AMCON Distributing Company Reports Fully Diluted Earnings Per Share of $1.10 for the Quarter Ended June 30, 2019

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OMAHA, Neb.--(BUSINESS WIRE)-- AMCON Distributing Company (“AMCON”) (NYSE American: DIT), an Omaha, Nebraska based consumer products company is pleased to announce fully diluted earnings per share of $1.10 on net income available to common shareholders of $0.7 million for its third fiscal quarter ended June 30, 2019. “AMCON’s emphasis on first class service and reliability is a firm part of our tradition as a leader in the convenience distribution industry. Our leadership team is proactively evaluating strategic facility initiatives to support the growth needs and competitive position of our customer base. As such, we will continue to enthusiastically make investments in people, facilities, and equipment necessary for sustained excellence,” said Christopher H. Atayan, AMCON’s Chairman and Chief Executive Officer. He further noted, “Our Healthy Edge Retail Group management team is planning a comprehensive merchandising and point of sale solution to support our objective of being a total wellness solution for our customers.” “We collaborate closely with our customers to design cutting edge foodservice programs that are competitive and profitable for our customers. Our portfolio of foodservice warehouse and fleet assets positions us as a leader in the convenience distribution industry,” said Andrew C. Plummer, AMCON’s President and Chief Operating Officer. In addition, he noted, “As the convenience industry consolidates, AMCON’s platform of technology and history of customer service position the business well for strategic acquisitions.” Mr. Plummer further added, “We were pleased to close June 30, 2019 with total shareholders’ equity of $65.4 million and consolidated debt of $36.2 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 twenty-two (22) health and natural product retail stores in the Midwest and Florida. The retail stores operate under the names Akin’s Natural Foods Market www.akins.com in its Midwest market, and Chamberlin's Market & Cafe www.chamberlins.com and Earth Origins Market www.earthoriginsmarket.com in its Florida market. 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, 2019 and September 30, 2018       June   September     2019   2018     (Unaudited)     ASSETS             Current assets:             Cash   $ 314,007     $ 520,644   Accounts receivable, less allowance for doubtful accounts of $1.0 million at June 2019 and $0.9 million at September 2018     34,459,786       31,428,845   Inventories, net     66,946,540       78,869,615   Income taxes receivable     114,276       272,112   Prepaid and other current assets     10,638,796       4,940,775   Total current assets     112,473,405       116,031,991                 Property and equipment, net     17,376,511       15,768,484   Goodwill     4,436,950       4,436,950   Other intangible assets, net     3,373,269       3,414,936   Other assets     282,081       301,793   Total assets   $ 137,942,216     $ 139,954,154                 LIABILITIES AND SHAREHOLDERS’ EQUITY             Current liabilities:             Accounts payable   $ 23,403,140     $ 20,826,834   Accrued expenses     8,604,004       8,556,620   Accrued wages, salaries and bonuses     2,376,347       3,965,733   Current maturities of long-term debt     808,103       1,096,306   Total current liabilities     35,191,594       34,445,493                 Credit facility     32,114,531       35,428,597   Deferred income tax liability, net     1,895,240       1,782,801   Long-term debt, less current maturities     3,260,455       3,658,391   Other long-term liabilities     41,022       38,055                 Shareholders’ equity:             Preferred stock, $.01 par value, 1,000,000 shares authorized     —     — Common stock, $.01 par value, 3,000,000 shares authorized, 592,767 shares outstanding at June 2019 and 615,777 shares outstanding at September 2018     8,561       8,441   Additional paid-in capital     23,185,173       22,069,098   Retained earnings     66,757,379       63,848,030   Treasury stock at cost     (24,511,739 )     (21,324,752 ) Total shareholders’ equity     65,439,374       64,600,817   