AMCON Distributing Company Reports Results for the Fiscal Year Ended September 30, 2024

AMCON Distributing Company (“AMCON” or “the Company”) (NYSE American: DIT), an Omaha, Nebraska based Convenience and Foodservice Distributor, is pleased to announce fully diluted earnings per share of $7.15 on net income available to common shareholders of $4.3 million for the fiscal year ended September 30, 2024.

“We have seen our strategic plan come to full bloom in fiscal 2024. AMCON has grown its footprint geographically, expanded within our existing footprint, and enhanced our foodservice capability. We are now the third largest Convenience Distributor in the United States measured by territory covered. Our new Springfield, Missouri facility is fully operational and provides the infrastructure necessary to advance our foodservice initiatives. AMCON’s long-standing core operating philosophy is providing a superior level of customer service. Our customer-centric approach has guided us through these challenging times and ensured that AMCON’s customers 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 focused approach philosophy and further the legacy of their enterprises.”

The wholesale distribution segment reported revenues of $2.7 billion and operating income of $31.3 million for fiscal 2024 and the retail health food segment reported revenues of $42.5 million and operating income of $0.1 million for fiscal 2024.

“We continue to drive the growth of our foodservice business through our Henry’s Foods (“Henry’s”) subsidiary. Henry’s offers a breadth and depth of proprietary foodservice programs and associated store level merchandising that is unparalleled in the convenience distribution industry. Through Henry’s, we now have the capability to offer turn-key solutions that will enable our customer base to compete head-on with the Quick Service Restaurant industry. We are investing heavily in our foodservice and technology platforms and associated staffing for these strategic focus areas as we deploy these capabilities across our entire organization,” said Andrew C. Plummer, AMCON’s President and Chief Operating Officer. Mr. Plummer continued, “In particular, we now have integrated state of the art advertising, design, print and electronic display programs that we believe provide our customers a competitive edge.”

“We continue our relentless daily focus on managing the Company’s balance sheet and maximizing our liquidity position. At September 30, 2024, our shareholders’ equity was $111.7 million,” said Charles J. Schmaderer, AMCON’s Chief Financial Officer. Mr. Schmaderer also added, “We are investing capital to develop our recently acquired 250,000 square foot distribution facility in Colorado City, Colorado, which will support our customers’ growth initiatives in the Intermountain Region.”

AMCON, and its subsidiaries Team Sledd, LLC and Henry’s Foods, Inc., is a leading Convenience and Foodservice Distributor of consumer products, including beverages, candy, tobacco, groceries, foodservice, frozen and refrigerated foods, automotive supplies and health and beauty care products with thirteen (13) distribution centers in Colorado, Illinois, Indiana, Minnesota, Missouri, Nebraska, North Dakota, South Dakota, Tennessee and West Virginia. Through its Healthy Edge Retail Group, AMCON operates fifteen (15) 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

 

 

 

2024

 

 

 

2023

 

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash

 

$

672,788

 

 

$

790,931

 

Accounts receivable, less allowance for credit losses of $2.3 million at September 2024 and $2.4 million at September 2023

 

 

70,653,907

 

 

 

70,878,420

 

Inventories, net

 

 

144,254,843

 

 

 

158,582,816

 

Income taxes receivable

 

 

718,645

 

 

 

1,854,484

 

Prepaid expenses and other current assets

 

 

12,765,088

 

 

 

13,564,056

 

Total current assets

 

 

229,065,271

 

 

 

245,670,707

 

 

 

 

 

 

Property and equipment, net

 

 

106,049,061

 

 

 

80,607,451

 

Operating lease right-of-use assets, net

 

 

25,514,731

 

 

 

23,173,287

 

Goodwill

 

 

5,778,325

 

 

 

5,778,325

 

Other intangible assets, net

 

 

4,747,234

 

 

 

5,284,935

 

Other assets

 

 

2,952,688

 

 

 

2,914,495

 

Total assets

 

$

374,107,310

 

 

$

363,429,200

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

54,498,225

 

 

$

43,099,326

 

Accrued expenses

 

 

15,802,727

 

 

 

14,922,279

 

Accrued wages, salaries and bonuses

 

 

8,989,355

 

 

 

8,886,529

 

Current operating lease liabilities

 

 

7,036,751

 

 

 

6,063,048

 

Current maturities of long-term debt

 

 

5,202,443

 

 

 

1,955,065

 

Current mandatorily redeemable non-controlling interest

 

 

1,703,604

 

 

 

1,703,604

 

Total current liabilities

 

 

93,233,105

 

 

 

76,629,851

 

 

 

 

 

 

Credit facilities

 

 

