AMCON Distributing Company (“AMCON”) (NYSE American: DIT), an Omaha, Nebraska based consumer products company is pleased to announce fully diluted earnings per share of $1.10 on net income available to common shareholders of $0.7 million for its third fiscal quarter ended June 30, 2019.
“AMCON’s emphasis on first class service and reliability is a firm part of our tradition as a leader in the convenience distribution industry. Our leadership team is proactively evaluating strategic facility initiatives to support the growth needs and competitive position of our customer base. As such, we will continue to enthusiastically make investments in people, facilities, and equipment necessary for sustained excellence,” said Christopher H. Atayan, AMCON’s Chairman and Chief Executive Officer. He further noted, “Our Healthy Edge Retail Group management team is planning a comprehensive merchandising and point of sale solution to support our objective of being a total wellness solution for our customers.”
“We collaborate closely with our customers to design cutting edge foodservice programs that are competitive and profitable for our customers. Our portfolio of foodservice warehouse and fleet assets positions us as a leader in the convenience distribution industry,” said Andrew C. Plummer, AMCON’s President and Chief Operating Officer. In addition, he noted, “As the convenience industry consolidates, AMCON’s platform of technology and history of customer service position the business well for strategic acquisitions.” Mr. Plummer further added, “We were pleased to close June 30, 2019 with total shareholders’ equity of $65.4 million and consolidated debt of $36.2 million.”
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-two (22) health and natural product retail stores in the Midwest and Florida. The retail stores operate under the names Akin’s Natural Foods Market www.akins.com in its Midwest market, and Chamberlin's Market & Cafe 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
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June | September | |||||||
2019 | 2018 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash | $ | 314,007 | $ | 520,644 | ||||
Accounts receivable, less allowance for doubtful accounts of $1.0 million at June 2019 and $0.9 million at September 2018 | 34,459,786 | 31,428,845 | ||||||
Inventories, net | 66,946,540 | 78,869,615 | ||||||
Income taxes receivable | 114,276 | 272,112 | ||||||
Prepaid and other current assets | 10,638,796 | 4,940,775 | ||||||
Total current assets | 112,473,405 | 116,031,991 | ||||||
Property and equipment, net | 17,376,511 | 15,768,484 | ||||||
Goodwill | 4,436,950 | 4,436,950 | ||||||
Other intangible assets, net | 3,373,269 | 3,414,936 | ||||||
Other assets | 282,081 | 301,793 | ||||||
Total assets | $ | 137,942,216 | $ | 139,954,154 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 23,403,140 | $ | 20,826,834 | ||||
Accrued expenses | 8,604,004 | 8,556,620 | ||||||
Accrued wages, salaries and bonuses | 2,376,347 | 3,965,733 | ||||||
Current maturities of long-term debt | 808,103 | 1,096,306 | ||||||
Total current liabilities | 35,191,594 | 34,445,493 | ||||||
Credit facility | 32,114,531 | 35,428,597 | ||||||
Deferred income tax liability, net | 1,895,240 | 1,782,801 | ||||||
Long-term debt, less current maturities | 3,260,455 | 3,658,391 | ||||||
Other long-term liabilities | 41,022 | 38,055 | ||||||
Shareholders’ equity: | ||||||||
Preferred stock, $.01 par value, 1,000,000 shares authorized | — | — | ||||||
Common stock, $.01 par value, 3,000,000 shares authorized, 592,767 shares outstanding at June 2019 and 615,777 shares outstanding at September 2018 | 8,561 | 8,441 | ||||||
Additional paid-in capital | 23,185,173 | 22,069,098 | ||||||
Retained earnings | 66,757,379 | 63,848,030 | ||||||
