AMCON Distributing Company Reports Results for the Fiscal Year Ended September 30, 2022

Rhea-AI Summary

AMCON Distributing Company (DIT) reported a fully diluted EPS of $28.59 and net income of $16.7 million for fiscal year ending September 30, 2022. The wholesale distribution segment achieved revenues of $2.0 billion with operating income at $35.6 million, while the retail health food segment generated $46.2 million in revenue. AMCON is investing in foodservice and technology and developing a new 173,500 square foot facility in Springfield, Missouri. Shareholders' equity stood at $92.8 million with a strong inventory turnover rate of 19 times.

Positive

• Fully diluted EPS of $28.59 indicating strong profitability.
• Wholesale distribution segment revenue of $2.0 billion with operating income of $35.6 million.
• Strategic investments in foodservice and technology.
• Development of a new 173,500 square foot facility in Springfield, Missouri.
• Shareholders' equity of $92.8 million and inventory turned 19 times.

Negative

• None.

OMAHA, Neb.--(BUSINESS WIRE)-- AMCON Distributing Company (“AMCON”) (NYSE American: DIT), an Omaha, Nebraska based consumer products company, is pleased to announce fully diluted earnings per share of $28.59 on net income available to common shareholders of $16.7 million for the fiscal year ended September 30, 2022.

“We are pleased with our fiscal 2022 results. Our entire organization did an outstanding job this year, securing the products and staffing necessary for success in the convenience distribution industry. AMCON has a long-standing core operating philosophy of providing a superior level of customer service. The customer-centric approach we embrace has guided us through these challenging 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 actively seek strategic acquisition opportunities for operators who want to align with our customer-centric management philosophy and further the legacy of their enterprises.”

The wholesale distribution segment reported revenues of $2.0 billion and operating income of $35.6 million for fiscal 2022 and the retail health food segment reported revenues of $46.2 million and operating income of $0.5 million for fiscal 2022.

“We are investing heavily in our foodservice and technology platforms and associated staffing for these strategic focus areas. In addition, AMCON is developing a new 173,500 square foot facility in Springfield, Missouri which will support our customers’ growth initiatives. We are also looking to expand our geographic reach, to serve our customers as they 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, 2022, our shareholders’ equity was $92.8 million. During fiscal 2022, we turned our inventory 19 times and continue to prioritize high levels of daily liquidity.” Mr. Schmaderer also added, “We are delighted 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. 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. We continue to rationalize our base of stores as well as developing new store opportunities.

AMCON is a leading Convenience Distributor of consumer products, including beverages, candy, tobacco, groceries, foodservice, frozen and refrigerated foods, automotive supplies and health and beauty care products with distribution centers in Illinois, Missouri, Nebraska, North Dakota, South Dakota, Tennessee and West Virginia. AMCON, through its Healthy Edge Retail Group, operates nineteen (19) 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

AMCON Distributing Company and Subsidiaries
CONSOLIDATED BALANCE SHEETS
		September				September
		2022				2021
ASSETS
Current assets:
Cash		$	431,576			$	519,591
Accounts receivable, less allowance for doubtful accounts of $2.5 million at September 2022 and $0.9 million September 2021			62,367,888				35,844,163
Inventories, net			134,654,637				95,212,085
Income taxes receivable			819,595				—
Prepaid expenses and other current assets			12,702,084				4,999,125
Total current assets			210,975,780				136,574,964
Property and equipment, net			48,085,520				16,012,524
Operating lease right-of-use assets, net			19,941,009				17,846,529
Note receivable, net of current portion			—				3,325,000
Goodwill			5,277,950				4,436,950
Other intangible assets, net			2,093,113				500,000
Equity method investment			—				9,380,343
Other assets			2,751,155				334,819
Total assets		$	289,124,527			$	188,411,129
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	39,962,363			$	24,235,042
Accrued expenses			14,446,210				11,468,955
Accrued wages, salaries and bonuses			7,811,207				4,489,852
Income taxes payable			—				867,160
Current operating lease liabilities			6,454,473				5,513,390
Current maturities of long-term debt			1,595,309				561,202
Current mandatorily redeemable non-controlling interest			1,712,095				—
Total current liabilities			71,981,657				47,135,601
Credit facilities			91,262,438				43,650,865
Deferred income tax liability, net			2,328,588				1,531,228
Long-term operating lease liabilities			13,787,721				12,669,157
Long-term debt, less current maturities			7,384,260				5,054,265
Mandatorily redeemable non-controlling interest, less current portion			9,446,460				—
Other long-term liabilities			103,968				757,387
Shareholders’ equity:
Preferred stock, $.01 par value, 1,000,000 shares authorized			—				—
Common stock, $.01 par value, 3,000,000 shares authorized, 584,789 shares outstanding at September 2022 and 551,369 shares outstanding at September 2021			9,168				8,834
Additional paid-in capital			26,903,201				24,918,781
Retained earnings			96,784,353				83,552,298
Treasury stock at cost			(30,867,287	)			(30,867,287	)
Total shareholders’ equity			92,829,435				77,612,626
Total liabilities and shareholders’ equity		$	289,124,527			$	188,411,129

