OMAHA, Neb., July 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 $2.46 on net income available to common shareholders of $1.5 million for its third fiscal quarter ended June 30, 2024.
"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. Foodservice, technology platforms, and associated staffing for these strategic areas are a central focus of our management team. We are committed to making the investments necessary to compete in the marketplace," 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 completed acquisition of Richmond Master Distributors, Inc. AMCON is committed to pursuing strategic acquisition opportunities in the Convenience Distributor and Foodservice sectors."
"Labor shortages, supply chain issues, inflation, volatility in energy prices, and the impact of rising interest rates continue to present challenges for our business," said Andrew C. Plummer, AMCON’s President and Chief Operating Officer. Mr. Plummer added, "Our recent acquisitions have enhanced our geographic reach to better serve our customers as they grow their store footprints."
Charles J. Schmaderer, AMCON’s Chief Financial Officer said, "Sales for the fiscal quarter ended June 30, 2024 were $717.9 million and the Company ended the fiscal period with total shareholders’ equity of approximately $110.0 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 final 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 distribution facility in Colorado City, Colorado, and we opened a new retail location in Lakewood Ranch, Florida."
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 thirteen (13) distribution centers in Colorado, Illinois, Indiana, Minnesota, Missouri, Nebraska, North Dakota, South Dakota, Tennessee, and West Virginia. Through its Healthy Edge Retail Group, AMCON operates fifteen (15) 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
June 30, 2024 and September 30, 2023
June
September
2024
2023
(Unaudited)
ASSETS
Current assets:
Cash
$
719,342
$
790,931
Accounts receivable, less allowance for credit losses of $2.5 million at June 2024 and $2.4 million at September 2023
80,469,376
70,878,420
Inventories, net
160,778,835
158,582,816
Income taxes receivable
330,170
1,854,484
Prepaid expenses and other current assets
15,991,451
13,564,056
Total current assets
258,289,174
245,670,707
Property and equipment, net
103,989,865
80,607,451
Operating lease right-of-use assets, net
24,710,670
23,173,287
Goodwill
5,778,325
5,778,325
Other intangible assets, net
4,881,659
5,284,935
Other assets
2,954,262
2,914,495
Total assets
$
400,603,955
$
363,429,200
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
46,249,366
$
43,099,326
Accrued expenses
16,590,155
14,922,279
Accrued wages, salaries and bonuses
8,168,882
8,886,529
Current operating lease liabilities
6,662,109
6,063,048
Current maturities of long-term debt
5,335,127
1,955,065
Current mandatorily redeemable non-controlling interest
1,651,608
1,703,604
Total current liabilities
84,657,247
76,629,851
Credit facilities
156,941,944
140,437,989
Deferred income tax liability, net
4,594,841
4,917,960
Long-term operating lease liabilities
18,358,088
17,408,758
Long-term debt, less current maturities
17,917,378
11,675,439
Mandatorily redeemable non-controlling interest, less current portion
6,497,523
7,787,227
Other long-term liabilities
1,669,817
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 June 2024 and 608,689 shares outstanding at September 2023
9,648
9,431
Additional paid-in capital
33,800,187
30,585,388
Retained earnings
107,429,445
104,846,438
Treasury stock at cost
(31,272,163
)
(31,272,163
)
Total shareholders’ equity
109,967,117
104,169,094
Total liabilities and shareholders’ equity
$
400,603,955
$
363,429,200
AMCON Distributing Company and Subsidiaries
Condensed Consolidated Unaudited Statements of Operations
for the three and nine months ended June 30, 2024 and 2023
For the three months ended June
For the nine months ended June
2024
2023
2024
2023
Sales (including excise taxes of $150.2 and $153.7 million, and $415.7 and $414.9 million, respectively)
$
717,852,293
$
696,489,427
$
1,964,688,673
$
1,847,472,782
Cost of sales
669,893,539
649,623,651
1,831,118,129
1,724,504,862
Gross profit
47,958,754
46,865,776
133,570,544
122,967,920
Selling, general and administrative expenses
39,920,976
36,851,520
113,857,467
99,227,695
Depreciation and amortization
2,415,158
2,103,429
6,923,716
4,982,068
42,336,134
38,954,949
120,781,183
104,209,763
Operating income
5,622,620
7,910,827
12,789,361
18,758,157
Other expense (income):
Interest expense
2,903,925
2,385,842
7,463,175
6,249,540
Change in fair value of mandatorily redeemable non-controlling interest
393,324
698,571
727,457
864,684
Other (income), net
(78,903
)
(931,765
)
(833,050
)
(1,159,021
)
3,218,346
2,152,648
7,357,582
5,955,203
Income from operations before income taxes
2,404,274
5,758,179
5,431,779
12,802,954
Income tax expense
914,875
1,813,800
2,331,875
4,164,000
Net income available to common shareholders
$
1,489,399
$
3,944,379
$
3,099,904
$
8,638,954
Basic earnings per share available to common shareholders
$
2.48
$
6.74
$
5.18
$
14.78
Diluted earnings per share available to common shareholders
$
2.46
$
6.59
$
5.11
$
14.56
Basic weighted average shares outstanding
600,161
585,625
598,637
584,359
Diluted weighted average shares outstanding
606,252
598,590
606,151
593,480
Dividends paid per common share
$
0.18
