Subjects: EARNINGS, Conference Call, Webcast
AMCON Distributing Company Reports Results for the Quarter Ended December 31, 2019
AMCON Distributing Company ("AMCON") (NYSE American: DIT), an Omaha, Nebraska-based consumer products company is pleased to announce fully diluted earnings per share of $0.80 on net income available to common shareholders of $0.5 million for its first fiscal quarter ended December 31, 2019.
"AMCON has a legacy of first-class service and reliability which is the foundation of our position as a leader in the convenience distribution industry," said Christopher H. Atayan, AMCON's Chairman and Chief Executive Officer. He further noted, "The convenience store industry continues to embrace foodservice programs that are attractive to customers and competitive with quick serve restaurants. AMCON develops foodservice programs offering contemporary menu options that are optimal for our customers' staffing and facility requirements. Additionally, our management team seeks strategic acquisition opportunities that expand the depth and breadth of our service territory, or enhance the portfolio of services we offer our customers."
"Our service territory is expanding as our customers grow," said Andrew C. Plummer, AMCON's President and Chief Operating Officer. He further noted, "With that growth, we continue to invest in our facilities, the development of leading edge technology and efficient logistics capabilities that are necessary to serve our customers' needs on a daily basis. We were pleased to close December 31, 2019 with shareholders' equity of $62.0 million and consolidated debt of $37.1 million."
The wholesale distribution segment reported revenues of $350.0 million and operating income of $3.6 million for the first quarter of fiscal 2020. The retail health food segment reported revenues of $10.1 million and an operating loss of $1.1 million for the first quarter of fiscal 2020.
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 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, 2019 and September 30, 2019 |
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December |
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September |
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2019 |
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2019 |
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(Unaudited) |
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ASSETS |
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Current assets: |
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Cash |
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$ |
439,991 |
|
|
$ |
337,704 |
|
Accounts receivable, less allowance for doubtful accounts of $1.2 million at December 2019 and $0.9 million at September 2019 |
|
|
31,466,281 |
|
|
|
24,665,620 |
|
Inventories, net |
|
|
62,958,790 |
|
|
|
102,343,517 |
|
Income taxes receivable |
|
|
254,606 |
|
|
|
350,378 |
|
Prepaid and other current assets |
|
|
8,464,551 |
|
|
|
7,148,459 |
|
Total current assets |
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|
103,584,219 |
|
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|
134,845,678 |
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|
|
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Property and equipment, net |
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|
18,323,979 |
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|
17,655,415 |
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Operating lease right-of-use assets, net |
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20,523,782 |
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|
|
? |
|
Goodwill |
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4,436,950 |
|
|
|
4,436,950 |
|
Other intangible assets, net |
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|
500,000 |
|
|
|
500,000 |
|
Other assets |
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|
231,527 |
|
|
|
273,579 |
|
Total assets |
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$ |
147,600,457 |
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$ |
157,711,622 |
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LIABILITIES AND SHAREHOLDERS' EQUITY |
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Current liabilities: |
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Accounts payable |
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$ |
17,189,294 |
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|
$ |
18,647,572 |
|
Accrued expenses |
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|
6,608,838 |
|
|
|
8,577,972 |
|
Accrued wages, salaries and bonuses |
|
|
1,960,785 |
|
|
|
3,828,847 |
|
