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

1. AMCON reported EPS of $0.57 for Q1 fiscal 2024. 2. Sales increased to $711.27 million, a strong performance. 3. Strategic acquisitions and investment in distribution facilities are prioritized. 4. Despite growth, net income decreased compared to previous year. 5. Management emphasizes operational infrastructure and customer service focus.

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$120.3501/21 11:08 PM EDTLatest Updated
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FAQ

Why Bullish?

The strong revenue growth and strategic initiatives could support DIT's price stability. However, the decrease in net income might temper expectations.

How important is it?

Positive quarterly results and strategic focus are likely to enhance investor interest.

Why Short Term?

Immediate impacts observed due to quarterly performance; longer-term results depend on execution.

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AMCONHENRYF
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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