AMCON Distributing Company Reports Results for the Quarter Ended June 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 $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: www.amcon.com 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     View source version on businesswire.com: https://www.businesswire.com/news/home/20240718546002/en/

View stock analysis, news, and events for Amcon Distributing Company