AMCON Distributing (DIT) 10-Q 18 Jul 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Jun. 30, 2019	Jul. 15, 2019
Document and Entity Information
Entity Registrant Name	AMCON DISTRIBUTING CO
Entity Central Index Key	0000928465
Document Type	10-Q
Document Period End Date	Jun. 30, 2019
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		592,767
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Jun. 30, 2019	Sep. 30, 2018
Current assets:
Cash	$ 314,007	$ 520,644
Accounts receivable, less allowance for doubtful accounts of $1.0 million at June 2019 and $0.9 million at September 2018	34,459,786	31,428,845
Inventories, net	66,946,540	78,869,615
Income taxes receivable	114,276	272,112
Prepaid and other current assets	10,638,796	4,940,775
Total current assets	112,473,405	116,031,991
Property and equipment, net	17,376,511	15,768,484
Goodwill	4,436,950	4,436,950
Other intangible assets, net	3,373,269	3,414,936
Other assets	282,081	301,793
Total assets	137,942,216	139,954,154
Current liabilities:
Accounts payable	23,403,140	20,826,834
Accrued expenses	8,604,004	8,556,620
Accrued wages, salaries and bonuses	2,376,347	3,965,733
Current maturities of long-term debt	808,103	1,096,306
Total current liabilities	35,191,594	34,445,493
Credit facility	32,114,531	35,428,597
Deferred income tax liability, net	1,895,240	1,782,801
Long-term debt, less current maturities	3,260,455	3,658,391
Other long-term liabilities	41,022	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, 592,767 shares outstanding at June 2019 and 615,777 shares outstanding at September 2018	8,561	8,441
Additional paid-in capital	23,185,173	22,069,098
Retained earnings	66,757,379	63,848,030
Treasury stock at cost	(24,511,739)	(21,324,752)
Total shareholders' equity	65,439,374	64,600,817
Total liabilities and shareholders' equity	$ 137,942,216	$ 139,954,154

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2019	Sep. 30, 2018
Condensed Consolidated Balance Sheets
Accounts receivable, allowance for doubtful accounts (in dollars)	$ 1	$ 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	592,767	615,777

Condensed Consolidated Unaudite

Condensed Consolidated Unaudited Statements of Operations - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Condensed Consolidated Unaudited Statements of Operations
Sales (including excise taxes of $98.0 million and $96.2 million, and $274.0 million and $267.9 million, respectively)	$ 369,981,516	$ 349,043,200	$ 1,025,431,309	$ 959,763,695
Cost of sales	349,455,624	329,930,190	963,683,859	905,392,747
Gross profit	20,525,892	19,113,010	61,747,450	54,370,948
Selling, general and administrative expenses	18,513,048	17,008,355	53,861,943	48,981,383
Depreciation and amortization	620,142	614,710	1,869,378	1,683,618
Total operating expenses	19,133,190	17,623,065	55,731,321	50,665,001
Operating income	1,392,702	1,489,945	6,016,129	3,705,947
Other expense (income):
Interest expense	381,469	261,510	1,100,995	777,065
Other (income), net	(15,446)	(18,615)	(55,081)	(51,158)
Total other expenses (income)	366,023	242,895	1,045,914	725,907
Income from operations before income taxes	1,026,679	1,247,050	4,970,215	2,980,040
Income tax expense	361,000	462,000	1,536,000	376,000
Net income available to common shareholders	$ 665,679	$ 785,050	$ 3,434,215	$ 2,604,040
Basic earnings per share available to common shareholders (in dollars per share)	$ 1.12	$ 1.21	$ 5.65	$ 3.85
Diluted earnings per share available to common shareholders (in dollars per share)	$ 1.10	$ 1.18	$ 5.56	$ 3.79
Basic weighted average shares outstanding (in shares)	592,768	651,170	607,505	676,103
Diluted weighted average shares outstanding (in shares)	606,278	664,688	617,887	686,576
Dividends declared per common share	$ 0.18	$ 0.18	$ 0.82	$ 0.82

Condensed Consolidated Unaudi_2

Condensed Consolidated Unaudited Statements of Operations (Parenthetical) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Condensed Consolidated Unaudited Statements of Operations
Sales, excise taxes	$ 98	$ 96.2	$ 274	$ 267.9

