AMCON Distributing : Q2 2019 Earnings

AMCON DISTRIBUTING COMPANY REPORTS FULLY DILUTED EARNINGS PER SHARE OF

$2.45 FOR THE QUARTER ENDED MARCH 31, 2019

NEWS RELEASE

Omaha, NE, April 18, 2019 - AMCON Distributing Company ("AMCON") (NYSE American: DIT), an Omaha, Nebraska based consumer products company is pleased to announce fully diluted earnings per share of $2.45 on net income available to common shareholders of $1.5 million for its second fiscal quarter ended March 31, 2019.

"AMCON's newly enhanced distribution facility in Bismarck, North Dakota began shipping this quarter. Our management team and associates did a tremendous job in completing this project in a challenging weather environment. We have been a long-term service provider in the northern marketplace and this new investment reinforces our commitment to the success of our customers," said Christopher H. Atayan, AMCON's Chairman and Chief Executive Officer. He further noted, "Our organization continues its close collaboration with customers to design leading edge foodservice programs that are competitive with quick-service restaurants. Additionally, we are actively seeking strategic acquisition opportunities that we believe can benefit from AMCON's portfolio of technologies and services."

"We are actively evaluating a number of additional strategic facility initiatives to support the growth needs of our customer base. Our emphasis on first class service and reliability is the foundation of our position as a leader in the convenience distribution industry. As such, we will continue to make investments in people, facilities and equipment necessary for sustained excellence," said Andrew C. Plummer, AMCON's President and Chief Operating Officer. He further noted, "Our Healthy Edge Retail Group management team is implementing a comprehensive merchandising and point of sale system update to our base of retail health food stores. These initiatives are in support of our objective of being a total wellness solution for consumers." Mr. Plummer further added, "We were pleased to close March 31, 2019 with total shareholders' equity of $64.8 million and consolidated debt of $21.4 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 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.comin its Midwest market, and Chamberlin's Market & Cafe www.chamberlins.comand Earth Origins Market www.earthoriginsmarket.comin its Florida market.

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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

For Further Information Contact:

Christopher H. Atayan

AMCON Distributing Company

Ph 402-331-3727

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AMCON Distributing Company and Subsidiaries

Condensed Consolidated Balance Sheets

March 31, 2019 and September 30, 2018

			March			September
			2019			2018
			(Unaudited)
ASSETS
Current assets:
Cash	$		642,116	$		520,644
Accounts receivable, less allowance for doubtful accounts of $0.9 million at March
2019 and September 2018			28,016,243			31,428,845
Inventories, net			57,650,559			78,869,615
Income taxes receivable			-			272,112
Prepaid and other current assets			7,343,497			4,940,775
Total current assets			93,652,415			116,031,991
Property and equipment, net			16,915,409			15,768,484
Goodwill			4,436,950			4,436,950
Other intangible assets, net			3,383,686			3,414,936
Other assets			293,896			301,793
Total assets		$	118,682,356		$	139,954,154
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable	$		20,570,694	$		20,826,834
Accrued expenses			7,106,050			8,556,620
Accrued wages, salaries and bonuses			2,683,504			3,965,733
Income taxes payable			1,630			-
Current maturities of long-term debt			803,612			1,096,306
Total current liabilities			31,165,490			34,445,493
Credit facility			17,224,197			35,428,597
Deferred income tax liability, net			2,009,719			1,782,801
Long-term debt, less current maturities			3,394,116			3,658,391
Other long-term liabilities			40,033			38,055
Shareholders' equity:
Preferred stock, $.01 par value, 1,000,000 shares authorized			-			-
Common stock, $.01 par value, 3,000,000 shares authorized, 592,768 shares
outstanding at March 2019 and 615,777 shares outstanding at September 2018			8,561			8,441
Additional paid-in capital			23,148,372			22,069,098
Retained earnings			66,203,466			63,848,030
Treasury stock at cost			(24,511,598)			(21,324,752)
Total shareholders' equity			64,848,801			64,600,817
Total liabilities and shareholders' equity		$	118,682,356		$	139,954,154

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AMCON Distributing Company and Subsidiaries Condensed Consolidated Unaudited Statements of Operations for the three and six months ended March 31, 2019 and 2018

