AMCON Distributing Company (“AMCON” or “Company”) (NYSE American: DIT), an Omaha, Nebraska based consumer products company, is pleased to announce fully diluted earnings per share of $5.19 on net income available to common shareholders of $3.0 million for its second fiscal quarter ended March 31, 2022.
“We are pleased with our results for the second fiscal quarter. Our management team has remained highly focused on delivering a consistently superior level of customer service in a highly challenging operating environment,” 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 $379.5 million and operating income of $6.3 million for the second quarter of fiscal 2022. The retail health food segment reported revenues of $12.4 million and operating income of $0.7 million for the second quarter of fiscal 2022.
“Ongoing supply chain disruptions with the consumer-packaged goods companies we partner with have impacted product availability across all markets, including the convenience distribution industry in which our company operates. The United States continues to experience an acute workforce shortage which we work diligently to address in our daily operations. Our Annual Spring Trade Show was well received and provides momentum as we enter our summer season. AMCON’s customer base continues to grow geographically and we are 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, “We are pleased with the ongoing progress of our strategic investment in Team Sledd, LLC. As a core operating principle we continue to maintain consistently high levels of liquidity to support the Company’s various strategic initiatives and long-term growth plan. We ended the quarter with $82.0 million of shareholders’ equity.”
AMCON’s Healthy Edge Retail Group plays an important role in the health and wellness of the communities it serves. 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 refrigerated foods, automotive supplies and health and beauty care products with distribution locations in Illinois, Missouri, Nebraska, North Dakota, South Dakota and Tennessee. AMCON, through its Healthy Edge Retail Group, 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, 2022 and September 30, 2021 |
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March |
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September |
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2022 |
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2021 |
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(Unaudited) |
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ASSETS |
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|
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Current assets: |
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|
|
|
|
|
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Cash |
|
$ |
527,555 |
|
|
$ |
519,591 |
|
Accounts receivable, less allowance for doubtful accounts of $0.9 million at March 2022 and September 2021 |
|
|
33,556,601 |
|
|
|
35,844,163 |
|
Inventories, net |
|
|
90,248,795 |
|
|
|
95,212,085 |
|
Income taxes receivable |
|
|
670,234 |
|
|
|
— |
|
Prepaid expenses and other current assets |
|
|
5,476,104 |
|
|
|
4,999,125 |
|
Total current assets |
|
|
130,479,289 |
|
|
|
136,574,964 |
|
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|
|
|
|
|
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Property and equipment, net |
|
|
15,282,499 |
|
|
|
16,012,524 |
|
Operating lease right-of-use assets, net |
|
|
16,280,827 |
|
|
|
17,846,529 |
|
Note receivable, net of current portion |
|
|
3,325,000 |
|
|
|
3,325,000 |
|
Goodwill |
|
|
4,436,950 |
|
|
|
4,436,950 |
|
Other intangible assets, net |
|
|
500,000 |
|
|
|
500,000 |
|
Equity method investment |
|
|
10,451,386 |
|
|
|
9,380,343 |
|
Other assets |
|
|
414,120 |
|
|
|
334,819 |
|
Total assets |
|
$ |
181,170,071 |
|
|
$ |
188,411,129 |
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|
|
|
|
|
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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Current liabilities: |
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|
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|
||
Accounts payable |
|
$ |
25,601,210 |
|
|
$ |
