AMCON Distributing Company — Q3 2026 Earnings Summary

Financial Performance

• Reported fully diluted earnings per share (EPS) of $2.85 for the quarter ended June 30, 2026, compared to $1.42 in the prior year period.
• Net income available to common shareholders was $2.7 million for the quarter, up from $1.3 million in the same period last year.
• Total sales for the quarter reached $835.3 million, an increase from $739.6 million in the prior year period.
• Gross profit for the quarter was $49.8 million, slightly up from $49.6 million in the prior year period.
• Operating income for the quarter was $6.2 million, compared to $4.9 million in the prior year period.
• For the nine months ended June 30, 2026, total sales were $2.28 billion, up from $2.07 billion in the prior year period.
• Nine-month net income available to common shareholders was $1.3 million, compared to $77,006 in the prior year period.
• Shareholders' equity was $115.5 million as of June 30, 2026, up from $113.1 million as of September 30, 2025.
• Cash and cash equivalents were $636,644 at June 30, 2026, down from $744,613 at September 30, 2025.
• Total debt (including current maturities and credit facilities) increased to $168.2 million at June 30, 2026, from $132.3 million at September 30, 2025.
• Net cash used in operating activities for the nine months ended June 30, 2026, was $15.9 million, compared to $12.5 million used in the prior year period.
• Net cash provided by financing activities for the nine months ended June 30, 2026, was $21.8 million, compared to $26.9 million in the prior year period.
• Dividends paid per common share were $0.12 for the quarter and $0.55 for the nine-month period, consistent with the prior year periods.

Business Segments and Product Lines

• The wholesale distribution segment reported revenues of $824.7 million and operating income of $9.2 million for the quarter.
• The retail health food segment reported revenues of $10.7 million and an operating loss of $0.2 million for the quarter.
• The company operates 13 distribution centers across 34 states serving the convenience and foodservice sectors.
• Through its Healthy Edge Retail Group, the company operates 15 health and natural product retail stores in the Midwest and Florida.
• The company offers integrated advertising, design, print, and electronic display programs to support customer marketing needs.

Risks and Challenges

• Inflationary pressures over a multi-year period have increased operating expenses related to product costs, labor, employee benefits, equipment, and insurance.
• Forward-looking statements are subject to risks including the availability of sufficient cash resources to conduct business and meet capital expenditure needs.

Management Commentary and Tone

• Chairman and CEO Christopher H. Atayan emphasized a superior level of customer service and the benefits of the company's commitment to facilities and geographic reach.
• Atayan noted the company is actively seeking strategic acquisition opportunities for convenience and foodservice distributors who align with the company's customer-focused philosophy.
• President and COO Andrew C. Plummer highlighted the strategic benefit of efficient product delivery in an era of rising costs and the ability to service customers across multiple time zones.
• CFO Charles J. Schmaderer stated the company continues to focus on managing the balance sheet and maximizing liquidity.
• Management expressed pleasure in divesting two facilities in the third quarter to realize greater operating efficiency.

Other Key Points

• The company divested two facilities during the third quarter to improve operating efficiency.
• A gain on the sale of real estate of $1.8 million was recorded in the quarter.
• The company issued shares for a stock split during the nine-month period ended June 30, 2026.
• The company redeemed and distributed $7.5 million to non-controlling interests during the nine-month period.
• The company acquired Arrowrock Supply in the prior year period (nine months ended June 30, 2025) for $6.1 million, with no such acquisition in the current period.
• The company serves 34 states from 13 distribution centers located in Colorado, Idaho, Illinois, Indiana, Minnesota, Missouri, Nebraska, Ohio, South Dakota, Tennessee, and West Virginia.