EX-99.1 2 tm2419731d1_ex99-1.htm EXHIBIT 99.1

Exhibit 99.1

 

 

Amcon2

 

AMCON DISTRIBUTING COMPANY REPORTS RESULTS FOR THE QUARTER ENDED JUNE 30, 2024

 

NEWS RELEASE

 

Omaha, NE, July 18, 2024 - AMCON Distributing Company (“AMCON” or “the Company”) (NYSE American: DIT), an Omaha, Nebraska based Convenience and Foodservice Distributor, is pleased to announce fully diluted earnings per share of $2.46 on net income available to common shareholders of $1.5 million for its third fiscal quarter ended June 30, 2024.

 

“AMCON’s customer-centric philosophy is a competitive advantage in this economic environment, as our customers rely on our ability to deliver a timely flow of goods and services. Foodservice, technology platforms, and associated staffing for these strategic areas are a central focus of our management team. We are committed to making the investments necessary to compete in the marketplace,” said Christopher H. Atayan, AMCON’s Chairman and Chief Executive Officer. He further noted, “We welcome our new team members and customers from our recently completed acquisition of Richmond Master Distributors, Inc. AMCON is committed to pursuing strategic acquisition opportunities in the Convenience Distributor and Foodservice sectors.”

 

“Labor shortages, supply chain issues, inflation, volatility in energy prices, and the impact of rising interest rates continue to present challenges for our business,” said Andrew C. Plummer, AMCON’s President and Chief Operating Officer. Mr. Plummer added, “Our recent acquisitions have enhanced our geographic reach to better serve our customers as they grow their store footprints.”

 

Charles J. Schmaderer, AMCON’s Chief Financial Officer said, “Sales for the fiscal quarter ended June 30, 2024 were $717.9 million and the Company ended the fiscal period with total shareholders’ equity of approximately $110.0 million. We continue to maintain a strong liquidity position and recent amendments to our bank credit facilities provided additional flexibility to pursue our strategic objectives that materialized during the quarter.” Mr. Schmaderer also added, “We continue to invest in the final completion of our 175,000 square foot distribution facility in Springfield, Missouri. In addition, we are also deploying capital in enhanced foodservice capabilities in our recently purchased 250,000 square foot distribution facility in Colorado City, Colorado, and we opened a new retail location in Lakewood Ranch, Florida.”

 

AMCON, and its subsidiaries Team Sledd, LLC and Henry’s Foods, Inc., is a leading Convenience and Foodservice Distributor of consumer products, including beverages, candy, tobacco, groceries, foodservice, frozen and refrigerated foods, automotive supplies and health and beauty care products with thirteen (13) distribution centers in Colorado, Illinois, Indiana, Minnesota, Missouri, Nebraska, North Dakota, South Dakota, Tennessee, and West Virginia. Through its Healthy Edge Retail Group, AMCON operates fifteen (15) health and natural product retail stores in the Midwest and Florida.

 

 

 

 

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

 

For Further Information Contact:

Charles J. Schmaderer

AMCON Distributing Company

Ph 402-331-3727

 

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AMCON Distributing Company and Subsidiaries

Condensed Consolidated Balance Sheets

June 30, 2024 and September 30, 2023

 

   June   September 
   2024   2023 
   (Unaudited)      
ASSETS          
Current assets:          
Cash  $719,342   $790,931 
Accounts receivable, less allowance for credit losses of $2.5 million at June 2024 and $2.4 million at September 2023   80,469,376    70,878,420 
Inventories, net   160,778,835    158,582,816 
Income taxes receivable   330,170    1,854,484 
Prepaid expenses and other current assets   15,991,451    13,564,056 
Total current assets   258,289,174    245,670,707 
           
Property and equipment, net   103,989,865    80,607,451 
Operating lease right-of-use assets, net   24,710,670    23,173,287 
Goodwill   5,778,325    5,778,325 
Other intangible assets, net   4,881,659    5,284,935 
Other assets   2,954,262    2,914,495 
Total assets  $400,603,955   $363,429,200 
           
LIABILITIES AND SHAREHOLDERS’ EQUITY          
Current liabilities:          
Accounts payable  $46,249,366   $43,099,326 
Accrued expenses   16,590,155    14,922,279 
Accrued wages, salaries and bonuses   8,168,882    8,886,529 
Current operating lease liabilities   6,662,109    6,063,048 
Current maturities of long-term debt   5,335,127    1,955,065 
Current mandatorily redeemable non-controlling interest   1,651,608    1,703,604 
Total current liabilities   84,657,247    76,629,851 
           
Credit facilities   156,941,944    140,437,989 
Deferred income tax liability, net   4,594,841    4,917,960 
Long-term operating lease liabilities   18,358,088    17,408,758 
Long-term debt, less current maturities   17,917,378    11,675,439 
Mandatorily redeemable non-controlling interest, less current portion   6,497,523    7,787,227 
Other long-term liabilities   1,669,817    402,882 
           
