AMCON Distributing (DIT) 10-Q 21 Jan 20 2020 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Dec. 31, 2019	Jan. 15, 2020
Document and Entity Information
Entity Registrant Name	AMCON DISTRIBUTING CO
Entity Central Index Key	0000928465
Document Type	10-Q
Document Period End Date	Dec. 31, 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		565,833
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Dec. 31, 2019	Sep. 30, 2019
Current assets:
Cash	$ 439,991	$ 337,704
Accounts receivable, less allowance for doubtful accounts of $1.2 million at December 2019 and $0.9 million at September 2019	31,466,281	24,665,620
Inventories, net	62,958,790	102,343,517
Income taxes receivable	254,606	350,378
Prepaid and other current assets	8,464,551	7,148,459
Total current assets	103,584,219	134,845,678
Property and equipment, net	18,323,979	17,655,415
Operating lease right-of-use assets, net	20,523,782
Goodwill	4,436,950	4,436,950
Other intangible assets, net	500,000	500,000
Other assets	231,527	273,579
Total assets	147,600,457	157,711,622
Current liabilities:
Accounts payable	17,189,294	18,647,572
Accrued expenses	6,608,838	8,577,972
Accrued wages, salaries and bonuses	1,960,785	3,828,847
Current operating lease liabilities	5,460,582
Current maturities of long-term debt	537,285	532,747
Total current liabilities	31,756,784	31,587,138
Credit facility	33,524,029	60,376,714
Deferred income tax liability, net	1,978,165	1,823,373
Long-term operating lease liabilities	15,397,681
Long-term debt, less current maturities	2,989,526	3,125,644
Other long-term liabilities		42,011
Shareholders' equity:
Preferred stock, $.01 par value, 1,000,000 shares authorized
Common stock, $.01 par value, 3,000,000 shares authorized, 565,833 shares outstanding at December 2019 and 552,614 shares outstanding at September 2019	8,692	8,561
Additional paid-in capital	24,192,954	23,165,639
Retained earnings	66,592,637	66,414,397
Treasury stock at cost	(28,840,011)	(28,831,855)
Total shareholders' equity	61,954,272	60,756,742
Total liabilities and shareholders' equity	$ 147,600,457	$ 157,711,622

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Dec. 31, 2019	Sep. 30, 2019
Condensed Consolidated Balance Sheets
Accounts receivable, allowance for doubtful accounts	$ 1.2	$ 0.9
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	3,000,000	3,000,000
Common stock, shares outstanding (in shares)	565,833	552,614

Condensed Consolidated Unaudite

Condensed Consolidated Unaudited Statements of Operations - USD ($)	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Condensed Consolidated Unaudited Statements of Operations
Sales (including excise taxes of $94.0 million and $93.0 million, respectively)	$ 360,101,103	$ 344,733,920
Cost of sales	339,256,392	324,101,782
Gross profit	20,844,711	20,632,138
Selling, general and administrative expenses	18,952,735	17,957,214
Depreciation and amortization	725,461	608,008
Total operating expenses	19,678,196	18,565,222
Operating income	1,166,515	2,066,916
Other expense (income):
Interest expense	472,423	322,950
Other (income), net	(6,778)	(3,355)
Total other expenses (income)	465,645	319,595
Income from operations before income taxes	700,870	1,747,321
Income tax expense	249,000	502,000
Net income available to common shareholders	$ 451,870	$ 1,245,321
Basic earnings per share available to common shareholders (in dollars per share)	$ 0.80	$ 2.02
Diluted earnings per share available to common shareholders (in dollars per share)	$ 0.80	$ 1.99
Basic weighted average shares outstanding (in shares)	562,578	617,858
Diluted weighted average shares outstanding (in shares)	567,794	624,525
Dividends declared 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, 2019	Dec. 31, 2018
Condensed Consolidated Unaudited Statements of Operations
Sales, excise taxes	$ 94	$ 93

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, 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)
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)
Balance at Sep. 30, 2019	$ 8,561	$ (28,831,855)	23,165,639	66,414,397	$ 60,756,742
Balance (in shares) at Sep. 30, 2019	856,039	(303,425)			552,614
Increase (Decrease) in Stockholders' Equity
Dividends on common stock				(273,630)	$ (273,630)
Compensation expense and issuance of stock in connection with equity-based awards	$ 131		1,027,315		1,027,446
Compensation expense and issuance of stock in connection with equity-based awards (in shares)	13,328
Repurchase of common stock		$ (8,156)			(8,156)
Repurchase of common stock (in shares)		(109)
Net income				451,870	451,870
Balance at Dec. 31, 2019	$ 8,692	$ (28,840,011)	$ 24,192,954	$ 66,592,637	$ 61,954,272
Balance (in shares) at Dec. 31, 2019	869,367	(303,534)			565,833