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				(586,796)	(586,796)
Compensation expense and issuance of stock in connection with equity-based awards	$ 127		1,216,236		1,216,363
Compensation expense and issuance of stock in connection with equity-based awards (in shares)	12,651
Repurchase of common stock		$ (7,704,392)			(7,704,392)
Repurchase of common stock (in shares)		(74,669)
Net income				2,604,040	2,604,040
Balance at Jun. 30, 2018	$ 8,441	$ (21,305,694)	22,042,155	62,953,155	63,698,057
Balance (in shares) at Jun. 30, 2018	844,089	(228,101)
Balance at Mar. 31, 2018	$ 8,441	$ (14,245,830)	22,036,562	62,296,042	70,095,215
Balance (in shares) at Mar. 31, 2018	844,089	(160,085)
Increase (Decrease) in Stockholders' Equity
Dividends on common stock				(127,937)	(127,937)
Compensation expense and issuance of stock in connection with equity-based awards			5,593		5,593
Repurchase of common stock		$ (7,059,864)			(7,059,864)
Repurchase of common stock (in shares)		(68,016)
Net income				785,050	785,050
Balance at Jun. 30, 2018	$ 8,441	$ (21,305,694)	22,042,155	62,953,155	63,698,057
Balance (in shares) at Jun. 30, 2018	844,089	(228,101)
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				(524,866)	$ (524,866)
Compensation expense and issuance of stock in connection with equity-based awards	$ 120		1,116,075		1,116,195
Compensation expense and issuance of stock in connection with equity-based awards (in shares)	11,950
Repurchase of common stock		$ (3,186,987)			(3,186,987)
Repurchase of common stock (in shares)		(34,960)
Net income				3,434,215	3,434,215
Balance at Jun. 30, 2019	$ 8,561	$ (24,511,739)	23,185,173	66,757,379	$ 65,439,374
Balance (in shares) at Jun. 30, 2019	856,039	(263,272)			592,767
Balance at Mar. 31, 2019	$ 8,561	$ (24,511,598)	23,148,372	66,203,466	$ 64,848,801
Balance (in shares) at Mar. 31, 2019	856,039	(263,271)
Increase (Decrease) in Stockholders' Equity
Dividends on common stock				(111,766)	(111,766)
Compensation expense and issuance of stock in connection with equity-based awards			36,801		36,801
Repurchase of common stock		$ (141)			(141)
Repurchase of common stock (in shares)		(1)
Net income				665,679	665,679
Balance at Jun. 30, 2019	$ 8,561	$ (24,511,739)	$ 23,185,173	$ 66,757,379	$ 65,439,374
Balance (in shares) at Jun. 30, 2019	856,039	(263,272)			592,767

Condensed Consolidated Unaudi_4

Condensed Consolidated Unaudited Statements of Shareholders' Equity (Parenthetical) - $ / shares	3 Months Ended		9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Condensed Consolidated Unaudited Statements of Shareholders' Equity
Dividends on common stock	$ 0.18	$ 0.18	$ 0.82	$ 0.82

