AMCON Distributing (DIT) 10-Q 18 Jul 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Jun. 30, 2018	Jul. 16, 2018
Document and Entity Information
Entity Registrant Name	AMCON DISTRIBUTING CO
Entity Central Index Key	928,465
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		615,988
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Jun. 30, 2018	Sep. 30, 2017
Current assets:
Cash	$ 275,320	$ 523,065
Accounts receivable, less allowance for doubtful accounts of $0.8 million at both June 2018 and September 2017	33,943,794	30,690,403
Inventories, net	51,009,431	72,909,996
Prepaid and other current assets	10,062,688	4,218,811
Total current assets	95,291,233	108,342,275
Property and equipment, net	13,715,318	13,307,986
Goodwill	6,349,827	6,349,827
Other intangible assets, net	3,430,561	3,494,311
Other assets	315,416	310,488
Total assets	119,102,355	131,804,887
Current liabilities:
Accounts payable	19,122,752	17,631,552
Accrued expenses	8,127,663	7,553,089
Accrued wages, salaries and bonuses	2,669,243	3,477,966
Income taxes payable	555,820	544,069
Current maturities of long-term debt	382,209	373,645
Total current liabilities	30,857,687	29,580,321
Credit facility	20,485,436	29,037,182
Deferred income tax liability, net	1,663,832	2,336,263
Long-term debt, less current maturities	2,360,276	2,648,179
Other long-term liabilities	37,067	34,100
Shareholders' equity:
Preferred stock, $0.01 par value, 1,000,000 shares authorized
Common stock, $.01 par value, 3,000,000 shares authorized, 615,988 shares outstanding at June 2018 and 678,006 shares outstanding at September 2017	8,441	8,314
Additional paid-in capital	22,042,155	20,825,919
Retained earnings	62,953,155	60,935,911
Treasury stock at cost	(21,305,694)	(13,601,302)
Total shareholders' equity	63,698,057	68,168,842
Total liabilities and shareholders' equity	$ 119,102,355	$ 131,804,887

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2018	Sep. 30, 2017
Condensed Consolidated Balance Sheets
Accounts receivable, allowance for doubtful accounts (in dollars)	$ 0.8	$ 0.8
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	1,000,000	1,000,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	3,000,000	3,000,000
Common stock, shares outstanding	615,988	678,006

Condensed Consolidated Unaudite

Condensed Consolidated Unaudited Statements of Operations - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Condensed Consolidated Unaudited Statements of Operations
Sales (including excise taxes of $96.2 million and $95.1 million, and $267.9 million and $271.8 million, respectively)	$ 349,043,200	$ 332,842,200	$ 959,763,695	$ 936,994,299
Cost of sales	329,930,190	314,818,453	905,392,747	883,180,664
Gross profit	19,113,010	18,023,747	54,370,948	53,813,635
Selling, general and administrative expenses	17,008,355	16,587,055	48,981,383	48,105,878
Depreciation and amortization	614,710	474,890	1,683,618	1,531,292
Total operating expenses	17,623,065	17,061,945	50,665,001	49,637,170
Operating income	1,489,945	961,802	3,705,947	4,176,465
Other expense (income):
Interest expense	261,510	180,266	777,065	545,719
Other (income), net	(18,615)	(16,513)	(51,158)	(37,250)
Total other expenses (income)	242,895	163,753	725,907	508,469
Income from operations before income tax expense	1,247,050	798,049	2,980,040	3,667,996
Income tax expense	462,000	413,000	376,000	1,748,000
Net income available to common shareholders	$ 785,050	$ 385,049	$ 2,604,040	$ 1,919,996
Basic earnings per share available to common shareholders (in dollars per share)	$ 1.21	$ 0.57	$ 3.85	$ 2.82
Diluted earnings per share available to common shareholders (in dollars per share)	$ 1.18	$ 0.56	$ 3.79	$ 2.78
Basic weighted average shares outstanding (in shares)	651,170	678,938	676,103	679,858
Diluted weighted average shares outstanding (in shares)	664,688	691,701	686,576	690,840
Dividends declared per common share	$ 0.18	$ 0.18	$ 0.82	$ 0.82
Dividends paid per common share	$ 0.18	$ 0.18	$ 0.82	$ 0.82

Condensed Consolidated Unaudit5

Condensed Consolidated Unaudited Statements of Operations (Parenthetical) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Condensed Consolidated Unaudited Statements of Operations
Sales, excise taxes	$ 96.2	$ 95.1	$ 267.9	$ 271.8

Condensed Consolidated Unaudit6

Condensed Consolidated Unaudited Statements of Cash Flows - USD ($)	9 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 2,604,040	$ 1,919,996
Adjustments to reconcile net income from operations to net cash flows from operating activities:
Depreciation	1,619,868	1,332,542
Amortization	63,750	198,750
Gain on sale of property and equipment	(5,300)	(30,854)
Equity-based compensation	957,656	1,193,005
Deferred income taxes	(672,431)	120,367
Provision for losses on doubtful accounts	23,000	42,000
Inventory allowance	(267,389)	4,852
Other	2,967	2,296
Changes in assets and liabilities:
Accounts receivable	(3,276,391)	(1,044,423)
Inventories	22,167,954	(701,279)
Prepaid and other current assets	(5,843,877)	771,870
Other assets	(4,928)	(38,358)
Accounts payable	1,584,358	322,325
Accrued expenses and accrued wages, salaries and bonuses	125,758	(659,813)
Income taxes payable	11,751	7,059
Net cash flows from operating activities	19,090,786	3,440,335
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	(2,120,358)	(1,761,431)
Proceeds from sales of property and equipment	5,300	42,655
Net cash flows from investing activities	(2,115,058)	(1,718,776)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under revolving credit facility	1,043,415,401	950,104,143
Repayments under revolving credit facility	(1,051,967,147)	(950,313,271)
Principal payments on long-term debt	(279,339)	(271,031)
Repurchase of common stock	(7,704,392)	(1,038,060)
Dividends on common stock	(586,796)	(579,848)
Withholdings on the exercise of equity-based awards	(101,200)	(107,082)
Net cash flows from financing activities	(17,223,473)	(2,205,149)
Net change in cash	(247,745)	(483,590)
Cash, beginning of period	523,065	605,380
Cash, end of period	275,320	121,790
Supplemental disclosure of cash flow information:
Cash paid during the period for interest	764,557	545,719
Cash paid during the period for income taxes	1,036,680	1,620,574
Supplemental disclosure of non-cash information:
Equipment acquisitions classified in accounts payable	8,203	9,881
Issuance of common stock in connection with the vesting and exercise of equity-based awards	$ 1,183,091	$ 1,262,763

