U.S. Markets closed

AMCON Distributing Company Reports Results for the Quarter Ended December 31, 2019

AMCON Distributing Company ("AMCON") (NYSE American: DIT), an Omaha, Nebraska-based consumer products company is pleased to announce fully diluted earnings per share of $0.80 on net income available to common shareholders of $0.5 million for its first fiscal quarter ended December 31, 2019.

"AMCON has a legacy of first-class service and reliability which is the foundation of our position as a leader in the convenience distribution industry," said Christopher H. Atayan, AMCON’s Chairman and Chief Executive Officer. He further noted, "The convenience store industry continues to embrace foodservice programs that are attractive to customers and competitive with quick serve restaurants. AMCON develops foodservice programs offering contemporary menu options that are optimal for our customers’ staffing and facility requirements. Additionally, our management team seeks strategic acquisition opportunities that expand the depth and breadth of our service territory, or enhance the portfolio of services we offer our customers."

"Our service territory is expanding as our customers grow," said Andrew C. Plummer, AMCON’s President and Chief Operating Officer. He further noted, "With that growth, we continue to invest in our facilities, the development of leading edge technology and efficient logistics capabilities that are necessary to serve our customers’ needs on a daily basis. We were pleased to close December 31, 2019 with shareholders’ equity of $62.0 million and consolidated debt of $37.1 million."

The wholesale distribution segment reported revenues of $350.0 million and operating income of $3.6 million for the first quarter of fiscal 2020. The retail health food segment reported revenues of $10.1 million and an operating loss of $1.1 million for the first quarter of fiscal 2020.

AMCON is a leading wholesale distributor of consumer products, including beverages, candy, tobacco, groceries, foodservice, frozen and chilled foods, and health and beauty care products with locations in Illinois, Missouri, Nebraska, North Dakota, South Dakota and Tennessee. AMCON also operates twenty-two (22) 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

December 31, 2019 and September 30, 2019

 

 

 

December

 

September

 

 

2019

 

2019

 

 

(Unaudited)

 

 

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash

 

$

439,991

 

 

$

337,704

 

Accounts receivable, less allowance for doubtful accounts of $1.2 million at December 2019 and $0.9 million at September 2019

 

 

31,466,281

 

 

 

24,665,620

 

Inventories, net

 

 

62,958,790

 

 

 

102,343,517

 

Income taxes receivable

 

 

254,606

 

 

 

350,378

 

Prepaid and other current assets

 

 

8,464,551

 

 

 

7,148,459

 

Total current assets

 

 

103,584,219

 

 

 

134,845,678

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

18,323,979

 

 

 

17,655,415

 

Operating lease right-of-use assets, net

 

 

20,523,782

 

 

 

 

Goodwill

 

 

4,436,950

 

 

 

4,436,950

 

Other intangible assets, net

 

 

500,000

 

 

 

500,000

 

Other assets

 

 

231,527

 

 

 

273,579

 

Total assets

 

$

147,600,457

 

 

$

157,711,622

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

17,189,294

 

 

$

18,647,572

 

Accrued expenses

 

 

6,608,838

 

 

 

8,577,972

 

Accrued wages, salaries and bonuses

 

 

1,960,785

 

 

 

3,828,847

 

Current operating lease liabilities

 

 

5,460,582

 

 

 

 

Current maturities of long-term debt

 

 

537,285

 

 

 

532,747

 

Total current liabilities

 

 

31,756,784

 

 

 

31,587,138

 

 

 

 

 

 

 

 

Credit facility

 

 

33,524,029

 

 

 

60,376,714

 

Deferred income tax liability, net

 

 

1,978,165

 

 

 

1,823,373

 

Long-term operating lease liabilities

 

 

15,397,681

 

 

 

 

Long-term debt, less current maturities

 

 

2,989,526

 

 

 

3,125,644

 

Other long-term liabilities

 

 

 

 

 

42,011

 

 

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

 

 

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

 

 

 

 

 

 

