AMCON Distributing Company Reports Results for the Quarter Ended December 31, 2024; Completes Acquisition of Arrowrock Supply

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 $0.57 on net income available to common shareholders of $0.3 million for its first fiscal quarter ended December 31, 2024.

“As the third largest Convenience Distributor in the United States measured by territory covered, AMCON is well positioned with the operational infrastructure necessary to advance the strategic plans of our growing retail partner base. AMCON’s long-standing core operating philosophy is to provide a superior level of customer service. Our customer-centric approach is particularly helpful in challenging weather conditions as we ensure that AMCON’s retail partners 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 actively seek strategic acquisition opportunities for Convenience and Foodservice Distributors, and their families, who want to align with our customer focused approach philosophy and further the legacy of their enterprises.”

“Foodservice through our Henry’s Foods (“Henry’s”) subsidiary continues to be a strategic focus. Henry’s offers a breadth and depth of proprietary foodservice programs and associated store level merchandising that is unparalleled in the convenience distribution industry. We now have the capability to offer turn-key solutions that will enable our retail partners the ability to compete head-on with the Quick Service Restaurant industry,” said Andrew C. Plummer, AMCON’s President and Chief Operating Officer. Mr. Plummer continued, “In particular, we now have integrated state of the art advertising, design, print and electronic display programs that we believe provide our customers a competitive edge.”

“We continue our relentless daily focus on managing the Company’s balance sheet and maximizing our liquidity position. At December 31, 2024, our shareholders’ equity was $112.4 million,” said Charles J. Schmaderer, AMCON’s Chief Financial Officer. Mr. Schmaderer also added, “We are investing capital to develop our recently acquired 250,000 square foot distribution facility in Colorado City, Colorado, which will support our customers’ growth initiatives in the Intermountain Region. In addition, we successfully closed the previously announced acquisition of the assets of Arrowrock Supply of Boise, Idaho.”

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 distribution centers in Colorado, Idaho, Illinois, Indiana, 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 CONSOLIDATED BALANCE SHEETS
		December				September
			2024				2024
		(Unaudited)
ASSETS
Current assets:
Cash		$	535,862			$	672,788
Accounts receivable, less allowance for credit losses of $2.4 million at December 2024 and $2.3 million at September 2024			70,590,733				70,653,907
Inventories, net			174,523,527				144,254,843
Income taxes receivable			396,222				718,645
Prepaid expenses and other current assets			12,096,904				12,765,088
Total current assets			258,143,248				229,065,271
Property and equipment, net			106,745,867				106,049,061
Operating lease right-of-use assets, net			26,246,028				25,514,731
Goodwill			5,778,325				5,778,325
Other intangible assets, net			4,612,808				4,747,234
Other assets			3,142,994				2,952,688
Total assets		$	404,669,270			$	374,107,310
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	47,342,697			$	54,498,225
Accrued expenses			14,947,716				15,802,727
Accrued wages, salaries and bonuses			3,256,748				8,989,355
Current operating lease liabilities			7,337,464				7,036,751
Current maturities of long-term debt			5,248,488				5,202,443
Current mandatorily redeemable non-controlling interest			1,757,237				1,703,604
Total current liabilities			79,890,350				93,233,105
Credit facilities			165,900,612				121,272,004
Deferred income tax liability, net			4,443,893				4,374,316
Long-term operating lease liabilities			19,203,592				18,770,001
Long-term debt, less current maturities			15,176,659				16,562,908
Mandatorily redeemable non-controlling interest, less current portion			6,649,075				6,507,896
Other long-term liabilities			985,936				1,657,295
Shareholders’ equity:
Preferred stock, $.01 par value, 1,000,000 shares authorized			—				—
Common stock, $.01 par value, 3,000,000 shares authorized, 645,462 shares outstanding at December 2024 and 630,362 shares outstanding at September 2024			9,799				9,648
Additional paid-in capital			35,077,446				34,439,735
Retained earnings			108,604,071				108,552,565
Treasury stock at cost			(31,272,163	)			(31,272,163	)
Total shareholders’ equity			112,419,153				111,729,785
Total liabilities and shareholders’ equity		$	404,669,270			$	374,107,310

