AMCON Distributing Company Reports Results for the Quarter Ended December 31, 2023
AMCON Distributing Company ("AMCON" or "the Company") (NYSE:DIT), an Omaha, Nebraska based consumer products company, is pleased to announce fully diluted earnings per share of $1.78 on net income available to common shareholders of $1.1 million for its first fiscal quarter ended December 31, 2023.
"We are pleased with our first quarter 2024 results. Our business continues to encounter numerous operating challenges resulting from a labor shortage, supply chain issues, inflation, volatility in energy prices, and the impact of rising interest rates. The customer-centric philosophy AMCON embraces has enabled our management team to work closely with our customers to ensure a timely flow of goods and services," said Christopher H. Atayan, AMCON's Chairman and Chief Executive Officer. He further noted, "We are actively pursuing strategic acquisition opportunities in the Convenience Distributor and Foodservice sectors."
"We are investing heavily in our foodservice and technology platforms and associated staffing for these strategic focus areas," said Andrew C. Plummer, AMCON's President and Chief Operating Officer. Mr. Plummer added, "We are also looking to expand our geographic reach to better serve our customers as they grow their store footprints."
Charles J. Schmaderer, AMCON's Chief Financial Officer said, "At December 31, 2023, our shareholders' equity was $106.9 million. Our strong liquidity position provided maximum flexibility to take advantage of attractive short-term merchandising opportunities that materialized during the quarter." Mr. Schmaderer also added, "Our new 175,000 square foot distribution facility in Springfield, Missouri became partially operational in the first fiscal quarter and we will continue to invest in the facility to support our customers' growth initiatives."
AMCON, and its subsidiaries Team Sledd, LLC and Henry's Foods, Inc., is a leading Convenience Distributor of consumer products, including beverages, candy, tobacco, groceries, foodservice, frozen and refrigerated foods, automotive supplies and health and beauty care products with distribution centers in Illinois, 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 |
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Condensed Consolidated Balance Sheets |
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December 31, 2023 and September 30, 2023 |
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December |
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September |
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2023 |
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2023 |
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|
(Unaudited) |
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ASSETS |
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|
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Current assets: |
|
|
|
|
|
|
|
||
Cash |
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|
$ |
996,695 |
|
|
$ |
790,931 |
|
Accounts receivable, less allowance for credit losses of $2.3 million at December 2023 and $2.4 million at September 2023 |
|
|
|
68,822,905 |
|
|
|
70,878,420 |
|
Inventories, net |
|
|
|
158,167,362 |
|
|
|
158,582,816 |
|
Income taxes receivable |
|
|
|
1,517,687 |
|
|
|
1,854,484 |
|
Prepaid expenses and other current assets |
|
|
|
13,926,848 |
|
|
|
13,564,056 |
|
Total current assets |
|
|
|
243,431,497 |
|
|
|
245,670,707 |
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|
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|
|
|
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||
Property and equipment, net |
|
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|
81,730,692 |
|
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|
80,607,451 |
|
Operating lease right-of-use assets, net |
|
|
|
23,345,042 |
|
|
|
23,173,287 |
|
Goodwill |
|
|
|
5,778,325 |
|
|
|
5,778,325 |
|
Other intangible assets, net |
|
|
|
5,150,510 |
|
|
|
5,284,935 |
|
Other assets |
|
|
|
2,936,861 |
|
|
|
2,914,495 |
|
Total assets |
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|
$ |
362,372,927 |
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|
$ |
363,429,200 |
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LIABILITIES AND SHAREHOLDERS' EQUITY |
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Current liabilities: |
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Accounts payable |
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$ |
44,059,086 |
|
|
$ |
43,099,326 |
|
Accrued expenses |
|
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|
13,788,439 |
|
|
|
14,922,279 |
|
Accrued wages, salaries and bonuses |
|
|
|
5,160,357 |
|
|
|
8,886,529 |
|
Current operating lease liabilities |
|
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|
6,019,749 |
|
|
|
6,063,048 |
|
Current maturities of long-term debt |
|
|
|
1,972,096 |
|
|
|
1,955,065 |
|
Current mandatorily redeemable non-controlling interest |
|
|
|
1,757,236 |
|
|
|
1,703,604 |
|
Total current liabilities |
