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Amcon Distributing Co (DIT) SEC Filing 8-K Material Event for the period ending Tuesday, January 18, 2022

Amcon Distributing Co

CIK: 928465 Ticker: DIT
Exhibit 99.1


AMCON Distributing Company Reports Results for the Quarter Ended December 31, 2021

OMAHA, Neb.--(BUSINESS WIRE)--January 18, 2022--AMCON Distributing Company (“AMCON”) (NYSE American: DIT), an Omaha, Nebraska based consumer products company, is pleased to announce fully diluted earnings per share of $5.18 on net income available to common shareholders of $3.0 million for its first fiscal quarter ended December 31, 2021.

“We are pleased with our results for the first fiscal quarter. AMCON continues to navigate a challenging operating environment. Our management team was able to deliver our customers a safe, consistent 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 $410.6 million and operating income of $7.4 million for the first quarter of fiscal 2022. The retail health food segment reported revenues of $11.9 million and operating income of $0.5 million for the first quarter of fiscal 2022.

“We work collaboratively with our customers to develop customized foodservice and technology platforms. This approach enables our customers to enhance their efficiencies and profitability, which is especially important in light of rapidly changing market conditions. Our customer base is growing geographically, and we are deploying the capital and human resources necessary to support this growth,” said Andrew C. Plummer, AMCON’s President and Chief Operating Officer. Mr. Plummer also noted, “AMCON’s associates and management did an outstanding job of securing the products and staffing necessary to best serve our customers in these challenging conditions.”

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 $79.6 million of shareholders’ equity and continue to work closely with our banking group to optimize our capital structure. We maintain consistently high levels of liquidity to support the growth of the enterprise.”

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

Condensed Consolidated Balance Sheets

December 31, 2021 and September 30, 2021

 

 

 

 

 

 

 

 

 

December

 

September

 

 

2021

 

2021

 

 

(Unaudited)

 

 

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash

 

$

840,961

 

 

$

519,591

 

Accounts receivable, less allowance for doubtful accounts of $0.8 million at December 2021 and $0.9 million at September 2021

 

 

30,861,247

 

 

 

35,844,163

 

Inventories, net

 

 

97,742,318

 

 

 

95,212,085

 

Prepaid expenses and other current assets

 

 

4,830,698

 

 

 

4,999,125

 

Total current assets

 

 

134,275,224

 

 

 

136,574,964

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

15,449,705

 

 

 

16,012,524

 

Operating lease right-of-use assets, net

 

 

16,942,549

 

 

 

17,846,529

 

Note receivable, net of current portion

 

 

3,325,000

 

 

 

3,325,000

 

Goodwill

 

 

4,436,950

 

 

 

4,436,950

 

Other intangible assets, net

 

 

500,000

 

 

 

500,000

 

Equity method investment

 

 

10,406,708

 

 

 

9,380,343

 

Other assets

 

 

312,635

 

 

 

334,819

 

Total assets

 

$

185,648,771

 

 

$

188,411,129

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

18,372,775

 

 

$

24,235,042

 

Accrued expenses

 

 

9,686,140

 

 

 

11,468,955

 

Accrued wages, salaries and bonuses

 

 

2,892,772

 

 

 

4,489,852

 

Income taxes payable

 

 

1,194,512

 

 

 

867,160

 

Current operating lease liabilities

 

 

5,555,582

 

 

 

5,513,390

 

Current maturities of long-term debt

 

 

566,624

 

 

 

561,202

 

Total current liabilities

 

 

38,268,405

 

 

 

47,135,601

 

 

 

 

 

 

 

 

Credit facility

 

 

48,447,738

 

 

 

43,650,865

 

Deferred income tax liability, net

 

 

2,704,876

 

 

 

1,531,228

 

Long-term operating lease liabilities

 

 

11,723,408

 

 

 

12,669,157

 

Long-term debt, less current maturities

 

 

4,910,559

 

 

 

5,054,265

 

Other long-term liabilities

 

 

13,611

 

 

 

757,387

 

 

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

 

 

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

 

 

 

 

 

 

Common stock, $.01 par value, 3,000,000 shares authorized, 582,789 shares outstanding at December 2021 and 551,369 shares outstanding at
September 2021

 

 

9,148

 

 

 

8,834

 

Additional paid-in capital

 

 

26,999,735

 

 

 

24,918,781

 

Retained earnings

 

 

83,438,578

 

 

 

83,552,298

 

Treasury stock at cost

 

 

(30,867,287

)

 

 

(30,867,287

)

Total shareholders’ equity

 

 

79,580,174

 

 

 

77,612,626

 

Total liabilities and shareholders’ equity

 

$

185,648,771

 

 

$

188,411,129

 


AMCON Distributing Company and Subsidiaries

Condensed Consolidated Unaudited Statements of Operations

for the three months ended December 31, 2021 and 2020

 

 

 

 

 

 

 

 

 

For the three months ended December

 

 

2021

 

2020

Sales (including excise taxes of $97.1 million and $100.5 million, respectively)

 

$

422,571,278

 

 

$

404,744,774

 

Cost of sales

 

 

395,638,615

 

 

 

381,282,795

 

Gross profit

 

 

26,932,663

 

 

 

23,461,979

 

Selling, general and administrative expenses

 

 

22,390,740

 

 

 

18,599,816

 

Depreciation

 

 

784,245

 

 

 

774,285

 

 

 

 

23,174,985

 

 

 

19,374,101

 

Operating income

 

 

3,757,678

 

 

 

4,087,878

 

 

 

 

 

 

 

 

Other expense (income):

 

 

 

 

 

 