24,235,042 |
|
Accrued expenses |
|
|
9,747,031 |
|
|
|
11,468,955 |
|
Accrued wages, salaries and bonuses |
|
|
4,011,309 |
|
|
|
4,489,852 |
|
Income taxes payable |
|
|
— |
|
|
|
867,160 |
|
Current operating lease liabilities |
|
|
5,458,358 |
|
|
|
5,513,390 |
|
Current maturities of long-term debt |
|
|
572,100 |
|
|
|
561,202 |
|
Total current liabilities |
|
|
45,390,008 |
|
|
|
47,135,601 |
|
|
|
|
|
|
|
|
||
Credit facility |
|
|
35,191,547 |
|
|
|
43,650,865 |
|
Deferred income tax liability, net |
|
|
2,630,427 |
|
|
|
1,531,228 |
|
Long-term operating lease liabilities |
|
|
11,123,103 |
|
|
|
12,669,157 |
|
Long-term debt, less current maturities |
|
|
4,765,465 |
|
|
|
5,054,265 |
|
Other long-term liabilities |
|
|
36,069 |
|
|
|
757,387 |
|
|
|
|
|
|
|
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||
Shareholders’ equity: |
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|
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|
||
Preferred stock, $.01 par value, 1,000,000 shares authorized |
|
|
— |
|
|
|
— |
|
Common stock, $.01 par value, 3,000,000 shares authorized, 584,789 shares outstanding at March 2022 and 551,369 shares outstanding at September 2021 |
|
|
9,168 |
|
|
|
8,834 |
|
Additional paid-in capital |
|
|
26,555,046 |
|
|
|
24,918,781 |
|
Retained earnings |
|
|
86,336,525 |
|
|
|
83,552,298 |
|
Treasury stock at cost |
|
|
(30,867,287 |
) |
|
|
(30,867,287 |
) |
Total shareholders’ equity |
|
|
82,033,452 |
|
|
|
77,612,626 |
|
Total liabilities and shareholders’ equity |
|
$ |
181,170,071 |
|
|
$ |
188,411,129 |
|
AMCON Distributing Company and Subsidiaries Condensed Consolidated Unaudited Statements of Operations for the three and six months ended March 31, 2022 and 2021 |
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For the three months ended March |
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For the six months ended March |
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2022 |
|
2021 |
|
2022 |
|
2021 |
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Sales (including excise taxes of $89.1 million and $92.0 million, and $186.2 million and $192.5 million, respectively) |
|
$ |
391,888,192 |
|
|
$ |
378,513,490 |
|
|
$ |
814,459,469 |
|
|
$ |
783,258,263 |
|
Cost of sales |
|
|
365,211,270 |
|
|
|
355,540,704 |
|
|
|
760,849,885 |
|
|
|
736,823,498 |
|
Gross profit |
|
|
26,676,922 |
|
|
|
22,972,786 |
|
|
|
53,609,584 |
|
|
|
46,434,765 |
|
Selling, general and administrative expenses |
|
|
21,915,351 |
|
|
|
19,022,167 |
|
|
|
44,306,090 |
|
|
|
37,621,983 |
|
Depreciation |
|
|
818,222 |
|
|
|
779,925 |
|
|
|
1,602,467 |
|
|
|
1,554,210 |
|
|
|
|
22,733,573 |
|
|
|
19,802,092 |
|
|
|
45,908,557 |
|
|
|
39,176,193 |
|
Operating income |
|
|
3,943,349 |
|
|
|
3,170,694 |
|
|
|
7,701,027 |
|
|
|
7,258,572 |
|
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|
|
|
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Other expense (income): |
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|
|
|
|
|
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|
||||
Interest expense |
|
|
244,920 |
|
|
|
310,543 |
|
|
|
567,018 |
|
|
|
686,973 |
|
Other (income), net |
|
|
(60,958 |
) |
|
|
(84,265 |
) |
|
|
(101,068 |
) |
|
|
(126,088 |
) |
|
|
|
183,962 |
|
|
|
226,278 |
|
|
|
465,950 |
|
|
|
560,885 |
|
Income from operations before income taxes |
|
|
3,759,387 |
|
|
|
2,944,416 |
|
|
|
7,235,077 |
|
|
|
6,697,687 |
|
Income tax expense |
|
|
1,345,000 |
|
|
|
829,000 |
|
|
|
2,590,000 |
|
|
|
1,840,000 |
|
Equity method investment earnings, net of tax |
|
|
591,795 |
|
|
|
313,492 |
|
|
|
1,362,161 |
|
|
|
648,831 |
|
Net income available to common shareholders |
|
$ |
3,006,182 |
|
|
$ |
2,428,908 |
|
|
$ |
6,007,238 |
|
|
$ |
5,506,518 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic earnings per share available to common shareholders |
|
$ |
5.29 |
|
|
$ |
4.41 |
|
|
$ |
10.62 |
|
|
$ |
10.02 |
|
Diluted earnings per share available to common shareholders |
|
$ |
5.19 |
|
|
$ |
4.33 |
|
|
$ |
10.33 |
|
|
$ |
9.87 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic weighted average shares outstanding |
|
|
567,889 |
|
|
|
551,369 |
|
|
|
565,694 |
|
|
|
549,729 |
|
