AI Analysis | Feedback

Here are 1-3 brief analogies for Amcon Distributing (DIT):

• A Sysco for convenience stores.
• A regional Whole Foods Market or Sprouts Farmers Market.

AI Analysis | Feedback

• Wholesale Distribution of Consumer Products: Provides a wide array of groceries, tobacco, candy, health and beauty care products, and general merchandise to convenience stores and other retailers.
• Retail Convenience Stores: Operates and supplies a network of convenience stores selling fuel, groceries, and other consumer goods directly to the public.

AI Analysis | Feedback

Amcon Distributing Company (symbol: DIT) primarily operates as a wholesale distributor, selling consumer products to other businesses.

While Amcon Distributing serves a broad customer base of over 5,000 retail outlets, its SEC filings state that no single customer accounts for 10% or more of its consolidated net sales. Consequently, there are no specific "major customer companies" with identifiable names or public stock symbols to list. Instead, its customer base in the wholesale distribution segment consists of various categories of retail establishments:

• Convenience stores
• Drug stores
• Grocery stores and other independent retail establishments

In addition to its wholesale distribution, Amcon also operates a small number of its own retail health food stores, but its primary business focus and revenue generation come from its wholesale distribution to the business categories listed above.

AI Analysis | Feedback

AI Analysis | Feedback

Christopher H. Atayan, Chairman and Chief Executive Officer

Mr. Atayan has served as Chairman and Chief Executive Officer of Amcon Distributing Company since 2008 and has been a Director of the company since 2004. He previously held the roles of Vice Chairman from 2006 to 2008 and Chief Corporate Officer from March 2006 to September 2006 at Amcon. Prior to his executive roles at Amcon, Mr. Atayan was the Senior Managing Director of Slusser Associates Inc from 1988 to 2020. He also serves as a Director of Eastek Holdings, LLC. His professional experience includes working at Goldman Sachs, PaineWebber, and Morgan Stanley.

Charles J. Schmaderer, Chief Financial Officer, Secretary, and Vice President

Mr. Schmaderer has been the Chief Financial Officer at Amcon Distributing Company since 2020. Before becoming CFO, he served as Corporate Controller from 2018 to 2020. He also held positions as Vice President of Financial Reporting, Assistant Secretary, and Director of Financial and SEC Reporting from 2006 to 2018. Mr. Schmaderer has been a key member of Amcon's financial team since 2006.

Andrew C. Plummer, President, Chief Operating Officer, and Director

Mr. Plummer has served as President, Chief Operating Officer, and Director of Amcon Distributing Company since 2018. He previously held the position of Chief Financial Officer from 2007 to 2020 and Secretary from 2007 to 2018. His earlier roles at the company included Acting Chief Financial Officer, Corporate Controller, and Manager of SEC Compliance from 2004 to 2007. Before joining Amcon, Mr. Plummer practiced public accounting for seven years, including five years as an Audit Manager at Deloitte and Touche, LLP. He also serves as President of Idaho Water 2009, Inc. Mr. Plummer is slated to chair the Convenience Distribution Association (CDA) for 2026.

AI Analysis | Feedback

The key risks to Amcon Distributing (DIT) are primarily centered around declining profitability due to escalating costs, a notable debt burden with insufficient interest payment coverage, and the ongoing threat of market disruption from online retail competition.

1. Declining Earnings and Eroding Profit Margins due to Elevated Operating and Product Costs: Amcon Distributing has experienced a significant decline in earnings, with a nearly 87% drop in earnings per share for the fiscal year ended September 30, 2025, compared to the prior year. This downturn is largely attributed to elevated operating expenses, increased cost of sales reflecting broader inflationary trends, and higher logistical costs. The company's profit margins have also decreased, with the convenience sector facing multi-year inflation that erodes margins and slows consumer spending.
2. High Debt and Inadequate Interest Coverage: A substantial risk for Amcon Distributing is its high debt levels, as indicated by interest payments not being well covered by earnings. Higher interest expenses contributed to a significant reduction in pre-tax income. As of March 31, 2025, the company's total liabilities increased to $280.6 million.
3. Competition and Market Disruption from Online Retailers: Amcon Distributing faces risks to both its brick-and-mortar retail and wholesale distribution businesses from the increasing popularity of online shopping formats, such as Amazon, which have the potential to further disrupt traditional sales channels.

