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AMCON Distributing Company$90.50   

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 AMCON Distributing Company Reports Fully Diluted Earnings Per Share of $0.56 for the Quarter Ended June 30, 2017
   Tuesday, July 18, 2017 4:05:00 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 $0.56 on net income available to common shareholders of $0.4 million for our third fiscal quarter ended June 30, 2017.

"Both of the industries in which we operate are undergoing transformative changes based on a number of factors including increased competition, shifts in consumer shopping habits, and new technologies. These developments have resulted in consolidation across all segments of the food and convenience store supply chains including manufacturers, distributors, and retailers. Given this operating environment, we remain committed to our focused strategic plan which calls for ongoing investments in new programs, services, and technologies to enhance and support our leadership position in the convenience distribution industry," said Christopher H. Atayan, AMCON’s Chairman and Chief Executive Officer. He further noted, "We are actively seeking acquisitions that can benefit from our extensive platform of customer service. We are also looking carefully at a number of geographic growth opportunities as our customer base expands."

For the third fiscal quarter of 2017, our Wholesale Distribution Segment reported revenues of $326.5 million and operating income of $3.1 million. Our Retail Health Food Segment reported revenues of $6.4 million and an operating loss of $0.6 million for the same period.

"Convenience store operators are increasingly looking to AMCON for easy to use technology solutions that assist them in areas such as category and profitability management and to enhance efficiency. Additionally, interest in building new non-tobacco revenue streams continues to accelerate amongst our customer base," said Kathleen M. Evans, President of AMCON’s Wholesale Distribution segment. She further noted, "We are implementing the investments we’ve made in our trucking fleet and technology to further support our customers’ geographic growth."

"We are pleased with the recent extensive renovations and update to our store in Oviedo, Florida. Our management team is developing market driven enhancements to our core business model in order for us to compete in this highly challenging retail environment," said Clifford Ginn, President of AMCON’s Retail Health Food Segment. He further noted, "We are working diligently on building our next generation store in the Lakeland, Florida market."

"We actively manage our working capital and liquidity which provides AMCON the ability to respond quickly to the dynamic environments in which both of our business segments operate. This conservative approach provides us significant flexibility to act in the long term best interest of the many constituencies we serve. Both of our business segments are utilizing financial resources in the course of making the capital and operational investments necessary for long term competitive success," said Andrew C. Plummer, AMCON’s Chief Financial Officer. "We were pleased to close the June 30, 2017 quarter with shareholders’ equity of $67.3 million and consolidated debt of $13.4 million."

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 fifteen (15) 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
                                                                                               Condensed Consolidated Balance Sheets
                                                                                      June 30, 2017 and September 30, 2016
                                                                                                                                  
                                                                                                                     June                                                                        September
                                                                                                                     2017                                                                          2016
                                                                                           ---------------------------------------------------------                     ---------------------------------------------------------
                                                                                                                  (Unaudited)
ASSETS
---------------------------------------------------------------------
Current assets:
   Cash                                                                                                       $        121,790                                                              $        605,380
                                                                                                                    31,035,527                                                                    30,033,104
   Accounts receivable, less allowance for doubtful accounts of $0.7
   million at June 2017 and $0.7 million at September 2016
   Inventories, net                                                                                                 49,101,309                                                                    48,404,882
   Deferred income taxes                                                                                             1,352,383                                                                     1,441,919
   Income taxes receivable                                                                                             157,900                                                                       164,959
   Prepaid and other current assets                                                               7,836,179                               8,608,049  
                                                                                           -------------------- -------------- --------------------                      -------------------- -------------- --------------------
      Total current assets                                                                                          89,605,088                                                                    89,258,293
                                                                                                                                                                                               
