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

Exhibit 99.1

AMCON Distributing Company Reports Fully Diluted Earnings Per Share of $2.62 for the Quarter Ended June 30, 2016

OMAHA, Neb.--(BUSINESS WIRE)--July 18, 2016--AMCON Distributing Company (“AMCON”) (NYSE MKT:DIT), an Omaha, Nebraska based consumer products company is pleased to announce fully diluted earnings per share of $2.62 on net income available to common shareholders of $1.8 million for the fiscal quarter ended June 30, 2016.

“The convenience sector continues to embrace fresh and on-the-go food offerings that enhance their ability to effectively compete against quick service restaurants for consumer dollars,” said Christopher H. Atayan, AMCON’s Chairman and Chief Executive Officer. Atayan continued, “AMCON has developed robust programs and expanded its capabilities in foodservice and technology to support our customers as they continue to evolve their stores. We have a long-term commitment to building partnerships with our customers and suppliers alike.” He further noted, “we are actively seeking acquisitions that can benefit from our extensive platform of customer service.”

For the third fiscal quarter, the wholesale distribution segment reported revenues of $326.9 million, operating income of $4.9 million, and operating income before depreciation and amortization of $5.3 million. Our retail health food segment reported revenues of $6.5 million, an operating loss of $0.1 million, and break even operating income before depreciation and amortization for the same period.

“Our customers can count on our sales and marketing teams’ expertise in store design, product and program selection, and product placement to help them maximize sales and profitability particularly during the critical peak sales season. The investments we’ve made in our refrigerated trucking fleet have proven to be a competitive advantage as we are increasingly placing more emphasis on our foodservice offerings,” said Kathleen M. Evans, President of AMCON’s Wholesale Distribution segment.

“We are proactively taking steps to respond to the competitive environment that we operate in. We are focused on developing an enhanced shopping experience that builds on our key historical strengths of customer service and product selection,” said Eric Hinkefent, President of AMCON’s Retail Health Food Segment.

“We take a conservative approach to managing our balance sheet. The emphasis we place on working capital and liquidity provides us a competitive advantage in both of our business segments. We are able to move decisively when opportunities manifest themselves,” said Andrew C. Plummer, AMCON’s Chief Financial Officer. “We were pleased to close the June 30, 2016 quarter with shareholders’ equity of $62.2 million and consolidated debt of $17.2 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 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, 2016 and September 30, 2015
	June			September
	2016			2015
	(Unaudited)
ASSETS
Current assets:
Cash	$	414,997		$	219,536
Accounts receivable, less allowance for doubtful accounts of $0.8 million at June 2016 and $0.9 million at September 2015		33,932,942			31,866,787
Inventories, net		50,670,660			60,793,478
Deferred income taxes		1,404,470			1,553,726
Income taxes receivable		—			113,238
Prepaid and other current assets		5,446,628			2,125,908
Total current assets		91,869,697			96,672,673
Property and equipment, net		12,362,980			12,753,145
Goodwill		6,349,827			6,349,827
Other intangible assets, net		3,825,561			4,090,978
Other assets		289,287			317,184
	$	114,697,352		$	120,183,807
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	17,997,838		$	17,044,726
Accrued expenses		6,847,950			7,224,963
Accrued wages, salaries and bonuses		3,423,813			3,282,354
Income taxes payable		363,114			—
Current maturities of long-term debt		359,737			351,383
Total current liabilities		28,992,452			27,903,426
Credit facility		13,708,439			20,902,207
Deferred income taxes		3,785,570			3,696,098
Long-term debt, less current maturities		3,113,288			3,384,319
Other long-term liabilities		29,826			34,860
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 2016 and September 2015		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 2016 and September 2015, and a total liquidation preference of $0.4 million at both June 2016 and September 2015		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, 587,185 shares outstanding and issued at June 2016 and 621,104 shares outstanding and issued at September 2015		7,197			7,061
Additional paid-in capital		16,676,738			15,509,199
Retained earnings		57,209,248			53,527,606
Treasury stock at cost		(11,725,406	)		(7,680,969	)
Total shareholders’ equity		62,167,777			61,362,897
	$	114,697,352		$	120,183,807

