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

About this update from Amcon Distributing Company

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     View source version on businesswire.com: https://www.businesswire.com/news/home/20250120622978/en/

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