EX-99.1 2 a52252890ex99_1.htm EXHIBIT 99.1
Exhibit 99.1

AMCON Distributing Company Reports Results for the Quarter Ended June 30, 2020

OMAHA, Neb.--(BUSINESS WIRE)--July 20, 2020--AMCON Distributing Company (“AMCON”) (NYSE American: DIT), an Omaha, Nebraska based consumer products company is pleased to announce fully diluted earnings per share of $2.77 on net income available to common shareholders of $1.6 million for its third fiscal quarter ended June 30, 2020.

“AMCON continues to fulfill our role as an essential service provider and a key component of the United States supply chain as a distributor to convenience stores, truck stops, and rural grocery stores. In addition, our retail health food segment provides nutritional supplements that are an important component of health, wellness and immunity support,” said Christopher H. Atayan, AMCON’s Chairman and Chief Executive Officer. “We continue to be focused on our long-term strategic plan and are actively seeking acquisitions and other opportunities to expand the enterprise.”

“Our management team and associates have worked around the clock to secure product and position the organizational and operational assets that are at the foundation of our philosophy as a customer focused service organization. We have many long-term relationships with our key vendors which enabled us to navigate a challenging operational environment and minimize disruptions from the pandemic,” said Andrew C. Plummer, AMCON’s President and Chief Operating Officer. Mr. Plummer added, “We were pleased to close June 30, 2020 with shareholders’ equity of $64.0 million and consolidated debt of $59.6 million.”

The wholesale distribution segment reported revenues of $385.3 million and operating income of $4.4 million for the third quarter of fiscal 2020. The retail health food segment reported revenues of $11.5 million and an operating loss of $0.2 million for the third 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’s Healthy Edge Retail Group also operates twenty-one (21) 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

June 30, 2020 and September 30, 2019

 

 

 

 

 

 

 

 

 

June

 

September

 

 

2020

 

2019

 

 

(Unaudited)

 

 

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash

 

$

596,564

 

 

$

337,704

 

Accounts receivable, less allowance for doubtful accounts of $1.2 million at June 2020 and $0.9 million at September 2019

 

 

33,626,042

 

 

 

24,665,620

 

Inventories, net

 

 

82,009,219

 

 

 

102,343,517

 

Income taxes receivable

 

 

—

 

 

 

350,378

 

Prepaid and other current assets

 

 

7,259,528

 

 

 

7,148,459

 

Total current assets

 

 

123,491,353

 

 

 

134,845,678

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

18,236,033

 

 

 

17,655,415

 

Operating lease right-of-use assets, net

 

 

19,705,044

 

 

 

—

 

Note receivable

 

 

3,500,000

 

 

 

—

 

Goodwill

 

 

4,436,950

 

 

 

4,436,950

 

Other intangible assets, net

 

 

500,000

 

 

 

500,000

 

Equity method investment

 

 

6,648,666

 

 

 

—

 

Other assets

 

 

399,943

 

 

 

273,579

 

Total assets

 

$

176,917,989

 

 

$

157,711,622

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

20,719,129

 

 

$

18,647,572

 

Accrued expenses

 

 

7,067,083

 

 

 

8,577,972

 

Accrued wages, salaries and bonuses

 

 

2,968,148

 

 

 

3,828,847

 

Income taxes payable

 

 

480,649

 

 

 

—

 

Current operating lease liabilities

 

 

5,486,963

 

 

 

—

 

Current maturities of long-term debt

 

 

546,657

 

 

 

532,747

 

Total current liabilities

 

 

37,268,629

 

 

 

31,587,138

 

 

 

 

 

 

 

 

Credit facility

 

 

56,384,002

 

 

 

60,376,714

 

Deferred income tax liability, net

 

 

1,820,511

 

 

 

1,823,373

 

Long-term operating lease liabilities

 

 

14,578,728

 

 

 

—

 

Long-term debt, less current maturities

 

 

2,713,798

 

 

 

3,125,644

 

Other long-term liabilities

 

 

167,755

 

 

 

42,011

 

