AMCON Distributing (DIT) 10-Q 19 Jan 21 2021 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Dec. 31, 2020	Jan. 15, 2021
Document and Entity Information
Document Type	10-Q
Document Period End Date	Dec. 31, 2020
Entity Registrant Name	AMCON DISTRIBUTING CO
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		551,369
Entity Central Index Key	0000928465
Current Fiscal Year End Date	--09-30
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Dec. 31, 2020	Sep. 30, 2020
Current assets:
Cash	$ 515,098	$ 661,195
Accounts receivable, less allowance for doubtful accounts of $0.8 million at December 2020 and $0.9 million at September 2020	29,712,850	34,278,429
Inventories, net	67,832,187	98,971,773
Prepaid and other current assets	7,884,267	2,091,645
Total current assets	105,944,402	136,003,042
Property and equipment, net	17,171,501	17,497,274
Operating lease right-of-use assets, net	18,660,239	18,936,126
Note receivable	3,500,000	3,500,000
Goodwill	4,436,950	4,436,950
Other intangible assets, net	500,000	500,000
Equity method investment	7,189,433	6,744,095
Other assets	343,593	383,786
Total assets	157,746,118	188,001,273
Current liabilities:
Accounts payable	17,054,417	22,108,299
Accrued expenses	11,137,468	8,306,160
Accrued wages, salaries and bonuses	2,468,758	4,761,020
Income taxes payable	465,553	567,408
Current operating lease liabilities	5,756,176	5,607,098
Current maturities of long-term debt	512,344	516,850
Total current liabilities	37,394,716	41,866,835
Credit facility	33,051,949	61,971,682
Deferred income tax liability, net	1,939,311	1,806,575
Long-term operating lease liabilities	13,575,388	14,028,606
Long-term debt, less current maturities	5,477,181	2,608,794
Other long-term liabilities	757,387	927,241
Shareholders' equity:
Preferred stock, $.01 par value, 1,000,000 shares authorized
Common stock, $.01 par value, 3,000,000 shares authorized, 551,369 shares outstanding at December 2020 and 537,715 shares outstanding at September 2020	8,834	8,697
Additional paid-in capital	25,007,239	24,282,058
Retained earnings	71,401,400	71,362,334
Treasury stock at cost	(30,867,287)	(30,861,549)
Total shareholders' equity	65,550,186	64,791,540
Total liabilities and shareholders' equity	$ 157,746,118	$ 188,001,273

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Dec. 31, 2020	Sep. 30, 2020
Condensed Consolidated Balance Sheets
Accounts receivable, allowance for doubtful accounts	$ 0.8	$ 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)	551,369	537,715

Condensed Consolidated Unaudite

Condensed Consolidated Unaudited Statements of Operations - USD ($)	3 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Condensed Consolidated Unaudited Statements of Operations
Sales (including excise taxes of $100.5 million and $94.0 million, respectively)	$ 404,744,774	$ 360,101,103
Cost of sales	381,282,795	339,256,392
Gross profit	23,461,979	20,844,711
Selling, general and administrative expenses	18,599,816	18,952,735
Depreciation and amortization	774,285	725,461
Total operating expenses	19,374,101	19,678,196
Operating income	4,087,878	1,166,515
Other expense (income):
Interest expense	376,430	472,423
Other (income), net	(41,823)	(6,778)
Total other expenses (income)	334,607	465,645
Income from operations before income taxes	3,753,271	700,870
Income tax expense	1,011,000	249,000
Equity method investment earnings, net of tax	335,339
Net income available to common shareholders	$ 3,077,610	$ 451,870
Basic earnings per share available to common shareholders (in dollars per share)	$ 5.61	$ 0.80
Diluted earnings per share available to common shareholders (in dollars per share)	$ 5.57	$ 0.80
Basic weighted average shares outstanding (in shares)	548,125	562,578
Diluted weighted average shares outstanding (in shares)	552,059	567,794
Dividends declared and paid per common share (in dollars per share)	$ 0.18	$ 0.18

Condensed Consolidated Unaudi_2

Condensed Consolidated Unaudited Statements of Operations (Parenthetical) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Condensed Consolidated Unaudited Statements of Operations
Sales, excise taxes	$ 100.5	$ 94

