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AMCON Distributing Company$92.00$.40.44%

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 AMCON Distributing Company Reports Fully Diluted Earnings Per Share of $8.59 for the Fiscal Year Ended September 30, 2015
   Friday, November 06, 2015 4:01:00 PM ET

AMCON Distributing Company ("AMCON") (NYSE MKT:DIT), an Omaha, Nebraska based consumer products company is pleased to announce fully diluted earnings per share of $8.59 on net income available to common shareholders of $6.2 million for the fiscal year ended September 30, 2015. AMCON earned $2.73 per fully diluted share on net income available to common shareholders of $2.0 million for the fourth fiscal quarter ended September 30, 2015.

"We are pleased with our results for fiscal 2015. AMCON’s leadership position in the convenience distribution industry is a function of our relentless focus on customer service and reliability," said Christopher H. Atayan, AMCON’s Chairman and Chief Executive Officer. He further noted, "We believe our focused strategic plan and customer centric philosophy has enabled AMCON to navigate this challenging business environment. Our objective is to deliver attractive risk adjusted rates of return on the capital we employ. To support this objective we continue to invest in foodservice and information technology both of which drive the profitability of our customers."

The wholesale distribution segment reported revenues of $1.3 billion and operating income before depreciation and amortization of $18.3 million for fiscal 2015, and revenues and operating income before depreciation and amortization of $336.9 million and $5.3 million, respectively, for the fourth fiscal quarter of fiscal 2015. The retail health food segment reported revenues of $31.3 million and operating income before depreciation and amortization of $1.1 million for fiscal 2015, and revenue of $7.6 million and operating income before depreciation and amortization of $0.2 million for the fourth fiscal quarter of 2015.

"Our emphasis on building long term relationships continues to provide us with a significant competitive advantage," said Kathleen Evans, President of AMCON’s Wholesale Distribution Segment. Evans continued, "This is clearly evident based on our positive fall trade show response which will provide considerable momentum as we enter fiscal 2016. We are actively working with our customers to expand our service territory as they grow."

"The Retail Health Food industry continues to grow. However, with this growth there has been substantial competition enter our markets which has pressured revenues," said Eric Hinkefent, President of AMCON’s Retail Health Food segment. "We have taken an aggressive approach to rationalize our operating expenses in light of the competitive environment and are looking at alternative ways to maintain our margins," added Hinkefent.

"We are very focused on increasing our shareholders’ equity per share, maintaining high levels of balance sheet liquidity and generating free cash flow. At September 30, 2015, our shareholders’ equity was $61.4 million, resulting in adjusted book value per share of $88.23. We turned our inventory twenty-three times and consolidated debt was $24.6 million. At its lowest point during fiscal 2015 our consolidated debt was $12.6 million," said Andrew Plummer, AMCON’s Chief Financial Officer. "We continue to place a high priority on the development of information technology for internal and external purposes. These are important investments in the future of our business. In addition, we are exploring additional upgrades and enhancements to our facilities system wide," added Plummer.

AMCON is a leading wholesale distributor of consumer products, including beverages, candy, tobacco, groceries, foodservice, frozen and chilled foods, and health and beauty care products with locations in Illinois, Missouri, Nebraska, North Dakota, South Dakota and Tennessee. AMCON also operates sixteen (16) health and natural product retail stores in the Midwest and Florida. The retail stores operate under the names Chamberlin’s Market & Cafe www.chamberlins.com and Akin’s Natural Foods Market www.akins.com

This news release contains forward-looking statements that are subject to risks and uncertainties and which reflect management’s current beliefs and estimates of future economic circumstances, industry conditions, Company performance and financial results. A number of factors could affect the future results of the Company and could cause those results to differ materially from those expressed in the Company’s forward-looking statements including, without limitation, availability of sufficient cash resources to conduct its business and meet its capital expenditures needs and the other factors described under Item 1.A. of the Company’s Annual Report on Form 10-K. Moreover, past financial performance should not be considered a reliable indicator of future performance. Accordingly, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 with respect to all such forward-looking statements.

