Business Wire | Apr 19, 2021 04:10PM EDT

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

Apr. 19, 2021

OMAHA, Neb.--(BUSINESS WIRE)--Apr. 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 $4.33 on net income available to common shareholders of $2.4 million for its second fiscal quarter ended March 31, 2021.

"We are pleased with our results for the second fiscal quarter. AMCON takes a long-term strategic view to the operation of our business. Providing our valued partners with the highest level of service guides our focus on a daily basis. Our outstanding team of associates work tirelessly to provide value to the customers and communities we serve," said Christopher H. Atayan, AMCON's Chairman and Chief Executive Officer. Mr. Atayan further noted, "AMCON continues 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 $366.2 million and operating income of $4.4 million for the second quarter of fiscal 2021. The retail health food segment reported revenues of $12.3 million and operating income of $0.7 million for the second quarter of fiscal 2021.

"Supply chain management is an essential element of servicing our customers in this challenging environment. Our proprietary technology platforms and state-of-the-art foodservice programs are tools we use to enhance our customers' profitability. Our customer base continues to grow geographically and AMCON is deploying the capital and human resources necessary to support this growth in a collaborative fashion," said Andrew C. Plummer, AMCON's President and Chief Operating Officer. Mr. Plummer further noted, "We are actively searching for facilities in, and adjacent to, the geographic markets we serve."

Charles J. Schmaderer, AMCON's Chief Financial Officer said, "AMCON is pleased with the progress of our strategic investment in Team Sledd, LLC. We ended the quarter with $67.8 million of shareholders' equity and continue to relentlessly focus on maintaining high levels of liquidity in our business to support operations and our growth initiatives."

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

March 31, 2021 and September 30, 2020



March September

2021 2020

(Unaudited)

ASSETS

Current assets:

Cash $ 616,109 $ 661,195

Accounts receivable, less allowance fordoubtful accounts of $0.9 million at March 32,883,402 34,278,429 2021 and September 2020

Inventories, net 81,088,400 98,971,773

Income taxes receivable 85,705 -

Prepaid and other current assets 6,188,097 2,091,645

Total current assets 120,861,713 136,003,042



Property and equipment, net 16,670,297 17,497,274

Operating lease right-of-use assets, net 17,588,664 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 7,606,925 6,744,095

Other assets 360,459 383,786

Total assets $ 171,525,008 $ 188,001,273



LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Accounts payable $ 22,553,918 $ 22,108,299

Accrued expenses 8,737,907 8,306,160

Accrued wages, salaries and bonuses 3,656,777 4,761,020

Income taxes payable - 567,408

Current operating lease liabilities 5,744,143 5,607,098

Current maturities of long-term debt 516,189 516,850

Total current liabilities 41,208,934 41,866,835



Credit facility 42,109,177 61,971,682

Deferred income tax liability, net 1,854,823 1,806,575

Long-term operating lease liabilities 12,438,764 14,028,606

Long-term debt, less current maturities 5,371,889 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, 3,000,000shares authorized, 551,369 shares 8,834 8,697 outstanding at March 2021 and 537,715shares outstanding at September 2020

Additional paid-in capital 24,917,765 24,282,058

Retained earnings 73,724,722 71,362,334

Treasury stock at cost (30,867,287 ) (30,861,549 )

Total shareholders' equity 67,784,034 64,791,540

Total liabilities and shareholders' equity $ 171,525,008 $ 188,001,273

AMCON Distributing Company and Subsidiaries

Condensed Consolidated Unaudited Statements of Operations

for the three and six months ended March 31, 2021 and 2020



For the three months ended March For the six months ended March

2021 2020 2021 2020

Sales(includingexcise taxesof $92.0million and$87.5 million, $ 378,513,490 $ 337,886,516 $ 783,258,263 $ 697,987,619 and $192.5million and$181.5million,respectively)

Cost of sales 355,540,704 317,193,063 736,823,498 656,449,455

Gross profit 22,972,786 20,693,453 46,434,765 41,538,164

Selling,general and 19,022,167 18,512,890 37,621,983 37,465,626 administrativeexpenses

Depreciationand 779,925 790,901 1,554,210 1,516,361 amortization

19,802,092 19,303,791 39,176,193 38,981,987

Operating 3,170,694 1,389,662 7,258,572 2,556,177 income



Other expense (income):

Interest 310,543 387,263 686,973 859,686 expense

Other (84,265 ) (29,920 ) (126,088 ) (36,697 )(income), net

226,278 357,343 560,885 822,989

Income fromoperations 2,944,416 1,032,319 6,697,687 1,733,188 before incometaxes

Income tax 829,000 333,000 1,840,000 582,000 expense

Equity methodinvestment 313,492 - 648,831 - earnings, netof tax

Net incomeavailable to $ 2,428,908 $ 699,319 $ 5,506,518 $ 1,151,188 commonshareholders



Basic earningsper shareavailable to $ 4.41 $ 1.24 $ 10.02 $ 2.04 commonshareholders

Dilutedearnings pershare $ 4.33 $ 1.22 $ 9.87 $ 2.02 available tocommonshareholders



Basic weightedaverage shares 551,369 565,697 549,729 564,129 outstanding

Dilutedweighted 560,941 571,852 557,741 569,856 average sharesoutstanding



Dividendsdeclared and $ 5.18 $ 0.46 $ 5.36 $ 0.64 paid percommon share

AMCON Distributing Company and Subsidiaries

Condensed Consolidated Unaudited Statements of Shareholders' Equity

for the three and six months ended March 31, 2021 and 2020



Additional

Common Stock Treasury Stock Paid-in Retained

Shares Amount Shares Amount Capital Earnings Total

THREE MONTHSENDED MARCH 2020

Balance,January 1, 869,367 $ 8,692 (303,534 ) $ (28,840,011 ) $ 24,192,954 $ 66,592,637 $ 61,954,272 2020

