AMCON Distributing Company Reports Results for the Quarter Ended December 31, 2022

Rhea-AI Summary

AMCON Distributing Company (NYSE American: DIT) reported a fully diluted earnings per share of $4.46 and a net income of $2.6 million for Q1 fiscal 2023, ending December 31, 2022. The wholesale distribution segment generated $555.7 million in revenues with an operating income of $8.2 million, while the retail health food segment posted revenues of $10.3 million but faced an operating loss of $0.3 million. The company emphasizes customer service and is pursuing acquisition opportunities in the convenience distribution sector. As of the end of the quarter, AMCON maintained $94.7 million in consolidated shareholders’ equity.

Positive

• Q1 fiscal 2023 earnings per share of $4.46.
• Wholesale distribution revenues of $555.7 million.
• Operating income of $8.2 million in the wholesale segment.
• Strategic investment in foodservice and technology platforms.
• High levels of liquidity with $94.7 million in consolidated shareholders' equity.

Negative

• Operating loss of $0.3 million in the retail health food segment.

OMAHA, Neb.--(BUSINESS WIRE)-- AMCON Distributing Company (“AMCON” or “Company”) (NYSE American: DIT), an Omaha, Nebraska based consumer products company, is pleased to announce fully diluted earnings per share of $4.46 on net income available to common shareholders of $2.6 million for its first fiscal quarter ended December 31, 2022.

“AMCON has a strategic focus on Customer Service and this long-held approach enables our leadership in the Convenience Distribution industry,” said Christopher H. Atayan, AMCON’s Chairman and Chief Executive Officer. Mr. Atayan further noted, “AMCON continues to seek out acquisition opportunities for convenience and foodservice distributors who want to align with the Company’s growing platform and customer centric management philosophy.”

The wholesale distribution segment reported revenues of $555.7 million and operating income of $8.2 million for the first quarter of fiscal 2023. The retail health food segment reported revenues of $10.3 million and an operating loss of $0.3 million for the first quarter of fiscal 2023.

“We are proud of the extra efforts our team made to ensure timely delivery to our customers during the severe weather we encountered during the quarter,” said Andrew C. Plummer, AMCON’s President and Chief Operating Officer. Mr. Plummer further noted, “We are investing heavily in our foodservice and technology platforms and associated staffing for these strategic focus areas. Our customer base is growing, and we continue to search for facilities in, and adjacent to, the geographic markets we serve.”

“We are actively managing our working capital position to take advantage of strategic opportunities in the marketplace,” said Charles J. Schmaderer, AMCON’s Chief Financial Officer. Mr. Schmaderer further noted, “As a core operating principle, we maintain high levels of liquidity and ended the quarter with $94.7 million of consolidated shareholders’ equity.”

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 servicing approximately 5,400 retail stores through distribution centers in Illinois, Missouri, Nebraska, North Dakota, South Dakota, Tennessee and West Virginia. AMCON, through its Healthy Edge Retail Group, also 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 Condensed Consolidated Balance Sheets December 31, 2022 and September 30, 2022
		December				September
		2022				2022
		(Unaudited)
ASSETS
Current assets:
Cash		$	452,142			$	431,576
Accounts receivable, less allowance for doubtful accounts of $2.0 million at December 2022 and $2.5 million September 2022			54,482,938				62,367,888
Inventories, net			185,213,063				134,654,637
Income taxes receivable			660,617				819,595
Prepaid expenses and other current assets			12,656,974				12,702,084
Total current assets			253,465,734				210,975,780
Property and equipment, net			48,449,099				48,085,520
Operating lease right-of-use assets, net			19,078,842				19,941,009
Goodwill			5,277,950				5,277,950
Other intangible assets, net			2,050,580				2,093,113
Other assets			2,551,744				2,751,155
Total assets		$	330,873,949			$	289,124,527
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	33,296,105			$	39,962,363
Accrued expenses			14,658,185				14,446,210
Accrued wages, salaries and bonuses			3,794,970				7,811,207
Current operating lease liabilities			6,426,103				6,454,473
Current maturities of long-term debt			1,554,653				1,595,309
Current mandatorily redeemable non-controlling interest			1,755,611				1,712,095
Total current liabilities			61,485,627				71,981,657
Credit facilities			141,488,518				91,262,438
Deferred income tax liability, net			3,474,410				2,328,588
Long-term operating lease liabilities			12,989,955				13,787,721
Long-term debt, less current maturities			7,222,520				7,384,260
Mandatorily redeemable non-controlling interest, less current portion			9,348,028				9,446,460
Other long-term liabilities			152,889				103,968
Shareholders’ equity:
Preferred stock, $.01 par value, 1,000,000 shares authorized			—				—
Common stock, $.01 par value, 3,000,000 shares authorized, 611,052 shares outstanding at December 2022 and 584,789 shares outstanding at September 2022			9,431				9,168
Additional paid-in capital			29,357,154				26,903,201
Retained earnings			96,212,704				96,784,353
Treasury stock at cost			(30,867,287	)			(30,867,287	)
Total shareholders’ equity			94,712,002				92,829,435
Total liabilities and shareholders’ equity		$	330,873,949			$	289,124,527