Property and equipment, net                                                                                         12,867,402                                                                    12,607,877
Goodwill                                                                                                             6,349,827                                                                     6,349,827
Other intangible assets, net                                                                                         3,560,561                                                                     3,759,311
Other assets                                                                                        326,440                                 288,082  
                                                                                           -------------------- -------------- --------------------                      -------------------- -------------- --------------------
      Total assets                                                                                            $    112,709,318                                           $    112,263,390  
                                                                                           ==================== ============== ====================                      ==================== ============== ====================
LIABILITIES AND SHAREHOLDERS’ EQUITY
---------------------------------------------------------------------
Current liabilities:
   Accounts payable                                                                                           $     18,329,745                                                              $     18,164,983
   Accrued expenses                                                                                                  7,106,294                                                                     6,792,884
   Accrued wages, salaries and bonuses                                                                               2,415,122                                                                     3,580,996
   Current maturities of long-term debt                                                             370,803                                 362,495  
                                                                                           -------------------- -------------- --------------------                      -------------------- -------------- --------------------
      Total current liabilities                                                                                     28,221,964                                                                    28,901,358
                                                                                                                                                                                               
Credit facility                                                                                                     10,328,098                                                                    10,537,226
Deferred income taxes                                                                                                4,052,400                                                                     4,021,569
Long-term debt, less current maturities                                                                              2,742,485                                                                     3,021,824
Other long-term liabilities                                                                                             33,111                                                                        30,815
                                                                                                                                                                                               
Shareholders’ equity:
   Preferred stock, $.01 par value, 1,000,000 shares authorized                                                 --                                                                --
                                                                                                                         8,314                                                                         8,184
   Common stock, $.01 par value, 3,000,000 shares authorized, 678,938
   shares outstanding and issued at June 2017 and 677,057 shares
   outstanding and issued at September 2016
   Additional paid-in capital                                                                                       20,803,998                                                                    19,525,554
   Retained earnings                                                                                                60,033,389                                                                    58,693,241
   Treasury stock at cost                                                                       (13,514,441 )                                              (12,476,381 )
                                                                                           -------------------- -------------- --------------------                      -------------------- -------------- --------------------
      Total shareholders’ equity                                      67,331,260                              65,750,598  
                                                                                           -------------------- -------------- --------------------                      -------------------- -------------- --------------------
      Total liabilities and shareholders’ equity                                                              $    112,709,318                                           $    112,263,390  
                                                                                           ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                               
                                                                                                                                                                     AMCON Distributing Company and Subsidiaries
                                                                                                                                                              Condensed Consolidated Unaudited Statements of Operations
                                                                                                                                                             for the three and nine months ended June 30, 2017 and 2016
                                                                                                                                                                                                                                                 
                                                                                                                                          For the three months ended June                                                                                                                          For the nine months ended June
                                                                                       ------------------------------------------------------------------------------------------------------------------------------------                     ------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                 2017                                                                         2016                                                                        2017                                                                         2016
                                                                                       ---------------------------------------------------------                     ------------------------------------------------------                     ---------------------------------------------------------                     ------------------------------------------------------
Sales (including excise taxes of $95.1 million and $98.9 million,                                         $    332,842,200                                                              $ 333,398,723                                                              $    936,994,299                                                              $ 951,856,098
and $271.8 million and $284.9 million, respectively)
Cost of sales                                                                               314,818,453                          314,235,192                             883,180,664                          896,190,425  
                                                                                       -------------------- -------------- --------------------                      -------------------- ----------- --------------------                      -------------------- -------------- --------------------                      -------------------- ----------- --------------------
Gross profit                                                                                 18,023,747                           19,163,531                              53,813,635                           55,665,673  
                                                                                       -------------------- -------------- --------------------                      -------------------- ----------- --------------------                      -------------------- -------------- --------------------                      -------------------- ----------- --------------------
Selling, general and administrative expenses                                                                    16,587,055                                                                 15,335,808                                                                    48,105,878                                                                 45,951,300
Depreciation and amortization                                                                   474,890                              512,543                               1,531,292                            1,655,173  
                                                                                       -------------------- -------------- --------------------                      -------------------- ----------- --------------------                      -------------------- -------------- --------------------                      -------------------- ----------- --------------------
                                                                                             17,061,945                           15,848,351                              49,637,170                           47,606,473  
                                                                                       -------------------- -------------- --------------------                      -------------------- ----------- --------------------                      -------------------- -------------- --------------------                      -------------------- ----------- --------------------
Operating income                                                                                961,802                            3,315,180                               4,176,465                            8,059,200  
                                                                                       -------------------- -------------- --------------------                      -------------------- ----------- --------------------                      -------------------- -------------- --------------------                      -------------------- ----------- --------------------
                                                                                                                                                                                                                                                                                                                                                    
