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 $0.89 on net income available to common shareholders of $0.5 million for its second fiscal quarter ended March 31, 2024.

“Labor shortages, supply chain issues, inflation, volatility in energy prices, and the impact of rising interest rates continue to present challenges for our business. 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,” 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 announced acquisition of Burklund Distributors, Inc. AMCON is committed to pursuing strategic acquisition opportunities in the Convenience Distributor and Foodservice sectors.”

“Foodservice, technology platforms, and associated staffing for these strategic areas are a central focus for our management team,” said Andrew C. Plummer, AMCON’s President and Chief Operating Officer. Mr. Plummer added, “We are actively expanding our geographic reach to better serve our customers as they grow their store footprints.”

Charles J. Schmaderer, AMCON’s Chief Financial Officer said, “At March 31, 2024, our shareholders’ equity was $108.0 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 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 facility in Colorado City, Colorado.”

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 twelve (12) distribution centers in Colorado, Illinois, Minnesota, Missouri, Nebraska, North Dakota, South Dakota, Tennessee, and West Virginia. Through its Healthy Edge Retail Group, AMCON operates fourteen (14) 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

March 31, 2024 and September 30, 2023

 

 

 

March

 

September

 

 

2024

 

2023

 

 

(Unaudited)

 

 

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash

 

$

951,521

 

 

$

790,931

 

Accounts receivable, less allowance for credit losses of $2.3 million at March 2024 and $2.4 million at September 2023

 

 

66,881,140

 

 

 

70,878,420

 

Inventories, net

 

 

121,324,279

 

 

 

158,582,816

 

Income taxes receivable

 

 

844,730

 

 

 

1,854,484

 

Prepaid expenses and other current assets

 

 

15,244,494

 

 

 

13,564,056

 

Total current assets

 

 

205,246,164

 

 

 

245,670,707

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

94,475,740

 

 

 

80,607,451

 

Operating lease right-of-use assets, net

 

 

22,830,252

 

 

 

23,173,287

 

Goodwill

 

 

5,778,325

 

 

 

5,778,325

 

Other intangible assets, net

 

 

5,016,084

 

 

 

5,284,935

 

Other assets

 

 

2,810,304

 

 

 

2,914,495

 

Total assets

 

$

336,156,869

 

 

$

363,429,200

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

51,726,762

 

 

$

43,099,326

 

Accrued expenses

 

 

12,661,273

 

 

 

14,922,279

 

Accrued wages, salaries and bonuses

 

 

5,371,550

 

 

 

8,886,529

 

Current operating lease liabilities

 

 

6,031,117

 

 

 

6,063,048

 

Current maturities of long-term debt

 

 

4,485,028

 

 

 

1,955,065

 

Current mandatorily redeemable non-controlling interest

 

 

1,812,558

 

 

 

1,703,604

 

Total current liabilities

 

 

82,088,288

 

 

 

76,629,851

 

 

 

 

 

 

 

 

Credit facilities

 

 

99,194,708

 

 

 

140,437,989

 

Deferred income tax liability, net

 

 

5,071,404

 

 

 

4,917,960

 

Long-term operating lease liabilities

 

 

17,106,256

 

 

 

17,408,758

 

Long-term debt, less current maturities

 

 

16,045,738

 

 

 

11,675,439

 

Mandatorily redeemable non-controlling interest, less current portion

 

 

8,012,406

 

 

 

7,787,227

 

Other long-term liabilities

 

 

686,435

 

 

 

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 March 2024 and 608,689 shares outstanding at September 2023

 

 

9,648

 

 

 

9,431

 

Additional paid-in capital

 

 

33,160,639

 

 

 

30,585,388

 

Retained earnings

 

 

106,053,510

 

 

 

104,846,438

 

Treasury stock at cost

 

 

(31,272,163

)

 

 

(31,272,163

)

Total shareholders’ equity

 

 

107,951,634

 

 

 

104,169,094

 

Total liabilities and shareholders’ equity

 

$

336,156,869

 

 

$

363,429,200

 

AMCON Distributing Company and Subsidiaries

Condensed Consolidated Unaudited Statements of Operations

for the three and six months ended March 31, 2024 and 2023

 

 

 

 

 

 

For the three months ended March

For the six months ended March

 

2024

2023

2024

2023

Sales (including excise taxes of $127.4 and $130.9 million, and $265.5 and $261.3 million, respectively)

$

601,877,306

 

$

584,993,848

 

$

1,246,836,380

 

$

1,150,983,356

 

Cost of sales

 

559,566,439

 

 

543,861,287

 

 

