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

OMAHA, Neb.--(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