AMCON Distributing (DIT) 10-Q 20 Apr 20 2020 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Mar. 31, 2020	Apr. 17, 2020
Document and Entity Information
Entity Registrant Name	AMCON DISTRIBUTING CO
Entity Central Index Key	0000928465
Document Type	10-Q
Document Period End Date	Mar. 31, 2020
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		565,526
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Mar. 31, 2020	Sep. 30, 2019
Current assets:
Cash	$ 661,957	$ 337,704
Accounts receivable, less allowance for doubtful accounts of $1.3 million at March 2020 and $0.9 million at September 2019	27,811,495	24,665,620
Inventories, net	84,912,508	102,343,517
Income taxes receivable	172,365	350,378
Prepaid and other current assets	6,986,997	7,148,459
Total current assets	120,545,322	134,845,678
Property and equipment, net	18,287,881	17,655,415
Operating lease right-of-use assets, net	19,689,507
Goodwill	4,436,950	4,436,950
Other intangible assets, net	500,000	500,000
Other assets	406,653	273,579
Total assets	163,866,313	157,711,622
Current liabilities:
Accounts payable	22,985,979	18,647,572
Accrued expenses	6,650,445	8,577,972
Accrued wages, salaries and bonuses	3,107,209	3,828,847
Current operating lease liabilities	5,433,800
Current maturities of long-term debt	542,004	532,747
Total current liabilities	38,719,437	31,587,138
Credit facility	43,218,080	60,376,714
Deferred income tax liability, net	1,925,536	1,823,373
Long-term operating lease liabilities	14,597,065
Long-term debt, less current maturities	2,852,112	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, 565,526 shares outstanding at March 2020 and 552,614 shares outstanding at September 2019	8,692	8,561
Additional paid-in capital	24,224,145	23,165,639
Retained earnings	67,184,900	66,414,397
Treasury stock at cost	(28,863,654)	(28,831,855)
Total shareholders' equity	62,554,083	60,756,742
Total liabilities and shareholders' equity	$ 163,866,313	$ 157,711,622

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2020	Sep. 30, 2019
Condensed Consolidated Balance Sheets
Accounts receivable, allowance for doubtful accounts	$ 1.3	$ 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)	565,526	552,614

Condensed Consolidated Unaudite

Condensed Consolidated Unaudited Statements of Operations - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Condensed Consolidated Unaudited Statements of Operations
Sales (including excise taxes of $87.5 million and $82.9 million and $181.5 million and $175.9 million, respectively)	$ 337,886,516	$ 310,715,873	$ 697,987,619	$ 655,449,793
Cost of sales	317,193,063	290,126,453	656,449,455	614,228,235
Gross profit	20,693,453	20,589,420	41,538,164	41,221,558
Selling, general and administrative expenses	18,512,890	17,391,681	37,465,626	35,348,896
Depreciation and amortization	790,901	641,228	1,516,361	1,249,236
Total operating expenses	19,303,791	18,032,909	38,981,987	36,598,132
Operating income	1,389,662	2,556,511	2,556,177	4,623,426
Other expense (income):
Interest expense	387,263	396,576	859,686	719,526
Other (income), net	(29,920)	(36,280)	(36,697)	(39,636)
Total other expenses (income)	357,343	360,296	822,989	679,890
Income from operations before income taxes	1,032,319	2,196,215	1,733,188	3,943,536
Income tax expense	333,000	673,000	582,000	1,175,000
Net income available to common shareholders	$ 699,319	$ 1,523,215	$ 1,151,188	$ 2,768,536
Basic earnings per share available to common shareholders (in dollars per share)	$ 1.24	$ 2.49	$ 2.04	$ 4.50
Diluted earnings per share available to common shareholders (in dollars per share)	$ 1.22	$ 2.45	$ 2.02	$ 4.44
Basic weighted average shares outstanding (in shares)	565,697	611,824	564,129	614,874
Diluted weighted average shares outstanding (in shares)	571,852	620,769	569,856	623,848
Dividends declared per common share	$ 0.46	$ 0.46	$ 0.64	$ 0.64

Condensed Consolidated Unaudi_2

Condensed Consolidated Unaudited Statements of Operations (Parenthetical) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Condensed Consolidated Unaudited Statements of Operations
Sales, excise taxes	$ 87.5	$ 82.9	$ 181.5	$ 175.9