Shareholders’ equity:          
Preferred stock, $.01 par value, 1,000,000 shares authorized   —    — 
Common stock, $.01 par value, 3,000,000 shares authorized, 630,362 shares outstanding at June 2024 and 608,689 shares outstanding at September 2023   9,648    9,431 
Additional paid-in capital   33,800,187    30,585,388 
Retained earnings   107,429,445    104,846,438 
Treasury stock at cost   (31,272,163)   (31,272,163)
Total shareholders’ equity   109,967,117    104,169,094 
Total liabilities and shareholders’ equity  $400,603,955   $363,429,200 

 

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AMCON Distributing Company and Subsidiaries

Condensed Consolidated Unaudited Statements of Operations

for the three and nine months ended June 30, 2024 and 2023

 

   For the three months ended June   For the nine months ended June 
   2024   2023   2024   2023 
Sales (including excise taxes of $150.2 and $153.7 million, and $415.7 and $414.9 million, respectively)  $717,852,293   $696,489,427   $1,964,688,673   $1,847,472,782 
Cost of sales   669,893,539    649,623,651    1,831,118,129    1,724,504,862 
Gross profit   47,958,754    46,865,776    133,570,544    122,967,920 
Selling, general and administrative expenses   39,920,976    36,851,520    113,857,467    99,227,695 
Depreciation and amortization   2,415,158    2,103,429    6,923,716    4,982,068 
    42,336,134    38,954,949    120,781,183    104,209,763 
Operating income   5,622,620    7,910,827    12,789,361    18,758,157 
                     
Other expense (income):                    
Interest expense   2,903,925    2,385,842    7,463,175    6,249,540 
Change in fair value of mandatorily redeemable non-controlling interest   393,324    698,571    727,457    864,684 
Other (income), net   (78,903)   (931,765)   (833,050)   (1,159,021)
    3,218,346    2,152,648    7,357,582    5,955,203 
Income from operations before income taxes   2,404,274    5,758,179    5,431,779    12,802,954 
Income tax expense   914,875    1,813,800    2,331,875    4,164,000 
Net income available to common shareholders  $1,489,399   $3,944,379   $3,099,904   $8,638,954 
                     
Basic earnings per share available to common shareholders  $2.48   $6.74   $5.18   $14.78 
Diluted earnings per share available to common shareholders  $2.46   $6.59   $5.11   $14.56 
                     
Basic weighted average shares outstanding   600,161    585,625    598,637    584,359 
Diluted weighted average shares outstanding   606,252    598,590    606,151    593,480 
                     
Dividends paid per common share  $0.18   $0.18   $0.82   $5.54 

 

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AMCON Distributing Company and Subsidiaries

Condensed Consolidated Unaudited Statements of Shareholders’ Equity

for the three and nine months ended June 30, 2024 and 2023

 

                   Additional         
   Common Stock   Treasury Stock   Paid-in   Retained     
   Shares   Amount   Shares   Amount   Capital   Earnings   Total 
THREE MONTHS ENDED JUNE 2023                                   
Balance, April 1, 2023   943,272   $9,431    (332,220)  $(30,867,287)  $29,766,566   $98,167,058   $97,075,768 
Dividends on common stock, $0.18 per share   —    —    —    —    —    (111,219)   (111,219)
Compensation expense related to equity-based awards   —    —    —    —    409,411    —    409,411 
Committed repurchase of common stock   —    —    (2,363)   (404,876)   —    —    (404,876)
Net income available to common shareholders   —    —    —    —    —    3,944,379    3,944,379 
Balance, June 30, 2023   943,272   $9,431    (334,583)  $(31,272,163)  $30,175,977   $102,000,218   $100,913,463 
                                    
THREE MONTHS ENDED JUNE 2024                                   
Balance, April 1, 2024   964,945   $9,648    (334,583)  $(31,272,163)  $33,160,639   $106,053,510   $107,951,634 
Dividends on common stock, $0.18 per share   —    —    —    —    —    (113,464)   (113,464)
Compensation expense related to equity-based awards   —    —    —    —    639,548    —    639,548 
Net income available to common shareholders   —    —    —    —    —    1,489,399    1,489,399 
Balance, June 30, 2024   964,945   $9,648    (334,583)  $(31,272,163)  $33,800,187   $107,429,445   $109,967,117 
                                    
