AMCON Distributing Company Reports Results for the Quarter Ended March 31, 2025

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, 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/

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