OMAHA, Neb., November 08, 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 $7.15 on net income available to common shareholders of $4.3 million for the fiscal year ended September 30, 2024.
"We have seen our strategic plan come to full bloom in fiscal 2024. AMCON has grown its footprint geographically, expanded within our existing footprint, and enhanced our foodservice capability. We are now the third largest Convenience Distributor in the United States measured by territory covered. Our new Springfield, Missouri facility is fully operational and provides the infrastructure necessary to advance our foodservice initiatives. AMCON’s long-standing core operating philosophy is providing a superior level of customer service. Our customer-centric approach has guided us through these challenging times and ensured that AMCON’s customers received a consistent and timely flow of goods and services," said Christopher H. Atayan, AMCON’s Chairman and Chief Executive Officer. He further noted, "We continue to actively seek strategic acquisition opportunities for operators who want to align with our customer focused approach philosophy and further the legacy of their enterprises."
The wholesale distribution segment reported revenues of $2.7 billion and operating income of $31.3 million for fiscal 2024 and the retail health food segment reported revenues of $42.5 million and operating income of $0.1 million for fiscal 2024.
"We continue to drive the growth of our foodservice business through our Henry’s Foods ("Henry’s") subsidiary. Henry’s offers a breadth and depth of proprietary foodservice programs and associated store level merchandising that is unparalleled in the convenience distribution industry. Through Henry’s, we now have the capability to offer turn-key solutions that will enable our customer base to compete head-on with the Quick Service Restaurant industry. We are investing heavily in our foodservice and technology platforms and associated staffing for these strategic focus areas as we deploy these capabilities across our entire organization," said Andrew C. Plummer, AMCON’s President and Chief Operating Officer. Mr. Plummer continued, "In particular, we now have integrated state of the art advertising, design, print and electronic display programs that we believe provide our customers a competitive edge."
"We continue our relentless daily focus on managing the Company’s balance sheet and maximizing our liquidity position. At September 30, 2024, our shareholders’ equity was $111.7 million," said Charles J. Schmaderer, AMCON’s Chief Financial Officer. Mr. Schmaderer also added, "We are investing capital to develop our recently acquired 250,000 square foot distribution facility in Colorado City, Colorado, which will support our customers’ growth initiatives in the Intermountain Region."
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
CONSOLIDATED BALANCE SHEETS
September
September
2024
2023
ASSETS
Current assets:
Cash
$
672,788
$
790,931
Accounts receivable, less allowance for credit losses of $2.3 million at September 2024 and $2.4 million at September 2023
70,653,907
70,878,420
Inventories, net
144,254,843
158,582,816
Income taxes receivable
718,645
1,854,484
Prepaid expenses and other current assets
12,765,088
13,564,056
Total current assets
229,065,271
245,670,707
Property and equipment, net
106,049,061
80,607,451
Operating lease right-of-use assets, net
25,514,731
23,173,287
Goodwill
5,778,325
5,778,325
Other intangible assets, net
4,747,234
5,284,935
Other assets
2,952,688
2,914,495
Total assets
$
374,107,310
$
363,429,200
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
54,498,225
$
43,099,326
Accrued expenses
15,802,727
14,922,279
Accrued wages, salaries and bonuses
8,989,355
8,886,529
Current operating lease liabilities
7,036,751
6,063,048
Current maturities of long-term debt
5,202,443
1,955,065
Current mandatorily redeemable non-controlling interest
1,703,604
1,703,604
Total current liabilities
93,233,105
76,629,851
Credit facilities
121,272,004
140,437,989
Deferred income tax liability, net
4,374,316
4,917,960
Long-term operating lease liabilities
18,770,001
17,408,758
Long-term debt, less current maturities
16,562,908
11,675,439
Mandatorily redeemable non-controlling interest, less current portion
6,507,896
7,787,227
Other long-term liabilities
1,657,295
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 September 2024 and 608,689 shares outstanding at September 2023
9,648
9,431
Additional paid-in capital
34,439,735
30,585,388
Retained earnings
108,552,565
104,846,438
Treasury stock at cost
(31,272,163
)
(31,272,163
)
Total shareholders’ equity
111,729,785
104,169,094
Total liabilities and shareholders’ equity
$
374,107,310
$
363,429,200
AMCON Distributing Company and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