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, 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				(413,100)	(413,100)
Compensation expense and issuance of stock in connection with equity-based awards	$ 120		1,079,274		1,079,394
Compensation expense and issuance of stock in connection with equity-based awards (in shares)	11,950
Repurchase of common stock		$ (3,186,846)			(3,186,846)
Repurchase of common stock (in shares)		(34,959)
Net income				2,768,536	2,768,536
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)
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)
Increase (Decrease) in Stockholders' Equity
Dividends on common stock				(116,164)	(116,164)
Compensation expense and issuance of stock in connection with equity-based awards			37,659		37,659
Repurchase of common stock		$ (2,268,761)			(2,268,761)
Repurchase of common stock (in shares)		(24,527)
Net income				1,523,215	1,523,215
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)
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				(380,685)	$ (380,685)
Compensation expense and issuance of stock in connection with equity-based awards	$ 131		1,058,506		1,058,637
Compensation expense and issuance of stock in connection with equity-based awards (in shares)	13,328
Repurchase of common stock		$ (31,799)			(31,799)
Repurchase of common stock (in shares)		(416)
Net income				1,151,188	1,151,188
Balance at Mar. 31, 2020	$ 8,692	$ (28,863,654)	24,224,145	67,184,900	$ 62,554,083
Balance (in shares) at Mar. 31, 2020	869,367	(303,841)			565,526
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)
Increase (Decrease) in Stockholders' Equity
Dividends on common stock				(107,056)	(107,056)
Compensation expense and issuance of stock in connection with equity-based awards			31,191		31,191
Repurchase of common stock		$ (23,643)			(23,643)
Repurchase of common stock (in shares)		(307)
Net income				699,319	699,319
Balance at Mar. 31, 2020	$ 8,692	$ (28,863,654)	$ 24,224,145	$ 67,184,900	$ 62,554,083
Balance (in shares) at Mar. 31, 2020	869,367	(303,841)			565,526

Condensed Consolidated Unaudi_4

Condensed Consolidated Unaudited Statements Of Shareholders Equity (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Condensed Consolidated Unaudited Statements Of Shareholders’ Equity
Dividends on common stock	$ 0.18	$ 0.18	$ 0.64	$ 0.64

Condensed Consolidated Unaudi_5

Condensed Consolidated Unaudited Statements of Cash Flows - USD ($)	6 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 1,151,188	$ 2,768,536
Adjustments to reconcile net income from operations to net cash flows from (used in) operating activities:
Depreciation	1,516,361	1,217,986
Amortization		31,250
Loss (Gain) on sales of property and equipment	33,642	(17,832)
Equity-based compensation	446,114	622,390
Deferred income taxes	102,163	226,918
Provision for losses on doubtful accounts	390,000	59,000
Inventory allowance	55,746	240,699
Other	(42,011)	1,978
Changes in assets and liabilities:
Accounts receivable	(3,535,875)	3,353,602
Inventories	17,375,263	20,978,357
Prepaid and other current assets	(100,883)	(2,402,722)
Other assets	(133,074)	7,897
Accounts payable	4,401,077	(467,687)
Accrued expenses and accrued wages, salaries and bonuses	(1,432,939)	(2,275,795)
Income taxes receivable	178,013	273,742
Net cash flows from (used in) operating activities	20,404,785	24,618,319
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	(2,245,139)	(2,159,232)
Proceeds from sales of property and equipment		23,700
Net cash flows from (used in) investing activities	(2,245,139)	(2,135,532)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under revolving credit facility	680,161,101	642,850,736
Repayments under revolving credit facility	(697,319,735)	(661,055,136)
Principal payments on long-term debt	(264,275)	(556,969)
Repurchase of common stock	(31,799)	(3,186,846)
Dividends on common stock	(380,685)	(413,100)
Net cash flows from (used in) financing activities	(17,835,393)	(22,361,315)
Net change in cash	324,253	121,472
Cash, beginning of period	337,704	520,644
Cash, end of period	661,957	642,116
Supplemental disclosure of cash flow information:
Cash paid during the period for interest	927,322	774,784
Cash paid during the period for income taxes	301,824	674,340
Supplemental disclosure of non-cash information:
Equipment acquisitions classified in accounts payable	6,583	212,800
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	6 Months Ended
	Mar. 31, 2020
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 customers in 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-one 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, inventory optimization and merchandising expertise, information systems, and access to 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-one 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 six 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 March 31, 2020 and March 31, 2019 have been referred to throughout this quarterly report as Q2 2020 and Q2 2019, respectively. The fiscal balance sheet dates as of March 31, 2020 and September 30, 2019 have been referred to as March 2020 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 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	6 Months Ended
	Mar. 31, 2020
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 March 2020 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	6 Months Ended
	Mar. 31, 2020
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 consolidated balance sheet consist of fixed lease payments. Leases with an initial term of twelve months or less are not recorded on the consolidated 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 March 2020 Operating Operating lease right-of-use assets $ 19,689,507 Liabilities Current: Operating Operating lease liabilities $ 5,433,800 Non-current: Operating Long-term operating lease liabilities 14,597,065 Total lease liabilities $ 20,030,865 The components of lease costs were as follows: Total THREE MONTHS ENDED MARCH 2020 Operating lease cost $ 1,660,850 Short-term lease cost 83,936 Variable lease cost 79,954 Net lease cost $ 1,824,740 Total SIX MONTHS ENDED MARCH 2020 Operating lease cost $ 3,331,624 Short-term lease cost 167,441 Variable lease cost 169,227 Net lease cost $ 3,668,292 Maturities of lease liabilities as of March 2020 were as follows: Operating Leases 2020 $ 6,124,577 2021 5,236,472 2022 3,882,209 2023 3,222,946 2024 1,873,836 2025 and thereafter 1,505,992 Total lease payments 21,846,032 Less: interest (1,815,167) Present value of lease liabilities $ 20,030,865 Weighted-average remaining lease term and weighted-average discount rate information regarding the Company’s leases were as follows: Lease Term March 2020 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 six months ended March 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used by operating leases $ 3,304,184 Lease liabilities arising from obtaining new ROU assets: Operating leases $ 732,287 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	6 Months Ended
	Mar. 31, 2020
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: March September 2020 2019 Wholesale Segment $ 4,436,950 $ 4,436,950 Other intangible assets of the Company consisted of the following: March September 2020 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 March 2020 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	6 Months Ended
	Mar. 31, 2020
DIVIDENDS
DIVIDENDS	5. DIVIDENDS The Company paid cash dividends on its common stock totaling $0.3 million and $0.4 million for the three and six month periods ended March 2020, respectively, and $0.3 million and $0.4 million for the three and six month periods ended March 2019, respectively.