Dividends oncommon - - - - - (107,056 ) (107,056 )stock, $0.18per share

Compensationexpense andissuance ofstock in - - - - 31,191 - 31,191 connectionwithequity-basedawards

Repurchaseof common - - (307 ) (23,643 ) - - (23,643 )stock

Net income - - - - - 699,319 699,319

Balance,March 31, 869,367 $ 8,692 (303,841 ) $ (28,863,654 ) $ 24,224,145 $ 67,184,900 $ 62,554,083 2020



THREE MONTHSENDED MARCH 2021

Balance,January 1, 883,589 $ 8,834 (332,220 ) $ (30,867,287 ) $ 25,007,239 $ 71,401,400 $ 65,550,186 2021

Dividends oncommon - - - - - (105,586 ) (105,586 )stock, $0.18per share

Compensationexpense andissuance ofstock in - - - - (89,474 ) - (89,474 )connectionwithequity-basedawards

Repurchaseof common - - - - - - - stock

Net income - - - - - 2,428,908 2,428,908

Balance,March 31, 883,589 $ 8,834 (332,220 ) $ (30,867,287 ) $ 24,917,765 $ 73,724,722 $ 67,784,034 2021



Additional

Common Stock Treasury Stock Paid-in Retained

Shares Amount Shares Amount Capital Earnings Total

SIX MONTHSENDED MARCH 2020

Balance,October 1, 856,039 $ 8,561 (303,425 ) $ (28,831,855 ) $ 23,165,639 $ 66,414,397 $ 60,756,742 2019

Dividends oncommon - - - - - (380,685 ) (380,685 )stock, $0.64per share

Compensationexpense andissuance ofstock in 13,328 131 - - 1,058,506 - 1,058,637 connectionwithequity-basedawards

Repurchaseof common - - (416 ) (31,799 ) - - (31,799 )stock

Net income - - - - - 1,151,188 1,151,188

Balance,March 31, 869,367 $ 8,692 (303,841 ) $ (28,863,654 ) $ 24,224,145 $ 67,184,900 $ 62,554,083 2020



SIX MONTHSENDED MARCH 2021

Balance,October 1, 869,867 $ 8,697 (332,152 ) $ (30,861,549 ) $ 24,282,058 $ 71,362,334 $ 64,791,540 2020

Dividends oncommon - - - - - (3,144,130 ) (3,144,130 )stock, $5.36per share

Compensationexpense andissuance ofstock in 13,722 137 - - 635,707 - 635,844 connectionwithequity-basedawards

Repurchaseof common - - (68 ) (5,738 ) - - (5,738 )stock

Net income - - - - - 5,506,518 5,506,518

Balance,March 31, 883,589 $ 8,834 (332,220 ) $ (30,867,287 ) $ 24,917,765 $ 73,724,722 $ 67,784,034 2021

AMCON Distributing Company and Subsidiaries

Condensed Consolidated Unaudited Statements of Cash Flows

for the six months ended March 31, 2021 and 2020



March March

2021 2020

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income $ 5,506,518 $ 1,151,188

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

Depreciation 1,554,210 1,516,361

Equity method investment earnings, net of (648,831 ) - tax

(Gain) loss on sales of property and (1,374 ) 33,642 equipment

Equity-based compensation 833,624 446,114

Deferred income taxes 48,248 102,163

Provision for losses on doubtful accounts 5,000 390,000

Inventory allowance 110,769 55,746

Other - (42,011 )

Changes in assets and liabilities:

Accounts receivable 1,390,027 (3,535,875 )

Inventories 17,772,604 17,375,263

Prepaid and other current assets (4,096,452 ) (100,883 )

Other assets 23,327 (133,074 )

Accounts payable 429,389 4,401,077

Accrued expenses and accrued wages, (610,589 ) (1,432,939 )salaries and bonuses

Other long-term liabilities (169,854 ) -

Income taxes payable and receivable (867,112 ) 178,013

Net cash flows from (used in) operating 21,279,504 20,404,785 activities



CASH FLOWS FROM INVESTING ACTIVITIES:

Purchase of property and equipment (720,567 ) (2,245,139 )

Proceeds from sales of property and 10,938 - equipment

Net cash flows from (used in) investing (709,629 ) (2,245,139 )activities



CASH FLOWS FROM FINANCING ACTIVITIES:

Borrowings under revolving credit 771,182,879 680,161,101 facility

Repayments under revolving credit (791,045,384 ) (697,319,735 )facility

Proceeds from borrowings on long-term 3,000,000 - debt

Principal payments on long-term debt (237,566 ) (264,275 )

Repurchase of common stock (5,738 ) (31,799 )

Dividends on common stock (3,144,130 ) (380,685 )

Settlement and withholdings of (365,022 ) - equity-based awards

Net cash flows from (used in) financing (20,614,961 ) (17,835,393 )activities

Net change in cash (45,086 ) 324,253

Cash, beginning of period 661,195 337,704

Cash, end of period $ 616,109 $ 661,957



Supplemental disclosure of cash flow information:

Cash paid during the period for interest $ 690,134 $ 927,322

Cash paid during the period for income 2,658,865 301,824 taxes



Supplemental disclosure of non-cash information:

Equipment acquisitions classified in $ 16,230 $ 6,583 accounts payable

Issuance of common stock in connectionwith the vesting and exercise of 949,812 990,653 equity-based awards

View source version on businesswire.com: https://www.businesswire.com/news/home/20210419005833/en/

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