 

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

 

 

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

 

 

—

 

 

 

—

 

Common stock, $.01 par value, 3,000,000 shares authorized, 564,878 shares outstanding at June 2020 and 552,614 shares outstanding at September 2019

 

 

8,697

 

 

 

8,561

 

Additional paid-in capital

 

 

24,250,873

 

 

 

23,165,639

 

Retained earnings

 

 

68,657,375

 

 

 

66,414,397

 

Treasury stock at cost

 

 

(28,932,379

)

 

 

(28,831,855

)

Total shareholders’ equity

 

 

63,984,566

 

 

 

60,756,742

 

Total liabilities and shareholders’ equity

 

$

176,917,989

 

 

$

157,711,622

 









 

 

AMCON Distributing Company and Subsidiaries

Condensed Consolidated Unaudited Statements of Operations

for the three and nine months ended June 30, 2020 and 2019

 






 


 

For the three months ended June

 

For the nine months ended June

 

 

2020

 

 

 

2019

 

 

 

2020

 


 

2019

 

Sales (including excise taxes of $103.6 million and $98.0 million, and $285.1 million and $274.0 million, respectively)

$

396,854,324

 

 

$

369,981,516

 

 

$

1,094,841,943

 

 

$

1,025,431,309

 

Cost of sales

 

375,202,044

 

 

 

349,455,624

 

 

 

1,031,651,499

 

 

 

963,683,859

 

Gross profit

 

21,652,280

 

 

 

20,525,892

 

 

 

63,190,444

 

 

 

61,747,450

 

Selling, general and administrative expenses

 

18,377,641

 

 

 

18,513,048

 

 

 

55,843,266

 

 

 

53,861,943

 

Depreciation and amortization

 

801,683

 

 

 

620,142

 

 

 

2,318,045

 

 

 

1,869,378

 

 

 

19,179,324

 

 

 

19,133,190

 

 

 

58,161,311

 

 

 

55,731,321

 

Operating income

 

2,472,956

 

 

 

1,392,702

 

 

 

5,029,133

 

 

 

6,016,129

 

 

 

 

 

 

 

 

 

Other expense (income):

 

 

 

 

 

 

 

Interest expense

 

461,581

 

 

 

381,469

 

 

 

1,321,267

 

 

 

1,100,995

 

Other (income), net

 

(42,525

)

 

 

(15,446

)

 

 

(79,222

)

 

 

(55,081

)

 

 

419,056

 

 

 

366,023

 

 

 

1,242,045

 

 

 

1,045,914

 

Income from operations before income taxes

 

2,053,900

 

 

 

1,026,679

 

 

 

3,787,088

 

 

 

4,970,215

 

Income tax expense

 

586,000

 

 

 

361,000

 

 

 

1,168,000

 

 

 

1,536,000

 

Equity method investment earnings, net of tax

 

111,666

 

 

 

—

 

 

 

111,666

 

 

 

—

 

Net income available to common shareholders

$

1,579,566

 

 

$

665,679

 

 

$

2,730,754

 

 

$

3,434,215

 

 

 

 

 

 

 

 

 

Basic earnings per share available to common shareholders

$

2.79

 

 

$

1.12

 

 

$

4.84

 

 

$

5.65

 

Diluted earnings per share available to common shareholders

$

2.77

 

 

$

1.10

 

 

$

4.79

 

 

$

5.56

 

 

 

 

 

 

 

 

 

Basic weighted average shares outstanding

 

565,483

 

 

 

592,768

 

 

 

564,578

 

 

 

607,505

 

Diluted weighted average shares outstanding

 

569,902

 

 

 

606,278

 

 

 

569,873

 

 

 

617,887

 

 

 

 

 

 

 

 

 

Dividends declared and paid per common share

$

0.18

 

 

$

0.18

 

 

$

0.82

 

 

$

0.82

 








 

 

AMCON Distributing Company and Subsidiaries

Condensed Consolidated Unaudited Statements of Shareholders’ Equity

for the three and nine months ended June 30, 2020 and 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

