Amcon Distributing Co 10-Q for FY2026 Q3

Amcon Distributing Co (DIT)

10-Q 2026-08-05 For: 2026-06-30

Added on August 05, 2026

About this 10-Q

Amcon Distributing Co filed this 10-Q on August 5, 2026, covering the quarter ended June 30, 2026 (FY2026 Q3).

Headline figures

Quarter ended June 30, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $835.34M; up 12.9% from $739.62M a year earlier
Net income: $2.69M; up 103.8% from net income of $1.32M a year earlier
Diluted EPS: $2.85; up 100.7% from $1.42 a year earlier

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Delaware		47-0702918
(State or other jurisdiction		(I.R.S. Employer
of incorporation or organization)		Identification No.)

7405 Irvington Road, Omaha NE		68122
(Address of principal executive offices)		(Zip code)


Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 Par Value	DIT	NYSE American

Large accelerated filer ◻	Accelerated filer ◻	Non-accelerated filer ⌧

Smaller reporting company ⌧	Emerging growth company ◻


June 30, 2026	PAGE

PART I — FINANCIAL INFORMATION

Item 1. Financial Statements:

Condensed consolidated balance sheets at June 30, 2026 (unaudited) and September 30, 2025	3

Condensed consolidated unaudited statements of operations for the three and nine months ended June 30, 2026 and 2025	4

Condensed consolidated unaudited statements of shareholders’ equity for the three and nine months ended June 30, 2026 and 2025	5

Condensed consolidated unaudited statements of cash flows for the nine months ended June 30, 2026 and 2025	6

Notes to condensed consolidated unaudited financial statements	7

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	15

Item 3. Quantitative and Qualitative Disclosures About Market Risk	23

Item 4. Controls and Procedures	24

PART II — OTHER INFORMATION

Item 1. Legal Proceedings	25

Item 1A. Risk Factors	25

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	25

Item 3. Defaults Upon Senior Securities	25

Item 4. Mine Safety Disclosures	25

Item 5. Other Information	25

Item 6. Exhibits	26


		June			September
		2026			2025
		(Unaudited)
ASSETS
Current assets:
Cash		$	636,644		$	744,613
Accounts receivable, less allowance for credit losses of $2.7 million at June 2026 and $2.4 million at September 2025			77,799,572			73,192,069
Inventories, net			153,611,733			153,276,545
Income taxes receivable			—			140,986
Prepaid expenses and other current assets			17,199,541			12,150,645
Total current assets			249,247,490			239,504,858

Property and equipment, net			108,959,374			107,844,655
Operating lease right-of-use assets, net			27,859,940			30,488,841
Goodwill			5,778,325			5,778,325
Other intangible assets, net			3,892,581			4,240,359
Other assets			3,587,673			3,231,488
Total assets		$	399,325,383		$	391,088,526

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	56,103,868		$	69,532,355
Accrued expenses			15,978,173			15,459,406
Accrued wages, salaries and bonuses			5,090,221			6,745,698
Income taxes payable			996,840			—
Current operating lease liabilities			7,666,894			7,862,117
Current maturities of long-term debt			4,854,777			5,471,310
Current mandatorily redeemable non-controlling interest			—			7,020,895
Total current liabilities			90,690,773			112,091,781

Credit facilities			160,766,169			126,804,775
Deferred income tax liability, net			3,102,139			4,048,070
Long-term operating lease liabilities			20,364,983			22,845,456
Long-term debt, less current maturities			7,478,293			11,033,949
Other long-term liabilities			1,437,230			1,193,081

Shareholders’ equity:
Preferred stock, $.01 par value, 1,000,000 shares authorized			—			—
Common stock, $.01 par value, 3,000,000 shares authorized, 976,028 shares outstanding at June 2026 and 953,378 shares outstanding at September 2025			13,203			9,799
Additional paid-in capital			38,634,508			36,991,031
Retained earnings			109,243,343			108,475,842
Treasury stock at cost			(32,405,258)			(32,405,258)
Total shareholders’ equity			115,485,796			113,071,414
Total liabilities and shareholders’ equity		$	399,325,383		$	391,088,526


⌧	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

	For the quarterly period ended June 30, 2026


◻	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

	For the transition period from ___________to _________


		For the three months ended June					For the nine months ended June
		2026			2025		2026		2025
Sales (including excise taxes of $157.7 million and $141.7 million, and $438.8 and $411.2 million, respectively)		$	835,340,185		$	739,615,416	$	2,281,047,956	$	2,070,391,760
Cost of sales			785,535,765			690,000,517		2,139,706,010		1,930,855,424
Gross profit			49,804,420			49,614,899		141,341,946		139,536,336
Selling, general and administrative expenses			43,013,403			42,529,118		125,988,512		123,224,702
Depreciation and amortization			2,338,431			2,222,243		7,342,674		7,315,871
Operating expenses			45,351,834			44,751,361		133,331,186		130,540,573
Gain on sales of real estate			(1,796,723)			—		(1,796,723)		—
			43,555,111			44,751,361		131,534,463		130,540,573
Operating income			6,249,309			4,863,538		9,807,483		8,995,763

