Core Insights - AMCON Distributing Company reported a significant decline in earnings per share (EPS) to $7.15 for fiscal year 2024, down from $19.46 in the previous year, despite total revenues increasing to $2.7 billion from $2.5 billion [1][2] Financial Performance - The company's net income available to common shareholders decreased to $4.3 million from $11.6 million in the previous fiscal year [8] - Operating income fell to $18 million, a 30.8% decline from $26 million in fiscal 2023, primarily due to rising selling, general, and administrative (SG&A) expenses [6] - Interest expenses increased to $10.4 million from $8.6 million, reflecting higher debt levels used for financing expansions and acquisitions [7] Revenue Segments - The wholesale distribution segment generated revenues of $2.7 billion with an operating income of $31.3 million, indicating effective scale expansion and operational efficiency [3] - The retail health food segment reported revenues of $42.5 million but only a marginal operating income of $0.1 million, highlighting profitability challenges [4] Profitability Metrics - AMCON's gross profit improved to $182.4 million, up from $170.8 million, marking a 6.7% increase, which reflects better management of the cost of sales [5] - The gross profit margin showed slight enhancement, indicating improved alignment between sales and cost of goods sold [5] Balance Sheet Overview - Total assets increased to $374.1 million from $363.4 million, while cash decreased to $0.7 million from $0.8 million [8] - Long-term debt rose to $16.6 million from $11.7 million, and current maturities of long-term debt increased from $2 million to $5.2 million [9] - Shareholders' equity increased to $111.7 million from $104.2 million [9] Cash Flow and Operational Activities - Net cash provided by operating activities significantly improved to $67.9 million from $19.7 million in fiscal 2023 [10] Strategic Developments - AMCON is expanding its operations with new facilities and acquisitions, including a new facility in Springfield, MO, and investments in the Colorado City distribution center [11] - The company is focusing on enhancing foodservice capabilities through its subsidiary, Henry's Foods, integrating advanced advertising and merchandising solutions to compete in the Quick Service Restaurant industry [12]
AMCON's 2024 Earnings Fall Y/Y Due to Rising SG&A Costs