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AMCON Distributing Company Reports Results for the Quarter Ended March 31, 2022

OMAHA, Neb., April 18, 2022--(BUSINESS WIRE)--AMCON Distributing Company ("AMCON" or "Company") (NYSE American: DIT), an Omaha, Nebraska based consumer products company, is pleased to announce fully diluted earnings per share of $5.19 on net income available to common shareholders of $3.0 million for its second fiscal quarter ended March 31, 2022.

"We are pleased with our results for the second fiscal quarter. Our management team has remained highly focused on delivering a consistently superior level of customer service in a highly challenging operating environment," said Christopher H. Atayan, AMCON’s Chairman and Chief Executive Officer. Mr. Atayan further noted, "AMCON continues 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 $379.5 million and operating income of $6.3 million for the second quarter of fiscal 2022. The retail health food segment reported revenues of $12.4 million and operating income of $0.7 million for the second quarter of fiscal 2022.

"Ongoing supply chain disruptions with the consumer-packaged goods companies we partner with have impacted product availability across all markets, including the convenience distribution industry in which our company operates. The United States continues to experience an acute workforce shortage which we work diligently to address in our daily operations. Our Annual Spring Trade Show was well received and provides momentum as we enter our summer season. AMCON’s customer base continues to grow geographically and we are deploying the capital and human resources necessary to support this growth in a collaborative fashion," said Andrew C. Plummer, AMCON’s President and Chief Operating Officer. Mr. Plummer further noted, "We are actively searching for facilities in, and adjacent to, the geographic markets we serve."

Charles J. Schmaderer, AMCON’s Chief Financial Officer said, "We are pleased with the ongoing progress of our strategic investment in Team Sledd, LLC. As a core operating principle we continue to maintain consistently high levels of liquidity to support the Company’s various strategic initiatives and long-term growth plan. We ended the quarter with $82.0 million of shareholders’ equity."

AMCON’s Healthy Edge Retail Group plays an important role in the health and wellness of the communities it serves. 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 refrigerated foods, automotive supplies and health and beauty care products with distribution locations in Illinois, Missouri, Nebraska, North Dakota, South Dakota and Tennessee. AMCON, through its Healthy Edge Retail Group, 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

March 31, 2022 and September 30, 2021

March

September

2022

2021

(Unaudited)

ASSETS

Current assets:

Cash

$

527,555

$

519,591

Accounts receivable, less allowance for doubtful accounts of $0.9 million at March 2022 and September 2021

33,556,601

35,844,163

Inventories, net

90,248,795

95,212,085

Income taxes receivable

670,234

Prepaid expenses and other current assets

5,476,104

4,999,125

Total current assets

130,479,289

136,574,964

Property and equipment, net

15,282,499

16,012,524

Operating lease right-of-use assets, net

16,280,827

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

10,451,386

9,380,343

Other assets

414,120

334,819

Total assets

$

181,170,071

$

188,411,129

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:

Accounts payable

$

25,601,210

$

24,235,042

Accrued expenses

9,747,031

11,468,955

Accrued wages, salaries and bonuses

4,011,309

4,489,852

Income taxes payable

867,160

Current operating lease liabilities

5,458,358

5,513,390

Current maturities of long-term debt

572,100

561,202

Total current liabilities

45,390,008

47,135,601

Credit facility

35,191,547

43,650,865

Deferred income tax liability, net

2,630,427

1,531,228

Long-term operating lease liabilities

11,123,103

12,669,157

Long-term debt, less current maturities

4,765,465

5,054,265

Other long-term liabilities

36,069

757,387

Shareholders’ equity:

Preferred stock, $.01 par value, 1,000,000 shares authorized

Common stock, $.01 par value, 3,000,000 shares authorized, 584,789 shares outstanding at March 2022 and 551,369 shares outstanding at September 2021

9,168

8,834

Additional paid-in capital

26,555,046

24,918,781

Retained earnings

86,336,525

83,552,298

Treasury stock at cost

(30,867,287

)

(30,867,287

)

Total shareholders’ equity

82,033,452

77,612,626

Total liabilities and shareholders’ equity

$

181,170,071

$

188,411,129

AMCON Distributing Company and Subsidiaries

Condensed Consolidated Unaudited Statements of Operations

for the three and six months ended March 31, 2022 and 2021

For the three months ended March

For the six months ended March

2022

2021

2022

2021

Sales (including excise taxes of $89.1 million and $92.0 million, and $186.2 million and $192.5 million, respectively)

$

391,888,192

$

378,513,490

$

814,459,469

$

783,258,263

Cost of sales

365,211,270

355,540,704

760,849,885

736,823,498

Gross profit

26,676,922

22,972,786

53,609,584

46,434,765

Selling, general and administrative expenses

21,915,351

19,022,167

44,306,090

37,621,983

Depreciation

818,222

779,925

1,602,467

1,554,210

22,733,573

19,802,092

45,908,557

39,176,193

Operating income

3,943,349

3,170,694

7,701,027

7,258,572

Other expense (income):

Interest expense

244,920

310,543

567,018

686,973

Other (income), net

(60,958

)

(84,265

)

(101,068

)

(126,088

)