Interest expense

 

 

322,097

 

 

 

376,430

 

Other (income), net

 

 

(40,109

)

 

 

(41,823

)

 

 

 

281,988

 

 

 

334,607

 

Income from operations before income taxes

 

 

3,475,690

 

 

 

3,753,271

 

Income tax expense

 

 

1,245,000

 

 

 

1,011,000

 

Equity method investment earnings, net of tax

 

 

770,365

 

 

 

335,339

 

Net income available to common shareholders

 

$

3,001,055

 

 

$

3,077,610

 

 

 

 

 

 

 

 

Basic earnings per share available to common shareholders

 

$

5.33

 

 

$

5.61

 

Diluted earnings per share available to common shareholders

 

$

5.18

 

 

$

5.57

 

 

 

 

 

 

 

 

Basic weighted average shares outstanding

 

 

563,546

 

 

 

548,125

 

Diluted weighted average shares outstanding

 

 

578,964

 

 

 

552,059

 

 

 

 

 

 

 

 

Dividends paid per common share

 

$

5.18

 

 

$

0.18

 


AMCON Distributing Company and Subsidiaries

Condensed Consolidated Unaudited Statements of Shareholders’ Equity

for the three months ended December 31, 2021 and 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

 

 

Common Stock

 

Treasury Stock

 

Paid-in

 

Retained

 

 

 

 

 

Shares

 

Amount

 

Shares

 

Amount

 

Capital

 

Earnings

 

Total

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 issuance of stock in connection with equity-based awards

 

31,420

 

 

314

 

 

 

 

 

 

 

2,080,954

 

 

 

 

 

2,081,268

 

Repurchase of common stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

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

 


AMCON Distributing Company and Subsidiaries

Condensed Consolidated Unaudited Statements of Cash Flows

for the three months ended December 31, 2021 and 2020

 

 

 

 

 

 

 

 

 

December

 

December

 

 

2021

 

2020

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

Net income

 

$

3,001,055

 

 

$

3,077,610

 

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

operating activities:

 

 

 

 

 

 

Depreciation

 

 

784,245

 

 

 

774,285

 

Equity method investment earnings, net of tax

 

 

(770,365

)

 

 

(335,339

)

(Gain) loss on sales of property and equipment

 

 

(31,000

)

 

 

(2,000

)

Equity-based compensation

 

 

710,056

 

 

 

346,891

 

Deferred income taxes

 

 

1,173,648

 

 

 

132,736

 

Provision for losses on doubtful accounts

 

 

(102,000

)

 

 

(24,000

)

Inventory allowance

 

 

99,304

 

 

 

172,137

 

Changes in assets and liabilities:

 

 

 

 

 

 

Accounts receivable

 

 

5,084,916

 

 

 

4,589,579

 

Inventories

 

 

(2,629,537

)

 

 

30,967,449

 

Prepaid and other current assets

 

 

(6,573

)

 

 

(5,792,622

)

Other assets

 

 

22,184

 

 

 

40,193

 

Accounts payable

 

 

(5,750,609

)

 

 

(5,069,889

)

Accrued expenses and accrued wages, salaries and bonuses

 

 

(1,519,848

)

 

 

(1,793,704

)

Other long-term liabilities

 

 

(743,776

)

 

 

(169,854

)

Income taxes payable and receivable

 

 

71,352

 

 

 

(211,854

)

Net cash flows from (used in) operating activities

 

 

(606,948

)

 

 

26,701,618

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

Purchase of property and equipment

 

 

(333,084

)

 

 

(432,505

)

Proceeds from sales of property and equipment

 

 

31,000

 

 

 

2,000

 

Principal payment received on note receivable

 

 

175,000

 

 

 

 

Net cash flows from (used in) investing activities

 

 

(127,084

)

 

 

(430,505

)

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

Borrowings under revolving credit facility

 

 

439,039,482

 

 

 

385,943,710

 

Repayments under revolving credit facility

 

 

(434,242,609

)

 

 

(414,863,443

)

Proceeds from borrowings on long-term debt

 

 

 

 

 

3,000,000

 

Principal payments on long-term debt

 

 

(138,284

)

 

 

(136,119

)

Repurchase of common stock

 

 

 

 

 

(5,738

)

Dividends on common stock

 

 

(3,114,775

)

 

 

(105,599

)

Settlement and withholdings of equity-based awards

 

 

(488,412

)

 

 

(250,021

)

Net cash flows from (used in) financing activities

 

 

1,055,402

 

 

 

(26,417,210

)

Net change in cash

 

 

321,370

 

 

 

(146,097

)

Cash, beginning of period

 

 

519,591

 

 

 

661,195

 

Cash, end of period

 

$

840,961

 

 

$

515,098

 

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

Cash paid during the period for interest

 

$

333,941

 

 

$

426,655

 

Cash paid during the period for income taxes

 

 

 

 

 

1,090,119

 

 

 

 

 

 

 

 

Supplemental disclosure of non-cash information:

 

 

 

 

 

 

Equipment acquisitions classified in accounts payable

 

$

16,591

 

 

$

16,007

 

Dividends declared, not paid

 

 

 

 

 

2,932,945

 

Issuance of common stock in connection with the vesting and exercise of

equity-based awards

 

 

2,280,783

 

 

 

949,812

 

 

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: 0001157523-22-000066
Submitted to the SEC: Tue Jan 18 2022 4:11:11 PM EST
Accepted by the SEC: Tue Jan 18 2022
Period: Tuesday, January 18, 2022
Industry: Wholesale Groceries General Line
Events:
  1. Earnings Release
  2. Financial Exhibit

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