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, 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)
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)
Balance at Sep. 30, 2020	$ 8,697	$ (30,861,549)	24,282,058	71,362,334	$ 64,791,540
Balance (in shares) at Sep. 30, 2020	869,867	(332,152)			537,715
Increase (Decrease) in Stockholders' Equity
Dividends on common stock				(3,038,544)	$ (3,038,544)
Compensation expense and issuance of stock in connection with equity-based awards	$ 137		725,181		725,318
Compensation expense and issuance of stock in connection with equity-based awards (in shares)	13,722
Repurchase of common stock		$ (5,738)			(5,738)
Repurchase of common stock (in shares)		(68)
Net income				3,077,610	3,077,610
Balance at Dec. 31, 2020	$ 8,834	$ (30,867,287)	$ 25,007,239	$ 71,401,400	$ 65,550,186
Balance (in shares) at Dec. 31, 2020	883,589	(332,220)			551,369

Condensed Consolidated Unaudi_4

Condensed Consolidated Unaudited Statements of Shareholders' Equity (Parenthetical) - $ / shares	3 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Condensed Consolidated Unaudited Statements of Shareholders’ Equity
Dividends on common stock	$ 5.18	$ 0.46

Condensed Consolidated Unaudi_5

Condensed Consolidated Unaudited Statements of Cash Flows - USD ($)	3 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 3,077,610	$ 451,870
Adjustments to reconcile net income from operations to net cash flows from (used in) operating activities:
Depreciation	774,285	725,461
Equity method investment earnings, net of tax	(335,339)
Loss (gain) on sales of property and equipment	(2,000)
Equity-based compensation	346,891	129,931
Deferred income taxes	132,736	154,792
Provision (recovery) for losses on doubtful accounts	(24,000)	371,000
Inventory allowance	172,137	51,587
Other		(42,011)
Changes in assets and liabilities:
Accounts receivable	4,589,579	(7,171,661)
Inventories	30,967,449	39,333,140
Prepaid and other current assets	(5,792,622)	(1,578,437)
Other assets	40,193	42,052
Accounts payable	(5,069,889)	(1,623,841)
Accrued expenses and accrued wages, salaries and bonuses	(1,793,704)	(2,509,401)
Other long-term liabilities	(169,854)
Income taxes payable and receivable	(211,854)	95,772
Net cash flows from (used in) operating activities	26,701,618	28,430,254
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	(432,505)	(1,228,462)
Proceeds from sales of property and equipment	2,000
Net cash flows from (used in) investing activities	(430,505)	(1,228,462)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under revolving credit facility	385,943,710	330,596,076
Repayments under revolving credit facility	(414,863,443)	(357,448,761)
Proceeds from borrowings on long-term debt	3,000,000
Principal payments on long-term debt	(136,119)	(131,580)
Repurchase of common stock	(5,738)	(8,156)
Dividends on common stock	(105,599)	(107,084)
Settlement and withholdings of equity-based awards	(250,021)
Net cash flows from (used in) financing activities	(26,417,210)	(27,099,505)
Net change in cash	(146,097)	102,287
Cash, beginning of period	661,195	337,704
Cash, end of period	515,098	439,991
Supplemental disclosure of cash flow information:
Cash paid during the period for interest	426,655	519,459
Cash paid (refunded) during the period for income taxes	1,090,119	(1,563)
Supplemental disclosure of non-cash information:
Equipment acquisitions classified in accounts payable	16,007	234,816
Dividends declared, not paid	2,932,945	166,546
Issuance of common stock in connection with the vesting and exercise of equity-based awards	$ 949,812	$ 990,653

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION	3 Months Ended
	Dec. 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 December 2020, Convenience Store News ranked us as the seventh (7th) 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 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 Wrigley. 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 (“Akin’s”), 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. EOM 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, 2020, 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, 2020 and December 31, 2019 have been referred to throughout this quarterly report as Q1 2021 and Q1 2020, respectively. The fiscal balance sheet dates as of December 31, 2020 and September 30, 2020 have been referred to as December 2020 and September 2020, respectively. ACCOUNTING PRONOUNCEMENTS Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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. In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” The amendments in this update provide optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting as the market transitions from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. The amendments in this update were effective upon issuance for all entities through December 31, 2022. The Company is currently reviewing this ASU and its potential impact on our consolidated financial statements.

