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Amcon Distributing Co (DIT) SEC Filing 8-K Material Event for the period ending Monday, November 8, 2021

Amcon Distributing Co

CIK: 928465 Ticker: DIT
Exhibit 99.1

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

OMAHA, Neb.--(BUSINESS WIRE)--November 8, 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 $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.

 

Contacts

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

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Ticker: DIT
CIK: 928465
Form Type: 8-K Corporate News
Accession Number: 0001157523-21-001365
Submitted to the SEC: Mon Nov 08 2021 4:11:59 PM EST
Accepted by the SEC: Mon Nov 08 2021
Period: Monday, November 8, 2021
Industry: Wholesale Groceries General Line
Events:
  1. Earnings Release
  2. Financial Exhibit

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