AMCON Distributing Company (“AMCON”) (NYSE American: DIT), an
Omaha, Nebraska based consumer products company is pleased to
announce fully diluted earnings per share of $2.77 on net income
available to common shareholders of $1.6 million for its third
fiscal quarter ended June 30, 2020.
“AMCON continues to fulfill our role as an essential service
provider and a key component of the United States supply chain as a
distributor to convenience stores, truck stops, and rural grocery
stores. In addition, our retail health food segment provides
nutritional supplements that are an important component of health,
wellness and immunity support,” said Christopher H. Atayan, AMCON’s
Chairman and Chief Executive Officer. “We continue to be focused on
our long-term strategic plan and are actively seeking acquisitions
and other opportunities to expand the enterprise.”
“Our management team and associates have worked around the clock
to secure product and position the organizational and operational
assets that are at the foundation of our philosophy as a customer
focused service organization. We have many long-term relationships
with our key vendors which enabled us to navigate a challenging
operational environment and minimize disruptions from the
pandemic,” said Andrew C. Plummer, AMCON’s President and Chief
Operating Officer. Mr. Plummer added, “We were pleased to close
June 30, 2020 with shareholders’ equity of $64.0 million and
consolidated debt of $59.6 million.”
The wholesale distribution segment reported revenues of $385.3
million and operating income of $4.4 million for the third quarter
of fiscal 2020. The retail health food segment reported revenues of
$11.5 million and an operating loss of $0.2 million for the third
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
June 30, 2020 and September
30, 2019
June
September
2020
2019
(Unaudited)
ASSETS
Current assets:
Cash
$
596,564
$
337,704
Accounts receivable, less allowance for
doubtful accounts of $1.2 million at June 2020 and $0.9 million at
September 2019
33,626,042
24,665,620
Inventories, net
82,009,219
102,343,517
Income taxes receivable
—
350,378
Prepaid and other current assets
7,259,528
7,148,459
Total current assets
123,491,353
134,845,678
Property and equipment, net
18,236,033
17,655,415
Operating lease right-of-use assets,
net
19,705,044
—
Note receivable
3,500,000
—
Goodwill
4,436,950
4,436,950
Other intangible assets, net
500,000
500,000
Equity method investment
6,648,666
—
Other assets
399,943
273,579
Total assets
$
176,917,989
$
157,711,622
LIABILITIES AND SHAREHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
20,719,129
$
18,647,572
Accrued expenses
7,067,083
8,577,972
Accrued wages, salaries and bonuses
2,968,148
3,828,847
Income taxes payable
480,649
—
Current operating lease liabilities
5,486,963
—
Current maturities of long-term debt
546,657
532,747
Total current liabilities
37,268,629
31,587,138
Credit facility
56,384,002
60,376,714
Deferred income tax liability, net
1,820,511
1,823,373
Long-term operating lease liabilities
14,578,728
—
Long-term debt, less current
maturities
2,713,798
3,125,644
Other long-term liabilities
167,755
42,011
Shareholders’ equity:
Preferred stock, $.01 par value, 1,000,000
shares authorized
—
—
Common stock, $.01 par value, 3,000,000
shares authorized, 564,878 shares outstanding at June 2020 and
552,614 shares outstanding at September 2019
8,697
8,561
Additional paid-in capital
24,250,873
23,165,639
Retained earnings
68,657,375
66,414,397
Treasury stock at cost
(28,932,379
)
(28,831,855
)
Total shareholders’ equity
63,984,566
60,756,742
Total liabilities and shareholders’
equity
$
176,917,989
$
157,711,622
AMCON Distributing Company and
Subsidiaries
Condensed Consolidated
Unaudited Statements of Operations
for the three and nine months
ended June 30, 2020 and 2019
For the three months ended
June
For the nine months ended
June
2020
2019
2020
2019
Sales (including excise taxes of $103.6
million and $98.0 million, and $285.1 million and $274.0 million,
respectively)
$
396,854,324
$
369,981,516
$
1,094,841,943
$
1,025,431,309
Cost of sales
375,202,044
349,455,624
1,031,651,499
963,683,859
Gross profit
21,652,280
20,525,892
63,190,444
61,747,450
Selling, general and administrative
expenses
18,377,641
18,513,048
55,843,266
53,861,943
Depreciation and amortization
801,683
620,142
2,318,045
1,869,378
19,179,324
19,133,190
58,161,311
55,731,321
Operating income
2,472,956
1,392,702
5,029,133
6,016,129
Other expense (income):
Interest expense
461,581
381,469
1,321,267
1,100,995
Other (income), net
(42,525
)
(15,446
)
(79,222
)
(55,081
)
419,056
366,023
1,242,045
1,045,914
Income from operations before income
taxes
2,053,900
1,026,679