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|
72,756,963 |
|
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|
76,629,851 |
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Credit facilities |
|
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|
140,073,953 |
|
|
|
140,437,989 |
|
Deferred income tax liability, net |
|
|
|
5,385,163 |
|
|
|
4,917,960 |
|
Long-term operating lease liabilities |
|
|
|
17,646,454 |
|
|
|
17,408,758 |
|
Long-term debt, less current maturities |
|
|
|
11,167,890 |
|
|
|
11,675,439 |
|
Mandatorily redeemable non-controlling interest, less current portion |
|
|
|
7,933,339 |
|
|
|
7,787,227 |
|
Other long-term liabilities |
|
|
|
523,157 |
|
|
|
402,882 |
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|
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|
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Shareholders' equity: |
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Preferred stock, $.01 par value, 1,000,000 shares authorized |
|
|
|
— |
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|
|
— |
|
Common stock, $.01 par value, 3,000,000 shares authorized, 630,362 shares outstanding at December 2023 and 608,689 shares outstanding at September 2023 |
|
|
|
9,648 |
|
|
|
9,431 |
|
Additional paid-in capital |
|
|
|
32,521,091 |
|
|
|
30,585,388 |
|
Retained earnings |
|
|
|
105,627,432 |
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|
104,846,438 |
|
Treasury stock at cost |
|
|
|
(31,272,163 |
) |
|
|
(31,272,163 |
) |
Total shareholders' equity |
|
|
|
106,886,008 |
|
|
|
104,169,094 |
|
Total liabilities and shareholders' equity |
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|
$ |
362,372,927 |
|
|
$ |
363,429,200 |
|
AMCON Distributing Company and Subsidiaries |
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Condensed Consolidated Unaudited Statements of Operations |
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for the three months ended December 31, 2023 and 2022 |
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For the three months ended December |
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2023 |
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2022 |
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Sales (including excise taxes of $138.1 million and $130.3 million, respectively) |
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$ |
644,959,073 |
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|
$ |
565,989,507 |
|
Cost of sales |
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|
601,658,151 |
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|
|
531,019,924 |
|
Gross profit |
|
|
43,300,922 |
|
|
|
34,969,583 |
|
Selling, general and administrative expenses |
|
|
37,258,677 |
|
|
|
28,379,186 |
|
Depreciation and amortization |
|
|
2,219,168 |
|
|
|
1,070,886 |
|
|
|
|
39,477,845 |
|
|
|
29,450,072 |
|
Operating income |
|
|
3,823,077 |
|
|
|
5,519,511 |
|
|
|
|
|
|
|
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Other expense (income): |
|
|
|
|
|
|
||
Interest expense |
|
|
2,311,513 |
|
|
|
1,694,158 |
|
Change in fair value of mandatorily redeemable non-controlling interest |
|
|
199,744 |
|
|
|
(54,916 |
) |
Other (income), net |
|
|
(563,141 |
) |
|
|
(53,532 |
) |
|
|
|
1,948,116 |
|
|
|
1,585,710 |
|
Income from operations before income taxes |
|
|
1,874,961 |
|
|
|
3,933,801 |
|
Income tax expense |
|
|
804,000 |
|
|
|
1,304,800 |
|
Net income available to common shareholders |
|
$ |
1,070,961 |
|
|
$ |
2,629,001 |
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|
|
|
|
|
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Basic earnings per share available to common shareholders |
|
$ |
1.80 |
|
|
$ |
4.52 |
|
Diluted earnings per share available to common shareholders |
|
$ |
1.78 |
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|
$ |
4.46 |
|
|
|
|
|
|
|
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Basic weighted average shares outstanding |
|
|
595,623 |
|
|
|
581,612 |
|
Diluted weighted average shares outstanding |
|
|
603,300 |
|
|
|
589,881 |
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|
|
|
|
|
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Dividends paid per common share |
|
$ |
0.18 |
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|
$ |
0.18 |
|
AMCON Distributing Company and Subsidiaries |
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Condensed Consolidated Unaudited Statements of Shareholders' Equity |
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for the three months ended December 31, 2023 and 2022 |
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Additional |
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|
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|
Common Stock |
|
Treasury Stock |
|
Paid-in |
|
Retained |
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|
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Shares |
|
Amount |
|
Shares |
|
Amount |
|
Capital |
|
Earnings |
|
Total |
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THREE MONTHS ENDED DECEMBER 2022 |
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|