Other expense (income):
   Interest expense                                                                                                180,266                                                                    188,798                                                                       545,719                                                                    562,654
   Other (income), net                                                                          (16,513 )                                               (35,552 )                                                  (37,250 )                                               (98,634 )
                                                                                       -------------------- -------------- --------------------                      -------------------- ----------- --------------------                      -------------------- -------------- --------------------                      -------------------- ----------- --------------------
                                                                                                163,753                              153,246                                 508,469                              464,020  
                                                                                       -------------------- -------------- --------------------                      -------------------- ----------- --------------------                      -------------------- -------------- --------------------                      -------------------- ----------- --------------------
Income from operations before income tax expense                                                                   798,049                                                                  3,161,934                                                                     3,667,996                                                                  7,595,180
Income tax expense                                                                              413,000                            1,310,000                               1,748,000                            3,241,000  
                                                                                       -------------------- -------------- --------------------                      -------------------- ----------- --------------------                      -------------------- -------------- --------------------                      -------------------- ----------- --------------------
Net income                                                                                                         385,049                                                                  1,851,934                                                                     1,919,996                                                                  4,354,180
Preferred stock dividend requirements                                                    --                              (48,642 )                                           --                             (146,462 )
                                                                                       -------------------- -------------- --------------------                      -------------------- ----------- --------------------                      -------------------- -------------- --------------------                      -------------------- ----------- --------------------
Net income available to common shareholders                                                               $        385,049                                           $   1,803,292                                           $      1,919,996                                           $   4,207,718  
                                                                                       ==================== ============== ====================                      ==================== =========== ====================                      ==================== ============== ====================                      ==================== =========== ====================
                                                                                                                                                                                                                                                                                                                                                    
   Basic earnings per share available to common shareholders                                              $           0.57                                                              $        3.03                                                              $           2.82                                                              $        6.91
   Diluted earnings per share available to common shareholders                                            $           0.56                                                              $        2.62                                                              $           2.78                                                              $        6.07
                                                                                                                                                                                                                                                                                                                                                    
   Basic weighted average shares outstanding                                                                       678,938                                                                    596,112                                                                       679,858                                                                    609,240
   Diluted weighted average shares outstanding                                                                     691,701                                                                    707,300                                                                       690,840                                                                    717,875
                                                                                                                                                                                                                                                                                                                                                    
   Dividends declared and paid per common share                                                           $           0.18                                                              $        0.18                                                              $           0.82                                                              $        0.82
                                                                                                                                                                                                                                                                                                                                                    
                                                                                           AMCON Distributing Company and Subsidiaries
                                                                                    Condensed Consolidated Unaudited Statements of Cash Flows
                                                                                        for the nine months ended June 30, 2017 and 2016
                                                                                                                                    
