AMCON Distributing Company Reports Results for the Fiscal Year Ended September 30, 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 $27.36 on net income available to common shareholders of $15.5 million for the fiscal year ended September 30, 2021. AMCON earned $11.00 per fully diluted share on net income available to common shareholders of $6.3 million for the fourth fiscal quarter ended September 30, 2021.

“We are pleased with our fiscal 2021 results. AMCON’s associates and management did an outstanding job of securing the products and staffing necessary for success in the convenience distribution industry. We have a long-standing tradition of providing a superior level of customer service. This core operating philosophy has guided us through these difficult times and helped ensure that AMCON’s customers have received a consistent and timely flow of goods and services,” said Christopher H. Atayan, AMCON’s Chairman and Chief Executive Officer. He further noted, “We continue to seek strategic acquisition opportunities for operators who want to align with our customer centric management philosophy.”

The wholesale distribution segment reported revenues of $1.6 billion and operating income of $24.5 million for fiscal 2021, and revenues and operating income of $438.7 million and $7.9 million, respectively, for the fourth fiscal quarter of fiscal 2021. The retail health food segment reported revenues of $47.3 million and operating income of $1.8 million for fiscal 2021, and revenues of $12.1 million and operating income of $0.6 million for the fourth fiscal quarter of fiscal 2021.

“We remain committed to making the requisite capital expenditures in the coming years to support the Company’s investments in its foodservice and technology platforms, expand its geographic reach, and the continued redevelopment of its retail health food store portfolio. We continue to expand the territories we serve as our customers grow their store footprint,” said Andrew C. Plummer, AMCON’s President and Chief Operating Officer.

Charles J. Schmaderer, AMCON’s Chief Financial Officer said, “At September 30, 2021, our shareholders’ equity was $77.6 million, resulting in adjusted book value per share of $139.27. During fiscal 2021, we turned our inventory 20 times and ended the year with $49.3 million of consolidated debt. At its lowest point during fiscal 2021, the Company’s consolidated debt was approximately $28.8 million.” Mr. Schmaderer also added, “We are pleased with the results of our investment in Team Sledd, LLC.”

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

CONSOLIDATED BALANCE SHEETS

September

September

2021

2020

ASSETS

Current assets:

Cash

$

519,591

$

661,195

Accounts receivable, less allowance for doubtful accounts of $0.9 million at September 2021 and September 2020

35,844,163

34,278,429

Inventories, net

95,212,085

98,971,773

Prepaid expenses and other current assets

4,999,125

2,091,645

Total current assets

136,574,964

136,003,042

Property and equipment, net

16,012,524

17,497,274

Operating lease right-of-use assets, net

17,846,529

18,936,126

Note receivable, net of current portion

3,325,000

3,500,000

Goodwill

4,436,950

4,436,950

Other intangible assets, net

500,000

500,000

Equity method investment

9,380,343

6,744,095

Other assets

334,819

383,786

Total assets

$

188,411,129

$

188,001,273

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:

Accounts payable

$

24,235,042

$

22,108,299

Accrued expenses

11,468,955

8,306,160

Accrued wages, salaries and bonuses

4,489,852

4,761,020

Income taxes payable

867,160

567,408

Current operating lease liabilities

5,513,390

5,607,098

Current maturities of long-term debt

561,202

516,850

Total current liabilities

47,135,601

41,866,835

Credit facility

43,650,865

61,971,682

Deferred income tax liability, net

1,531,228

1,806,575

Long-term operating lease liabilities

12,669,157

14,028,606

Long-term debt, less current maturities

5,054,265

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 September 2021 and 537,715 shares outstanding at September 2020

8,834

8,697

Additional paid-in capital

24,918,781

24,282,058

Retained earnings

83,552,298

71,362,334

Treasury stock at cost

(30,867,287

)

(30,861,549

)

Total shareholders’ equity

77,612,626

64,791,540

Total liabilities and shareholders’ equity

$

188,411,129

$

188,001,273

AMCON Distributing Company and Subsidiaries

CONSOLIDATED STATEMENTS OF OPERATIONS

Fiscal Years Ended September

2021

2020

Sales (including excise taxes of $403.9 million and $393.3 million, respectively)

