AMCON Distributing Company Reports Results for the Quarter Ended December 31, 2023

OMAHA, Neb.--(BUSINESS WIRE)--AMCON Distributing Company (“AMCON” or “the Company”) (NYSE American: DIT), an Omaha, Nebraska based consumer products company, is pleased to announce fully diluted earnings per share of $1.78 on net income available to common shareholders of $1.1 million for its first fiscal quarter ended December 31, 2023.

“We are pleased with our first quarter 2024 results. Our business continues to encounter numerous operating challenges resulting from a labor shortage, supply chain issues, inflation, volatility in energy prices, and the impact of rising interest rates. The customer-centric philosophy AMCON embraces has enabled our management team to work closely with our customers to ensure a timely flow of goods and services,” said Christopher H. Atayan, AMCON’s Chairman and Chief Executive Officer. He further noted, “We are actively pursuing strategic acquisition opportunities in the Convenience Distributor and Foodservice sectors.”

“We are investing heavily in our foodservice and technology platforms and associated staffing for these strategic focus areas,” said Andrew C. Plummer, AMCON’s President and Chief Operating Officer. Mr. Plummer added, “We are also looking to expand our geographic reach to better serve our customers as they grow their store footprints.”

Charles J. Schmaderer, AMCON’s Chief Financial Officer said, “At December 31, 2023, our shareholders’ equity was $106.9 million. Our strong liquidity position provided maximum flexibility to take advantage of attractive short-term merchandising opportunities that materialized during the quarter.” Mr. Schmaderer also added, “Our new 175,000 square foot distribution facility in Springfield, Missouri became partially operational in the first fiscal quarter and we will continue to invest in the facility to support our customers’ growth initiatives.”

AMCON, and its subsidiaries Team Sledd, LLC and Henry’s Foods, Inc., is a leading Convenience Distributor of consumer products, including beverages, candy, tobacco, groceries, foodservice, frozen and refrigerated foods, automotive supplies and health and beauty care products with distribution centers in Illinois, Minnesota, Missouri, Nebraska, North Dakota, South Dakota, Tennessee, and West Virginia. Through its Healthy Edge Retail Group, AMCON operates fifteen (15) 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
December 31, 2023 and September 30, 2023
	December			September
	2023			2023
	(Unaudited)
ASSETS
Current assets:
Cash	$	996,695		$	790,931
Accounts receivable, less allowance for credit losses of $2.3 million at December 2023 and $2.4 million at September 2023		68,822,905			70,878,420
Inventories, net		158,167,362			158,582,816
Income taxes receivable		1,517,687			1,854,484
Prepaid expenses and other current assets		13,926,848			13,564,056
Total current assets		243,431,497			245,670,707
Property and equipment, net		81,730,692			80,607,451
Operating lease right-of-use assets, net		23,345,042			23,173,287
Goodwill		5,778,325			5,778,325
Other intangible assets, net		5,150,510			5,284,935
Other assets		2,936,861			2,914,495
Total assets	$	362,372,927		$	363,429,200
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	44,059,086		$	43,099,326
Accrued expenses		13,788,439			14,922,279
Accrued wages, salaries and bonuses		5,160,357			8,886,529
Current operating lease liabilities		6,019,749			6,063,048
Current maturities of long-term debt		1,972,096			1,955,065
Current mandatorily redeemable non-controlling interest		1,757,236			1,703,604
Total current liabilities		72,756,963			76,629,851
Credit facilities		140,073,953			140,437,989
Deferred income tax liability, net		5,385,163			4,917,960
Long-term operating lease liabilities		17,646,454			17,408,758
Long-term debt, less current maturities		11,167,890			11,675,439
Mandatorily redeemable non-controlling interest, less current portion		7,933,339			7,787,227
Other long-term liabilities		523,157			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 December 2023 and 608,689 shares outstanding at September 2023		9,648			9,431
Additional paid-in capital		32,521,091			30,585,388
Retained earnings		105,627,432			104,846,438
Treasury stock at cost		(31,272,163	)		(31,272,163	)
Total shareholders’ equity		106,886,008			104,169,094
Total liabilities and shareholders’ equity	$	362,372,927		$	363,429,200