Current operating lease liabilities |
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|
5,460,582 |
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|
|
? |
|
Current maturities of long-term debt |
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|
537,285 |
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|
532,747 |
|
Total current liabilities |
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31,756,784 |
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31,587,138 |
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Credit facility |
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|
33,524,029 |
|
|
|
60,376,714 |
|
Deferred income tax liability, net |
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|
1,978,165 |
|
|
|
1,823,373 |
|
Long-term operating lease liabilities |
|
|
15,397,681 |
|
|
|
? |
|
Long-term debt, less current maturities |
|
|
2,989,526 |
|
|
|
3,125,644 |
|
Other long-term liabilities |
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? |
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42,011 |
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Shareholders' equity: |
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Preferred stock, $.01 par value, 1,000,000 shares authorized |
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? |
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|
? |
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Common stock, $.01 par value, 3,000,000 shares authorized, 565,833 shares outstanding at December 2019 and 552,614 shares outstanding at September 2019 |
|
|
8,692 |
|
|
|
8,561 |
|
Additional paid-in capital |
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|
24,192,954 |
|
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|
23,165,639 |
|
Retained earnings |
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|
66,592,637 |
|
|
|
66,414,397 |
|
Treasury stock at cost |
|
|
(28,840,011 |
) |
|
|
(28,831,855 |
) |
Total shareholders' equity |
|
|
61,954,272 |
|
|
|
60,756,742 |
|
Total liabilities and shareholders' equity |
|
$ |
147,600,457 |
|
|
$ |
157,711,622 |
|
AMCON Distributing Company and Subsidiaries Condensed Consolidated Unaudited Statements of Operations for the three months ended December 31, 2019 and 2018 |
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For the three months ended December |
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2019 |
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2018 |
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Sales (including excise taxes of $94.0 million and $93.0 million, respectively) |
|
$ |
360,101,103 |
|
|
$ |
344,733,920 |
|
Cost of sales |
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|
339,256,392 |
|
|
|
324,101,782 |
|
Gross profit |
|
|
20,844,711 |
|
|
|
20,632,138 |
|
Selling, general and administrative expenses |
|
|
18,952,735 |
|
|
|
17,957,214 |
|
Depreciation and amortization |
|
|
725,461 |
|
|
|
608,008 |
|
|
|
|
19,678,196 |
|
|
|
18,565,222 |
|
Operating income |
|
|
1,166,515 |
|
|
|
2,066,916 |
|
|
|
|
|
|
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Other expense (income): |
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|
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Interest expense |
|
|
472,423 |
|
|
|
322,950 |
|
Other (income), net |
|
|
(6,778 |
) |
|
|
(3,355 |
) |
|
|
|
465,645 |
|
|
|
319,595 |
|
Income from operations before income taxes |
|
|
700,870 |
|
|
|
1,747,321 |
|
Income tax expense |
|
|
249,000 |
|
|
|
502,000 |
|
Net income available to common shareholders |
|
$ |
451,870 |
|
|
$ |
1,245,321 |
|
|
|
|
|
|
|
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Basic earnings per share available to common shareholders |
|
$ |
0.80 |
|
|
$ |
2.02 |
|
Diluted earnings per share available to common shareholders |
|
$ |
0.80 |
|
|
$ |
1.99 |
|
|
|
|
|
|
|
|
||
Basic weighted average shares outstanding |
|
|
562,578 |
|
|
|
617,858 |
|
Diluted weighted average shares outstanding |
|
|
567,794 |
|
|
|
624,525 |
|
|
|
|
|
|
|
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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, 2019 and 2018 |
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Additional |
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Common Stock |
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Treasury Stock |
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Paid in |
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Retained |
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Shares |
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Amount |
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Shares |