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION	9 Months Ended
	Jun. 30, 2018
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION	1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION AMCON Distributing Company and Subsidiaries (“AMCON” or the “Company”) operate two business segments: · Our wholesale distribution segment (“Wholesale Segment”) distributes consumer products and provides a full range of programs and services to our customers that are focused on helping them manage their business and increase their profitability. We primarily operate in the Central, Rocky Mountain, and Southern regions of the United States. · Our retail health food segment (“Retail Segment”) operates fourteen health food retail stores located throughout the Midwest and Florida. WHOLESALE SEGMENT Our Wholesale Segment is one of the largest wholesale distributors in the United States serving approximately 4,000 retail outlets including convenience stores, grocery stores, liquor stores, drug stores, and tobacco shops. We currently distribute over 16,000 different consumer products, including cigarettes and tobacco products, candy and other confectionery, beverages, groceries, paper products, health and beauty care products, frozen and chilled products and institutional foodservice products. Convenience stores represent our largest customer category. In November 2017, Convenience Store News ranked us as the seventh (7th) largest convenience store distributor in the United States based on annual sales. Our wholesale business offers retailers the ability to take advantage of manufacturer and Company sponsored sales and marketing programs, merchandising and product category management services, and the use of information systems and data services that are focused on minimizing retailers’ investment in inventory, while seeking to maximize their sales and profits. In addition, our wholesale distributing capabilities provide valuable services to both manufacturers of consumer products and convenience retailers. Manufacturers benefit from our broad retail coverage, inventory management, efficiency in processing small orders, and frequency of deliveries. Convenience retailers benefit from our distribution capabilities by gaining access to a broad product line, optimizing inventory, merchandising expertise, information systems, and accessing trade credit. Our Wholesale Segment operates six distribution centers located in Illinois, Missouri, Nebraska, North Dakota, South Dakota, and Tennessee. These distribution centers, combined with cross dock facilities, include approximately 641,000 square feet of permanent floor space. Our principal suppliers include Altria, RJ Reynolds, ITG Brands, Hershey, Kelloggs, Kraft, and Mars. We also market private label lines of water, candy products, batteries, and other products. We do not maintain any long-term purchase contracts with our suppliers. RETAIL SEGMENT Our Retail Segment is a specialty retailer of natural/organic groceries and dietary supplements which focuses on providing high quality products at affordable prices, with an exceptional level of customer service and nutritional consultation. All of the products carried in our stores must meet strict quality and ingredient guidelines, and include offerings such as gluten-free and antibiotic-free groceries and meat products, as well as products containing no artificial colors, flavors, preservatives, or partially hydrogenated oils. We design our retail sites in an efficient and flexible small-store format, which emphasizes a high energy and shopper-friendly environment. We operate within the natural products retail industry, which is a subset of the U.S. grocery industry. This industry includes conventional, natural, gourmet and specialty food markets, mass and discount retailers, warehouse clubs, health food stores, dietary supplement retailers, drug stores, farmers markets, mail order and online retailers, and multi-level marketers. Our Retail Segment operates fourteen retail health food stores as Chamberlin’s Market & Café and Akin’s Natural Foods Market. These stores carry over 32,000 different national and regionally branded and private label products including high-quality natural, organic, and specialty foods consisting of produce, baked goods, frozen foods, nutritional supplements, personal care items, and general merchandise. Chamberlin’s, which was established in 1935, operates seven stores in and around Orlando, Florida. Akin’s, which was also established in 1935, has a total of seven locations in Arkansas, Missouri, Nebraska, and Oklahoma. FINANCIAL STATEMENTS The Company’s fiscal year ends on September 30. The results for the interim period included with this Quarterly Report may not be indicative of the results which could be expected for the entire fiscal year. All significant intercompany transactions and balances have been eliminated in consolidation. Certain information and footnote disclosures normally included in our annual financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) have been condensed or omitted. In the opinion of management, the accompanying condensed consolidated unaudited financial statements (“financial statements”) contain all adjustments necessary to fairly present the financial information included herein, such as adjustments consisting of normal recurring items. The Company believes that although the disclosures contained herein are adequate to prevent the information presented from being misleading, these financial statements should be read in conjunction with the Company’s annual audited consolidated financial statements for the fiscal year ended September 30, 2017, as filed with the Securities and Exchange Commission on Form 10-K. For purposes of this report, unless the context indicates otherwise, all references to “we”, “us”, “our”, the “Company”, and “AMCON” shall mean AMCON Distributing Company and its subsidiaries. Additionally, the three month fiscal periods ended June 30, 2018 and June 30, 2017 have been referred to throughout this quarterly report as Q3 2018 and Q3 2017, respectively. The fiscal balance sheet dates as of June 30, 2018 and September 30, 2017 have been referred to as June 2018 and September 2017, respectively. ACCOUNTING PRONOUNCEMENTS New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, "Revenue from Contracts with Customers." This ASU and related amendments supersedes the revenue recognition requirements in "Accounting Standard Codification 605 - Revenue Recognition" and most industry-specific guidance. The standard requires that entities recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which a company expects to be entitled in exchange for those goods or services. This ASU is effective for fiscal years beginning after December 15, 2017 (Fiscal 2019 for the Company), and for interim periods within that fiscal year. The Company is in the data aggregation and quantification phase of its review of this new standard, and is working to assess the impact and our approach towards adopting this ASU. In February 2016, FASB issued ASU No. 2016-02 "Leases” ("ASU 2016-02"). ASU 2016-02 requires the recognition of lease assets and lease liabilities by lessees for all leases greater than one year in duration and classified as operating leases under previous GAAP. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 (Fiscal 2020 for the Company), and for interim periods within that fiscal year. The Company is currently evaluating this ASU and its potential impact on our consolidated financial statements including the potential capitalization of all operating leases on the Company’s balance sheet. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”, which introduces a forward-looking approach, based on expected losses, to estimate credit losses on certain types of financial instruments, including trade receivables. The estimate of expected credit losses will require entities to incorporate considerations of historical information, current information and reasonable and supportable forecasts. This ASU also expands the disclosure requirements to enable users of financial statements to understand the entity’s assumptions, models and methods for estimating expected credit losses. This guidance is effective for fiscal years beginning after December 15, 2019 (fiscal 2021 for the Company) with early adoption permitted. The Company is currently reviewing this ASU and its potential impact on our consolidated financial statements. In January 2017, FASB issued ASU No. 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”). The new guidance simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. ASU 2017-04 requires goodwill impairment to be measured as the amount by which a reporting unit’s carrying amount exceeds its fair value, not to exceed the carrying amount of its goodwill. ASU 2017-04 requires prospective application and is effective for annual periods beginning after December 15, 2019 (Fiscal 2021 for the Company) with early adoption permitted. The Company is currently evaluating this ASU and its potential impact on our consolidated financial statements.