Condensed Consolidated Unaudi_4

Condensed Consolidated Unaudited Statements Of Shareholders’ Equity (Parenthetical) - $ / shares	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
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, 2019	Dec. 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 451,870	$ 1,245,321
Adjustments to reconcile net income from operations to net cash flows from (used in) operating activities:
Depreciation	725,461	592,383
Amortization		15,625
Equity-based compensation	129,931	316,056
Deferred income taxes	154,792	276,942
Provision for losses on doubtful accounts	371,000	11,000
Inventory allowance	51,587	117,531
Other	(42,011)	989
Changes in assets and liabilities:
Accounts receivable	(7,171,661)	689,059
Inventories	39,333,140	22,199,828
Prepaid and other current assets	(1,578,437)	(4,321,455)
Other assets	42,052	50,265
Accounts payable	(1,623,841)	(4,261,996)
Accrued expenses and accrued wages, salaries and bonuses	(2,509,401)	(2,515,963)
Income taxes receivable	95,772	225,058
Net cash flows from (used in) operating activities	28,430,254	14,640,643
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	(1,228,462)	(956,976)
Net cash flows from (used in) investing activities	(1,228,462)	(956,976)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under revolving credit facility	330,596,076	336,212,413
Repayments under revolving credit facility	(357,448,761)	(348,325,547)
Principal payments on long-term debt	(131,580)	(235,188)
Repurchase of common stock	(8,156)	(918,085)
Dividends on common stock	(107,084)	(116,196)
Net cash flows from (used in) financing activities	(27,099,505)	(13,382,603)
Net change in cash	102,287	301,064
Cash, beginning of period	337,704	520,644
Cash, end of period	439,991	821,708
Supplemental disclosure of cash flow information:
Cash paid during the period for interest	519,459	306,243
Cash paid (refunded) during the period for income taxes	(1,563)
Supplemental disclosure of non-cash information:
Equipment acquisitions classified in accounts payable	234,816	200,782
Dividends declared, not paid	166,546	180,740
Issuance of common stock in connection with the vesting and exercise of equity-based awards	$ 990,653	$ 1,005,792

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION	3 Months Ended
	Dec. 31, 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 serve 26 states and primarily operate in the Central, Rocky Mountain, and Mid-South 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 4,100 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 refrigerated products and institutional foodservice products. Convenience stores represent our largest customer category. In November 2019, Convenience Store News ranked us as the eighth (8th) largest convenience store distributor in the United States based on annual sales. Our Wholesale Segment 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 685,000 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 33,000 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, has a total of seven locations 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. 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, 2019, 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, 2019 and December 31, 2018 have been referred to throughout this quarterly report as Q1 2020 and Q1 2019, respectively. The fiscal balance sheet dates as of December 31, 2019 and September 30, 2019 have been referred to as December 2019 and September 2019, respectively. ACCOUNTING PRONOUNCEMENTS Accounting Pronouncement Adopted In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02 “Leases (Topic 842)”. Accounting Standards Codification Topic (“ASC”) 842 supersedes the lease accounting requirements in “ASC 840 - Leases”. The most significant among the changes in ASU 2016-02 is the recognition of right-of-use (“ROU”) assets and corresponding lease liabilities for leases classified as operating leases. The accounting for finance leases, which were classified as capital leases under historical GAAP, remains substantially unchanged. The lease liabilities are equal to the present value of the remaining lease payments while the ROU asset is determined based on the amount of the lease liability, plus initial direct costs incurred less lease incentives. The Company elected the optional transition method to apply ASU 2016-02 prospectively at adoption during Q1 2020, which resulted in recognition of ROU assets of approximately $21.9 million, lease liabilities of $22.2 million, and a decrease of deferred rent recorded under ASC 840 of $0.3 million. The adoption of ASC 842 did not have a material effect on the Company’s consolidated statements of operations or cash flows. Comparative periods presented in the financial statements prior to Q1 2020 continue to be presented under ASC 840. The adoption of ASC 842 did not have a material impact on the Company’s debt-covenant compliance under its current revolving credit facility. In accordance with an accounting policy election under ASC 842, the Company does not recognize assets or liabilities for leases with an initial term of twelve months or less; these short-term lease payments are recognized in the consolidated statements of operations on a straight-line basis over the lease term. The Company elected the package of practical expedients within ASC 842 that allows an entity to not reassess, prior to the effective date, (i) whether any expired or existing contracts are or contain leases, (ii) the lease classification for any expired or existing leases, or (iii) initial direct costs for any existing leases. The Company also elected the practical expedient to account for non-lease components as part of the lease for all asset classes. New Accounting Pronouncements 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, 2022 (fiscal 2024 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, 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 $1.1 million at December 2019 and $1.0 million at September 2019. 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.