Common stock, $.01 par value, 3,000,000 shares authorized, 565,833 shares outstanding at December 2019 and 552,614 shares outstanding at September 2019

 

 

8,692

 

 

 

8,561

 

Additional paid-in capital

 

 

24,192,954

 

 

 

23,165,639

 

Retained earnings

 

 

66,592,637

 

 

 

66,414,397

 

Treasury stock at cost

 

 

(28,840,011

)

 

 

(28,831,855

)

Total shareholders’ equity

 

 

61,954,272

 

 

 

60,756,742

 

Total liabilities and shareholders’ equity

 

$

147,600,457

 

 

$

157,711,622

 

AMCON Distributing Company and Subsidiaries

Condensed Consolidated Unaudited Statements of Operations

for the three months ended December 31, 2019 and 2018

 

 

 

 

 

 

 

 

 

For the three months ended December

 

 

2019

 

2018

Sales (including excise taxes of $94.0 million and $93.0 million, respectively)

 

$

360,101,103

 

 

$

344,733,920

 

Cost of sales

 

 

339,256,392

 

 

 

324,101,782

 

Gross profit

 

 

20,844,711

 

 

 

20,632,138

 

Selling, general and administrative expenses

 

 

18,952,735

 

 

 

17,957,214

 

Depreciation and amortization

 

 

725,461

 

 

 

608,008

 

 

 

 

19,678,196

 

 

 

18,565,222

 

Operating income

 

 

1,166,515

 

 

 

2,066,916

 

 

 

 

 

 

 

 

Other expense (income):

 

 

 

 

 

 

Interest expense

 

 

472,423

 

 

 

322,950

 

Other (income), net

 

 

(6,778

)

 

 

(3,355

)

 

 

 

465,645

 

 

 

319,595

 

Income from operations before income taxes

 

 

700,870

 

 

 

1,747,321

 

Income tax expense

 

 

249,000

 

 

 

502,000

 

Net income available to common shareholders

 

$

451,870

 

 

$

1,245,321

 

 

 

 

 

 

 

 

Basic earnings per share available to common shareholders

 

$

0.80

 

 

$

2.02

 

Diluted earnings per share available to common shareholders

 

$

0.80

 

 

$

1.99

 

 

 

 

 

 

 

 

Basic weighted average shares outstanding

 

 

562,578

 

 

 

617,858

 

Diluted weighted average shares outstanding

 

 

567,794

 

 

 

624,525

 

 

 

 

 

 

 

 

Dividends declared and paid per common share

 

$

0.18

 

 

$

0.18

 

AMCON Distributing Company and Subsidiaries

Condensed Consolidated Unaudited Statements of Shareholders’ Equity

for the three months ended December 31, 2019 and 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

 

 

Common Stock

 

Treasury Stock

 

Paid in

 

Retained

 

 

 

 

 

Shares

 

Amount

 

Shares

 

Amount

 

Capital

 

Earnings

 

Total

THREE MONTHS ENDED DECEMBER 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, October 1, 2018

 

844,089

 

$

8,441

 

(228,312

)

 

$

(21,324,752

)

 

$

22,069,098

 

$

63,848,030

 

 

$

64,600,817

 

Dividends on common stock, $0.46 per share

 

 

 

 

 

 

 

 

 

 

 

 

(296,936

)

 

 

(296,936

)

Compensation expense and issuance of stock in connection with equity-based awards

 

11,950

 

 

120

 

 

 

 

 

 

 

1,041,615

 

 

 

 

 

1,041,735

 

Repurchase of common stock

 

 

 

 

(10,432

)

 

 

(918,085

)

 

 

 

 

 

 

 

(918,085

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

1,245,321

 

 

 

1,245,321

 

Balance, December 31, 2018

 

856,039

 

$

8,561

 

(238,744

)

 

$

(22,242,837

)

 

$

23,110,713

 

$

64,796,415

 

 

$

65,672,852

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

THREE MONTHS ENDED DECEMBER 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, October 1, 2019

 

856,039

 

$

8,561

 