INVENTORIES

INVENTORIES	9 Months Ended
	Jun. 30, 2018
INVENTORIES
INVENTORIES	2. INVENTORIES Inventories consisted of finished goods and are stated at the lower of cost (determined on a FIFO basis for our wholesale segment and using the retail method for our retail segment) or net realizable value. The wholesale distribution and retail health food segment inventories consist of finished products purchased in bulk quantities to be redistributed to the Company’s customers or sold at retail. Finished goods included total reserves of approximately $0.5 million at June 2018 and $0.8 million at September 2017. These reserves include the Company’s obsolescence allowance, which reflects estimated unsalable or non-refundable inventory based upon an evaluation of slow moving and discontinued products.

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS	9 Months Ended
	Jun. 30, 2018
GOODWILL AND OTHER INTANGIBLE ASSETS
GOODWILL AND OTHER INTANGIBLE ASSETS	3. GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill by reporting segment of the Company consisted of the following: June September 2018 2017 Wholesale Segment $ 4,436,950 $ 4,436,950 Retail Segment 1,912,877 1,912,877 $ 6,349,827 $ 6,349,827 Other intangible assets of the Company consisted of the following: June September 2018 2017 Trademarks and tradenames (Retail Segment) $ 3,373,269 $ 3,373,269 Customer relationships (Wholesale Segment) (less accumulated amortization of approximately $2.1 million and $2.0 million at June 2018 and September 2017, respectively) 57,292 121,042 $ 3,430,561 $ 3,494,311 Goodwill, trademarks and tradenames are considered to have indefinite useful lives and therefore no amortization has been taken on these assets. At June 2018, identifiable intangible assets considered to have finite lives were represented by customer relationships which are being amortized over eight years. These intangible assets are evaluated for accelerated attrition or amortization adjustments if warranted. At June 2018, goodwill allocated to our wholesale and retail reporting units totaled $4.4 million and $1.9 million, respectively. In conjunction with the Company’s annual impairment testing for the fiscal year ended September 30, 2017, the Company determined that the estimated fair value of these reporting units exceeded their carrying value at September 30, 2017. There has been no material changes to this assessment by the Company through June 2018. Estimated future amortization expense related to identifiable intangible assets with finite lives is as follows at June 2018: June 2018 Fiscal 2018 (1) $ 15,625 Fiscal 2019 41,667 $ 57,292 (1) Represents amortization for the remaining three months of Fiscal 2018.

DIVIDENDS

DIVIDENDS	9 Months Ended
	Jun. 30, 2018
DIVIDENDS
DIVIDENDS	4. DIVIDENDS The Company paid cash dividends on its common stock during each of the three and nine month periods ended June 2017 and June 2018 of $0.1 million and $0.6 million, respectively.

EARNINGS PER SHARE

EARNINGS PER SHARE	9 Months Ended
	Jun. 30, 2018
EARNINGS PER SHARE
EARNINGS PER SHARE	5. EARNINGS PER SHARE Basic earnings per share available to common shareholders is calculated by dividing net income less preferred stock dividend requirements by the weighted average common shares outstanding for each period. Diluted earnings per share available to common shareholders is calculated by dividing income from operations less preferred stock dividend requirements (when anti-dilutive) by the sum of the weighted average common shares outstanding and the weighted average dilutive options. For the three months ended June 2018 2017 Basic Diluted Basic Diluted Weighted average common shares outstanding 651,170 651,170 678,938 678,938 Weighted average net additional shares outstanding assuming dilutive options exercised and proceeds used to purchase treasury stock and conversion of preferred stock (1) — 13,518 — 12,763 Weighted average number of shares outstanding 651,170 664,688 678,938 691,701 Net income available to common shareholders $ 785,050 $ 785,050 $ 385,049 $ 385,049 Net earnings per share available to common shareholders $ 1.21 $ 1.18 $ 0.57 $ 0.56 (1) Diluted earnings per share calculation includes all stock options and restricted stock units deemed to be dilutive. For the nine months ended June 2018 2017 Basic Diluted Basic Diluted Weighted average common shares outstanding 676,103 676,103 679,858 679,858 Weighted average net additional shares outstanding assuming dilutive options exercised and proceeds used to purchase treasury stock and conversion of preferred stock (1) — 10,473 — 10,982 Weighted average number of shares outstanding 676,103 686,576 679,858 690,840 Net income available to common shareholders $ 2,604,040 $ 2,604,040 $ 1,919,996 $ 1,919,996 Net earnings per share available to common shareholders $ 3.85 $ 3.79 $ 2.82 $ 2.78 (1) Diluted earnings per share calculation includes all stock options and restricted stock units deemed to be dilutive.

