AMCON Distributing Company Reports Fully Diluted Earnings Per Share of $4.26 for the Fiscal Year Ended September 30, 2017

AMCON Distributing Company ("AMCON”) (NYSE MKT:DIT), an Omaha, Nebraska based consumer products company is pleased to announce fully diluted earnings per share of $4.26 on net income available to common shareholders of $2.9 million for the fiscal year ended September 30, 2017. AMCON earned $1.48 per fully diluted share on net income available to common shareholders of $1.0 million for the fourth fiscal quarter ended September 30, 2017.

"We are pleased with our results for fiscal 2017. AMCON continues to be a leader in the convenience distribution industry as a result of our relentless efforts to provide first class customer service and reliability. As the convenience store industry evolves and becomes increasingly complex, the wide variety of programs and services we offer serve to competitively differentiate our Company,” said Christopher H. Atayan, AMCON’s Chairman and Chief Executive Officer. He further noted, "We are diligently implementing our focused strategic plan anchored by our customer centric philosophy enabling our management team to navigate a challenging business environment. Our objective is to deliver attractive risk adjusted rates of return on the capital we employ. We expect an enhanced level of capital expenditures in the coming years to support our efforts in foodservice, information technology, expansion of our territory, and the addition of retail health food stores. In addition, we are seeking acquisitions in wholesale and foodservice distribution that further our strategic objectives.”

The wholesale distribution segment reported revenues of $1.2 billion and operating income of $13.7 million for fiscal 2017, and revenues and operating income of $331.9 million and $3.9 million, respectively, for the fourth fiscal quarter of fiscal 2017. The retail health food segment reported revenues of $25.4 million and an operating loss of $1.8 million for fiscal 2017, and revenue of $6.1 million and an operating loss of $0.7 million for the fourth quarter of fiscal 2017.

"Our wholesale customers are growing both organically and from acquisitions. To support this growth, we are actively expanding our service territory,” said Kathleen M. Evans, President of AMCON’s Wholesale Distribution Segment. Evans continued, "Our fall trade shows provided considerable momentum as we enter fiscal 2018. We embrace a long term approach to building our customers’ business which is mutually beneficial.”

"Our new flagship Chamberlin’s store, which we opened early in fiscal 2017 in the Orlando market, has been a commercial success. We have recently opened a second store in the Lakeland market which builds off the momentum we have made in the Florida market as a function of our brand reimaging and social media initiatives in this market,” said Clifford Ginn, President of AMCON’s Retail Health Food Segment. "We will continue to invest in new stores, store remodeling, and marketing as we seek to address the competitive challenges we face in the industry. Our Midwestern markets operate in a highly challenging environment.”

"We are very focused on increasing our shareholders’ equity per share, maintaining high levels of balance sheet liquidity and generating free cash flow. At September 30, 2017, our shareholders’ equity was $68.2 million, resulting in adjusted book value per share of $99.24. We turned our inventory twenty-two times and consolidated debt was $32.1 million. At its lowest point during fiscal 2017 our consolidated debt was $3.7 million,” said Andrew C. Plummer, AMCON’s Chief Financial Officer. "We continue to place a high priority on the development of information technology for internal and external purposes. These are important investments for the future of our business. In addition, we are exploring additional upgrades and expansion of our distribution facilities and retail stores system wide,” added Plummer.

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

The Company’s quarterly earnings per share are based on weighted average shares outstanding for the quarter; therefore the sum of the quarters may not equal the full year earnings per share amount.

AMCON Distributing Company and Subsidiaries

GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures

The financial measure of adjusted book value per share included in this press release ("adjusted book value per share”) has been determined by methods other than in accordance with U.S. generally accepted accounting principles ("GAAP”). Management believes that this non-GAAP financial measurement reflects an additional way of viewing aspects of the Company’s business that, when viewed together with its financial results computed in accordance with GAAP, provides a more complete understanding of factors affecting historical financial performance of the Company. This measure is important to investors interested in determining the amount of book value per share if all potentially dilutive shares were exercised or vested and outstanding. This non-GAAP financial measurement is not intended to be a substitute for the comparable GAAP measurements and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP.

The Company has defined the non-GAAP financial measure of adjusted book value per share as follows:

• "Adjusted book value per share” is defined as total shareholders’ equity increased by the impact of proceeds from the exercise of all stock options and vesting of restricted stock units divided by total common shares outstanding plus common shares issuable upon the exercise of all stock options and vesting of restricted stock units.”

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