AMCON Distributing Company (“AMCON”) (NYSE American: DIT), an Omaha, Nebraska based consumer products company, is pleased to announce fully diluted earnings per share of $5.18 on net income available to common shareholders of $3.0 million for its first fiscal quarter ended December 31, 2021.
“We are pleased with our results for the first fiscal quarter. AMCON continues to navigate a challenging operating environment. Our management team was able to deliver our customers a safe, consistent and seamless level of customer service,” said Christopher H. Atayan, AMCON’s Chairman and Chief Executive Officer. Mr. Atayan further noted, “AMCON remains focused on our long-term strategic initiatives. We continue to seek out acquisition opportunities for distributors who want to align with our growing platform and customer centric management philosophy.”
The wholesale distribution segment reported revenues of $410.6 million and operating income of $7.4 million for the first quarter of fiscal 2022. The retail health food segment reported revenues of $11.9 million and operating income of $0.5 million for the first quarter of fiscal 2022.
“We work collaboratively with our customers to develop customized foodservice and technology platforms. This approach enables our customers to enhance their efficiencies and profitability, which is especially important in light of rapidly changing market conditions. Our customer base is growing geographically, and we are deploying the capital and human resources necessary to support this growth,” said Andrew C. Plummer, AMCON’s President and Chief Operating Officer. Mr. Plummer also noted, “AMCON’s associates and management did an outstanding job of securing the products and staffing necessary to best serve our customers in these challenging conditions.”
Charles J. Schmaderer, AMCON’s Chief Financial Officer said, “We are pleased with the progress of our strategic investment in Team Sledd, LLC. We ended the quarter with $79.6 million of shareholders’ equity and continue to work closely with our banking group to optimize our capital structure. We maintain consistently high levels of liquidity to support the growth of the enterprise.”
AMCON’s Healthy Edge Retail Group plays an important role in the health and wellness of the communities it serves. Throughout the pandemic, our management team has worked diligently to offer a continuous and safe shopping experience for customers. Our long-term relationship with the organic/natural products vendor community has enabled our stores to meet the demands of our customers for total wellness solutions. Our strategy is to offer a broad selection of the highest quality organic and natural merchandise available supported by a high degree of customer service not found at other big box retailers within our industry.
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 also operates twenty (20) 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 |
||||||||
December 31, 2021 and September 30, 2021 |
||||||||
|
|
|
|
|
|
|
||
|
|
December |
|
September |
||||
|
|
2021 |
|
2021 |
||||
|
|
(Unaudited) |
|
|
|
|||
ASSETS |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash |
|
$ |
840,961 |
|
|
$ |
519,591 |
|
Accounts receivable, less allowance for doubtful accounts of $0.8 million at December 2021 and $0.9 million at September 2021 |
