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]

Core Insights - Amcon Distributing reported diluted EPS of $2.13 and revenue of $739.6 million for Q3 fiscal 2025, with no analyst estimates available for comparison [1][2] - Operating profit margins tightened due to inflation in operating costs, leading to weaker profitability despite steady sales compared to Q3 fiscal 2024 [1][6] Financial Performance - EPS decreased by 13.4% from $2.46 in Q3 2024 to $2.13 in Q3 2025 [2] - Revenue increased by 3.0% from $717.9 million in Q3 2024 to $739.6 million in Q3 2025 [2] - Operating income fell by 13.5% from $5.6 million in Q3 2024 to $4.9 million in Q3 2025 [2] - Net income decreased by 11.5% from $1.5 million in Q3 2024 to $1.3 million in Q3 2025 [2] - Gross profit rose by 3.4% from $48.0 million in Q3 2024 to $49.6 million in Q3 2025 [2] Business Overview - Amcon Distributing specializes in wholesale distribution for the convenience retail sector, serving approximately 7,900 retail outlets [3] - The company operates two segments: wholesale distribution, which is the primary revenue driver, and retail health food stores [3][4] Segment Performance - The wholesale segment generated $728.3 million in revenue, accounting for over 98% of total sales, with an operating income of $7.3 million [5] - The retail health food segment reported $11.3 million in sales and a minimal operating income of $0.1 million [5] Cost and Expenses - SG&A expenses increased by 6.5% to $42.5 million compared to Q3 fiscal 2024, outpacing revenue growth [6] - Interest expense was $2.7 million, slightly lower than $2.9 million in Q3 fiscal 2024 [6] - Operating margin was approximately 0.7% [6] Strategic Focus - The company is focusing on expanding foodservice programs, integrating new acquisitions, and investing in technology to enhance marketing and customer retention [4][7] - Management highlighted the importance of proprietary marketing programs, although these have not yet translated into improved margins [7] Cash Flow and Financial Position - Year-to-date cash flow from operations was -$12.5 million, driven by increased accounts receivable and inventory buildup [8] - Shareholders' equity increased to $113.2 million, while cash on hand was $0.83 million and total debt rose to $154.6 million [8] Future Outlook - The company did not provide specific financial guidance but intends to pursue further acquisitions and maximize liquidity [9][10] - Key risks include reliance on cigarette sales and thin operating margins, with a focus on cash management due to inventory and accounts receivable buildup [10]

PART I — FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, showing total assets grew to **$393.9 million** and nine-month net income significantly decreased to **$77,006** from **$3.1 million**, primarily due to a shift in cash from operations Condensed Consolidated Balance Sheet Highlights (Unaudited) | Account | June 30, 2025 | September 30, 2024 | | :--- | :--- | :--- | | Total current assets | $243,725,265 | $229,065,271 | | Total assets | $393,915,525 | $374,107,310 | | Total current liabilities | $88,938,979 | $93,233,105 | | Credit facilities | $154,590,771 | $121,272,004 | | Total liabilities | $280,724,428 | $262,377,525 | | Total shareholders' equity | $113,191,097 | $111,729,785 | Condensed Consolidated Statements of Operations Highlights (Unaudited) | Metric | Q3 2025 | Q3 2024 | Nine Months 2025 | Nine Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Sales | $739,615,416 | $717,852,293 | $2,070,391,760 | $1,964,688,673 | | Gross Profit | $49,614,899 | $47,958,754 | $139,536,336 | $133,570,544 | | Operating Income | $4,863,538 | $5,622,620 | $8,995,763 | $12,789,361 | | Net Income | $1,318,547 | $1,489,399 | $77,006 | $3,099,904 | | Diluted EPS | $2.13 | $2.46 | $0.12 | $5.11 | Condensed Consolidated Statements of Cash Flows Highlights (Unaudited, Nine Months Ended June 30) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash from (used in) operating activities | $(12,471,560) | $26,870,683 | | Net cash from (used in) investing activities | $(14,264,324) | $(38,582,174) | | Net cash from (used in) financing activities | $26,889,418 | $11,639,902 | | Net change in cash | $153,534 | $(71,589) | - On January 17, 2025, the Company acquired substantially all operating assets of Arrowrock Supply for approximately **$6.1 million** in cash, funded by borrowings, as part of the Wholesale Segment to expand market access[27](index=27&type=chunk)[28](index=28&type=chunk) - The company operates through two segments: the Wholesale Segment, serving approximately **7,900** retail outlets, and the Retail Segment, which operates **15** health food stores[17](index=17&type=chunk)[20](index=20&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=16&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a challenging operating environment, detailing a **3.0%** Q3 sales increase to **$739.6 