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AMCON Distributing Company Reports Results for the Quarter Ended March 31, 2024
OMAHA, Neb., April 18, 2024 (BUSINESS WIRE) --
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:
$ 951,521 $ 790,931
Cash
66,881,140 70,878,420
Accounts receivable, less allowance for credit losses of $2.3 million at March 2024 and $2.4 million at September 2023
121,324,279 158,582,816
Inventories, net
844,730 1,854,484
Income taxes receivable
15,244,494 13,564,056
Prepaid expenses and other current assets
-------------------- -------------------- -------------------- -------------------- -------------------- --------------------
205,246,164 245,670,707
Total current assets
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:
$ 51,726,762 $ 43,099,326
Accounts payable
12,661,273 14,922,279
Accrued expenses
5,371,550 8,886,529
Accrued wages, salaries and bonuses
6,031,117 6,063,048
Current operating lease liabilities
4,485,028 1,955,065
Current maturities of long-term debt
1,812,558 1,703,604
Current mandatorily redeemable non-controlling interest
-------------------- -------------------- -------------------- -------------------- -------------------- --------------------
82,088,288 76,629,851
Total current liabilities
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
9,648 9,431
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
33,160,639 30,585,388
Additional paid-in capital
106,053,510 104,846,438
Retained earnings
(31,272,163 ) (31,272,163 )
Treasury stock at cost
-------------------- -------------------- -------------------- -------------------- -------------------- --------------------
107,951,634 104,169,094
Total shareholders' equity
-------------------- -------------------- -------------------- -------------------- -------------------- --------------------
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 For the six months ended March
-------------------------------------------------------------------------------------------------------------------------- ------------------------------ ------------------------------------------------------------------------------------------------------------------------------
2024 2023 2023 2024 2024 2023 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):
2,247,737 2,169,541 4,559,250 3,863,698
Interest expense
134,389 221,030 334,133 166,114
Change in fair value of mandatorily redeemable non-controlling interest
(191,006 ) (173,725 ) (754,147 ) (227,257 )
Other (income), net
-------------------- ----------- -------------------- -------------------- -------------------- ----------- -------------------- ------------------------------ -------------------- ------------- -------------------- -------------------- -------------------- ------------- --------------------
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
==================== =========== ==================== ==================== ==================== =========== ==================== ============================== ==================== ============= ==================== ==================== ==================== ============= ====================
$ 0.90 $ $ 3.53 $ $ 2.69 $ $ 8.04
Basic earnings per share available to common shareholders
$ 0.89 $ $ 3.49 $ $ 2.66 $ $ 7.94
Diluted earnings per share available to common shareholders
600,161 585,885 597,879 583,725
Basic weighted average shares outstanding
608,029 592,448 605,917 591,249
Diluted weighted average shares outstanding
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
-------------- -------------------- -------------------- -------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- ----------- --------------------
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
-------------- -------------------- -------------------- -------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- ----------- --------------------
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:
4,239,707 2,732,312
Depreciation
268,851 146,327
Amortization
(105,505 ) (133,159 )
(Gain) loss on sales of property and equipment
1,210,685 1,061,383
Equity-based compensation
153,444 989,702
Deferred income taxes
(133,707 ) (378,302 )
Provision for credit losses
22,413 (6,947 )
Inventory allowance
334,133 166,114
Change in fair value of mandatorily redeemable non-controlling interest
Changes in assets and liabilities:
4,130,987 5,097,281
Accounts receivable
37,236,124 19,843,973
Inventories
(1,680,438 ) (411,185 )
Prepaid and other current assets
104,191 (275,796 )
Other assets
9,475,057 10,457,273
Accounts payable
(4,402,600 ) (1,094,009 )
Accrued expenses and accrued wages, salaries and bonuses
283,553 116,896
Other long-term liabilities
1,009,754 (59,527 )
Income taxes payable and receivable
-------------------- -------------- -------------------- -------------------- -------------- --------------------
Net cash flows from (used in) operating activities 53,757,153 42,946,911
-------------------- -------------- -------------------- -------------------- -------------- --------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
(11,084,390 ) (2,760,586 )
Purchase of property and equipment
234,278 137,500
Proceeds from sales of property and equipment
-- (54,958,637 )
Acquisition of Henry's
-------------------- -------------- -------------------- -------------------- -------------- --------------------
Net cash flows from (used in) investing activities (10,850,112 ) (57,581,723 )
-------------------- -------------- -------------------- -------------------- -------------- --------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
1,128,853,805 1,184,888,842
Borrowings under revolving credit facilities
(1,170,097,086 ) (1,173,087,034 )
Repayments under revolving credit facilities
-- 7,000,000
Proceeds from borrowings on long-term debt
(1,099,738 ) (504,941 )
Principal payments on long-term debt
(403,432 ) (3,311,870 )
Dividends on common stock
-------------------- -------------- -------------------- -------------------- -------------- --------------------
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:
$ 4,568,790 $ 3,527,737
Cash paid during the period for interest, net of amounts capitalized
194,902 1,419,354
Cash paid during the period for income taxes, net of refunds
Supplemental disclosure of non-cash information:
$ 167,913 $ 132,876
Equipment acquisitions classified in accounts payable
8,000,000 --
Purchase of property financed with debt
View source version on businesswire.com: https://www.businesswire.com/news/home/20240418789423/en/
SOURCE: AMCON Distributing Company
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Charles J. Schmaderer AMCON Distributing Company Ph 402-331-3727
COMTEX_451048122/1006/2024-04-18T16:10:02