Visit AMCON Distributing Company’s web site at: www.amcon.com

 
                                                                                            AMCON Distributing Company and Subsidiaries
 
                                                                                                    CONSOLIDATED BALANCE SHEETS
                                                                          
                                                                                                                                                                    September 30,
                                                                                                                 ------------------------------------------------------------------------------------------------------------------
                                                                                                                                 2015                                    2014
                                                                                                                 ------------------------------------                                          ------------------------------------
                                ASSETS
Current assets:
   Cash                                                                                                                $219,536                                                                       $99,922
   Accounts receivable, less allowance for doubtful accounts of $0.9                                                 31,866,787                                                                    33,286,932
   million at 2015 and $0.8 million at 2014
   Inventories, net                                                                                                  60,793,478                                                                    43,635,266
   Deferred income taxes                                                                                              1,553,726                                                                     1,606,168
   Income taxes receivable                                                                                              113,238                                                                --
   Prepaid and other current assets                                                                                   2,125,908                                                  5,034,570  
                                                                                                                 -------------- --------------------                                           -------------- --------------------
      Total current assets                                                                                           96,672,673                                                                    83,662,858
                                                                                                                                                                                                               
Property and equipment, net                                                                                          12,753,145                                                                    13,763,140
Goodwill                                                                                                              6,349,827                                                                     6,349,827
Other intangible assets, net                                                                                          4,090,978                                                                     4,455,978
Other assets                                                                                                            317,184                                                    448,149  
                                                                                                                 -------------- --------------------                                           -------------- --------------------
                                                                                                                   $120,183,807                                               $108,679,952  
                                                                                                                 ============== ====================                                           ============== ====================
    LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
   Accounts payable                                                                                                 $17,044,726                                                                   $16,412,895
   Accrued expenses                                                                                                   7,224,963                                                                     6,891,308
   Accrued wages, salaries and bonuses                                                                                3,282,354                                                                     2,647,969
   Income taxes payable                                                                                          --                                                                     1,603,614
   Current maturities of long-term debt                                                                                 351,383                                                    341,190  
                                                                                                                 -------------- --------------------                                           -------------- --------------------
      Total current liabilities                                                                                      27,903,426                                                                    27,896,976
                                                                                                                                                                                                               
Credit facility                                                                                                      20,902,207                                                                    15,081,783
Deferred income taxes                                                                                                 3,696,098                                                                     3,484,204
Long-term debt, less current maturities                                                                               3,384,319                                                                     3,735,702
Other long-term liabilities                                                                                              34,860                                                                       139,003
Series A cumulative, convertible preferred stock, $.01 par value                                                      2,500,000                                                                     2,500,000
100,000 shares authorized and issued, and a total liquidation
preference of $2.5 million at both September 2015 and September 2014
Series B cumulative, convertible preferred stock, $.01 par value                                                        400,000                                                                       400,000
80,000 shares authorized, 16,000 shares issued and outstanding at
September 30, 2015 and September 30, 2014, and a total liquidation
preference of $0.4 million at both September 2015 and September 2014
                                                                                                                                                                                                
Commitments and contingencies
                                                                                                                                                                                                
Shareholders’ equity:
   Preferred stock, $0.01 par value, 1,000,000 shares authorized,                                                --                                                                --
   116,000 shares outstanding and issued in Series A and B referred to
   above
   Common stock, $0.01 par value, 3,000,000 shares authorized, 621,104                                                    7,061                                                                         6,677
   shares issued and outstanding at September 2015 and 602,411 shares
   issued and outstanding at September 2014
   Additional paid-in capital                                                                                        15,509,199                                                                    13,571,909
   Retained earnings                                                                                                 53,527,606                                                                    47,829,201
   Treasury stock at cost                                                                                            (7,680,969 )                                                                  (5,965,503 )
                                                                                                                 -------------- --------------------                                           -------------- --------------------
      Total shareholders’ equity                                                          61,362,897                                                 55,442,284  
                                                                                                                 -------------- --------------------                                           -------------- --------------------
                                                                                                                   $120,183,807                                               $108,679,952  
                                                                                                                 ============== ====================                                           ============== ====================
                                                                                                                                                                                                