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
	Mar. 31, 2020
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 March 2020 2019 Basic Diluted Basic Diluted Weighted average common shares outstanding 565,697 565,697 611,824 611,824 Weighted average net additional shares outstanding assuming dilutive options exercised and proceeds used to purchase treasury stock and conversion of preferred stock (1) — 6,155 — 8,945 Weighted average number of shares outstanding 565,697 571,852 611,824 620,769 Net income available to common shareholders $ 699,319 $ 699,319 $ 1,523,215 $ 1,523,215 Net earnings per share available to common shareholders $ 1.24 $ 1.22 $ 2.49 $ 2.45 (1) Diluted earnings per share calculation includes all stock options and restricted stock units deemed to be dilutive. For the six months ended March 2020 2019 Basic Diluted Basic Diluted Weighted average common shares outstanding 564,129 564,129 614,874 614,874 Weighted average net additional shares outstanding assuming dilutive options exercised and proceeds used to purchase treasury stock and conversion of preferred stock (1) — 5,727 — 8,974 Weighted average number of shares outstanding 564,129 569,856 614,874 623,848 Net income available to common shareholders $ 1,151,188 $ 1,151,188 $ 2,768,536 $ 2,768,536 Net earnings per share available to common shareholders $ 2.04 $ 2.02 $ 4.50 $ 4.44 (1) Diluted earnings per share calculation includes all stock options and restricted stock units deemed to be dilutive.

DEBT

DEBT	6 Months Ended
	Mar. 31, 2020
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. On March 20, 2020, the Company amended the Facility which was set to expire in November 2022. The significant terms of the newly amended Facility at March 2020 are as follows: · A March 2025 maturity date without a penalty for prepayment. · $110.0 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 (or equivalent successor rate index) plus 125 - 150 basis points depending on certain credit facility utilization measures, at the election of the Company. In no event shall LIBOR be less than 100 basis points. · 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 was over 1.0 for the trailing twelve months. · Provides that the Company may use up to $3.5 million annually, on a collective basis, for the payment of dividends on its common stock, or other distributions or investments, provided the Company is not in default before or after such dividends, distributions or investments. Additionally, the Company may pay dividends on its common stock, or make other distributions or investments in excess of $3.5 million annually provided the Company meets certain excess availability and proforma fixed charge coverage ratios and is not in default before or after such dividends, distributions or investments. 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 March 2020 was $89.6 million, of which $43.2 million was outstanding, leaving $46.4 million available. At March 2020, 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 2.63% at March 2020. For the six months ended March 2020, our peak borrowings under the Facility were $71.6 million, and our average borrowings and average availability under the Facility were $42.9 million and $30.0 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 March 2020. 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.

