Shares of AMCON Distributing Company (DIT) have gained 0.4% since the company reported its earnings for the quarter ended Dec. 31, 2025. This compares favorably to the S&P 500 index, which declined 0.9% over the same period. Over the past month, AMCON shares have appreciated 2.3%, while the broader market index has slipped 0.6%.For the first quarter of fiscal 2026, AMCON reported earnings per share (EPS) of $1.28, which marks a substantial increase from 57 cents EPS in the same quarter of the prior year. Re ...

Financial Performance - The Company reported consolidated sales of $730.1 million for Q1 2026, an increase of 2.6% compared to $711.3 million in Q1 2025[72]. - Gross profit for the Company was $48.0 million, reflecting a 2.5% increase from $46.9 million in the previous year, with a gross profit percentage remaining stable at 6.6%[72]. - Operating income increased by 7.4% to $3.9 million, compared to $3.7 million in Q1 2025[72]. - Net income available to common shareholders surged by 127.6% to $793,000, up from $348,000 in the prior year[72]. Sales Segments - The Wholesale Segment sales increased by $18.5 million to $719.3 million, driven by a $29.2 million increase from cigarette price hikes and a $5.7 million increase from other product categories, despite a $16.4 million decrease in cigarette carton sales[75]. - The Retail Segment sales rose by approximately $0.3 million to $10.8 million, primarily due to higher sales volumes in existing stores[75]. - Gross profit in the Wholesale Segment increased by $1.0 million in Q1 2026 compared to Q1 2025, driven by a $1.2 million increase in the Other Products category, partially offset by a $0.2 million decrease from cigarette manufacturer price increases[78]. Operating Expenses and Costs - Operating expenses rose by $0.9 million in Q1 2026 compared to Q1 2025, influenced by a $1.5 million reduction in the prior year, $0.1 million increases in employee compensation, and other costs, offset by a $0.9 million decrease in health and insurance costs[79]. - The Company continues to face challenges from inflationary pressures affecting operating costs across various business areas, including product costs and labor[57]. Debt and Liquidity - Interest expense decreased by $0.2 million in Q1 2026 due to lower interest rates, despite higher average debt balances[80]. - The total combined borrowing capacity of the Facilities was $305.0 million as of December 2025, with $229.4 million available for use, of which $140.7 million was outstanding[84][85]. - The average interest rate of the Facilities was 5.29% at December 2025, with peak borrowings reaching $193.2 million during the three months ended December 2025[86]. - The liquidity position is significantly influenced by working capital levels and access to bank credit, with no current hedging against interest rate or fuel cost risks[91]. - The Company believes its liquidity position will be adequate for operations, but a significant change in the operating environment could impact future revenue streams[92]. Strategic Initiatives - The Company operates 14 distribution centers across 10 states, covering approximately 1.7 million square feet of permanent floor space[70]. - The Company ranks as the third largest convenience distributor in the U.S. by geographic territory served, enhancing its competitive position through strategic investments[58]. - The Company declared a special dividend of $0.28 per share totaling approximately $0.2 million during Q1 2026, to be paid in Q2 2026[88]. - The Company issued letters of credit totaling $3.1 million to its workers' compensation insurance carriers as part of its self-insured loss control program[89]. - The Company is actively monitoring regulatory changes from the FDA that may impact the sale of certain products, including tobacco and vaping products[56].

