AMCON Distributing (DIT) 10-Q 18 Jan 22 2022 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Dec. 31, 2021	Jan. 14, 2022
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Dec. 31, 2021
Document Transition Report	false
Entity File Number	1-15589
Entity Registrant Name	AMCON DISTRIBUTING CO
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	47-0702918
Entity Address, Address Line One	7405 Irvington Road
Entity Address, City or Town	Omaha
Entity Address, State or Province	NE
Entity Address, Postal Zip Code	68122
City Area Code	402
Local Phone Number	331-3727
Title of 12(b) Security	Common Stock, $0.01 Par Value
Trading Symbol	DIT
Security Exchange Name	NYSEAMER
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		582,789
Entity Central Index Key	0000928465
Current Fiscal Year End Date	--09-30
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Dec. 31, 2021	Sep. 30, 2021
Current assets:
Cash	$ 840,961	$ 519,591
Accounts receivable, less allowance for doubtful accounts of $0.8 million at December 2021 and $0.9 million at September 2021	30,861,247	35,844,163
Inventories, net	97,742,318	95,212,085
Prepaid expenses and other current assets	4,830,698	4,999,125
Total current assets	134,275,224	136,574,964
Property and equipment, net	15,449,705	16,012,524
Operating lease right-of-use assets, net	16,942,549	17,846,529
Note receivable, net of current portion	3,325,000	3,325,000
Goodwill	4,436,950	4,436,950
Other intangible assets, net	500,000	500,000
Equity method investment	10,406,708	9,380,343
Other assets	312,635	334,819
Total assets	185,648,771	188,411,129
Current liabilities:
Accounts payable	18,372,775	24,235,042
Accrued expenses	9,686,140	11,468,955
Accrued wages, salaries and bonuses	2,892,772	4,489,852
Income taxes payable	1,194,512	867,160
Current operating lease liabilities	5,555,582	5,513,390
Current maturities of long-term debt	566,624	561,202
Total current liabilities	38,268,405	47,135,601
Credit facility	48,447,738	43,650,865
Deferred income tax liability, net	2,704,876	1,531,228
Long-term operating lease liabilities	11,723,408	12,669,157
Long-term debt, less current maturities	4,910,559	5,054,265
Other long-term liabilities	13,611	757,387
Shareholders' equity:
Preferred stock, $.01 par value, 1,000,000 shares authorized
Common stock, $.01 par value, 3,000,000 shares authorized, 582,789 shares outstanding at December 2021 and 551,369 shares outstanding at September 2021	9,148	8,834
Additional paid-in capital	26,999,735	24,918,781
Retained earnings	83,438,578	83,552,298
Treasury stock at cost	(30,867,287)	(30,867,287)
Total shareholders' equity	79,580,174	77,612,626
Total liabilities and shareholders' equity	$ 185,648,771	$ 188,411,129

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Dec. 31, 2021	Sep. 30, 2021
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)	582,789	551,369

Condensed Consolidated Unaudite

Condensed Consolidated Unaudited Statements of Operations - USD ($)	3 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Condensed Consolidated Unaudited Statements of Operations
Sales (including excise taxes of $97.1 million and $100.5 million, respectively)	$ 422,571,278	$ 404,744,774
Cost of sales	395,638,615	381,282,795
Gross profit	26,932,663	23,461,979
Selling, general and administrative expenses	22,390,740	18,599,816
Depreciation	784,245	774,285
Total operating expenses	23,174,985	19,374,101
Operating income	3,757,678	4,087,878
Other expense (income):
Interest expense	322,097	376,430
Other (income), net	(40,109)	(41,823)
Total other expenses (income)	281,988	334,607
Income from operations before income taxes	3,475,690	3,753,271
Income tax expense	1,245,000	1,011,000
Equity method investment earnings, net of tax	770,365	335,339
Net income available to common shareholders	$ 3,001,055	$ 3,077,610
Basic earnings per share available to common shareholders	$ 5.33	$ 5.61
Diluted earnings per share available to common shareholders	$ 5.18	$ 5.57
Basic weighted average shares outstanding	563,546	548,125
Diluted weighted average shares outstanding	578,964	552,059
Dividends paid per common share	$ 5.18	$ 0.18