DEBT

DEBT	9 Months Ended
	Jun. 30, 2018
DEBT
DEBT	6. DEBT The Company primarily finances its operations through a credit facility agreement (the “Facility”) and long-term debt agreements with banks. The Facility is provided through Bank of America acting as the senior agent and with BMO Harris Bank participating in a loan syndication. The Facility included the following significant terms at June 2018: · A November 2022 maturity date without a penalty for prepayment. · $70.0 million revolving credit limit. · Loan accordion allowing the Company to increase the size of the credit facility agreement by $25.0 million. · A provision providing an additional $10.0 million of credit advances for certain inventory purchases. · Evergreen renewal clause automatically renewing the agreement for one year unless either the borrower or lender provides written notice terminating the agreement at least 90 days prior to the end of any original or renewal term of the agreement. · The Facility bears interest at either the bank’s prime rate, or at LIBOR plus 125 - 150 basis points depending on certain credit facility utilization measures, at the election of the Company. · Lending limits subject to accounts receivable and inventory limitations. · An unused commitment fee equal to one-quarter of one percent ( 1 / 4 %) per annum on the difference between the maximum loan limit and average monthly borrowings. · Secured by collateral including all of the Company’s equipment, intangibles, inventories, and accounts receivable. · A financial covenant requiring a fixed charge coverage ratio of at least 1.0 as measured by the previous twelve month period then ended only if excess availability falls below 10% of the maximum loan limit as defined in the credit agreement. The Company’s availability has not fallen below 10% of the maximum loan limit and the Company’s fixed charge ratio is over 1.0 for the trailing twelve months. · Provides that the Company may pay up to $2.0 million of dividends on its common stock provided the Company meets certain excess availability and proforma fixed charge coverage ratios and is not in default before or after the dividend. Cross Default and Co-Terminus Provisions The Company owns real estate in Bismarck, ND, Quincy, IL, and Rapid City, SD, which is financed through a single term loan with BMO Harris Bank (the “Real Estate Loan”) which is also a participant lender on the Company’s revolving line of credit. The Real Estate Loan contains cross default provisions which cause it to be considered in default if the loans where BMO is a lender, including the revolving credit facility, is in default. There were no such cross defaults at June 2018. In addition, the Real Estate Loan contains co-terminus provisions which require all loans with BMO to be paid in full if any of the loans are paid in full prior to the end of their specified terms. Other AMCON has issued a $0.5 million letter of credit to its workers’ compensation insurance carrier as part of its self‑insured loss control program.

INCOME TAXES

INCOME TAXES	9 Months Ended
	Jun. 30, 2018
INCOME TAXES
INCOME TAXES	7. INCOME TAXES The Company’s results of operations for the nine months ended June 2018 included the impact of the enactment of the Tax Cuts and Jobs Act (“Tax Reform”) which was signed into law on December 22, 2017. Among numerous provisions included in the new law was a reduction in the corporate federal income tax rate from 35% to 21% which resulted in a $0.9 million income tax benefit to the Company as reflected in our Statement of Operations for the nine months ended June 2018. This tax benefit primarily resulted from applying the new lower federal income tax rates to the Company’s net long term deferred tax liabilities recorded on its Consolidated Balance Sheet. Because of the effective date of the new tax law in relation to the Company’s fiscal year (October 1st - September 30th), the Company’s fiscal 2018 results from operations will be taxed at a lower blended federal rate of approximately 24% for fiscal 2018, which reflects a portion of fiscal 2018 at the old federal tax rate and a portion of fiscal 2018 at the new federal tax rate. The final impact of Tax Reform may differ due to and among other things, changes in interpretations, assumptions made by the Company, the issuance of additional guidance, and actions Company may take as a result of Tax Reform.

BUSINESS SEGMENTS

BUSINESS SEGMENTS	9 Months Ended
	Jun. 30, 2018
BUSINESS SEGMENTS
BUSINESS SEGMENTS	8. BUSINESS SEGMENTS The Company has two reportable business segments: the wholesale distribution of consumer products and the retail sale of health and natural food products. The retail health food stores’ operations are aggregated to comprise the Retail Segment because such operations have similar economic characteristics, as well as similar characteristics with respect to the nature of products sold, the type and class of customers for the health food products and the methods used to sell the products. Included in the “Other” column are intercompany eliminations, and assets held and charges incurred by our holding company. The segments are evaluated on revenues, gross margins, operating income (loss), and income before taxes. Wholesale Retail Segment Segment Other Consolidated THREE MONTHS ENDED JUNE 2018 External revenues: Cigarettes $ 248,357,752 $ — $ — $ 248,357,752 Tobacco 44,598,270 — — 44,598,270 Confectionery 21,437,432 — — 21,437,432 Health food — 6,246,691 — 6,246,691 Foodservice & other 28,403,055 — — 28,403,055 Total external revenue 342,796,509 6,246,691 — 349,043,200 Depreciation 284,609 314,476 — 599,085 Amortization 15,625 — — 15,625 Operating income (loss) 4,245,654 (1,078,191) (1,677,518) 1,489,945 Interest expense 22,585 — 238,925 261,510 Income (loss) from operations before taxes 4,239,525 (1,076,032) (1,916,443) 1,247,050 Total assets 104,905,403 13,994,013 202,939 119,102,355 Capital expenditures 468,995 284,596 — 753,591 THREE MONTHS ENDED JUNE 2017 External revenue: Cigarettes $ 236,433,449 $ — $ — $ 236,433,449 Tobacco 41,478,941 — — 41,478,941 Confectionery 22,024,887 — — 22,024,887 Health food — 6,376,725 — 6,376,725 Foodservice & other 26,528,198 — — 26,528,198 Total external revenue 326,465,475 6,376,725 — 332,842,200 Depreciation 292,294 116,345 — 408,639 Amortization 66,251 — — 66,251 Operating income (loss) 3,096,128 (615,276) (1,519,050) 961,802 Interest expense 25,279 — 154,987 180,266 Income (loss) from operations before taxes 3,082,982 (610,896) (1,674,037) 798,049 Total assets 98,406,083 14,135,564 167,671 112,709,318 Capital expenditures 109,648 813,888 — 923,536 Wholesale Retail Segment Segment Other Consolidated NINE MONTHS ENDED JUNE 2018 External revenue: Cigarettes $ 679,812,016 $ — $ — $ 679,812,016 Tobacco 125,776,543 — — 125,776,543 Confectionery 57,210,816 — — 57,210,816 Health food — 19,349,676 — 19,349,676 Foodservice & other 77,614,644 — — 77,614,644 Total external revenue 940,414,019 19,349,676 — 959,763,695 Depreciation 919,236 700,632 — 1,619,868 Amortization 63,750 — — 63,750 Operating income (loss) 9,966,031 (1,744,717) (4,515,367) 3,705,947 Interest expense 69,107 — 707,958 777,065 Income (loss) from operations before taxes 9,938,081 (1,737,416) (5,220,625) 2,980,040 Total assets 104,905,403 13,994,013 202,939 119,102,355 Capital expenditures 1,137,117 983,241 — 2,120,358 NINE MONTHS ENDED JUNE 2017 External revenue: Cigarettes $ 667,849,390 $ — $ — $ 667,849,390 Tobacco 117,535,875 — — 117,535,875 Confectionery 58,606,239 — — 58,606,239 Health food — 19,334,087 — 19,334,087 Foodservice & other 73,668,708 — — 73,668,708 Total external revenue 917,660,212 19,334,087 — 936,994,299 Depreciation 981,232 351,310 — 1,332,542 Amortization 198,750 — — 198,750 Operating income (loss) 9,802,019 (1,122,951) (4,502,603) 4,176,465 Interest expense 77,100 — 468,619 545,719 Income (loss) from operations before taxes 9,749,503 (1,110,284) (4,971,223) 3,667,996 Total assets 98,406,083 14,135,564 167,671 112,709,318 Capital expenditures 429,892 1,331,539 — 1,761,431

