AMCON Distributing Company Reports Results for the Quarter Ended March 31, 2025
OMAHA, Neb.--(BUSINESS WIRE)--April 18, 2025--
AMCON Distributing Company ("AMCON" or "the Company") (NYSE American: DIT), an Omaha, Nebraska based Convenience and Foodservice Distributor, announces fully diluted loss per share of $2.58 on a net loss available to common shareholders of $1.6 million for its second fiscal quarter ended March 31, 2025.
"The convenience retailing sector which we serve continues to experience a challenging operating environment with consumer behavior and discretionary spending lagging. At the same time, the cost structures for Convenience Distributors have been impacted by the cumulative impact of inflation over a multi-year period. These inflationary pressures have resulted in higher operating expenses in areas such as product costs, labor and employee benefits, equipment, and insurance, and in additional consolidation across our entire industry. Our management team is integrating our recent acquisitions and new facilities in order to provide our customer base AMCON's industry leading suite of programs 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."
"The system integration work we are implementing across our organization, which has now become the third largest Convenience Distributor in the United States measured by territory covered, provides the foundational support for our operating philosophy centered on 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 receive a consistent and timely flow of goods and services. As we grow, our customer base has been increasingly enthusiastic about our integrated state of the art advertising, design, print and electronic display programs that we believe provide our customers a competitive edge," said Andrew C. Plummer, AMCON's President and Chief Operating Officer. Mr. Plummer continued, "Foodservice continues to be a strategic focus. We offer 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."
For the fiscal quarter ended March 2025, the wholesale distribution segment reported revenues of $607.6 million and operating income of $2.8 million and the retail health food segment reported revenues of $11.9 million and operating income of $0.4 million.
"We continue our relentless daily focus on managing the Company's balance sheet and maximizing our liquidity position. At March 31, 2025, our shareholders' equity was $111.4 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."
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 fourteen (14) 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
March September
2025 2024
------------- ---------------
(Unaudited)
ASSETS
Current assets:
Cash $ 685,854 $ 672,788
Accounts receivable, less
allowance for credit losses of
$2.2 million at March 2025 and
$2.3 million at September 2024 65,081,021 70,653,907
Inventories, net 160,544,902 144,254,843
Income taxes receivable 338,291 718,645
Prepaid expenses and other current
assets 13,011,905 12,765,088
----------- -----------
Total current assets 239,661,973 229,065,271
Property and equipment, net 110,596,212 106,049,061
Operating lease right-of-use assets,
net 28,485,790 25,514,731
Goodwill 5,778,325 5,778,325
Other intangible assets, net 4,478,383 4,747,234
Other assets 3,003,354 2,952,688
----------- -----------
Total assets $392,004,037 $374,107,310
=========== ===========
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current liabilities:
Accounts payable $ 57,221,231 $ 54,498,225
Accrued expenses 14,807,437 15,802,727
Accrued wages, salaries and
bonuses 4,821,368 8,989,355
Current operating lease
liabilities 7,679,960 7,036,751
Current maturities of long-term
debt 5,314,657 5,202,443
Current mandatorily redeemable
non-controlling interest 1,812,558 1,703,604
----------- -----------
Total current liabilities 91,657,211 93,233,105
Credit facilities 142,291,571 121,272,004
Deferred income tax liability, net 3,802,644 4,374,316
Long-term operating lease
liabilities 21,060,350 18,770,001
Long-term debt, less current
maturities 13,823,014 16,562,908
Mandatorily redeemable
non-controlling interest, less
current portion 6,866,610 6,507,896
Other long-term liabilities 1,151,765 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
March 2025 and 630,362 shares
outstanding at September 2024 9,799 9,648
Additional paid-in capital 35,715,308 34,439,735
Retained earnings 106,897,928 108,552,565
Treasury stock at cost (31,272,163) (31,272,163)
----------- -----------
Total shareholders' equity 111,350,872 111,729,785
----------- -----------
Total liabilities and shareholders'
equity $392,004,037 $374,107,310
=========== ===========
AMCON Distributing Company and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
For the three months ended
March For the six months ended March
---------------------------- ----------------------------------
2025 2024 2025 2024
------------- ------------- --------------- -----------------
Sales (including
excise taxes of
$126.1 and $127.4
million, and
$269.5 and $265.5
million,
respectively) $619,503,087 $601,877,306 $1,330,776,344 $1,246,836,380
Cost of sales 576,475,202 559,566,439 1,240,854,907 1,161,224,591
----------- ----------- ------------- -------------
Gross profit 43,027,885 42,310,867 89,921,437 85,611,789
----------- ----------- ------------- -------------
Selling, general
and administrative
expenses 40,107,953 36,677,814 80,695,584 73,936,491
Depreciation and
amortization 2,458,027 2,289,390 5,093,628 4,508,558
----------- ----------- ------------- -------------
42,565,980 38,967,204 85,789,212 78,445,049
----------- ----------- ------------- -------------
Operating income 461,905 3,343,663 4,132,225 7,166,740
----------- ----------- ------------- -------------
Other expense
(income):
Interest expense 2,266,407 2,247,737 5,113,028 4,559,250
Change in fair
value of
mandatorily
redeemable
non-controlling
