AMCON Distributing (DIT) 10-Q 18 Jan 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Dec. 31, 2018	Jan. 14, 2019
Document and Entity Information
Entity Registrant Name	AMCON DISTRIBUTING CO
Entity Central Index Key	928,465
Document Type	10-Q
Document Period End Date	Dec. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		617,295
Document Fiscal Year Focus	2,019
Document Fiscal Period Focus	Q1

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Dec. 31, 2018	Sep. 30, 2018
Current assets:
Cash	$ 821,708	$ 520,644
Accounts receivable, less allowance for doubtful accounts of $0.9 million at December 2018 and $0.9 million at September 2018	30,728,786	31,428,845
Inventories, net	56,552,256	78,869,615
Income taxes receivable	47,054	272,112
Prepaid and other current assets	9,262,230	4,940,775
Total current assets	97,412,034	116,031,991
Property and equipment, net	16,332,606	15,768,484
Goodwill	4,436,950	4,436,950
Other intangible assets, net	3,399,311	3,414,936
Other assets	251,528	301,793
Total assets	121,832,429	139,954,154
Current liabilities:
Accounts payable	16,764,367	20,826,834
Accrued expenses	7,736,445	8,556,620
Accrued wages, salaries and bonuses	1,725,006	3,965,733
Current maturities of long-term debt	959,282	1,096,306
Total current liabilities	27,185,100	34,445,493
Credit facility	23,315,463	35,428,597
Deferred income tax liability, net	2,059,743	1,782,801
Long-term debt, less current maturities	3,560,227	3,658,391
Other long-term liabilities	39,044	38,055
Shareholders' equity:
Preferred stock, $0.01 par value, 1,000,000 shares authorized
Common stock, $.01 par value, 3,000,000 shares authorized, 617,295 shares outstanding at December 2018 and 615,777 shares outstanding at September 2018	8,561	8,441
Additional paid-in capital	23,110,713	22,069,098
Retained earnings	64,796,415	63,848,030
Treasury stock at cost	(22,242,837)	(21,324,752)
Total shareholders' equity	65,672,852	64,600,817
Total liabilities and shareholders' equity	$ 121,832,429	$ 139,954,154

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Dec. 31, 2018	Sep. 30, 2018
Condensed Consolidated Balance Sheets
Accounts receivable, allowance for doubtful accounts (in dollars)	$ 0.9	$ 0.9
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	617,295	615,777

Condensed Consolidated Unaudite

Condensed Consolidated Unaudited Statements of Operations - USD ($)	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Condensed Consolidated Unaudited Statements of Operations
Sales (including excise taxes of $93.0 million and $88.6 million, respectively)	$ 344,733,920	$ 315,513,209
Cost of sales	324,101,782	297,321,447
Gross profit	20,632,138	18,191,762
Selling, general and administrative expenses	17,957,214	16,353,608
Depreciation and amortization	608,008	531,005
Total operating expenses	18,565,222	16,884,613
Operating income	2,066,916	1,307,149
Other expense (income):
Interest expense	322,950	202,191
Other (income), net	(3,355)	(5,133)
Total other expenses (income)	319,595	197,058
Income from operations before income taxes	1,747,321	1,110,091
Income tax expense (benefit)	502,000	(370,000)
Net income available to common shareholders	$ 1,245,321	$ 1,480,091
Basic earnings per share available to common shareholders (in dollars per share)	$ 2.02	$ 2.15
Diluted earnings per share available to common shareholders (in dollars per share)	$ 1.99	$ 2.13
Basic weighted average shares outstanding (in shares)	617,858	687,679
Diluted weighted average shares outstanding (in shares)	624,525	695,950
Dividends declared per common share	$ 0.18	$ 0.18
Dividends paid per common share	$ 0.18	$ 0.18

Condensed Consolidated Unaudi_2

Condensed Consolidated Unaudited Statements of Operations (Parenthetical) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Condensed Consolidated Unaudited Statements of Operations
Sales, excise taxes	$ 93	$ 88.6