Condensed Consolidated Unaudi_2

Condensed Consolidated Unaudited Statements of Operations (Parenthetical) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Condensed Consolidated Unaudited Statements of Operations
Sales, excise taxes	$ 97.1	$ 100.5

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, 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)
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)
Balance at Sep. 30, 2021	$ 8,834	$ (30,867,287)	24,918,781	83,552,298	$ 77,612,626
Balance (in shares) at Sep. 30, 2021	883,589	(332,220)			551,369
Increase (Decrease) in Stockholders' Equity
Dividends on common stock				(3,114,775)	$ (3,114,775)
Compensation expense and issuance of stock in connection with equity-based awards	$ 314		2,080,954		2,081,268
Compensation expense and issuance of stock in connection with equity-based awards (in shares)	31,420
Net income				3,001,055	3,001,055
Balance at Dec. 31, 2021	$ 9,148	$ (30,867,287)	$ 26,999,735	$ 83,438,578	$ 79,580,174
Balance (in shares) at Dec. 31, 2021	915,009	(332,220)			582,789

Condensed Consolidated Unaudi_4

Condensed Consolidated Unaudited Statements of Shareholders' Equity (Parenthetical) - $ / shares	3 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Condensed Consolidated Unaudited Statements of Shareholders' Equity
Dividends on common stock	$ 5.18	$ 5.18

Condensed Consolidated Unaudi_5

Condensed Consolidated Unaudited Statements of Cash Flows - USD ($)	3 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 3,001,055	$ 3,077,610
Adjustments to reconcile net income from operations to net cash flows from (used in) operating activities:
Depreciation	784,245	774,285
Equity method investment earnings, net of tax	(770,365)	(335,339)
(Gain) loss on sales of property and equipment	(31,000)	(2,000)
Equity-based compensation	710,056	346,891
Deferred income taxes	1,173,648	132,736
Provision for losses on doubtful accounts	(102,000)	(24,000)
Inventory allowance	99,304	172,137
Changes in assets and liabilities:
Accounts receivable	5,084,916	4,589,579
Inventories	(2,629,537)	30,967,449
Prepaid and other current assets	(6,573)	(5,792,622)
Other assets	22,184	40,193
Accounts payable	(5,750,609)	(5,069,889)
Accrued expenses and accrued wages, salaries and bonuses	(1,519,848)	(1,793,704)
Other long-term liabilities	(743,776)	(169,854)
Income taxes payable and receivable	71,352	(211,854)
Net cash flows from (used in) operating activities	(606,948)	26,701,618
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	(333,084)	(432,505)
Proceeds from sales of property and equipment	31,000	2,000
Principal payment received on note receivable	175,000
Net cash flows from (used in) investing activities	(127,084)	(430,505)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under revolving credit facility	439,039,482	385,943,710
Repayments under revolving credit facility	(434,242,609)	(414,863,443)
Proceeds from borrowings on long-term debt		3,000,000
Principal payments on long-term debt	(138,284)	(136,119)
Repurchase of common stock		(5,738)
Dividends on common stock	(3,114,775)	(105,599)
Settlement and withholdings of equity-based awards	(488,412)	(250,021)
Net cash flows from (used in) financing activities	1,055,402	(26,417,210)
Net change in cash	321,370	(146,097)
Cash, beginning of period	519,591	661,195
Cash, end of period	840,961	515,098
Supplemental disclosure of cash flow information:
Cash paid during the period for interest	333,941	426,655
Cash paid during the period for income taxes		1,090,119
Supplemental disclosure of non-cash information:
Equipment acquisitions classified in accounts payable	16,591	16,007
Dividends declared, not paid		2,932,945
Issuance of common stock in connection with the vesting and exercise of equity-based awards	$ 2,280,783	$ 949,812