INVENTORIES

INVENTORIES	3 Months Ended
	Dec. 31, 2020
INVENTORIES
INVENTORIES	2. INVENTORIES Inventories in our wholesale segment consisted of finished goods and are stated at the lower of cost or net realizable value, determined on a FIFO basis. Inventories in our retail segment consisted of finished goods and are stated at the lower of cost or market using the retail method. The wholesale distribution and retail health food segment inventories consist of finished products purchased in bulk quantities to be redistributed to the Company’s customers or sold at retail. Finished goods included total reserves of approximately $0.9 million at December 2020 and $0.7 million at September 2020. These reserves include the Company’s obsolescence allowance, which reflects estimated unsalable or non-refundable inventory based upon an evaluation of slow moving and discontinued products.

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS	3 Months Ended
	Dec. 31, 2020
GOODWILL AND OTHER INTANGIBLE ASSETS
GOODWILL AND OTHER INTANGIBLE ASSETS	3. GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill at December 2020 and September 2020 was as follows: December September 2020 2020 Wholesale Segment $ 4,436,950 $ 4,436,950 Other intangible assets at December 2020 and September 2020 consisted of the following: December September 2020 2020 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 2020 and September 2020. 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 2020.

EQUITY METHOD INVESTMENT

EQUITY METHOD INVESTMENT	3 Months Ended
	Dec. 31, 2020
EQUITY METHOD INVESTMENT
EQUITY METHOD INVESTMENT	4. EQUITY METHOD INVESTMENT In April 2020, the Company completed a 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. 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 which is subordinate to the liens of Team Sledd's existing secured lenders. At December 2020, AMCON owned approximately 44% of Team Sledd’s outstanding equity, with a carrying value of $7.2 million. For the three months ended December 2020, the Company recognized $0.3 million in equity in earnings (net of income taxes) from its investment in Team Sledd. The Company’s secured loan to Team Sledd had a carrying value of $3.5 million as of December 2020. Pursuant to an operating agreement between the Company and Sledd, it is anticipated that certain membership interests in Team Sledd will be redeemed over a period of years, with such redemptions to be 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. Team Sledd’s summarized financial data for the three months ended December 2020 was as follows: For the three months ended December 2020 (Unaudited) Sales $ 164,568,084 Gross profit $ 7,847,390 Net income before income taxes $ 1,003,793 Net income attributable to AMCON, net of tax $ 335,339

DIVIDENDS

DIVIDENDS	3 Months Ended
	Dec. 31, 2020
DIVIDENDS
DIVIDENDS	5. DIVIDENDS The Company paid a $0.18 per share cash dividend on its common stock totaling $0.1 million in each of the three month periods ended December 2020 and December 2019, respectively. During Q1 2021, the Company also declared a $5.00 per share special dividend totaling approximately $2.9 million. This special dividend will be paid in the Company’s second fiscal quarter.

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	Dec. 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 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 by the sum of the weighted average common shares outstanding and the weighted average dilutive equity awards. For the three months ended December 2020 2019 Basic Diluted Basic Diluted Weighted average common shares outstanding 548,125 548,125 562,578 562,578 Weighted average net additional shares outstanding assuming dilutive options exercised and proceeds used to purchase treasury stock (1) — 3,934 — 5,216 Weighted average number of shares outstanding 548,125 552,059 562,578 567,794 Net income available to common shareholders $ 3,077,610 $ 3,077,610 $ 451,870 $ 451,870 Net earnings per share available to common shareholders $ 5.61 $ 5.57 $ 0.80 $ 0.80 (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, 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 (“BMO”) participating in a loan syndication. CREDIT FACILITY The Facility included the following significant terms at December 2020: · 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. For this purpose, in no event shall LIBOR be less than 50 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 December 2020 was $87.7 million, of which $33.1 million was outstanding, leaving $54.6 million available. At December 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 2.13% at December 2020. For the three months ended December 2020, our peak borrowings under the Facility were $71.7 million, and our average borrowings and average availability under the Facility were $49.5 million and $43.1 million, respectively. LONG-TERM DEBT In addition to the Facility, the Company also had the following long term obligations at December 2020. December 2020 September 2020 Real Estate Loan, interest payable at a fixed rate of 3.625% with monthly installments of principal and interest of $47,399 through February 2025 with remaining principal due March 2025, collateralized by three distribution facilities $ 4,765,058 $ 1,866,231 Note payable, interest payable at a fixed rate of 4.50% with quarterly installments of principal and interest of $49,114 through June 2023 with remaining principal due September 2023 1,224,467 1,259,413 5,989,525 3,125,644 Less current maturities (512,344) (516,850) $ 5,477,181 $ 2,608,794 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 Real Estate Loan with BMO 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 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.

