Repurchase of common stock
—
—
(74,880
)
(7,723,450
)
—
—
(7,723,450
)
Net income
—
—
—
—
—
3,614,610
3,614,610
Balance September 30, 2018
844,089
$
8,441
(228,312
)
$
(21,324,752
)
$
22,069,098
$
63,848,030
$
64,600,817
Dividends on common stock, $1.00 per
share
—
—
—
—
—
(636,576
)
(636,576
)
Compensation expense and issuance of stock
in connection with equity-based awards
11,950
120
—
—
1,096,541
—
1,096,661
Repurchase of common stock
—
—
(75,113
)
(7,507,103
)
—
—
(7,507,103
)
Net income
—
—
—
—
—
3,202,943
3,202,943
Balance, September 30, 2019
856,039
$
8,561
(303,425
)
$
(28,831,855
)
$
23,165,639
$
66,414,397
$
60,756,742
AMCON Distributing Company and
Subsidiaries
CONSOLIDATED STATEMENTS OF
CASH FLOWS
Fiscal Years Ended
September
2019
2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income
$
3,202,943
$
3,614,610
Adjustments to reconcile net income from
operations to net cash flows from (used in) operating
activities:
Depreciation
2,575,924
2,238,771
Amortization
41,667
79,375
Impairment charges
2,873,269
1,912,877
Gain on sales of property and
equipment
(13,775
)
(4,070
)
Equity-based compensation
1,299,792
1,271,840
Deferred income taxes
40,572
(553,462
)
Provision for losses on doubtful
accounts
21,000
90,000
Inventory allowance
560,610
(291,917
)
Other
3,956
3,955
Changes in assets and liabilities:
Accounts receivable
6,742,225
(828,442
)
Inventories
(24,034,512
)
(5,056,917
)
Prepaid and other current assets
(2,207,684
)
(633,032
)
Other assets
28,214
8,695
Accounts payable
(2,247,262
)
3,295,390
Accrued expenses and accrued wages,
salaries and bonuses
(262,330
)
1,563,964
Income taxes receivable
(78,266
)
(816,181
)
Net cash flows from (used in) operating
activities
(11,453,657
)
5,895,456
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment
(4,438,280
)
(3,226,107
)
Proceeds from sales of property and
equipment
57,200
5,800
Net cash flows from (used in) investing
activities
(4,381,080
)
(3,220,307
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under revolving credit
facility
1,427,544,804
1,424,929,646
Repayments under revolving credit
facility
(1,402,596,687
)
(1,418,538,231
)
Principal payments on long-term debt
(1,096,306
)
(541,844
)
Repurchase of common stock
(7,507,103
)
(7,723,450
)
Dividends on common stock
(636,576
)
(702,491
)
Withholdings on the exercise of
equity-based awards
(56,335
)
(101,200
)
Net cash flows from (used in) financing
activities
15,651,797
(2,677,570
)
Net change in cash
(182,940
)
(2,421
)
Cash, beginning of period
520,644
523,065
Cash, end of period
$
337,704
$
520,644
Supplemental disclosure of cash flow
information:
Cash paid during the period for
interest
$
1,561,531
$
1,137,691
Cash paid during the period for income
taxes
1,646,694
2,533,643
Supplemental disclosure of non-cash
information:
Equipment acquisitions classified in
accounts payable
$
69,253
$
1,253
Purchase of property financed with
debt
—
1,575,000
Acquisition of assets financed with
debt
—
699,717
Issuance of common stock in connection
with the vesting and exercise of equity-based awards
1,005,792
1,183,091
AMCON Distributing Company and
Subsidiaries
FISCAL YEAR 2019
(dollars in thousands, except per share
data)
First
Second
Third
Fourth
Sales
$
344,734
$
310,716
$
369,982
$
366,957
Gross profit
20,632
20,589
20,526
22,276
Income (loss) from operations before
income tax expense
1,747
2,196
1,027
(158
)
Net income (loss) available to common
shareholders
$
1,245
$
1,523
$
666
$
(231
)
Basic earnings (loss) per share available
to common shareholders
$
2.02
$
2.49
$
1.12
$
(.41
)
Diluted earnings (loss) per share
available to common shareholders
$
1.99
$
2.45
$
1.10
$
(.41
)
FISCAL YEAR 2018
(dollars in thousands, except per share
data)
First
Second
Third
Fourth
Sales
$
315,513
$
295,207
$
349,043
$
362,543
Gross profit
18,192
17,066
19,113
22,560
Income from operations before income tax
expense
1,110
623
1,247
1,799
Net income available to common
shareholders
$
1,480
$
339
$
785
$
1,011
Basic earnings per share available to
common shareholders
$
2.15
$
0.49
$
1.21
$
1.64
Diluted earnings per share available to
common shareholders
$
2.13
$
0.49
$
1.18
$
1.60
The Company’s quarterly earnings per share are based on weighted
average shares outstanding for the quarter; therefore the sum of
the quarters may not equal the full year earnings per share
amount.
AMCON Distributing Company and
Subsidiaries
GAAP Reconciliation and Management Explanation of Non-GAAP
Financial Measures
The financial measure of adjusted book value per share included
in this press release (“adjusted book value per share”) has been
determined by methods other than in accordance with U.S. generally
accepted accounting principles (“GAAP”). Management believes that
this non-GAAP financial measurement reflects an additional way of
viewing aspects of the Company’s business that, when viewed
together with its financial results computed in accordance with
GAAP, provides a more complete understanding of factors affecting
historical financial performance of the Company. This measure is
important to investors interested in determining the amount of book
value per share if all potentially dilutive shares were exercised
or vested and outstanding. This non-GAAP financial measurement is
not intended to be a substitute for the comparable GAAP
measurements and should be read only in conjunction with our
consolidated financial statements prepared in accordance with
GAAP.
The Company has defined the non-GAAP financial measure of
adjusted book value per share as follows:
- “Adjusted book value per share” is defined as total
shareholders’ equity increased by the impact of proceeds from the
exercise of all stock options and vesting of restricted stock units
divided by total common shares outstanding plus common shares
issuable upon the exercise of all stock options and vesting of
restricted stock units.”
September 2019
Number of common shares outstanding at
September 30, 2019
552,614
Total shareholders’ equity at September
30, 2019
$
60,756,742
Book value per share at September 30,
2019
$
109.94
September 2019
Number of common shares outstanding at
September 30, 2019
552,614
Add: common shares potentially issuable
for stock options and unvested restricted stock units /1/
64,601
617,215
Total shareholders’ equity at September
30, 2019
$
60,756,742
Equity impact if all potential common
shares were exercised or vested /1/
5,013,915
$
65,770,657
Adjusted book value per share at September
30, 2019
$
106.56
/1/
Assumes the exercise of all vested and
unvested stock options and vesting of all outstanding restricted
stock units at September 30, 2019.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20191108005613/en/
Christopher H. Atayan AMCON Distributing Company Ph
402-331-3727
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