AMCON Distributing Company and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
		Fiscal Years Ended September
		2022				2021
Sales (including excise taxes of $467.1 million and $403.9 million, respectively)		$	2,010,798,385			$	1,672,378,581
Cost of sales			1,883,078,819				1,571,829,805
Gross profit			127,719,566				100,548,776
Selling, general and administrative expenses			101,474,359				79,631,140
Depreciation and amortization			3,643,840				3,093,017
			105,118,199				82,724,157
Operating income			22,601,367				17,824,619
Other expense (income):
Interest expense			2,249,552				1,339,560
Change in fair value of mandatorily redeemable non-controlling interest			1,476,986				—
Other (income), net			(2,600,675	)			(203,228	)
			1,125,863				1,136,332
Income from operations before income taxes			21,475,504				16,688,287
Income tax expense			6,473,380				4,501,000
Equity method investment earnings, net of tax			1,670,133				3,357,978
Net income available to common shareholders		$	16,672,257			$	15,545,265
Basic earnings per share available to common shareholders		$	29.37			$	28.24
Diluted earnings per share available to common shareholders		$	28.59			$	27.36
Basic weighted average shares outstanding			567,697				550,551
Diluted weighted average shares outstanding			583,062				568,103
Dividends paid per common share		$	5.72			$	5.72

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, 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 available to common shareholders		—			—		—				—				—			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
Dividends on common stock, $5.72 per share		—			—		—				—				—			(3,440,202	)			(3,440,202	)
Compensation expense and issuance of stock in connection with equity-based awards		33,420			334		—				—				1,984,420			—				1,984,754
Net income available to common shareholders		—			—		—				—				—			16,672,257				16,672,257
Balance, September 30, 2022		917,009		$	9,168		(332,220	)		$	(30,867,287	)		$	26,903,201		$	96,784,353			$	92,829,435

AMCON Distributing Company and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
		September				September
		2022				2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income available to common shareholders		$	16,672,257			$	15,545,265
Adjustments to reconcile net income available to common shareholders to net cash flows from (used in) operating activities:
Depreciation			3,572,953				3,093,017
Amortization			70,887				—
Equity method investment earnings, net of tax			(1,670,133	)			(3,357,978	)
Gain on re-valuation of equity method investment to fair value			(2,387,411	)			—
Gain on sales of property and equipment			(140,139	)			(9,864	)
Equity-based compensation			3,103,320				2,415,156
Deferred income taxes			797,360				(275,347	)
Provision for losses on doubtful accounts			(32,420	)			50,000
Inventory allowance			212,637				37,708
Change in fair value of mandatorily redeemable non-controlling interest			1,476,986				—
Changes in assets and liabilities net of effects of business acquisition:
Accounts receivable			3,032,876				(1,615,734	)
Inventories			3,240,946				3,721,980
Prepaid and other current assets			(5,344,754	)			(2,732,480	)
Equity method investment distributions			1,095,467				1,392,730
Other assets			(730,391	)			48,967
Accounts payable			332,400				1,998,494
Accrued expenses and accrued wages, salaries and bonuses			2,482,409				1,164,828
Other long-term liabilities			(653,419	)			(169,854	)
Income taxes payable and receivable			(2,241,755	)			(371,248	)
Net cash flows from (used in) operating activities			22,890,076				20,935,640
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment			(14,691,799	)			(1,525,882	)
Proceeds from sales of property and equipment			152,000				55,728
Principal payment received on note receivable			175,000				—
Cash acquired in business acquisition			7,958				—
Net cash flows from (used in) investing activities			(14,356,841	)			(1,470,154	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under revolving credit facilities			2,042,679,688				1,663,751,276
Repayments under revolving credit facilities			(2,041,106,459	)			(1,682,072,093	)
Proceeds from borrowings on long-term debt			—				3,000,000
Principal payments on long-term debt			(4,909,548	)			(510,177	)
Proceeds from exercise of stock options			173,590				—
Repurchase of common stock			—				(5,738	)
Dividends on common stock			(3,440,202	)			(3,355,301	)
Settlement and withholdings of equity-based awards			(1,280,749	)			(415,057	)
Distributions to non-controlling interest			(737,570	)			—
Net cash flows from (used in) financing activities			(8,621,250	)			(19,607,090	)
Net change in cash			(88,015	)			(141,604	)
Cash, beginning of period			519,591				661,195
Cash, end of period		$	431,576			$	519,591
Supplemental disclosure of cash flow information:
Cash paid during the period for interest		$	2,210,828			$	1,353,985
Cash paid during the period for income taxes			7,915,225				5,138,454
Supplemental disclosure of non-cash information:
Equipment acquisitions classified in accounts payable		$	91,656			$	128,249
Effect of business acquisition			23,308,624				—
Issuance of common stock in connection with the vesting and exercise of equity-based awards			2,280,783				949,812

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20221123005461/en/

For Further Information Contact:

Charles J. Schmaderer

AMCON Distributing Company

Ph 402-331-3727

Source: AMCON Distributing Company

FAQ

What were AMCON's earnings for fiscal year 2022?

AMCON reported a fully diluted EPS of $28.59 and net income of $16.7 million for fiscal year 2022.

How much revenue did AMCON generate from wholesale distribution in 2022?

AMCON's wholesale distribution segment generated revenues of $2.0 billion for fiscal year 2022.

What is the significance of AMCON's new facility in Springfield, Missouri?

The new 173,500 square foot facility in Springfield, Missouri, is intended to support customer growth initiatives.

What was AMCON's shareholders' equity at the end of fiscal 2022?

At the end of fiscal 2022, AMCON's shareholders' equity was $92.8 million.

What investment strategy is AMCON pursuing?

AMCON is actively seeking strategic acquisition opportunities and investing in foodservice and technology.