EQUITY-BASED INCENTIVE AWARDS

EQUITY-BASED INCENTIVE AWARDS	3 Months Ended
	Dec. 31, 2020
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 2020, awards with respect to a total of 120,751 shares, net of forfeitures, had been awarded pursuant to the Omnibus Plans and awards with respect to another 14,249 shares may be awarded under the Omnibus Plans. Stock Options The following is a summary of stock option activity during Q1 2021: Weighted Number Average of Exercise Shares Price Outstanding at September 2020 34,350 $ 80.33 Granted — — Exercised (7,300) 59.19 Forfeited/Expired (500) 84.00 Outstanding at December 2020 26,550 $ 86.07 Restricted Stock Units At December 2020, 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 Date of award: October 2018 October 2019 October 2020 Original number of awards issued: Service period: 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) There is no direct cost to the recipients of the restricted stock units, except for any applicable taxes. The recipients of the restricted stock units are entitled to the customary adjustments in the event of stock splits, stock dividends, and certain other distributions on 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 liability method. The following summarizes restricted stock unit activity under the Omnibus Plans during Q1 2021: Number Weighted of Average Shares Fair Value Nonvested restricted stocks units at September 2020 28,971 $ 64.59 Granted 20,500 69.01 Vested (14,251) 68.65 Expired — — Nonvested restricted stocks units at December 2020 35,220 $ 118.95 All Equity-Based Awards (stock options and restricted stock units) Net income before income taxes included compensation expense of approximately $0.3 million and $0.1 million during Q1 2021 and Q1 2020, respectively, related to the amortization of all equity-based compensation awards. Total unamortized compensation expense related to these awards at December 2020 and September 2020 was approximately $3.9 million and $1.3 million, respectively.

BUSINESS SEGMENTS

BUSINESS SEGMENTS	3 Months Ended
	Dec. 31, 2020
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 and income earned 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 2020 External revenues: Cigarettes $ 276,589,707 $ — $ — $ 276,589,707 Tobacco 64,845,544 — — 64,845,544 Confectionery 20,164,577 — — 20,164,577 Health food — 11,147,098 — 11,147,098 Foodservice & other 31,997,848 — — 31,997,848 Total external revenue 393,597,676 11,147,098 — 404,744,774 Depreciation 472,693 301,592 — 774,285 Operating income (loss) 5,788,239 (114,987) (1,585,374) 4,087,878 Interest expense 29,536 — 346,894 376,430 Income (loss) from operations before taxes 5,769,260 (112,159) (1,903,830) 3,753,271 Equity method investment earnings, net of tax — — 335,339 335,339 Total assets 128,232,076 18,583,221 10,930,821 157,746,118 Capital expenditures 406,440 42,072 — 448,512 Wholesale Retail Segment Segment Other Consolidated THREE MONTHS ENDED DECEMBER 2019 External revenue: 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 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

COMMON STOCK REPURCHASES

COMMON STOCK REPURCHASES	3 Months Ended
	Dec. 31, 2020
COMMON STOCK REPURCHASES
TREASURY STOCK	10. COMMON STOCK REPURCHASES The Company repurchased a total of 68 and 109 shares of its common stock during the three months ended December 2020 and December 2019, respectively, for cash totaling less than $0.1 million in each respective period. All repurchased shares were recorded in treasury stock at cost.

IMPACT OF COVID-19

IMPACT OF COVID-19	3 Months Ended
	Dec. 31, 2020
IMPACT OF COVID-19
IMPACT OF COVID-19	11. 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 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 essential 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. The Company continues to monitor medical, regulatory and consumer developments, and community-based regulations, however, we cannot 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 or are reinstated for a prolonged period of time and materially disrupt consumer demand, our supply chain or our ability to procure products or fulfill orders due to disruptions in our warehouse operations.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION (Policies)	3 Months Ended
	Dec. 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 December 2020, Convenience Store News ranked us as the seventh (7th) 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 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 Wrigley. 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 (“Akin’s”), 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. EOM 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, 2020, 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, 2020 and December 31, 2019 have been referred to throughout this quarterly report as Q1 2021 and Q1 2020, respectively. The fiscal balance sheet dates as of December 31, 2020 and September 30, 2020 have been referred to as December 2020 and September 2020, respectively.
ACCOUNTING PRONOUNCEMENTS	ACCOUNTING PRONOUNCEMENTS Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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. In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” The amendments in this update provide optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting as the market transitions from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. The amendments in this update were effective upon issuance for all entities through December 31, 2022. The Company is currently reviewing this ASU and its potential impact on our consolidated financial statements.

