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AMCON Distributing pany(DIT) - 2025 Q3 - Quarterly Report

PART I — FINANCIAL INFORMATION Financial Statements 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 access2728 - The company operates through two segments: the Wholesale Segment, serving approximately 7,900 retail outlets, and the Retail Segment, which operates 15 health food stores1720 Management's Discussion and Analysis of Financial Condition and Results of Operations 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 investments606263 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 volume79 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 liability92 - 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 202598101 Quantitative and Qualitative Disclosures About Market Risk The company states that this section is not applicable for the current reporting period - The company states that this item is 'Not applicable'109 Controls and Procedures 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, 2025111 - 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 controls114 PART II — OTHER INFORMATION Legal Proceedings The company reports no legal proceedings for the period - The company reported no legal proceedings115 Risk Factors 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, 2024116 Unregistered Sales of Equity Securities and Use of Proceeds The company reports no unregistered sales of equity securities or use of proceeds for the period - The company reported no unregistered sales of equity securities117 Defaults Upon Senior Securities The company reports no defaults upon senior securities for the period - The company reported no defaults upon senior securities118 Mine Safety Disclosures This section is not applicable to the company - This item is 'Not applicable'119 Other Information 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, 2025120 Exhibits 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 file122