BUSINESS SEGMENTS

BUSINESS SEGMENTS	6 Months Ended
	Mar. 31, 2020
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 MARCH 2020 External revenues: Cigarettes $ 228,865,603 $ — $ — $ 228,865,603 Tobacco 51,639,145 — — 51,639,145 Confectionery 18,027,050 — — 18,027,050 Health food — 12,994,651 — 12,994,651 Foodservice & other 26,360,067 — — 26,360,067 Total external revenue 324,891,865 12,994,651 — 337,886,516 Depreciation 443,143 347,758 — 790,901 Amortization — — — — Operating income (loss) 2,907,818 85,521 (1,603,677) 1,389,662 Interest expense 32,590 — 354,673 387,263 Income (loss) from operations before taxes 2,902,907 87,760 (1,958,348) 1,032,319 Total assets 142,552,270 20,835,266 478,777 163,866,313 Capital expenditures 439,019 349,425 — 788,444 THREE MONTHS ENDED MARCH 2019 External revenue: Cigarettes $ 211,572,049 $ — $ — $ 211,572,049 Tobacco 44,665,339 — — 44,665,339 Confectionery 18,092,990 — — 18,092,990 Health food — 11,973,455 — 11,973,455 Foodservice & other 24,412,040 — — 24,412,040 Total external revenue 298,742,418 11,973,455 — 310,715,873 Depreciation 378,172 247,431 — 625,603 Amortization 15,625 — — 15,625 Operating income (loss) 3,797,109 259,043 (1,499,641) 2,556,511 Interest expense 36,823 — 359,753 396,576 Income (loss) from operations before taxes 3,793,759 261,849 (1,859,393) 2,196,215 Total assets 100,479,809 17,961,404 241,143 118,682,356 Capital expenditures 824,557 389,717 — 1,214,274 Wholesale Retail Segment Segment Other Consolidated SIX MONTHS ENDED MARCH 2020 External revenue: Cigarettes $ 473,915,657 $ — $ — $ 473,915,657 Tobacco 105,956,693 — — 105,956,693 Confectionery 38,863,912 — — 38,863,912 Health food — 23,091,146 — 23,091,146 Foodservice & other 56,160,211 — — 56,160,211 Total external revenue 674,896,473 23,091,146 — 697,987,619 Depreciation 875,405 640,956 — 1,516,361 Amortization — — — — Operating income (loss) 6,556,832 (1,056,785) (2,943,870) 2,556,177 Interest expense 66,564 — 793,122 859,686 Income (loss) from operations before taxes 6,522,571 (1,052,392) (3,736,991) 1,733,188 Total assets 142,552,270 20,835,266 478,777 163,866,313 Capital expenditures 1,232,700 949,769 — 2,182,469 SIX MONTHS ENDED MARCH 2019 External revenue: Cigarettes $ 449,933,631 $ — $ — $ 449,933,631 Tobacco 92,860,385 — — 92,860,385 Confectionery 37,810,656 — — 37,810,656 Health food — 22,964,078 — 22,964,078 Foodservice & other 51,881,043 — — 51,881,043 Total external revenue 632,485,715 22,964,078 — 655,449,793 Depreciation 742,304 475,682 — 1,217,986 Amortization 31,250 — — 31,250 Operating income (loss) 7,500,992 213,600 (3,091,166) 4,623,426 Interest expense 74,597 — 644,929 719,526 Income (loss) from operations before taxes 7,461,683 217,948 (3,736,095) 3,943,536 Total assets 100,479,809 17,961,404 241,143 118,682,356 Capital expenditures 1,608,673 762,106 — 2,370,779

COMMON STOCK REPURCHASE

COMMON STOCK REPURCHASE	6 Months Ended
	Mar. 31, 2020
COMMON STOCK REPURCHASE
COMMON STOCK REPURCHASE	9. COMMON STOCK REPURCHASE The Company repurchased a total of 307 and 416 shares of its common stock during the three and six months ended March 2020, respectively, for cash totaling less than $0.1 million in each respective period. For the three and six month periods ended March 2019, respectively, the Company repurchased 24,527 and 34,959 shares of its common stock for cash totaling approximately $2.3 million and $3.2 million, respectively. All repurchased shares were recorded in treasury stock at cost.