LEASES

LEASES	3 Months Ended
	Dec. 31, 2019
Leases
LEASES	3. LEASES The Company’s wholesale segment leases certain warehouse facilities, office space, vehicles and office equipment. The Company’s retail segment leases store space in various shopping center complexes. Certain of the warehouse and retail store leases include one or more options to renew or terminate the applicable lease agreement, with the exercise of such options at the Company’s discretion. The Company’s leases do not contain any significant residual value guarantees nor do they impose any significant restrictions or covenants other than those customarily found in similar types of leases. The operating right-of-use (ROU) lease assets and liabilities recorded on the Company’s balance sheet consist of fixed lease payments. Leases with an initial term of twelve months or less are not recorded on the balance sheet and are expensed on a straight-line basis over the lease term. Additionally, certain leases contain variable payments such as vehicle leases with per-mile charges or retail leases with an additional rent payment based on store performance. These variable payments are expensed as incurred. The Company combines lease components and non-lease components for all asset classes for purposes of recognizing lease assets and liabilities. The Company determines its incremental borrowing rates based on information available at the lease commencement date in calculating the present value of lease payments. Leases consist of the following: Assets Classification December 2019 Operating Operating lease right-of-use assets $ 20,523,782 Liabilities Current: Operating Operating lease liabilities $ 5,460,582 Non-current: Operating Long-term operating lease liabilities 15,397,681 Total lease liabilities $ 20,858,263 The components of lease costs were as follows: Total THREE MONTHS ENDED DECEMBER 2019 Operating lease cost $ 1,670,774 Short-term lease cost 83,505 Variable lease cost 89,273 Net lease cost $ 1,843,552 Maturities of lease liabilities as of December 2019 were as follows: Operating Leases 2020 $ 6,185,910 2021 5,278,523 2022 4,081,106 2023 3,229,468 2024 2,117,859 2025 and thereafter 1,934,262 Total lease payments 22,827,128 Less: interest (1,968,865) Present value of lease liabilities $ 20,858,263 Weighted-average remaining lease term and weighted-average discount rate information regarding the Company’s leases were as follows: Lease Term December 2019 Weighted-average remaining lease term (years): Operating Discount Rate Weighted-average discount rate: Operating % Other information regarding the Company’s leases were as follows: For the three months ended December 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used by operating leases $ 1,655,241 Lease liabilities arising from obtaining new ROU assets: Operating leases $ 119,112 Future minimum operating lease payments as of September 2019, as reported in the 2019 Form 10-K under ASC 840, were as follows: Operating Fiscal Year Ending Leases 2020 $ 6,468,837 2021 5,418,617 2022 4,299,261 2023 3,216,671 2024 2,456,810 Thereafter 2,387,618 Total minimum lease payments $ 24,247,814

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS	3 Months Ended
	Dec. 31, 2019
GOODWILL AND OTHER INTANGIBLE ASSETS
GOODWILL AND OTHER INTANGIBLE ASSETS	4. GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill by reporting segment of the Company consisted of the following: December September 2019 2019 Wholesale Segment $ 4,436,950 $ 4,436,950 Other intangible assets of the Company consisted of the following: December September 2019 2019 Trademarks and tradenames (Retail Segment) $ 500,000 $ 500,000 Goodwill, trademarks and tradenames are considered to have indefinite useful lives and therefore no amortization has been taken on these assets. Goodwill recorded on the Company’s consolidated balance sheet represents amounts allocated to its wholesale reporting unit which totaled $4.4 million at both December 2019 and September 2019. The Company performs its annual impairment testing during the fourth fiscal quarter of each year or as circumstances change or necessitate. There have been no material changes to the Company’s impairment assessments since its fiscal year ended September 2019.

DIVIDENDS

DIVIDENDS	3 Months Ended
	Dec. 31, 2019
DIVIDENDS
DIVIDENDS	5. DIVIDENDS The Company paid cash dividends on its common stock totaling $0.1 million in each of the three month periods ended December 2019 and December 2018.