3,787,088
4,970,215
Income tax expense
586,000
361,000
1,168,000
1,536,000
Equity method investment earnings, net of
tax
111,666
—
111,666
—
Net income available to common
shareholders
$
1,579,566
$
665,679
$
2,730,754
$
3,434,215
Basic earnings per share available to
common shareholders
$
2.79
$
1.12
$
4.84
$
5.65
Diluted earnings per share available to
common shareholders
$
2.77
$
1.10
$
4.79
$
5.56
Basic weighted average shares
outstanding
565,483
592,768
564,578
607,505
Diluted weighted average shares
outstanding
569,902
606,278
569,873
617,887
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, 2020 and 2019
Additional
Common Stock
Treasury Stock
Paid-in
Retained
Shares
Amount
Shares
Amount
Capital
Earnings
Total
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
675,679
Balance, June 30, 2019
856,039
$
8,561
(263,272
)
$
(24,511,739
)
$
23,185,173
$
66,757,379
$
65,439,374
THREE MONTHS ENDED JUNE 2020
Balance, April 1, 2020
869,367
$
8,692
(303,841
)
$
(28,863,654
)
$
24,224,145
$
67,184,900
$
62,554,083
Dividends on common stock, $0.18 per
share
—
—
—
—
—
(107,091
)
(107,091
)
Compensation expense and issuance of stock
in connection with equity-based awards
500
5
—
—
26,728
—
26,733
Repurchase of common stock
—
—
(1,148
)
(68,725
)
—
—
(68,725
)
Net income
—
—
—
—
—
1,579,566
1,579,566
Balance, June 30, 2020
869,867
$
8,697
(304,989
)
$
(28,932,379
)
$
24,250,873
$
68,657,375
$
63,984,566
Additional
Common Stock
Treasury Stock
Paid-in
Retained
Shares
Amount
Shares
Amount
Capital
Earnings
Total
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
NINE MONTHS ENDED JUNE 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, $0.82 per
share
—
—
—
—
—
(487,776
)
(487,776
)
Compensation expense and issuance of stock
in connection with equity-based awards
13,828
136
—
—
1,085,234
—
1,058,370
Repurchase of common stock
—
—
(1,564
)
(100,524
)
—
—
(100,524
)
Net income
—
—
—
—
—
2,730,754
2,730,754
Balance, June 30, 2020
869,867
$
8,697
(304,989
)
$
(28,932,379
)
$
24,250,873
$
68,657,375
$
63,984,566
AMCON Distributing Company and
Subsidiaries
Condensed Consolidated
Unaudited Statements of Cash Flows
for the nine months ended June
30, 2020 and 2019
June
June
2020
2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income
$
2,730,754
$
3,434,215
Adjustments to reconcile net income from
operations to net cash flows from (used in) operating
activities:
Depreciation
2,318,045
1,827,711
Amortization
—
41,667
Equity method investment earnings, net of
income tax
(111,666
)
—
Loss (gain) on sales of property and
equipment
17,042
(15,376
)
Equity-based compensation
765,704
1,035,128
Deferred income taxes
(2,862
)
112,439
Provision for losses on doubtful
accounts
349,000
179,000
Inventory allowance
182,218
454,357
Changes in assets and liabilities:
Accounts receivable
(9,309,422
)
(3,209,941
)
Inventories
20,152,080
11,468,718
Prepaid and other current assets
(373,414
)
(5,698,021
)
Other assets
(126,364
)
19,712
Accounts payable
2,040,386
2,485,721
Accrued expenses and accrued wages,
salaries and bonuses
(1,424,472
)
(1,460,935
)
Other long-term liabilities
125,744
2,967
Income taxes payable and receivable
794,027
157,836
Net cash flows from (used in) operating
activities
18,126,800
10,835,198
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment
(2,901,134
)
(3,385,977
)
Proceeds from sales of property and
equipment
16,600
56,200
Investment in equity method investee
(6,500,000
)
—
Issuance of note receivable
(3,500,000
)
—
Net cash flows from (used in) investing
activities
(12,884,534
)
(3,329,777
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under revolving credit
facility
1,083,878,207
1,022,309,940
Repayments under revolving credit
facility
(1,087,870,919
)
(1,025,624,006
)
Principal payments on long-term debt
(397,936
)
(686,139
)
Proceeds from exercise of stock
options
25,750
—
Repurchase of common stock
(100,524
)
(3,186,987
)
Dividends on common stock
(487,776
)
(524,866
)
Settlement and withholdings of
equity-based awards
(30,208
)
—
Net cash flows from (used in) financing
activities
(4,983,406
)
(7,712,058
)
Net change in cash
258,860
(206,637
)
Cash, beginning of period
337,704
520,644
Cash, end of period
$
596,564
$
314,007
Supplemental disclosure of cash flow
information:
Cash paid during the period for
interest
$
1,387,381
$
1,140,562
Cash paid during the period for income
taxes
376,835
1,265,725
Supplemental disclosure of non-cash
information:
Equipment acquisitions classified in
accounts payable
$
100,424
$
91,838
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/20200720005727/en/
Christopher H. Atayan AMCON Distributing Company Ph
402-331-3727
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