Condensed Consolidated Unaudi_3

Condensed Consolidated Unaudited Statements of Shareholders' Equity - USD ($)	Common Stock	Treasury Stock	Additional Paid in Capital	Retained Earnings	Total
Balance at Sep. 30, 2017	$ 8,314	$ (13,601,302)	$ 20,825,919	$ 60,935,911	$ 68,168,842
Balance (in shares) at Sep. 30, 2017	831,438	(153,432)
Increase (Decrease) in Stockholders' Equity
Dividends on common stock				(329,869)	(329,869)
Compensation expense and issuance of stock in connection with equity-based awards	$ 127		1,183,701		1,183,828
Compensation expense and issuance of stock in connection with equity-based awards (in shares)	12,651
Repurchase of common stock		$ (15,175)			(15,175)
Repurchase of common stock (in shares)		(171)
Net income				1,480,091	1,480,091
Balance at Dec. 31, 2017	$ 8,441	$ (13,616,477)	22,009,620	62,086,133	70,487,717
Balance (in shares) at Dec. 31, 2017	844,089	(153,603)
Balance at Sep. 30, 2018	$ 8,441	$ (21,324,752)	22,069,098	63,848,030	$ 64,600,817
Balance (in shares) at Sep. 30, 2018	844,089	(228,312)			615,777
Increase (Decrease) in Stockholders' Equity
Dividends on common stock				(296,936)	$ (296,936)
Compensation expense and issuance of stock in connection with equity-based awards	$ 120		1,041,615		1,041,735
Compensation expense and issuance of stock in connection with equity-based awards (in shares)	11,950
Repurchase of common stock		$ (918,085)			(918,085)
Repurchase of common stock (in shares)		(10,432)
Net income				1,245,321	1,245,321
Balance at Dec. 31, 2018	$ 8,561	$ (22,242,837)	$ 23,110,713	$ 64,796,415	$ 65,672,852
Balance (in shares) at Dec. 31, 2018	856,039	(238,744)			617,295

Condensed Consolidated Unaudi_4

Condensed Consolidated Unaudited Statements of Shareholders' Equity (Parenthetical) - $ / shares	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Condensed Consolidated Unaudited Statements of Shareholders' Equity
Dividends on common stock	$ 0.46	$ 0.46

Condensed Consolidated Unaudi_5

Condensed Consolidated Unaudited Statements of Cash Flows - USD ($)	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 1,245,321	$ 1,480,091
Adjustments to reconcile net income from operations to net cash flows from operating activities:
Depreciation	592,383	498,505
Amortization	15,625	32,500
Gain on sale of property and equipment		(300)
Equity-based compensation	316,056	334,256
Deferred income taxes	276,942	(482,112)
Provision (recovery) for losses on doubtful accounts	11,000	(3,000)
Inventory allowance	117,531	30,660
Other	989	989
Changes in assets and liabilities:
Accounts receivable	689,059	182,299
Inventories	22,199,828	23,179,388
Prepaid and other current assets	(4,321,455)	(3,763,827)
Other assets	50,265	(13,155)
Accounts payable	(4,261,996)	(2,523,433)
Accrued expenses and accrued wages, salaries and bonuses	(2,515,963)	(2,011,951)
Income taxes receivable	225,058	113,026
Net cash flows from operating activities	14,640,643	17,053,936
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	(956,976)	(291,318)
Proceeds from sales of property and equipment		300
Net cash flows (used in) investing activities	(956,976)	(291,018)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under revolving credit facility	336,212,413	305,522,554
Repayments under revolving credit facility	(348,325,547)	(321,921,515)
Principal payments on long-term debt	(235,188)	(92,411)
Repurchase of common stock	(918,085)	(15,175)
Dividends on common stock	(116,196)	(129,026)
Withholdings on the exercise of equity-based awards		(79,850)
Net cash flows (used in) financing activities	(13,382,603)	(16,715,423)
Net change in cash	301,064	47,495
Cash, beginning of period	520,644	523,065
Cash, end of period	821,708	570,560
Supplemental disclosure of cash flow information:
Cash paid during the period for interest	306,243	199,423
Supplemental disclosure of non-cash information:
Equipment acquisitions classified in accounts payable	200,782	15,465
Dividends declared, not paid	180,740	200,843
Issuance of common stock in connection with the vesting and exercise of equity-based awards	$ 1,005,792	$ 1,183,091

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION	3 Months Ended
	Dec. 31, 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 twenty-two 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 17,000 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 2018, Convenience Store News ranked us as the eighth (8th) 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 689,000 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, through our Healthy Edge Inc. subsidiary, 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 twenty-two retail health food stores as Chamberlin’s Natual Foods (Chamberlin’s), Akin’s Natural Foods (Akins), and Earth Origins Market (EOM). 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, and Oklahoma. Earth Origins Market has a total of eight locations in Florida. 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, 2018, 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 December 31, 2018 and December 31, 2017 have been referred to throughout this quarterly report as Q1 2019 and Q1 2018, respectively. The fiscal balance sheet dates as of December 31, 2018 and September 30, 2018 have been referred to as December 2018 and September 2018, respectively. ACCOUNTING PRONOUNCEMENTS Accounting Pronouncement Adopted In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, "Revenue from Contracts with Customers" (ASU 606). ASU 606 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. During Q1 2019, the Company adopted the new standard using the modified retrospective approach. The adoption of ASU 606 did not have a material impact on the Company’s consolidated balance sheet or consolidated results of operations as of the adoption date or for the fiscal quarter ended December 31, 2018. Significant areas of consideration in regards to the Company’s adoption of ASU 606 are as follows: Revenue Recognition The company recognizes revenues when the performance obligation is satisfied, which is the point at which control of the promised goods or services are transferred to its customers, in an amount that reflects the consideration the Company expects to be entitled to receive in exchange for those goods or services. For the majority of the Company’s customer arrangements, control transfers to customers at a point-in-time when goods have been delivered, as that is generally when legal title, physical possession and risks and rewards of goods/services transfers to the customer. The timing of satisfaction of the performance obligation is not subject to significant judgment. See Footnote 9 “Business Segments” for the disaggregation of net sales for each of our business segments. Customers’ Sales Incentives The Company provides consideration to customers, such as sales allowances or discounts to its customers on a regular basis. Under ASU 606, these customers’ sales incentives will continue to be recorded as a reduction to net sales as the sales incentive is earned by the customer. Excise Taxes As part of the implementation of ASU 606, the Company determined that it is primarily responsible for excise taxes levied on cigarette and other tobacco products and will continue to present excise taxes as a component of revenue. Contract Costs Based on the nature of the Company’s business, the costs to obtain and fulfill customer contracts are not material. New Accounting Pronouncements In February 2016, FASB issued ASU No. 2016-02 "Leases”. This ASU and related amendments 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 Generally Accepted Accounting Principles (“GAAP”). This ASU 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 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.

