AMCON Distributing Company ("AMCON") DIT, an Omaha, Nebraska based consumer products company is pleased to announce fully diluted earnings per share of $2.45 on net income available to common shareholders of $1.5 million for its second fiscal quarter ended March 31, 2019.
"AMCON's newly enhanced distribution facility in Bismarck, North Dakota began shipping this quarter. Our management team and associates did a tremendous job in completing this project in a challenging weather environment. We have been a long-term service provider in the northern marketplace and this new investment reinforces our commitment to the success of our customers," said Christopher H. Atayan, AMCON's Chairman and Chief Executive Officer. He further noted, "Our organization continues its close collaboration with customers to design leading edge foodservice programs that are competitive with quick-service restaurants. Additionally, we are actively seeking strategic acquisition opportunities that we believe can benefit from AMCON's portfolio of technologies and services."
"We are actively evaluating a number of additional strategic facility initiatives to support the growth needs of our customer base. Our emphasis on first class service and reliability is the foundation of our position as a leader in the convenience distribution industry. As such, we will continue to make investments in people, facilities and equipment necessary for sustained excellence," said Andrew C. Plummer, AMCON's President and Chief Operating Officer. He further noted, "Our Healthy Edge Retail Group management team is implementing a comprehensive merchandising and point of sale system update to our base of retail health food stores. These initiatives are in support of our objective of being a total wellness solution for consumers." Mr. Plummer further added, "We were pleased to close March 31, 2019 with total shareholders' equity of $64.8 million and consolidated debt of $21.4 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
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AMCON Distributing Company and Subsidiaries |
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Condensed Consolidated Balance Sheets |
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March 31, 2019 and September 30, 2018 |
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| March | September | |||||||
| 2019 | 2018 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash | $ | 642,116 | $ | 520,644 | ||||
| Accounts receivable, less allowance for doubtful accounts of $0.9 million at March 2019 and September 2018 | 28,016,243 | 31,428,845 | ||||||
| Inventories, net | 57,650,559 | 78,869,615 | ||||||
| Income taxes receivable | — | 272,112 | ||||||
| Prepaid and other current assets | 7,343,497 | 4,940,775 | ||||||
| Total current assets | 93,652,415 | 116,031,991 | ||||||
| Property and equipment, net | 16,915,409 | 15,768,484 | ||||||
| Goodwill | 4,436,950 | 4,436,950 | ||||||
| Other intangible assets, net | 3,383,686 | 3,414,936 | ||||||
| Other assets | 293,896 | 301,793 | ||||||
| Total assets | $ | 118,682,356 | $ | 139,954,154 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 20,570,694 | $ | 20,826,834 | ||||
| Accrued expenses | 7,106,050 | 8,556,620 | ||||||
| Accrued wages, salaries and bonuses | 2,683,504 | 3,965,733 | ||||||
| Income taxes payable | 1,630 | — | ||||||
| Current maturities of long-term debt | 803,612 | 1,096,306 | ||||||
| Total current liabilities | 31,165,490 | 34,445,493 | ||||||
| Credit facility | 17,224,197 | 35,428,597 | ||||||
| Deferred income tax liability, net | 2,009,719 | 1,782,801 | ||||||
| Long-term debt, less current maturities | 3,394,116 | 3,658,391 | ||||||
| Other long-term liabilities | 40,033 | 38,055 | ||||||
| Shareholders' equity: | ||||||||
| Preferred stock, $.01 par value, 1,000,000 shares authorized | — | — | ||||||
| Common stock, $.01 par value, 3,000,000 shares authorized, 592,768 shares outstanding at March 2019 and 615,777 shares outstanding at September 2018 | 8,561 | 8,441 | ||||||
| Additional paid-in capital | 23,148,372 | 22,069,098 | ||||||
| Retained earnings | 66,203,466 | 63,848,030 | ||||||
| Treasury stock at cost | (24,511,598 | ) | (21,324,752 | ) | ||||
| Total shareholders' equity | 64,848,801 | 64,600,817 | ||||||
| Total liabilities and shareholders' equity | $ | 118,682,356 | $ | 139,954,154 | ||||
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AMCON Distributing Company and Subsidiaries |
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Condensed Consolidated Unaudited Statements of Operations |
