Business Wire | Nov 8, 2021 04:10PM EST

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

Nov. 08, 2021

OMAHA, Neb.--(BUSINESS WIRE)--Nov. 08, 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 fordoubtful accounts of $0.9 million at 35,844,163 34,278,429 September 2021 and September 2020

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, 3,000,000shares authorized, 551,369 shares 8,834 8,697 outstanding at September 2021 and 537,715shares outstanding at September 2020

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 $403.9million and $393.3 million, $ 1,672,378,581 $ 1,521,278,763 respectively)

Cost of sales 1,571,829,805 1,433,544,831

Gross profit 100,548,776 87,733,932

Selling, general and administrative 79,631,140 75,051,227 expenses

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 16,688,287 7,502,011 taxes

Income tax expense 4,501,000 2,143,000

Equity method investment earnings, net 3,357,978 183,579 of tax

Net income available to common $ 15,545,265 $ 5,542,590 shareholders



Basic earnings per share available to $ 28.24 $ 9.88 common shareholders

Diluted earnings per share available to $ 27.36 $ 9.76 common shareholders



Basic weighted average shares 550,551 561,166 outstanding

Diluted weighted average shares 568,103 567,961 outstanding



Dividends declared and paid per common $ 5.72 $ 1.00 share

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

Dividends oncommon - - - - - (594,653 ) (594,653 )stock, $1.00per share

Compensationexpense andissuance ofstock in 13,828 136 - - 1,116,419 - 1,116,555 connectionwithequity-basedawards

Repurchaseof common - - (28,727 ) (2,029,694 ) - - (2,029,694 )stock

Net income - - - - - 5,542,590 5,542,590

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

Dividends oncommon - - - - - (3,355,301 ) (3,355,301 )stock, $5.72per share

Compensationexpense andissuance ofstock in 13,722 137 - - 636,723 - 636,860 connectionwithequity-basedawards

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

Net income - - - - - 15,545,265 15,545,265

Balance,September 883,589 $ 8,834 (332,220 ) $ (30,867,287 ) $ 24,918,781 $ 83,552,298 $ 77,612,626 30, 2021

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 incomefrom operations to net cash flowsfrom (used in)

operating activities:

Depreciation 3,093,017 3,116,449

Equity method investment earnings, (3,357,978 ) (183,579 )net of tax

Impairment charges - 485,270

(Gain) loss on sales of property and (9,864 ) 105,039 equipment

Equity-based compensation 2,415,156 1,085,287

Deferred income taxes (275,347 ) (16,798 )

Provision for losses on doubtful 50,000 (21,000 )accounts

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 1,392,730 - distributions

Other assets 48,967 (110,207 )

Accounts payable 1,998,494 3,529,980

Accrued expenses and accrued wages, 1,164,828 1,353,113 salaries and bonuses

Other long-term liabilities (169,854 ) 885,230

Income taxes payable and receivable (371,248 ) 857,270

Net cash flows from (used in) 20,935,640 15,203,048 operating activities



CASH FLOWS FROM INVESTING ACTIVITIES:

Purchase of property and equipment (1,525,882 ) (3,356,573 )

Proceeds from sales of property and 55,728 43,600 equipment

Investment in equity method investee - (6,500,000 )

Issuance of note receivable - (3,500,000 )

Net cash flows from (used in) (1,470,154 ) (13,312,973 )investing activities



CASH FLOWS FROM FINANCING ACTIVITIES:

Borrowings under revolving credit 1,663,751,276 1,515,476,055 facility

Repayments under revolving credit (1,682,072,093 ) (1,513,881,087 )facility

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

Principal payments on long-term debt (510,177 ) (532,747 )

Proceeds from exercise of stock - 25,750 options

Repurchase of common stock (5,738 ) (2,029,694 )

Dividends on common stock (3,355,301 ) (594,653 )

Settlement and withholdings of (415,057 ) (30,208 )equity-based awards

Net cash flows from (used in) (19,607,090 ) (1,566,584 )financing activities

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 $ 1,353,985 $ 1,743,098 interest

Cash paid during the period for 5,138,454 1,302,528 income taxes



Supplemental disclosure of non-cash information:

Equipment acquisitions classified in $ 128,249 $ - accounts payable

Issuance of common stock inconnection with the vesting andexercise of 949,812 990,653

equity-based awards

AMCON Distributing Company and Subsidiaries

FISCAL YEAR 2021



(dollars in thousands, except per First Second Third Fourthshare data)



Sales $ 404,745 $ 378,513 $ 438,313 $ 450,807

Gross profit 23,462 22,973 25,542 28,572

Income from operations before income 3,753 2,944 4,013 5,978taxes

Net income available to common $ 3,078 $ 2,429 $ 3,691 $ 6,348shareholders



Basic earnings per share available $ 5.61 $ 4.41 $ 6.69 $ 11.51to common shareholders

Diluted earnings per share available $ 5.57 $ 4.33 $ 6.48 $ 11.00to common shareholders



FISCAL YEAR 2020



(dollars in thousands, except per First Second Third Fourthshare data)



Sales $ 360,101 $ 337,887 $ 396,854 $ 426,437

Gross profit 20,845 20,693 21,652 24,543

Income from operations before income 701 1,032 2,054 3,715taxes

Net income available to common $ 452 $ 699 $ 1,580 $ 2,812shareholders



Basic earnings per share available $ .80 $ 1.24 $ 2.79 $ 5.10to common shareholders

Diluted earnings per share available $ .80 $ 1.22 $ 2.77 $ 5.00to common shareholders



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

____________

September 2021

Number of common shares outstanding at September 30, 2021 551,369

Add: common shares potentially issuable for stock options and 57,470unvested restricted stock units /1/

608,839



Total shareholders' equity at September 30, 2021 $ 77,612,626

Equity impact if all potential common shares were exercised or 7,177,416vested /1/

$ 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211108006076/en/

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