Exhibit 99.1

AMCON Distributing Company Reports Results for the Quarter Ended December 31, 2020

OMAHA, Neb.--(BUSINESS WIRE)--January 19, 2021--AMCON Distributing Company (“AMCON”) (NYSE American: DIT), an Omaha, Nebraska based consumer products company, is pleased to announce fully diluted earnings per share of $5.57 on net income available to common shareholders of $3.1 million for its first fiscal quarter ended December 31, 2020.

“We are pleased with our results for the first fiscal quarter. AMCON faced a challenging operating environment. Our management team was able to deliver to our customers a safe and seamless level of customer service,” said Christopher H. Atayan, AMCON’s Chairman and Chief Executive Officer. Mr. Atayan further noted, “AMCON remains focused on our long term strategic initiatives. We continue to seek out acquisition opportunities for distributors who want to align with our growing platform and customer centric management philosophy.”

The wholesale distribution segment reported revenues of $393.6 million and operating income of $5.8 million for the first quarter of fiscal 2021. The retail health food segment reported revenues of $11.1 million and an operating loss of $0.1 million for the first quarter of fiscal 2021.

“We work interactively with our customers to develop customized foodservice and technology platforms. This collaborative approach enables our customers to enhance their profitability, which is especially important in light of rapidly changing market conditions. Our customer base continues to grow geographically and AMCON is deploying the capital and human resources necessary to support this growth,” said Andrew C. Plummer, AMCON’s President and Chief Operating Officer.

Charles J. Schmaderer, AMCON’s Chief Financial Officer said, “We are pleased with the progress of our strategic investment in Team Sledd, LLC. We ended the quarter with $65.6 million of shareholders’ equity and continue to work closely with our banking group to optimize our capital structure. During the quarter, we refinanced and extended the maturity of certain term loans allowing us to capitalize on the current interest rate environment.”

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-one (21) 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
Condensed Consolidated Balance Sheets
December 31, 2020 and September 30, 2020

 

 

 

 

 

 

 

 

 

December

 

September

 

 

2020

 

2020

 

 

(Unaudited)

 

 

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash

 

$

515,098

 

$

661,195

Accounts receivable, less allowance for doubtful accounts of $0.8 million at December 2020 and $0.9 million at September 2020

 

 

29,712,850

 

 

34,278,429

Inventories, net

 

 

67,832,187

 

 

98,971,773

Prepaid and other current assets

 

 

7,884,267

 

 

2,091,645

Total current assets

 

 

105,944,402

 

 

136,003,042

 

 

 

 

 

 

 

Property and equipment, net

 

 

17,171,501

 

 

17,497,274

Operating lease right-of-use assets, net

 

 

18,660,239

 

 

18,936,126

Note receivable

 

 

3,500,000

 

 

3,500,000

Goodwill

 

 

4,436,950

 

 

4,436,950

Other intangible assets, net

 

 

500,000

 

 

500,000

Equity method investment

 

 

7,189,433

 

 

6,744,095

Other assets

 

 

343,593

 

 

383,786

Total assets

 

$

157,746,118

 

$

188,001,273

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

17,054,417

 

$

22,108,299

Accrued expenses

 

 

11,137,468

 

 

8,306,160

Accrued wages, salaries and bonuses

 

 

2,468,758

 

 

4,761,020

Income taxes payable

 

 

465,553

 

 

567,408

Current operating lease liabilities

 

 

5,756,176

 

 

5,607,098

Current maturities of long-term debt

 

 

512,344

 

 

516,850

Total current liabilities

 

 

37,394,716

 

 

41,866,835

 

 

 

 

 

 

 

Credit facility

 

 

33,051,949

 

 

61,971,682

Deferred income tax liability, net

 

 

1,939,311

 

 

1,806,575

Long-term operating lease liabilities

 

 

13,575,388

 

 

14,028,606

Long-term debt, less current maturities

 

 

5,477,181

 

 

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 December 2020 and 537,715 shares outstanding at September 2020

 

 

8,834

 

 

8,697

Additional paid-in capital

 

 

25,007,239

 

 

24,282,058

Retained earnings

 

 

71,401,400

 

 

71,362,334

Treasury stock at cost

 

 

(30,867,287)

 

 

(30,861,549)

Total shareholders’ equity

 

 

65,550,186

 

 

64,791,540

Total liabilities and shareholders’ equity

 

$

157,746,118

 

$

188,001,273 







 


AMCON Distributing Company and Subsidiaries
Condensed Consolidated Unaudited Statements of Operations
for the three months ended December 31, 2020 and 2019

 

 

 

 

 

 

 

 

 

For the three months ended December

 

 

2020

 

2019

Sales (including excise taxes of $100.5 million and $94.0 million, respectively)

 

$

404,744,774

 

$

360,101,103

Cost of sales

 

 

381,282,795

 

 

339,256,392

Gross profit

 

 

23,461,979

 

 

20,844,711

Selling, general and administrative expenses

 

 

18,599,816

 

 

18,952,735

Depreciation and amortization

 

 

774,285

 

 

725,461

 

 

 

19,374,101

 

 

19,678,196

Operating income

 

 

4,087,878

 

 

1,166,515

 

 

 

 

 

 

 

Other expense (income):

 

 

 

 

 

 

Interest expense

 

 

376,430

 

 

472,423

Other (income), net

 

 

(41,823)

 

 

(6,778)

 

 

 

334,607

 

 

465,645

Income from operations before income taxes

 

 

3,753,271

 

 

700,870

Income tax expense

 

 

1,011,000

 

 

249,000

Equity method investment earnings, net of tax

 

 

335,339

 

 

Net income available to common shareholders

 

$

3,077,610

 

$

451,870

 