                   Additional         
   Common Stock   Treasury Stock   Paid-in   Retained     
   Shares   Amount   Shares   Amount   Capital   Earnings   Total 
NINE MONTHS ENDED JUNE 2023                                   
Balance, October 1, 2022   917,009   $9,168    (332,220)  $(30,867,287)  $26,903,201   $96,784,353   $92,829,435 
Dividends on common stock, $5.54 per share   —    —    —    —    —    (3,423,089)   (3,423,089)
Compensation expense and issuance of
stock in connection with equity-based awards		   26,263    263    —    —    3,272,776    —    3,273,039 
Committed repurchase of common stock   —    —    (2,363)   (404,876)   —    —    (404,876)
Net income available to common shareholders   —    —    —    —    —    8,638,954    8,638,954 
Balance, June 30, 2023   943,272   $9,431    (334,583)  $(31,272,163)  $30,175,977   $102,000,218   $100,913,463 
                                    
NINE MONTHS ENDED JUNE 2024                                   
Balance, October 1, 2023   943,272   $9,431    (334,583)  $(31,272,163)  $30,585,388   $104,846,438   $104,169,094 
Dividends on common stock, $0.82 per share   —    —    —    —    —    (516,897)   (516,897)
Compensation expense and issuance of
stock in connection with equity-based awards		   21,673    217    —    —    3,214,799    —    3,215,016 
Net income available to common shareholders   —    —    —    —    —    3,099,904    3,099,904 
Balance, June 30, 2024   964,945   $9,648    (334,583)  $(31,272,163)  $33,800,187   $107,429,445   $109,967,117 

 

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AMCON Distributing Company and Subsidiaries

Condensed Consolidated Unaudited Statements of Cash Flows

for the nine months ended June 30, 2024 and 2023

 

   June   June 
   2024   2023 
CASH FLOWS FROM OPERATING ACTIVITIES:          
Net income available to common shareholders  $3,099,904   $8,638,954 
Adjustments to reconcile net income available to common shareholders to net cash flows from (used in) operating activities:          
Depreciation   6,520,440    4,701,316 
Amortization   403,276    280,752 
(Gain) loss on sales of property and equipment   (141,522)   (133,159)
Equity-based compensation   1,850,233    1,940,631 
Deferred income taxes   (323,119)   809,616 
Provision for credit losses   131.132    (7,697)
Inventory allowance   175,706    442,603 
Change in fair value of contingent consideration   45,362    — 
Change in fair value of mandatorily redeemable non-controlling interest   727,457    864,684 
Changes in assets and liabilities, net of effects of business combinations:          
Accounts receivable   (4,110,926)   (8,026,950)
Inventories   12,365,936    (12,294,118)
Prepaid and other current assets   (999,319)   (745,490)
Other assets   (39,767)   (569,683)
Accounts payable   4,082,394    10,360,228 
Accrued expenses and accrued wages, salaries and bonuses   1,112,351    1,487,971 
Other long-term liabilities   446,831    185,704 
Income taxes payable and receivable   1,524,314    1,572,253 
Net cash flows from (used in) operating activities   26,870,683    9,507,615 
           
CASH FLOWS FROM INVESTING ACTIVITIES:          
Purchase of property and equipment   (16,793,486)   (6,759,929)
Proceeds from sales of property and equipment   306,748    151,307 
Acquisition of Burklund   (15,464,397)   — 
Acquisition of Richmond Master   (6,631,039)   — 
Acquisition of Henry's   —    (54,865,303)
Net cash flows from (used in) investing activities   (38,582,174)   (61,473,925)
           
CASH FLOWS FROM FINANCING ACTIVITIES:          
Borrowings under revolving credit facilities   1,845,255,576    1,863,027,754 
Repayments under revolving credit facilities   (1,828,751,621)   (1,810,914,231)
Proceeds from borrowings on long-term debt   —    7,000,000 
Principal payments on long-term debt   (2,277,999)   (1,011,559)
Dividends on common stock   (516,897)   (3,423,089)
Redemption and distributions to non-controlling interest   (2,069,157)   (2,405,128)
Net cash flows from (used in) financing activities   11,639,902    52,273,747 
Net change in cash   (71,589)   307,437 
Cash, beginning of period   790,931    431,576 
Cash, end of period  $719,342   $739,013 
           
Supplemental disclosure of cash flow information:          
Cash paid during the period for interest, net of amounts capitalized  $6,976,501   $5,824,144 
Cash paid during the period for income taxes, net of refunds   1,066,105    1,780,000 
           
Supplemental disclosure of non-cash information:          
Equipment acquisitions classified in accounts payable  $83,180   $1,622,224 
Committed repurchase of treasury stock   —    404,876 
Purchase of property financed with promissory note   8,000,000    — 
Portion of Burklund acquisition financed with promissory note   3,900,000    — 
Portion of Burklund acquisition financed with contingent consideration   1,578,444    — 
Issuance of common stock in connection with the vesting of
equity-based awards		   1,296,372    2,044,805 

 

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