1,161,224,591

 

 

1,074,881,211

 

Gross profit

 

42,310,867

 

 

41,132,561

 

 

85,611,789

 

 

76,102,145

 

Selling, general and administrative expenses

 

36,677,814

 

 

33,996,988

 

 

73,936,491

 

 

62,376,176

 

Depreciation and amortization

 

2,289,390

 

 

1,807,753

 

 

4,508,558

 

 

2,878,639

 

 

 

38,967,204

 

 

35,804,741

 

 

78,445,049

 

 

65,254,815

 

Operating income

 

3,343,663

 

 

5,327,820

 

 

7,166,740

 

 

10,847,330

 

 

 

 

 

 

 

 

 

 

Other expense (income):

 

 

 

 

 

 

 

 

Interest expense

 

2,247,737

 

 

2,169,541

 

 

4,559,250

 

 

3,863,698

 

Change in fair value of mandatorily redeemable non-controlling interest

 

134,389

 

 

221,030

 

 

334,133

 

 

166,114

 

Other (income), net

 

(191,006

)

 

(173,725

)

 

(754,147

)

 

(227,257

)

 

 

2,191,120

 

 

2,216,846

 

 

4,139,236

 

 

3,802,555

 

Income from operations before income taxes

 

1,152,543

 

 

3,110,974

 

 

3,027,504

 

 

7,044,775

 

Income tax expense

 

613,000

 

 

1,045,400

 

 

1,417,000

 

 

2,350,200

 

Net income available to common shareholders

$

539,543

 

$

2,065,574

 

$

1,610,504

 

$

4,694,575

 

 

 

 

 

 

 

 

 

 

Basic earnings per share available to common shareholders

$

0.90

 

$

3.53

 

$

2.69

 

$

8.04

 

Diluted earnings per share available to common shareholders

$

0.89

 

$

3.49

 

$

2.66

 

$

7.94

 

 

 

 

 

 

 

 

 

 

Basic weighted average shares outstanding

 

600,161

 

 

585,885

 

 

597,879

 

 

583,725

 

Diluted weighted average shares outstanding

 

608,029

 

 

592,448

 

 

605,917

 

 

591,249

 

 

 

 

 

 

 

 

 

 

Dividends paid per common share

$

0.46

 

$

5.18

 

$

0.64

 

$

5.36

 

AMCON Distributing Company and Subsidiaries

Condensed Consolidated Unaudited Statements of Shareholders’ Equity

for the three and six months ended March 31, 2024 and 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

 

 

Common Stock

 

Treasury Stock

 

Paid-in

 

Retained

 

 

 

 

 

Shares

 

Amount

 

Shares

 

Amount

 

Capital

 

Earnings

 

Total

THREE MONTHS ENDED MARCH 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, January 1, 2023

 

943,272

 

 

$

9,431

 

 

(332,220

)

 

$

(30,867,287

)

 

$

29,357,154

 

$

96,212,704

 

 

$

94,712,002

 

Dividends on common stock, $.18 per share

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

 

—

 

 

(111,220

)

 

 

(111,220

)

Compensation expense related to equity-based awards

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

 

409,412

 

 

—

 

 

 

409,412

 

Net income available to common shareholders

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

 

—

 

 

2,065,574

 

 

 

2,065,574

 

Balance, March 31, 2023

 

943,272

 

 

$

9,431

 

 

(332,220

)

 

$

(30,867,287

)

 

$

29,766,566

 

$

98,167,058

 

 

$

97,075,768

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

THREE MONTHS ENDED MARCH 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, January 1, 2024

 

964,945

 

 

$

9,648

 

 

(334,583

)

 

$

(31,272,163

)

 

$

32,521,091

 

$

105,627,432

 

 

$

106,886,008

 

Dividends on common stock, $0.18 per share

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

 

—

 

 

(113,465

)

 

 

(113,465

)

Compensation expense related to equity-based awards

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

 

639,548

 

 

—

 

 

 

639,548

 

Net income available to common shareholders

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

 

—

 

 

539,543

 

 

 

539,543

 

Balance, March 31, 2024

 

964,945

 

$

9,648

 

(334,583

)

 

$

(31,272,163

)

 

$

33,160,639

 

$

106,053,510

 

 

$

107,951,634

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

 

 

Common Stock

 

Treasury Stock

 

Paid-in

 

Retained

 

 

 

 

 

Shares

 

Amount

 

Shares

 

Amount

 

Capital

 

Earnings

 

Total

SIX MONTHS ENDED MARCH 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, $5.36 per share

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

 

—

 

 

(3,311,870

)

