OMAHA - AMCON Distributing Company (NYSE American: DIT), a prominent convenience and food service distributor, has announced the acquisition of a new distribution center in Colorado City, Colorado. This development marks a considerable growth in the company's operational capabilities, particularly aimed at improving service in the Rocky Mountain, Intermountain, and Southwest regions.
The newly acquired facility spans 249,200 square feet and is situated on a 38-acre plot. It boasts substantial refrigerated and frozen storage, refrigerated docks, and ample parking, with additional space allocated for potential future expansions. The site's certifications include I-2 (Heavy Industrial) and Level 1 Certified Food Facility, indicating its readiness to handle a wide array of food distribution requirements.
Christopher H. Atayan, Chairman and CEO of AMCON, emphasized the company's investment in the facility to augment the frozen and refrigerated capabilities, supporting the company's expanding food service initiatives. Atayan highlighted the collaboration with the Southern Colorado Economic Development District (SCEDD) to become a leading employer in Pueblo County and contribute to the area's economic development.
Andrew C. Plummer, President and COO of AMCON, pointed out that the strategic location and the facility's features are in line with the company's geographical growth plans and will significantly enhance distribution services. The facility is expected to cater to a diverse set of needs across several markets, including Colorado, Utah, New Mexico, Texas, Oklahoma Panhandle, and Western Kansas.
AMCON and its subsidiaries, Team Sledd, LLC, and Henry's Foods, Inc., distribute a wide range of consumer products. The company also operates fifteen health and natural product retail stores through its Healthy Edge Retail Group in the Midwest and Florida.
The information is based on a press release statement from AMCON Distributing Company.
InvestingPro Insights
As AMCON Distributing Company (NYSE American: DIT) advances its strategic expansion with the acquisition of a new distribution center, investors are observing the company's financial health and market position. The latest data from InvestingPro reveals a nuanced picture of AMCON's performance and prospects.
An InvestingPro Tip indicates that AMCON has maintained dividend payments for 17 consecutive years, reflecting a commitment to returning value to shareholders. This consistency is a positive signal for investors looking for stable income streams, especially in the context of AMCON's geographical expansion and operational investments.
InvestingPro Data highlights a robust revenue growth of 23.74% over the last twelve months as of Q1 2024, showcasing the company's ability to increase its sales amidst its expansion efforts. Furthermore, the company's Price / Book ratio stands at 1.19, suggesting that the stock may be reasonably valued in relation to the company's net asset value.
Despite a notable drop in dividend growth over the last twelve months, the company's strong return over the last five years, as mentioned in another InvestingPro Tip, underscores its overall growth trajectory and potential for long-term investment returns.
For readers interested in a deeper analysis, there are additional InvestingPro Tips available, which can provide further insights into AMCON's financial metrics and market performance. To explore these tips and make more informed investment decisions, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.