INVENTORIES

INVENTORIES	3 Months Ended
	Dec. 31, 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 $0.6 million at December 2018 and $0.5 million at September 2018. 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	3 Months Ended
	Dec. 31, 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: December September 2018 2018 Wholesale Segment $ 4,436,950 $ 4,436,950 Other intangible assets of the Company consisted of the following: December September 2018 2018 Trademarks and tradenames (Retail Segment) $ 3,373,269 $ 3,373,269 Customer relationships (Wholesale Segment) (less accumulated amortization of approximately $2.1 million at both December 2018 and September 2018) 26,042 41,667 $ 3,399,311 $ 3,414,936 Goodwill, trademarks and tradenames are considered to have indefinite useful lives and therefore no amortization has been taken on these assets. At December 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 December 2018, goodwill allocated to our wholesale reporting unit totaled $4.4 million. In conjunction with the Company’s annual impairment testing for the fiscal year ended September 30, 2018, the Company determined that the estimated fair value of this reporting unit exceeded its carrying value at September 30, 2018. There has been no material changes to this assessment by the Company through December 2018.

DIVIDENDS

DIVIDENDS	3 Months Ended
	Dec. 31, 2018
DIVIDENDS
DIVIDENDS	4. DIVIDENDS The Company paid cash dividends on its common stock totaling $0.1 million in each of the three month periods ended December 2018 and December 2017.

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	Dec. 31, 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 December 2018 2017 Basic Diluted Basic Diluted Weighted average common shares outstanding 617,858 617,858 687,679 687,679 Weighted average net additional shares outstanding assuming dilutive options exercised and proceeds used to purchase treasury stock and conversion of preferred stock (1) — 6,667 — 8,271 Weighted average number of shares outstanding 617,858 624,525 687,679 695,950 Net income available to common shareholders $ 1,245,321 $ 1,245,321 $ 1,480,091 $ 1,480,091 Net earnings per share available to common shareholders $ 2.02 $ 1.99 $ 2.15 $ 2.13 (1) Diluted earnings per share calculation includes all stock options and restricted stock units deemed to be dilutive.

DEBT

DEBT	3 Months Ended
	Dec. 31, 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 December 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 coverage 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 annually provided the Company is not in default before or after the dividend. Additionally, the Company may pay dividends on its common stock in excess of $2.0 million annually 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 certain 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 the loan 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 December 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.