GOODWILL AND OTHER INTANGIBLE_2

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	3 Months Ended
	Dec. 31, 2020
GOODWILL AND OTHER INTANGIBLE ASSETS
Schedule of goodwill	December September 2020 2020 Wholesale Segment $ 4,436,950 $ 4,436,950
Schedule of other intangible assets	December September 2020 2020 Trademarks and tradenames (Retail Segment) $ 500,000 $ 500,000

EQUITY METHOD INVESTMENT (Table

EQUITY METHOD INVESTMENT (Tables)	3 Months Ended
	Dec. 31, 2020
EQUITY METHOD INVESTMENT
Summarized financial data of equity investee	For the three months ended December 2020 (Unaudited) Sales $ 164,568,084 Gross profit $ 7,847,390 Net income before income taxes $ 1,003,793 Net income attributable to AMCON, net of tax $ 335,339

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	Dec. 31, 2020
EARNINGS PER SHARE
Schedule of net earnings per share available to common shareholders	For the three months ended December 2020 2019 Basic Diluted Basic Diluted Weighted average common shares outstanding 548,125 548,125 562,578 562,578 Weighted average net additional shares outstanding assuming dilutive options exercised and proceeds used to purchase treasury stock (1) — 3,934 — 5,216 Weighted average number of shares outstanding 548,125 552,059 562,578 567,794 Net income available to common shareholders $ 3,077,610 $ 3,077,610 $ 451,870 $ 451,870 Net earnings per share available to common shareholders $ 5.61 $ 5.57 $ 0.80 $ 0.80 (1) Diluted earnings per share calculation includes all stock options and restricted stock units deemed to be dilutive.

DEBT (Tables)

DEBT (Tables)	3 Months Ended
	Dec. 31, 2020
DEBT
Schedule of long-term obligations	December 2020 September 2020 Real Estate Loan, interest payable at a fixed rate of 3.625% with monthly installments of principal and interest of $47,399 through February 2025 with remaining principal due March 2025, collateralized by three distribution facilities $ 4,765,058 $ 1,866,231 Note payable, interest payable at a fixed rate of 4.50% with quarterly installments of principal and interest of $49,114 through June 2023 with remaining principal due September 2023 1,224,467 1,259,413 5,989,525 3,125,644 Less current maturities (512,344) (516,850) $ 5,477,181 $ 2,608,794

EQUITY-BASED INCENTIVE AWARDS (

EQUITY-BASED INCENTIVE AWARDS (Tables)	3 Months Ended
	Dec. 31, 2020
EQUITY-BASED INCENTIVE AWARDS
Summary of stock options activity	Weighted Number Average of Exercise Shares Price Outstanding at September 2020 34,350 $ 80.33 Granted — — Exercised (7,300) 59.19 Forfeited/Expired (500) 84.00 Outstanding at December 2020 26,550 $ 86.07
Schedule of restricted stock unit awards	Restricted Restricted Restricted Date of award: October 2018 October 2019 October 2020 Original number of awards issued: Service period: 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)
Summary of restricted stock unit activity	Number Weighted of Average Shares Fair Value Nonvested restricted stocks units at September 2020 28,971 $ 64.59 Granted 20,500 69.01 Vested (14,251) 68.65 Expired — — Nonvested restricted stocks units at December 2020 35,220 $ 118.95

BUSINESS SEGMENTS (Tables)