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	Dec. 31, 2019
EARNINGS PER SHARE
EARNINGS PER SHARE	6. 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 December 2019 2018 Basic Diluted Basic Diluted Weighted average common shares outstanding 562,578 562,578 617,858 617,858 Weighted average net additional shares outstanding assuming dilutive options exercised and proceeds used to purchase treasury stock and conversion of preferred stock (1) — 5,216 — 6,667 Weighted average number of shares outstanding 562,578 567,794 617,858 624,525 Net income available to common shareholders $ 451,870 $ 451,870 $ 1,245,321 $ 1,245,321 Net earnings per share available to common shareholders $ 0.80 $ 0.80 $ 2.02 $ 1.99 (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, 2019
DEBT
DEBT	7. 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 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 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 December 2019 was $69.5 million, of which $33.5 million was outstanding, leaving $36.0 million available. At December 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 3.46% at December 2019. For the three months ended December 2019, our peak borrowings under the Facility were $71.6 million, and our average borrowings and average availability under the Facility were $45.8 million and $26.1 million, respectively. Cross Default and Co-Terminus Provisions The Company owns real estate in Bismarck, ND, Quincy, IL, and Rapid City, SD, which is financed through a single term loan with BMO Harris Bank (the “Real Estate Loan”) which is also a participant lender on the Company’s revolving line of credit. The Real Estate Loan contains cross default provisions which cause 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 December 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 The Company has issued a letter of credit for $0.5 million 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, 2019
EQUITY-BASED INCENTIVE AWARDS
EQUITY-BASED INCENTIVE AWARDS	8. EQUITY-BASED INCENTIVE AWARDS Omnibus Plans The Company has two equity-based incentive plans, the 2014 Omnibus Incentive Plan and 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 2019, awards with respect to a total of 101,146 shares, net of forfeitures, had been awarded pursuant to the Omnibus Plans and awards with respect to another 33,854 shares may be awarded under the Omnibus Plans. Restricted Stock Units At December 2019, the Compensation Committee of the Board of Directors had authorized and approved the following restricted stock unit awards to members of the Company’s management team pursuant to the provisions of the Company’s Omnibus Plans: Restricted Restricted Restricted Restricted Date of award: October 2015 October 2017 October 2018 October 2019 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) (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 2020: Number Weighted of Average Shares Fair Value Nonvested restricted stocks units at September 2019 28,151 $ 76.25 Granted 14,550 69.20 Vested (13,730) 74.02 Expired — — Nonvested restricted stocks units at December 2019 28,971 $ 72.01 All Equity-Based Awards (stock options and restricted stock units) Net income before income taxes included compensation expense of approximately $0.1 million and $0.3 million during Q1 2020 and Q1 2019 respectively, related to the amortization of all equity-based compensation awards. Total unamortized compensation expense related to these awards at December 2019 and September 2019 was approximately $2.3 million and $1.6 million, respectively.

BUSINESS SEGMENTS

BUSINESS SEGMENTS	3 Months Ended
	Dec. 31, 2019
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 (loss) before taxes. Wholesale Retail Segment Segment Other Consolidated THREE MONTHS ENDED DECEMBER 2019 External revenues: Cigarettes $ 245,050,054 $ — $ — $ 245,050,054 Tobacco 54,317,548 — — 54,317,548 Confectionery 20,836,862 — — 20,836,862 Health food — 10,096,495 — 10,096,495 Foodservice & other 29,800,144 — — 29,800,144 Total external revenue 350,004,608 10,096,495 — 360,101,103 Depreciation 432,263 293,198 — 725,461 Amortization — — — — Operating income (loss) 3,649,014 (1,142,306) (1,340,193) 1,166,515 Interest expense 33,974 — 438,449 472,423 Income (loss) from operations before taxes 3,619,664 (1,140,152) (1,778,642) 700,870 Total assets 125,529,755 21,947,811 122,891 147,600,457 Capital expenditures 793,681 600,344 — 1,394,025 THREE MONTHS ENDED DECEMBER 2018 External revenue: 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 — — 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

COMMON STOCK REPURCHASE

COMMON STOCK REPURCHASE	3 Months Ended
	Dec. 31, 2019
COMMON STOCK REPURCHASE
COMMON STOCK REPURCHASE	10. COMMON STOCK REPURCHASE The Company repurchased 109 shares of its common stock during Q1 2020 for cash in an amount less than $0.1 million and 10,432 shares of its common stock during Q1 2019 for cash totaling approximately $0.9 million. All repurchased shares were recorded in treasury stock at cost.