IMPACT OF COVID-19

IMPACT OF COVID-19	6 Months Ended
	Mar. 31, 2020
IMPACT OF COVID-19
IMPACT OF COVID-19	10. IMPACT OF COVID-19 In March 2020 the World Health Organization (WHO) declared the novel strain of coronavirus (COVID-19) a global pandemic. The Company is designated by the Cybersecurity and Infrastructure Security Agency (CISA) of the Department of Homeland Security as a critical infrastructure supplier to the Convenience Store Industry. Both of the Company’s business segments have continued to operate during the pandemic as vital suppliers of goods and services and the Company has taken certain proactive and precautionary steps to ensure the safety of its employees, customers and suppliers, including frequent cleaning and disinfection of workspaces, property and equipment, instituting social distancing measures and mandating remote working environments for certain employees. We cannot, however, predict the long-term effects on our business, including our financial position or results of operations, if governmental restrictions such as Stay-At-Home Orders or other such directives continue for a prolonged period of time and materially disrupt our supply chain or our ability to procure products or fulfill orders due to disruptions in our warehouse operations.

SUBSEQUENT EVENT

SUBSEQUENT EVENT	6 Months Ended
	Mar. 31, 2020
SUBSEQUENT EVENT
SUBSEQUENT EVENTS	11. SUBSEQUENT EVENT In April 2020, the Company completed its previously announced transaction with Chas. M. Sledd Company (“Sledd”), a West Virginia wholesale distributor serving the convenience store industry, to jointly own and operate a limited liability company (“Team Sledd”) formed for the purpose of owning and operating Sledd’s wholesale distribution business. In conjunction with the transaction, Sledd contributed substantially all of its assets and stated liabilities to Team Sledd, while the Company contributed $10.0 million in cash, of which $6.5 million was structured as equity and $3.5 million was structured as a secured loan to Team Sledd and subordinate to the liens of Team Sledd's existing secured lenders. In connection with the closing of the transaction, the Company and Sledd entered into an Operating Agreement for Team Sledd which sets forth each party’s respective ownership interests in and capital contributions to Team Sledd and provides for the management of the business and affairs of Team Sledd. At the transaction closing date, Sledd and AMCON owned approximately 55% and 45% of Team Sledd’s outstanding equity, respectively. As contemplated by the Operating Agreement, it is anticipated that certain membership interests in Team Sledd will be redeemed over a six year period, or potentially longer, with such redemptions funded from the operations of Team Sledd. These redemptions would result in corresponding increases in the percentage of the outstanding equity of Team Sledd owned by AMCON.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION (Policies)	6 Months Ended
	Mar. 31, 2020
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 customers in 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-one 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, inventory optimization and merchandising expertise, information systems, and access to 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-one 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 six 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 March 31, 2020 and March 31, 2019 have been referred to throughout this quarterly report as Q2 2020 and Q2 2019, respectively. The fiscal balance sheet dates as of March 31, 2020 and September 30, 2019 have been referred to as March 2020 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 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)	6 Months Ended
	Mar. 31, 2020
Leases
Schedule of leases	Assets Classification March 2020 Operating Operating lease right-of-use assets $ 19,689,507 Liabilities Current: Operating Operating lease liabilities $ 5,433,800 Non-current: Operating Long-term operating lease liabilities 14,597,065 Total lease liabilities $ 20,030,865
Schedule of components of lease costs	Total THREE MONTHS ENDED MARCH 2020 Operating lease cost $ 1,660,850 Short-term lease cost 83,936 Variable lease cost 79,954 Net lease cost $ 1,824,740 Total SIX MONTHS ENDED MARCH 2020 Operating lease cost $ 3,331,624 Short-term lease cost 167,441 Variable lease cost 169,227 Net lease cost $ 3,668,292
Schedule of maturities of lease liabilities	Operating Leases 2020 $ 6,124,577 2021 5,236,472 2022 3,882,209 2023 3,222,946 2024 1,873,836 2025 and thereafter 1,505,992 Total lease payments 21,846,032 Less: interest (1,815,167) Present value of lease liabilities $ 20,030,865
Schedule of weighted-average remaining lease term and weighted-average discount rate	Lease Term March 2020 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 six months ended March 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used by operating leases $ 3,304,184 Lease liabilities arising from obtaining new ROU assets: Operating leases $ 732,287
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)	6 Months Ended
	Mar. 31, 2020
GOODWILL AND OTHER INTANGIBLE ASSETS
Schedule of goodwill by reporting segment	March September 2020 2019 Wholesale Segment $ 4,436,950 $ 4,436,950
Schedule of other intangible assets	March September 2020 2019 Trademarks and tradenames (Retail Segment) $ 500,000 $ 500,000