BUSINESS SEGMENTS (Tables)	3 Months Ended
	Dec. 31, 2020
BUSINESS SEGMENTS
Schedule of segment information	Wholesale Retail Segment Segment Other Consolidated THREE MONTHS ENDED DECEMBER 2020 External revenues: Cigarettes $ 276,589,707 $ — $ — $ 276,589,707 Tobacco 64,845,544 — — 64,845,544 Confectionery 20,164,577 — — 20,164,577 Health food — 11,147,098 — 11,147,098 Foodservice & other 31,997,848 — — 31,997,848 Total external revenue 393,597,676 11,147,098 — 404,744,774 Depreciation 472,693 301,592 — 774,285 Operating income (loss) 5,788,239 (114,987) (1,585,374) 4,087,878 Interest expense 29,536 — 346,894 376,430 Income (loss) from operations before taxes 5,769,260 (112,159) (1,903,830) 3,753,271 Equity method investment earnings, net of tax — — 335,339 335,339 Total assets 128,232,076 18,583,221 10,930,821 157,746,118 Capital expenditures 406,440 42,072 — 448,512 Wholesale Retail Segment Segment Other Consolidated THREE MONTHS ENDED DECEMBER 2019 External revenue: 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 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

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION (Details)	1 Months Ended	3 Months Ended
	Dec. 31, 2020ft²item	Dec. 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	7
Number of distribution centers		6
Floor space occupied by distribution centers (in square feet) | ft²	685,000	685,000
Retail Segment
Number of operating health food retail stores	21	21
Number of products sold or distributed		33,000
Retail Segment | Florida | Chamberlin's
Number of operating health food retail stores	7	7
Retail Segment | Florida | Earth Origins Markets
Number of operating health food retail stores	8	8
Retail Segment | Midwest | Akin's
Number of operating health food retail stores	6	6

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Millions	Dec. 31, 2020	Sep. 30, 2020
INVENTORIES
Total reserves on finished goods	$ 0.9	$ 0.7

GOODWILL AND OTHER INTANGIBLE_3

GOODWILL AND OTHER INTANGIBLE ASSETS - Goodwill (Details) - USD ($)	Dec. 31, 2020	Sep. 30, 2020
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, 2020	Sep. 30, 2020
Other intangible assets, net	$ 500,000	$ 500,000
Trademarks and tradenames | Retail Segment
Other intangible assets, net	$ 500,000	$ 500,000

EQUITY METHOD INVESTMENT (Detai

EQUITY METHOD INVESTMENT (Details) - USD ($)	1 Months Ended	3 Months Ended
	Apr. 30, 2020	Dec. 31, 2020	Sep. 30, 2020
EQUITY METHOD INVESTMENT
Carrying value of investment		$ 7,189,433	$ 6,744,095
Equity method investment earnings, net of tax		335,339
Carrying value of secured loan		$ 3,500,000	$ 3,500,000
Team Sledd
EQUITY METHOD INVESTMENT
Contribution in cash	$ 10,000,000
Contribution structured as equity	6,500,000
Contribution structured as a secured loan	$ 3,500,000
Ownership (as a percent)		44.00%
Carrying value of investment		$ 7,200,000
Equity method investment earnings, net of tax		300,000
Carrying value of secured loan		$ 3,500,000

EQUITY METHOD INVESTMENT - Equi

EQUITY METHOD INVESTMENT - Equity investee's summarized financial data (Details)	3 Months Ended
	Dec. 31, 2020USD ($)
EQUITY METHOD INVESTMENT
Net income attributable to AMCON, net of tax	$ 335,339
Team Sledd
EQUITY METHOD INVESTMENT
Sales	164,568,084
Gross profit	7,847,390
Net income before income taxes	1,003,793
Net income attributable to AMCON, net of tax	$ 335,339

DIVIDENDS (Details)

DIVIDENDS (Details) - USD ($)	3 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
DIVIDENDS
Cash dividend paid on common stock (in USD per share)	$ 0.18	$ 0.18
Cash dividend paid on common stock	$ 105,599	$ 107,084
Special dividend declared (in USD per share)	$ 5
Special dividend declared	$ 2,900,000

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($)	3 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
EARNINGS PER SHARE
Weighted average common shares outstanding, Basic	548,125	562,578
Weighted average of net additional shares outstanding assuming dilutive options exercised and proceeds used to purchase treasury stock	3,934	5,216
Weighted average number of shares outstanding, Diluted	552,059	567,794
Net income available to common shareholders	$ 3,077,610	$ 451,870
Net income available to common shareholders, diluted	$ 3,077,610	$ 451,870
Net earnings per share available to common shareholders, Basic (in dollars per share)	$ 5.61	$ 0.80
Net earnings per share available to common shareholders, Diluted (in dollars per share)	$ 5.57	$ 0.80