SUBSEQUENT EVENT

SUBSEQUENT EVENT	3 Months Ended
	Dec. 31, 2019
SUBSEQUENT EVENT
SUBSEQUENT EVENTS	11. SUBSEQUENT EVENT In January 2020, the Company entered into a definitive agreement with Chas. M. Sledd Company (“Sledd”), a West Virginia wholesale distributor serving the convenience store industry. The agreement provides that the Company and Sledd are to jointly own a limited liability company (“Team Sledd”). Sledd would contribute subatantially all of its assets and stated liabilities to Team Sledd, while the Company would contribute $10.0 million in cash, of which $6.5 million is structured as equity and $3.5 million as a secured line of credit to Team Sledd. The Company will hold a minority interest in Team Sledd and anticipates it will fund its contribution to Team Sledd from the Company’s revolving credit facility. The transaction is expected to close during the Company’s second fiscal quarter, subject to the satisfaction of customary conditions.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION (Policies)	3 Months Ended
	Dec. 31, 2019
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION
WHOLESALE SEGMENT AND RETAIL SEGMENT	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 serve 26 states and primarily operate in the Central, Rocky Mountain, and Mid-South 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 4,100 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 refrigerated products and institutional foodservice products. Convenience stores represent our largest customer category. In November 2019, Convenience Store News ranked us as the eighth (8th) largest convenience store distributor in the United States based on annual sales. Our Wholesale Segment 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 685,000 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 33,000 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, has a total of seven locations 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. 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, 2019, 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, 2019 and December 31, 2018 have been referred to throughout this quarterly report as Q1 2020 and Q1 2019, respectively. The fiscal balance sheet dates as of December 31, 2019 and September 30, 2019 have been referred to as December 2019 and September 2019, respectively.
ACCOUNTING PRONOUNCEMENTS	ACCOUNTING PRONOUNCEMENTS Accounting Pronouncement Adopted In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02 “Leases (Topic 842)”. Accounting Standards Codification Topic (“ASC”) 842 supersedes the lease accounting requirements in “ASC 840 - Leases”. The most significant among the changes in ASU 2016-02 is the recognition of right-of-use (“ROU”) assets and corresponding lease liabilities for leases classified as operating leases. The accounting for finance leases, which were classified as capital leases under historical GAAP, remains substantially unchanged. The lease liabilities are equal to the present value of the remaining lease payments while the ROU asset is determined based on the amount of the lease liability, plus initial direct costs incurred less lease incentives. The Company elected the optional transition method to apply ASU 2016-02 prospectively at adoption during Q1 2020, which resulted in recognition of ROU assets of approximately $21.9 million, lease liabilities of $22.2 million, and a decrease of deferred rent recorded under ASC 840 of $0.3 million. The adoption of ASC 842 did not have a material effect on the Company’s consolidated statements of operations or cash flows. Comparative periods presented in the financial statements prior to Q1 2020 continue to be presented under ASC 840. The adoption of ASC 842 did not have a material impact on the Company’s debt-covenant compliance under its current revolving credit facility. In accordance with an accounting policy election under ASC 842, the Company does not recognize assets or liabilities for leases with an initial term of twelve months or less; these short-term lease payments are recognized in the consolidated statements of operations on a straight-line basis over the lease term. The Company elected the package of practical expedients within ASC 842 that allows an entity to not reassess, prior to the effective date, (i) whether any expired or existing contracts are or contain leases, (ii) the lease classification for any expired or existing leases, or (iii) initial direct costs for any existing leases. The Company also elected the practical expedient to account for non-lease components as part of the lease for all asset classes. New Accounting Pronouncements 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, 2022 (fiscal 2024 for the Company) with early adoption permitted. The Company is currently reviewing this ASU and its potential impact on our consolidated financial statements.

LEASES (Tables)

LEASES (Tables)	3 Months Ended
	Dec. 31, 2019
Leases
Schedule of leases	Assets Classification December 2019 Operating Operating lease right-of-use assets $ 20,523,782 Liabilities Current: Operating Operating lease liabilities $ 5,460,582 Non-current: Operating Long-term operating lease liabilities 15,397,681 Total lease liabilities $ 20,858,263
Schedule of components of lease costs	Total THREE MONTHS ENDED DECEMBER 2019 Operating lease cost $ 1,670,774 Short-term lease cost 83,505 Variable lease cost 89,273 Net lease cost $ 1,843,552
Schedule of maturities of lease liabilities	Operating Leases 2020 $ 6,185,910 2021 5,278,523 2022 4,081,106 2023 3,229,468 2024 2,117,859 2025 and thereafter 1,934,262 Total lease payments 22,827,128 Less: interest (1,968,865) Present value of lease liabilities $ 20,858,263
Schedule of weighted-average remaining lease term and weighted-average discount rate	Lease Term December 2019 Weighted-average remaining lease term (years): Operating Discount Rate Weighted-average discount rate: Operating %
Schedule of other information regarding the Company’s leases	For the three months ended December 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used by operating leases $ 1,655,241 Lease liabilities arising from obtaining new ROU assets: Operating leases $ 119,112
Schedule of future minimum operating lease payments	Operating Fiscal Year Ending Leases 2020 $ 6,468,837 2021 5,418,617 2022 4,299,261 2023 3,216,671 2024 2,456,810 Thereafter 2,387,618 Total minimum lease payments $ 24,247,814

