AMCON Distributing Company Reports Results for the Quarter Ended March 31, 2024

OMAHA, Neb., April 18, 2024--(BUSINESS WIRE)--AMCON Distributing Company ("AMCON" or "the Company") (NYSE American: DIT), an Omaha, Nebraska based Convenience and Foodservice Distributor, is pleased to announce fully diluted earnings per share of $0.89 on net income available to common shareholders of $0.5 million for its second fiscal quarter ended March 31, 2024.

"Labor shortages, supply chain issues, inflation, volatility in energy prices, and the impact of rising interest rates continue to present challenges for our business. AMCON’s customer-centric philosophy is a competitive advantage in this economic environment, as our customers rely on our ability to deliver a timely flow of goods and services," said Christopher H. Atayan, AMCON’s Chairman and Chief Executive Officer. He further noted, "We welcome our new team members and customers from our recently announced acquisition of Burklund Distributors, Inc. AMCON is committed to pursuing strategic acquisition opportunities in the Convenience Distributor and Foodservice sectors."

"Foodservice, technology platforms, and associated staffing for these strategic areas are a central focus for our management team," said Andrew C. Plummer, AMCON’s President and Chief Operating Officer. Mr. Plummer added, "We are actively expanding our geographic reach to better serve our customers as they grow their store footprints."

Charles J. Schmaderer, AMCON’s Chief Financial Officer said, "At March 31, 2024, our shareholders’ equity was $108.0 million. We continue to maintain a strong liquidity position and recent amendments to our bank credit facilities provided additional flexibility to pursue our strategic objectives that materialized during the quarter." Mr. Schmaderer also added, "We continue to invest in the completion of our 175,000 square foot distribution facility in Springfield, Missouri. In addition, we are also deploying capital in enhanced foodservice capabilities in our recently purchased 250,000 square foot facility in Colorado City, Colorado."

AMCON, and its subsidiaries Team Sledd, LLC and Henry’s Foods, Inc., is a leading Convenience and Foodservice Distributor of consumer products, including beverages, candy, tobacco, groceries, foodservice, frozen and refrigerated foods, automotive supplies and health and beauty care products with twelve (12) distribution centers in Colorado, Illinois, Minnesota, Missouri, Nebraska, North Dakota, South Dakota, Tennessee, and West Virginia. Through its Healthy Edge Retail Group, AMCON operates fourteen (14) health and natural product retail stores in the Midwest and Florida.

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, 2024 and September 30, 2023
		March				September
		2024				2023
		(Unaudited)
ASSETS
Current assets:
Cash		$	951,521			$	790,931
Accounts receivable, less allowance for credit losses of $2.3 million at March 2024 and $2.4 million at September 2023			66,881,140				70,878,420
Inventories, net			121,324,279				158,582,816
Income taxes receivable			844,730				1,854,484
Prepaid expenses and other current assets			15,244,494				13,564,056
Total current assets			205,246,164				245,670,707
Property and equipment, net			94,475,740				80,607,451
Operating lease right-of-use assets, net			22,830,252				23,173,287
Goodwill			5,778,325				5,778,325
Other intangible assets, net			5,016,084				5,284,935
Other assets			2,810,304				2,914,495
Total assets		$	336,156,869			$	363,429,200
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	51,726,762			$	43,099,326
Accrued expenses			12,661,273				14,922,279
Accrued wages, salaries and bonuses			5,371,550				8,886,529
Current operating lease liabilities			6,031,117				6,063,048
Current maturities of long-term debt			4,485,028				1,955,065
Current mandatorily redeemable non-controlling interest			1,812,558				1,703,604
Total current liabilities			82,088,288				76,629,851
Credit facilities			99,194,708				140,437,989
Deferred income tax liability, net			5,071,404				4,917,960
Long-term operating lease liabilities			17,106,256				17,408,758
Long-term debt, less current maturities			16,045,738				11,675,439
Mandatorily redeemable non-controlling interest, less current portion			8,012,406				7,787,227
Other long-term liabilities			686,435				402,882
Shareholders’ equity:
Preferred stock, $.01 par value, 1,000,000 shares authorized			—				—
Common stock, $.01 par value, 3,000,000 shares authorized, 630,362 shares outstanding at March 2024 and 608,689 shares outstanding at September 2023			9,648				9,431
Additional paid-in capital			33,160,639				30,585,388
Retained earnings			106,053,510				104,846,438
Treasury stock at cost			(31,272,163	)			(31,272,163	)
Total shareholders’ equity			107,951,634				104,169,094
Total liabilities and shareholders’ equity		$	336,156,869			$	363,429,200