Financial Performance - For the fiscal quarter ended December 31, 2025, AMCON reported fully diluted earnings per share of $1.28 and net income available to common shareholders of $0.8 million[2]. - Total sales for the quarter, including excise taxes, amounted to $730.1 million, an increase from $711.3 million in the same quarter of the previous year, representing a growth of approximately 2.3%[12]. - Gross profit for the quarter was $48.0 million, compared to $46.9 million in the prior year, reflecting a gross margin improvement[12]. - Operating income increased to $3.9 million from $3.7 million year-over-year, indicating a growth of about 7.4%[12]. - Net income available to common shareholders for December 2025 was $792,964, compared to $348,419 in December 2024, representing a significant increase[16]. Revenue Segments - The wholesale distribution segment generated revenues of $719.3 million with an operating income of $6.9 million, while the retail health food segment reported revenues of $10.8 million and an operating loss of $0.2 million[4]. Shareholder Equity and Assets - As of December 31, 2025, AMCON's shareholders' equity stood at $114.1 million, up from $113.1 million at the end of the previous quarter[10]. - AMCON's current assets totaled $229.96 million, while total liabilities were $264.6 million, resulting in a current ratio of approximately 0.87[10]. Cash Flow and Debt Management - Net cash flows from operating activities were $(11,695,015) in December 2025, an improvement from $(39,867,877) in December 2024[16]. - Cash paid during the period for interest, net of amounts capitalized, was $2,635,661 in December 2025, down from $2,815,683 in December 2024[16]. - The company reported a net change in cash of $34,140 for December 2025, compared to a decrease of $(136,926) in December 2024[16]. - Total borrowings under revolving credit facilities amounted to $699,127,269 in December 2025, slightly down from $713,853,301 in December 2024[16]. - Principal payments on long-term debt were $1,362,424 in December 2025, compared to $1,340,204 in December 2024[16]. Dividends and Accounts Receivable - Dividends on common stock increased to $117,127 in December 2025 from $116,184 in December 2024[16]. - The company reported a decrease in accounts receivable of $4,100,376 in December 2025, compared to an increase of $(49,572) in December 2024[16]. Cash Position - Cash, end of period for December 2025 was $778,753, up from $535,862 in December 2024[16]. - Equipment acquisitions classified in accounts payable were $32,413 in December 2025, down from $772,820 in December 2024[16]. Strategic Initiatives - The company is actively pursuing strategic acquisition opportunities to enhance its customer-focused approach in the convenience and foodservice distribution sector[3]. - AMCON operates 15 health and natural product retail stores across the Midwest and Florida, contributing to its market expansion strategy[5]. Cost Pressures - The company experienced inflationary pressures affecting its cost structures, particularly in product costs, labor, and employee benefits[5].

Core Viewpoint - AMCON Distributing Company reported a fully diluted earnings per share of $1.28 and a net income of $0.8 million for the first fiscal quarter ended December 31, 2025, indicating a focus on customer service and strategic growth through acquisitions in the convenience and foodservice distribution sector [1][2]. Financial Performance - For the fiscal quarter ended December 31, 2025, the wholesale distribution segment generated revenues of $719.3 million with an operating income of $6.9 million, while the retail health food segment reported revenues of $10.8 million and an operating loss of $0.2 million [3]. - The total sales for the quarter, including excise taxes, amounted to $730.1 million, compared to $711.3 million in the same quarter of the previous year, reflecting a growth in sales [7]. - The gross profit for the quarter was $48.0 million, up from $46.9 million year-over-year, while operating income increased to $3.9 million from $3.7 million [7]. Balance Sheet Highlights - As of December 31, 2025, AMCON's total assets were $378.7 million, down from $391.1 million at the end of September 2025 [6]. - Shareholders' equity increased to $114.1 million from $113.1 million in the previous quarter, indicating a stable equity position [4][6]. Strategic Initiatives - The company is committed to enhancing its customer service through proprietary foodservice programs and custom merchandising, aiming to provide retail partners with competitive advantages against the Quick Service Restaurant industry [2]. - AMCON is actively pursuing strategic acquisition opportunities to align with its customer-focused philosophy and to further the legacy of existing enterprises in the convenience and foodservice distribution space [2]. Operational Insights - The company emphasized the importance of managing its balance sheet and maximizing liquidity, particularly in light of inflationary pressures affecting operating expenses across various sectors [4]. - AMCON operates 14 distribution centers across 34 states and runs 15 health and natural product retail stores, showcasing its extensive reach in the convenience and foodservice distribution market [4].