EQUITY-BASED INCENTIVE AWARDS

EQUITY-BASED INCENTIVE AWARDS	3 Months Ended
	Dec. 31, 2018
EQUITY-BASED INCENTIVE AWARDS
EQUITY-BASED INCENTIVE AWARDS	7. EQUITY-BASED INCENTIVE AWARDS Omnibus Plan The Company has two equity-based incentive plans, the 2014 Omnibus Incentive Plan and the 2018 Omnibus Incentive Plan (collectively “the Omnibus Plans”), which provide for equity incentives to employees. Each Omnibus Plan was designed with the intent of encouraging employees to acquire a vested interest in the growth and performance of the Company. The Omnibus Plans together permit the issuance of up to 135,000 shares of the Company’s common stock in the form of stock options, restricted stock awards, restricted stock units, performance share awards as well as awards such as stock appreciation rights, performance units, performance shares, bonus shares, and dividend share awards payable in the form of common stock or cash. The number of shares issuable under the Omnibus Plans is subject to customary adjustments in the event of stock splits, stock dividends, and certain other distributions on the Company’s common stock. At December 2018, awards with respect to a total of 89,332 shares, net of forfeitures, had been awarded pursuant to the Omnibus Plans and awards with respect to another 45,668 shares may be awarded under the Omnibus Plans. Stock Options The Company issued 5,450 and 6,000 incentive stock option awards to employees during Q1 2019 and Q1 2018, respectively, pursuant to the provisions of the Company’s 2014 Omnibus Plans. The stock options issued by the Company expire ten years from the grant date and include a five year graded annual vesting schedule. Both the Q1 2019 and Q1 2018 incentive stock option awards had estimated grant date fair values of approximately $0.2 million using the Black‑Scholes option pricing model. The following assumptions were used in connection with the Black‑Scholes option pricing calculation as it relates to the Q1 2019 and Q1 2018 incentive stock option awards: Stock Option Stock Option Pricing Pricing Assumptions Assumptions Q1 2019 Q1 2018 Risk-free interest rate 2.55 % 2.41 % Dividend yield 0.8 % 0.8 % Expected volatility % % Expected life in years The following is a summary of stock option activity during Q1 2019: Weighted Number Average of Exercise Shares Price Outstanding at September 2018 33,800 $ 77.85 Granted 5,450 84.00 Exercised — — Forfeited/Expired — — Outstanding at December 2018 39,250 $ 78.71 Restricted Stock Units During Q1 2019, the Compensation Committee of the Board of Directors had authorized and approved the following restricted stock unit awards to employees pursuant to the provisions of the Company’s Omnibus Plans: Restricted Restricted Restricted Restricted Date of award: October 2015 October 2016 October 2017 October 2018 Original number of awards issued: Service period: 36 - 60 months 36 months 36 months 36 months Estimated fair value of award at grant date: $ $ $ $ Non-vested awards outstanding at Fair value of non-vested awards at $ $ $ $ (1) 13,150 restricted stock units were vested as of December 2018. The remaining 100 restricted stock units will vest in equal amounts in October 2019 and October 2020. (2) (3) (4) There is no direct cost to the recipients of the restricted stock units, except for any applicable taxes. The restricted stock units are subject to the customary adjustments in the event of stock splits, stock dividends, and certain other distributions of the Company’s common stock. All cash dividends and/or distributions payable to restricted stock recipients will be held in escrow until all the conditions of vesting have been met. The restricted stock units provide that the recipients can elect, at their option, to receive either common stock in the Company, or a cash settlement based upon the closing price of the Company’s shares, at the time of vesting. Based on these award provisions, the compensation expense recorded in the Company’s Statement of Operations reflects the straight‑line amortized fair value based on the period end closing price under the liability method. The following summarizes restricted stock unit activity under the Omnibus Plans during Q1 2019: Number Weighted of Average Shares Fair Value Nonvested restricted stocks units at September 2018 26,811 $ 86.95 Granted 15,050 84.00 Vested (13,710) 84.00 Expired — — Nonvested restricted stocks units at December 2018 28,151 $ 99.75 All Equity-Based Awards (stock options and restricted stock units) Net income before income taxes included compensation expense of approximately $0.3 million during both Q1 2019 and Q1 2018 related to the amortization of all equity-based compensation awards. Total unamortized compensation expense related to these awards at December 2018 and September 2018 was approximately $2.9 million and $1.1 million, respectively.

INCOME TAXES

INCOME TAXES	3 Months Ended
	Dec. 31, 2018
INCOME TAXES
INCOME TAXES	8. INCOME TAXES The Company’s results of operations for the prior year period (Q1 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 $0.8 million income tax benefit to the Company as reflected in our Statement of Operations for the three months ended December 2017. This prior period 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.

BUSINESS SEGMENTS

BUSINESS SEGMENTS	3 Months Ended
	Dec. 31, 2018
BUSINESS SEGMENTS
BUSINESS SEGMENTS	9. 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 DECEMBER 2018 External revenues: Cigarettes $ 238,361,582 $ — $ — $ 238,361,582 Tobacco 48,195,046 — — 48,195,046 Confectionery 19,717,666 — — 19,717,666 Health food 10,990,623 — 10,990,623 Foodservice & other 27,469,003 — — 27,469,003 Total external revenue 333,743,297 10,990,623 — 344,733,920 Depreciation 364,132 228,251 — 592,383 Amortization 15,625 — — 15,625 Operating income (loss) 3,703,884 (45,443) (1,591,525) 2,066,916 Interest expense 37,774 — 285,176 322,950 Income (loss) from operations before taxes 3,667,924 (43,901) (1,876,702) 1,747,321 Total assets 105,897,386 15,838,092 96,951 121,832,429 Capital expenditures 784,116 372,389 — 1,156,505 THREE MONTHS ENDED DECEMBER 2017 External revenue: Cigarettes $ 223,265,578 $ — $ — $ 223,265,578 Tobacco 41,641,678 — — 41,641,678 Confectionery 18,516,318 — — 18,516,318 Health food — 6,289,897 — 6,289,897 Foodservice & other 25,799,738 — — 25,799,738 Total external revenue 309,223,312 6,289,897 — 315,513,209 Depreciation 310,485 188,020 — 498,505 Amortization 32,500 — — 32,500 Operating income (loss) 3,188,983 (472,981) (1,408,853) 1,307,149 Interest expense 23,708 — 178,483 202,191 Income (loss) from operations before taxes 3,167,932 (470,505) (1,587,336) 1,110,091 Total assets 97,487,611 14,302,363 124,460 111,914,434 Capital expenditures 51,529 153,893 — 205,422

