AMCON Distributing (DIT) 8-K Results of Operations and Financial Condition

Exhibit 99.1

AMCON Distributing Company Reports Fully Diluted Earnings Per Share of $1.73 for the Quarter Ended June 30, 2014

OMAHA, Neb.--(BUSINESS WIRE)--July 17, 2014--AMCON Distributing Company (“AMCON”) (NYSE MKT:DIT), an Omaha, Nebraska based consumer products company is pleased to announce fully diluted earnings per share of $1.73 on net income available to common shareholders of $1.2 million for the fiscal quarter ended June 30, 2014.

“We continue to make progress on our facility expansion at our branch in Rapid City. When completed, our northern customers will benefit from our enhanced foodservice capabilities,” said Christopher H. Atayan, AMCON’s Chairman and Chief Executive Officer. Atayan also noted, “The reach and intellectual capital embedded within our wholesale business is considerable. We are exploring different ways to leverage and monetize those competencies. We believe the independent c-store channel is hungry for solutions as they aggressively compete for business with larger chains. We feel that we play an important role in providing many of these higher margin solutions in areas such as information technology and category management.”

Our wholesale distribution segment reported revenues of $314.1 million and operating income before depreciation and amortization of $4.1 million for the third fiscal quarter of 2014. The retail health food segment reported revenues of $8.5 million and operating income before depreciation and amortization of $0.3 million for the same period.

“We continue to monitor development of the e-cigarette and vaping category which is growing both within the c-store channel and through other retail channels and is attracting additional scrutiny from regulators. We currently offer a full range of e-cigarette and vaping products and will modify our approach to this product category as market conditions change,” said Kathleen M. Evans, President of AMCON’s wholesale distribution segment.

“The growth in the natural foods retail industry has led to a significant number of new competitors in our Midwestern markets. We have implemented our response to this competition and are carefully evaluating our product mix while seeking operating additions and consolidations where appropriate, all within the context of delivering a high level of customer service and satisfaction,” said Eric Hinkefent, President of AMCON’s retail health food segment.

“We continue to utilize our balance sheet strength to deliver on key corporate objectives. During the quarter, we negotiated the repurchase of 8,830 shares of common stock in a private transaction while at the same time closing on a second small acquisition in North Dakota. The recent North Dakota acquisitions and capital expenditures for the Rapid City facility expansion improve our market penetration in the growing Dakota markets. We closed the June 30, 2014 quarter with shareholders’ equity of $53.7 million and consolidated debt of $25.3 million,” said Andrew Plummer, AMCON’s Chief Financial Officer.

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
Condensed Consolidated Balance Sheets
June 30, 2014 and September 30, 2013
	June			September
	2014			2013
	(Unaudited)
ASSETS
Current assets:
Cash	$	333,751		$	275,036
Accounts receivable, less allowance for doubtful accounts of $1.2 million and $1.1 million at June 2014 and September 2013, respectively		29,699,236			28,383,205
Inventories, net		48,639,828			46,125,187
Deferred income taxes		1,652,702			1,831,933
Prepaid and other current assets		7,050,381			5,001,992
Total current assets		87,375,898			81,617,353
Property and equipment, net		13,944,111			13,088,859
Goodwill		6,349,827			6,349,827
Other intangible assets, net		4,547,228			4,820,978
Other assets		465,990			497,882
	$	112,683,054		$	106,374,899
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	16,447,785		$	15,859,636
Accrued expenses		7,114,393			6,714,444
Accrued wages, salaries and bonuses		3,105,187			2,754,136
Income taxes payable		332,604			1,922,351
Current maturities of long-term debt		338,595			998,788
Total current liabilities		27,338,564			28,249,355
Credit facility		21,164,401			14,841,712
Deferred income taxes		3,569,713			3,327,010
Long-term debt, less current maturities		3,821,735			4,076,892
Other long-term liabilities		141,014			239,396
Series A cumulative, convertible preferred stock, $.01 par value 100,000 shares authorized and issued, and a total liquidation preference of $2.5 million at both June 2014 and September 2013		2,500,000			2,500,000
Series B cumulative, convertible preferred stock, $.01 par value 80,000 shares authorized, 16,000 shares issued and outstanding at both June 2014 and September 2013, and a total liquidation preference of $0.4 million at both June 2014 and September 2013		400,000			400,000
Shareholders’ equity:
Preferred stock, $.01 par value, 1,000,000 shares authorized, 116,000 shares outstanding and issued in Series A and B referred to above		—			—
Common stock, $.01 par value, 3,000,000 shares authorized, 602,602 shares outstanding at June 2014 and 623,115 shares outstanding at September 2013		6,677			6,543
Additional paid-in capital		13,577,433			12,502,135
Retained earnings		46,112,791			43,532,812
Treasury stock at cost		(5,949,274	)		(3,300,956	)
Total shareholders’ equity		53,747,627			52,740,534
	$	112,683,054		$	106,374,899