COMMON STOCK REPURCHASE

COMMON STOCK REPURCHASE	9 Months Ended
	Jun. 30, 2018
COMMON STOCK REPURCHASE
COMMON STOCK REPURCHASE	9. COMMON STOCK REPURCHASE The Company repurchased a total of 68,016 and 74,669 common shares during the three and nine month periods ended June 30, 2018, respectively, for cash totaling approximately $7.1 million and $7.7 million, respectively, and 11,104 common shares during the nine month period ended June 30, 2017 for cash totaling approximately $1.0 million. The Company made no share repurchases during Q3 2017. All repurchased shares were recorded in treasury stock at cost.

SUBSEQUENT EVENT

SUBSEQUENT EVENT	9 Months Ended
	Jun. 30, 2018
SUBSEQUENT EVENT
SUBSEQUENT EVENT	10. SUBSEQUENT EVENT In July 2018, the Company’s wholly owned subsidiary, The Healthy Edge, Inc., through its newly formed wholly owned subsidiary, EOM Acquisition Corp, closed a transaction to acquire and operate eight leased retail health food stores located in Florida. In this transaction, EOM Acquisition Corp. will pay approximately $0.7 million in four installments through July 2019. The transaction will be funded through the Company’s existing credit facility. The acquisition expands the Company’s strategic footprint in the Florida market and enhances its ability to service customers in that region.

SUMMARY OF SIGNIFICANT ACCOUN17

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION (Policies)	9 Months Ended
	Jun. 30, 2018
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION
WHOLESALE SEGMENT AND RETAIL SEGMENT	WHOLESALE SEGMENT Our Wholesale Segment is one of the largest wholesale distributors in the United States serving approximately 4,000 retail outlets including convenience stores, grocery stores, liquor stores, drug stores, and tobacco shops. We currently distribute over 16,000 different consumer products, including cigarettes and tobacco products, candy and other confectionery, beverages, groceries, paper products, health and beauty care products, frozen and chilled products and institutional foodservice products. Convenience stores represent our largest customer category. In November 2017, Convenience Store News ranked us as the seventh (7th) largest convenience store distributor in the United States based on annual sales. Our wholesale business offers retailers the ability to take advantage of manufacturer and Company sponsored sales and marketing programs, merchandising and product category management services, and the use of information systems and data services that are focused on minimizing retailers’ investment in inventory, while seeking to maximize their sales and profits. In addition, our wholesale distributing capabilities provide valuable services to both manufacturers of consumer products and convenience retailers. Manufacturers benefit from our broad retail coverage, inventory management, efficiency in processing small orders, and frequency of deliveries. Convenience retailers benefit from our distribution capabilities by gaining access to a broad product line, optimizing inventory, merchandising expertise, information systems, and accessing trade credit. Our Wholesale Segment operates six distribution centers located in Illinois, Missouri, Nebraska, North Dakota, South Dakota, and Tennessee. These distribution centers, combined with cross dock facilities, include approximately 641,000 square feet of permanent floor space. Our principal suppliers include Altria, RJ Reynolds, ITG Brands, Hershey, Kelloggs, Kraft, and Mars. We also market private label lines of water, candy products, batteries, and other products. We do not maintain any long-term purchase contracts with our suppliers. RETAIL SEGMENT Our Retail Segment is a specialty retailer of natural/organic groceries and dietary supplements which focuses on providing high quality products at affordable prices, with an exceptional level of customer service and nutritional consultation. All of the products carried in our stores must meet strict quality and ingredient guidelines, and include offerings such as gluten-free and antibiotic-free groceries and meat products, as well as products containing no artificial colors, flavors, preservatives, or partially hydrogenated oils. We design our retail sites in an efficient and flexible small-store format, which emphasizes a high energy and shopper-friendly environment. We operate within the natural products retail industry, which is a subset of the U.S. grocery industry. This industry includes conventional, natural, gourmet and specialty food markets, mass and discount retailers, warehouse clubs, health food stores, dietary supplement retailers, drug stores, farmers markets, mail order and online retailers, and multi-level marketers. Our Retail Segment operates fourteen retail health food stores as Chamberlin’s Market & Café and Akin’s Natural Foods Market. These stores carry over 32,000 different national and regionally branded and private label products including high-quality natural, organic, and specialty foods consisting of produce, baked goods, frozen foods, nutritional supplements, personal care items, and general merchandise. Chamberlin’s, which was established in 1935, operates seven stores in and around Orlando, Florida. Akin’s, which was also established in 1935, has a total of seven locations in Arkansas, Missouri, Nebraska, and Oklahoma.
FINANCIAL STATEMENTS	FINANCIAL STATEMENTS The Company’s fiscal year ends on September 30. The results for the interim period included with this Quarterly Report may not be indicative of the results which could be expected for the entire fiscal year. All significant intercompany transactions and balances have been eliminated in consolidation. Certain information and footnote disclosures normally included in our annual financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) have been condensed or omitted. In the opinion of management, the accompanying condensed consolidated unaudited financial statements (“financial statements”) contain all adjustments necessary to fairly present the financial information included herein, such as adjustments consisting of normal recurring items. The Company believes that although the disclosures contained herein are adequate to prevent the information presented from being misleading, these financial statements should be read in conjunction with the Company’s annual audited consolidated financial statements for the fiscal year ended September 30, 2017, as filed with the Securities and Exchange Commission on Form 10-K. For purposes of this report, unless the context indicates otherwise, all references to “we”, “us”, “our”, the “Company”, and “AMCON” shall mean AMCON Distributing Company and its subsidiaries. Additionally, the three month fiscal periods ended June 30, 2018 and June 30, 2017 have been referred to throughout this quarterly report as Q3 2018 and Q3 2017, respectively. The fiscal balance sheet dates as of June 30, 2018 and September 30, 2017 have been referred to as June 2018 and September 2017, respectively.
ACCOUNTING PRONOUNCEMENTS	ACCOUNTING PRONOUNCEMENTS New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, "Revenue from Contracts with Customers." This ASU and related amendments supersedes the revenue recognition requirements in "Accounting Standard Codification 605 - Revenue Recognition" and most industry-specific guidance. The standard requires that entities recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which a company expects to be entitled in exchange for those goods or services. This ASU is effective for fiscal years beginning after December 15, 2017 (Fiscal 2019 for the Company), and for interim periods within that fiscal year. The Company is in the data aggregation and quantification phase of its review of this new standard, and is working to assess the impact and our approach towards adopting this ASU. In February 2016, FASB issued ASU No. 2016-02 "Leases” ("ASU 2016-02"). ASU 2016-02 requires the recognition of lease assets and lease liabilities by lessees for all leases greater than one year in duration and classified as operating leases under previous GAAP. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 (Fiscal 2020 for the Company), and for interim periods within that fiscal year. The Company is currently evaluating this ASU and its potential impact on our consolidated financial statements including the potential capitalization of all operating leases on the Company’s balance sheet. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”, which introduces a forward-looking approach, based on expected losses, to estimate credit losses on certain types of financial instruments, including trade receivables. The estimate of expected credit losses will require entities to incorporate considerations of historical information, current information and reasonable and supportable forecasts. This ASU also expands the disclosure requirements to enable users of financial statements to understand the entity’s assumptions, models and methods for estimating expected credit losses. This guidance is effective for fiscal years beginning after December 15, 2019 (fiscal 2021 for the Company) with early adoption permitted. The Company is currently reviewing this ASU and its potential impact on our consolidated financial statements. In January 2017, FASB issued ASU No. 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”). The new guidance simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. ASU 2017-04 requires goodwill impairment to be measured as the amount by which a reporting unit’s carrying amount exceeds its fair value, not to exceed the carrying amount of its goodwill. ASU 2017-04 requires prospective application and is effective for annual periods beginning after December 15, 2019 (Fiscal 2021 for the Company) with early adoption permitted. The Company is currently evaluating this ASU and its potential impact on our consolidated financial statements.