COMMON STOCK REPURCHASE

COMMON STOCK REPURCHASE	3 Months Ended
	Dec. 31, 2018
COMMON STOCK REPURCHASE
COMMON STOCK REPURCHASE	10. COMMON STOCK REPURCHASE The Company repurchased a total of 10,432 and 171 shares of its common stock during Q1 2019 and Q1 2018, respectively, for cash totaling $0.9 million and $0.1 million, respectively. All repurchased shares were recorded in treasury stock at cost.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION (Policies)	3 Months Ended
	Dec. 31, 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 17,000 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 2018, Convenience Store News ranked us as the eighth (8th) 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 689,000 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, through our Healthy Edge Inc. subsidiary, 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 twenty-two retail health food stores as Chamberlin’s Natual Foods (Chamberlin’s), Akin’s Natural Foods (Akins), and Earth Origins Market (EOM). 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, and Oklahoma. Earth Origins Market has a total of eight locations in Florida.
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, 2018, 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 December 31, 2018 and December 31, 2017 have been referred to throughout this quarterly report as Q1 2019 and Q1 2018, respectively. The fiscal balance sheet dates as of December 31, 2018 and September 30, 2018 have been referred to as December 2018 and September 2018, respectively.
ACCOUNTING PRONOUNCEMENTS	ACCOUNTING PRONOUNCEMENTS Accounting Pronouncement Adopted In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, "Revenue from Contracts with Customers" (ASU 606). ASU 606 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. During Q1 2019, the Company adopted the new standard using the modified retrospective approach. The adoption of ASU 606 did not have a material impact on the Company’s consolidated balance sheet or consolidated results of operations as of the adoption date or for the fiscal quarter ended December 31, 2018. Significant areas of consideration in regards to the Company’s adoption of ASU 606 are as follows: Revenue Recognition The company recognizes revenues when the performance obligation is satisfied, which is the point at which control of the promised goods or services are transferred to its customers, in an amount that reflects the consideration the Company expects to be entitled to receive in exchange for those goods or services. For the majority of the Company’s customer arrangements, control transfers to customers at a point-in-time when goods have been delivered, as that is generally when legal title, physical possession and risks and rewards of goods/services transfers to the customer. The timing of satisfaction of the performance obligation is not subject to significant judgment. See Footnote 9 “Business Segments” for the disaggregation of net sales for each of our business segments. Customers’ Sales Incentives The Company provides consideration to customers, such as sales allowances or discounts to its customers on a regular basis. Under ASU 606, these customers’ sales incentives will continue to be recorded as a reduction to net sales as the sales incentive is earned by the customer. Excise Taxes As part of the implementation of ASU 606, the Company determined that it is primarily responsible for excise taxes levied on cigarette and other tobacco products and will continue to present excise taxes as a component of revenue. Contract Costs Based on the nature of the Company’s business, the costs to obtain and fulfill customer contracts are not material. New Accounting Pronouncements In February 2016, FASB issued ASU No. 2016-02 "Leases”. This ASU and related amendments 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 Generally Accepted Accounting Principles (“GAAP”). This ASU 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 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.

GOODWILL AND OTHER INTANGIBLE_2

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	3 Months Ended
	Dec. 31, 2018
GOODWILL AND OTHER INTANGIBLE ASSETS
Schedule of goodwill by reporting segment	December September 2018 2018 Wholesale Segment $ 4,436,950 $ 4,436,950
Schedule of other intangible assets	December September 2018 2018 Trademarks and tradenames (Retail Segment) $ 3,373,269 $ 3,373,269 Customer relationships (Wholesale Segment) (less accumulated amortization of approximately $2.1 million at both December 2018 and September 2018) 26,042 41,667 $ 3,399,311 $ 3,414,936

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	Dec. 31, 2018
EARNINGS PER SHARE
Schedule of net earnings per share available to common shareholders	For the three months ended December 2018 2017 Basic Diluted Basic Diluted Weighted average common shares outstanding 617,858 617,858 687,679 687,679 Weighted average net additional shares outstanding assuming dilutive options exercised and proceeds used to purchase treasury stock and conversion of preferred stock (1) — 6,667 — 8,271 Weighted average number of shares outstanding 617,858 624,525 687,679 695,950 Net income available to common shareholders $ 1,245,321 $ 1,245,321 $ 1,480,091 $ 1,480,091 Net earnings per share available to common shareholders $ 2.02 $ 1.99 $ 2.15 $ 2.13 (1) Diluted earnings per share calculation includes all stock options and restricted stock units deemed to be dilutive.

