AMCON Distributing Company (“AMCON”) (NYSE American: DIT), an
Omaha, Nebraska based consumer products company, is pleased to
announce fully diluted earnings per share of $4.33 on net income
available to common shareholders of $2.4 million for its second
fiscal quarter ended March 31, 2021.
“We are pleased with our results for the second fiscal quarter.
AMCON takes a long-term strategic view to the operation of our
business. Providing our valued partners with the highest level of
service guides our focus on a daily basis. Our outstanding team of
associates work tirelessly to provide value to the customers and
communities we serve,” 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 $366.2
million and operating income of $4.4 million for the second quarter
of fiscal 2021. The retail health food segment reported revenues of
$12.3 million and operating income of $0.7 million for the second
quarter of fiscal 2021.
“Supply chain management is an essential element of servicing
our customers in this challenging environment. Our proprietary
technology platforms and state-of-the-art foodservice programs are
tools we use to enhance our customers’ profitability. Our customer
base continues to grow geographically and AMCON is 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,
“AMCON is pleased with the progress of our strategic investment in
Team Sledd, LLC. We ended the quarter with $67.8 million of
shareholders’ equity and continue to relentlessly focus on
maintaining high levels of liquidity in our business to support
operations and our growth initiatives.”
AMCON’s Healthy Edge Retail Group plays an important role in the
health and wellness of the communities it serves. Throughout the
pandemic, our management team has worked diligently to offer a
continuous and safe shopping experience for customers. 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 chilled foods, and health and beauty care products with
locations in Illinois, Missouri, Nebraska, North Dakota, South
Dakota and Tennessee. AMCON also 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, 2021 and September
30, 2020
March
September
2021
2020
(Unaudited)
ASSETS
Current assets:
Cash
$
616,109
$
661,195
Accounts receivable, less allowance for
doubtful accounts of $0.9 million at March 2021 and September
2020
32,883,402
34,278,429
Inventories, net
81,088,400
98,971,773
Income taxes receivable
85,705
—
Prepaid and other current assets
6,188,097
2,091,645
Total current assets
120,861,713
136,003,042
Property and equipment, net
16,670,297
17,497,274
Operating lease right-of-use assets,
net
17,588,664
18,936,126
Note receivable
3,500,000
3,500,000
Goodwill
4,436,950
4,436,950
Other intangible assets, net
500,000
500,000
Equity method investment
7,606,925
6,744,095
Other assets
360,459
383,786
Total assets
$
171,525,008
$
188,001,273
LIABILITIES AND SHAREHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
22,553,918
$
22,108,299
Accrued expenses
8,737,907
8,306,160
Accrued wages, salaries and bonuses
3,656,777
4,761,020
Income taxes payable
—
567,408
Current operating lease liabilities
5,744,143
5,607,098
Current maturities of long-term debt
516,189
516,850
Total current liabilities
41,208,934
41,866,835
Credit facility
42,109,177
61,971,682
Deferred income tax liability, net
1,854,823
1,806,575
Long-term operating lease liabilities
12,438,764
14,028,606
Long-term debt, less current
maturities
5,371,889
2,608,794
Other long-term liabilities
757,387
927,241
Shareholders’ equity:
Preferred stock, $.01 par value, 1,000,000
shares authorized
—
—
Common stock, $.01 par value, 3,000,000
shares authorized, 551,369 shares outstanding at March 2021 and
537,715 shares outstanding at September 2020
8,834
8,697
Additional paid-in capital
24,917,765
24,282,058
Retained earnings
73,724,722
71,362,334
Treasury stock at cost
(30,867,287
)
(30,861,549
)
Total shareholders’ equity
67,784,034
64,791,540
Total liabilities and shareholders’
equity
$
171,525,008
$
188,001,273
AMCON Distributing Company and Subsidiaries
Condensed Consolidated
Unaudited Statements of Operations
for the three and six months
ended March 31, 2021 and 2020
For the three months ended
March
For the six months ended
March
2021
2020
2021
2020
Sales (including excise taxes of $92.0
million and $87.5 million, and $192.5 million and $181.5 million,
respectively)
$
378,513,490
$
337,886,516
$
783,258,263
$
697,987,619
Cost of sales
355,540,704
317,193,063
736,823,498
656,449,455
Gross profit
22,972,786
20,693,453
46,434,765
41,538,164
Selling, general and administrative
expenses
19,022,167
18,512,890
37,621,983
37,465,626
Depreciation and amortization
779,925
790,901
1,554,210
1,516,361
19,802,092
19,303,791
39,176,193
38,981,987
Operating income
3,170,694
1,389,662
7,258,572
2,556,177
Other expense (income):
Interest expense
310,543
387,263
686,973
859,686
Other (income), net
(84,265
)
(29,920
)
(126,088
)
(36,697
)
226,278
357,343
560,885
822,989
Income from operations before income