AMCON Distributing Company and Subsidiaries
Condensed Consolidated Unaudited Statements of Operations
for the three and nine months ended June 30, 2014 and 2013
	For the three months						For the nine months
	ended June						ended June
	2014			2013			2014			2013
Sales (including excise taxes of $100.4 million and $100.2 million, and $283.5 million and $285.4 million, respectively)	$	322,647,624		$	316,031,197		$	900,694,969		$	892,817,669
Cost of sales		303,353,020			296,220,406			844,139,340			835,480,069
Gross profit		19,294,604			19,810,791			56,555,629			57,337,600
Selling, general and administrative expenses		16,295,082			16,065,285			48,599,519			47,351,952
Depreciation and amortization		557,736			598,061			1,810,610			1,791,708
		16,852,818			16,663,346			50,410,129			49,143,660
Operating income		2,441,786			3,147,445			6,145,500			8,193,940
Other expense (income):
Interest expense		228,827			309,445			753,446			874,489
Other (income), net		(37,473	)		(49,487	)		(106,659	)		(225,682	)
		191,354			259,958			646,787			648,807
Income from operations before income tax expense		2,250,432			2,887,487			5,498,713			7,545,133
Income tax expense		990,000			1,255,000			2,419,000			3,236,000
Net income		1,260,432			1,632,487			3,079,713			4,309,133
Preferred stock dividend requirements		(48,643	)		(48,642	)		(145,928	)		(156,041	)
Net income available to common shareholders	$	1,211,789		$	1,583,845		$	2,933,785		$	4,153,092
Basic earnings per share available to common shareholders	$	2.00		$	2.54		$	4.79		$	6.67
Diluted earnings per share available to common shareholders	$	1.73		$	2.19		$	4.18		$	5.73
Basic weighted average shares outstanding		605,319			623,115			613,032			622,833
Diluted weighted average shares outstanding		729,978			744,732			736,531			751,946

AMCON Distributing Company and Subsidiaries
Condensed Consolidated Unaudited Statements of Cash Flows
for the nine months ended June 30, 2014 and 2013
	2014			2013
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	3,079,713		$	4,309,133
Adjustments to reconcile net income from operations to net cash flows from operating activities:
Depreciation		1,536,860			1,517,958
Amortization		273,750			273,750
Gain on sale of property and equipment		(42,745	)		(72,318	)
Equity-based compensation		1,025,694			971,954
Deferred income taxes		421,934			449,188
Provision for losses on doubtful accounts		63,000			80,000
Provision for losses on inventory obsolescence		15,878			54,028
Other		(6,034	)		(6,034	)
Changes in assets and liabilities:
Accounts receivable		(1,379,031	)		(2,852,651	)
Inventories		(1,572,589	)		(9,827,717	)
Prepaid and other current assets		(2,048,389	)		(1,622,018	)
Other assets		31,892			55,753
Accounts payable		598,939			(1,070,612	)
Accrued expenses and accrued wages, salaries and bonuses		805,286			525,856
Income tax payable		(1,589,747	)		(1,096,612	)
Net cash flows from operating activities		1,214,411			(8,310,342	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment		(2,337,626	)		(1,808,206	)
Proceeds from sales of property and equipment		47,969			144,841
Acquisition		(996,803	)		—
Net cash flows from investing activities		(3,286,460	)		(1,663,365	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net borrowings on bank credit agreements		6,322,689			13,697,657
Principal payments on long-term debt		(915,350	)		(883,923	)
Repurchase of Series B Convertible Preferred Stock and common stock		(2,648,318	)		(2,572,085	)
Dividends paid on convertible preferred stock		(145,928	)		(156,041	)
Dividends on common stock		(353,806	)		(352,406	)
Proceeds from exercise of stock options		—			1,180
Withholdings on the exercise of equity-based awards		(128,523	)		(74,610	)
Net cash flows from financing activities		2,130,764			9,659,772
Net change in cash		58,715			(313,935	)
Cash, beginning of period		275,036			491,387
Cash, end of period	$	333,751		$	177,452
Supplemental disclosure of cash flow information:
Cash paid during the period for interest	$	751,909		$	851,665
Cash paid during the period for income taxes		3,586,813			3,883,424
Supplemental disclosure of non-cash information:
Equipment acquisitions classified as accounts payable		62,414			21,248
Issuance of common stock in connection with the vesting and exercise of equity-based awards		1,154,869			1,389,258
Conversion by holder of Series B Convertible Preferred Stock to common stock		—			100,000
Common stock acquired with other consideration		—			760,871

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