AMCON Distributing Company (“AMCON”) (NYSE American: DIT), an
Omaha, Nebraska based consumer products company is pleased to
announce fully diluted earnings per share of $1.22 on net income
available to common shareholders of $0.7 million for its second
fiscal quarter ended March 31, 2020.
“Both of AMCON’s business segments are open for business. We are
fully committed to our employees’ and customers’ success and safety
during the rapidly evolving COVID-19 situation. While many of the
states in which we operate have shelter in place orders, AMCON is
an essential service provider and a key component of the United
States supply chain as a distributor to convenience stores, truck
stops, rural grocery stores as well as our role as a health food
retailer,” said Christopher H. Atayan, AMCON’s Chairman and Chief
Executive Officer. Atayan also noted, “Our Bank Group provided an
expanded 5-year credit facility and on April 1, 2020 we
successfully closed on our investment in Team Sledd, both of which
further our long term strategic objectives. We welcome all the Team
Sledd Associates, Customers and Vendors to the AMCON
Community.”
“AMCON’s deepest sympathies go out to all who have been impacted
by the coronavirus outbreaks. We want to thank our Associates who
worked tirelessly during these challenging times to ensure our
customers and communities had the essential products and supplies
they need. Our management teams’ first priority is to maintain the
continuity of our workforce and our employee’s safety in order to
best serve our customers’ interests. Our team has worked diligently
addressing simultaneous supply chain challenges that impacted the
entire United States as several industry suppliers’ temporarily
shut down during the COVID-19 crisis,” said Andrew C. Plummer,
AMCON’s President and Chief Operating Officer. Plummer also noted,
“Our team built and operated a Virtual Trade Show on short notice,
as the governmental restrictions on large meetings made the
traditional Spring Trade Show not possible. The customer response
to the Virtual Trade Show was excellent and we built solid momentum
going forward. We were pleased to close March 31, 2020 with
shareholders’ equity of $62.6 million and consolidated debt of
$46.6 million.”
The wholesale distribution segment reported revenues of $324.9
million and operating income of $2.9 million for the second quarter
of fiscal 2020. The retail health food segment reported revenues of
$13.0 million and operating income of $0.1 million for the second
quarter of fiscal 2020.
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’s Healthy Edge Retail Group also
operates twenty-one (21) 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
Condensed Consolidated Balance
Sheets
March 31, 2020 and September
30, 2019
March
September
2020
2019
(Unaudited)
ASSETS
Current assets:
Cash
$
661,957
$
337,704
Accounts receivable, less allowance for
doubtful accounts of $1.3 million at March 2020 and $0.9 million at
September 2019
27,811,495
24,665,620
Inventories, net
84,912,508
102,343,517
Income taxes receivable
172,365
350,378
Prepaid and other current assets
6,986,997
7,148,459
Total current assets
120,545,322
134,845,678
Property and equipment, net
18,287,881
17,655,415
Operating lease right-of-use assets,
net
19,689,507
—
Goodwill
4,436,950
4,436,950
Other intangible assets, net
500,000
500,000
Other assets
406,653
273,579
Total assets
$
163,866,313
$
157,711,622
LIABILITIES AND SHAREHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
22,985,979
$
18,647,572
Accrued expenses
6,650,445
8,577,972
Accrued wages, salaries and bonuses
3,107,209
3,828,847