121,272,004

 

 

 

140,437,989

 

Deferred income tax liability, net

 

 

4,374,316

 

 

 

4,917,960

 

Long-term operating lease liabilities

 

 

18,770,001

 

 

 

17,408,758

 

Long-term debt, less current maturities

 

 

16,562,908

 

 

 

11,675,439

 

Mandatorily redeemable non-controlling interest, less current portion

 

 

6,507,896

 

 

 

7,787,227

 

Other long-term liabilities

 

 

1,657,295

 

 

 

402,882

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

Preferred stock, $.01 par value, 1,000,000 shares authorized

 

 

—

 

 

 

—

 

Common stock, $.01 par value, 3,000,000 shares authorized, 630,362 shares outstanding at September 2024 and 608,689 shares outstanding at September 2023

 

 

9,648

 

 

 

9,431

 

Additional paid-in capital

 

 

34,439,735

 

 

 

30,585,388

 

Retained earnings

 

 

108,552,565

 

 

 

104,846,438

 

Treasury stock at cost

 

 

(31,272,163

)

 

 

(31,272,163

)

Total shareholders’ equity

 

 

111,729,785

 

 

 

104,169,094

Total liabilities and shareholders’ equity

 

$

374,107,310

 

 

$

363,429,200

 

AMCON Distributing Company and Subsidiaries

CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

 

Fiscal Years Ended September

 

 

 

2024

 

 

 

2023

 

Sales (including excise taxes of $569.5 million and $564.6 million, respectively)

 

$

2,710,981,108

 

 

$

2,539,994,999

 

Cost of sales

 

 

2,528,626,652

 

 

 

2,369,150,102

 

Gross profit

 

 

182,354,456

 

 

 

170,844,897

 

Selling, general and administrative expenses

 

 

154,878,763

 

 

 

137,301,668

 

Depreciation and amortization

 

 

9,495,179

 

 

 

7,576,646

 

 

 

 

164,373,942

 

 

 

144,878,314

 

Operating income

 

 

17,980,514

 

 

 

25,966,583

 

 

 

 

 

 

Other expense (income):

 

 

 

 

Interest expense

 

 

10,413,228

 

 

 

8,550,431

 

Change in fair value of mandatorily redeemable non-controlling interest

 

 

1,040,968

 

 

 

1,307,599

 

Other (income), net

 

 

(936,171

)

 

 

(1,193,840

)

 

 

 

10,518,025

 

 

 

8,664,190

 

Income from operations before income taxes

 

 

7,462,489

 

 

 

17,302,393

 

Income tax expense

 

 

3,126,000

 

 

 

5,706,000

 

Net income available to common shareholders

 

$

4,336,489

 

 

$

11,596,393

 

 

 

 

 

 

Basic earnings per share available to common shareholders

 

$

7.24

 

 

$

19.85

 

Diluted earnings per share available to common shareholders

 

$

7.15

 

 

$

19.46

 

 

 

 

 

 

Basic weighted average shares outstanding

 

 

599,020

 

 

 

584,148

 

Diluted weighted average shares outstanding

 

 

606,782

 

 

 

595,850

 

 

 

 

 

 

Dividends paid per common share

 

$

1.00

 

 

$

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, 2022

 

917,009

 

$

9,168

 

(332,220

)

 

$

(30,867,287

)

 

$

26,903,201

 

$

96,784,353

 

 

$

92,829,435

 

Dividends on common stock, $5.72 per share

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(3,534,308

)

 

 

(3,534,308

)

Compensation expense and issuance of stock in connection with equity-based awards

 

26,263

 

 

 

263

 

 

—

 

 

 

—

 

 

 

3,682,187

 

 

 

—

 

 

 

3,682,450

 

Repurchase of common stock

 

—

 

 

 

—

 

 

(2,363

)

 

 

(404,876

)

 

 

—

 

 

 

—

 

 

 

(404,876

)

Net income available to common shareholders

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

 

—

 

 

 

11,596,393

 

 

 

11,596,393

 

Balance, September 30, 2023

 

943,272

 

 

$

9,431

 

 

(334,583

)

 

$

(31,272,163

)

 

$

30,585,388

 

 

$

104,846,438

 

 

$

104,169,094

 

Dividends on common stock, $1.00 per share

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(630,362

)

 

 

(630,362

)

Compensation expense and issuance of stock in connection with equity-based awards

 

21,673

 

 

 

217

 

 

—

 

 

 

—

 

 

 

3,854,347

 

 

 

—

 

 

 

3,854,564

 

Net income available to common shareholders

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4,336,489

 

 

 

4,336,489

 

Balance, September 30, 2024

 