GOODWILL AND OTHER INTANGIBLE18

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	9 Months Ended
	Jun. 30, 2018
GOODWILL AND OTHER INTANGIBLE ASSETS
Schedule of goodwill by reporting segment	June September 2018 2017 Wholesale Segment $ 4,436,950 $ 4,436,950 Retail Segment 1,912,877 1,912,877 $ 6,349,827 $ 6,349,827
Schedule of other intangible assets	June September 2018 2017 Trademarks and tradenames (Retail Segment) $ 3,373,269 $ 3,373,269 Customer relationships (Wholesale Segment) (less accumulated amortization of approximately $2.1 million and $2.0 million at June 2018 and September 2017, respectively) 57,292 121,042 $ 3,430,561 $ 3,494,311
Schedule of estimated future amortization expense related to identifiable intangible assets with finite lives	June 2018 Fiscal 2018 (1) $ 15,625 Fiscal 2019 41,667 $ 57,292 (1) Represents amortization for the remaining three months of Fiscal 2018.

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	9 Months Ended
	Jun. 30, 2018
EARNINGS PER SHARE
Schedule of net earnings per share available to common shareholders	For the three months ended June 2018 2017 Basic Diluted Basic Diluted Weighted average common shares outstanding 651,170 651,170 678,938 678,938 Weighted average net additional shares outstanding assuming dilutive options exercised and proceeds used to purchase treasury stock and conversion of preferred stock (1) — 13,518 — 12,763 Weighted average number of shares outstanding 651,170 664,688 678,938 691,701 Net income available to common shareholders $ 785,050 $ 785,050 $ 385,049 $ 385,049 Net earnings per share available to common shareholders $ 1.21 $ 1.18 $ 0.57 $ 0.56 (1) Diluted earnings per share calculation includes all stock options and restricted stock units deemed to be dilutive. For the nine months ended June 2018 2017 Basic Diluted Basic Diluted Weighted average common shares outstanding 676,103 676,103 679,858 679,858 Weighted average net additional shares outstanding assuming dilutive options exercised and proceeds used to purchase treasury stock and conversion of preferred stock (1) — 10,473 — 10,982 Weighted average number of shares outstanding 676,103 686,576 679,858 690,840 Net income available to common shareholders $ 2,604,040 $ 2,604,040 $ 1,919,996 $ 1,919,996 Net earnings per share available to common shareholders $ 3.85 $ 3.79 $ 2.82 $ 2.78 Diluted earnings per share calculation includes all stock options and restricted stock units deemed to be dilutive.