Current operating lease liabilities
5,433,800
—
Current maturities of long-term debt
542,004
532,747
Total current liabilities
38,719,437
31,587,138
Credit facility
43,218,080
60,376,714
Deferred income tax liability, net
1,925,536
1,823,373
Long-term operating lease liabilities
14,597,065
—
Long-term debt, less current
maturities
2,852,112
3,125,644
Other long-term liabilities
—
42,011
Shareholders’ equity:
Preferred stock, $.01 par value, 1,000,000
shares authorized
—
—
Common stock, $.01 par value, 3,000,000
shares authorized, 565,526 shares outstanding at March 2020 and
552,614 shares outstanding at September 2019
8,692
8,561
Additional paid-in capital
24,224,145
23,165,639
Retained earnings
67,184,900
66,414,397
Treasury stock at cost
(28,863,654)
(28,831,855)
Total shareholders’ equity
62,554,083
60,756,742
Total liabilities and shareholders’
equity
$
163,866,313
$
157,711,622
AMCON Distributing Company and
Subsidiaries
Condensed Consolidated
Unaudited Statements of Operations
for the three and six months
ended March 31, 2020 and 2019
For the three months ended
March
For the six months ended
March
2020
2019
2020
2019
Sales (including excise taxes of $87.5
million and $82.9 million, and $181.5 million and $175.9 million,
respectively)
$
337,886,516
$
310,715,873
$
697,987,619
$
655,449,793
Cost of sales
317,193,063
290,126,453
656,449,455
614,228,235
Gross profit
20,693,453
20,589,420
41,538,164
41,221,558
Selling, general and administrative
expenses
18,512,890
17,391,681
37,465,626
35,348,896
Depreciation and amortization
790,901
641,228
1,516,361
1,249,236
19,303,791
18,032,909
38,981,987
36,598,132
Operating income
1,389,662
2,556,511
2,556,177
4,623,426
Other expense (income):
Interest expense
387,263
396,576
859,686
719,526
Other (income), net
(29,920)
(36,280)
(36,697)
(39,636)
357,343
360,296
822,989
679,890
Income from operations before income
taxes
1,032,319
2,196,215
1,733,188
3,943,536
Income tax expense
333,000
673,000
582,000
1,175,000
Net income available to common
shareholders
$
699,319
$
1,523,215
$
1,151,188
$
2,768,536
Basic earnings per share available to
common shareholders
$
1.24
$
2.49
$
2.04
$
4.50
Diluted earnings per share available to
common shareholders
$
1.22
$
2.45
$
2.02
$
4.44
Basic weighted average shares
outstanding
565,697
611,824
564,129
614,874
Diluted weighted average shares
outstanding
571,852
620,769
569,856
623,848
Dividends declared and paid per common
share
$
0.46
$
0.46
$
0.64
$
0.64
AMCON Distributing Company and
Subsidiaries
Condensed Consolidated
Unaudited Statements of Shareholders’ Equity
for the three and six months
ended March 31, 2020 and 2019
Additional
Common Stock
Treasury Stock
Paid in
Retained
Shares
Amount
Shares
Amount
Capital
Earnings
Total
THREE MONTHS ENDED MARCH 2019
Balance, January 1, 2019
856,039
$
8,561
(238,744)
$
(22,242,837)
$
23,110,713
$
64,796,415
$
65,672,852
Dividends on common stock, $0.18 per
share
—
—
—
—
—
(116,164)
(116,164)
Compensation expense and issuance of stock
in connection with equity-based awards
—
—
—
—
37,659
—
37,659
Repurchase of common stock
—
—
(24,527)
(2,268,761)
—
—
(2,268,761)
Net income
—
—
—
—
—
1,523,215
1,523,215
Balance, March 31, 2019
856,039
$
8,561
(263,271)
$
(24,511,598)
$
23,148,372
$
66,203,466
$
64,848,801
THREE MONTHS ENDED MARCH 2020
Balance, January 1, 2020
869,367
$
8,692
(303,534)
$
(28,840,011)
$
24,192,954
$
66,592,637
$
61,954,272
Dividends on common stock, $0.18 per
share
—
—
—
—
—
(107,056)
(107,056)
Compensation expense and issuance of stock
in connection with equity-based awards
—
—
—
—
31,191
—
31,191
Repurchase of common stock
—
—
(307)
(23,643)
—
—
(23,643)
Net income