GOODWILL AND OTHER INTANGIBLE_2

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	3 Months Ended
	Dec. 31, 2019
GOODWILL AND OTHER INTANGIBLE ASSETS
Schedule of goodwill by reporting segment	December September 2019 2019 Wholesale Segment $ 4,436,950 $ 4,436,950
Schedule of other intangible assets	December September 2019 2019 Trademarks and tradenames (Retail Segment) $ 500,000 $ 500,000

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	Dec. 31, 2019
EARNINGS PER SHARE
Schedule of net earnings per share available to common shareholders	For the three months ended December 2019 2018 Basic Diluted Basic Diluted Weighted average common shares outstanding 562,578 562,578 617,858 617,858 Weighted average net additional shares outstanding assuming dilutive options exercised and proceeds used to purchase treasury stock and conversion of preferred stock (1) — 5,216 — 6,667 Weighted average number of shares outstanding 562,578 567,794 617,858 624,525 Net income available to common shareholders $ 451,870 $ 451,870 $ 1,245,321 $ 1,245,321 Net earnings per share available to common shareholders $ 0.80 $ 0.80 $ 2.02 $ 1.99 (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, 2019
EQUITY-BASED INCENTIVE AWARDS
Schedule of restricted stock unit awards	Restricted Restricted Restricted Restricted Date of award: October 2015 October 2017 October 2018 October 2019 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) (2) (3) (4)
Summary of restricted stock unit activity	Number Weighted of Average Shares Fair Value Nonvested restricted stocks units at September 2019 28,151 $ 76.25 Granted 14,550 69.20 Vested (13,730) 74.02 Expired — — Nonvested restricted stocks units at December 2019 28,971 $ 72.01

BUSINESS SEGMENTS (Tables)

BUSINESS SEGMENTS (Tables)	3 Months Ended
	Dec. 31, 2019
BUSINESS SEGMENTS
Schedule of segment information	Wholesale Retail Segment Segment Other Consolidated THREE MONTHS ENDED DECEMBER 2019 External revenues: Cigarettes $ 245,050,054 $ — $ — $ 245,050,054 Tobacco 54,317,548 — — 54,317,548 Confectionery 20,836,862 — — 20,836,862 Health food — 10,096,495 — 10,096,495 Foodservice & other 29,800,144 — — 29,800,144 Total external revenue 350,004,608 10,096,495 — 360,101,103 Depreciation 432,263 293,198 — 725,461 Amortization — — — — Operating income (loss) 3,649,014 (1,142,306) (1,340,193) 1,166,515 Interest expense 33,974 — 438,449 472,423 Income (loss) from operations before taxes 3,619,664 (1,140,152) (1,778,642) 700,870 Total assets 125,529,755 21,947,811 122,891 147,600,457 Capital expenditures 793,681 600,344 — 1,394,025 THREE MONTHS ENDED DECEMBER 2018 External revenue: 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 — — 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

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION (Details)	1 Months Ended	3 Months Ended
	Nov. 30, 2019item	Dec. 31, 2019ft²stateitem
Number of business segments		2
Wholesale Segment
Number of states served | state		26
Number of retail outlets served		4,100
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		685,000
Retail Segment
Number of operating health food retail stores		22
Number of products sold or distributed		33,000
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

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION - ACCOUNTING PRONOUNCEMENTS (Details) - USD ($)	3 Months Ended
	Dec. 31, 2019	Oct. 01, 2019
ROU assets	$ 20,523,782
Lease liabilities	$ 20,858,263
Lease, Practical Expedients, Package [true false]	true
ASU 2016-12
ROU assets		$ 21,900,000
Lease liabilities		22,200,000
ASU 2016-12 | Adjustment
Decrease of deferred rent		$ 300,000

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Millions	Dec. 31, 2019	Sep. 30, 2019
INVENTORIES
Total reserves on finished goods	$ 1.1	$ 1

LEASES (Details)

LEASES (Details)	3 Months Ended
	Dec. 31, 2019USD ($)
Leases
Options to renew	true
Options to terminate	true
Operating lease right-of-use assets, net	$ 20,523,782
Current operating lease liabilities	5,460,582
Non-current operating lease liabilities	15,397,681
Total lease liabilities	$ 20,858,263

LEASES - Components of lease co

LEASES - Components of lease costs (Details)	3 Months Ended
	Dec. 31, 2019USD ($)
Leases
Operating lease cost	$ 1,670,774
Short-term lease cost	83,505
Variable lease cost	89,273
Net lease cost	$ 1,843,552