Core Insights - AMCON Distributing Company's shares have declined 3.7% since the earnings report for the quarter ended September 30, 2025, contrasting with a 2% growth in the S&P 500 index during the same period [1] - The company reported a significant drop in earnings per share (EPS) to 92 cents, down nearly 87% from $7.15 in the previous year [1] - Total sales increased modestly to $2.8 billion, a 3.9% rise from $2.7 billion, but this was insufficient to offset higher operating costs [2] Financial Performance - Operating income fell 30% to $12.6 million from $18 million in fiscal 2024, while net income available to common shareholders decreased sharply to $0.6 million from $4.3 million [2] - Gross profit rose slightly to $188.2 million from $182.4 million, but was overshadowed by a nearly 7% increase in selling, general, and administrative expenses, which reached $165.8 million [4] - Total operating expenses increased to $175.7 million, a 6.9% rise over the previous year, contributing to a decline in pre-tax income to $1.6 million from $7.5 million [7] Business Segment Performance - The wholesale distribution segment generated revenues of $2.8 billion with an operating income of $23 million, while the retail health food segment reported revenues of $44.5 million and marginal operating income of $0.1 million [3] Cost and Inventory Dynamics - The cost of sales increased to $2.6 billion from $2.5 billion, reflecting inflationary trends and possibly higher logistical costs [8] - Inventory levels rose approximately 6.3% year over year, reaching $153.3 million, which may have impacted working capital and cash flow [8] Management Strategy - The CEO emphasized continued investment in customer service, foodservice programs, and proprietary technology to maintain competitive advantage [5] - The company is focused on identifying acquisition targets that align with its customer-first philosophy [5] Shareholder Actions - AMCON repurchased approximately 9,853 shares of its common stock for $1.1 million, indicating confidence in its valuation despite earnings pressures [10] - Dividend payments remained steady at $1.00 per share, consistent with the prior year, reflecting a commitment to returning value to shareholders [10] Recent Developments - AMCON acquired Arrowrock Supply for $6.1 million as part of its growth-through-acquisition strategy, following previous acquisitions aimed at expanding geographically and operationally [9]

Financial Performance - Sales for fiscal 2025 reached $2,816.7 million, an increase of $105.7 million compared to $2,711.0 million in fiscal 2024[101] - Gross profit for fiscal 2025 was $188.2 million, up from $182.4 million in fiscal 2024, maintaining a gross profit percentage of 6.7%[101] - Operating income decreased to $12.6 million in fiscal 2025 from $18.0 million in fiscal 2024, reflecting a decline of $5.4 million[101] - The Company acquired Arrowrock, contributing an additional $23.2 million in sales during fiscal 2025[103] - The Wholesale Segment's sales increased by $103.7 million, driven by acquisitions and price increases, despite a $176.3 million decrease in cigarette carton sales[103] - Operating expenses rose by $11.3 million in fiscal 2025, influenced by acquisitions and increased health and insurance costs[109] Debt and Interest - Interest expense remained stable at $10.4 million for both fiscal years 2025 and 2024, despite higher debt balances[110] - The total combined borrowing capacity of the Company's credit facilities was $305.0 million as of September 2025, with $126.8 million outstanding[114] - The average interest rate on the Facilities was 5.73% at September 2025, with peak borrowings reaching $197.1 million during fiscal 2025[117] Credit and Accounting Standards - The allowance for expected credit losses is based on historical uncollectible accounts as a percentage of total accounts receivable, with specific credit exposure assessed for higher-risk customers[127][131] - The Company adopted ASU 2023-07 on September 30, 2025, which improves reportable segment disclosure requirements but did not materially affect the consolidated financial statements[128] - ASU 2023-09, effective for fiscal 2026, enhances income tax disclosures for better transparency and comparability[129] - The Company is reviewing ASU 2024-03, effective for fiscal 2028, which improves expense disaggregation disclosures[130] Risks and Uncertainties - Forward-looking statements reflect management's beliefs and estimates of future performance, subject to risks and uncertainties[133] - Risks include potential impacts from trade tariffs, macroeconomic conditions, and retail demand fluctuations, particularly in the convenience store industry[134] - The Company faces risks related to workforce availability, wage pressures, and insurance renewals, which may affect operational costs[134] - Increased competition and market conditions in wholesale and retail health food businesses may impact asset valuations and impairments[134] - The Company is exposed to risks from supply chain disruptions, higher operational costs, and changing consumer demand for tobacco products[134] - Future results may differ from management's expectations due to various factors, including regulatory changes and economic conditions[138]