 
                                                                                           AMCON Distributing Company and Subsidiaries
 
                                                                                              CONSOLIDATED STATEMENTS OF OPERATIONS
                                                                       
                                                                                                                                                         Fiscal Years Ended September
                                                                                                              ------------------------------------------------------------------------------------------------------------------
                                                                                                                              2015                                    2014
                                                                                                              ------------------------------------                                          ------------------------------------
Sales (including excise taxes of $390.8 million and $387.8 million,                                           $1,281,855,896                                                                $1,236,755,388
respectively)
Cost of sales                                                                                                  1,205,287,311                                              1,160,248,793  
                                                                                                              -------------- --------------------                                           -------------- --------------------
Gross profit                                                                                                      76,568,585                                                 76,506,595  
                                                                                                              -------------- --------------------                                           -------------- --------------------
Selling, general and administrative expenses                                                                      62,769,438                                                                    64,723,824
Depreciation and amortization                                                                                      2,264,184                                                  2,386,402  
                                                                                                              -------------- --------------------                                           -------------- --------------------
                                                                                                                  65,033,622                                                 67,110,226  
                                                                                                              -------------- --------------------                                           -------------- --------------------
Operating income                                                                                                  11,534,963                                                                     9,396,369
Other expense (income):
   Interest expense                                                                                                  841,739                                                                       935,360
   Other (income), net                                                                                               (69,054 )                                                                    (130,519 )
                                                                                                              -------------- --------------------                                           -------------- --------------------
                                                                                                                     772,685                                                    804,841  
                                                                                                              -------------- --------------------                                           -------------- --------------------
Income from operations before income tax expense                                                                  10,762,278                                                                     8,591,528
Income tax expense                                                                                                 4,401,000                                                  3,632,000  
                                                                                                              -------------- --------------------                                           -------------- --------------------
Net income                                                                                                         6,361,278                                                                     4,959,528
Preferred stock dividend requirements                                                                               (195,105 )                                                                    (195,105 )
                                                                                                              -------------- --------------------                                           -------------- --------------------
Net income available to common shareholders                                                                       $6,166,173                                                 $4,764,423  
                                                                                                              ============== ====================                                           ============== ====================
                                                                                                                                                                                                            
                                                                                                                       $9.96                                                                         $7.81
   Basic earnings per share available to common shareholders:
                                                                                                                                                                                                            
                                                                                                                       $8.59                                                                         $6.75
   Diluted earnings per share available to common shareholders:
                                                                                                                                                                                                            
                                                                                                                     619,295                                                                       610,392
   Basic weighted average shares outstanding
   Diluted weighted average shares outstanding                                                                       740,233                                                                       735,227
                                                                                                                                                                                             
 
                                                                                             AMCON Distributing Company and Subsidiaries
 
                                                                                                CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                                           
                                                                                                                                                             Fiscal Years Ended September
                                                                                                                  ------------------------------------------------------------------------------------------------------------------
                                                                                                                                  2015                                    2014
                                                                                                                  ------------------------------------                                          ------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income                                                                                                            $6,361,278                                                                    $4,959,528
Adjustments to reconcile income from operations to net cash flows
from operating activities:
   Depreciation                                                                                                        1,899,184                                                                     2,021,402
   Amortization                                                                                                          365,000                                                                       365,000
   (Gain) loss on sale of property and equipment                                                                          76,546                                                                       (59,449 )
   Equity-based compensation                                                                                           1,224,661                                                                     1,406,033
   Net excess tax benefit on equity-based awards                                                                        (320,000 )                                                              --
   Deferred income taxes                                                                                                 264,336                                                                       382,959
   Provision (recoveries) for losses on doubtful accounts                                                                 82,000                                                                      (317,000 )
   Provision for losses on inventory obsolescence                                                                         69,324                                                                        44,695
   Other                                                                                                                  (8,045 )                                                                      (8,045 )
Changes in assets and liabilities:
   Accounts receivable                                                                                                 1,338,145                                                                    (4,586,727 )
   Inventories                                                                                                       (17,227,536 )                                                                   3,403,156
   Prepaid and other current assets                                                                                    2,908,662                                                                       (32,578 )
   Other assets                                                                                                          130,965                                                                        49,733
   Accounts payable                                                                                                      643,487                                                                       591,478
   Accrued expenses and accrued wages, salaries and bonuses                                                            1,028,560                                                                      (238,994 )
   Income taxes payable                                                                                               (1,396,852 )                                                                    (318,737 )
                                                                                                                  -------------- --------------------                                           -------------- --------------------
Net cash flows from operating activities                                                                              (2,560,285 )                                                                   7,662,454  
                                                                                                                  -------------- --------------------                                           -------------- --------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
   Purchase of property and equipment                                                                                 (1,018,391 )                                                                  (2,796,326 )
   Proceeds from sales of property and equipment                                                                          41,000                                                                       192,373
   Acquisitions                                                                                                   --                                                   (996,803 )
                                                                                                                  -------------- --------------------                                           -------------- --------------------
Net cash flows from investing activities                                                                                (977,391 )                                                                  (3,600,756 )
                                                                                                                  -------------- --------------------                                           -------------- --------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
   Net borrowings on bank credit agreements                                                                            5,820,424                                                                       240,071
   Principal payments on long-term debt                                                                                 (341,190 )                                                                    (998,788 )
   Proceeds from the exercise of stock options                                                                           450,000                                                                --
   Repurchase of common stock                                                                                         (1,715,466 )                                                                  (2,664,547 )
   Net excess tax benefit on equity-based awards                                                                         320,000                                                                --
   Dividends paid on convertible preferred stock                                                                        (195,105 )                                                                    (195,105 )
   Dividends on common stock                                                                                            (467,768 )                                                                    (468,034 )
   Withholdings on the exercise of equity-based awards                                                                  (213,605 )                                                                    (150,409 )
                                                                                                                  -------------- --------------------                                           -------------- --------------------
Net cash flow from financing activities                                                                                3,657,290                                                 (4,236,812 )
                                                                                                                  -------------- --------------------                                           -------------- --------------------
Net change in cash                                                                                                       119,614                                                                      (175,114 )
Cash, beginning of year                                                                                                   99,922                                                    275,036  
                                                                                                                  -------------- --------------------                                           -------------- --------------------
Cash, end of year                                                                                                       $219,536                                                    $99,922  
                                                                                                                  ============== ====================                                           ============== ====================
                                                                                                                                                                                                 