$

1,672,378,581

$

1,521,278,763

Cost of sales

1,571,829,805

1,433,544,831

Gross profit

100,548,776

87,733,932

Selling, general and administrative expenses

79,631,140

75,051,227

Depreciation

3,093,017

3,116,449

Impairment charges

485,270

82,724,157

78,652,946

Operating income

17,824,619

9,080,986

Other expense (income):

Interest expense

1,339,560

1,693,251

Other (income), net

(203,228

)

(114,276

)

1,136,332

1,578,975

Income from operations before income taxes

16,688,287

7,502,011

Income tax expense

4,501,000

2,143,000

Equity method investment earnings, net of tax

3,357,978

183,579

Net income available to common shareholders

$

15,545,265

$

5,542,590

Basic earnings per share available to common shareholders

$

28.24

$

9.88

Diluted earnings per share available to common shareholders

$

27.36

$

9.76

Basic weighted average shares outstanding

550,551

561,166

Diluted weighted average shares outstanding

568,103

567,961

Dividends declared and paid per common share

$

5.72

$

1.00

AMCON Distributing Company and Subsidiaries

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

Additional

Common Stock

Treasury Stock

Paid-in

Retained

Shares

Amount

Shares

Amount

Capital

Earnings

Total

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, $1.00 per share

(594,653

)

(594,653

)

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

13,828

136

1,116,419

1,116,555

Repurchase of common stock

(28,727

)

(2,029,694

)

(2,029,694

)

Net income

5,542,590

5,542,590

Balance September 30, 2020

869,867

$

8,697

(332,152

)

$

(30,861,549

)

$

24,282,058

$

71,362,334

$

64,791,540

Dividends on common stock, $5.72 per share

(3,355,301

)

(3,355,301

)

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

13,722

137

636,723

636,860

Repurchase of common stock

(68

)

(5,738

)

(5,738

)

Net income

15,545,265

15,545,265

Balance, September 30, 2021

883,589

$

8,834

(332,220

)

$

(30,867,287

)

$

24,918,781

$

83,552,298

$

77,612,626

AMCON Distributing Company and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

September

September

2021

2020

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income

$

15,545,265

$

5,542,590

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

operating activities:

Depreciation

3,093,017

3,116,449

Equity method investment earnings, net of tax

(3,357,978

)

(183,579

)

Impairment charges

485,270

(Gain) loss on sales of property and equipment

(9,864

)

105,039

Equity-based compensation

2,415,156

1,085,287

Deferred income taxes

(275,347

)

(16,798

)

Provision for losses on doubtful accounts

50,000

(21,000

)

Inventory allowance

37,708

(322,240

)

Changes in assets and liabilities:

Accounts receivable

(1,615,734

)

(9,591,809

)

Inventories

3,721,980

3,693,984

Prepaid and other current assets

(2,732,480

)

4,794,469

Equity method investment distributions

1,392,730

Other assets

48,967

(110,207

)

Accounts payable

1,998,494

3,529,980

Accrued expenses and accrued wages, salaries and bonuses

1,164,828

1,353,113

Other long-term liabilities

(169,854

)

885,230

Income taxes payable and receivable

(371,248

)

857,270

Net cash flows from (used in) operating activities

20,935,640

15,203,048

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchase of property and equipment

(1,525,882

)

(3,356,573

)

Proceeds from sales of property and equipment

55,728

43,600

Investment in equity method investee

(6,500,000

)

Issuance of note receivable

(3,500,000

)

Net cash flows from (used in) investing activities

(1,470,154

)

(13,312,973

)

CASH FLOWS FROM FINANCING ACTIVITIES:

Borrowings under revolving credit facility

1,663,751,276

1,515,476,055

Repayments under revolving credit facility

(1,682,072,093

)

(1,513,881,087

)

Proceeds from borrowings on long-term debt

3,000,000

Principal payments on long-term debt

(510,177

)