EQUITY-BASED INCENTIVE AWARDS (

EQUITY-BASED INCENTIVE AWARDS (Tables)	3 Months Ended
	Dec. 31, 2018
EQUITY-BASED INCENTIVE AWARDS
Schedule of assumptions used in connection with the Black-Scholes option pricing calculation	Stock Option Stock Option Pricing Pricing Assumptions Assumptions Q1 2019 Q1 2018 Risk-free interest rate 2.55 % 2.41 % Dividend yield 0.8 % 0.8 % Expected volatility % % Expected life in years
Summary of stock options activity	Weighted Number Average of Exercise Shares Price Outstanding at September 2018 33,800 $ 77.85 Granted 5,450 84.00 Exercised — — Forfeited/Expired — — Outstanding at December 2018 39,250 $ 78.71
Schedule of nonvested restricted stock units awarded	Restricted Restricted Restricted Restricted Date of award: October 2015 October 2016 October 2017 October 2018 Original number of awards issued: Service period: 36 - 60 months 36 months 36 months 36 months Estimated fair value of award at grant date: $ $ $ $ Non-vested awards outstanding at Fair value of non-vested awards at $ $ $ $ (1) 13,150 restricted stock units were vested as of December 2018. The remaining 100 restricted stock units will vest in equal amounts in October 2019 and October 2020. (2) (3) (4)
Summary of restricted stock unit activity	Number Weighted of Average Shares Fair Value Nonvested restricted stocks units at September 2018 26,811 $ 86.95 Granted 15,050 84.00 Vested (13,710) 84.00 Expired — — Nonvested restricted stocks units at December 2018 28,151 $ 99.75

BUSINESS SEGMENTS (Tables)

BUSINESS SEGMENTS (Tables)	3 Months Ended
	Dec. 31, 2018
BUSINESS SEGMENTS
Schedule of segment information	Wholesale Retail Segment Segment Other Consolidated THREE MONTHS ENDED DECEMBER 2018 External revenues: Cigarettes $ 238,361,582 $ — $ — $ 238,361,582 Tobacco 48,195,046 — — 48,195,046 Confectionery 19,717,666 — — 19,717,666 Health food 10,990,623 — 10,990,623 Foodservice & other 27,469,003 — — 27,469,003 Total external revenue 333,743,297 10,990,623 — 344,733,920 Depreciation 364,132 228,251 — 592,383 Amortization 15,625 — — 15,625 Operating income (loss) 3,703,884 (45,443) (1,591,525) 2,066,916 Interest expense 37,774 — 285,176 322,950 Income (loss) from operations before taxes 3,667,924 (43,901) (1,876,702) 1,747,321 Total assets 105,897,386 15,838,092 96,951 121,832,429 Capital expenditures 784,116 372,389 — 1,156,505 THREE MONTHS ENDED DECEMBER 2017 External revenue: Cigarettes $ 223,265,578 $ — $ — $ 223,265,578 Tobacco 41,641,678 — — 41,641,678 Confectionery 18,516,318 — — 18,516,318 Health food — 6,289,897 — 6,289,897 Foodservice & other 25,799,738 — — 25,799,738 Total external revenue 309,223,312 6,289,897 — 315,513,209 Depreciation 310,485 188,020 — 498,505 Amortization 32,500 — — 32,500 Operating income (loss) 3,188,983 (472,981) (1,408,853) 1,307,149 Interest expense 23,708 — 178,483 202,191 Income (loss) from operations before taxes 3,167,932 (470,505) (1,587,336) 1,110,091 Total assets 97,487,611 14,302,363 124,460 111,914,434 Capital expenditures 51,529 153,893 — 205,422

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION (Details)	1 Months Ended	3 Months Ended
	Nov. 30, 2018item	Dec. 31, 2018ft²item
Number of business segments		2
Wholesale Segment
Number of retail outlets served		4,000
Number of products sold or distributed		17,000
Rank assigned by Convenience Store News	8
Number of distribution centers		6
Floor space occupied by distribution centers (in square feet) | ft²		689,000
Retail Segment
Number of operating health food retail stores		22
Number of products sold or distributed		32,000
Retail Segment | Florida | Chamberlin's
Number of operating health food retail stores		7
Retail Segment | Florida | Earth Origins Markets
Number of operating health food retail stores		8
Retail Segment | Midwest | Akin's
Number of operating health food retail stores		7

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Millions	Dec. 31, 2018	Sep. 30, 2018
INVENTORIES
Total reserves on finished goods	$ 0.6	$ 0.5

GOODWILL AND OTHER INTANGIBLE_3

GOODWILL AND OTHER INTANGIBLE ASSETS - Goodwill (Details) - USD ($)	Dec. 31, 2018	Sep. 30, 2018
Goodwill by reporting segment
Goodwill	$ 4,436,950	$ 4,436,950
Wholesale Segment
Goodwill by reporting segment
Goodwill	$ 4,436,950	$ 4,436,950

