OMAHA, Neb.--(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:
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 |
|
|
1,296,372 |
|
|
|
2,044,805 |
|
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