Condensed Consolidated Unaudi_5

Condensed Consolidated Unaudited Statements of Cash Flows - USD ($)	9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 3,434,215	$ 2,604,040
Adjustments to reconcile net income from operations to net cash flows from operating activities:
Depreciation	1,827,711	1,619,868
Amortization	41,667	63,750
Gain on sales of property and equipment	(15,376)	(5,300)
Equity-based compensation	1,035,128	957,656
Deferred income taxes	112,439	(672,431)
Provision for losses on doubtful accounts	179,000	23,000
Inventory allowance	454,357	(267,389)
Other	2,967	2,967
Changes in assets and liabilities:
Accounts receivable	(3,209,941)	(3,276,391)
Inventories	11,468,718	22,167,954
Prepaid and other current assets	(5,698,021)	(5,843,877)
Other assets	19,712	(4,928)
Accounts payable	2,485,721	1,584,358
Accrued expenses and accrued wages, salaries and bonuses	(1,460,935)	125,758
Income taxes receivable	157,836	11,751
Net cash flows from operating activities	10,835,198	19,090,786
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	(3,385,977)	(2,120,358)
Proceeds from sales of property and equipment	56,200	5,300
Net cash flows (used in) investing activities	(3,329,777)	(2,115,058)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under revolving credit facility	1,022,309,940	1,043,415,401
Repayments under revolving credit facility	(1,025,624,006)	(1,051,967,147)
Principal payments on long-term debt	(686,139)	(279,339)
Repurchase of common stock	(3,186,987)	(7,704,392)
Dividends on common stock	(524,866)	(586,796)
Withholdings on the exercise of equity-based awards		(101,200)
Net cash flows (used in) financing activities	(7,712,058)	(17,223,473)
Net change in cash	(206,637)	(247,745)
Cash, beginning of period	520,644	523,065
Cash, end of period	314,007	275,320
Supplemental disclosure of cash flow information:
Cash paid during the period for interest	1,140,562	764,557
Cash paid during the period for income taxes	1,265,725	1,036,680
Supplemental disclosure of non-cash information:
Equipment acquisitions classified in accounts payable	91,838	8,203
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	9 Months Ended
	Jun. 30, 2019
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 Natural 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 June 30, 2019 and June 30, 2018 have been referred to throughout this quarterly report as Q3 2019 and Q3 2018, respectively. The fiscal balance sheet dates as of June 30, 2019 and September 30, 2018 have been referred to as June 2019 and September 2018, respectively. ACCOUNTING PRONOUNCEMENTS Accounting Pronouncement Adopted In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” Accounting Standards Codification Topic (“ASC”) 606 supersedes the revenue recognition requirements in “ASC 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. The Company adopted the new standard using the modified retrospective approach effective October 1, 2018. The adoption of ASC 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 three and nine months ended June 30, 2019. Significant areas of consideration in regards to the Company’s adoption of ASC 606 were 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 8 “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 ASC 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 ASC 606, the Company determined that it is primarily responsible for excise taxes levied on cigarette and other tobacco products and continues 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, the FASB issued ASU No. 2016-02 “Leases”. This ASU and its related amendments requires lessees to recognize right-of-use assets and corresponding lease liabilities for all leases greater than one year in duration that had been classified as operating leases under previous 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 in the data aggregation and quantification phase of its review of this new standard and continues to evaluate its impact on the 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	9 Months Ended
	Jun. 30, 2019
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 $0.9 million at June 2019 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	9 Months Ended
	Jun. 30, 2019
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 2019 2018 Wholesale Segment $ 4,436,950 $ 4,436,950 Other intangible assets of the Company consisted of the following: June September 2019 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 June 2019 and September 2018) — 41,667 $ 3,373,269 $ 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 June 2019 identifiable intangible assets considered to have finite lives representing customer relationships were fully amortized. At June 2019, 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 June 2019.

DIVIDENDS

DIVIDENDS	9 Months Ended
	Jun. 30, 2019
DIVIDENDS
DIVIDENDS	4. DIVIDENDS The Company paid cash dividends on its common stock totaling $0.1 million and $0.5 million for the three and nine month periods ended June 2019, respectively, and $0.1 million and $0.6 million for the three and nine month periods ended June 2018, respectively.

