AMCON Distributing Company Reports Results for the Quarter Ended March 31, 2021

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

Contacts:

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

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