183,962

226,278

465,950

560,885

Income from operations before income taxes

3,759,387

2,944,416

7,235,077

6,697,687

Income tax expense

1,345,000

829,000

2,590,000

1,840,000

Equity method investment earnings, net of tax

591,795

313,492

1,362,161

648,831

Net income available to common shareholders

$

3,006,182

$

2,428,908

$

6,007,238

$

5,506,518

Basic earnings per share available to common shareholders

$

5.29

$

4.41

$

10.62

$

10.02

Diluted earnings per share available to common shareholders

$

5.19

$

4.33

$

10.33

$

9.87

Basic weighted average shares outstanding

567,889

551,369

565,694

549,729

Diluted weighted average shares outstanding

578,751

560,941

581,328

557,741

Dividends paid per common share

$

0.18

$

5.18

$

5.36

$

5.36

AMCON Distributing Company and Subsidiaries

Condensed Consolidated Unaudited Statements of Shareholders’ Equity

for the three and six months ended March 31, 2022 and 2021

Additional

Common Stock

Treasury Stock

Paid-in

Retained

Shares

Amount

Shares

Amount

Capital

Earnings

Total

THREE MONTHS ENDED MARCH 2021

Balance, January 1, 2021

883,589

$

8,834

(332,220

)

$

(30,867,287

)

$

25,007,239

$

71,401,400

$

65,550,186

Dividends on common stock, $0.18 per share

(105,586

)

(105,586

)

Compensation expense and settlement of equity-based awards

(89,474

)

(89,474

)

Repurchase of common stock

Net income

2,428,908

2,428,908

Balance, March 31, 2021

883,589

$

8,834

(332,220

)

$

(30,867,287

)

$

24,917,765

$

73,724,722

$

67,784,034

THREE MONTHS ENDED MARCH 2022

Balance, January 1, 2022

915,009

$

9,148

(332,220

)

$

(30,867,287

)

$

26,999,735

$

83,438,578

$

79,580,174

Dividends on common stock, $0.18 per share

(108,235

)

(108,235

)

Compensation expense and settlement of equity-based awards

2,000

20

(444,689

)

(444,669

)

Repurchase of common stock

Net income

3,006,182

3,006,182

Balance, March 31, 2022

917,009

$

9,168

(332,220

)

$

(30,867,287

)

$

26,555,046

$

86,336,525

$

82,033,452

Additional

Common Stock

Treasury Stock

Paid-in

Retained

Shares

Amount

Shares

Amount

Capital

Earnings

Total

SIX MONTHS ENDED MARCH 2021

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, $5.36 per share

(3,144,130

)

(3,144,130

)

Compensation expense and settlement of equity-based awards

13,722

137

635,707

635,844

Repurchase of common stock

(68

)

(5,738

)

(5,738

)

Net income

5,506,518

5,506,518

Balance, March 31, 2021

883,589

$

8,834

(332,220

)

$

(30,867,287

)

$

24,917,765

$

73,724,722

$

67,784,034

SIX MONTHS ENDED MARCH 2022

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, $5.36 per share

(3,223,011

)

(3,223,011

)

Compensation expense and settlement of equity-based awards

33,420

334

1,636,265

1,636,599

Repurchase of common stock

Net income

6,007,238

6,007,238

Balance, March 31, 2022

917,009

$

9,168

(332,220

)

$

(30,867,287

)

$

26,555,046

$

86,336,525

$

82,033,452

AMCON Distributing Company and Subsidiaries

Condensed Consolidated Unaudited Statements of Cash Flows

for the six months ended March 31, 2022 and 2021

March

March

2022

2021

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income

$

6,007,238

$

5,506,518

Adjustments to reconcile net income from operations to net cash flows from (used in) operating activities:

Depreciation

1,602,467

1,554,210

Equity method investment earnings, net of tax

(1,362,161

)

(648,831

)

(Gain) loss on sales of property and equipment

(76,220

)

(1,374

)

Equity-based compensation

1,208,655

833,624

Deferred income taxes

1,099,199

48,248

Provision for losses on doubtful accounts

(3,000

)

5,000

Inventory allowance

155,534

110,769

Changes in assets and liabilities:

Accounts receivable

2,290,562

1,390,027

Inventories

4,807,756

17,772,604

Prepaid and other current assets

(651,979

)

(4,096,452

)

Equity method investment distributions

744,118

Other assets

(79,301

)

23,327

Accounts payable

1,465,370

429,389

Accrued expenses and accrued wages, salaries and bonuses

(700,748

)

(610,589

)

Other long-term liabilities

(721,318

)

(169,854

)

Income taxes payable and receivable

(1,990,394

)

(867,112

)

Net cash flows from (used in) operating activities

13,795,778

21,279,504

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchase of property and equipment

(974,424

)

(720,567

)

Proceeds from sales of property and equipment

79,000

10,938

Principal payment received on note receivable

175,000

Net cash flows from (used in) investing activities

(720,424

)

(709,629

)

CASH FLOWS FROM FINANCING ACTIVITIES:

Borrowings under revolving credit facility

819,125,190

771,182,879

Repayments under revolving credit facility

(827,584,508

)

(791,045,384

)

Proceeds from borrowings on long-term debt

3,000,000

Principal payments on long-term debt

(277,902

)

(237,566

)

Proceeds from exercise of stock options

173,590

Repurchase of common stock

(5,738

)

Dividends on common stock

(3,223,011

)

(3,144,130

)

Settlement and withholdings of equity-based awards

(1,280,749

)

(365,022

)

Net cash flows from (used in) financing activities

(13,067,390

)

(20,614,961

)

Net change in cash

7,964

(45,086

)

Cash, beginning of period

519,591

661,195

Cash, end of period

$

527,555

$

616,109

Supplemental disclosure of cash flow information:

Cash paid during the period for interest

$

582,394

$

690,134

Cash paid during the period for income taxes

3,481,196

2,658,865

Supplemental disclosure of non-cash information:

Equipment acquisitions classified in accounts payable

$

29,047

$

16,230

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/20220418005427/en/

Contacts

Christopher H. Atayan
AMCON Distributing Company
Ph 402-331-3727