AMCON Distributing Company and Subsidiaries
Condensed Consolidated Unaudited Statements of Operations
for the three and nine months ended June 30, 2016 and 2015
	For the three months ended June						For the nine months ended June
	2016			2015			2016			2015
Sales (including excise taxes of $98.9 million and $101.5 million, and $284.9 million and $285.9 million, respectively)	$	333,398,723		$	334,456,509		$	951,856,098		$	937,333,849
Cost of sales		314,235,192			314,957,889			896,190,425			880,575,362
Gross profit		19,163,531			19,498,620			55,665,673			56,758,487
Selling, general and administrative expenses		15,335,808			15,405,676			45,951,300			47,072,555
Depreciation and amortization		512,543			542,307			1,655,173			1,709,469
		15,848,351			15,947,983			47,606,473			48,782,024
Operating income		3,315,180			3,550,637			8,059,200			7,976,463
Other expense (income):
Interest expense		188,798			242,266			562,654			673,783
Other (income), net		(35,552	)		(20,853	)		(98,634	)		(63,907	)
		153,246			221,413			464,020			609,876
Income from operations before income tax expense		3,161,934			3,329,224			7,595,180			7,366,587
Income tax expense		1,310,000			1,333,000			3,241,000			3,055,000
Net income		1,851,934			1,996,224			4,354,180			4,311,587
Preferred stock dividend requirements		(48,642	)		(48,643	)		(146,462	)		(145,928	)
Net income available to common shareholders	$	1,803,292		$	1,947,581		$	4,207,718		$	4,165,659
Basic earnings per share available to common shareholders	$	3.03		$	3.16		$	6.91		$	6.78
Diluted earnings per share available to common shareholders	$	2.62		$	2.69		$	6.07		$	5.85
Basic weighted average shares outstanding		596,112			615,822			609,240			614,723
Diluted weighted average shares outstanding		707,300			741,183			717,875			737,325
Dividends declared and paid per common share	$	0.18		$	0.18		$	0.82		$	0.54

AMCON Distributing Company and Subsidiaries
Condensed Consolidated Unaudited Statements of Cash Flows
for the nine months ended June 30, 2016 and 2015
	2016			2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	4,354,180		$	4,311,587
Adjustments to reconcile net income from operations to net cash flows from operating activities:
Depreciation		1,389,756			1,435,719
Amortization		265,417			273,750
(Gain) loss on sale of property and equipment		(69,215	)		5,103
Equity-based compensation		1,050,644			910,920
Deferred income taxes		238,728			133,493
Provision (recovery) for losses on doubtful accounts		(39,000	)		193,000
Provision for losses on inventory obsolescence		2,014			132,793
Other		(5,034	)		(6,034	)
Changes in assets and liabilities:
Accounts receivable		(2,027,155	)		(207,224	)
Inventories		10,120,804			(6,393,734	)
Prepaid and other current assets		(3,320,720	)		942,531
Other assets		27,897			118,531
Accounts payable		924,567			242,760
Accrued expenses and accrued wages, salaries and bonuses		2,825			1,505,917
Income taxes payable		476,352			(1,022,572	)
Net cash flows from operating activities		13,392,060			2,576,540
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment		(1,013,988	)		(812,624	)
Proceeds from sales of property and equipment		112,157			24,000
Net cash flows from investing activities		(901,831	)		(788,624	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net payments on bank credit agreements		(7,193,768	)		(774,559	)
Principal payments on long-term debt		(262,677	)		(255,157	)
Repurchase of common stock		(4,044,437	)		—
Dividends paid on convertible preferred stock		(146,462	)		(145,928	)
Dividends on common stock		(526,076	)		(348,732	)
Withholdings on the exercise of equity-based awards		(121,348	)		(213,605	)
Net cash flows from financing activities		(12,294,768	)		(1,737,981	)
Net change in cash		195,461			49,935
Cash, beginning of period		219,536			99,922
Cash, end of period	$	414,997		$	149,857
Supplemental disclosure of cash flow information:
Cash paid during the period for interest	$	576,681		$	677,163
Cash paid during the period for income taxes		2,525,920			3,944,080
Supplemental disclosure of non-cash information:
Equipment acquisitions classified as accounts payable		51,874			8,483
Issuance of common stock in connection with the vesting and exercise of equity-based awards		1,174,981			1,240,842

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