Supplemental disclosure of cash flow information:
   Cash paid during the year for interest                                                                               $828,005                                                                      $946,881
   Cash paid during the year for income taxes                                                                          5,533,516                                                                     3,567,778
                                                                                                                                                                                                 
Supplemental disclosure of non-cash information:
   Equipment acquisitions classified as accounts payable                                                                 $23,329                                                                       $34,985
   Issuance of common stock in connection with the vesting and exercise                                                1,240,842                                                                     1,154,869
   of equity-based awards
                                                                                                                                                                                                                
 
                                                                                                                                                                                                 AMCON Distributing Company and Subsidiaries
                                                                                                                                                                                                                                 
FISCAL YEAR 2015
                                                                                                                                                                                                                                                                                                                                                                                           
(dollars in thousands, except per share data)                                                                                First                                                                                      Second                                                                                       Third                                                                                      Fourth
                                                                                                      --------------------------------------------------                                          --------------------------------------------------                                          --------------------------------------------------                                          --------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                           
Sales                                                                                                 $                    315,433                                                                $                    287,444                                                                $                    334,457                                                                $                    344,522
                                                                                                                                                                                                                                                                                                                                                                                                                        
Gross profit                                                                                             19,527                                                17,733                                                19,499                                                19,810  
                                                                                                      -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- ------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                        
Income from operations before income tax expense                                                          2,539                                                 1,498                                                 3,329                                                 3,396  
                                                                                                      -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- ------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                        
Net income                                                                                                                   1,546                                                                                         769                                                                                       1,996                                                                                       2,050
                                                                                                                                                                                                                                                                                                                                                                                                                        
Preferred stock dividend requirements                                                                       (49 )                                                                    (48 )                                                                    (49 )                                                                    (49 )
                                                                                                      -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- ------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                        
Net income available to common shareholders                                                           $                      1,497                                             $                        721                                             $                      1,947                                             $                      2,001  
                                                                                                      ==================== ======= ====================                                           ==================== ======= ====================                                           ==================== ======= ====================                                           ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                           
                                                                                                                                                                                                                                                                                                                                                                                                                        
Basic earnings per share available to common shareholders                                             $                       2.44                                             $                       1.17                                             $                       3.16                                             $                       3.16  
                                                                                                      ==================== ======= ====================                                           ==================== ======= ====================                                           ==================== ======= ====================                                           ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                        
Diluted earnings per share available to common shareholders                                           $                       2.11                                             $                       1.04                                             $                       2.69                                             $                       2.73  
                                                                                                      ==================== ======= ====================                                           ==================== ======= ====================                                           ==================== ======= ====================                                           ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                           
                                                                                                                                                                                                                                                                                                                                                                                           
                                                                                                                                                                                                                                                                                                                                                                                           
FISCAL YEAR 2014
                                                                                                                                                                                                                                                                                                                                                                                           
(dollars in thousands, except per share data)                                                                                First                                                                                      Second                                                                                       Third                                                                                      Fourth
                                                                                                      --------------------------------------------------                                          --------------------------------------------------                                          --------------------------------------------------                                          --------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                           
Sales                                                                                                 $                    305,626                                                                $                    272,422                                                                $                    322,648                                                                $                    336,060
                                                                                                                                                                                                                                                                                                                                                                                                                        