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for the three and six months ended March 31, 2019 and 2018 |
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| For the three months ended March | For the six months ended March | |||||||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||||||
| Sales (including excise taxes of $82.9 million and $83.1 million, and $175.9 million and $171.7 million respectively) | $ | 310,715,873 | $ | 295,207,286 | $ | 655,449,793 | $ | 610,720,495 | ||||||||
| Cost of sales | 290,126,453 | 278,141,110 | 614,228,235 | 575,462,557 | ||||||||||||
| Gross profit | 20,589,420 | 17,066,176 | 41,221,558 | 35,257,938 | ||||||||||||
| Selling, general and administrative expenses | 17,391,681 | 15,619,420 | 35,348,896 | 31,973,028 | ||||||||||||
| Depreciation and amortization | 641,228 | 537,903 | 1,249,236 | 1,068,908 | ||||||||||||
| 18,032,909 | 16,157,323 | 36,598,132 | 33,041,936 | |||||||||||||
| Operating income | 2,556,511 | 908,853 | 4,623,426 | 2,216,002 | ||||||||||||
| Other expense (income): | ||||||||||||||||
| Interest expense | 396,576 | 313,364 | 719,526 | 515,555 | ||||||||||||
| Other (income), net | (36,280 | ) | (27,410 | ) | (39,636 | ) | (32,543 | ) | ||||||||
| 360,296 | 285,954 | 679,890 | 483,012 | |||||||||||||
| Income from operations before income taxes | 2,196,215 | 622,899 | 3,943,536 | 1,732,990 | ||||||||||||
| Income tax expense (benefit) | 673,000 | 284,000 | 1,175,000 | (86,000 | ) | |||||||||||
| Net income available to common shareholders | $ | 1,523,215 | $ | 338,899 | $ | 2,768,536 | $ | 1,818,990 | ||||||||
| Basic earnings per share available to common shareholders | $ | 2.49 | $ | 0.49 | $ | 4.50 | $ | 2.64 | ||||||||
| Diluted earnings per share available to common shareholders | $ | 2.45 | $ | 0.49 | $ | 4.44 | $ | 2.61 | ||||||||
| Basic weighted average shares outstanding | 611,824 | 689,480 | 614,874 | 688,570 | ||||||||||||
| Diluted weighted average shares outstanding | 620,769 | 697,406 | 623,848 | 697,563 | ||||||||||||
| Dividends declared and paid per common share | $ | 0.46 | $ | 0.46 | $ | 0.64 | $ | 0.64 | ||||||||
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AMCON Distributing Company and Subsidiaries |
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Condensed Consolidated Unaudited Statements of Shareholders' Equity |
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for the three and six months ended March 31, 2019 and 2018 |
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| Additional | |||||||||||||||||||||||
| Common Stock | Treasury Stock | Paid in | Retained | ||||||||||||||||||||
| Shares | Amount | Shares | Amount | Capital | Earnings | Total | |||||||||||||||||
| THREE MONTHS ENDED MARCH 2018 | |||||||||||||||||||||||
| Balance, January 1, 2018 | 844,089 | $ | 8,441 | (153,603 | ) | $ | (13,616,477 | ) | $ | 22,009,620 | $ | 62,086,133 | $ | 70,487,717 | |||||||||
| Dividends on common stock, $0.18 per share | — | — | — | — | — | (128,990 | ) | (128,990 | ) | ||||||||||||||
| Compensation expense and issuance of stock in connection with equity-based awards | — | — | — | — | 26,942 | — | 26,942 | ||||||||||||||||
| Repurchase of common stock | — | — | (6,482 | ) | (629,353 | ) | — | — | (629,353 | ) | |||||||||||||
| Net income | — | — | — | — | — | 338,899 | 338,899 | ||||||||||||||||
| Balance, March 31, 2018 | 844,089 | $ | 8,441 | (160,085 | ) | $ | (14,245,830 | ) | $ | 22,036,562 | $ | 62,296,042 | $ | 70,095,215 | |||||||||
| THREE MONTHS ENDED MARCH 2019 | |||||||||||||||||||||||
| Balance, January 1, 2019 | 856,039 | $ | 8,561 | (238,744 | ) | $ | (22,242,837 | ) | $ | 23,110,713 | $ | 64,796,415 | $ | 65,672,852 | |||||||||
| Dividends on common stock, $0.18 per share | — | — | — | — | — | (116,164 | ) | (116,164 | ) | ||||||||||||||
| Compensation expense and issuance of stock in connection with equity-based awards | — | — | — | — | 37,659 | — | 37,659 | ||||||||||||||||
| Repurchase of common stock | — | — | (24,527 | ) | (2,268,761 | ) | — | — | (2,268,761 | ) | |||||||||||||
| Net income | — | — | — | — | — | 1,523,215 | 1,523,215 | ||||||||||||||||
| Balance, March 31, 2019 | 856,039 | $ | 8,561 | (263,271 | ) | $ | (24,511,598 | ) | $ | 23,148,372 | $ | 66,203,466 | $ | 64,848,801 | |||||||||
| Additional | |||||||||||||||||||||||
| Common Stock | Treasury Stock | Paid in | Retained | ||||||||||||||||||||
| Shares | Amount | Shares | Amount | Capital | Earnings | Total | |||||||||||||||||
| SIX MONTHS ENDED MARCH 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, $0.64 per share | — | — | — | — | — | (458,859 | ) | (458,859 | ) | ||||||||||||||