 

 

 

 

 

 

Basic earnings per share available to common shareholders

 

$

5.61

 

$

0.80

Diluted earnings per share available to common shareholders

 

$

5.57

 

$

0.80

 

 

 

 

 

 

 

Basic weighted average shares outstanding

 

 

548,125

 

 

562,578

Diluted weighted average shares outstanding

 

 

552,059

 

 

567,794

 

 

 

 

 

 

 

Dividends declared and paid per common share

 

$

0.18

 

$

0.18







 


AMCON Distributing Company and Subsidiaries
Condensed Consolidated Unaudited Statements of Shareholders’ Equity
for the three months ended December 31, 2020 and 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

 

 

Common Stock

 

Treasury Stock

 

Paid-in

 

Retained

 

 

 

 

 

Shares

 

Amount

 

Shares

 

Amount

 

Capital

 

Earnings

 

Total

THREE MONTHS ENDED DECEMBER 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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, $0.46 per share

 

 

 

 

 

 

 

 

 

 

(273,630)

 

 

(273,630)

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

 

13,328

 

 

131

 

 

 

 

 

1,027,315

 

 

 

 

1,027,446

Repurchase of common stock

 

 

 

 

(109)

 

 

(8,156)

 

 

 

 

 

 

(8,156)

Net income

 

 

 

 

 

 

 

 

 

 

451,870

 

 

451,870

Balance, December 31, 2019

 

869,367

 

$

8,692

 

(303,534)

 

$

(28,840,011)

 

$

24,192,954

 

$

66,592,637

 

$

61,954,272

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

THREE MONTHS ENDED DECEMBER 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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, $5.18 per share

 

 

 

 

 

 

 

 

 

 

(3,038,544)

 

 

(3,038,544)

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

 

13,722

 

 

137

 

 

 

 

 

725,181

 

 

 

 

725,318

Repurchase of common stock

 

 

 

 

(68)

 

 

(5,738)

 

 

 

 

 

 

(5,738)

Net income

 

 

 

 

 

 

 

 

 

 

3,077,610

 

 

3,077,610

Balance, December 31, 2020

 

883,589

 

$

8,834

 

(332,220)

 

$

(30,867,287)

 

$

25,007,239

 

$

71,401,400

 

$

65,550,186




















 


AMCON Distributing Company and Subsidiaries
Condensed Consolidated Unaudited Statements of Cash Flows
for the three months ended December 31, 2020 and 2019

 

 

 

 

 

 

 

 

 

December

 

December

 

 

2020

 

2019

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

Net income

 

$

3,077,610

 

$

451,870

Adjustments to reconcile net income from operations to net cash flows from (used in) operating activities:

 

 

 

 

 

 

Depreciation

 

 

774,285

 

 

725,461

Equity method investment earnings, net of tax

 

 

(335,339)

 

 

Loss (gain) on sales of property and equipment

 

 

(2,000)

 

 

Equity-based compensation

 

 

346,891

 

 

129,931

Deferred income taxes

 

 

132,736

 

 

154,792

Provision (recovery) for losses on doubtful accounts

 

 

(24,000)

 

 

371,000

Inventory allowance

 

 

172,137

 

 

51,587

Other

 

 

 

 

(42,011)

 

 

 

 

 

 

 

Changes in assets and liabilities:

 

 

 

 

 

 

Accounts receivable

 

 

4,589,579

 

 

(7,171,661)

Inventories

 

 

30,967,449

 

 

39,333,140

Prepaid and other current assets

 

 

(5,792,622)

 

 

(1,578,437)

Other assets

 

 

40,193

 

 

42,052

Accounts payable

 

 

(5,069,889)

 

 

(1,623,841)

Accrued expenses and accrued wages, salaries and bonuses

 

 

(1,793,704)

 

 

(2,509,401)

Other long-term liabilities

 

 

(169,854)

 

 

Income taxes payable and receivable

 

 

(211,854)

 

 

95,772

Net cash flows from (used in) operating activities

 

 

26,701,618

 

 

28,430,254

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

Purchase of property and equipment

 

 

(432,505)

 

 

(1,228,462)

Proceeds from sales of property and equipment

 

 

2,000

 

 

Net cash flows from (used in) investing activities

 

 

(430,505)

 

 

(1,228,462)

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

Borrowings under revolving credit facility

 

 

385,943,710

 

 

330,596,076

Repayments under revolving credit facility

 

 

(414,863,443)

 

 

(357,448,761)

Proceeds from borrowings on long-term debt

 

 

3,000,000

 

 

Principal payments on long-term debt

 

 

(136,119)

 

 

(131,580)

Repurchase of common stock

 

 

(5,738)

 

 

(8,156)

Dividends on common stock

 

 

(105,599)

 

 

(107,084)

Settlement and withholdings of equity-based awards

 

 

(250,021)

 

 

Net cash flows from (used in) financing activities

 

 

(26,417,210)

 

 

(27,099,505)

Net change in cash

 

 

(146,097)

 

 

102,287

Cash, beginning of period

 

 

661,195

 

 

337,704

Cash, end of period

 

$

515,098

 

$

439,991

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

Cash paid during the period for interest

 

$

426,655

 

$

519,459

Cash paid (refunded) during the period for income taxes

 

 

1,090,119

 

 

(1,563)

 

 

 

 

 

 

 

Supplemental disclosure of non-cash information:

 

 

 

 

 

 

Equipment acquisitions classified in accounts payable

 

$

16,007

 

$

234,816

Dividends declared, not paid

 

 

2,932,945

 

 

166,546

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

 

 

949,812

 

 

990,653







 

 

Contacts

Christopher H. Atayan
AMCON Distributing Company
Ph 402-331-3727

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