Total liabilities and shareholders’ equity   $ 137,942,216     $ 139,954,154   AMCON Distributing Company and Subsidiaries Condensed Consolidated Unaudited Statements of Operations for the three and nine months ended June 30, 2019 and 2018       For the three months ended June   For the nine months ended June     2019   2018   2019   2018 Sales (including excise taxes of $98.0 million and $96.2 million, and $274.0 million and $267.9 million, respectively)   $ 369,981,516     $ 349,043,200     $ 1,025,431,309     $ 959,763,695   Cost of sales     349,455,624       329,930,190       963,683,859       905,392,747   Gross profit     20,525,892       19,113,010       61,747,450       54,370,948   Selling, general and administrative expenses     18,513,048       17,008,355       53,861,943       48,981,383   Depreciation and amortization     620,142       614,710       1,869,378       1,683,618         19,133,190       17,623,065       55,731,321       50,665,001   Operating income     1,392,702       1,489,945       6,016,129       3,705,947                     Other expense (income):                 Interest expense     381,469       261,510       1,100,995       777,065   Other (income), net     (15,446 )     (18,615 )     (55,081 )     (51,158 )       366,023       242,895       1,045,914       725,907   Income from operations before income taxes     1,026,679       1,247,050       4,970,215       2,980,040   Income tax expense     361,000       462,000       1,536,000       376,000   Net income available to common shareholders   $ 665,679     $ 785,050     $ 3,434,215     $ 2,604,040                     Basic earnings per share available to common shareholders   $ 1.12     $ 1.21     $ 5.65     $ 3.85   Diluted earnings per share available to common shareholders   $ 1.10     $ 1.18     $ 5.56     $ 3.79                     Basic weighted average shares outstanding     592,768       651,170       607,505       676,103   Diluted weighted average shares outstanding     606,278       664,688       617,887       686,576                     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 Shareholders’ Equity for the three and nine months ended June 30, 2019 and 2018                                                                 Additional                 Common Stock   Treasury Stock   Paid in   Retained           Shares   Amount   Shares   Amount   Capital   Earnings   Total THREE MONTHS ENDED JUNE 2018                                       Balance, April 1, 2018   844,089   $ 8,441   (160,085 )   $ (14,245,830 )   $ 22,036,562   $ 62,296,042     $ 70,095,215   Dividends on common stock, $0.18 per share   —     —   —     —     —     (127,937 )     (127,937 ) Compensation expense and issuance of stock in connection with equity-based awards   —     —   —     —     5,593     —     5,593   Repurchase of common stock   —     —   (68,016 )     (7,059,864 )     —     —     (7,059,864 ) Net income   —     —   —     —     —     785,050       785,050   Balance, June 30, 2018   844,089   $ 8,441   (228,101 )   $ (21,305,694 )   $ 22,042,155   $ 62,953,155     $ 63,698,057                                           THREE MONTHS ENDED JUNE 2019                                       Balance, April 1, 2019   856,039   $ 8,561   (263,271 )   $ (24,511,598 )   $ 23,148,372   $ 66,203,466     $ 64,848,801   Dividends on common stock, $0.18 per share   —     —   —     —     —     (111,766 )     (111,766 ) Compensation expense and issuance of stock in connection with equity-based awards   —     —   —     —     36,801     —     36,801   Repurchase of common stock   —     —   (1 )     (141 )     —     —     (141 ) Net income   —     —   —     —     —     665,679       665,679   Balance, June 30, 2019   856,039   $ 8,561   (263,272 )   $ (24,511,739 )   $ 23,185,173   $ 66,757,379     $ 65,439,374                             Additional                 Common Stock   Treasury Stock   Paid in   Retained           Shares   Amount   Shares   Amount   Capital   Earnings   Total NINE MONTHS ENDED JUNE 2018                                       Balance, October 1, 2017   831,438   $ 8,314   (153,432 )   $ (13,601,302 )   $ 20,825,919   $ 60,935,911     $ 68,168,842   Dividends on common stock, $0.82 per share   —     —   —     —     —     (586,796 )     (586,796 ) Compensation expense and issuance of stock in connection with equity-based awards   12,651     127   —     —     1,216,236     —     1,216,363   Repurchase of common stock   —     —   (74,669 )     (7,704,392 )     —     —     (7,704,392 ) Net income   —     —   —     —     —     2,604,040       2,604,040   Balance, June 30, 2018   844,089   $ 8,441   (228,101 )   $ (21,305,694 )   $ 22,042,155   $ 62,953,155     $ 63,698,057                                           NINE MONTHS ENDED JUNE 2019                                       Balance, October 1, 2018   844,089   $ 8,441   (228,312 )   $ (21,324,752 )   $ 22,069,098   $ 63,848,030     $ 64,600,817   Dividends on common stock, $0.82 per share   —     —   —     —     —     (524,866 )     (524,866 ) Compensation expense and issuance of stock in connection with equity-based awards   11,950     120   —     —     1,116,075     —     1,116,195   Repurchase of common stock   —     —   (34,960 )     (3,186,987 )     —     —     (3,186,987 ) Net income   —     —   —     —     —     3,434,215       3,434,215   Balance, June 30, 2019   856,039   $ 8,561   (263,272 )   $ (24,511,739 )   $ 23,185,173   $ 66,757,379     $ 65,439,374   AMCON Distributing Company and Subsidiaries Condensed Consolidated Unaudited Statements of Cash Flows for the nine months ended June 30, 2019 and 2018     June   June     2019   2018 CASH FLOWS FROM OPERATING ACTIVITIES:             Net income   $ 3,434,215     $ 2,604,040   Adjustments to reconcile net income from operations to net cash flows from operating activities:             Depreciation     1,827,711       1,619,868   Amortization     41,667       63,750   Gain on sales of property and equipment     (15,376 )     (5,300 ) Equity-based compensation     1,035,128       957,656   Deferred income taxes     112,439       (672,431 ) Provision for losses on doubtful accounts     179,000       23,000   Inventory allowance     454,357       (267,389 ) Other     2,967       2,967                 Changes in assets and liabilities:             Accounts receivable     (3,209,941 )     (3,276,391 ) Inventories     11,468,718       22,167,954   Prepaid and other current assets     (5,698,021 )     (5,843,877 ) Other assets     19,712       (4,928 ) Accounts payable     2,485,721       1,584,358   Accrued expenses and accrued wages, salaries and bonuses     (1,460,935 )     125,758   Income taxes receivable     157,836       11,751   Net cash flows from operating activities     10,835,198       19,090,786                 CASH FLOWS FROM INVESTING ACTIVITIES:             Purchase of property and equipment     (3,385,977 )     (2,120,358 ) Proceeds from sales of property and equipment     56,200       5,300   Net cash flows (used in) investing activities     (3,329,777 )     (2,115,058 )               CASH FLOWS FROM FINANCING ACTIVITIES:             Borrowings under revolving credit facility     1,022,309,940       1,043,415,401   Repayments under revolving credit facility     (1,025,624,006 )     (1,051,967,147 ) Principal payments on long-term debt     (686,139 )     (279,339 ) Repurchase of common stock     (3,186,987 )     (7,704,392 ) Dividends on common stock     (524,866 )     (586,796 ) Withholdings on the exercise of equity-based awards     —     (101,200 ) Net cash flows (used in) financing activities     (7,712,058 )     (17,223,473 ) Net change in cash     (206,637 )     (247,745 ) Cash, beginning of period     520,644       523,065   Cash, end of period   $ 314,007     $ 275,320                 Supplemental disclosure of cash flow information:             Cash paid during the period for interest   $ 1,140,562     $ 764,557   Cash paid during the period for income taxes     1,265,725       1,036,680                 Supplemental disclosure of non-cash information:             Equipment acquisitions classified in accounts payable   $ 91,838     $ 8,203   Issuance of common stock in connection with the vesting and exercise of equity-based awards     1,005,792       1,183,091   View source version on businesswire.com: https://www.businesswire.com/news/home/20190718005759/en/ Christopher H. Atayan AMCON Distributing Company Ph 402-331-3727 Source: AMCON Distributing Company

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