| Compensation expense and issuance of stock in connection with equity-based awards | 12,651 | 127 | — | — | 1,210,643 | — | 1,210,770 | ||||||||||||||||
| Repurchase of common stock | — | — | (6,653 | ) | (644,528 | ) | — | — | (644,528 | ) | |||||||||||||
| Net income | — | — | — | — | — | 1,818,990 | 1,818,990 | ||||||||||||||||
| Balance, March 31, 2018 | 844,089 | $ | 8,441 | (160,085 | ) | $ | (14,245,830 | ) | $ | 22,036,562 | $ | 62,296,042 | $ | 70,095,215 | |||||||||
| SIX MONTHS ENDED MARCH 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, $0.64 per share | — | — | — | — | — | (413,100 | ) | (413,100 | ) | ||||||||||||||
| Compensation expense and issuance of stock in connection with equity-based awards | 11,950 | 120 | — | — | 1,079,274 | — | 1,079,394 | ||||||||||||||||
| Repurchase of common stock | — | — | (34,959 | ) | (3,186,846 | ) | — | — | (3,186,846 | ) | |||||||||||||
| Net income | — | — | — | — | — | 2,768,536 | 2,768,536 | ||||||||||||||||
| Balance, March 31, 2019 | 856,039 | $ | 8,561 | (263,271 | ) | $ | (24,511,598 | ) | $ | 23,148,372 | $ | 66,203,466 | $ | 64,848,801 | |||||||||
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AMCON Distributing Company and Subsidiaries |
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Condensed Consolidated Unaudited Statements of Cash Flows |
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for the six months ended March 31, 2019 and 2018 |
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| March | March | |||||||
| 2019 | 2018 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net income | $ | 2,768,536 | $ | 1,818,990 | ||||
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Adjustments to reconcile net income from operations to net cash flows from operating activities: |
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| Depreciation | 1,217,986 | 1,020,783 | ||||||
| Amortization | 31,250 | 48,125 | ||||||
| Gain on sale of property and equipment | (17,832 | ) | (300 | ) | ||||
| Equity-based compensation | 622,390 | 642,785 | ||||||
| Deferred income taxes | 226,918 | (423,322 | ) | |||||
| Provision (recovery) for losses on doubtful accounts | 59,000 | (77,000 | ) | |||||
| Inventory allowance | 240,699 | (231,625 | ) | |||||
| Other | 1,978 | 1,978 | ||||||
| Changes in assets and liabilities: | ||||||||
| Accounts receivable | 3,353,602 | 1,521,705 | ||||||
| Inventories | 20,978,357 | (2,951,171 | ) | |||||
| Prepaid and other current assets | (2,402,722 | ) | 1,216,336 | |||||
| Other assets | 7,897 | (19,903 | ) | |||||
| Accounts payable | (467,687 | ) | 126,012 | |||||
| Accrued expenses and accrued wages, salaries and bonuses | (2,275,795 | ) | (1,059,839 | ) | ||||
| Income taxes payable / receivable | 273,742 | (368,469 | ) | |||||
| Net cash flows from operating activities | 24,618,319 | 1,265,085 | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Purchase of property and equipment | (2,159,232 | ) | (1,366,767 | ) | ||||
| Proceeds from sales of property and equipment | 23,700 | 300 | ||||||
| Net cash flows (used in) investing activities | (2,135,532 | ) | (1,366,467 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Borrowings under revolving credit facility | 642,850,736 | 623,945,799 | ||||||
| Repayments under revolving credit facility | (661,055,136 | ) | (622,433,675 | ) | ||||
| Principal payments on long-term debt | (556,969 | ) | (185,753 | ) | ||||
| Repurchase of common stock | (3,186,846 | ) | (644,528 | ) | ||||
| Dividends on common stock | (413,100 | ) | (458,859 | ) | ||||
| Withholdings on the exercise of equity-based awards | — | (79,850 | ) | |||||
| Net cash flows from (used in) financing activities | (22,361,315 | ) | 143,134 | |||||
| Net change in cash | 121,472 | 41,752 | ||||||
| Cash, beginning of period | 520,644 | 523,065 | ||||||
| Cash, end of period | $ | 642,116 | $ | 564,817 | ||||
| Supplemental disclosure of cash flow information: | ||||||||
| Cash paid during the period for interest | $ | 774,784 | $ | 489,840 | ||||
| Cash paid during the period for income taxes | 674,340 | 705,790 | ||||||
| Supplemental disclosure of non-cash information: | ||||||||
| Equipment acquisitions classified in accounts payable | $ | 212,800 | $ | 63,962 | ||||
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Issuance of common stock in connection with the vesting and exercise of equity-based awards |
1,005,792 | 1,183,091 | ||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20190418005734/en/
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