million** but a **13.5%** drop in operating income, alongside a **97.5%** nine-month net income decline due to increased expenses, with liquidity supported by **$86.4 million** in available credit - The company faces a challenging environment with weaker consumer spending and inflation, responding with strategic investments including expanding foodservice programs, geographic coverage with a new Colorado City facility, and technology investments[60](index=60&type=chunk)[62](index=62&type=chunk)[63](index=63&type=chunk) Q3 2025 vs. Q3 2024 Performance | Metric | Q3 2025 | Q3 2024 | % Change | | :--- | :--- | :--- | :--- | | Consolidated Sales | $739.6M | $717.9M | 3.0% | | Wholesale Sales | $728.3M | $707.7M | 2.9% | | Retail Sales | $11.3M | $10.2M | 11.1% | | Operating Income | $4.9M | $5.6M | (13.5%) | | Net Income | $1.3M | $1.5M | (11.5%) | - Q3 Wholesale sales growth was driven by the Arrowrock and Richmond Master acquisitions and cigarette price increases, partially offset by a **$51.7 million** decrease in cigarette carton volume[79](index=79&type=chunk) Nine Months 2025 vs. Nine Months 2024 Performance | Metric | Nine Months 2025 | Nine Months 2024 | % Change | | :--- | :--- | :--- | :--- | | Consolidated Sales | $2,070.4M | $1,964.7M | 5.4% | | Operating Income | $9.0M | $12.8M | (29.7%) | | Net Income | $77,006 | $3.1M | (97.5%) | - The significant drop in nine-month net income was due to a **$9.8 million** increase in operating expenses, driven by acquisitions, higher insurance costs, and a **$1.5 million** fair value adjustment of a contingent consideration liability[92](index=92&type=chunk) - The company's liquidity is primarily supported by three credit facilities with a combined borrowing capacity of **$305.0 million**, with **$154.6 million** outstanding and **$86.4 million** available as of June 2025[98](index=98&type=chunk)[101](index=101&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=24&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company states that this section is not applicable for the current reporting period - The company states that this item is 'Not applicable'[109](index=109&type=chunk) [Controls and Procedures](index=25&type=section&id=Item%204.%20Controls%20and%20Procedures) Senior management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[111](index=111&type=chunk) - No changes in internal control over financial reporting occurred during the fiscal quarter ended June 2025 that materially affected, or are reasonably likely to materially affect, internal controls[114](index=114&type=chunk) PART II — OTHER INFORMATION [Legal Proceedings](index=26&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no legal proceedings for the period - The company reported no legal proceedings[115](index=115&type=chunk) [Risk Factors](index=26&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's risk factors were reported from the prior fiscal year's Form 10-K - No material changes to the Company's risk factors as previously disclosed in the Form 10-K for the fiscal year ended September 30, 2024[116](index=116&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=26&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reports no unregistered sales of equity securities or use of proceeds for the period - The company reported no unregistered sales of equity securities[117](index=117&type=chunk) [Defaults Upon Senior Securities](index=26&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reports no defaults upon senior securities for the period - The company reported no defaults upon senior securities[118](index=118&type=chunk) [Mine Safety Disclosures](index=26&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is not applicable to the company - This item is 'Not applicable'[119](index=119&type=chunk) [Other Information](index=26&type=section&id=Item%205.%20Other%20Information) No company directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the third quarter ended June 30, 2025 - No directors or officers adopted or terminated a 'Rule 10b5-1 trading arrangement' or 'non-Rule 10b5-1 trading arrangement' during the three months ended June 30, 2025[120](index=120&type=chunk) [Exhibits](index=27&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including an amendment to a loan agreement, CEO/CFO certifications, and the Inline XBRL interactive data file - The report includes several exhibits, such as the Twelfth Amendment to a Loan and Security Agreement, CEO/CFO certifications under Sarbanes-Oxley Sections 302 and 906, and the Inline XBRL file[122](index=122&type=chunk)