AMCON Distributing Company and Subsidiaries Condensed Consolidated Unaudited Statements of Operations for the three months ended December 31, 2022 and 2021
		For the three months ended December
		2022				2021
Sales (including excise taxes of $130.3 million and $97.1 million, respectively)		$	565,989,507			$	422,571,278
Cost of sales			531,019,924				395,638,615
Gross profit			34,969,583				26,932,663
Selling, general and administrative expenses			28,379,186				22,390,740
Depreciation and amortization			1,070,886				784,245
			29,450,072				23,174,985
Operating income			5,519,511				3,757,678
Other expense (income):
Interest expense			1,694,158				322,097
Change in fair value of mandatorily redeemable non-controlling interest			(54,916	)			—
Other (income), net			(53,532	)			(40,109	)
			1,585,710				281,988
Income from operations before income taxes			3,933,801				3,475,690
Income tax expense			1,304,800				1,245,000
Equity method investment earnings, net of tax			—				770,365
Net income available to common shareholders		$	2,629,001			$	3,001,055
Basic earnings per share available to common shareholders		$	4.52			$	5.33
Diluted earnings per share available to common shareholders		$	4.46			$	5.18
Basic weighted average shares outstanding			581,612				563,546
Diluted weighted average shares outstanding			589,881				578,964
Dividends paid per common share		$	0.18			$	5.18

AMCON Distributing Company and Subsidiaries Condensed Consolidated Unaudited Statements of Shareholders’ Equity for the three months ended December 31, 2022 and 2021
														Additional
		Common Stock					Treasury Stock							Paid-in			Retained
		Shares		Amount			Shares			Amount				Capital			Earnings				Total
THREE MONTHS ENDED DECEMBER 2021
Balance, October 1, 2021		883,589		$	8,834		(332,220	)		$	(30,867,287	)		$	24,918,781		$	83,552,298			$	77,612,626
Dividends on common stock, $5.18 per share		—			—		—				—				—			(3,114,775	)			(3,114,775	)
Compensation expense and settlement of equity-based awards		31,420			314		—				—				2,080,954			—				2,081,268
Net income available to common shareholders		—			—		—				—				—			3,001,055				3,001,055
Balance, December 31, 2021		915,009		$	9,148		(332,220	)		$	(30,867,287	)		$	26,999,735		$	83,438,578			$	79,580,174
THREE MONTHS ENDED DECEMBER 2022
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, $5.18 per share		—			—		—				—				—			(3,200,650	)			(3,200,650	)
Compensation expense and settlement of equity-based awards		26,263			263		—				—				2,453,953			—				2,454,216
Net income available to common shareholders		—			—		—				—				—			2,629,001				2,629,001
Balance, December 31, 2022		943,272		$	9,431		(332,220	)		$	(30,867,287	)		$	29,357,154		$	96,212,704			$	94,712,002

AMCON Distributing Company and Subsidiaries Condensed Consolidated Unaudited Statements of Cash Flows for the three months ended December 31, 2022 and 2021
		December				December
		2022				2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income available to common shareholders		$	2,629,001			$	3,001,055
Adjustments to reconcile net income available to common shareholders to net cash flows from (used in) operating activities:
Depreciation			1,028,353				784,245
Amortization			42,533				—
Equity method investment earnings, net of tax			—				(770,365	)
(Gain) loss on sales of property and equipment			(36,000	)			(31,000	)
Equity-based compensation			390,570				710,056
Deferred income taxes			1,145,822				1,173,648
Provision for losses on doubtful accounts			(496,332	)			(102,000	)
Inventory allowance			141,087				99,304
Change in fair value of mandatorily redeemable non-controlling interest			(54,916	)			—
Changes in assets and liabilities:
Accounts receivable			8,381,282				5,084,916
Inventories			(50,699,513	)			(2,629,537	)
Prepaid and other current assets			45,110				(6,573	)
Other assets			199,411				22,184
Accounts payable			(6,602,785	)			(5,750,609	)
Accrued expenses and accrued wages, salaries and bonuses			(4,794,015	)			(1,519,848	)
Other long-term liabilities			48,921				(743,776	)
Income taxes payable and receivable			158,978				71,352
Net cash flows from (used in) operating activities			(48,472,493	)			(606,948	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment			(1,455,405	)			(333,084	)
Proceeds from sales of property and equipment			36,000				31,000
Principal payment received on note receivable			—				175,000
Net cash flows from (used in) investing activities			(1,419,405	)			(127,084	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under revolving credit facilities			639,488,133				439,039,482
Repayments under revolving credit facilities			(589,262,053	)			(434,242,609	)
Principal payments on long-term debt			(202,396	)			(138,284	)
Dividends on common stock			(111,220	)			(3,114,775	)
Settlement and withholdings of equity-based awards			—				(488,412	)
Net cash flows from (used in) financing activities			49,912,464				1,055,402
Net change in cash			20,566				321,370
Cash, beginning of period			431,576				519,591
Cash, end of period		$	452,142			$	840,961
Supplemental disclosure of cash flow information:
Cash paid during the period for interest		$	1,458,843			$	333,941
Supplemental disclosure of non-cash information:
Equipment acquisitions classified in accounts payable		$	28,183			$	16,591
Dividends declared, not paid			3,089,430				—
Issuance of common stock in connection with the vesting and exercise of equity-based awards			2,044,805				2,280,783

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230118005580/en/

For Further Information Contact:

Christopher H. Atayan

AMCON Distributing Company

Ph 402-331-3727

Source: AMCON Distributing Company

FAQ

What were the earnings per share for AMCON Distributing Company in Q1 fiscal 2023?

AMCON reported fully diluted earnings per share of $4.46 for Q1 fiscal 2023.

What was the net income for AMCON in its first fiscal quarter?

AMCON's net income for the first fiscal quarter was $2.6 million.

How much revenue did AMCON's wholesale distribution segment generate in Q1 2023?

The wholesale distribution segment generated $555.7 million in revenues for Q1 2023.

Did AMCON experience any operating losses in Q1 2023?

Yes, AMCON's retail health food segment reported an operating loss of $0.3 million in Q1 2023.

What is AMCON's strategy regarding acquisitions?

AMCON is actively seeking acquisition opportunities for convenience and foodservice distributors.