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Mar. 31, 2020
EARNINGS PER SHARE
Schedule of net earnings per share available to common shareholders	For the three months ended March 2020 2019 Basic Diluted Basic Diluted Weighted average common shares outstanding 565,697 565,697 611,824 611,824 Weighted average net additional shares outstanding assuming dilutive options exercised and proceeds used to purchase treasury stock and conversion of preferred stock (1) — 6,155 — 8,945 Weighted average number of shares outstanding 565,697 571,852 611,824 620,769 Net income available to common shareholders $ 699,319 $ 699,319 $ 1,523,215 $ 1,523,215 Net earnings per share available to common shareholders $ 1.24 $ 1.22 $ 2.49 $ 2.45 (1) Diluted earnings per share calculation includes all stock options and restricted stock units deemed to be dilutive. For the six months ended March 2020 2019 Basic Diluted Basic Diluted Weighted average common shares outstanding 564,129 564,129 614,874 614,874 Weighted average net additional shares outstanding assuming dilutive options exercised and proceeds used to purchase treasury stock and conversion of preferred stock (1) — 5,727 — 8,974 Weighted average number of shares outstanding 564,129 569,856 614,874 623,848 Net income available to common shareholders $ 1,151,188 $ 1,151,188 $ 2,768,536 $ 2,768,536 Net earnings per share available to common shareholders $ 2.04 $ 2.02 $ 4.50 $ 4.44 (1) Diluted earnings per share calculation includes all stock options and restricted stock units deemed to be dilutive.

BUSINESS SEGMENTS (Tables)

BUSINESS SEGMENTS (Tables)	6 Months Ended
	Mar. 31, 2020
BUSINESS SEGMENTS
Schedule of segment information	Wholesale Retail Segment Segment Other Consolidated THREE MONTHS ENDED MARCH 2020 External revenues: Cigarettes $ 228,865,603 $ — $ — $ 228,865,603 Tobacco 51,639,145 — — 51,639,145 Confectionery 18,027,050 — — 18,027,050 Health food — 12,994,651 — 12,994,651 Foodservice & other 26,360,067 — — 26,360,067 Total external revenue 324,891,865 12,994,651 — 337,886,516 Depreciation 443,143 347,758 — 790,901 Amortization — — — — Operating income (loss) 2,907,818 85,521 (1,603,677) 1,389,662 Interest expense 32,590 — 354,673 387,263 Income (loss) from operations before taxes 2,902,907 87,760 (1,958,348) 1,032,319 Total assets 142,552,270 20,835,266 478,777 163,866,313 Capital expenditures 439,019 349,425 — 788,444 THREE MONTHS ENDED MARCH 2019 External revenue: Cigarettes $ 211,572,049 $ — $ — $ 211,572,049 Tobacco 44,665,339 — — 44,665,339 Confectionery 18,092,990 — — 18,092,990 Health food — 11,973,455 — 11,973,455 Foodservice & other 24,412,040 — — 24,412,040 Total external revenue 298,742,418 11,973,455 — 310,715,873 Depreciation 378,172 247,431 — 625,603 Amortization 15,625 — — 15,625 Operating income (loss) 3,797,109 259,043 (1,499,641) 2,556,511 Interest expense 36,823 — 359,753 396,576 Income (loss) from operations before taxes 3,793,759 261,849 (1,859,393) 2,196,215 Total assets 100,479,809 17,961,404 241,143 118,682,356 Capital expenditures 824,557 389,717 — 1,214,274 Wholesale Retail Segment Segment Other Consolidated SIX MONTHS ENDED MARCH 2020 External revenue: Cigarettes $ 473,915,657 $ — $ — $ 473,915,657 Tobacco 105,956,693 — — 105,956,693 Confectionery 38,863,912 — — 38,863,912 Health food — 23,091,146 — 23,091,146 Foodservice & other 56,160,211 — — 56,160,211 Total external revenue 674,896,473 23,091,146 — 697,987,619 Depreciation 875,405 640,956 — 1,516,361 Amortization — — — — Operating income (loss) 6,556,832 (1,056,785) (2,943,870) 2,556,177 Interest expense 66,564 — 793,122 859,686 Income (loss) from operations before taxes 6,522,571 (1,052,392) (3,736,991) 1,733,188 Total assets 142,552,270 20,835,266 478,777 163,866,313 Capital expenditures 1,232,700 949,769 — 2,182,469 SIX MONTHS ENDED MARCH 2019 External revenue: Cigarettes $ 449,933,631 $ — $ — $ 449,933,631 Tobacco 92,860,385 — — 92,860,385 Confectionery 37,810,656 — — 37,810,656 Health food — 22,964,078 — 22,964,078 Foodservice & other 51,881,043 — — 51,881,043 Total external revenue 632,485,715 22,964,078 — 655,449,793 Depreciation 742,304 475,682 — 1,217,986 Amortization 31,250 — — 31,250 Operating income (loss) 7,500,992 213,600 (3,091,166) 4,623,426 Interest expense 74,597 — 644,929 719,526 Income (loss) from operations before taxes 7,461,683 217,948 (3,736,095) 3,943,536 Total assets 100,479,809 17,961,404 241,143 118,682,356 Capital expenditures 1,608,673 762,106 — 2,370,779