 

 

Common Stock

 

Treasury Stock

 

Paid-in

 

Retained

 

 

 

 

 

Shares

 

Amount

 

Shares

 

Amount

 

Capital

 

Earnings

 

Total

THREE MONTHS ENDED JUNE 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, April 1, 2019

 

856,039

 

$

8,561

 

(263,271

)

 

$

(24,511,598

)

 

$

23,148,372

 

$

66,203,466

 

 

$

64,848,801

 

Dividends on common stock, $0.18 per share

 

—

 

 

—

 

—

 

 

 

—

 

 

 

—

 

 

(111,766

)

 

 

(111,766

)

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

 

—

 

 

—

 

—

 

 

 

—

 

 

 

36,801

 

 

—

 

 

 

36,801

 

Repurchase of common stock

 

—

 

 

—

 

(1

)

 

 

(141

)

 

 

—

 

 

—

 

 

 

(141

)

Net income

 

—

 

 

—

 

—

 

 

 

—

 

 

 

—

 

 

665,679

 

 

 

675,679

 

Balance, June 30, 2019

 

856,039

 

$

8,561

 

(263,272

)

 

$

(24,511,739

)

 

$

23,185,173

 

$

66,757,379

 

 

$

65,439,374

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

THREE MONTHS ENDED JUNE 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, April 1, 2020

 

869,367

 

$

8,692

 

(303,841

)

 

$

(28,863,654

)

 

$

24,224,145

 

$

67,184,900

 

 

$

62,554,083

 

Dividends on common stock, $0.18 per share

 

—

 

 

—

 

—

 

 

 

—

 

 

 

—

 

 

(107,091

)

 

 

(107,091

)

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

 

500

 

 

5

 

—

 

 

 

—

 

 

 

26,728

 

 

—

 

 

 

26,733

 

Repurchase of common stock

 

—

 

 

—

 

(1,148

)

 

 

(68,725

)

 

 

—

 

 

—

 

 

 

(68,725

)

Net income

 

—

 

 

—

 

—

 

 

 

—

 

 

 

—

 

 

1,579,566

 

 

 

1,579,566

 

Balance, June 30, 2020

 

869,867

 

$

8,697

 

(304,989

)

 

$

(28,932,379

)

 

$

24,250,873

 

$

68,657,375

 

 

$

63,984,566

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

 

 

Common Stock

 

Treasury Stock

 

Paid-in

 

Retained

 

 

 

 

 

Shares

 

Amount

 

Shares

 

Amount

 

Capital

 

Earnings

 

Total

NINE MONTHS ENDED JUNE 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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, $0.82 per share

 

—

 

 

—

 

—

 

 

 

—

 

 

 

—

 

 

(524,866

)

 

 

(524,866

)

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

 

11,950

 

 

120

 

—

 

 

 

—

 

 

 

1,116,075

 

 

—

 

 

 

1,116,195

 

Repurchase of common stock

 

—

 

 

—

 

(34,960

)

 

 

(3,186,987

)

 

 

—

 

 

—

 

 

 

(3,186,987

)

Net income

 

—

 

 

—

 

—

 

 

 

—

 

 

 

—

 

 

3,434,215

 

 

 

3,434,215

 

Balance, June 30, 2019

 

856,039

 

$

8,561

 

(263,272

)

 

$

(24,511,739

)

 

$

23,185,173

 

$

66,757,379

 

 

$

65,439,374

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NINE MONTHS ENDED JUNE 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, $0.82 per share

 

—

 

 

—

 

—

 

 

 

—

 

 

 

—

 

 

(487,776

)

 

 

(487,776

)

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

 

13,828

 

 

136

 

—

 

 

 

—

 

 

 

1,085,234

 

 

—

 

 

 

1,058,370

 

Repurchase of common stock

 

—

 

 

—

 

(1,564

)

 

 

(100,524

)

 

 

—

 

 

—

 

 

 

(100,524

)

Net income

 

—

 

 

—

 

—

 

 

 

—

 

 

 

—

 