interest 272,856 134,389 467,668 334,133
Other (income),
net (56,398) (191,006) (167,930) (754,147)
----------- ----------- ------------- -------------
2,482,865 2,191,120 5,412,766 4,139,236
----------- ----------- ------------- -------------
Income (loss) from
operations before
income taxes (2,020,960) 1,152,543 (1,280,541) 3,027,504
Income tax expense
(benefit) (431,000) 613,000 (39,000) 1,417,000
----------- ----------- ------------- -------------
Net income (loss)
available to
common
shareholders $ (1,589,960) $ 539,543 $ (1,241,541) $ 1,610,504
=========== =========== ============= =============
Basic earnings
(loss) per share
available to
common
shareholders $ (2.58) $ 0.90 $ (2.02) $ 2.69
Diluted earnings
(loss) per share
available to
common
shareholders $ (2.58) $ 0.89 $ (2.02) $ 2.66
Basic weighted
average shares
outstanding 615,261 600,161 613,270 597,879
Diluted weighted
average shares
outstanding 615,261 608,029 613,270 605,917
Dividends paid
per common
share $ 0.46 $ 0.46 $ 0.64 $ 0.64
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 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
======= ===== ======== =========== ========== =========== ===========
THREE MONTHS
ENDED MARCH
2025
Balance,
January 1,
2025 980,045 $9,799 (334,583) $(31,272,163) $35,077,446 $108,604,071 $112,419,153
Dividends on
common stock,
$0.18 per
share -- -- -- -- -- (116,183) (116,183)
Compensation
expense
related to
equity-based
awards -- -- -- -- 637,862 -- 637,862
Net loss
available to
common
shareholders -- -- -- -- -- (1,589,960) (1,589,960)
------- ----- -------- ----------- ---------- ----------- -----------
Balance, March
31, 2025 980,045 $9,799 (334,583) $(31,272,163) $35,715,308 $106,897,928 $111,350,872
======= ===== ======== =========== ========== =========== ===========
Additional
Common Stock Treasury Stock Paid-in Retained
--------------- ------------------------
Shares Amount Shares Amount Capital Earnings Total
------- ------ --------- ------------- ----------- ------------- ---------------
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
======= ===== ======== =========== ========== =========== ===========
SIX MONTHS
ENDED MARCH
2025
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,
$0.64 per
share -- -- -- -- -- (413,096) (413,096)
Compensation
expense and
issuance of
stock in
connection
with
equity-based
awards 15,100 151 -- -- 1,275,573 -- 1,275,724
Net loss
available to
common
shareholders -- -- -- -- -- (1,241,541) (1,241,541)
------- ----- -------- ----------- ---------- ----------- -----------
Balance, March
31, 2025 980,045 $9,799 (334,583) $(31,272,163) $35,715,308 $106,897,928 $111,350,872
======= ===== ======== =========== ========== =========== ===========
AMCON Distributing Company and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
March March
2025 2024
---------------- ------------------
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net income (loss) available to
common shareholders $ (1,241,541) $ 1,610,504
Adjustments to reconcile net
income (loss) available to
common shareholders to net
cash flows from (used in)
operating activities:
Depreciation 4,824,777 4,239,707
Amortization 268,851 268,851
(Gain) loss on sales of
property and equipment (44,229) (105,505)
Equity-based compensation 1,275,724 1,210,685
Deferred income taxes (571,672) 153,444
Provision for credit losses (164,616) (133,707)
Inventory allowance 32,688 22,413
Change in fair value of
contingent consideration (1,453,452) --
Change in fair value of
mandatorily redeemable
non-controlling interest 467,668 334,133
Changes in assets and
liabilities, net of effects
of business combinations:
Accounts receivable 5,749,877 4,130,987
Inventories (13,324,448) 37,236,124
Prepaid and other current
assets (245,028) (1,680,438)
Other assets (50,666) 104,191
Accounts payable 2,898,936 9,475,057
Accrued expenses and accrued
wages, salaries and
bonuses (4,490,508) (4,402,600)
Other long-term liabilities 237,652 283,553
Income taxes payable and
receivable 380,354 1,009,754
-------------- --------------
Net cash flows from (used in)
operating activities (5,449,633) 53,757,153
-------------- --------------
CASH FLOWS FROM INVESTING
ACTIVITIES:
Purchase of property and
equipment (6,451,773) (11,084,390)
Proceeds from sales of
property and equipment 67,208 234,278
Acquisition of Arrowrock
Supply (6,131,527) --
-------------- --------------
Net cash flows from (used in)
investing activities (12,516,092) (10,850,112)
-------------- --------------
CASH FLOWS FROM FINANCING
ACTIVITIES:
Borrowings under revolving
credit facilities 1,262,647,310 1,128,853,805
Repayments under revolving
credit facilities (1,241,627,743) (1,170,097,086)
Principal payments on
long-term debt (2,627,680) (1,099,738)
Dividends on common stock (413,096) (403,432)
-------------- --------------
Net cash flows from (used in)
financing activities 17,978,791 (42,746,451)
-------------- --------------
Net change in cash 13,066 160,590
Cash, beginning of period 672,788 790,931
-------------- --------------
Cash, end of period $ 685,854 $ 951,521
============== ==============
Supplemental disclosure of
cash flow information:
Cash paid during the period
for interest, net of
amounts capitalized $ 5,215,092 $ 4,568,790
Cash paid during the period
for income taxes, net of
refunds 151,318 194,902
Supplemental disclosure of
non-cash information:
Equipment acquisitions
classified in accounts
payable $ 841,018 $ 167,913
Purchase of property
financed with promissory
note -- 8,000,000
Issuance of common stock in
connection with the vesting
of equity-based awards -- 1,296,372
View source version on businesswire.com: https://www.businesswire.com/news/home/20250418081279/en/
CONTACT: Charles J. Schmaderer
AMCON Distributing Company
Ph 402-331-3727
(END) Dow Jones Newswires
April 18, 2025 16:10 ET (20:10 GMT)
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