[Financial Highlights and Management Commentary](index=1&type=section&id=Financial%20Highlights%20and%20Management%20Commentary) AMCON's Q3 2025 performance shows a net income of $1.3 million, with management prioritizing strategic acquisitions and liquidity amidst challenging market conditions [Quarterly Performance Summary](index=1&type=section&id=Quarterly%20Performance%20Summary) AMCON announced a diluted earnings per share of $2.13 on a net income of $1.3 million for its third fiscal quarter ending June 30, 2025, with wholesale distribution as the primary revenue driver Q3 2025 Key Financial Metrics | Metric | Value | | :--- | :--- | | Diluted Earnings Per Share | $2.13 | | Net Income Available to Common Shareholders | $1.3 million | Segment Performance for Quarter Ended June 2025 | Segment | Revenue (in millions) | Operating Income (in millions) | | :--- | :--- | :--- | | Wholesale Distribution | $728.3 million | $7.3 million | | Retail Health Food | $11.3 million | $0.1 million | [Management Commentary](index=1&type=section&id=Management%20Commentary) Management is focused on integrating recent acquisitions to enhance customer service and solidify its market position while navigating inflation and expanding foodservice capabilities [CEO Commentary on Strategy and Growth](index=1&type=section&id=CEO%20Commentary%20on%20Strategy%20and%20Growth) The CEO emphasized ongoing integration of acquisitions and new facilities to enhance customer service across an expanded territory, while actively seeking further strategic opportunities - The company is integrating recent acquisitions and new facilities to enhance its suite of programs and services[3](index=3&type=chunk) - **AMCON** has become the **third largest Convenience Distributor** in the United States as measured by territory covered[3](index=3&type=chunk) - The company continues to actively seek strategic acquisition opportunities for Convenience and Foodservice Distributors[3](index=3&type=chunk) [COO Commentary on Operations and Market Conditions](index=1&type=section&id=COO%20Commentary%20on%20Operations%20and%20Market%20Conditions) The COO highlighted a challenging operating environment due to lagging consumer spending and inflationary pressures, with a strategic focus on developing foodservice solutions - The convenience retailing sector is experiencing a challenging operating environment with **lagging consumer behavior** and discretionary spending[3](index=3&type=chunk) - **Inflationary pressures** have resulted in higher operating expenses in areas such as product costs, labor, employee benefits, equipment, and insurance[3](index=3&type=chunk) - **Foodservice** remains a strategic focus, with the company developing turn-key solutions to enable retail partners to compete with the Quick Service Restaurant (QSR) industry[3](index=3&type=chunk) [CFO Commentary on Financial Position](index=1&type=section&id=CFO%20Commentary%20on%20Financial%20Position) The CFO emphasized continuous balance sheet management and liquidity maximization, reporting shareholders' equity of $113.2 million while evaluating acquisition synergies - Shareholders' equity was **$113.2 million** at June 30, 2025[4](index=4&type=chunk) - The company maintains a relentless daily focus on managing its balance sheet and maximizing its liquidity position[4](index=4&type=chunk) - AMCON is actively evaluating operational synergies that may be realizable from recent acquisition activity[4](index=4&type=chunk) [Company Overview](index=2&type=section&id=Company%20Overview) AMCON, a leading Convenience and Foodservice Distributor, serves 34 states from 14 distribution centers and operates 15 health and natural product retail stores - **AMCON** is a leading Convenience and Foodservice Distributor of consumer products, including beverages, candy, tobacco, groceries, and foodservice items[5](index=5&type=chunk) - The company serves **thirty-four (34) states** from **fourteen (14) distribution centers** across the U.S[5](index=5&type=chunk) - Through its Healthy Edge Retail Group, AMCON operates **fifteen (15) health and natural product retail stores** in the Midwest and Florida[5](index=5&type=chunk) [Consolidated Financial Statements](index=3&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements present AMCON's financial position, operational results, equity changes, and cash flows for the reported periods, reflecting key financial trends [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets increased to $393.9 million, driven by higher receivables and inventories, while total liabilities rose to $280.7 million due to increased borrowings Balance Sheet Comparison | Account | June 30, 2025 (in millions) | Sept 30, 2024 (in millions) | | :--- | :--- | :--- | | Total Current Assets | $243.7 | $229.1 | | **Total Assets** | **$393.9** | **$374.1** | | Total Current Liabilities | $88.9 | $93.2 | | Credit Facilities | $154.6 | $121.3 | | **Total Liabilities** | **$280.7** | **$262.4** | | **Total Shareholders' Equity** | **$113.2** | **$111.7** | [Condensed Consolidated Unaudited Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Unaudited%20Statements%20of%20Operations) For Q3 2025, sales increased to $739.6 million, but operating income and net income declined, resulting in a diluted