EARNINGS PER SHARE

EARNINGS PER SHARE	9 Months Ended
	Jun. 30, 2019
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 equity awards. For the three months ended June 2019 2018 Basic Diluted Basic Diluted Weighted average common shares outstanding 592,768 592,768 Weighted average net additional shares outstanding assuming dilutive options exercised and proceeds used to purchase treasury stock and conversion of preferred stock (1) — 13,510 — 13,518 Weighted average number of shares outstanding 592,768 606,278 Net income available to common shareholders $ 665,679 $ 665,679 $ $ Net earnings per share available to common shareholders $ 1.12 $ 1.10 $ 1.21 $ 1.18 (1) Diluted earnings per share calculation includes all stock options and restricted stock units deemed to be dilutive. For the nine months ended June 2019 2018 Basic Diluted Basic Diluted Weighted average common shares outstanding 607,505 607,505 676,103 676,103 Weighted average net additional shares outstanding assuming dilutive options exercised and proceeds used to purchase treasury stock and conversion of preferred stock (1) — 10,382 — 10,473 Weighted average number of shares outstanding 607,505 617,887 676,103 686,576 Net income available to common shareholders $ 3,434,215 $ 3,434,215 $ 2,604,040 $ 2,604,040 Net earnings per share available to common shareholders $ 5.65 $ 5.56 $ 3.85 $ 3.79 (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, 2019
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 2019: · 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. The amount available for use on the Facility at any given time is subject to a number of factors including eligible accounts receivable and inventory balances that fluctuate day-to-day. Based on our collateral and loan limits as defined in the Facility agreement, the credit limit of the Facility at June 2019 was $69.5 million, of which $32.1 million was outstanding, leaving $37.4 million available. At June 2019, the revolving portion of the Company’s Facility balance bore interest based on the bank’s prime rate and various short-term LIBOR rate elections made by the Company. The average interest rate was 4.57% at June 2019. For the nine months ended June 2019, our peak borrowings under the Facility were $46.8 million, and our average borrowings and average availability under the Facility were $29.6 million and $39.5 million, respectively. 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, are in default. There were no such cross defaults at June 2019. 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, 2019
INCOME TAXES
INCOME TAXES	7. INCOME TAXES The Company’s results of operations for the nine months ended June 2019 and June 2018 were impacted by the enactment of the Tax Cuts and Jobs Act (“Tax Reform”) which was signed into law on December 22, 2017. Among the 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 nine months ended June 2018 and a lower federal income tax rate for the three and nine months ended June 2019. The $0.8 million tax benefit recognized in the prior fiscal year period (nine months ended June 2018) 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	9 Months Ended
	Jun. 30, 2019
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 (loss) before taxes. Wholesale Retail Segment Segment Other Consolidated THREE MONTHS ENDED JUNE 2019 External revenues: Cigarettes $ 255,049,572 $ — $ — $ 255,049,572 Tobacco 52,014,713 — — 52,014,713 Confectionery 22,541,448 — — 22,541,448 Health food — 11,037,533 — 11,037,533 Foodservice & other 29,338,250 — — 29,338,250 Total external revenue 358,943,983 11,037,533 — 369,981,516 Depreciation 350,701 259,024 — 609,725 Amortization 10,417 — — 10,417 Operating income (loss) 3,592,787 (702,888) (1,497,197) 1,392,702 Interest expense 36,240 — 345,229 381,469 Income (loss) from operations before taxes 3,569,182 (700,076) (1,842,427) 1,026,679 Total assets 120,567,974 17,187,420 186,822 137,942,216 Capital expenditures 757,993 347,790 — 1,105,783 THREE MONTHS ENDED JUNE 2018 External revenue: Cigarettes $ $ — $ — $ Tobacco — — Confectionery — — Health food — — Foodservice & other — — Total external revenue — Depreciation — Amortization — — Operating income (loss) Interest expense — Income (loss) from operations before taxes Total assets Capital expenditures 435,061 262,771 — 697,832 Wholesale Retail Segment Segment Other Consolidated NINE MONTHS ENDED JUNE 2019 External revenue: Cigarettes $ 704,983,203 $ — $ — $ 704,983,203 Tobacco 144,875,098 — — 144,875,098 Confectionery 60,352,104 — — 60,352,104 Health food — 34,001,611 — 34,001,611 Foodservice & other 81,219,293 — — 81,219,293 Total external revenue 991,429,698 34,001,611 — Depreciation 1,093,005 734,706 — 1,827,711 Amortization 41,667 — — 41,667 Operating income (loss) 11,093,779 (489,288) (4,588,362) 6,016,129 Interest expense 110,837 — 990,158 1,100,995 Income (loss) from operations before taxes 11,030,865 (482,128) (5,578,522) 4,970,215 Total assets 120,567,974 17,187,420 186,822 137,942,216 Capital expenditures 2,366,666 1,109,896 — 3,476,562 NINE MONTHS ENDED JUNE 2018 External revenue: Cigarettes $ $ — $ — $ Tobacco — — Confectionery — — Health food — — Foodservice & other — — Total external revenue — Depreciation — Amortization — — Operating income (loss) Interest expense — Income (loss) from operations before taxes Total assets Capital expenditures 1,141,554 885,646 — 2,027,200