—
—
—
—
—
699,319
699,319
Balance, March 31, 2020
869,367
$
8,692
(303,841)
$
(28,863,654)
$
24,224,145
$
67,184,900
$
62,554,083
Additional
Common Stock
Treasury Stock
Paid in
Retained
Shares
Amount
Shares
Amount
Capital
Earnings
Total
SIX MONTHS ENDED MARCH 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, $0.64 per
share
—
—
—
—
—
(413,100)
(413,100)
Compensation expense and issuance of stock
in connection with equity-based awards
11,950
120
—
—
1,079,274
—
1,079,394
Repurchase of common stock
—
—
(34,959)
(3,186,846)
—
—
(3,186,846)
Net income
—
—
—
—
—
2,768,536
2,768,536
Balance, March 31, 2019
856,039
$
8,561
(263,271)
$
(24,511,598)
$
23,148,372
$
66,203,466
$
64,848,801
SIX MONTHS ENDED MARCH 2020
Balance, October 1, 2019
856,039
$
8,561
(303,425)
$
(28,831,855)
$
23,165,639
$
66,414,397
$
60,756,742
Dividends on common stock, $0.64 per
share
—
—
—
—
—
(380,685)
(380,685)
Compensation expense and issuance of stock
in connection with equity-based awards
13,328
131
—
—
1,058,506
—
1,058,637
Repurchase of common stock
—
—
(416)
(31,799)
—
—
(31,799)
Net income
—
—
—
—
—
1,151,188
1,151,188
Balance, March 31, 2020
869,367
$
8,692
(303,841)
$
(28,863,654)
$
24,224,145
$
67,184,900
$
62,554,083
AMCON Distributing Company and
Subsidiaries
Condensed Consolidated
Unaudited Statements of Cash Flows
for the six months ended March
31, 2020 and 2019
March
March
2020
2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income
$
1,151,188
$
2,768,536
Adjustments to reconcile net income from
operations to net cash flows from (used in) operating
activities:
Depreciation
1,516,361
1,217,986
Amortization
—
31,250
Loss (Gain) on sales of property and
equipment
33,642
(17,832)
Equity-based compensation
446,114
622,390
Deferred income taxes
102,163
226,918
Provision for losses on doubtful
accounts
390,000
59,000
Inventory allowance
55,746
240,699
Other
(42,011)
1,978
Changes in assets and liabilities:
Accounts receivable
(3,535,875)
3,353,602
Inventories
17,375,263
20,978,357
Prepaid and other current assets
(100,883)
(2,402,722)
Other assets
(133,074)
7,897
Accounts payable
4,401,077
(467,687)
Accrued expenses and accrued wages,
salaries and bonuses
(1,432,939)
(2,275,795)
Income taxes receivable
178,013
273,742
Net cash flows from (used in) operating
activities
20,404,785
24,618,319
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment
(2,245,139)
(2,159,232)
Proceeds from sales of property and
equipment
—
23,700
Net cash flows from (used in) investing
activities
(2,245,139)
(2,135,532)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under revolving credit
facility
680,161,101
642,850,736
Repayments under revolving credit
facility
(697,319,735)
(661,055,136)
Principal payments on long-term debt
(264,275)
(556,969)
Repurchase of common stock
(31,799)
(3,186,846)
Dividends on common stock
(380,685)
(413,100)
Net cash flows from (used in) financing
activities
(17,835,393)
(22,361,315)
Net change in cash
324,253
121,472
Cash, beginning of period
337,704
520,644
Cash, end of period
$
661,957
$
642,116
Supplemental disclosure of cash flow
information:
Cash paid during the period for
interest
$
927,322
$
774,784
Cash paid during the period for income
taxes
301,824
674,340
Supplemental disclosure of non-cash
information:
Equipment acquisitions classified in
accounts payable
$
6,583
$
212,800
Issuance of common stock in connection
with the vesting and exercise of equity-based awards
990,653
1,005,792
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200420005841/en/
Christopher H. Atayan AMCON Distributing Company Ph
402-331-3727
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