AMCON Distributing Company and Subsidiaries
Condensed Consolidated Unaudited Statements of Operations
for the three months ended December 31, 2023 and 2022
	For the three months ended December
	2023			2022
Sales (including excise taxes of $138.1 million and $130.3 million, respectively)	$	644,959,073		$	565,989,507
Cost of sales		601,658,151			531,019,924
Gross profit		43,300,922			34,969,583
Selling, general and administrative expenses		37,258,677			28,379,186
Depreciation and amortization		2,219,168			1,070,886
		39,477,845			29,450,072
Operating income		3,823,077			5,519,511
Other expense (income):
Interest expense		2,311,513			1,694,158
Change in fair value of mandatorily redeemable non-controlling interest		199,744			(54,916	)
Other (income), net		(563,141	)		(53,532	)
		1,948,116			1,585,710
Income from operations before income taxes		1,874,961			3,933,801
Income tax expense		804,000			1,304,800
Net income available to common shareholders	$	1,070,961		$	2,629,001
Basic earnings per share available to common shareholders	$	1.80		$	4.52
Diluted earnings per share available to common shareholders	$	1.78		$	4.46
Basic weighted average shares outstanding		595,623			581,612
Diluted weighted average shares outstanding		603,300			589,881
Dividends 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, 2023 and 2022
									Additional
	Common Stock			Treasury Stock					Paid-in		Retained
	Shares	Amount		Shares		Amount			Capital		Earnings			Total
THREE MONTHS ENDED DECEMBER 2022
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, $5.18 per share	—		—	—			—			—		(3,200,650	)		(3,200,650	)
Compensation expense and issuance of stock in connection with equity-based awards	26,263		263	—			—			2,453,953		—			2,454,216
Net income available to common shareholders	—		—	—			—			—		2,629,001			2,629,001
Balance, December 31, 2022	943,272	$	9,431	(332,220	)	$	(30,867,287	)	$	29,357,154	$	96,212,704		$	94,712,002
THREE MONTHS ENDED DECEMBER 2023
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, $0.46 per share	—		—	—			—			—		(289,967	)		(289,967	)
Compensation expense and issuance of stock in connection with equity-based awards	21,673		217	—			—			1,935,703		—			1,935,920
Net income available to common shareholders	—		—	—			—			—		1,070,961			1,070,961
Balance, December 31, 2023	964,945	$	9,648	(334,583	)	$	(31,272,163	)	$	32,521,091	$	105,627,432		$	106,886,008

AMCON Distributing Company and Subsidiaries
Condensed Consolidated Unaudited Statements of Cash Flows
for the three months ended December 31, 2023 and 2022
	December			December
	2023			2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income available to common shareholders	$	1,070,961		$	2,629,001
Adjustments to reconcile net income available to common shareholders to net cash flows from (used in) operating activities:
Depreciation		2,084,743			1,028,353
Amortization		134,425			42,533
(Gain) loss on sales of property and equipment		(53,287	)		(36,000	)
Equity-based compensation		571,137			390,570
Deferred income taxes		467,203			1,145,822
Provision for credit losses		(91,969	)		(496,332	)
Inventory allowance		30,988			141,087
Change in fair value of mandatorily redeemable non-controlling interest		199,744			(54,916	)
Changes in assets and liabilities:
Accounts receivable		2,147,484			8,381,282
Inventories		384,466			(50,699,513	)
Prepaid and other current assets		(362,792	)		45,110
Other assets		(22,366	)		199,411
Accounts payable		1,627,403			(6,602,785	)
Accrued expenses and accrued wages, salaries and bonuses		(3,649,088	)		(4,794,015	)
Other long-term liabilities		120,275			48,921
Income taxes payable and receivable		336,797			158,978
Net cash flows from (used in) operating activities		4,996,124			(48,472,493	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment		(3,947,143	)		(1,455,405	)
Proceeds from sales of property and equipment		124,803			36,000
Net cash flows from (used in) investing activities		(3,822,340	)		(1,419,405	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under revolving credit facilities		603,650,771			639,488,133
Repayments under revolving credit facilities		(604,014,807	)		(589,262,053	)
Principal payments on long-term debt		(490,518	)		(202,396	)
Dividends on common stock		(113,466	)		(111,220	)
Net cash flows from (used in) financing activities		(968,020	)		49,912,464
Net change in cash		205,764			20,566
Cash, beginning of period		790,931			431,576
Cash, end of period	$	996,695		$	452,142
Supplemental disclosure of cash flow information:
Cash paid during the period for interest	$	2,235,562		$	1,458,843
Supplemental disclosure of non-cash information:
Equipment acquisitions classified in accounts payable	$	347,891		$	28,183
Dividends declared, not paid		176,501			3,089,430
Issuance of common stock in connection with the vesting of equity-based awards		1,296,372			2,044,805