COMMON STOCK REPURCHASE

COMMON STOCK REPURCHASE	9 Months Ended
	Jun. 30, 2019
COMMON STOCK REPURCHASE
COMMON STOCK REPURCHASE	9. COMMON STOCK REPURCHASE The Company repurchased 34,960 shares of its common stock during the nine month period ended June 2019 for cash totaling approximately $3.2 million. For the three and nine month periods ending June 2018, the Company repurchased a total of 68,016 and 74,669 shares of its common stock, respectively, for cash totaling $7.1 million and $7.7 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)	9 Months Ended
	Jun. 30, 2019
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 Natural 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 June 30, 2019 and June 30, 2018 have been referred to throughout this quarterly report as Q3 2019 and Q3 2018, respectively. The fiscal balance sheet dates as of June 30, 2019 and September 30, 2018 have been referred to as June 2019 and September 2018, respectively.
ACCOUNTING PRONOUNCEMENTS	ACCOUNTING PRONOUNCEMENTS Accounting Pronouncement Adopted In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” Accounting Standards Codification Topic (“ASC”) 606 supersedes the revenue recognition requirements in “ASC 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. The Company adopted the new standard using the modified retrospective approach effective October 1, 2018. The adoption of ASC 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 three and nine months ended June 30, 2019. Significant areas of consideration in regards to the Company’s adoption of ASC 606 were 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 8 “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 ASC 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 ASC 606, the Company determined that it is primarily responsible for excise taxes levied on cigarette and other tobacco products and continues 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, the FASB issued ASU No. 2016-02 “Leases”. This ASU and its related amendments requires lessees to recognize right-of-use assets and corresponding lease liabilities for all leases greater than one year in duration that had been classified as operating leases under previous 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 in the data aggregation and quantification phase of its review of this new standard and continues to evaluate its impact on the 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)	9 Months Ended
	Jun. 30, 2019
GOODWILL AND OTHER INTANGIBLE ASSETS
Schedule of goodwill by reporting segment	June September 2019 2018 Wholesale Segment $ 4,436,950 $ 4,436,950
Schedule of other intangible assets	June September 2019 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 June 2019 and September 2018) — 41,667 $ 3,373,269 $ 3,414,936