Treasury stock at cost | (24,511,739 | ) | (21,324,752 | ) | ||||
Total shareholders’ equity | 65,439,374 | 64,600,817 | ||||||
Total liabilities and shareholders’ equity | $ | 137,942,216 | $ | 139,954,154 | ||||
AMCON Distributing Company and Subsidiaries
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For the three months ended June | For the nine months ended June | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Sales (including excise taxes of $98.0 million and $96.2 million, and $274.0 million and $267.9 million, respectively) | $ | 369,981,516 | $ | 349,043,200 | $ | 1,025,431,309 | $ | 959,763,695 | ||||||||
Cost of sales | 349,455,624 | 329,930,190 | 963,683,859 | 905,392,747 | ||||||||||||
Gross profit | 20,525,892 | 19,113,010 | 61,747,450 | 54,370,948 | ||||||||||||
Selling, general and administrative expenses | 18,513,048 | 17,008,355 | 53,861,943 | 48,981,383 | ||||||||||||
Depreciation and amortization | 620,142 | 614,710 | 1,869,378 | 1,683,618 | ||||||||||||
19,133,190 | 17,623,065 | 55,731,321 | 50,665,001 | |||||||||||||
Operating income | 1,392,702 | 1,489,945 | 6,016,129 | 3,705,947 | ||||||||||||
Other expense (income): | ||||||||||||||||
Interest expense | 381,469 | 261,510 | 1,100,995 | 777,065 | ||||||||||||
Other (income), net | (15,446 | ) | (18,615 | ) | (55,081 | ) | (51,158 | ) | ||||||||
366,023 | 242,895 | 1,045,914 | 725,907 | |||||||||||||
Income from operations before income taxes | 1,026,679 | 1,247,050 | 4,970,215 | 2,980,040 | ||||||||||||
Income tax expense | 361,000 | 462,000 | 1,536,000 | 376,000 | ||||||||||||
Net income available to common shareholders | $ | 665,679 | $ | 785,050 | $ | 3,434,215 | $ | 2,604,040 | ||||||||
Basic earnings per share available to common shareholders | $ | 1.12 | $ | 1.21 | $ | 5.65 | $ | 3.85 | ||||||||
Diluted earnings per share available to common shareholders | $ | 1.10 | $ | 1.18 | $ | 5.56 | $ | 3.79 | ||||||||
Basic weighted average shares outstanding | 592,768 | 651,170 | 607,505 | 676,103 | ||||||||||||
Diluted weighted average shares outstanding | 606,278 | 664,688 | 617,887 | 686,576 | ||||||||||||
Dividends declared and paid per common share | $ | 0.18 | $ | 0.18 | $ | 0.82 | $ | 0.82 | ||||||||
AMCON Distributing Company and Subsidiaries
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Additional | |||||||||||||||||||||||
Common Stock | Treasury Stock | Paid in | Retained | ||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Earnings | Total | |||||||||||||||||
THREE MONTHS ENDED JUNE 2018 | |||||||||||||||||||||||
Balance, April 1, 2018 | 844,089 | $ | 8,441 | (160,085 | ) | $ | (14,245,830 | ) | $ | 22,036,562 | $ | 62,296,042 | $ | 70,095,215 | |||||||||
Dividends on common stock, $0.18 per share | — | — | — | — | — | (127,937 | ) | (127,937 | ) | ||||||||||||||
Compensation expense and issuance of stock in connection with equity-based awards | — | — | — | — | 5,593 | — | 5,593 | ||||||||||||||||
Repurchase of common stock | — | — | (68,016 | ) | (7,059,864 | ) | — | — | (7,059,864 | ) | |||||||||||||
Net income | — | — | — | — | — | 785,050 | 785,050 | ||||||||||||||||
Balance, June 30, 2018 | 844,089 | $ | 8,441 | (228,101 | ) | $ | (21,305,694 | ) | $ | 22,042,155 | $ | 62,953,155 | $ | 63,698,057 | |||||||||
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 | 665,679 | ||||||||||||||||
Balance, June 30, 2019 | 856,039 | $ | 8,561 | (263,272 | ) | $ | (24,511,739 | ) | $ | 23,185,173 | $ | 66,757,379 | $ | 65,439,374 | |||||||||
Additional | |||||||||||||||||||||||
Common Stock | Treasury Stock | Paid in | Retained | ||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Earnings | Total | |||||||||||||||||
NINE MONTHS ENDED JUNE 2018 | |||||||||||||||||||||||
Balance, October 1, 2017 | 831,438 | $ | 8,314 | (153,432 | ) | $ | (13,601,302 | ) | $ | 20,825,919 | $ | 60,935,911 | $ | 68,168,842 | |||||||||