AI Analysis | Feedback

AI Analysis | Feedback

Amcon Distributing (DIT) operates primarily in two segments: wholesale distribution and retail health food. The addressable markets for its main products and services, primarily within the United States, can be outlined as follows:

• U.S. Convenience Store and Food Distribution Market: Amcon Distributing is a significant player in the wholesale distribution of consumer products to various retail outlets, including convenience stores, grocery stores, liquor stores, drug stores, and tobacco shops, across numerous U.S. states. The company is recognized as the third-largest convenience distributor in the United States by territory covered. To provide context on market scale, major competitors in the broader U.S. food distribution market, which encompasses many of Amcon's wholesale offerings, include Sysco, with revenues of $82.03 billion, Performance Food Group ($64.96 billion), and US Foods Holding ($39.12 billion). For convenience store-specific distribution, McLane Co. Inc., a leading competitor, has revenues of $44 billion in grocery and foodservice supply chain solutions within the U.S.. Amcon's wholesale distribution segment reported revenues of $2.8 billion for fiscal year 2025.
• U.S. Beauty and Personal Care Products Market: Amcon Distributing also distributes health and beauty care products within its wholesale segment. Furthermore, its retail health food segment, operating stores under banners like Chamberlin's Natural Foods and Earth Origins Market, offers natural/organic groceries and dietary supplements, which often include personal care items. The U.S. beauty and personal care products market is estimated to be $130.25 billion in 2025 and is projected to grow to $154.35 billion by 2030. The mass segment of this market, which aligns with products often found in convenience and grocery stores, held 70.41% of the U.S. beauty and personal care products market size in 2024.

AI Analysis | Feedback

Here are 3-5 expected drivers of future revenue growth for Amcon Distributing (DIT) over the next 2-3 years:

1. Strategic Acquisitions and Integration: Amcon Distributing has seen sales growth driven by acquisitions, such as Arrowrock Supply, and actively seeks further strategic acquisition opportunities to align with its customer-focused approach and further the legacy of acquired enterprises. The company is focused on integrating recent acquisitions to optimize customer growth initiatives in various regions.
2. Price Increases: Revenue growth has been supported by price increases, particularly those implemented by cigarette manufacturers.
3. Expansion of Wholesale Distribution Network and Enhanced Foodservice Offerings: Amcon is pursuing a strategy to expand its distribution capacities and has increased its geographical footprint, becoming the third-largest convenience distributor in the U.S. by territory. The company has also enhanced its foodservice capabilities through subsidiaries like Henry's Foods and emphasizes a wide range of foodservice programs as part of its long-term strategy.
4. Growth in the Retail Health Food Segment: The retail health food segment has demonstrated strong performance, with an 11.1% increase in sales in Q3 2025. This segment contributed $44.5 million in revenues in fiscal 2025, an increase from $42.5 million in fiscal 2024.
5. Investment in Leading-Edge Technology Solutions: Amcon's long-term strategy includes providing leading-edge technology solutions to its customers. The company's proprietary technology suite and integrated advertising, design, print, and electronic display programs are designed to offer customers a competitive advantage.

AI Analysis | Feedback

Share Repurchases

• In fiscal year 2025, Amcon Distributing repurchased 9,853 shares for approximately $1.1 million.
• In October 2023, the company increased its equity buyback authorization by 2,363 shares, raising the total authorization to 106,049 shares.

Share Issuance

• Between November 6, 2024, and November 6, 2025, the number of common shares outstanding increased from 645,462 to 650,709.
• On October 28, 2025, CEO Christopher H. Atayan received a restricted stock award of 9,900 shares, vesting in three equal installments from October 2026 to October 2028.
• On October 28, 2025, President and COO Andrew C. Plummer received a restricted stock award of 2,050 shares, with vesting also scheduled in three equal installments from October 2026 to October 2028.

Outbound Investments

• In fiscal year 2024, Amcon Distributing completed the acquisitions of Burklund Distributors, Inc. and Richmond Master Distributors, Inc., which expanded its regional footprint and contributed $98.6 million in additional sales.
• In fiscal year 2025, the company acquired Arrowrock Supply.

Capital Expenditures

• For fiscal year 2024, capital expenditures totaled approximately $28.4 million, including investments in new distribution facilities.
• During fiscal year 2024, a new 200,000 square foot distribution facility in Springfield, Missouri, became operational.
• In fiscal year 2025, capital was invested to develop the 250,000 square foot distribution facility in Colorado City, Colorado, which was acquired in fiscal 2024, to support customer growth in the Intermountain Region.