AMCON Distributing Company Reports Results for the Fiscal Year Ended September 30, 2021

Rhea-AI Summary

AMCON Distributing Company (DIT) reported fully diluted earnings per share of $27.36 and net income of $15.5 million for the fiscal year ending September 30, 2021. For Q4, earnings were $11.00 per diluted share with net income of $6.3 million. Total revenues were $1.6 billion for the fiscal year, with operating income at $24.5 million. The retail health food segment generated $47.3 million in revenues. Shareholders' equity stood at $77.6 million, with an adjusted book value of $139.27.

Positive

• Earnings per share of $27.36 for FY 2021.
• Q4 earnings of $11.00 per share indicated strong quarterly performance.
• Wholesale distribution revenues reached $1.6 billion.
• Retail health food segment revenues were $47.3 million.

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 $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.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20211108006076/en/

Christopher H. Atayan

AMCON Distributing Company

Ph 402-331-3727

Source: AMCON Distributing Company

FAQ

What were AMCON's earnings per share for FY 2021?

AMCON reported fully diluted earnings per share of $27.36 for the fiscal year 2021.

What is the revenue of AMCON for the fourth quarter of FY 2021?

For the fourth quarter of FY 2021, AMCON's revenue was $438.7 million.

What is AMCON's net income for the fiscal year ended September 30, 2021?

AMCON's net income for the fiscal year ended September 30, 2021, was $15.5 million.

How much equity do AMCON shareholders have?

As of September 30, 2021, AMCON's shareholders' equity was $77.6 million.

What were AMCON's revenues from its retail health food segment in FY 2021?

AMCON's retail health food segment reported revenues of $47.3 million for fiscal year 2021.