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Amount |
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Capital |
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Earnings |
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Total |
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THREE MONTHS ENDED DECEMBER 2018 |
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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, $0.46 per share |
|
? |
|
|
? |
|
? |
|
|
|
? |
|
|
|
? |
|
|
(296,936 |
) |
|
|
(296,936 |
) |
Compensation expense and issuance of stock in connection with equity-based awards |
|
11,950 |
|
|
120 |
|
? |
|
|
|
? |
|
|
|
1,041,615 |
|
|
? |
|
|
|
1,041,735 |
|
Repurchase of common stock |
|
? |
|
|
? |
|
(10,432 |
) |
|
|
(918,085 |
) |
|
|
? |
|
|
? |
|
|
|
(918,085 |
) |
Net income |
|
? |
|
|
? |
|
? |
|
|
|
? |
|
|
|
? |
|
|
1,245,321 |
|
|
|
1,245,321 |
|
Balance, December 31, 2018 |
|
856,039 |
|
$ |
8,561 |
|
(238,744 |
) |
|
$ |
(22,242,837 |
) |
|
$ |
23,110,713 |
|
$ |
64,796,415 |
|
|
$ |
65,672,852 |
|
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THREE MONTHS ENDED DECEMBER 2019 |
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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 |
|
AMCON Distributing Company and Subsidiaries Condensed Consolidated Unaudited Statements of Cash Flows for the three months ended December 31, 2019 and 2018 |
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December |
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December |
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|
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2019 |
|
2018 |
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CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
||
Net income |
|
$ |
451,870 |
|
|
$ |
1,245,321 |
|
Adjustments to reconcile net income from operations to net cash flows from (used in) operating activities: |
|
|
|
|
|
|
||
Depreciation |
|
|
725,461 |
|
|
|
592,383 |
|
Amortization |
|
|
? |
|
|
|
15,625 |
|
Equity-based compensation |
|
|
129,931 |
|
|
|
316,056 |
|
Deferred income taxes |
|
|
154,792 |
|
|
|
276,942 |
|
Provision for losses on doubtful accounts |
|
|
371,000 |
|
|
|
11,000 |
|
Inventory allowance |
|
|
51,587 |
|
|
|
117,531 |
|
Other |
|
|
(42,011 |
) |
|
|
989 |
|
|
|
|
|
|
|
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Changes in assets and liabilities: |
|
|
|
|
|
|
||
Accounts receivable |
|
|
(7,171,661 |
) |
|
|
689,059 |
|
Inventories |
|
|
39,333,140 |
|
|
|
22,199,828 |
|
Prepaid and other current assets |
|
|
(1,578,437 |
) |
|
|
(4,321,455 |
) |
Other assets |
|
|
42,052 |
|
|
|
50,265 |
|
Accounts payable |
|
|
(1,623,841 |
) |
|
|
(4,261,996 |
) |
Accrued expenses and accrued wages, salaries and bonuses |
|
|
(2,509,401 |
) |
|
|
(2,515,963 |
) |
Income taxes receivable |
|
|
95,772 |
|
|
|
225,058 |
|
Net cash flows from (used in) operating activities |
|
|
28,430,254 |
|
|
|
14,640,643 |
|
|
|
|
|
|
|
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CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
||
Purchase of property and equipment |
|
|
(1,228,462 |
) |
|
|
(956,976 |
) |
Net cash flows from (used in) investing activities |
|
|
(1,228,462 |
) |
|
|
(956,976 |
) |
|
|
|
|
|
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CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
||
Borrowings under revolving credit facility |
|
|
330,596,076 |
|
|
|
336,212,413 |
|
Repayments under revolving credit facility |
|
|
(357,448,761 |
) |
|
|
(348,325,547 |
) |
Principal payments on long-term debt |
|
|
(131,580 |
) |
|
|
(235,188 |
) |
Repurchase of common stock |
|
|
(8,156 |
) |
|
|
(918,085 |
) |
Dividends on common stock |
|
|
(107,084 |
) |
|
|
(116,196 |
) |
Net cash flows from (used in) financing activities |
|
|
(27,099,505 |
) |
|
|
(13,382,603 |
) |
Net change in cash |
|
|
102,287 |
|
|
|
301,064 |
|
Cash, beginning of period |
|
|
337,704 |
|
|
|
520,644 |
|
Cash, end of period |
|
$ |
439,991 |
|
|
$ |
821,708 |
|
|
|
|
|
|
|
|
||
Supplemental disclosure of cash flow information: |
|
|
|
|
|
|
||
Cash paid during the period for interest |
|
$ |
519,459 |
|
|
$ |
306,243 |
|
Cash paid (refunded) during the period for income taxes |
|
|
(1,563 |
) |
|
|
? |
|
|
|
|
|
|
|
|
||
Supplemental disclosure of non-cash information: |
|
|
|
|
|
|
||
Equipment acquisitions classified in accounts payable |
|
$ |
234,816 |
|
|
$ |
200,782 |
|
Dividends declared, not paid |
|
|
166,546 |
|
|
|
180,740 |
|
Issuance of common stock in connection with the vesting and exercise of equity-based awards |
|
|
990,653 |
|
|
|
1,005,792 |
|
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