964,945

 

 

$

9,648

 

 

(334,583

)

 

$

(31,272,163

)

 

$

34,439,735

 

 

$

108,552,565

 

 

$

111,729,785

 

 

AMCON Distributing Company and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

 

September

 

September

 

 

 

2024

 

 

 

2023

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

Net income available to common shareholders

 

$

4,336,489

 

 

$

11,596,393

 

Adjustments to reconcile net income available to common shareholders to net cash flows from (used in) operating activities:

 

 

 

 

Depreciation

 

 

8,957,478

 

 

 

7,161,468

 

Amortization

 

 

537,701

 

 

 

415,178

 

(Gain) loss on sales of property and equipment

 

 

(177,467

)

 

 

(133,659

)

Equity-based compensation

 

 

2,489,781

 

 

 

2,717,370

 

Deferred income taxes

 

 

(543,644

)

 

 

2,589,372

 

Provision for credit losses

 

 

(64,705

)

 

 

(133,924

)

Inventory allowance

 

 

62,349

 

 

 

(138,820

)

Change in fair value of contingent consideration

 

 

(124,992

)

 

 

—

 

Change in fair value of mandatorily redeemable non-controlling interest

 

 

1,040,968

 

 

 

1,307,599

 

Changes in assets and liabilities, net of effects of business combinations:

 

 

 

 

Accounts receivable

 

 

5,900,380

 

 

 

(138,956

)

Inventories

 

 

29,003,285

 

 

 

(7,728,394

)

Prepaid and other current assets

 

 

2,227,044

 

 

 

(679,229

)

Other assets

 

 

(38,193

)

 

 

(163,340

)

Accounts payable

 

 

11,397,485

 

 

 

2,213,085

 

Accrued expenses and accrued wages, salaries and bonuses

 

 

1,221,322

 

 

 

1,574,050

 

Other long-term liabilities

 

 

511,231

 

 

 

298,914

 

Income taxes payable and receivable

 

 

1,135,839

 

 

 

(1,034,889

)

Net cash flows from (used in) operating activities

 

 

67,872,351

 

 

 

19,722,218

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

Purchase of property and equipment

 

 

(20,429,805

)

 

 

(11,561,347

)

Proceeds from sales of property and equipment

 

 

416,546

 

 

 

151,808

 

Acquisition of Burklund

 

 

(15,464,397

)

 

 

—

 

Acquisition of Richmond Master

 

 

(6,631,039

)

 

 

—

 

Acquisition of Henry's

 

 

—

 

 

 

(54,865,303

)

Net cash flows from (used in) investing activities

 

 

(42,108,695

)

 

 

(66,274,842

)

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

Borrowings under revolving credit facilities

 

 

2,517,192,464

 

 

 

2,512,309,723

 

Repayments under revolving credit facilities

 

 

(2,536,358,449

)

 

 

(2,463,134,172

)

Proceeds from borrowings on long-term debt

 

 

—

 

 

 

7,000,000

 

Principal payments on long-term debt

 

 

(3,765,153

)

 

 

(2,349,065

)

Repurchase of common stock

 

 

—

 

 

 

(404,876

)

Dividends on common stock

 

 

(630,362

)

 

 

(3,534,308

)

Redemption and distributions to non-controlling interest

 

 

(2,320,299

)

 

 

(2,975,323

)

Net cash flows from (used in) financing activities

 

 

(25,881,799

)

 

 

46,911,979

 

Net change in cash

 

 

(118,143

)

 

 

359,355

 

Cash, beginning of period

 

 

790,931

 

 

 

431,576

 

Cash, end of period

 

$

672,788

 

 

$

790,931

 

 

 

 

 

 

Supplemental disclosure of cash flow information:

 

 

 

 

Cash paid during the period for interest, net of amounts capitalized

 

$

9,985,313

 

 

$

8,311,375

 

Cash paid during the period for income taxes, net of refunds

 

 

2,520,127

 

 

 

4,141,370

 

 

 

 

 

 

Supplemental disclosure of non-cash information:

 

 

 

 

Equipment acquisitions classified in accounts payable

 

$

1,016,948

 

 

$

1,015,534

 

Purchase of property financed with promissory note

 

 

8,000,000

 

 

 

—

 

Portion of Burklund acquisition financed with promissory note

 

 

3,900,000

 

 

 

—

 

Portion of Burklund acquisition financed with contingent consideration

 

 

1,578,444

 

 

 

—

 

Issuance of common stock in connection with the vesting of equity-based awards

 

 

1,296,372

 

 

 

2,044,805

 

 

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Charles J. Schmaderer AMCON Distributing Company Ph 402-331-3727