GOODWILL AND OTHER INTANGIBLE_4

GOODWILL AND OTHER INTANGIBLE ASSETS - Other Intangible Assets (Details) - USD ($)	3 Months Ended
	Dec. 31, 2018	Sep. 30, 2018
Other intangible assets, net	$ 3,399,311	$ 3,414,936
Customer relationships
Other intangible assets, net	26,042	41,667
Accumulated amortization	$ 2,100,000	2,100,000
Amortization period	8 years
Trademarks and tradenames
Other intangible assets, net	$ 3,373,269	$ 3,373,269

DIVIDENDS (Details)

DIVIDENDS (Details) - USD ($)	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
DIVIDENDS
Cash dividends paid on common stock	$ 116,196	$ 129,026

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($)	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
EARNINGS PER SHARE
Weighted average common shares outstanding, Basic	617,858	687,679
Weighted average of net additional shares outstanding assuming dilutive options exercised and proceeds used to purchase treasury stock and conversion of preferred stock	6,667	8,271
Weighted average number of shares outstanding, Diluted	624,525	695,950
Net income available to common shareholders	$ 1,245,321	$ 1,480,091
Net income available to common shareholders, diluted	$ 1,245,321	$ 1,480,091
Net earnings per share available to common shareholders, Basic (in dollars per share)	$ 2.02	$ 2.15
Net earnings per share available to common shareholders, Diluted (in dollars per share)	$ 1.99	$ 2.13

DEBT (Details)

DEBT (Details) $ in Millions	3 Months Ended
	Dec. 31, 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%

EQUITY-BASED INCENTIVE AWARDS -

EQUITY-BASED INCENTIVE AWARDS - Stock Options (Details) $ / shares in Units, $ in Millions	3 Months Ended
	Dec. 31, 2018USD ($)plan$ / sharesshares	Dec. 31, 2017USD ($)shares	Sep. 30, 2018$ / sharesshares
Omnibus plan and stock option activity
Number of incentive plans | plan	2
Aggregate intrinsic value and fair value of options outstanding
Compensation expense related to the amortization of all equity - based compensation awards | $	$ 0.3	$ 0.3
Stock Options
Omnibus plan and stock option activity
Expiration period	10 years
Vesting period	5 years
Estimated fair value of the stock option awards using the Black-Scholes option pricing model | $	$ 0.2	$ 0.2
Stock Option Pricing Assumptions
Risk-free interest rate (as a percent)	2.55%	2.41%
Dividend yield (as a percent)	0.80%	0.80%
Expected volatility (as a percent)	45.10%	33.00%
Expected life	6 years	6 years
Stock options issued and outstanding
Number Outstanding (in shares)	39,250		33,800
Weighted-Average Exercise Price (in dollars per share) | $ / shares	$ 78.71		$ 77.85
Number of Shares
Granted (in shares)	5,450	6,000
Weighted Average Exercise Price
Granted (in dollars per share) | $ / shares	$ 84
Omnibus Plan
Omnibus plan and stock option activity
Number of shares of the company's common stock permitted for issuance under the plan	135,000
Number of shares awarded pursuant to the plan	89,332
Number of additional shares that may be awarded under the plan	45,668

EQUITY-BASED INCENTIVE AWARDS_2

EQUITY-BASED INCENTIVE AWARDS - Authorized and Approved Restricted Stock Unit Awards (Details) - USD ($)	1 Months Ended				3 Months Ended
	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2016	Oct. 31, 2015	Dec. 31, 2018	Dec. 31, 2017	Sep. 30, 2018
Restricted stock units
Compensation expense related to the amortization of all equity - based compensation awards					$ 300,000	$ 300,000
Total unamortized compensation expense					$ 2,900,000		$ 1,100,000
Restricted Stock Units
Restricted stock units
Original number of awards issued					15,050
Non-vested awards outstanding at the end of the period (in shares)					28,151		26,811
Direct cost to the recipients of the restricted stock units					$ 0
Restricted Stock Units Awarded October 2015
Restricted stock units
Original number of awards issued				13,250
Estimated fair value of award at grant date				$ 1,112,000
Non-vested awards outstanding at the end of the period (in shares)					100
Fair value of non-vested awards at the end of the period					$ 10,000
Vested as of the end of the period (in shares)					13,150
Units scheduled to vest					100
Restricted Stock Units Awarded October 2015 | Minimum
Restricted stock units
Service period				36 months
Restricted Stock Units Awarded October 2015 | Maximum
Restricted stock units
Service period				60 months
Restricted Stock Units Awarded October 2016
Restricted stock units
Original number of awards issued			13,000
Service period			36 months
Estimated fair value of award at grant date			$ 1,191,000
Non-vested awards outstanding at the end of the period (in shares)					4,334
Fair value of non-vested awards at the end of the period					$ 432,000
Vested as of the end of the period (in shares)					8,666
Units scheduled to vest					4,334
Restricted Stock Units Awarded October 2017
Restricted stock units
Original number of awards issued		13,000
Service period		36 months
Estimated fair value of award at grant date		$ 1,177,000
Non-vested awards outstanding at the end of the period (in shares)					8,667
Fair value of non-vested awards at the end of the period					$ 865,000
Vested as of the end of the period (in shares)					4,333
Restricted Stock Units Awarded October 2017 | Vesting in October 2019
Restricted stock units
Units scheduled to vest					4,333
Restricted Stock Units Awarded October 2017 | Vesting in October 2020
Restricted stock units
Units scheduled to vest					4,334
Restricted Stock Units Awarded October 2018
Restricted stock units
Original number of awards issued	15,050
Service period	36 months
Estimated fair value of award at grant date	$ 1,264,000
Non-vested awards outstanding at the end of the period (in shares)					15,050
Fair value of non-vested awards at the end of the period					$ 1,501,000
Units scheduled to vest					15,050