 

 

(3,311,870

)

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

 

26,263

 

 

 

263

 

 

—

 

 

 

—

 

 

 

2,863,365

 

 

—

 

 

 

2,863,628

 

Net income available to common shareholders

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

 

—

 

 

4,694,575

 

 

 

4,694,575

 

Balance, March 31, 2023

 

943,272

 

 

$

9,431

 

 

(332,220

)

 

$

(30,867,287

)

 

$

29,766,566

 

$

98,167,058

 

 

$

97,075,768

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SIX MONTHS ENDED MARCH 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, $0.64 per share

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

 

—

 

 

(403,432

)

 

 

(403,432

)

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

 

21,673

 

 

 

217

 

 

—

 

 

 

—

 

 

 

2,575,251

 

 

—

 

 

 

2,575,468

 

Net income available to common shareholders

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

 

—

 

 

1,610,504

 

 

 

1,610,504

 

Balance, March 31, 2024

 

964,945

 

$

9,648

 

(334,583

)

 

$

(31,272,163

)

 

$

33,160,639

 

$

106,053,510

 

 

$

107,951,634

 

AMCON Distributing Company and Subsidiaries

Condensed Consolidated Unaudited Statements of Cash Flows

for the six months ended March 31, 2024 and 2023

 

 

 

March

 

March

 

 

2024

 

2023

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

Net income available to common shareholders

 

$

1,610,504

 

 

$

4,694,575

 

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

 

 

 

 

 

 

Depreciation

 

 

4,239,707

 

 

 

2,732,312

 

Amortization

 

 

268,851

 

 

 

146,327

 

(Gain) loss on sales of property and equipment

 

 

(105,505

)

 

 

(133,159

)

Equity-based compensation

 

 

1,210,685

 

 

 

1,061,383

 

Deferred income taxes

 

 

153,444

 

 

 

989,702

 

Provision for credit losses

 

 

(133,707

)

 

 

(378,302

)

Inventory allowance

 

 

22,413

 

 

 

(6,947

)

Change in fair value of mandatorily redeemable non-controlling interest

 

 

334,133

 

 

 

166,114

 

Changes in assets and liabilities:

 

 

 

 

 

 

Accounts receivable

 

 

4,130,987

 

 

 

5,097,281

 

Inventories

 

 

37,236,124

 

 

 

19,843,973

 

Prepaid and other current assets

 

 

(1,680,438

)

 

 

(411,185

)

Other assets

 

 

104,191

 

 

 

(275,796

)

Accounts payable

 

 

9,475,057

 

 

 

10,457,273

 

Accrued expenses and accrued wages, salaries and bonuses

 

 

(4,402,600

)

 

 

(1,094,009

)

Other long-term liabilities

 

 

283,553

 

 

 

116,896

 

Income taxes payable and receivable

 

 

1,009,754

 

 

 

(59,527

)

Net cash flows from (used in) operating activities

 

 

53,757,153

 

 

 

42,946,911

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

Purchase of property and equipment

 

 

(11,084,390

)

 

 

(2,760,586

)

Proceeds from sales of property and equipment

 

 

234,278

 

 

 

137,500

 

Acquisition of Henry's

 

 

—

 

 

 

(54,958,637

)

Net cash flows from (used in) investing activities

 

 

(10,850,112

)

 

 

(57,581,723

)

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

Borrowings under revolving credit facilities

 

 

1,128,853,805

 

 

 

1,184,888,842

 

Repayments under revolving credit facilities

 

 

(1,170,097,086

)

 

 

(1,173,087,034

)

Proceeds from borrowings on long-term debt

 

 

—

 

 

 

7,000,000

 

Principal payments on long-term debt

 

 

(1,099,738

)

 

 

(504,941

)

Dividends on common stock

 

 

(403,432

)

 

 

(3,311,870

)

Net cash flows from (used in) financing activities

 

 

(42,746,451

)

 

 

14,984,997

 

Net change in cash

 

 

160,590

 

 

 

350,185

 

Cash, beginning of period

 

 

790,931

 

 

 

431,576

 

Cash, end of period

 

$

951,521

 

 

$

781,761

 

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

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

 

$

4,568,790

 

 

$

3,527,737

 

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

 

 

194,902

 

 

 

1,419,354

 

 

 

 

 

 

 

 

Supplemental disclosure of non-cash information:

 

 

 

 

 

 

Equipment acquisitions classified in accounts payable

 

$

167,913

 

 

$

132,876

 

Purchase of property financed with debt

 

 

8,000,000

 

 

 

—

 

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/20240418789423/en/

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