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	9 Months Ended
	Jun. 30, 2019
EARNINGS PER SHARE
Schedule of net earnings per share available to common shareholders	For the three months ended June 2019 2018 Basic Diluted Basic Diluted Weighted average common shares outstanding 592,768 592,768 Weighted average net additional shares outstanding assuming dilutive options exercised and proceeds used to purchase treasury stock and conversion of preferred stock (1) — 13,510 — 13,518 Weighted average number of shares outstanding 592,768 606,278 Net income available to common shareholders $ 665,679 $ 665,679 $ $ Net earnings per share available to common shareholders $ 1.12 $ 1.10 $ 1.21 $ 1.18 (1) Diluted earnings per share calculation includes all stock options and restricted stock units deemed to be dilutive. For the nine months ended June 2019 2018 Basic Diluted Basic Diluted Weighted average common shares outstanding 607,505 607,505 676,103 676,103 Weighted average net additional shares outstanding assuming dilutive options exercised and proceeds used to purchase treasury stock and conversion of preferred stock (1) — 10,382 — 10,473 Weighted average number of shares outstanding 607,505 617,887 676,103 686,576 Net income available to common shareholders $ 3,434,215 $ 3,434,215 $ 2,604,040 $ 2,604,040 Net earnings per share available to common shareholders $ 5.65 $ 5.56 $ 3.85 $ 3.79 (1) 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, 2019
BUSINESS SEGMENTS
Schedule of segment information	Wholesale Retail Segment Segment Other Consolidated THREE MONTHS ENDED JUNE 2019 External revenues: Cigarettes $ 255,049,572 $ — $ — $ 255,049,572 Tobacco 52,014,713 — — 52,014,713 Confectionery 22,541,448 — — 22,541,448 Health food — 11,037,533 — 11,037,533 Foodservice & other 29,338,250 — — 29,338,250 Total external revenue 358,943,983 11,037,533 — 369,981,516 Depreciation 350,701 259,024 — 609,725 Amortization 10,417 — — 10,417 Operating income (loss) 3,592,787 (702,888) (1,497,197) 1,392,702 Interest expense 36,240 — 345,229 381,469 Income (loss) from operations before taxes 3,569,182 (700,076) (1,842,427) 1,026,679 Total assets 120,567,974 17,187,420 186,822 137,942,216 Capital expenditures 757,993 347,790 — 1,105,783 THREE MONTHS ENDED JUNE 2018 External revenue: Cigarettes $ $ — $ — $ Tobacco — — Confectionery — — Health food — — Foodservice & other — — Total external revenue — Depreciation — Amortization — — Operating income (loss) Interest expense — Income (loss) from operations before taxes Total assets Capital expenditures 435,061 262,771 — 697,832 Wholesale Retail Segment Segment Other Consolidated NINE MONTHS ENDED JUNE 2019 External revenue: Cigarettes $ 704,983,203 $ — $ — $ 704,983,203 Tobacco 144,875,098 — — 144,875,098 Confectionery 60,352,104 — — 60,352,104 Health food — 34,001,611 — 34,001,611 Foodservice & other 81,219,293 — — 81,219,293 Total external revenue 991,429,698 34,001,611 — Depreciation 1,093,005 734,706 — 1,827,711 Amortization 41,667 — — 41,667 Operating income (loss) 11,093,779 (489,288) (4,588,362) 6,016,129 Interest expense 110,837 — 990,158 1,100,995 Income (loss) from operations before taxes 11,030,865 (482,128) (5,578,522) 4,970,215 Total assets 120,567,974 17,187,420 186,822 137,942,216 Capital expenditures 2,366,666 1,109,896 — 3,476,562 NINE MONTHS ENDED JUNE 2018 External revenue: Cigarettes $ $ — $ — $ Tobacco — — Confectionery — — Health food — — Foodservice & other — — Total external revenue — Depreciation — Amortization — — Operating income (loss) Interest expense — Income (loss) from operations before taxes Total assets Capital expenditures 1,141,554 885,646 — 2,027,200

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION (Details)	1 Months Ended	9 Months Ended
	Nov. 30, 2018item	Jun. 30, 2019ft²item
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	Jun. 30, 2019	Sep. 30, 2018
INVENTORIES
Total reserves on finished goods	$ 0.9	$ 0.5

GOODWILL AND OTHER INTANGIBLE_3

GOODWILL AND OTHER INTANGIBLE ASSETS - Goodwill (Details) - USD ($)	Jun. 30, 2019	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 ($)	Jun. 30, 2019	Sep. 30, 2018
Other intangible assets, net	$ 3,373,269	$ 3,414,936
Customer relationships
Other intangible assets, net		41,667
Accumulated amortization	2,100,000	2,100,000
Trademarks and tradenames
Other intangible assets, net	$ 3,373,269	$ 3,373,269

DIVIDENDS (Details)

DIVIDENDS (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
DIVIDENDS
Cash dividends paid on common stock	$ 100,000	$ 100,000	$ 524,866	$ 586,796

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
EARNINGS PER SHARE
Weighted average common shares outstanding, Basic	592,768	651,170	607,505	676,103
Weighted average of net additional shares outstanding assuming dilutive options exercised and proceeds used to purchase treasury stock and conversion of preferred stock	13,510	13,518	10,382	10,473
Weighted average number of shares outstanding, Diluted	606,278	664,688	617,887	686,576
Net income available to common shareholders	$ 665,679	$ 785,050	$ 3,434,215	$ 2,604,040
Net income available to common shareholders, diluted	$ 665,679	$ 785,050	$ 3,434,215	$ 2,604,040
Net earnings per share available to common shareholders, Basic (in dollars per share)	$ 1.12	$ 1.21	$ 5.65	$ 3.85
Net earnings per share available to common shareholders, Diluted (in dollars per share)	$ 1.10	$ 1.18	$ 5.56	$ 3.79

DEBT (Details)