Fiscal Years Ended September
2024
2023
Sales (including excise taxes of $569.5 million and $564.6 million, respectively)
$
2,710,981,108
$
2,539,994,999
Cost of sales
2,528,626,652
2,369,150,102
Gross profit
182,354,456
170,844,897
Selling, general and administrative expenses
154,878,763
137,301,668
Depreciation and amortization
9,495,179
7,576,646
164,373,942
144,878,314
Operating income
17,980,514
25,966,583
Other expense (income):
Interest expense
10,413,228
8,550,431
Change in fair value of mandatorily redeemable non-controlling interest
1,040,968
1,307,599
Other (income), net
(936,171
)
(1,193,840
)
10,518,025
8,664,190
Income from operations before income taxes
7,462,489
17,302,393
Income tax expense
3,126,000
5,706,000
Net income available to common shareholders
$
4,336,489
$
11,596,393
Basic earnings per share available to common shareholders
$
7.24
$
19.85
Diluted earnings per share available to common shareholders
$
7.15
$
19.46
Basic weighted average shares outstanding
599,020
584,148
Diluted weighted average shares outstanding
606,782
595,850
Dividends paid per common share
$
1.00
$
5.72
AMCON Distributing Company and Subsidiaries
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
Additional
Common Stock
Treasury Stock
Paid-in
Retained
Shares
Amount
Shares
Amount
Capital
Earnings
Total
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, $5.72 per share
—
—
—
—
—
(3,534,308
)
(3,534,308
)
Compensation expense and issuance of stock in connection with equity-based awards
26,263
263
—
—
3,682,187
—
3,682,450
Repurchase of common stock
—
—
(2,363
)
(404,876
)
—
—
(404,876
)
Net income available to common shareholders
—
—
—
—
—
11,596,393
11,596,393
Balance, September 30, 2023
943,272
$
9,431
(334,583
)
$
(31,272,163
)
$
30,585,388
$
104,846,438
$
104,169,094
Dividends on common stock, $1.00 per share
—
—
—
—
—
(630,362
)
(630,362
)
Compensation expense and issuance of stock in connection with equity-based awards
21,673
217
—
—
3,854,347
—
3,854,564
Net income available to common shareholders
—
—
—
—
—
4,336,489
4,336,489
Balance, September 30, 2024
964,945
$
9,648
(334,583
)
$
(31,272,163
)
$
34,439,735
$
108,552,565
$
111,729,785
AMCON Distributing Company and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
September
September
2024
2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income available to common shareholders
$
4,336,489
$
11,596,393
Adjustments to reconcile net income available to common shareholders to net cash flows from (used in) operating activities:
Depreciation
8,957,478
7,161,468
Amortization
537,701
415,178
(Gain) loss on sales of property and equipment
(177,467
)
(133,659
)
Equity-based compensation
2,489,781
2,717,370
Deferred income taxes
(543,644
)
2,589,372
Provision for credit losses
(64,705
)
(133,924
)
Inventory allowance
62,349
(138,820
)
Change in fair value of contingent consideration
(124,992
)
—
Change in fair value of mandatorily redeemable non-controlling interest
1,040,968
1,307,599
Changes in assets and liabilities, net of effects of business combinations:
Accounts receivable
5,900,380
(138,956
)
Inventories
29,003,285
(7,728,394
)
Prepaid and other current assets
2,227,044
(679,229
)
Other assets
(38,193
)
(163,340
)
Accounts payable
11,397,485
2,213,085
Accrued expenses and accrued wages, salaries and bonuses
1,221,322
1,574,050
Other long-term liabilities
511,231
298,914
Income taxes payable and receivable
1,135,839
(1,034,889
)
Net cash flows from (used in) operating activities
67,872,351
19,722,218
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment
(20,429,805
)
(11,561,347
)
Proceeds from sales of property and equipment
416,546
151,808
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
(42,108,695
)
(66,274,842
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under revolving credit facilities
2,517,192,464
2,512,309,723
Repayments under revolving credit facilities
(2,536,358,449
)
(2,463,134,172
)
Proceeds from borrowings on long-term debt
—
7,000,000
Principal payments on long-term debt
(3,765,153
)
(2,349,065
)
Repurchase of common stock
—
(404,876
)
Dividends on common stock
(630,362
)
(3,534,308
)
Redemption and distributions to non-controlling interest
(2,320,299
)
(2,975,323
)
Net cash flows from (used in) financing activities
(25,881,799
)
46,911,979
Net change in cash
(118,143
)
359,355
Cash, beginning of period
790,931
431,576
Cash, end of period
$
672,788
$
790,931
Supplemental disclosure of cash flow information:
Cash paid during the period for interest, net of amounts capitalized
$
9,985,313
$
8,311,375
Cash paid during the period for income taxes, net of refunds
2,520,127
4,141,370
Supplemental disclosure of non-cash information:
Equipment acquisitions classified in accounts payable
$
1,016,948
$
1,015,534
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