(532,747

)

Proceeds from exercise of stock options

25,750

Repurchase of common stock

(5,738

)

(2,029,694

)

Dividends on common stock

(3,355,301

)

(594,653

)

Settlement and withholdings of equity-based awards

(415,057

)

(30,208

)

Net cash flows from (used in) financing activities

(19,607,090

)

(1,566,584

)

Net change in cash

(141,604

)

323,491

Cash, beginning of period

661,195

337,704

Cash, end of period

$

519,591

$

661,195

Supplemental disclosure of cash flow information:

Cash paid during the period for interest

$

1,353,985

$

1,743,098

Cash paid during the period for income taxes

5,138,454

1,302,528

Supplemental disclosure of non-cash information:

Equipment acquisitions classified in accounts payable

$

128,249

$

Issuance of common stock in connection with the vesting and exercise of

equity-based awards

949,812

990,653

AMCON Distributing Company and Subsidiaries

 

FISCAL YEAR 2021

(dollars in thousands, except per share data)

First

Second

Third

Fourth

Sales

$

404,745

$

378,513

$

438,313

$

450,807

Gross profit

23,462

22,973

25,542

28,572

Income from operations before income taxes

3,753

2,944

4,013

5,978

Net income available to common shareholders

$

3,078

$

2,429

$

3,691

$

6,348

Basic earnings per share available to common shareholders

$

5.61

$

4.41

$

6.69

$

11.51

Diluted earnings per share available to common shareholders

$

5.57

$

4.33

$

6.48

$

11.00

FISCAL YEAR 2020

(dollars in thousands, except per share data)

First

Second

Third

Fourth

Sales

$

360,101

$

337,887

$

396,854

$

426,437

Gross profit

20,845

20,693

21,652

24,543

Income from operations before income taxes

701

1,032

2,054

3,715

Net income available to common shareholders

$

452

$

699

$

1,580

$

2,812

Basic earnings per share available to common shareholders

$

.80

$

1.24

$

2.79

$

5.10

Diluted earnings per share available to common shareholders

$

.80

$

1.22

$

2.77

$

5.00

The Company’s quarterly earnings per share are based on weighted average shares outstanding for the quarter; therefore the sum of the quarters may not equal the full year earnings per share amount.

AMCON Distributing Company and Subsidiaries

GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures

The financial measure of adjusted book value per share included in this press release (“adjusted book value per share”) has been determined by methods other than in accordance with U.S. generally accepted accounting principles (“GAAP”). Management believes that this non-GAAP financial measurement reflects an additional way of viewing aspects of the Company’s business that, when viewed together with its financial results computed in accordance with GAAP, provides a more complete understanding of factors affecting historical financial performance of the Company. This measure is important to investors interested in determining the amount of book value per share if all potentially dilutive shares were exercised or vested and outstanding. This non-GAAP financial measurement is not intended to be a substitute for the comparable GAAP measurements and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP.

The Company has defined the non-GAAP financial measure of adjusted book value per share as follows:

  • “Adjusted book value per share” is defined as total shareholders’ equity increased by the impact of proceeds from the exercise of all stock options and vesting of restricted stock units divided by total common shares outstanding plus common shares issuable upon the exercise of all stock options and vesting of restricted stock units.”

September 2021

Number of common shares outstanding at September 30, 2021

551,369

Total shareholders’ equity at September 30, 2021

$

77,612,626

Book value per share at September 30, 2021

$

140.76

September 2021

Number of common shares outstanding at September 30, 2021

551,369

Add: common shares potentially issuable for stock options and unvested restricted stock units /1/

57,470

608,839

Total shareholders’ equity at September 30, 2021

$

77,612,626

Equity impact if all potential common shares were exercised or vested /1/

7,177,416

$

84,790,042

Adjusted book value per share at September 30, 2021

$

139.27

____________

/1/

Assumes the exercise of all vested and unvested stock options and vesting of all outstanding restricted stock units at September 30, 2021.

Contacts:

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

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