EPS of $2.13, with a significant year-to-date net income drop Q3 Performance (Three months ended June 30) | Metric | 2025 (in millions, except EPS) | 2024 (in millions, except EPS) | Change | | :--- | :--- | :--- | :--- | | Sales | $739.6 | $717.9 | +3.0% | | Gross Profit | $49.6 | $48.0 | +3.3% | | Operating Income | $4.9 | $5.6 | -12.5% | | Net Income | $1.3 | $1.5 | -13.3% | | Diluted EPS | $2.13 | $2.46 | -13.4% | Year-to-Date Performance (Nine months ended June 30) | Metric | 2025 (in millions, except EPS) | 2024 (in millions, except EPS) | Change | | :--- | :--- | :--- | :--- | | Sales | $2,070.4 | $1,964.7 | +5.4% | | Operating Income | $9.0 | $12.8 | -29.7% | | Net Income | $0.08 | $3.1 | -97.5% | | Diluted EPS | $0.12 | $5.11 | -97.7% | [Condensed Consolidated Unaudited Statements of Shareholders' Equity](index=5&type=section&id=Condensed%20Consolidated%20Unaudited%20Statements%20of%20Shareholders%27%20Equity) Shareholders' equity increased to $113.2 million by June 30, 2025, primarily due to equity-based compensation and net income, partially offset by dividends Change in Shareholders' Equity (Nine Months Ended June 30, 2025) | Item | Amount (in millions) | | :--- | :--- | | Balance, October 1, 2024 | $111.73 | | Dividends on common stock | ($0.53) | | Compensation and stock issuance | $1.91 | | Net income available to common shareholders | $0.08 | | **Balance, June 30, 2025** | **$113.19** | [Condensed Consolidated Unaudited Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Unaudited%20Statements%20of%20Cash%20Flows) For the nine months ended June 30, 2025, operating activities used $12.5 million in cash, contrasting with prior year's generation, while financing activities provided $26.9 million, leading to a net cash increase Cash Flow Summary (Nine months ended June 30) | Cash Flow Category | 2025 (in millions) | 2024 (in millions) | | :--- | :--- | :--- | | Net cash from (used in) operating activities | ($12.5) | $26.9 | | Net cash from (used in) investing activities | ($14.3) | ($38.6) | | Net cash from (used in) financing activities | $26.9 | $11.6 | | **Net change in cash** | **$0.2** | **($0.1)** | - The negative operating cash flow was driven by an **$8.5 million increase in accounts receivable**, a **$1.9 million increase in inventories**, and a **$7.7 million decrease in accounts payable**[17](index=17&type=chunk) - Investing activities included **$8.2 million for property and equipment purchases** and **$6.1 million for the acquisition of Arrowrock Supply**[17](index=17&type=chunk)

Core Viewpoint - AMCON Distributing Company reported a significant decline in earnings for the fiscal second quarter, with a loss per share of $2.58 compared to a profit of 89 cents in the same quarter last year, despite a modest increase in total sales to $619.5 million, reflecting ongoing challenges in profitability due to rising costs and margin pressures [2][3]. Financial Performance - The company's total sales increased by 2.9% year-over-year, from $601.9 million to $619.5 million [2]. - The net loss available to common shareholders was $1.6 million, a sharp decline from a net income of $0.5 million in the prior-year period [3]. - Operating income decreased significantly, with income from operations before income taxes swinging to a loss of $2 million compared to a profit of $1.2 million in the previous year [5]. Segment Performance - The wholesale distribution segment generated $607.6 million in revenues and $2.8 million in operating income, while the retail health food segment contributed $11.9 million in revenues and $0.4 million in operating income [4]. - Gross profit for the consolidated business was $43 million, slightly up from $42.3 million last year, but SG&A expenses rose by 9.4% to $40.1 million, outpacing revenue growth [4]. Cost and Expense Analysis - Interest expense remained high at $2.3 million, nearly unchanged from the prior year, and the company recognized a $0.3 million increase in the fair value of mandatorily redeemable non-controlling interests [5]. - Cash used in operating activities was $5.4 million, a significant decrease from cash generated from operations of $53.8 million a year ago, indicating greater working capital usage, particularly in inventories [9]. Management Insights - The CEO highlighted ongoing challenges in the convenience retailing sector, including lagging discretionary spending and cumulative inflationary effects on costs [6]. - The company is focusing on integrating acquisitions and enhancing customer service, positioning itself as the third-largest convenience distributor in the U.S. by territory [6]. Strategic Developments - AMCON acquired Arrowrock Supply during the quarter, further consolidating its position in the convenience distribution sector [11]. - The company is investing in a new 250,000 square foot distribution facility in Colorado City, CO, to support growth in the Intermountain Region [7].