AMCON Distributing Company Reports Results for the Fiscal Year Ended September 30, 2024

About this update from Amcon Distributing Company

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     1,296,372       2,044,805     View source version on businesswire.com: https://www.businesswire.com/news/home/20241108892732/en/

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