Other expense (income):
Interest expense			2,590,977			2,671,004		7,480,651		7,784,032
Change in fair value of mandatorily redeemable non-controlling interest			—			195,750		438,240		663,418
Other income, net			(43,234)			(111,763)		(249,457)		(279,693)
			2,547,743			2,754,991		7,669,434		8,167,757
Income from operations before income taxes			3,701,566			2,108,547		2,138,049		828,006
Income tax expense			1,015,000			790,000		833,000		751,000
Net income available to common shareholders		$	2,686,566		$	1,318,547	$	1,305,049	$	77,006

Basic earnings per share available to common shareholders		$	2.89		$	1.43	$	1.41	$	0.08
Diluted earnings per share available to common shareholders		$	2.85		$	1.42	$	1.40	$	0.08

Basic weighted average shares outstanding			930,727			922,857		928,846		920,866
Diluted weighted average shares outstanding			943,918			926,551		934,865		924,387

Dividends paid per common share		$	0.12		$	0.12	$	0.55	$	0.55


												Additional
		Common Stock					Treasury Stock					Paid-in			Retained
		Shares		Amount			Shares		Amount			Capital			Earnings			Total
THREE MONTHS ENDED JUNE 2025
Balance, April 1, 2025		1,297,814		$	9,799		(329,656)		$	(31,272,163)		$	35,715,308		$	106,897,928		$	111,350,872
Dividends on common stock, $0.12 per share		—			—		—			—			—			(116,183)			(116,183)
Compensation expense related to equity-based awards		—			—		—			—			637,861			—			637,861
Net income available to common shareholders		—			—		—			—			—			1,318,547			1,318,547
Balance, June 30, 2025		1,297,814		$	9,799		(329,656)		$	(31,272,163)		$	36,353,169		$	108,100,292		$	113,191,097

THREE MONTHS ENDED JUNE 2026
Balance, April 1, 2026		1,320,464		$	13,203		(344,436)		$	(32,405,258)		$	38,085,548		$	106,673,900		$	112,367,393
Dividends on common stock, $0.12 per share		—			—		—			—			—			(117,123)			(117,123)
Compensation expense related to equity-based awards		—			—		—			—			548,960			—			548,960
Net income available to common shareholders		—			—		—			—			—			2,686,566			2,686,566
Balance, June 30, 2026		1,320,464		$	13,203		(344,436)		$	(32,405,258)		$	38,634,508		$	109,243,343		$	115,485,796


	For the Three Months Ended June 30,
	2026		2025
Fair value, beginning of period	$	7,459,135	$	8,679,168
Redemption of non-controlling interests		(828,000)		(1,812,558)
Distributions to non-controlling interest		(6,631,135)		(148,852)
Change in fair value		—		195,750
Fair value, end of period	$	—	$	6,913,508


	For the Nine Months Ended June 30,
	2026		2025
Fair value, beginning of period	$	7,020,895	$	8,211,500
Redemption of non-controlling interests		(828,000)		(1,812,558)
Distributions to non-controlling interest		(6,631,135)		(148,852)
Change in fair value		438,240		663,418
Fair value, end of period	$	—	$	6,913,508


		Wholesale			Retail
		Segment			Segment			Other			Consolidated
THREE MONTHS ENDED JUNE 2026
External revenue:
Cigarettes		$	536,626,746		$	—		$	—		$	536,626,746
Tobacco			150,098,380			—			—			150,098,380
Confectionery			52,221,227			—			—			52,221,227
Health food			—			10,684,609			—			10,684,609
Foodservice & other			85,709,223			—			—			85,709,223
Total external revenue			824,655,576			10,684,609			—			835,340,185
Cost of sales			778,659,407			6,876,358			—			785,535,765
Selling, general and administrative expenses			36,506,008			3,795,291			2,712,104			43,013,403
Depreciation			2,003,618			218,887			—			2,222,505
Amortization			115,926			—			—			115,926
Gain on sales of real estate			(1,796,723)			—			—			(1,796,723)
Operating income (loss)			9,167,340			(205,926)			(2,712,105)			6,249,309
Interest expense			—			—			2,590,977			2,590,977
Income (loss) from operations before taxes			9,182,499			(177,853)			(5,303,080)			3,701,566
Total assets			380,806,059			17,573,899			945,425			399,325,383
Capital expenditures			2,088,452			144,955			—			2,233,407


	2026			2025			Incr (Decr)		% Change
CONSOLIDATED:
Sales (1)	$	835,340,185		$	739,615,416		$	95,724,769	12.9
Cost of sales		785,535,765			690,000,517			95,535,248	13.8
Gross profit		49,804,420			49,614,899			189,521	0.4
Gross profit percentage		6.0	%		6.7	%

Operating expense	$	45,351,834		$	44,751,361		$	600,473	1.3
Gain on sales of real estate		(1,796,723)			—			(1,796,723)	100.0
Operating income		6,249,309			4,863,538			1,385,771	28.5
Interest expense		2,590,977			2,671,004			(80,027)	(3.0)
Change in fair value of mandatorily redeemable non-controlling interest		—			195,750			(195,750)	(100.0)
Income tax expense		1,015,000			790,000			225,000	28.5
Net income available to common shareholders		2,686,566			1,318,547			1,368,019	103.8