EQUITY-BASED INCENTIVE AWARDS_3

EQUITY-BASED INCENTIVE AWARDS - Restricted Stock Unit Activity (Details) - Restricted Stock Units	3 Months Ended
	Dec. 31, 2018$ / sharesshares
Number of Shares
Nonvested restricted stock units at the beginning of the period (in shares) | shares	26,811
Granted (in shares) | shares	15,050
Vested (in shares) | shares	(13,710)
Nonvested restricted stock units at the end of the period (in shares) | shares	28,151
Weighted Average Fair Value
Nonvested restricted stock units at the beginning of the period (in dollars per share) | $ / shares	$ 86.95
Granted (in dollars per share) | $ / shares	84
Vested (in dollars per share) | $ / shares	84
Nonvested restricted stock units at the end of the period (in dollars per share) | $ / shares	$ 99.75

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Sep. 30, 2017
INCOME TAXES
Statutory income tax rate (as a percent)	21.00%	21.00%	35.00%
Income tax benefit resulting from Tax Reform		$ 0.8

BUSINESS SEGMENTS (Details)

BUSINESS SEGMENTS (Details)	3 Months Ended
	Dec. 31, 2018USD ($)item	Dec. 31, 2017USD ($)	Sep. 30, 2018USD ($)
Information by business segments
Number of reportable business segments | item	2
Total external revenues	$ 344,733,920	$ 315,513,209
Depreciation	592,383	498,505
Amortization	15,625	32,500
Operating income (loss)	2,066,916	1,307,149
Interest expense	322,950	202,191
Income (loss) from operations before taxes	1,747,321	1,110,091
Total assets	121,832,429	111,914,434	$ 139,954,154
Capital expenditures	1,156,505	205,422
Cigarettes
Information by business segments
Total external revenues	238,361,582	223,265,578
Tobacco
Information by business segments
Total external revenues	48,195,046	41,641,678
Confectionery
Information by business segments
Total external revenues	19,717,666	18,516,318
Health food
Information by business segments
Total external revenues	10,990,623	6,289,897
Foodservice & other
Information by business segments
Total external revenues	27,469,003	25,799,738
Other
Information by business segments
Operating income (loss)	(1,591,525)	(1,408,853)
Interest expense	285,176	178,483
Income (loss) from operations before taxes	(1,876,702)	(1,587,336)
Total assets	96,951	124,460
Wholesale Segment
Information by business segments
Total external revenues	333,743,297	309,223,312
Depreciation	364,132	310,485
Amortization	15,625	32,500
Operating income (loss)	3,703,884	3,188,983
Interest expense	37,774	23,708
Income (loss) from operations before taxes	3,667,924	3,167,932
Total assets	105,897,386	97,487,611
Capital expenditures	784,116	51,529
Wholesale Segment | Cigarettes
Information by business segments
Total external revenues	238,361,582	223,265,578
Wholesale Segment | Tobacco
Information by business segments
Total external revenues	48,195,046	41,641,678
Wholesale Segment | Confectionery
Information by business segments
Total external revenues	19,717,666	18,516,318
Wholesale Segment | Foodservice & other
Information by business segments
Total external revenues	27,469,003	25,799,738
Retail Segment
Information by business segments
Total external revenues	10,990,623	6,289,897
Depreciation	228,251	188,020
Operating income (loss)	(45,443)	(472,981)
Income (loss) from operations before taxes	(43,901)	(470,505)
Total assets	15,838,092	14,302,363
Capital expenditures	372,389	153,893
Retail Segment | Health food
Information by business segments
Total external revenues	$ 10,990,623	$ 6,289,897

COMMON STOCK REPURCHASE (Detail

COMMON STOCK REPURCHASE (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
COMMON STOCK REPURCHASE
Number of shares of common stock repurchased	10,432	171
Value of shares of common stock repurchased	$ 0.9	$ 0.1