|
|
30,861,247 |
|
|
|
35,844,163 |
|
Inventories, net |
|
|
97,742,318 |
|
|
|
95,212,085 |
|
Prepaid expenses and other current assets |
|
|
4,830,698 |
|
|
|
4,999,125 |
|
Total current assets |
|
|
134,275,224 |
|
|
|
136,574,964 |
|
|
|
|
|
|
|
|
||
Property and equipment, net |
|
|
15,449,705 |
|
|
|
16,012,524 |
|
Operating lease right-of-use assets, net |
|
|
16,942,549 |
|
|
|
17,846,529 |
|
Note receivable, net of current portion |
|
|
3,325,000 |
|
|
|
3,325,000 |
|
Goodwill |
|
|
4,436,950 |
|
|
|
4,436,950 |
|
Other intangible assets, net |
|
|
500,000 |
|
|
|
500,000 |
|
Equity method investment |
|
|
10,406,708 |
|
|
|
9,380,343 |
|
Other assets |
|
|
312,635 |
|
|
|
334,819 |
|
Total assets |
|
$ |
185,648,771 |
|
|
$ |
188,411,129 |
|
|
|
|
|
|
|
|
||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
18,372,775 |
|
|
$ |
24,235,042 |
|
Accrued expenses |
|
|
9,686,140 |
|
|
|
11,468,955 |
|
Accrued wages, salaries and bonuses |
|
|
2,892,772 |
|
|
|
4,489,852 |
|
Income taxes payable |
|
|
1,194,512 |
|
|
|
867,160 |
|
Current operating lease liabilities |
|
|
5,555,582 |
|
|
|
5,513,390 |
|
Current maturities of long-term debt |
|
|
566,624 |
|
|
|
561,202 |
|
Total current liabilities |
|
|
38,268,405 |
|
|
|
47,135,601 |
|
|
|
|
|
|
|
|
||
Credit facility |
|
|
48,447,738 |
|
|
|
43,650,865 |
|
Deferred income tax liability, net |
|
|
2,704,876 |
|
|
|
1,531,228 |
|
Long-term operating lease liabilities |
|
|
11,723,408 |
|
|
|
12,669,157 |
|
Long-term debt, less current maturities |
|
|
4,910,559 |
|
|
|
5,054,265 |
|
Other long-term liabilities |
|
|
13,611 |
|
|
|
757,387 |
|
|
|
|
|
|
|
|
||
Shareholders’ equity: |
|
|
|
|
|
|
||
Preferred stock, $.01 par value, 1,000,000 shares authorized |
|
|
— |
|
|
|
— |
|
Common stock, $.01 par value, 3,000,000 shares authorized, 582,789 shares outstanding at December 2021 and 551,369 shares outstanding at
|
|
|
9,148 |
|
|
|
8,834 |
|
Additional paid-in capital |
|
|
26,999,735 |
|
|
|
24,918,781 |
|
Retained earnings |
|
|
83,438,578 |
|
|
|
83,552,298 |
|
Treasury stock at cost |
|
|
(30,867,287 |
) |
|
|
(30,867,287 |
) |
Total shareholders’ equity |
|
|
79,580,174 |
|
|
|
77,612,626 |
|
Total liabilities and shareholders’ equity |
|
$ |
185,648,771 |
|
|
$ |
188,411,129 |
|
AMCON Distributing Company and Subsidiaries |
||||||||
Condensed Consolidated Unaudited Statements of Operations |
||||||||
for the three months ended December 31, 2021 and 2020 |
||||||||
|
|
|
|
|
|
|
||
|
|
For the three months ended December |
||||||
|
|
2021 |
|
2020 |
||||
Sales (including excise taxes of $97.1 million and $100.5 million, respectively) |
|
$ |
422,571,278 |
|
|
$ |
404,744,774 |
|
Cost of sales |
|
|
395,638,615 |
|
|
|
381,282,795 |
|
Gross profit |
|
|
26,932,663 |
|
|
|
23,461,979 |
|
Selling, general and administrative expenses |
|
|
22,390,740 |
|
|
|
18,599,816 |
|
Depreciation |
|
|
784,245 |
|
|
|
774,285 |
|
|
|
|
23,174,985 |
|
|
|
19,374,101 |
|
Operating income |
|
|
3,757,678 |
|
|
|
4,087,878 |
|
|
|
|
|
|
|
|
||
Other expense (income): |
|
|
|
|
|
|
||
Interest expense |
|
|
322,097 |
|
|
|
376,430 |
|
Other (income), net |
|
|
(40,109 |
) |
|
|
(41,823 |
) |
|
|
|
281,988 |
|
|
|
334,607 |
|
Income from operations before income taxes |
|
|