BUSINESS SEGMENTS (Tables)

BUSINESS SEGMENTS (Tables)	9 Months Ended
	Jun. 30, 2018
BUSINESS SEGMENTS
Schedule of segment information	Wholesale Retail Segment Segment Other Consolidated THREE MONTHS ENDED JUNE 2018 External revenues: Cigarettes $ 248,357,752 $ — $ — $ 248,357,752 Tobacco 44,598,270 — — 44,598,270 Confectionery 21,437,432 — — 21,437,432 Health food — 6,246,691 — 6,246,691 Foodservice & other 28,403,055 — — 28,403,055 Total external revenue 342,796,509 6,246,691 — 349,043,200 Depreciation 284,609 314,476 — 599,085 Amortization 15,625 — — 15,625 Operating income (loss) 4,245,654 (1,078,191) (1,677,518) 1,489,945 Interest expense 22,585 — 238,925 261,510 Income (loss) from operations before taxes 4,239,525 (1,076,032) (1,916,443) 1,247,050 Total assets 104,905,403 13,994,013 202,939 119,102,355 Capital expenditures 468,995 284,596 — 753,591 THREE MONTHS ENDED JUNE 2017 External revenue: Cigarettes $ 236,433,449 $ — $ — $ 236,433,449 Tobacco 41,478,941 — — 41,478,941 Confectionery 22,024,887 — — 22,024,887 Health food — 6,376,725 — 6,376,725 Foodservice & other 26,528,198 — — 26,528,198 Total external revenue 326,465,475 6,376,725 — 332,842,200 Depreciation 292,294 116,345 — 408,639 Amortization 66,251 — — 66,251 Operating income (loss) 3,096,128 (615,276) (1,519,050) 961,802 Interest expense 25,279 — 154,987 180,266 Income (loss) from operations before taxes 3,082,982 (610,896) (1,674,037) 798,049 Total assets 98,406,083 14,135,564 167,671 112,709,318 Capital expenditures 109,648 813,888 — 923,536 Wholesale Retail Segment Segment Other Consolidated NINE MONTHS ENDED JUNE 2018 External revenue: Cigarettes $ 679,812,016 $ — $ — $ 679,812,016 Tobacco 125,776,543 — — 125,776,543 Confectionery 57,210,816 — — 57,210,816 Health food — 19,349,676 — 19,349,676 Foodservice & other 77,614,644 — — 77,614,644 Total external revenue 940,414,019 19,349,676 — 959,763,695 Depreciation 919,236 700,632 — 1,619,868 Amortization 63,750 — — 63,750 Operating income (loss) 9,966,031 (1,744,717) (4,515,367) 3,705,947 Interest expense 69,107 — 707,958 777,065 Income (loss) from operations before taxes 9,938,081 (1,737,416) (5,220,625) 2,980,040 Total assets 104,905,403 13,994,013 202,939 119,102,355 Capital expenditures 1,137,117 983,241 — 2,120,358 NINE MONTHS ENDED JUNE 2017 External revenue: Cigarettes $ 667,849,390 $ — $ — $ 667,849,390 Tobacco 117,535,875 — — 117,535,875 Confectionery 58,606,239 — — 58,606,239 Health food — 19,334,087 — 19,334,087 Foodservice & other 73,668,708 — — 73,668,708 Total external revenue 917,660,212 19,334,087 — 936,994,299 Depreciation 981,232 351,310 — 1,332,542 Amortization 198,750 — — 198,750 Operating income (loss) 9,802,019 (1,122,951) (4,502,603) 4,176,465 Interest expense 77,100 — 468,619 545,719 Income (loss) from operations before taxes 9,749,503 (1,110,284) (4,971,223) 3,667,996 Total assets 98,406,083 14,135,564 167,671 112,709,318 Capital expenditures 429,892 1,331,539 — 1,761,431

SUMMARY OF SIGNIFICANT ACCOUN21

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION (Details)	1 Months Ended	9 Months Ended
	Nov. 30, 2017item	Jun. 30, 2018ft²item
Company operations
Number of business segments		2
Wholesale Segment
Company operations
Number of retail outlets served		4,000
Number of products sold or distributed		16,000
Rank assigned by Convenience Store News	7
Number of distribution centers		6
Floor space occupied by distribution centers (in square feet) | ft²		641,000
Retail Segment
Company operations
Number of operating health food retail stores		14
Number of products sold or distributed		32,000
Retail Segment | Florida
Company operations
Number of operating health food retail stores		7
Retail Segment | Midwest
Company operations
Number of operating health food retail stores		7

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Millions	Jun. 30, 2018	Sep. 30, 2017
INVENTORIES
Total reserves on finished goods	$ 0.5	$ 0.8

GOODWILL AND OTHER INTANGIBLE23

GOODWILL AND OTHER INTANGIBLE ASSETS - Goodwill (Details) - USD ($)	Jun. 30, 2018	Sep. 30, 2017
Goodwill by reporting segment
Goodwill	$ 6,349,827	$ 6,349,827
Wholesale Segment
Goodwill by reporting segment
Goodwill	4,436,950	4,436,950
Retail Segment
Goodwill by reporting segment
Goodwill	$ 1,912,877	$ 1,912,877

GOODWILL AND OTHER INTANGIBLE24

GOODWILL AND OTHER INTANGIBLE ASSETS - Other Intangible Assets (Details) - USD ($)	9 Months Ended
	Jun. 30, 2018	Sep. 30, 2017
Other intangible assets
Other intangible assets, net	$ 3,430,561	$ 3,494,311
Customer relationships
Other intangible assets
Other intangible assets, net	57,292	121,042
Accumulated amortization	$ 2,100,000	2,000,000
Amortization period	8 years
Trademarks and tradenames
Other intangible assets
Other intangible assets, net	$ 3,373,269	$ 3,373,269

GOODWILL AND OTHER INTANGIBLE25

GOODWILL AND OTHER INTANGIBLE ASSETS - Amortization Expense (Details)	Jun. 30, 2018USD ($)
Estimated future amortization expense related to identifiable intangible assets with finite lives
Fiscal 2,018	$ 15,625
Fiscal 2,019	41,667
Total	$ 57,292

DIVIDENDS (Details)

DIVIDENDS (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
DIVIDENDS
Cash dividends paid on common stock	$ 100,000	$ 100,000	$ 586,796	$ 579,848

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
EARNINGS PER SHARE
Weighted average common shares outstanding, Basic	651,170	678,938	676,103	679,858
Weighted average of net additional shares outstanding assuming dilutive options exercised and proceeds used to purchase treasury stock and conversion of preferred stock	13,518	12,763	10,473	10,982
Weighted average number of shares outstanding, Diluted	664,688	691,701	686,576	690,840
Net income available to common shareholders	$ 785,050	$ 385,049	$ 2,604,040	$ 1,919,996
Net income available to common shareholders, diluted	$ 785,050	$ 385,049	$ 2,604,040	$ 1,919,996
Net earnings per share available to common shareholders, Basic (in dollars per share)	$ 1.21	$ 0.57	$ 3.85	$ 2.82
Net earnings per share available to common shareholders, Diluted (in dollars per share)	$ 1.18	$ 0.56	$ 3.79	$ 2.78