AMCON Distributing Company and Subsidiaries
Condensed Consolidated Unaudited Statements of Operations
for the three and six months ended March 31, 2024 and 2023
	For the three months ended March								For the six months ended March
	2024				2023				2024				2023
Sales (including excise taxes of $127.4 and $130.9 million, and $265.5 and $261.3 million, respectively)	$	601,877,306			$	584,993,848			$	1,246,836,380			$	1,150,983,356
Cost of sales		559,566,439				543,861,287				1,161,224,591				1,074,881,211
Gross profit		42,310,867				41,132,561				85,611,789				76,102,145
Selling, general and administrative expenses		36,677,814				33,996,988				73,936,491				62,376,176
Depreciation and amortization		2,289,390				1,807,753				4,508,558				2,878,639
		38,967,204				35,804,741				78,445,049				65,254,815
Operating income		3,343,663				5,327,820				7,166,740				10,847,330
Other expense (income):
Interest expense		2,247,737				2,169,541				4,559,250				3,863,698
Change in fair value of mandatorily redeemable non-controlling interest		134,389				221,030				334,133				166,114
Other (income), net		(191,006	)			(173,725	)			(754,147	)			(227,257	)
		2,191,120				2,216,846				4,139,236				3,802,555
Income from operations before income taxes		1,152,543				3,110,974				3,027,504				7,044,775
Income tax expense		613,000				1,045,400				1,417,000				2,350,200
Net income available to common shareholders	$	539,543			$	2,065,574			$	1,610,504			$	4,694,575
Basic earnings per share available to common shareholders	$	0.90			$	3.53			$	2.69			$	8.04
Diluted earnings per share available to common shareholders	$	0.89			$	3.49			$	2.66			$	7.94
Basic weighted average shares outstanding		600,161				585,885				597,879				583,725
Diluted weighted average shares outstanding		608,029				592,448				605,917				591,249
Dividends paid per common share	$	0.46			$	5.18			$	0.64			$	5.36

AMCON Distributing Company and Subsidiaries
Condensed Consolidated Unaudited Statements of Shareholders’ Equity
for the three and six months ended March 31, 2024 and 2023
																Additional
		Common Stock							Treasury Stock							Paid-in			Retained
		Shares			Amount				Shares			Amount				Capital			Earnings				Total
THREE MONTHS ENDED MARCH 2023
Balance, January 1, 2023		943,272			$	9,431			(332,220	)		$	(30,867,287	)		$	29,357,154		$	96,212,704			$	94,712,002
Dividends on common stock, $.18 per share		—				—			—				—				—			(111,220	)			(111,220	)
Compensation expense related to equity-based awards		—				—			—				—				409,412			—				409,412
Net income available to common shareholders		—				—			—				—				—			2,065,574				2,065,574
Balance, March 31, 2023		943,272			$	9,431			(332,220	)		$	(30,867,287	)		$	29,766,566		$	98,167,058			$	97,075,768
THREE MONTHS ENDED MARCH 2024
Balance, January 1, 2024		964,945			$	9,648			(334,583	)		$	(31,272,163	)		$	32,521,091		$	105,627,432			$	106,886,008
Dividends on common stock, $0.18 per share		—				—			—				—				—			(113,465	)			(113,465	)
Compensation expense related to equity-based awards		—				—			—				—				639,548			—				639,548
Net income available to common shareholders		—				—			—				—				—			539,543				539,543
Balance, March 31, 2024		964,945			$	9,648			(334,583	)		$	(31,272,163	)		$	33,160,639		$	106,053,510			$	107,951,634