Dividends on common stock, $0.82 per share | — | — | — | — | — | (586,796 | ) | (586,796 | ) | ||||||||||||||
Compensation expense and issuance of stock in connection with equity-based awards | 12,651 | 127 | — | — | 1,216,236 | — | 1,216,363 | ||||||||||||||||
Repurchase of common stock | — | — | (74,669 | ) | (7,704,392 | ) | — | — | (7,704,392 | ) | |||||||||||||
Net income | — | — | — | — | — | 2,604,040 | 2,604,040 | ||||||||||||||||
Balance, June 30, 2018 | 844,089 | $ | 8,441 | (228,101 | ) | $ | (21,305,694 | ) | $ | 22,042,155 | $ | 62,953,155 | $ | 63,698,057 | |||||||||
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 | |||||||||
AMCON Distributing Company and Subsidiaries
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June | June | |||||||||||
2019 | 2018 | |||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||
Net income | $ | 3,434,215 | $ | 2,604,040 | ||||||||
Adjustments to reconcile net income from operations to net cash flows from operating activities: | ||||||||||||
Depreciation | 1,827,711 | 1,619,868 | ||||||||||
Amortization | 41,667 | 63,750 | ||||||||||
Gain on sales of property and equipment | (15,376 | ) | (5,300 | ) | ||||||||
Equity-based compensation | 1,035,128 | 957,656 | ||||||||||
Deferred income taxes | 112,439 | (672,431 | ) | |||||||||
Provision for losses on doubtful accounts | 179,000 | 23,000 | ||||||||||
Inventory allowance | 454,357 | (267,389 | ) | |||||||||
Other | 2,967 | 2,967 | ||||||||||
Changes in assets and liabilities: | ||||||||||||
Accounts receivable | (3,209,941 | ) | (3,276,391 | ) | ||||||||
Inventories | 11,468,718 | 22,167,954 | ||||||||||
Prepaid and other current assets | (5,698,021 | ) | (5,843,877 | ) | ||||||||
Other assets | 19,712 | (4,928 | ) | |||||||||
Accounts payable | 2,485,721 | 1,584,358 | ||||||||||
Accrued expenses and accrued wages, salaries and bonuses | (1,460,935 | ) | 125,758 | |||||||||
Income taxes receivable | 157,836 | 11,751 | ||||||||||
Net cash flows from operating activities | 10,835,198 | 19,090,786 | ||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||
Purchase of property and equipment | (3,385,977 | ) | (2,120,358 | ) | ||||||||
Proceeds from sales of property and equipment | 56,200 | 5,300 | ||||||||||
Net cash flows (used in) investing activities | (3,329,777 | ) | (2,115,058 | ) | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||
Borrowings under revolving credit facility | 1,022,309,940 | 1,043,415,401 | ||||||||||
Repayments under revolving credit facility | (1,025,624,006 | ) | (1,051,967,147 | ) | ||||||||
Principal payments on long-term debt | (686,139 | ) | (279,339 | ) | ||||||||
Repurchase of common stock | (3,186,987 | ) | (7,704,392 | ) | ||||||||
Dividends on common stock | (524,866 | ) | (586,796 | ) | ||||||||
Withholdings on the exercise of equity-based awards | — | (101,200 | ) | |||||||||
Net cash flows (used in) financing activities | (7,712,058 | ) | (17,223,473 | ) | ||||||||
Net change in cash | (206,637 | ) | (247,745 | ) | ||||||||
Cash, beginning of period | 520,644 | 523,065 | ||||||||||
Cash, end of period | $ | 314,007 | $ | 275,320 | ||||||||
Supplemental disclosure of cash flow information: | ||||||||||||
Cash paid during the period for interest | $ | 1,140,562 | $ | 764,557 | ||||||||
Cash paid during the period for income taxes | 1,265,725 | 1,036,680 | ||||||||||
Supplemental disclosure of non-cash information: | ||||||||||||
Equipment acquisitions classified in accounts payable | $ | 91,838 | $ | 8,203 | ||||||||
Issuance of common stock in connection with the vesting and exercise of equity-based awards | 1,005,792 | 1,183,091 | ||||||||||
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Contacts:
AMCON Distributing Company
Ph 402-331-3727