DEBT (Details) $ in Millions	9 Months Ended
	Jun. 30, 2019USD ($)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
Current credit limit of the Facility	69.5
Outstanding borrowings under the Facility	32.1
Credit available under the Facility	$ 37.4
Average interest rate	4.57%
Peak borrowings under the Facility	$ 46.8
Average borrowings under the Facility	29.6
Average availability under the Facility	$ 39.5
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	9 Months Ended		12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	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		9 Months Ended
	Jun. 30, 2019USD ($)	Jun. 30, 2018USD ($)	Jun. 30, 2019USD ($)item	Jun. 30, 2018USD ($)	Sep. 30, 2018USD ($)
Information by business segments
Number of reportable business segments | item			2
Total external revenues	$ 369,981,516	$ 349,043,200	$ 1,025,431,309	$ 959,763,695
Depreciation	609,725	599,085	1,827,711	1,619,868
Amortization	10,417	15,625	41,667	63,750
Operating income (loss)	1,392,702	1,489,945	6,016,129	3,705,947
Interest expense	381,469	261,510	1,100,995	777,065
Income (loss) from operations before taxes	1,026,679	1,247,050	4,970,215	2,980,040
Total assets	137,942,216	119,102,355	137,942,216	119,102,355	$ 139,954,154
Capital expenditures	1,105,783	697,832	3,476,562	2,027,200
Cigarettes
Information by business segments
Total external revenues	255,049,572	248,357,752	704,983,203	679,812,016
Tobacco
Information by business segments
Total external revenues	52,014,713	44,598,270	144,875,098	125,776,543
Confectionery
Information by business segments
Total external revenues	22,541,448	21,437,432	60,352,104	57,210,816
Health food
Information by business segments
Total external revenues	11,037,533	6,246,691	34,001,611	19,349,676
Foodservice & other
Information by business segments
Total external revenues	29,338,250	28,403,055	81,219,293	77,614,644
Other
Information by business segments
Operating income (loss)	(1,497,197)	(1,677,518)	(4,588,362)	(4,515,367)
Interest expense	345,229	238,925	990,158	707,958
Income (loss) from operations before taxes	(1,842,427)	(1,916,443)	(5,578,522)	(5,220,625)
Total assets	186,822	202,939	186,822	202,939
Wholesale Segment
Information by business segments
Total external revenues	358,943,983	342,796,509	991,429,698	940,414,019
Depreciation	350,701	284,609	1,093,005	919,236
Amortization	10,417	15,625	41,667	63,750
Operating income (loss)	3,592,787	4,245,654	11,093,779	9,966,031
Interest expense	36,240	22,585	110,837	69,107
Income (loss) from operations before taxes	3,569,182	4,239,525	11,030,865	9,938,081
Total assets	120,567,974	104,905,403	120,567,974	104,905,403
Capital expenditures	757,993	435,061	2,366,666	1,141,554
Wholesale Segment | Cigarettes
Information by business segments
Total external revenues	255,049,572	248,357,752	704,983,203	679,812,016
Wholesale Segment | Tobacco
Information by business segments
Total external revenues	52,014,713	44,598,270	144,875,098	125,776,543
Wholesale Segment | Confectionery
Information by business segments
Total external revenues	22,541,448	21,437,432	60,352,104	57,210,816
Wholesale Segment | Foodservice & other
Information by business segments
Total external revenues	29,338,250	28,403,055	81,219,293	77,614,644
Retail Segment
Information by business segments
Total external revenues	11,037,533	6,246,691	34,001,611	19,349,676
Depreciation	259,024	314,476	734,706	700,632
Operating income (loss)	(702,888)	(1,078,191)	(489,288)	(1,744,717)
Income (loss) from operations before taxes	(700,076)	(1,076,032)	(482,128)	(1,737,416)
Total assets	17,187,420	13,994,013	17,187,420	13,994,013
Capital expenditures	347,790	262,771	1,109,896	885,646
Retail Segment | Health food
Information by business segments
Total external revenues	$ 11,037,533	$ 6,246,691	$ 34,001,611	$ 19,349,676

COMMON STOCK REPURCHASE (Detail

COMMON STOCK REPURCHASE (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
COMMON STOCK REPURCHASE
Number of shares of common stock repurchased	68,016	34,960	74,669
Value of shares of common stock repurchased	$ 7.1	$ 3.2	$ 7.7