DEBT - Credit Facility (Details

DEBT - Credit Facility (Details) - Credit Facility $ in Millions	3 Months Ended
	Dec. 31, 2020USD ($)
Revolving credit facility
Revolving credit limit	$ 110
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	$ 3.5
Current credit limit of the Facility	87.7
Outstanding borrowings under the Facility	33.1
Credit available under the Facility	$ 54.6
Average interest rate	2.13%
Peak borrowings under the Facility	$ 71.7
Average borrowings under the Facility	49.5
Average availability under the Facility	$ 43.1
LIBOR
Revolving credit facility
Variable rate basis	LIBOR
Minimum basis points added to reference rate (as a percent)	0.50%
Prime rate
Revolving credit facility
Variable rate basis	prime rate
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
Minimum | LIBOR
Revolving credit facility
Basis points added to reference rate (as a percent)	1.25%
Maximum | LIBOR
Revolving credit facility
Basis points added to reference rate (as a percent)	1.50%

DEBT - Long-Term Debt (Details)

DEBT - Long-Term Debt (Details)	3 Months Ended	12 Months Ended
	Dec. 31, 2020USD ($)item	Sep. 30, 2020USD ($)item
Long-term obligations
Long-term debt	$ 5,989,525	$ 3,125,644
Less current maturities	(512,344)	(516,850)
Long-term debt less current maturities	5,477,181	2,608,794
3.625% Real Estate Loan
Long-term obligations
Long-term debt	$ 4,765,058	$ 1,866,231
Fixed interest rate (as a percent)	3.625%	3.625%
Periodic installments of principal and interest	$ 47,399	$ 47,399
Number of owned distribution facilities which collateralize debt instrument | item	3	3
4.50% Note Payable
Long-term obligations
Long-term debt	$ 1,224,467	$ 1,259,413
Fixed interest rate (as a percent)	4.50%	4.50%
Periodic installments of principal and interest	$ 49,114	$ 49,114

DEBT - Cross Default and Co-Ter

DEBT - Cross Default and Co-Terminus Provisions and Other (Details) $ in Millions	3 Months Ended
	Dec. 31, 2020USD ($)item
Debt Instrument [Line Items]
Letter of credit issued for worker's compensation insurance carrier as part of the entity's self-insured loss control program | $	$ 0.5
3.625% Real Estate Loan
Debt Instrument [Line Items]
Number of cross defaults | item	0

EQUITY-BASED INCENTIVE AWARDS -

EQUITY-BASED INCENTIVE AWARDS - Omnibus Plans and Stock Options (Details)	3 Months Ended
	Dec. 31, 2020item$ / sharesshares
EQUITY-BASED INCENTIVE AWARD
Number of incentive plans | item	2
Omnibus Plans
EQUITY-BASED INCENTIVE AWARD
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	120,751
Number of additional shares that may be awarded under the plan	14,249
Stock Options
Number of Shares
Outstanding at the beginning of the period (in shares)	34,350
Exercised (in shares)	(7,300)
Forfeited/ Expired (in shares)	(500)
Outstanding at the end of the period (in shares)	26,550
Weighted Average Exercise Price
Outstanding at beginning of the period (in dollars per share) | $ / shares	$ 80.33
Exercised (in dollars per share) | $ / shares	59.19
Forfeited/ Expired (in dollars per share) | $ / shares	84
Outstanding at the end of the period (in dollars per share) | $ / shares	$ 86.07

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, 2020	Oct. 31, 2019	Oct. 31, 2018	Dec. 31, 2020	Sep. 30, 2020
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)				5,019
Fair value of non-vested awards at the end of the period				$ 597,000
Vested as of the end of the period (in shares)				10,031
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)				9,701
Fair value of non-vested awards at the end of the period				$ 1,154,000
Vested as of the end of the period (in shares)				4,849
Restricted Stock Units Awarded October 2019 | Vest in October 2021
EQUITY-BASED INCENTIVE AWARD
Units scheduled to vest				4,850
Restricted Stock Units Awarded October 2019 | Vest in October 2022
EQUITY-BASED INCENTIVE AWARD
Units scheduled to vest				4,851
Restricted Stock Units Awarded October 2020
EQUITY-BASED INCENTIVE AWARD
Original number of awards issued	20,500
Service period	36 months
Estimated fair value of award at grant date	$ 1,415,000
Non-vested awards outstanding at the end of the period (in shares)				20,500
Fair value of non-vested awards at the end of the period				$ 2,438,000
Units scheduled to vest				20,500
Restricted Stock Units
EQUITY-BASED INCENTIVE AWARD
Original number of awards issued				20,500
Non-vested awards outstanding at the end of the period (in shares)				35,220	28,971
Direct cost to the recipients of the restricted stock units				$ 0