																Additional
		Common Stock							Treasury Stock							Paid-in			Retained
		Shares			Amount				Shares			Amount				Capital			Earnings				Total
SIX MONTHS ENDED MARCH 2023
Balance, October 1, 2022		917,009			$	9,168			(332,220	)		$	(30,867,287	)		$	26,903,201		$	96,784,353			$	92,829,435
Dividends on common stock, $5.36 per share		—				—			—				—				—			(3,311,870	)			(3,311,870	)
Compensation expense and issuance of stock in connection with equity-based awards		26,263				263			—				—				2,863,365			—				2,863,628
Net income available to common shareholders		—				—			—				—				—			4,694,575				4,694,575
Balance, March 31, 2023		943,272			$	9,431			(332,220	)		$	(30,867,287	)		$	29,766,566		$	98,167,058			$	97,075,768
SIX MONTHS ENDED MARCH 2024
Balance, October 1, 2023		943,272			$	9,431			(334,583	)		$	(31,272,163	)		$	30,585,388		$	104,846,438			$	104,169,094
Dividends on common stock, $0.64 per share		—				—			—				—				—			(403,432	)			(403,432	)
Compensation expense and issuance of stock in connection with equity-based awards		21,673				217			—				—				2,575,251			—				2,575,468
Net income available to common shareholders		—				—			—				—				—			1,610,504				1,610,504
Balance, March 31, 2024		964,945			$	9,648			(334,583	)		$	(31,272,163	)		$	33,160,639		$	106,053,510			$	107,951,634

AMCON Distributing Company and Subsidiaries
Condensed Consolidated Unaudited Statements of Cash Flows
for the six months ended March 31, 2024 and 2023
		March				March
		2024				2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income available to common shareholders		$	1,610,504			$	4,694,575
Adjustments to reconcile net income available to common shareholders to net cash flows from (used in) operating activities:
Depreciation			4,239,707				2,732,312
Amortization			268,851				146,327
(Gain) loss on sales of property and equipment			(105,505	)			(133,159	)
Equity-based compensation			1,210,685				1,061,383
Deferred income taxes			153,444				989,702
Provision for credit losses			(133,707	)			(378,302	)
Inventory allowance			22,413				(6,947	)
Change in fair value of mandatorily redeemable non-controlling interest			334,133				166,114
Changes in assets and liabilities:
Accounts receivable			4,130,987				5,097,281
Inventories			37,236,124				19,843,973
Prepaid and other current assets			(1,680,438	)			(411,185	)
Other assets			104,191				(275,796	)
Accounts payable			9,475,057				10,457,273
Accrued expenses and accrued wages, salaries and bonuses			(4,402,600	)			(1,094,009	)
Other long-term liabilities			283,553				116,896
Income taxes payable and receivable			1,009,754				(59,527	)
Net cash flows from (used in) operating activities			53,757,153				42,946,911
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment			(11,084,390	)			(2,760,586	)
Proceeds from sales of property and equipment			234,278				137,500
Acquisition of Henry's			—				(54,958,637	)
Net cash flows from (used in) investing activities			(10,850,112	)			(57,581,723	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under revolving credit facilities			1,128,853,805				1,184,888,842
Repayments under revolving credit facilities			(1,170,097,086	)			(1,173,087,034	)
Proceeds from borrowings on long-term debt			—				7,000,000
Principal payments on long-term debt			(1,099,738	)			(504,941	)
Dividends on common stock			(403,432	)			(3,311,870	)
Net cash flows from (used in) financing activities			(42,746,451	)			14,984,997
Net change in cash			160,590				350,185
Cash, beginning of period			790,931				431,576
Cash, end of period		$	951,521			$	781,761
Supplemental disclosure of cash flow information:
Cash paid during the period for interest, net of amounts capitalized		$	4,568,790			$	3,527,737
Cash paid during the period for income taxes, net of refunds			194,902				1,419,354
Supplemental disclosure of non-cash information:
Equipment acquisitions classified in accounts payable		$	167,913			$	132,876
Purchase of property financed with debt			8,000,000				—
Issuance of common stock in connection with the vesting of equity-based awards			1,296,372				2,044,805

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Contacts

Charles J. Schmaderer
AMCON Distributing Company
Ph 402-331-3727