(303,425

)

 

$

(28,831,855

)

 

$

23,165,639

 

$

66,414,397

 

 

$

60,756,742

 

Dividends on common stock, $0.46 per share

 

 

 

 

 

 

 

 

 

 

 

 

(273,630

)

 

 

(273,630

)

Compensation expense and issuance of stock in connection with equity-based awards

 

13,328

 

 

131

 

 

 

 

 

 

 

1,027,315

 

 

 

 

 

1,027,446

 

Repurchase of common stock

 

 

 

 

(109

)

 

 

(8,156

)

 

 

 

 

 

 

 

(8,156

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

451,870

 

 

 

451,870

 

Balance, December 31, 2019

 

869,367

 

$

8,692

 

(303,534

)

 

$

(28,840,011

)

 

$

24,192,954

 

$

66,592,637

 

 

$

61,954,272

 

AMCON Distributing Company and Subsidiaries

Condensed Consolidated Unaudited Statements of Cash Flows

for the three months ended December 31, 2019 and 2018

 

 

 

 

 

 

 

 

 

December

 

December

 

 

2019

 

2018

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

Net income

 

$

451,870

 

 

$

1,245,321

 

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

 

 

 

 

 

 

Depreciation

 

 

725,461

 

 

 

592,383

 

Amortization

 

 

 

 

 

15,625

 

Equity-based compensation

 

 

129,931

 

 

 

316,056

 

Deferred income taxes

 

 

154,792

 

 

 

276,942

 

Provision for losses on doubtful accounts

 

 

371,000

 

 

 

11,000

 

Inventory allowance

 

 

51,587

 

 

 

117,531

 

Other

 

 

(42,011

)

 

 

989

 

 

 

 

 

 

 

 

Changes in assets and liabilities:

 

 

 

 

 

 

Accounts receivable

 

 

(7,171,661

)

 

 

689,059

 

Inventories

 

 

39,333,140

 

 

 

22,199,828

 

Prepaid and other current assets

 

 

(1,578,437

)

 

 

(4,321,455

)

Other assets

 

 

42,052

 

 

 

50,265

 

Accounts payable

 

 

(1,623,841

)

 

 

(4,261,996

)

Accrued expenses and accrued wages, salaries and bonuses

 

 

(2,509,401

)

 

 

(2,515,963

)

Income taxes receivable

 

 

95,772

 

 

 

225,058

 

Net cash flows from (used in) operating activities

 

 

28,430,254

 

 

 

14,640,643

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

Purchase of property and equipment

 

 

(1,228,462

)

 

 

(956,976

)

Net cash flows from (used in) investing activities

 

 

(1,228,462

)

 

 

(956,976

)

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

Borrowings under revolving credit facility

 

 

330,596,076

 

 

 

336,212,413

 

Repayments under revolving credit facility

 

 

(357,448,761

)

 

 

(348,325,547

)

Principal payments on long-term debt

 

 

(131,580

)

 

 

(235,188

)

Repurchase of common stock

 

 

(8,156

)

 

 

(918,085

)

Dividends on common stock

 

 

(107,084

)

 

 

(116,196

)

Net cash flows from (used in) financing activities

 

 

(27,099,505

)

 

 

(13,382,603

)

Net change in cash

 

 

102,287

 

 

 

301,064

 

Cash, beginning of period

 

 

337,704

 

 

 

520,644

 

Cash, end of period

 

$

439,991

 

 

$

821,708

 

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

Cash paid during the period for interest

 

$

519,459

 

 

$

306,243

 

Cash paid (refunded) during the period for income taxes

 

 

(1,563

)

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of non-cash information:

 

 

 

 

 

 

Equipment acquisitions classified in accounts payable

 

$

234,816

 

 

$

200,782

 

Dividends declared, not paid

 

 

166,546

 

 

 

180,740

 

Issuance of common stock in connection with the vesting and exercise of equity-based awards

 

 

990,653

 

 

 

1,005,792

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20200120005512/en/

Contacts

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