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

Exhibit 99.1

AMCON Distributing Company Reports Fully Diluted Earnings Per Share of $1.04 for the Quarter Ended March 31, 2015

OMAHA, Neb.--(BUSINESS WIRE)--April 17, 2015--AMCON Distributing Company (“AMCON”) (NYSE MKT:DIT), an Omaha, Nebraska based consumer products company is pleased to announce fully diluted earnings per share of $1.04 on net income available to common shareholders of $0.7 million for the fiscal quarter ended March 31, 2015.

“We are making a number of targeted investments within our wholesale business. In particular, we continue to develop our technology infrastructure and proprietary applications to enhance our customers’ experience and profitability. Additionally, we are expanding our refrigerated and temperature controlled trucking fleet. These investments are specifically designed to capitalize on our convenience store customers increasing demand for new foodservice offerings and technological needs,” said Christopher H. Atayan, AMCON’s Chairman and Chief Executive Officer. He further noted “We expect that we will continue to invest in our wholesale business to maintain our leadership position in the industry and are seeking acquisitions that can benefit from our extensive platform of customer services.”

“In late March, we hosted our annual spring trade show in Kansas City. This is our largest customer event of the year and once again, we enjoyed outstanding attendance from both existing and prospective customers. Our sales and merchandising teams are working closely with customers as the spring sales season kicks off. As convenience store traffic increases, fully capturing and maximizing this opportunity is an important focus for our customers,” said Kathleen M. Evans, President of AMCON’s Wholesale Distribution Segment.

“The retail health food operating environment in the markets we operate remains highly competitive. Both national and regional chains are pursuing aggressive expansion efforts and continue to open new stores. Our management team has been focused on a variety of initiatives designed to enhance the operating economics of each retail store. These efforts include a targeted focus on the major business drivers such as inventory rationalization, merchandising, store staffing mix, and expense management,” said Eric Hinkefent, President of AMCON’s Retail Health Food Segment.

Each of AMCON’s business segments reported solid quarters. The wholesale distribution segment reported revenues of $279.2 million and operating income before depreciation and amortization of $3.0 million for the second fiscal quarter of 2015. The retail health food segment reported revenues of $8.2 million and operating income before depreciation and amortization of $0.6 million for the same period.

“We actively manage our working capital and seek opportunities to use our liquidity to our benefit,” said Andrew C. Plummer, AMCON’s Chief Financial Officer. Plummer added, “We are also using the lower cost energy environment to make additional investments in our refrigerated fleet. These capital improvements enhance our ability to support our foodservice business but the refrigeration also increases overall fuel consumption company wide. We were pleased to close the March 31, 2015 quarter with shareholders’ equity of $58.6 million and consolidated debt of $35.9 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 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
March 31, 2015 and September 30, 2014
	March			September
	2015			2014
	(Unaudited)
ASSETS
Current assets:
Cash	$	189,559		$	99,922
Accounts receivable, less allowance for doubtful accounts of $0.9 million and $0.8 million at March 2015 and September 2014, respectively		30,847,526			33,286,932
Inventories, net		65,521,673			43,635,266
Deferred income taxes		1,353,082			1,606,168
Prepaid and other current assets		3,325,626			5,034,570
Total current assets		101,237,466			83,662,858
Property and equipment, net		13,388,517			13,763,140
Goodwill		6,349,827			6,349,827
Other intangible assets, net		4,273,478			4,455,978
Other assets		336,357			448,149
	$	125,585,645		$	108,679,952
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	16,627,660		$	16,412,895
Accrued expenses		5,978,844			6,891,308
Accrued wages, salaries and bonuses		1,977,298			2,647,969
Income taxes payable		26,476			1,603,614
Current maturities of long-term debt		346,057			341,190
Total current liabilities		24,956,335			27,896,976
Credit facility		31,963,666			15,081,783
Deferred income taxes		3,469,673			3,484,204
Long-term debt, less current maturities		3,561,053			3,735,702
Other long-term liabilities		134,980			139,003
Series A cumulative, convertible preferred stock, $.01 par value 100,000 shares authorized, issued, and outstanding, and a total liquidation preference of $2.5 million at both March 2015 and September 2014		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 March 2015 and September 2014, and a total liquidation preference of $0.4 million at both March 2015 and September 2014		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, 615,822 shares outstanding at March 2015 and 602,411 shares outstanding at September 2014		6,811			6,677
Additional paid-in capital		14,743,839			13,571,909
Retained earnings		49,814,791			47,829,201
Treasury stock at cost		(5,965,503	)		(5,965,503	)
Total shareholders’ equity		58,599,938			55,442,284
	$	125,585,645		$	108,679,952