taxes
2,944,416
1,032,319
6,697,687
1,733,188
Income tax expense
829,000
333,000
1,840,000
582,000
Equity method investment earnings, net of
tax
313,492
—
648,831
—
Net income available to common
shareholders
$
2,428,908
$
699,319
$
5,506,518
$
1,151,188
Basic earnings per share available to
common shareholders
$
4.41
$
1.24
$
10.02
$
2.04
Diluted earnings per share available to
common shareholders
$
4.33
$
1.22
$
9.87
$
2.02
Basic weighted average shares
outstanding
551,369
565,697
549,729
564,129
Diluted weighted average shares
outstanding
560,941
571,852
557,741
569,856
Dividends declared and paid per common
share
$
5.18
$
0.46
$
5.36
$
0.64
AMCON Distributing Company and Subsidiaries
Condensed Consolidated
Unaudited Statements of Shareholders’ Equity
for the three and six months
ended March 31, 2021 and 2020
Additional
Common Stock
Treasury Stock
Paid-in
Retained
Shares
Amount
Shares
Amount
Capital
Earnings
Total
THREE MONTHS ENDED MARCH 2020
Balance, January 1, 2020
869,367
$
8,692
(303,534
)
$
(28,840,011
)
$
24,192,954
$
66,592,637
$
61,954,272
Dividends on common stock, $0.18 per
share
—
—
—
—
—
(107,056
)
(107,056
)
Compensation expense and issuance of stock
in connection with equity-based awards
—
—
—
—
31,191
—
31,191
Repurchase of common stock
—
—
(307
)
(23,643
)
—
—
(23,643
)
Net income
—
—
—
—
—
699,319
699,319
Balance, March 31, 2020
869,367
$
8,692
(303,841
)
$
(28,863,654
)
$
24,224,145
$
67,184,900
$
62,554,083
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 issuance of stock
in connection with 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
Additional
Common Stock
Treasury Stock
Paid-in
Retained
Shares
Amount
Shares
Amount
Capital
Earnings
Total
SIX MONTHS ENDED MARCH 2020
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, $0.64 per
share
—
—
—
—
—
(380,685
)
(380,685
)
Compensation expense and issuance of stock
in connection with equity-based awards
13,328
131
—
—
1,058,506
—
1,058,637
Repurchase of common stock
—
—
(416
)
(31,799
)
—
—
(31,799
)
Net income
—
—
—
—
—
1,151,188
1,151,188
Balance, March 31, 2020
869,367
$
8,692
(303,841
)
$
(28,863,654
)
$
24,224,145
$
67,184,900
$
62,554,083
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 issuance of stock
in connection with 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
AMCON Distributing Company and Subsidiaries
Condensed Consolidated
Unaudited Statements of Cash Flows
for the six months ended March
31, 2021 and 2020
March
March
2021
2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income
$
5,506,518
$
1,151,188
Adjustments to reconcile net income from
operations to net cash flows from (used in) operating
activities:
Depreciation
1,554,210
1,516,361
Equity method investment earnings, net of
tax
(648,831
)
—
(Gain) loss on sales of property and
equipment
(1,374
)
33,642
Equity-based compensation
833,624
446,114
Deferred income taxes
48,248
102,163
Provision for losses on doubtful
accounts
5,000
390,000
Inventory allowance
110,769
55,746
Other
—
(42,011
)
Changes in assets and liabilities:
Accounts receivable
1,390,027
(3,535,875
)
Inventories
17,772,604
17,375,263
Prepaid and other current assets
(4,096,452
)
(100,883
)
Other assets
23,327
(133,074
)
Accounts payable
429,389
4,401,077
Accrued expenses and accrued wages,
salaries and bonuses
(610,589
)
(1,432,939
)
Other long-term liabilities
(169,854
)
—
Income taxes payable and receivable
(867,112
)
178,013
Net cash flows from (used in) operating
activities
21,279,504
20,404,785
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment
(720,567
)
(2,245,139
)
Proceeds from sales of property and
equipment
10,938
—
Net cash flows from (used in) investing
activities
(709,629
)
(2,245,139
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under revolving credit
facility
771,182,879
680,161,101
Repayments under revolving credit
facility
(791,045,384
)
(697,319,735
)
Proceeds from borrowings on long-term
debt
3,000,000
—
Principal payments on long-term debt
(237,566
)
(264,275
)
Repurchase of common stock
(5,738
)
(31,799
)
Dividends on common stock
(3,144,130
)
(380,685
)
Settlement and withholdings of
equity-based awards
(365,022
)
—
Net cash flows from (used in) financing
activities
(20,614,961
)
(17,835,393
)
Net change in cash
(45,086
)
324,253
Cash, beginning of period
661,195
337,704
Cash, end of period
$
616,109
$
661,957
Supplemental disclosure of cash flow
information:
Cash paid during the period for
interest
$
690,134
$
927,322
Cash paid during the period for income
taxes
2,658,865
301,824
Supplemental disclosure of non-cash
information:
Equipment acquisitions classified in
accounts payable
$
16,230
$
6,583
Issuance of common stock in connection
with the vesting and exercise of equity-based awards
949,812
990,653
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210419005833/en/
Christopher H. Atayan AMCON Distributing Company Ph
402-331-3727
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