
Financial Highlights and Management Commentary 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 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 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 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 services3 - AMCON has become the third largest Convenience Distributor in the United States as measured by territory covered3 - The company continues to actively seek strategic acquisition opportunities for Convenience and Foodservice Distributors3 COO Commentary on Operations and Market Conditions 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 spending3 - Inflationary pressures have resulted in higher operating expenses in areas such as product costs, labor, employee benefits, equipment, and insurance3 - Foodservice remains a strategic focus, with the company developing turn-key solutions to enable retail partners to compete with the Quick Service Restaurant (QSR) industry3 CFO Commentary on Financial Position 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, 20254 - The company maintains a relentless daily focus on managing its balance sheet and maximizing its liquidity position4 - AMCON is actively evaluating operational synergies that may be realizable from recent acquisition activity4 Company Overview 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 items5 - The company serves thirty-four (34) states from fourteen (14) distribution centers across the U.S5 - Through its Healthy Edge Retail Group, AMCON operates fifteen (15) health and natural product retail stores in the Midwest and Florida5 Consolidated Financial Statements 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 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 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 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 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 payable17 - Investing activities included $8.2 million for property and equipment purchases and $6.1 million for the acquisition of Arrowrock Supply17