EQUITY-BASED INCENTIVE AWARDS_3

EQUITY-BASED INCENTIVE AWARDS - Restricted Stock Unit Activity (Details) - Restricted Stock Units	3 Months Ended
	Dec. 31, 2020$ / sharesshares
Number of Shares
Nonvested restricted stock units at the beginning of the period (in shares) | shares	28,971
Granted (in shares) | shares	20,500
Vested (in shares) | shares	(14,251)
Nonvested restricted stock units at the end of the period (in shares) | shares	35,220
Weighted Average Fair Value
Nonvested restricted stock units at the beginning of the period (in dollars per share) | $ / shares	$ 64.59
Granted (in dollars per share) | $ / shares	69.01
Vested (in dollars per share) | $ / shares	68.65
Nonvested restricted stock units at the end of the period (in dollars per share) | $ / shares	$ 118.95

EQUITY-BASED INCENTIVE AWARDS_4

EQUITY-BASED INCENTIVE AWARDS - All Equity-Based Awards (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
EQUITY-BASED INCENTIVE AWARDS
Compensation expense	$ 0.3	$ 0.1
Total unamortized compensation expense	$ 3.9	$ 1.3

BUSINESS SEGMENTS (Details)

BUSINESS SEGMENTS (Details)	3 Months Ended
	Dec. 31, 2020USD ($)item	Dec. 31, 2019USD ($)	Sep. 30, 2020USD ($)
Information by business segments
Number of reportable business segments | item	2
Total external revenue	$ 404,744,774	$ 360,101,103
Depreciation	774,285	725,461
Operating income (loss)	4,087,878	1,166,515
Interest expense	376,430	472,423
Income (loss) from operations before taxes	3,753,271	700,870
Equity method investment earnings, net of tax	335,339
Total assets	157,746,118	147,600,457	$ 188,001,273
Capital expenditures	448,512	1,394,025
Cigarettes
Information by business segments
Total external revenue	276,589,707	245,050,054
Tobacco
Information by business segments
Total external revenue	64,845,544	54,317,548
Confectionery
Information by business segments
Total external revenue	20,164,577	20,836,862
Health food
Information by business segments
Total external revenue	11,147,098	10,096,495
Foodservice & other
Information by business segments
Total external revenue	31,997,848	29,800,144
Other
Information by business segments
Operating income (loss)	(1,585,374)	(1,340,193)
Interest expense	346,894	438,449
Income (loss) from operations before taxes	(1,903,830)	(1,778,642)
Equity method investment earnings, net of tax	335,339
Total assets	10,930,821	122,891
Wholesale Segment
Information by business segments
Total external revenue	393,597,676	350,004,608
Depreciation	472,693	432,263
Operating income (loss)	5,788,239	3,649,014
Interest expense	29,536	33,974
Income (loss) from operations before taxes	5,769,260	3,619,664
Total assets	128,232,076	125,529,755
Capital expenditures	406,440	793,681
Wholesale Segment | Cigarettes
Information by business segments
Total external revenue	276,589,707	245,050,054
Wholesale Segment | Tobacco
Information by business segments
Total external revenue	64,845,544	54,317,548
Wholesale Segment | Confectionery
Information by business segments
Total external revenue	20,164,577	20,836,862
Wholesale Segment | Foodservice & other
Information by business segments
Total external revenue	31,997,848	29,800,144
Retail Segment
Information by business segments
Total external revenue	11,147,098	10,096,495
Depreciation	301,592	293,198
Operating income (loss)	(114,987)	(1,142,306)
Income (loss) from operations before taxes	(112,159)	(1,140,152)
Total assets	18,583,221	21,947,811
Capital expenditures	42,072	600,344
Retail Segment | Health food
Information by business segments
Total external revenue	$ 11,147,098	$ 10,096,495

COMMON STOCK REPURCHASES (Detai

COMMON STOCK REPURCHASES (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Number of shares of common stock repurchased	68	109
Maximum
Value of shares of common stock repurchased	$ 0.1	$ 0.1