BUSINESS SEGMENTS:
Wholesale
Sales	$	824,655,576		$	728,284,897		$	96,370,679	13.2
Gross profit		45,996,169			45,457,986			538,183	1.2
Gross profit percentage		5.6	%		6.2	%
Retail
Sales	$	10,684,609		$	11,330,519		$	(645,910)	(5.7)
Gross profit		3,808,251			4,156,913			(348,662)	(8.4)
Gross profit percentage		35.6	%		36.7	%



	31.1	Certification by Christopher H. Atayan, Chief Executive Officer and Chairman, pursuant to section 302 of the Sarbanes-Oxley Act

	31.2	Certification by Charles J. Schmaderer, Vice President, Chief Financial Officer and Secretary, pursuant to section 302 of the Sarbanes-Oxley Act

	32.1	Certification by Christopher H. Atayan, Chief Executive Officer and Chairman, furnished pursuant to section 906 of the Sarbanes-Oxley Act

	32.2	Certification by Charles J. Schmaderer, Vice President, Chief Financial Officer and Secretary, furnished pursuant to section 906 of the Sarbanes-Oxley Act

	101	Inline XBRL Interactive Data File (filed herewith electronically)

	104	Cover Page Interactive Data File – formatted in Inline XBRL and included in Exhibit 101

	AMCON DISTRIBUTING COMPANY
	(registrant)

Date: August 5, 2026	/s/ Christopher H. Atayan
	Christopher H. Atayan,
	Chief Executive Officer and Chairman

Date: August 5, 2026	/s/ Charles J. Schmaderer
	Charles J. Schmaderer,
	Vice President, Chief Financial Officer and Secretary
	(Principal Financial and Accounting Officer)


		June			June
		2026			2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income available to common shareholders		$	1,305,049		$	77,006
Adjustments to reconcile net income available to common shareholders to net cash flows from (used in) operating activities:
Depreciation			6,994,896			6,924,921
Amortization			347,778			390,950
Gain on sales of real estate			(1,796,723)			—
Gain on sales of property and equipment			(94,394)			(83,186)
Equity-based compensation			1,646,881			1,913,585
Deferred income taxes			(945,931)			(1,049,698)
Provision for credit losses			326,000			289,549
Inventory allowance			33,445			(108,194)
Change in fair value of contingent consideration			—			(1,453,452)
Change in fair value of mandatorily redeemable non-controlling interest			438,240			663,418
Changes in assets and liabilities, net of effects of business combinations:
Accounts receivable			(4,933,503)			(8,471,600)
Inventories			(368,633)			(1,924,234)
Prepaid and other current assets			(5,048,896)			(1,998,163)
Other assets			(356,185)			(255,431)
Accounts payable			(13,645,498)			(7,669,560)
Accrued expenses and accrued wages, salaries and bonuses			(1,183,505)			(1,068,207)
Other long-term liabilities			244,149			400,606
Income taxes payable and receivable			1,137,826			950,130
Net cash flows from (used in) operating activities			(15,899,004)			(12,471,560)

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment			(11,749,261)			(8,238,960)
Proceeds from sales of real estate			5,573,241			—
Proceeds from sales of property and equipment			174,533			106,163
Acquisition of Arrowrock Supply			—			(6,131,527)
Net cash flows from (used in) investing activities			(6,001,487)			(14,264,324)

CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under revolving credit facilities			2,163,783,506			1,929,823,754
Repayments under revolving credit facilities			(2,129,822,112)			(1,896,504,987)
Principal payments on long-term debt			(4,172,189)			(3,938,660)
Dividends on common stock			(537,548)			(529,279)
Redemption and distributions to non-controlling interest			(7,459,135)			(1,961,410)


		June			September
		2026			2025
Customer lists (Wholesale Segment) (less accumulated amortization of $0.9 million at June 2026 and $0.7 million at September 2025)		$	2,593,617		$	2,766,216
Non-competition agreements (Wholesale Segment) (less accumulated amortization of $0.3 million at June 2026 and $0.3 million at September 2025)			30,083			44,333
Tradename (Wholesale Segment) (less accumulated amortization of $0.7 million at June 2026 and $0.6 million at September 2025)			768,881			929,810
Trademarks and tradenames (Retail Segment)			500,000			500,000
		$	3,892,581		$	4,240,359


		June
		2026
Fiscal 2026 (1)		$	115,925
Fiscal 2027			463,703
Fiscal 2028			451,037
Fiscal 2029			444,703
Fiscal 2030			301,656
Fiscal 2031 and thereafter			1,615,557
		$	3,392,581

July
Date: August 5, 2026	/s/ Christopher H. Atayan
	Christopher H. Atayan,
	Chief Executive Officer and Chairman

Ju
Date: August 5, 2026	/s/ Christopher H. Atayan
	Christopher H. Atayan
	Title: Chief Executive Officer and Chairman

Date: August 5, 2026	/s/ Charles J. Schmaderer
	Charles J. Schmaderer
	Title: Vice President, Chief Financial Officer and Secretary