$
0.18
$
0.82
$
5.54
AMCON Distributing Company and Subsidiaries
Condensed Consolidated Unaudited Statements of Shareholders’ Equity
for the three and nine months ended June 30, 2024 and 2023
Additional
Common Stock
Treasury Stock
Paid-in
Retained
Shares
Amount
Shares
Amount
Capital
Earnings
Total
THREE MONTHS ENDED JUNE 2023
Balance, April 1, 2023
943,272
$
9,431
(332,220
)
$
(30,867,287
)
$
29,766,566
$
98,167,058
$
97,075,768
Dividends on common stock, $0.18 per share
—
—
—
—
—
(111,219
)
(111,219
)
Compensation expense related to equity-based awards
—
—
—
—
409,411
—
409,411
Committed repurchase of common stock
—
—
(2,363
)
(404,876
)
—
—
(404,876
)
Net income available to common shareholders
—
—
—
—
—
3,944,379
3,944,379
Balance, June 30, 2023
943,272
$
9,431
(334,583
)
$
(31,272,163
)
$
30,175,977
$
102,000,218
$
100,913,463
THREE MONTHS ENDED JUNE 2024
Balance, April 1, 2024
964,945
$
9,648
(334,583
)
$
(31,272,163
)
$
33,160,639
$
106,053,510
$
107,951,634
Dividends on common stock, $0.18 per share
—
—
—
—
—
(113,464
)
(113,464
)
Compensation expense related to equity-based awards
—
—
—
—
639,548
—
639,548
Net income available to common shareholders
—
—
—
—
—
1,489,399
1,489,399
Balance, June 30, 2024
964,945
$
9,648
(334,583
)
$
(31,272,163
)
$
33,800,187
$
107,429,445
$
109,967,117
Additional
Common Stock
Treasury Stock
Paid-in
Retained
Shares
Amount
Shares
Amount
Capital
Earnings
Total
NINE MONTHS ENDED JUNE 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, $5.54 per share
—
—
—
—
—
(3,423,089
)
(3,423,089
)
Compensation expense and issuance of stock in connection with equity-based awards
26,263
263
—
—
3,272,776
—
3,273,039
Committed repurchase of common stock
—
—
(2,363
)
(404,876
)
—
—
(404,876
)
Net income available to common shareholders
—
—
—
—
—
8,638,954
8,638,954
Balance, June 30, 2023
943,272
$
9,431
(334,583
)
$
(31,272,163
)
$
30,175,977
$
102,000,218
$
100,913,463
NINE MONTHS ENDED JUNE 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, $0.82 per share
—
—
—
—
—
(516,897
)
(516,897
)
Compensation expense and issuance of stock in connection with equity-based awards
21,673
217
—
—
3,214,799
—
3,215,016
Net income available to common shareholders
—
—
—
—
—
3,099,904
3,099,904
Balance, June 30, 2024
964,945
$
9,648
(334,583
)
$
(31,272,163
)
$
33,800,187
$
107,429,445
$
109,967,117
AMCON Distributing Company and Subsidiaries
Condensed Consolidated Unaudited Statements of Cash Flows
for the nine months ended June 30, 2024 and 2023
June
June
2024
2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income available to common shareholders
$
3,099,904
$
8,638,954
Adjustments to reconcile net income available to common shareholders to net cash flows from (used in) operating activities:
Depreciation
6,520,440
4,701,316
Amortization
403,276
280,752
(Gain) loss on sales of property and equipment
(141,522
)
(133,159
)
Equity-based compensation
1,850,233
1,940,631
Deferred income taxes
(323,119
)
809,616
Provision for credit losses
131.132
(7,697
)
Inventory allowance
175,706
442,603
Change in fair value of contingent consideration
45,362
—
Change in fair value of mandatorily redeemable non-controlling interest
727,457
864,684
Changes in assets and liabilities, net of effects of business combinations:
Accounts receivable
(4,110,926
)
(8,026,950
)
Inventories
12,365,936
(12,294,118
)
Prepaid and other current assets
(999,319
)
(745,490
)
Other assets
(39,767
)
(569,683
)
Accounts payable
4,082,394
10,360,228
Accrued expenses and accrued wages, salaries and bonuses
1,112,351
1,487,971
Other long-term liabilities
446,831
185,704
Income taxes payable and receivable
1,524,314
1,572,253
Net cash flows from (used in) operating activities
26,870,683
9,507,615
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment
(16,793,486
)
(6,759,929
)
Proceeds from sales of property and equipment
306,748
151,307
Acquisition of Burklund
(15,464,397
)
—
Acquisition of Richmond Master
(6,631,039
)
—
Acquisition of Henry's
—
(54,865,303
)
Net cash flows from (used in) investing activities
(38,582,174
)
(61,473,925
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under revolving credit facilities
1,845,255,576
1,863,027,754
Repayments under revolving credit facilities
(1,828,751,621
)
(1,810,914,231
)
Proceeds from borrowings on long-term debt
—
7,000,000
Principal payments on long-term debt
(2,277,999
)
(1,011,559
)
Dividends on common stock
(516,897
)
(3,423,089
)
Redemption and distributions to non-controlling interest
(2,069,157
)
(2,405,128
)
Net cash flows from (used in) financing activities
11,639,902
52,273,747
Net change in cash
(71,589
)
307,437
Cash, beginning of period
790,931
431,576
Cash, end of period
$
719,342
$
739,013
Supplemental disclosure of cash flow information:
Cash paid during the period for interest, net of amounts capitalized
$
6,976,501
$
5,824,144
Cash paid during the period for income taxes, net of refunds
1,066,105
1,780,000
Supplemental disclosure of non-cash information:
Equipment acquisitions classified in accounts payable
$
83,180
$
1,622,224
Committed repurchase of treasury stock
—
404,876
Purchase of property financed with promissory note
8,000,000
—
Portion of Burklund acquisition financed with promissory note
3,900,000
—
Portion of Burklund acquisition financed with contingent consideration
1,578,444
—
Issuance of common stock in connection with the vesting of equity-based awards