                                                                                                                       June                                                                         June
                                                                                             ---------------------------------------------------------                     ------------------------------------------------------
                                                                                                                       2017                                                                         2016
                                                                                             ---------------------------------------------------------                     ------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income                                                                                                      $      1,919,996                                                              $   4,354,180
Adjustments to reconcile net income from operations to net cash
flows from operating activities:
   Depreciation                                                                                                        1,332,542                                                                  1,389,756
   Amortization                                                                                                          198,750                                                                    265,417
   Gain on sale of property and equipment                                                                                (30,854 )                                                                  (69,215 )
   Equity-based compensation                                                                                           1,193,005                                                                  1,050,644
   Deferred income taxes                                                                                                 120,367                                                                    238,728
   Provision (recovery) for losses on doubtful accounts                                                                   42,000                                                                    (39,000 )
   Provision for losses on inventory obsolescence                                                                          4,852                                                                      2,014
   Other                                                                                                                   2,296                                                                     (5,034 )
Changes in assets and liabilities:
   Accounts receivable                                                                                                (1,044,423 )                                                               (2,027,155 )
   Inventories                                                                                                          (701,279 )                                                               10,120,804
   Prepaid and other current assets                                                                                      771,870                                                                 (3,320,720 )
   Other assets                                                                                                          (38,358 )                                                                   27,897
   Accounts payable                                                                                                      322,325                                                                    924,567
   Accrued expenses and accrued wages, salaries and bonuses                                                             (659,813 )                                                                    2,825
   Income taxes receivable                                                                              7,059                              476,352  
                                                                                             -------------------- -------------- --------------------                      -------------------- ----------- --------------------
Net cash flows from operating activities                                                            3,440,335                           13,392,060  
                                                                                             -------------------- -------------- --------------------                      -------------------- ----------- --------------------
                                                                                                                                                                                                 
CASH FLOWS FROM INVESTING ACTIVITIES:
   Purchase of property and equipment                                                                                 (1,761,431 )                                                               (1,013,988 )
   Proceeds from sales of property and equipment                                                       42,655                              112,157  
                                                                                             -------------------- -------------- --------------------                      -------------------- ----------- --------------------
Net cash flows from investing activities                                                           (1,718,776 )                                              (901,831 )
                                                                                             -------------------- -------------- --------------------                      -------------------- ----------- --------------------
                                                                                                                                                                                                 
CASH FLOWS FROM FINANCING ACTIVITIES:
   Net payments on bank credit agreements                                                                               (209,128 )                                                               (7,193,768 )
   Principal payments on long-term debt                                                                                 (271,031 )                                                                 (262,677 )
   Repurchase of common stock                                                                                         (1,038,060 )                                                               (4,044,437 )
   Dividends paid on convertible preferred stock                                                                  --                                                                   (146,462 )
   Dividends on common stock                                                                                            (579,848 )                                                                 (526,076 )
   Withholdings on the exercise of equity-based awards                                               (107,082 )                                              (121,348 )
                                                                                             -------------------- -------------- --------------------                      -------------------- ----------- --------------------
Net cash flows from financing activities                                                           (2,205,149 )                                           (12,294,768 )
                                                                                             -------------------- -------------- --------------------                      -------------------- ----------- --------------------
Net change in cash                                                                                                      (483,590 )                                                                  195,461
Cash, beginning of period                                                                             605,380                              219,536  
                                                                                             -------------------- -------------- --------------------                      -------------------- ----------- --------------------
Cash, end of period                                                                                             $        121,790                                           $     414,997  
                                                                                             ==================== ============== ====================                      ==================== =========== ====================
                                                                                                                                                                                                 
Supplemental disclosure of cash flow information:
   Cash paid during the period for interest                                                                     $        545,719                                                              $     576,681
   Cash paid during the period for income taxes                                                                        1,620,574                                                                  2,525,920
                                                                                                                                                                                                 
Supplemental disclosure of non-cash information:
   Equipment acquisitions classified in accounts payable                                                                   9,881                                                                     51,874
   Issuance of common stock in connection with the vesting and exercise                                                1,262,763                                                                  1,174,981
   of equity-based awards
                                                                                                                                                                                                             

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20170718006306r1&sid=cmtx6&distro=nx&

View source version on businesswire.com: http://www.businesswire.com/news/home/20170718006306/en/

SOURCE: AMCON Distributing Company

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


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