|
|
|
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|
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|
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|
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|
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|
||||
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, $5.18 per share |
|
— |
|
|
— |
|
— |
|
|
|
— |
|
|
|
— |
|
|
(3,200,650 |
) |
|
|
(3,200,650 |
) |
Compensation expense and issuance of stock in connection with equity-based awards |
|
26,263 |
|
|
263 |
|
— |
|
|
|
— |
|
|
|
2,453,953 |
|
|
— |
|
|
|
2,454,216 |
|
Net income available to common shareholders |
|
— |
|
|
— |
|
— |
|
|
|
— |
|
|
|
— |
|
|
2,629,001 |
|
|
|
2,629,001 |
|
Balance, December 31, 2022 |
|
943,272 |
|
$ |
9,431 |
|
(332,220 |
) |
|
$ |
(30,867,287 |
) |
|
$ |
29,357,154 |
|
$ |
96,212,704 |
|
|
$ |
94,712,002 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
||||
THREE MONTHS ENDED DECEMBER 2023 |
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
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, $0.46 per share |
|
— |
|
|
— |
|
— |
|
|
|
— |
|
|
|
— |
|
|
(289,967 |
) |
|
|
(289,967 |
) |
Compensation expense and issuance of stock in connection with equity-based awards |
|
21,673 |
|
|
217 |
|
— |
|
|
|
— |
|
|
|
1,935,703 |
|
|
— |
|
|
|
1,935,920 |
|
Net income available to common shareholders |
|
— |
|
|
— |
|
— |
|
|
|
— |
|
|
|
— |
|
|
1,070,961 |
|
|
|
1,070,961 |
|
Balance, December 31, 2023 |
|
964,945 |
|
$ |
9,648 |
|
(334,583 |
) |
|
$ |
(31,272,163 |
) |
|
$ |
32,521,091 |
|
$ |
105,627,432 |
|
|
$ |
106,886,008 |
|
AMCON Distributing Company and Subsidiaries |
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Condensed Consolidated Unaudited Statements of Cash Flows |
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for the three months ended December 31, 2023 and 2022 |
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|
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|
|
|
||
|
|
December |
|
December |
||||
|
|
2023 |
|
2022 |
||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
||
Net income available to common shareholders |
|
$ |
1,070,961 |
|
|
$ |
2,629,001 |
|
Adjustments to reconcile net income available to common shareholders to net cash flows from (used in) operating activities: |
|
|
|
|
|
|
||
Depreciation |
|
|
2,084,743 |
|
|
|
1,028,353 |
|
Amortization |
|
|
134,425 |
|
|
|
42,533 |
|
(Gain) loss on sales of property and equipment |
|
|
(53,287 |
) |
|
|
(36,000 |
) |
Equity-based compensation |
|
|
571,137 |
|
|
|
390,570 |
|
Deferred income taxes |
|
|
467,203 |
|
|
|
1,145,822 |
|
Provision for credit losses |
|
|
(91,969 |
) |
|
|
(496,332 |
) |
Inventory allowance |
|
|
30,988 |
|
|
|
141,087 |
|
Change in fair value of mandatorily redeemable non-controlling interest |
|
|
199,744 |
|
|
|
(54,916 |
) |
Changes in assets and liabilities: |
|
|
|
|
|
|
||
Accounts receivable |
|
|
2,147,484 |
|
|
|
8,381,282 |
|
Inventories |
|
|
384,466 |
|
|
|
(50,699,513 |
) |
Prepaid and other current assets |
|
|
(362,792 |
) |
|
|
45,110 |
|
Other assets |
|
|
(22,366 |
) |
|
|
199,411 |
|
Accounts payable |
|
|
1,627,403 |
|
|
|
(6,602,785 |
) |
Accrued expenses and accrued wages, salaries and bonuses |
|
|
(3,649,088 |
) |
|
|
(4,794,015 |
) |
Other long-term liabilities |
|
|
120,275 |
|
|
|
48,921 |
|
Income taxes payable and receivable |
|
|
336,797 |
|
|
|
158,978 |
|
Net cash flows from (used in) operating activities |
|
|
4,996,124 |
|
|
|
(48,472,493 |
) |
|
|
|
|
|
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
||
Purchase of property and equipment |
|
|
(3,947,143 |
) |
|
|
(1,455,405 |
) |
Proceeds from sales of property and equipment |
|
|
124,803 |
|
|
|
36,000 |
|
Net cash flows from (used in) investing activities |
|
|
(3,822,340 |
) |
|
|
(1,419,405 |
) |
|
|
|
|
|
|
|
||
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
||
Borrowings under revolving credit facilities |
|
|
603,650,771 |
|
|
|
639,488,133 |
|
Repayments under revolving credit facilities |
|
|
(604,014,807 |
) |
|
|
(589,262,053 |
) |
Principal payments on long-term debt |
|
|
(490,518 |
) |
|
|
(202,396 |
) |
Dividends on common stock |
|
|
(113,466 |
) |
|
|
(111,220 |
) |
Net cash flows from (used in) financing activities |
|
|
(968,020 |
) |
|
|
49,912,464 |
|
Net change in cash |
|
|
205,764 |
|
|
|
20,566 |
|
Cash, beginning of period |
|
|
790,931 |
|
|
|
431,576 |
|
Cash, end of period |
|
$ |
996,695 |
|
|
$ |
452,142 |
|
|
|
|
|
|
|
|
||
Supplemental disclosure of cash flow information: |
|
|
|
|
|
|
||
Cash paid during the period for interest |
|
$ |
2,235,562 |
|
|
$ |
1,458,843 |
|
|
|
|
|
|
|
|
||
Supplemental disclosure of non-cash information: |
|
|
|
|
|
|
||
Equipment acquisitions classified in accounts payable |
|
$ |
347,891 |
|
|
$ |
28,183 |
|
Dividends declared, not paid |
|
|
176,501 |
|
|
|
3,089,430 |
|
Issuance of common stock in connection with the vesting of equity-based awards |
|
|
1,296,372 |
|
|
|
2,044,805 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240118483412/en/