AMCON Distributing Company and Subsidiaries CONSOLIDATED STATEMENTS OF OPERATIONS
		For the three months ended December
			2024				2023
Sales (including excise taxes of $143.4 million and $138.1 million, respectively)		$	711,273,256			$	644,959,073
Cost of sales			664,379,704				601,658,151
Gross profit			46,893,552				43,300,922
Selling, general and administrative expenses			40,587,630				37,258,677
Depreciation and amortization			2,635,601				2,219,168
			43,223,231				39,477,845
Operating income			3,670,321				3,823,077
Other expense (income):
Interest expense			2,846,621				2,311,513
Change in fair value of mandatorily redeemable non-controlling interest			194,812				199,744
Other (income), net			(111,531	)			(563,141	)
			2,929,902				1,948,116
Income from operations before income taxes			740,419				1,874,961
Income tax expense			392,000				804,000
Net income available to common shareholders		$	348,419			$	1,070,961
Basic earnings per share available to common shareholders		$	0.57			$	1.80
Diluted earnings per share available to common shareholders		$	0.57			$	1.78
Basic weighted average shares outstanding			611,322				595,623
Diluted weighted average shares outstanding			613,573				603,300
Dividends paid per common share		$	0.18			$	0.18

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
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
THREE MONTHS ENDED DECEMBER 2024
Balance, October 1, 2024		964,945			$	9,648			(334,583	)		$	(31,272,163	)		$	34,439,735			$	108,552,565			$	111,729,785
Dividends on common stock, $0.46 per share		—				—			—				—				—				(296,913	)			(296,913	)
Compensation expense and issuance of stock in connection with equity-based awards		15,100				151			—				—				637,711				—				637,862
Net income available to common shareholders		—				—			—				—				—				348,419				348,419
Balance, December 31, 2024		980,045			$	9,799			(334,583	)		$	(31,272,163	)		$	35,077,446			$	108,604,071			$	112,419,153

AMCON Distributing Company and Subsidiaries CONSOLIDATED STATEMENTS OF CASH FLOWS
		December				December
			2024				2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income available to common shareholders		$	348,419			$	1,070,961
Adjustments to reconcile net income available to common shareholders to net cash flows from (used in) operating activities:
Depreciation			2,501,175				2,084,743
Amortization			134,426				134,425
(Gain) loss on sales of property and equipment			(840	)			(53,287	)
Equity-based compensation			637,862				571,137
Deferred income taxes			69,577				467,203
Provision for credit losses			112,746				(91,969	)
Inventory allowance			24,405				30,988
Change in fair value of contingent consideration			(1,453,452	)			—
Change in fair value of mandatorily redeemable non-controlling interest			194,812				199,744
Changes in assets and liabilities:
Accounts receivable			(49,572	)			2,147,484
Inventories			(30,293,089	)			384,466
Prepaid and other current assets			668,184				(362,792	)
Other assets			(190,306	)			(22,366	)
Accounts payable			(6,911,400	)			1,627,403
Accrued expenses and accrued wages, salaries and bonuses			(6,055,070	)			(3,649,088	)
Other long-term liabilities			71,823				120,275
Income taxes payable and receivable			322,423				336,797
Net cash flows from (used in) operating activities			(39,867,877	)			4,996,124
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment			(3,453,711	)			(3,947,143	)
Proceeds from sales of property and equipment			12,442				124,803
Net cash flows from (used in) investing activities			(3,441,269	)			(3,822,340	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under revolving credit facilities			713,853,301				603,650,771
Repayments under revolving credit facilities			(669,224,693	)			(604,014,807	)
Principal payments on long-term debt			(1,340,204	)			(490,518	)
Dividends on common stock			(116,184	)			(113,466	)
Net cash flows from (used in) financing activities			43,172,220				(968,020	)
Net change in cash			(136,926	)			205,764
Cash, beginning of period			672,788				790,931
Cash, end of period		$	535,862			$	996,695
Supplemental disclosure of cash flow information:
Cash paid during the period for interest, net of amounts capitalized		$	2,815,683			$	2,235,562
Supplemental disclosure of non-cash information:
Equipment acquisitions classified in accounts payable		$	772,820			$	347,891
Dividends declared, not paid			180,729				176,501
Issuance of common stock in connection with the vesting of equity-based awards			—				1,296,372

 

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For Further Information Contact:

Charles J. Schmaderer

AMCON Distributing Company

Ph 402-331-3727

Source: AMCON Distributing Company