DEBT (Details)

DEBT (Details) $ in Millions	9 Months Ended
	Jun. 30, 2018USD ($)item
Other
Letter of credit issued for worker's compensation insurance carrier as part of the entity's self-insured loss control program	$ 0.5
Real Estate Loan
Revolving credit facility
Number of cross defaults | item	0
Facility
Revolving credit facility
Revolving credit limit	$ 70
Increase in borrowing capacity available under loan accordion	25
Additional credit advances for certain inventory purchases	$ 10
Automatic renewal period of agreement unless terminated	1 year
Unused commitment fee (as a percent)	0.25%
Period considered for computing fixed charge coverage ratio	12 months
Threshold of excess availability of credit as a percentage of maximum loan limit, required for financial covenant compliance	10.00%
Restricted amount of dividends on common stock	$ 2
Facility | LIBOR
Revolving credit facility
Variable rate basis	LIBOR
Facility | Prime rate
Revolving credit facility
Variable rate basis	prime rate
Facility | Minimum
Revolving credit facility
Notice period prior to the end of any original or renewal term of the agreement required for terminating the agreement either by the borrower or lender	90 days
Fixed charge coverage ratio	1
Facility | Minimum | LIBOR
Revolving credit facility
Basis points added to reference rate (as a percent)	1.25%
Facility | Maximum | LIBOR
Revolving credit facility
Basis points added to reference rate (as a percent)	1.50%

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2018
INCOME TAXES
Statutory income tax rate (as a percent)	21.00%	35.00%
Income tax benefit resulting from Tax Reform			$ 0.9
Blended federal rate (as a percent)			24.00%

BUSINESS SEGMENTS (Details)

BUSINESS SEGMENTS (Details)	3 Months Ended		9 Months Ended
	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2018USD ($)item	Jun. 30, 2017USD ($)	Sep. 30, 2017USD ($)
Information by business segments
Number of reportable business segments | item			2
Total external revenues	$ 349,043,200	$ 332,842,200	$ 959,763,695	$ 936,994,299
Depreciation	599,085	408,639	1,619,868	1,332,542
Amortization	15,625	66,251	63,750	198,750
Operating income (loss)	1,489,945	961,802	3,705,947	4,176,465
Interest expense	261,510	180,266	777,065	545,719
Income (loss) from operations before taxes	1,247,050	798,049	2,980,040	3,667,996
Total assets	119,102,355	112,709,318	119,102,355	112,709,318	$ 131,804,887
Capital expenditures	753,591	923,536	2,120,358	1,761,431
Cigarettes
Information by business segments
Total external revenues	248,357,752	236,433,449	679,812,016	667,849,390
Tobacco
Information by business segments
Total external revenues	44,598,270	41,478,941	125,776,543	117,535,875
Confectionery
Information by business segments
Total external revenues	21,437,432	22,024,887	57,210,816	58,606,239
Health food
Information by business segments
Total external revenues	6,246,691	6,376,725	19,349,676	19,334,087
Foodservice & other
Information by business segments
Total external revenues	28,403,055	26,528,198	77,614,644	73,668,708
Other
Information by business segments
Operating income (loss)	(1,677,518)	(1,519,050)	(4,515,367)	(4,502,603)
Interest expense	238,925	154,987	707,958	468,619
Income (loss) from operations before taxes	(1,916,443)	(1,674,037)	(5,220,625)	(4,971,223)
Total assets	202,939	167,671	202,939	167,671
Wholesale Segment
Information by business segments
Total external revenues	342,796,509	326,465,475	940,414,019	917,660,212
Depreciation	284,609	292,294	919,236	981,232
Amortization	15,625	66,251	63,750	198,750
Operating income (loss)	4,245,654	3,096,128	9,966,031	9,802,019
Interest expense	22,585	25,279	69,107	77,100
Income (loss) from operations before taxes	4,239,525	3,082,982	9,938,081	9,749,503
Total assets	104,905,403	98,406,083	104,905,403	98,406,083
Capital expenditures	468,995	109,648	1,137,117	429,892
Wholesale Segment | Cigarettes
Information by business segments
Total external revenues	248,357,752	236,433,449	679,812,016	667,849,390
Wholesale Segment | Tobacco
Information by business segments
Total external revenues	44,598,270	41,478,941	125,776,543	117,535,875
Wholesale Segment | Confectionery
Information by business segments
Total external revenues	21,437,432	22,024,887	57,210,816	58,606,239
Wholesale Segment | Foodservice & other
Information by business segments
Total external revenues	28,403,055	26,528,198	77,614,644	73,668,708
Retail Segment
Information by business segments
Total external revenues	6,246,691	6,376,725	19,349,676	19,334,087
Depreciation	314,476	116,345	700,632	351,310
Operating income (loss)	(1,078,191)	(615,276)	(1,744,717)	(1,122,951)
Income (loss) from operations before taxes	(1,076,032)	(610,896)	(1,737,416)	(1,110,284)
Total assets	13,994,013	14,135,564	13,994,013	14,135,564
Capital expenditures	284,596	813,888	983,241	1,331,539
Retail Segment | Health food
Information by business segments
Total external revenues	$ 6,246,691	$ 6,376,725	$ 19,349,676	$ 19,334,087

COMMON STOCK REPURCHASE (Detail

COMMON STOCK REPURCHASE (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
COMMON STOCK REPURCHASE
Number of shares of common stock repurchased	68,016	0	74,669	11,104
Value of shares of common stock repurchased	$ 7.1		$ 7.7	$ 1

SUBSEQUENT EVENT (Details)

SUBSEQUENT EVENT (Details) - Subsequent events - Acquisition of retail health food stores located in Florida - EOM Acquisition Corp $ in Millions	1 Months Ended
	Jul. 31, 2018USD ($)storeinstallment
SUBSEQUENT EVENT
Number of stores acquired | store	8
Payments to acquire stores | $	$ 0.7
Number of payment installments | installment	4