EX-99.1 2 tm2512518d1_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

 

AMCON DISTRIBUTING COMPANY REPORTS RESULTS FOR THE QUARTER ENDED MARCH 31, 2025

 

NEWS RELEASE

 

Omaha, NE, 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.”

 

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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

 

For Further Information Contact:

Charles J. Schmaderer

AMCON Distributing Company

Ph 402-331-3727

 

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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 

 

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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 

 

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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 

 

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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 

 

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