Diluted weighted average shares outstanding |
|
|
578,751 |
|
|
|
560,941 |
|
|
|
581,328 |
|
|
|
557,741 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Dividends paid per common share |
|
$ |
0.18 |
|
|
$ |
5.18 |
|
|
$ |
5.36 |
|
|
$ |
5.36 |
|
AMCON Distributing Company and Subsidiaries Condensed Consolidated Unaudited Statements of Shareholders’ Equity for the three and six months ended March 31, 2022 and 2021 |
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Additional |
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|
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|
|
Common Stock |
|
Treasury Stock |
|
Paid-in |
|
Retained |
|
|
|
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|
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Shares |
|
Amount |
|
Shares |
|
Amount |
|
Capital |
|
Earnings |
|
Total |
||||||||||
THREE MONTHS ENDED MARCH 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Balance, January 1, 2021 |
|
883,589 |
|
$ |
8,834 |
|
(332,220 |
) |
|
$ |
(30,867,287 |
) |
|
$ |
25,007,239 |
|
|
$ |
71,401,400 |
|
|
$ |
65,550,186 |
|
Dividends on common stock, $0.18 per share |
|
— |
|
|
— |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(105,586 |
) |
|
|
(105,586 |
) |
Compensation expense and settlement of equity-based awards |
|
— |
|
|
— |
|
— |
|
|
|
— |
|
|
|
(89,474 |
) |
|
|
— |
|
|
|
(89,474 |
) |
Repurchase of common stock |
|
— |
|
|
— |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net income |
|
— |
|
|
— |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,428,908 |
|
|
|
2,428,908 |
|
Balance, March 31, 2021 |
|
883,589 |
|
$ |
8,834 |
|
(332,220 |
) |
|
$ |
(30,867,287 |
) |
|
$ |
24,917,765 |
|
|
$ |
73,724,722 |
|
|
$ |
67,784,034 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
THREE MONTHS ENDED MARCH 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Balance, January 1, 2022 |
|
915,009 |
|
$ |
9,148 |
|
(332,220 |
) |
|
$ |
(30,867,287 |
) |
|
$ |
26,999,735 |
|
|
$ |
83,438,578 |
|
|
$ |
79,580,174 |
|
Dividends on common stock, $0.18 per share |
|
— |
|
|
— |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(108,235 |
) |
|
|
(108,235 |
) |
Compensation expense and settlement of equity-based awards |
|
2,000 |
|
|
20 |
|
— |
|
|
|
— |
|
|
|
(444,689 |
) |
|
|
— |
|
|
|
(444,669 |
) |
Repurchase of common stock |
|
— |
|
|
— |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net income |
|
— |
|
|
— |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,006,182 |
|
|
|
3,006,182 |
|
Balance, March 31, 2022 |
|
917,009 |
|
$ |
9,168 |
|
(332,220 |
) |
|
$ |
(30,867,287 |
) |
|
$ |
26,555,046 |
|
|
$ |
86,336,525 |
|
|
$ |
82,033,452 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
Additional |
|
|
|
|
|
|
||||||
|
|
Common Stock |
|
Treasury Stock |
|
Paid-in |
|
Retained |
|
|
|
|||||||||||||
|
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Capital |
|
Earnings |
|
Total |
||||||||||
SIX MONTHS ENDED MARCH 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Balance, October 1, 2020 |
|
869,867 |
|
$ |
8,697 |
(332,152 |
) |
|
$ |
(30,861,549 |
) |
|
$ |
24,282,058 |
|
|
$ |
71,362,334 |
|
|
$ |
64,791,540 |
|
|
Dividends on common stock, $5.36 per share |
|
— |
|
|
— |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3,144,130 |
) |
|
|
(3,144,130 |
) |
Compensation expense and settlement of equity-based awards |
|
13,722 |
|
|
137 |
|
— |
|
|
|
— |
|
|
|
635,707 |
|
|
|
— |
|
|
|
635,844 |
|
Repurchase of common stock |
|
— |
|
|
— |
|
(68 |
) |
|
|
(5,738 |
) |
|
|
— |
|
|
|
— |
|
|
|
(5,738 |
) |
Net income |
|
— |
|
|
— |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,506,518 |
|
|
|
5,506,518 |
|
Balance, March 31, 2021 |
|
883,589 |
|
$ |
8,834 |
(332,220 |
) |
|
$ |
(30,867,287 |
) |
|
$ |
24,917,765 |
|
|
$ |
73,724,722 |
|
|
$ |
67,784,034 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
SIX MONTHS ENDED MARCH 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Balance, October 1, 2021 |
|
883,589 |
|
$ |
8,834 |
(332,220 |
) |
|
$ |
(30,867,287 |
) |
|
$ |
24,918,781 |
|
|
$ |
83,552,298 |
|
|
$ |
77,612,626 |
|
|
Dividends on common stock, $5.36 per share |
|
— |
|
|
— |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3,223,011 |