AMCON Distributing Company and Subsidiaries
Condensed Consolidated Unaudited Statements of Operations
for the three and six months ended March 31, 2015 and 2014
	For the three months						For the six months
	ended March						ended March
	2015			2014			2015			2014
Sales (including excise taxes of $87.4 million and $85.7 million, and $184.4 million and $183.1 million, respectively)	$	287,443,864		$	272,421,788		$	602,877,340		$	578,047,345
Cost of sales		269,710,529			254,801,826			565,617,473			540,786,320
Gross profit		17,733,335			17,619,962			37,259,867			37,261,025
Selling, general and administrative expenses		15,485,757			15,812,174			31,666,879			32,304,437
Depreciation and amortization		590,857			628,834			1,167,162			1,252,874
		16,076,614			16,441,008			32,834,041			33,557,311
Operating income		1,656,721			1,178,954			4,425,826			3,703,714
Other expense (income):
Interest expense		194,375			222,624			431,517			524,619
Other (income), net		(35,987	)		(38,955	)		(43,054	)		(69,186	)
		158,388			183,669			388,463			455,433
Income from operations before income tax expense		1,498,333			995,285			4,037,363			3,248,281
Income tax expense		729,000			464,000			1,722,000			1,429,000
Net income		769,333			531,285			2,315,363			1,819,281
Preferred stock dividend requirements		(48,108	)		(48,108	)		(97,285	)		(97,285	)
Net income available to common shareholders	$	721,225		$	483,177		$	2,218,078		$	1,721,996
Basic earnings per share available to common shareholders	$	1.17		$	0.79		$	3.61		$	2.79
Diluted earnings per share available to common shareholders	$	1.04		$	0.72		$	3.15		$	2.46
Basic weighted average shares outstanding		615,822			611,432			614,173			616,888
Diluted weighted average shares outstanding		737,180			737,461			735,599			739,223

AMCON Distributing Company and Subsidiaries
Condensed Consolidated Unaudited Statements of Cash Flows
for the six months ended March 31, 2015 and 2014
	2015			2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	2,315,363		$	1,819,281
Adjustments to reconcile net income from operations to net cash flows from operating activities:
Depreciation		984,662			1,070,374
Amortization		182,500			182,500
(Gain) loss on sale of property and equipment		7,036			(24,746	)
Equity-based compensation		607,661			717,821
Deferred income taxes		238,555			462,447
Provision for losses on doubtful accounts		159,999			132,000
Provision for losses (recoveries) on inventory obsolescence		(34,189	)		(1,121	)
Other		(4,023	)		(4,023	)
Changes in assets and liabilities:
Accounts receivable		2,279,407			1,356,409
Inventories		(21,852,218	)		(2,474,084	)
Prepaid and other current assets		1,708,944			5,700
Other assets		111,792			13,054
Accounts payable		200,996			(34,071	)
Accrued expenses and accrued wages, salaries and bonuses		(862,235	)		(1,565,640	)
Income tax payable		(1,577,138	)		(1,618,592	)
Net cash flows from operating activities		(15,532,888	)		37,309
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment		(611,106	)		(1,362,832	)
Proceeds from sales of property and equipment		7,800			29,969
Acquisition		—			(513,938	)
Net cash flows from investing activities		(603,306	)		(1,846,801	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net borrowings on bank credit agreements		16,881,883			4,926,619
Principal payments on long-term debt		(169,782	)		(607,923	)
Repurchase of Series B Convertible Preferred Stock and common stock		—			(1,941,918	)
Dividends paid on convertible preferred stock		(97,285	)		(97,285	)
Dividends on common stock		(232,488	)		(239,362	)
Withholdings on the exercise of equity-based awards		(156,497	)		(109,115	)
Net cash flows from financing activities		16,225,831			1,931,016
Net change in cash		89,637			121,524
Cash, beginning of period		99,922			275,036
Cash, end of period	$	189,559		$	396,560
	2015			2014
Supplemental disclosure of cash flow information:
Cash paid during the period for interest	$	403,758		$	523,081
Cash paid during the period for income taxes		3,060,584			2,585,145
Supplemental disclosure of non-cash information:
Equipment acquisitions classified as accounts payable		48,754			152,311
Issuance of common stock in connection with the vesting and exercise of equity-based awards		1,240,842			1,154,869

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