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION (Details)	1 Months Ended	6 Months Ended
	Nov. 30, 2019item	Mar. 31, 2020ft²stateitem
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		21
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		6

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION - ACCOUNTING PRONOUNCEMENTS (Details) - USD ($)	6 Months Ended
	Mar. 31, 2020	Oct. 01, 2019
ROU assets	$ 19,689,507
Lease liabilities	$ 20,030,865
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	Mar. 31, 2020	Sep. 30, 2019
INVENTORIES
Total reserves on finished goods	$ 1.1	$ 1

LEASES (Details)

LEASES (Details)	6 Months Ended
	Mar. 31, 2020USD ($)
Leases
Options to renew	true
Options to terminate	true
Operating lease right-of-use assets, net	$ 19,689,507
Current operating lease liabilities	5,433,800
Non-current operating lease liabilities	14,597,065
Total lease liabilities	$ 20,030,865

LEASES - Components of lease co

LEASES - Components of lease costs (Details) - USD ($)	3 Months Ended	6 Months Ended
	Mar. 31, 2020	Mar. 31, 2020
Leases
Operating lease cost	$ 1,660,850	$ 3,331,624
Short-term lease cost	83,936	167,441
Variable lease cost	79,954	169,227
Net lease cost	$ 1,824,740	$ 3,668,292

LEASES - Maturities of lease li

LEASES - Maturities of lease liabilities (Details)	Mar. 31, 2020USD ($)
Operating Leases
2020	$ 6,124,577
2021	5,236,472
2022	3,882,209
2023	3,222,946
2024	1,873,836
2025 and thereafter	1,505,992
Total lease payments	21,846,032
Less: interest	(1,815,167)
Present value of lease liabilities	$ 20,030,865

LEASES - Weighted-average remai

LEASES - Weighted-average remaining lease term and weighted-average discount rate (Details)	Mar. 31, 2020
Leases
Operating, weighted-average remaining lease term	4 years 4 months 24 days
Operating, weighted-average discount rate	4.04%

LEASES - Other information (Det

LEASES - Other information (Details)	6 Months Ended
	Mar. 31, 2020USD ($)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used by operating leases	$ 3,304,184
Lease liabilities arising from obtaining new ROU assets:
Operating leases	$ 732,287

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 ($)	Mar. 31, 2020	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 ($)	Mar. 31, 2020	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		6 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
DIVIDENDS
Cash dividends paid on common stock	$ 300,000	$ 300,000	$ 380,685	$ 413,100

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
EARNINGS PER SHARE
Weighted average common shares outstanding, Basic	565,697	611,824	564,129	614,874
Weighted average of net additional shares outstanding assuming dilutive options exercised and proceeds used to purchase treasury stock and conversion of preferred stock	6,155	8,945	5,727	8,974
Weighted average number of shares outstanding, Diluted	571,852	620,769	569,856	623,848
Net income available to common shareholders	$ 699,319	$ 1,523,215	$ 1,151,188	$ 2,768,536
Net income available to common shareholders, diluted	$ 699,319	$ 1,523,215	$ 1,151,188	$ 2,768,536
Net earnings per share available to common shareholders, Basic (in dollars per share)	$ 1.24	$ 2.49	$ 2.04	$ 4.50
Net earnings per share available to common shareholders, Diluted (in dollars per share)	$ 1.22	$ 2.45	$ 2.02	$ 4.44

DEBT (Details)

DEBT (Details) $ in Millions	Mar. 31, 2020USD ($)	Mar. 31, 2020USD ($)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	$ 0.5
Real Estate Loan
Revolving credit facility
Number of cross defaults | item		0
Facility
Revolving credit facility
Revolving credit limit	110	$ 110
Increase in borrowing capacity available under loan accordion	25	25
Additional credit advances for certain inventory purchases	$ 10	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	$ 3.5	3.5
Current credit limit of the Facility	89.6	89.6
Outstanding borrowings under the Facility	43.2	43.2
Credit available under the Facility	$ 46.4	$ 46.4
Average interest rate		2.63%
Peak borrowings under the Facility		$ 71.6
Average borrowings under the Facility		42.9
Average availability under the Facility		$ 30
Facility | LIBOR
Revolving credit facility
Variable rate basis	LIBOR
Minimum basis points added to reference rate (as a percent)	1.00%
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%