) |
|
|
(3,223,011 |
) |
Compensation expense and settlement of equity-based awards |
|
33,420 |
|
|
334 |
|
— |
|
|
|
— |
|
|
|
1,636,265 |
|
|
|
— |
|
|
|
1,636,599 |
|
Repurchase of common stock |
|
— |
|
|
— |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net income |
|
— |
|
|
— |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6,007,238 |
|
|
|
6,007,238 |
|
Balance, March 31, 2022 |
|
917,009 |
|
$ |
9,168 |
(332,220 |
) |
|
$ |
(30,867,287 |
) |
|
$ |
26,555,046 |
|
|
$ |
86,336,525 |
|
|
$ |
82,033,452 |
|
|
AMCON Distributing Company and Subsidiaries Condensed Consolidated Unaudited Statements of Cash Flows for the six months ended March 31, 2022 and 2021 |
||||||||
|
|
|
|
|
|
|
||
|
|
March |
|
March |
||||
|
|
2022 |
|
2021 |
||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
||
Net income |
|
$ |
6,007,238 |
|
|
$ |
5,506,518 |
|
Adjustments to reconcile net income from operations to net cash flows from (used in) operating activities: |
|
|
|
|
|
|
||
Depreciation |
|
|
1,602,467 |
|
|
|
1,554,210 |
|
Equity method investment earnings, net of tax |
|
|
(1,362,161 |
) |
|
|
(648,831 |
) |
(Gain) loss on sales of property and equipment |
|
|
(76,220 |
) |
|
|
(1,374 |
) |
Equity-based compensation |
|
|
1,208,655 |
|
|
|
833,624 |
|
Deferred income taxes |
|
|
1,099,199 |
|
|
|
48,248 |
|
Provision for losses on doubtful accounts |
|
|
(3,000 |
) |
|
|
5,000 |
|
Inventory allowance |
|
|
155,534 |
|
|
|
110,769 |
|
Changes in assets and liabilities: |
|
|
|
|
|
|
||
Accounts receivable |
|
|
2,290,562 |
|
|
|
1,390,027 |
|
Inventories |
|
|
4,807,756 |
|
|
|
17,772,604 |
|
Prepaid and other current assets |
|
|
(651,979 |
) |
|
|
(4,096,452 |
) |
Equity method investment distributions |
|
|
744,118 |
|
|
|
— |
|
Other assets |
|
|
(79,301 |
) |
|
|
23,327 |
|
Accounts payable |
|
|
1,465,370 |
|
|
|
429,389 |
|
Accrued expenses and accrued wages, salaries and bonuses |
|
|
(700,748 |
) |
|
|
(610,589 |
) |
Other long-term liabilities |
|
|
(721,318 |
) |
|
|
(169,854 |
) |
Income taxes payable and receivable |
|
|
(1,990,394 |
) |
|
|
(867,112 |
) |
Net cash flows from (used in) operating activities |
|
|
13,795,778 |
|
|
|
21,279,504 |
|
|
|
|
|
|
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
||
Purchase of property and equipment |
|
|
(974,424 |
) |
|
|
(720,567 |
) |
Proceeds from sales of property and equipment |
|
|
79,000 |
|
|
|
10,938 |
|
Principal payment received on note receivable |
|
|
175,000 |
|
|
|
— |
|
Net cash flows from (used in) investing activities |
|
|
(720,424 |
) |
|
|
(709,629 |
) |
|
|
|
|
|
|
|
||
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
||
Borrowings under revolving credit facility |
|
|
819,125,190 |
|
|
|
771,182,879 |
|
Repayments under revolving credit facility |
|
|
(827,584,508 |
) |
|
|
(791,045,384 |
) |
Proceeds from borrowings on long-term debt |
|
|
— |
|
|
|
3,000,000 |
|
Principal payments on long-term debt |
|
|
(277,902 |
) |
|
|
(237,566 |
) |
Proceeds from exercise of stock options |
|
|
173,590 |
|
|
|
— |
|
Repurchase of common stock |
|
|
— |
|
|
|
(5,738 |
) |
Dividends on common stock |
|
|
(3,223,011 |
) |
|
|
(3,144,130 |
) |
Settlement and withholdings of equity-based awards |
|
|
(1,280,749 |
) |
|
|
(365,022 |
) |
Net cash flows from (used in) financing activities |
|
|
(13,067,390 |
) |
|
|
(20,614,961 |
) |
Net change in cash |
|
|
7,964 |
|
|
|
(45,086 |
) |
Cash, beginning of period |
|
|
519,591 |
|
|
|
661,195 |
|
Cash, end of period |
|
$ |
527,555 |
|
|
$ |
616,109 |
|
|
|
|
|
|
|
|
||
Supplemental disclosure of cash flow information: |
|
|
|
|
|
|
||
Cash paid during the period for interest |
|
$ |
582,394 |
|
|
$ |
690,134 |
|
Cash paid during the period for income taxes |
|
|
3,481,196 |
|
|
|
2,658,865 |
|
|
|
|
|
|
|
|
||
Supplemental disclosure of non-cash information: |
|
|
|
|
|
|
||
Equipment acquisitions classified in accounts payable |
|
$ |
29,047 |
|
|
$ |
16,230 |
|
Issuance of common stock in connection with the vesting and exercise of equity-based awards |
|
|
2,280,783 |
|
|
|
949,812 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20220418005427/en/
Contacts
Christopher H. Atayan
AMCON Distributing Company
Ph 402-331-3727