LEASES - Maturities of lease li

LEASES - Maturities of lease liabilities (Details)	Dec. 31, 2019USD ($)
Operating Leases
2020	$ 6,185,910
2021	5,278,523
2022	4,081,106
2023	3,229,468
2024	2,117,859
2025 and thereafter	1,934,262
Total lease payments	22,827,128
Less: interest	(1,968,865)
Present value of lease liabilities	$ 20,858,263

LEASES - Weighted-average remai

LEASES - Weighted-average remaining lease term and weighted-average discount rate (Details)	Dec. 31, 2019
Leases
Operating, weighted-average remaining lease term	4 years 7 months 6 days
Operating, weighted-average discount rate	4.04%

LEASES - Other information (Det

LEASES - Other information (Details)	3 Months Ended
	Dec. 31, 2019USD ($)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used by operating leases	$ 1,655,241
Lease liabilities arising from obtaining new ROU assets:
Operating leases	$ 119,112

LEASES - Future minimum operati

LEASES - Future minimum operating lease payments (Details)	Sep. 30, 2019USD ($)
Future minimum operating lease payments
2020	$ 6,468,837
2021	5,418,617
2022	4,299,261
2023	3,216,671
2024	2,456,810
Thereafter	2,387,618
Total minimum lease payments	$ 24,247,814

GOODWILL AND OTHER INTANGIBLE_3

GOODWILL AND OTHER INTANGIBLE ASSETS - Goodwill (Details) - USD ($)	Dec. 31, 2019	Sep. 30, 2019
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 ($)	Dec. 31, 2019	Sep. 30, 2019
Other intangible assets, net	$ 500,000	$ 500,000
Trademarks and tradenames | Retail Segment
Other intangible assets, net	$ 500,000	$ 500,000

DIVIDENDS (Details)

DIVIDENDS (Details) - USD ($)	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
DIVIDENDS
Cash dividends paid on common stock	$ 107,084	$ 116,196

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($)	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
EARNINGS PER SHARE
Weighted average common shares outstanding, Basic	562,578	617,858
Weighted average of net additional shares outstanding assuming dilutive options exercised and proceeds used to purchase treasury stock and conversion of preferred stock	5,216	6,667
Weighted average number of shares outstanding, Diluted	567,794	624,525
Net income available to common shareholders	$ 451,870	$ 1,245,321
Net income available to common shareholders, diluted	$ 451,870	$ 1,245,321
Net earnings per share available to common shareholders, Basic (in dollars per share)	$ 0.80	$ 2.02
Net earnings per share available to common shareholders, Diluted (in dollars per share)	$ 0.80	$ 1.99

DEBT (Details)

DEBT (Details) $ in Millions	3 Months Ended
	Dec. 31, 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	33.5
Credit available under the Facility	$ 36
Average interest rate	3.46%
Peak borrowings under the Facility	$ 71.6
Average borrowings under the Facility	45.8
Average availability under the Facility	$ 26.1
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 - Omnibus Plans (Details) - Omnibus Plans	Dec. 31, 2019itemshares
EQUITY-BASED INCENTIVE AWARD
Number of incentive plans | item	2
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	101,146
Number of additional shares that may be awarded under the plan	33,854

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, 2019	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2015	Dec. 31, 2019	Sep. 30, 2019
Restricted Stock Units Awarded October 2015
EQUITY-BASED INCENTIVE AWARD
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)					50
Fair value of non-vested awards at the end of the period					$ 4,000
Vested as of the end of the period (in shares)					13,200
Units scheduled to vest					50
Restricted Stock Units Awarded October 2015 | Minimum
EQUITY-BASED INCENTIVE AWARD
Service period				36 months
Restricted Stock Units Awarded October 2015 | Maximum
EQUITY-BASED INCENTIVE AWARD
Service period				60 months
Restricted Stock Units Awarded October 2017
EQUITY-BASED INCENTIVE AWARD
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)					4,334
Fair value of non-vested awards at the end of the period					$ 312,000
Vested as of the end of the period (in shares)					8,666
Units scheduled to vest					4,334
Restricted Stock Units Awarded October 2018
EQUITY-BASED INCENTIVE AWARD
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)					10,037
Fair value of non-vested awards at the end of the period					$ 723,000
Vested as of the end of the period (in shares)					5,013
Restricted Stock Units Awarded October 2018 | Vest in October 2020
EQUITY-BASED INCENTIVE AWARD
Units scheduled to vest					5,018
Restricted Stock Units Awarded October 2018 | Vest in October 2021
EQUITY-BASED INCENTIVE AWARD
Units scheduled to vest					5,019
Restricted Stock Units Awarded October 2019
EQUITY-BASED INCENTIVE AWARD
Original number of awards issued	14,550
Service period	36 months
Estimated fair value of award at grant date	$ 1,007,000
Non-vested awards outstanding at the end of the period (in shares)					14,550
Fair value of non-vested awards at the end of the period					$ 1,048,000
Restricted Stock Units
EQUITY-BASED INCENTIVE AWARD
Original number of awards issued					14,550
Non-vested awards outstanding at the end of the period (in shares)					28,971	28,151
Direct cost to the recipients of the restricted stock units					$ 0