3,475,690 |
|
|
|
3,753,271 |
|
Income tax expense |
|
|
1,245,000 |
|
|
|
1,011,000 |
|
Equity method investment earnings, net of tax |
|
|
770,365 |
|
|
|
335,339 |
|
Net income available to common shareholders |
|
$ |
3,001,055 |
|
|
$ |
3,077,610 |
|
|
|
|
|
|
|
|
||
Basic earnings per share available to common shareholders |
|
$ |
5.33 |
|
|
$ |
5.61 |
|
Diluted earnings per share available to common shareholders |
|
$ |
5.18 |
|
|
$ |
5.57 |
|
|
|
|
|
|
|
|
||
Basic weighted average shares outstanding |
|
|
563,546 |
|
|
|
548,125 |
|
Diluted weighted average shares outstanding |
|
|
578,964 |
|
|
|
552,059 |
|
|
|
|
|
|
|
|
||
Dividends paid per common share |
|
$ |
5.18 |
|
|
$ |
0.18 |
|
AMCON Distributing Company and Subsidiaries |
|||||||||||||||||||||||
Condensed Consolidated Unaudited Statements of Shareholders’ Equity |
|||||||||||||||||||||||
for the three months ended December 31, 2021 and 2020 |
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
Additional |
|
|
|
|
|
|
|||||
|
|
Common Stock |
|
Treasury Stock |
|
Paid-in |
|
Retained |
|
|
|
||||||||||||
|
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Capital |
|
Earnings |
|
Total |
|||||||||
THREE MONTHS ENDED DECEMBER 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Balance, October 1, 2020 |
|
869,867 |
|
$ |
8,697 |
|
(332,152 |
) |
|
$ |
(30,861,549 |
) |
|
$ |
24,282,058 |
|
$ |
71,362,334 |
|
|
$ |
64,791,540 |
|
Dividends on common stock, $5.18 per share |
|
— |
|
|
— |
|
— |
|
|
|
— |
|
|
|
— |
|
|
(3,038,544 |
) |
|
|
(3,038,544 |
) |
Compensation expense and issuance of stock in connection with equity-based awards |
|
13,722 |
|
|
137 |
|
— |
|
|
|
— |
|
|
|
725,181 |
|
|
— |
|
|
|
725,318 |
|
Repurchase of common stock |
|
— |
|
|
— |
|
(68 |
) |
|
|
(5,738 |
) |
|
|
— |
|
|
— |
|
|
|
(5,738 |
) |
Net income |
|
— |
|
|
— |
|
— |
|
|
|
— |
|
|
|
— |
|
|
3,077,610 |
|
|
|
3,077,610 |
|
Balance, December 31, 2020 |
|
883,589 |
|
$ |
8,834 |
|
(332,220 |
) |
|
$ |
(30,867,287 |
) |
|
$ |
25,007,239 |
|
$ |
71,401,400 |
|
|
$ |
65,550,186 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
THREE MONTHS ENDED DECEMBER 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Balance, October 1, 2021 |
|
883,589 |
|
$ |
8,834 |
|
(332,220 |
) |
|
$ |
(30,867,287 |
) |
|
$ |
24,918,781 |
|
$ |
83,552,298 |
|
|
$ |
77,612,626 |
|
Dividends on common stock, $5.18 per share |
|
— |
|
|
— |
|
— |
|
|
|
— |
|
|
|
— |
|
|
(3,114,775 |
) |
|
|
(3,114,775 |
) |
Compensation expense and issuance of stock in connection with equity-based awards |
|
31,420 |
|
|
314 |
|
— |
|
|
|
— |
|
|
|
2,080,954 |
|
|
— |
|
|
|
2,081,268 |
|
Repurchase of common stock |
|
— |
|
|
— |
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
Net income |
|
— |
|
|
— |
|
— |
|
|
|
— |
|
|
|
— |
|
|
3,001,055 |
|
|
|
3,001,055 |
|
Balance, December 31, 2021 |
|
915,009 |
|
$ |
9,148 |
|
(332,220 |
) |
|
$ |
(30,867,287 |
) |
|
$ |
26,999,735 |
|
$ |
83,438,578 |
|
|
$ |
79,580,174 |
|
AMCON Distributing Company and Subsidiaries |
||||||||
Condensed Consolidated Unaudited Statements of Cash Flows |
||||||||
for the three months ended December 31, 2021 and 2020 |
||||||||
|
|
|
|
|
|
|
||
|
|
December |
|
December |
||||
|
|
2021 |
|
2020 |
||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
||
Net income |