		For the three months ended March						For the six months ended March
		2019			2018			2019			2018
Sales (including excise taxes of $82.9 million and $83.1
million, and $175.9 million and $171.7 million
respectively)	$	310,715,873		$	295,207,286		$	655,449,793		$	610,720,495
Cost of sales		290,126,453			278,141,110			614,228,235			575,462,557
Gross profit		20,589,420			17,066,176			41,221,558			35,257,938
Selling, general and administrative expenses		17,391,681			15,619,420			35,348,896			31,973,028
Depreciation and amortization		641,228			537,903			1,249,236			1,068,908
		18,032,909			16,157,323			36,598,132			33,041,936
Operating income		2,556,511			908,853			4,623,426			2,216,002
Other expense (income):
Interest expense		396,576			313,364			719,526			515,555
Other (income), net		(36,280)			(27,410)			(39,636)			(32,543)
		360,296			285,954			679,890			483,012
Income from operations before income taxes		2,196,215			622,899			3,943,536			1,732,990
Income tax expense (benefit)		673,000			284,000			1,175,000			(86,000)
Net income available to common shareholders	$	1,523,215		$	338,899		$	2,768,536		$	1,818,990
Basic earnings per share available to common
shareholders	$	2.49		$	0.49		$	4.50		$	2.64
Diluted earnings per share available to common
shareholders	$	2.45		$	0.49		$	4.44		$	2.61
Basic weighted average shares outstanding		611,824			689,480			614,874			688,570
Diluted weighted average shares outstanding		620,769			697,406			623,848			697,563
Dividends declared and paid per common share	$	0.46		$	0.46		$	0.64		$	0.64

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AMCON Distributing Company and Subsidiaries

Condensed Consolidated Unaudited Statements of Shareholders' Equity

for the three and six months ended March 31, 2019 and 2018

															Additional
	Common Stock						Treasury Stock								Paid in				Retained
	Shares			Amount			Shares				Amount				Capital				Earnings				Total
THREE MONTHS ENDED
MARCH 2018
Balance, January 1, 2018	844,089	$		8,441		(153,603)				$	(13,616,477)			$	22,009,620		$		62,086,133			$	70,487,717
Dividends on common stock, $0.18
per share	-			-			-				-				-				(128,990)				(128,990)
Compensation expense and issuance
of stock in connection with equity-
based awards	-			-			-				-				26,942				-				26,942
Repurchase of common stock	-			-		(6,482)					(629,353)				-				-				(629,353)
Net income	-			-			-				-				-				338,899				338,899
Balance, March 31, 2018	844,089	$		8,441		(160,085)				$	(14,245,830)			$	22,036,562		$		62,296,042			$	70,095,215
THREE MONTHS ENDED
MARCH 2019
Balance, January 1, 2019	856,039	$		8,561		(238,744)				$	(22,242,837)			$	23,110,713		$		64,796,415			$	65,672,852
Dividends on common stock, $0.18
per share	-			-			-				-				-				(116,164)				(116,164)
Compensation expense and issuance
of stock in connection with equity-
based awards	-			-			-				-				37,659				-				37,659
Repurchase of common stock	-			-		(24,527)					(2,268,761)				-				-				(2,268,761)
Net income	-			-			-				-				-				1,523,215				1,523,215
Balance, March 31, 2019	856,039	$		8,561		(263,271)				$	(24,511,598)			$	23,148,372		$		66,203,466			$	64,848,801
															Additional
	Common Stock						Treasury Stock								Paid in				Retained
	Shares			Amount			Shares				Amount				Capital				Earnings				Total
SIX MONTHS ENDED
MARCH 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, $0.64
per share	-			-			-				-				-				(458,859)				(458,859)
Compensation expense and issuance
of stock in connection with equity-
based awards	12,651			127			-				-				1,210,643				-				1,210,770
Repurchase of common stock	-			-		(6,653)					(644,528)				-				-				(644,528)
Net income	-			-			-				-				-				1,818,990				1,818,990
Balance, March 31, 2018	844,089	$		8,441		(160,085)				$	(14,245,830)			$	22,036,562		$		62,296,042			$	70,095,215
SIX MONTHS ENDED
MARCH 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, $0.64
per share	-			-			-				-				-				(413,100)				(413,100)
Compensation expense and issuance
of stock in connection with equity-
based awards	11,950			120			-				-				1,079,274				-				1,079,394
Repurchase of common stock	-			-		(34,959)					(3,186,846)				-				-				(3,186,846)
Net income	-			-			-				-				-				2,768,536				2,768,536
Balance, March 31, 2019	856,039		$	8,561			(263,271)			$	(24,511,598)			$	23,148,372		$		66,203,466			$	64,848,801

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