EQUITY-BASED INCENTIVE AWARDS_3

EQUITY-BASED INCENTIVE AWARDS - Restricted Stock Unit Activity and All Equity-Based Awards (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Sep. 30, 2019
EQUITY-BASED INCENTIVE AWARD
Compensation expense	$ 0.1	$ 0.3
Total unamortized compensation expense	$ 2.3		$ 1.6
Restricted Stock Units
Number of Shares
Nonvested restricted stock units at the beginning of the period (in shares)	28,151
Granted (in shares)	14,550
Vested (in shares)	(13,730)
Nonvested restricted stock units at the end of the period (in shares)	28,971
Weighted Average Fair Value
Nonvested restricted stock units at the beginning of the period (in dollars per share)	$ 76.25
Granted (in dollars per share)	69.20
Vested (in dollars per share)	74.02
Nonvested restricted stock units at the end of the period (in dollars per share)	$ 72.01

BUSINESS SEGMENTS (Details)

BUSINESS SEGMENTS (Details)	3 Months Ended
	Dec. 31, 2019USD ($)item	Dec. 31, 2018USD ($)	Sep. 30, 2019USD ($)
Information by business segments
Number of reportable business segments | item	2
Total external revenues	$ 360,101,103	$ 344,733,920
Depreciation	725,461	592,383
Amortization		15,625
Operating income (loss)	1,166,515	2,066,916
Interest expense	472,423	322,950
Income (loss) from operations before taxes	700,870	1,747,321
Total assets	147,600,457	121,832,429	$ 157,711,622
Capital expenditures	1,394,025	1,156,505
Cigarettes
Information by business segments
Total external revenues	245,050,054	238,361,582
Tobacco
Information by business segments
Total external revenues	54,317,548	48,195,046
Confectionery
Information by business segments
Total external revenues	20,836,862	19,717,666
Health food
Information by business segments
Total external revenues	10,096,495	10,990,623
Foodservice & other
Information by business segments
Total external revenues	29,800,144	27,469,003
Other
Information by business segments
Operating income (loss)	(1,340,193)	(1,591,525)
Interest expense	438,449	285,176
Income (loss) from operations before taxes	(1,778,642)	(1,876,702)
Total assets	122,891	96,951
Wholesale Segment
Information by business segments
Total external revenues	350,004,608	333,743,297
Depreciation	432,263	364,132
Amortization		15,625
Operating income (loss)	3,649,014	3,703,884
Interest expense	33,974	37,774
Income (loss) from operations before taxes	3,619,664	3,667,924
Total assets	125,529,755	105,897,386
Capital expenditures	793,681	784,116
Wholesale Segment | Cigarettes
Information by business segments
Total external revenues	245,050,054	238,361,582
Wholesale Segment | Tobacco
Information by business segments
Total external revenues	54,317,548	48,195,046
Wholesale Segment | Confectionery
Information by business segments
Total external revenues	20,836,862	19,717,666
Wholesale Segment | Foodservice & other
Information by business segments
Total external revenues	29,800,144	27,469,003
Retail Segment
Information by business segments
Total external revenues	10,096,495	10,990,623
Depreciation	293,198	228,251
Operating income (loss)	(1,142,306)	(45,443)
Income (loss) from operations before taxes	(1,140,152)	(43,901)
Total assets	21,947,811	15,838,092
Capital expenditures	600,344	372,389
Retail Segment | Health food
Information by business segments
Total external revenues	$ 10,096,495	$ 10,990,623

COMMON STOCK REPURCHASE (Detail

COMMON STOCK REPURCHASE (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Number of shares of common stock repurchased	109	10,432
Value of shares of common stock repurchased		$ 0.9
Maximum
Value of shares of common stock repurchased	$ 0.1

SUBSEQUENT EVENT (Details)

SUBSEQUENT EVENT (Details) - Subsequent events - Limited liability company (“Team Sledd”) $ in Millions	1 Months Ended
	Jan. 31, 2020USD ($)
SUBSEQUENT EVENT
Contribution in cash	$ 10
Contribution structured as equity	6.5
Contribution structured as a secured line of credit	$ 3.5