Gross profit                                                                                             19,641                                                17,620                                                19,295                                                19,951  
                                                                                                      -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- ------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                        
Income from operations before income tax expense                                                          2,253                                                   995                                                 2,250                                                 3,093  
                                                                                                      -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- ------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                        
Net income                                                                                                                   1,288                                                                                         531                                                                                       1,260                                                                                       1,880
                                                                                                                                                                                                                                                                                                                                                                                                                        
Preferred stock dividend requirements                                                                       (49 )                                                                    (48 )                                                                    (49 )                                                                    (49 )
                                                                                                      -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- ------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                        
Net income available to common shareholders                                                           $                      1,239                                             $                        483                                             $                      1,211                                             $                      1,831  
                                                                                                      ==================== ======= ====================                                           ==================== ======= ====================                                           ==================== ======= ====================                                           ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                           
                                                                                                                                                                                                                                                                                                                                                                                                                        
Basic earnings per share available to common shareholders                                             $                       1.99                                             $                       0.79                                             $                       2.00                                             $                       3.04  
                                                                                                      ==================== ======= ====================                                           ==================== ======= ====================                                           ==================== ======= ====================                                           ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                        
Diluted earnings per share available to common shareholders                                           $                       1.73                                             $                       0.72                                             $                       1.73                                             $                       2.57  
                                                                                                      ==================== ======= ====================                                           ==================== ======= ====================                                           ==================== ======= ====================                                           ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                           

The Company’s quarterly earnings per share are based on weighted average shares outstanding for the quarter; therefore the sum of the quarters may not equal the full year earnings per share amount.

AMCON Distributing Company and Subsidiaries

GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures

The financial measure of adjusted book value per share included in this press release ("adjusted book value per share") has been determined by methods other than in accordance with U.S. generally accepted accounting principles ("GAAP"). Management believes that this non-GAAP financial measurement reflects an additional way of viewing aspects of the Company’s business that, when viewed together with its financial results computed in accordance with GAAP, provides a more complete understanding of factors affecting historical financial performance of the Company. This measure is important to investors interested in determining the amount of book value per share if all potentially dilutive shares were exercised or converted. This non-GAAP financial measurement is not intended to be a substitute for the comparable GAAP measurements and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP.

The Company has defined the non-GAAP financial measure of adjusted book value per share as follows:

-- "Adjusted book value per share" is defined as total shareholders’ equity increased by the impact of proceeds from the exercise of all stock options, conversion of convertible preferred stock and vesting of restricted stock units divided by total common shares outstanding plus common shares issuable upon the exercise of all stock options, conversion of convertible preferred stock and vesting of restricted stock units."

                                                                               
                                                                                                                                    September 2015
                                                                                                                      ----------------------------------------
Number of common shares outstanding at September 30, 2015                                                                                               621,104
Total shareholders’ equity at September 30, 2015                                           $                              61,362,897
                                                                                                                      -------------------- --------------------
                                                                                                                       
Book value per share at September 30, 2015                                                                            $                                   98.80
                                                                                                                       
                                                                                                                       
                                                                                                                                    September 2015
                                                                                                                      ----------------------------------------
Number of common shares outstanding at September 30, 2015                                                                                               621,104
Add: common shares potentially issuable for stock options,                                                                           149,785
convertible preferred stock, and unvested restricted stock units /1/
                                                                                                                      -------------------- --------------------
                                                                                                                                     770,889
                                                                                                                      ==================== ====================
                                                                                                                       
Total shareholders’ equity at September 30, 2015                                           $                              61,362,897
Equity impact if all potential common shares were converted /1/                                                                    6,651,906
                                                                                                                      -------------------- --------------------
                                                                                                                      $                              68,014,803
                                                                                                                      ==================== ====================
                                                                                                                       
Adjusted book value per share at September 30, 2015                                                                   $                                   88.23
                                                                                                                                            
     
-------------------- -------------------- --------------------
/1/                      Assumes the exercise of all vested and unvested stock options,
                                                               conversion of all preferred stock, and vesting of all outstanding
                                                               restricted stock units at September 30, 2015.
                                                                

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20151106005958r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20151106005958/en/

SOURCE: AMCON Distributing Company

AMCON Distributing Company 
Christopher H. Atayan, 402-331-3727


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