Financial Performance - AMCON reported fully diluted earnings per share of $0.92 and net income available to common shareholders of $0.6 million for the fiscal year ended September 30, 2025[2]. - Total sales for fiscal 2025 were $2.82 billion, an increase from $2.71 billion in fiscal 2024, reflecting a growth of approximately 4.0%[11]. - Gross profit for fiscal 2025 was $188.2 million, compared to $182.4 million in fiscal 2024, indicating a gross profit margin improvement[11]. - The company reported a decrease in operating income to $12.6 million for fiscal 2025, down from $18.0 million in fiscal 2024[11]. - Net income available to common shareholders for September 2025 was $568,739, a significant decrease from $4,336,489 in September 2024[15]. Revenue Segments - The wholesale distribution segment generated revenues of $2.8 billion with an operating income of $23.0 million, while the retail health food segment reported revenues of $44.5 million and operating income of $0.1 million for fiscal 2025[3]. Shareholder Equity - Shareholders' equity as of September 30, 2025, was $113.1 million, up from $111.7 million in the previous year[4]. Strategic Initiatives - The company is actively pursuing strategic acquisition opportunities to enhance its customer-focused approach and expand its market presence[3]. - AMCON's technology suite aims to provide customers with a competitive edge, integrating advertising and electronic display programs[4]. Liquidity and Cash Flow - AMCON's management emphasized a focus on optimizing liquidity, with total current assets amounting to $239.5 million as of September 30, 2025[4]. - Net cash flows from operating activities were $18,667,426 in September 2025, compared to $67,872,351 in September 2024, indicating a decline[15]. - Cash paid during the period for interest was $10,522,689, up from $9,985,313 in the previous year[15]. - Cash at the end of the period was $744,613, an increase from $672,788 at the end of September 2024[15]. Investment Activities - Net cash flows used in investing activities totaled $(15,021,709) in September 2025, compared to $(42,108,695) in September 2024[15]. - The company acquired Arrowrock Supply for $6,131,527 during the period[15]. Debt and Borrowings - Borrowings under revolving credit facilities increased to $2,588,656,781 from $2,517,192,464 year-over-year[15]. - Principal payments on long-term debt increased to $(5,260,092) from $(3,765,153) year-over-year[15]. Accounts Receivable - The company reported a change in accounts receivable of $(2,579,336) compared to an increase of $5,900,380 in the previous year[15]. Stock Repurchase - The company repurchased common stock amounting to $1,133,095 during the period[15].