BUSINESS SEGMENTS (Details)

BUSINESS SEGMENTS (Details)	3 Months Ended		6 Months Ended
	Mar. 31, 2020USD ($)	Mar. 31, 2019USD ($)	Mar. 31, 2020USD ($)item	Mar. 31, 2019USD ($)	Sep. 30, 2019USD ($)
Information by business segments
Number of reportable business segments | item			2
Total external revenues	$ 337,886,516	$ 310,715,873	$ 697,987,619	$ 655,449,793
Depreciation	790,901	625,603	1,516,361	1,217,986
Amortization		15,625		31,250
Operating income (loss)	1,389,662	2,556,511	2,556,177	4,623,426
Interest expense	387,263	396,576	859,686	719,526
Income (loss) from operations before taxes	1,032,319	2,196,215	1,733,188	3,943,536
Total assets	163,866,313	118,682,356	163,866,313	118,682,356	$ 157,711,622
Capital expenditures	788,444	1,214,274	2,182,469	2,370,779
Cigarettes
Information by business segments
Total external revenues	228,865,603	211,572,049	473,915,657	449,933,631
Tobacco
Information by business segments
Total external revenues	51,639,145	44,665,339	105,956,693	92,860,385
Confectionery
Information by business segments
Total external revenues	18,027,050	18,092,990	38,863,912	37,810,656
Health food
Information by business segments
Total external revenues	12,994,651	11,973,455	23,091,146	22,964,078
Foodservice & other
Information by business segments
Total external revenues	26,360,067	24,412,040	56,160,211	51,881,043
Other
Information by business segments
Operating income (loss)	(1,603,677)	(1,499,641)	(2,943,870)	(3,091,166)
Interest expense	354,673	359,753	793,122	644,929
Income (loss) from operations before taxes	(1,958,348)	(1,859,393)	(3,736,991)	(3,736,095)
Total assets	478,777	241,143	478,777	241,143
Wholesale Segment
Information by business segments
Total external revenues	324,891,865	298,742,418	674,896,473	632,485,715
Depreciation	443,143	378,172	875,405	742,304
Amortization		15,625		31,250
Operating income (loss)	2,907,818	3,797,109	6,556,832	7,500,992
Interest expense	32,590	36,823	66,564	74,597
Income (loss) from operations before taxes	2,902,907	3,793,759	6,522,571	7,461,683
Total assets	142,552,270	100,479,809	142,552,270	100,479,809
Capital expenditures	439,019	824,557	1,232,700	1,608,673
Wholesale Segment | Cigarettes
Information by business segments
Total external revenues	228,865,603	211,572,049	473,915,657	449,933,631
Wholesale Segment | Tobacco
Information by business segments
Total external revenues	51,639,145	44,665,339	105,956,693	92,860,385
Wholesale Segment | Confectionery
Information by business segments
Total external revenues	18,027,050	18,092,990	38,863,912	37,810,656
Wholesale Segment | Foodservice & other
Information by business segments
Total external revenues	26,360,067	24,412,040	56,160,211	51,881,043
Retail Segment
Information by business segments
Total external revenues	12,994,651	11,973,455	23,091,146	22,964,078
Depreciation	347,758	247,431	640,956	475,682
Operating income (loss)	85,521	259,043	(1,056,785)	213,600
Income (loss) from operations before taxes	87,760	261,849	(1,052,392)	217,948
Total assets	20,835,266	17,961,404	20,835,266	17,961,404
Capital expenditures	349,425	389,717	949,769	762,106
Retail Segment | Health food
Information by business segments
Total external revenues	$ 12,994,651	$ 11,973,455	$ 23,091,146	$ 22,964,078

COMMON STOCK REPURCHASE (Detail

COMMON STOCK REPURCHASE (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Number of shares of common stock repurchased	307	24,527	416	34,959
Value of shares of common stock repurchased		$ 2.3		$ 3.2
Maximum
Value of shares of common stock repurchased	$ 0.1		$ 0.1

SUBSEQUENT EVENT (Details)

SUBSEQUENT EVENT (Details) - Subsequent events - Team Sledd $ in Millions	1 Months Ended
	Apr. 20, 2020USD ($)
SUBSEQUENT EVENT
Contribution in cash	$ 10
Contribution structured as equity	6.5
Contribution structured as a secured line of credit	$ 3.5
Ownership (as a percent)	45.00%
Anticipated redemption period of certain membership interests	6 years
Sledd
SUBSEQUENT EVENT
Ownership (as a percent)	55.00%