 

2,730,754

 

 

 

2,730,754

 

Balance, June 30, 2020

 

869,867

 

$

8,697

 

(304,989

)

 

$

(28,932,379

)

 

$

24,250,873

 

$

68,657,375

 

 

$

63,984,566

 
























 

 

AMCON Distributing Company and Subsidiaries

Condensed Consolidated Unaudited Statements of Cash Flows

for the nine months ended June 30, 2020 and 2019

 

 

 

 

 

 

 

 

 

June

 

June

 

 

2020

 

2019

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

Net income

 

$

2,730,754

 

 

$

3,434,215

 

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

 

 

 

 

 

 

Depreciation

 

 

2,318,045

 

 

 

1,827,711

 

Amortization

 

 

—

 

 

 

41,667

 

Equity method investment earnings, net of income tax

 

 

(111,666

)

 

 

—

 

Loss (gain) on sales of property and equipment

 

 

17,042

 

 

 

(15,376

)

Equity-based compensation

 

 

765,704

 

 

 

1,035,128

 

Deferred income taxes

 

 

(2,862

)

 

 

112,439

 

Provision for losses on doubtful accounts

 

 

349,000

 

 

 

179,000

 

Inventory allowance

 

 

182,218

 

 

 

454,357

 

 

 

 

 

 

 

 

Changes in assets and liabilities:

 

 

 

 

 

 

Accounts receivable

 

 

(9,309,422

)

 

 

(3,209,941

)

Inventories

 

 

20,152,080

 

 

 

11,468,718

 

Prepaid and other current assets

 

 

(373,414

)

 

 

(5,698,021

)

Other assets

 

 

(126,364

)

 

 

19,712

 

Accounts payable

 

 

2,040,386

 

 

 

2,485,721

 

Accrued expenses and accrued wages, salaries and bonuses

 

 

(1,424,472

)

 

 

(1,460,935

)

Other long-term liabilities

 

 

125,744

 

 

 

2,967

 

Income taxes payable and receivable

 

 

794,027

 

 

 

157,836

 

Net cash flows from (used in) operating activities

 

 

18,126,800

 

 

 

10,835,198

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

Purchase of property and equipment

 

 

(2,901,134

)

 

 

(3,385,977

)

Proceeds from sales of property and equipment

 

 

16,600

 

 

 

56,200

 

Investment in equity method investee

 

 

(6,500,000

)

 

 

—

 

Issuance of note receivable

 

 

(3,500,000

)

 

 

—

 

Net cash flows from (used in) investing activities

 

 

(12,884,534

)

 

 

(3,329,777

)

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

Borrowings under revolving credit facility

 

 

1,083,878,207

 

 

 

1,022,309,940

 

Repayments under revolving credit facility

 

 

(1,087,870,919

)

 

 

(1,025,624,006

)

Principal payments on long-term debt

 

 

(397,936

)

 

 

(686,139

)

Proceeds from exercise of stock options

 

 

25,750

 

 

 

—

 

Repurchase of common stock

 

 

(100,524

)

 

 

(3,186,987

)

Dividends on common stock

 

 

(487,776

)

 

 

(524,866

)

Settlement and withholdings of equity-based awards

 

 

(30,208

)

 

 

—

 

Net cash flows from (used in) financing activities

 

 

(4,983,406

)

 

 

(7,712,058

)

Net change in cash

 

 

258,860

 

 

 

(206,637

)

Cash, beginning of period

 

 

337,704

 

 

 

520,644

 

Cash, end of period

 

$

596,564

 

 

$

314,007

 

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

Cash paid during the period for interest

 

$

1,387,381

 

 

$

1,140,562

 

Cash paid during the period for income taxes

 

 

376,835

 

 

 

1,265,725

 

 

 

 

 

 

 

 

Supplemental disclosure of non-cash information:

 

 

 

 

 

 

Equipment acquisitions classified in accounts payable

 

$

100,424

 

 

$

91,838

 

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

 

 

990,653

 

 

 

1,005,792

 

 

Contacts

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