Core Insights - AMCON Distributing Company reported fully diluted earnings per share of $0.92 and a net income of $0.6 million for the fiscal year ended September 30, 2025 [1] - The company emphasizes its long-term strategy focused on superior customer service, diverse foodservice programs, and advanced technology solutions, positioning itself favorably in the market [2] - The wholesale distribution segment generated revenues of $2.8 billion with an operating income of $23 million, while the retail health food segment reported revenues of $44.5 million and an operating income of $0.1 million for fiscal 2025 [2] Financial Performance - Total revenues for AMCON in fiscal 2025 were $2.8 billion, an increase from $2.7 billion in fiscal 2024 [6] - Gross profit for the year was $188.2 million, compared to $182.4 million in the previous year, indicating a growth of approximately 4.7% [6] - Operating income decreased to $12.6 million from $18 million in fiscal 2024, reflecting a decline of about 30.1% [6] Balance Sheet Highlights - As of September 30, 2025, total assets were $391.1 million, up from $374.1 million in 2024 [5][6] - Shareholders' equity increased to $113.1 million from $111.7 million in the previous year [5][6] - Current liabilities rose to $112.1 million from $93.2 million, indicating a significant increase in short-term obligations [5][6] Strategic Initiatives - The company is actively pursuing strategic acquisition opportunities to enhance its customer-focused approach and expand its market presence [2] - AMCON's management is focused on integrating recent acquisitions to optimize growth initiatives across various regions [3] - The company operates 14 distribution centers across 34 states, serving a wide range of consumer products [3]

Core Points - AMCON Distributing Company declared a quarterly cash dividend of $0.18 per common share, payable on November 17, 2025, to shareholders of record as of November 7, 2025 [1] Company Overview - AMCON Distributing Company 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 [2] - The company operates in thirty-four states from fourteen distribution centers located in Colorado, Idaho, Illinois, Indiana, Minnesota, Missouri, Nebraska, North Dakota, South Dakota, Tennessee, and West Virginia [2] - Through its Healthy Edge Retail Group, AMCON operates fifteen health and natural product retail stores in the Midwest and Florida [2]

Core Insights - AMCON Distributing Company's shares increased by 4.9% following the earnings report for the quarter ended June 30, 2025, outperforming the S&P 500's 1.2% growth during the same period [1] - The company reported earnings per share of $2.13, down from $2.46 in the prior-year quarter [1] Financial Performance - Quarterly sales rose by 3% year over year to $739.6 million, up from $717.9 million, driven by modest revenue gains across two operating segments [2] - Operating income fell by 13.5% to $4.9 million compared to $5.6 million in the prior-year period [2] - Net income available to common shareholders decreased to $1.3 million from $1.5 million a year earlier [2] Segment Performance - The wholesale distribution segment generated revenues of $728.3 million and operating income of $7.3 million [3] - The retail health food segment contributed $11.3 million in revenues and $0.1 million in operating income [3] - Gross profit increased to $49.6 million from $48 million, while selling, general, and administrative expenses rose by 6.5% to $42.5 million due to inflation-related costs [3] Cost and Expenses - Interest expenses were $2.7 million, slightly down from $2.9 million last year [4] - Income before taxes decreased to $2.1 million from $2.4 million in the prior-year quarter [4] Management Insights - The CEO emphasized the focus on integrating recent acquisitions and optimizing new facilities to strengthen AMCON's position as the third-largest convenience distributor in the U.S. [5] - The COO acknowledged challenges in the convenience retailing sector, including sluggish consumer spending and persistent inflation, while reaffirming foodservice as a strategic growth area [6] Macroeconomic Factors - AMCON's results reflect broader macroeconomic pressures, particularly inflation affecting product costs and operating expenses, which have compressed margins despite revenue growth [7] Dividend and Shareholder Returns - The company maintained its dividend payout at $0.18 per share for the quarter, consistent with the prior year, totaling $0.82 per share year-to-date [8] Financial Position - As of June 30, 2025, shareholders' equity was $113.2 million, up from $111.7 million as of September 30, 2024 [9] - Cash and equivalents were reported at $0.8 million, with total assets reaching $393.9 million [9] Cash Flow and Capital Expenditures - Cash flows from operations were negative $12.5 million for the nine-month period ended June 30, 2025, compared to positive $26.9 million in the prior-year period [10] - Capital expenditures totaled $8.2 million, with acquisitions consuming an additional $6.1 million in cash [10] Recent Developments - AMCON completed the acquisition of Arrowrock Supply for approximately $6.1 million in cash, aligning with its strategy to expand in the convenience distribution space [11]