|
$ |
3,001,055 |
|
|
$ |
3,077,610 |
|
Adjustments to reconcile net income from operations to net cash flows from (used in) operating activities: |
|
|
|
|
|
|
||
Depreciation |
|
|
784,245 |
|
|
|
774,285 |
|
Equity method investment earnings, net of tax |
|
|
(770,365 |
) |
|
|
(335,339 |
) |
(Gain) loss on sales of property and equipment |
|
|
(31,000 |
) |
|
|
(2,000 |
) |
Equity-based compensation |
|
|
710,056 |
|
|
|
346,891 |
|
Deferred income taxes |
|
|
1,173,648 |
|
|
|
132,736 |
|
Provision for losses on doubtful accounts |
|
|
(102,000 |
) |
|
|
(24,000 |
) |
Inventory allowance |
|
|
99,304 |
|
|
|
172,137 |
|
Changes in assets and liabilities: |
|
|
|
|
|
|
||
Accounts receivable |
|
|
5,084,916 |
|
|
|
4,589,579 |
|
Inventories |
|
|
(2,629,537 |
) |
|
|
30,967,449 |
|
Prepaid and other current assets |
|
|
(6,573 |
) |
|
|
(5,792,622 |
) |
Other assets |
|
|
22,184 |
|
|
|
40,193 |
|
Accounts payable |
|
|
(5,750,609 |
) |
|
|
(5,069,889 |
) |
Accrued expenses and accrued wages, salaries and bonuses |
|
|
(1,519,848 |
) |
|
|
(1,793,704 |
) |
Other long-term liabilities |
|
|
(743,776 |
) |
|
|
(169,854 |
) |
Income taxes payable and receivable |
|
|
71,352 |
|
|
|
(211,854 |
) |
Net cash flows from (used in) operating activities |
|
|
(606,948 |
) |
|
|
26,701,618 |
|
|
|
|
|
|
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
||
Purchase of property and equipment |
|
|
(333,084 |
) |
|
|
(432,505 |
) |
Proceeds from sales of property and equipment |
|
|
31,000 |
|
|
|
2,000 |
|
Principal payment received on note receivable |
|
|
175,000 |
|
|
|
— |
|
Net cash flows from (used in) investing activities |
|
|
(127,084 |
) |
|
|
(430,505 |
) |
|
|
|
|
|
|
|
||
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
||
Borrowings under revolving credit facility |
|
|
439,039,482 |
|
|
|
385,943,710 |
|
Repayments under revolving credit facility |
|
|
(434,242,609 |
) |
|
|
(414,863,443 |
) |
Proceeds from borrowings on long-term debt |
|
|
— |
|
|
|
3,000,000 |
|
Principal payments on long-term debt |
|
|
(138,284 |
) |
|
|
(136,119 |
) |
Repurchase of common stock |
|
|
— |
|
|
|
(5,738 |
) |
Dividends on common stock |
|
|
(3,114,775 |
) |
|
|
(105,599 |
) |
Settlement and withholdings of equity-based awards |
|
|
(488,412 |
) |
|
|
(250,021 |
) |
Net cash flows from (used in) financing activities |
|
|
1,055,402 |
|
|
|
(26,417,210 |
) |
Net change in cash |
|
|
321,370 |
|
|
|
(146,097 |
) |
Cash, beginning of period |
|
|
519,591 |
|
|
|
661,195 |
|
Cash, end of period |
|
$ |
840,961 |
|
|
$ |
515,098 |
|
|
|
|
|
|
|
|
||
Supplemental disclosure of cash flow information: |
|
|
|
|
|
|
||
Cash paid during the period for interest |
|
$ |
333,941 |
|
|
$ |
426,655 |
|
Cash paid during the period for income taxes |
|
|
— |
|
|
|
1,090,119 |
|
|
|
|
|
|
|
|
||
Supplemental disclosure of non-cash information: |
|
|
|
|
|
|
||
Equipment acquisitions classified in accounts payable |
|
$ |
16,591 |
|
|
$ |
16,007 |
|
Dividends declared, not paid |
|
|
— |
|
|
|
2,932,945 |
|
Issuance of common stock in connection with the vesting and exercise of equity-based awards |
|
|
2,280,783 |
|
|
|
949,812 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20220118006070/en/
Contacts
Christopher H. Atayan
AMCON Distributing Company
Ph 402-331-3727