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION	3 Months Ended
	Dec. 31, 2021
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 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 17,700 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 2021, Convenience Store News ranked us as the sixth (6th) 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 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 35,000 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 seven 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, 2021, 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, 2021 and December 31, 2020 have been referred to throughout this quarterly report as Q1 2022 and Q1 2021, respectively. The fiscal balance sheet dates as of December 31, 2021 and September 30, 2021 have been referred to as December 2021 and September 2021, 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, 2021
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 2021 and $0.8 million at September 2021. 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, 2021
GOODWILL AND OTHER INTANGIBLE ASSETS
GOODWILL AND OTHER INTANGIBLE ASSETS	3. GOODWILL AND OTHER INTANGIBLE ASSETS ​ Goodwill at December 2021 and September 2021 was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ December September ​ ​ 2021 ​ 2021 Wholesale Segment ​ $ 4,436,950 ​ $ 4,436,950 ​ ​ Other intangible assets at December 2021 and September 2021 consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ December September ​ ​ 2021 ​ 2021 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 2021 and September 2021. 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 2021.

EQUITY METHOD INVESTMENT

EQUITY METHOD INVESTMENT	3 Months Ended
	Dec. 31, 2021
EQUITY METHOD INVESTMENT.
EQUITY METHOD INVESTMENT	4. EQUITY METHOD INVESTMENT ​ The Company and Chas. M. Sledd Company (“Sledd”), a West Virginia wholesale distributor serving the convenience store industry, jointly own and operate Team Sledd, LLC (“Team Sledd”), a limited liability company which owns and operates 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 2021, AMCON owned approximately 49% of Team Sledd’s outstanding equity, with a carrying value of $10.4 million. For the three months ended December 2021 and December 2020, the Company recognized $0.8 million and $0.3 million, respectively, 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 $3.3 million and $3.5 million as of December 2021 and September 2021, respectively. As of September 2021, approximately $0.2 million of the secured loan balance was recorded as a component of prepaid expenses and other current assets on the consolidated balance sheet. During Q1 2022, Team Sledd repaid the approximately $0.2 million current balance of the secured loan. Pursuant to an operating agreement between the Company and Sledd, certain membership interests in Team Sledd may be redeemed over a period of years, with such redemptions being funded from the operations of Team Sledd. Any such redemptions would result in a corresponding increase in the percentage of the outstanding equity of Team Sledd owned by AMCON. ​ Team Sledd’s summarized unaudited financial data for the three months ended December 2021 and December 2020 was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended December 2021 For the three months ended December 2020 Sales ​ $ 181,417,094 ​ $ 164,568,084 Gross profit ​ ​ 9,817,979 ​ ​ 7,847,390 Net income before income taxes ​ ​ 2,074,836 ​ ​ 1,003,793 Net income attributable to AMCON, net of tax ​ ​ 770,365 ​ ​ 335,339 ​

DIVIDENDS

DIVIDENDS	3 Months Ended
	Dec. 31, 2021
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 2021 and December 2020, respectively. During Q1 2022, the Company declared and paid a $5.00 per share special dividend totaling approximately $3.0 million. During Q1 2021, the Company declared a $5.00 per share special dividend totaling approximately $2.9 million that was paid in Q2 2021.

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	Dec. 31, 2021
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 number of 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 number of common shares outstanding and the weighted average dilutive equity awards. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended December ​ ​ 2021 ​ 2020 ​ Basic Diluted Basic Diluted Weighted average number of common shares outstanding ​ ​ 563,546 ​ ​ 563,546 ​ ​ 548,125 ​ ​ 548,125 Weighted average net additional shares outstanding assuming dilutive options exercised and proceeds used to purchase treasury stock (1) ​ ​ — ​ ​ 15,418 ​ ​ — ​ ​ 3,934 Weighted average number of shares outstanding ​ ​ 563,546 ​ ​ 578,964 ​ ​ 548,125 ​ ​ 552,059 Net income available to common shareholders ​ $ 3,001,055 ​ $ 3,001,055 ​ $ 3,077,610 ​ $ 3,077,610 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net earnings per share available to common shareholders ​ $ 5.33 ​ $ 5.18 ​ $ 5.61 ​ $ 5.57 (1) Diluted earnings per share calculation includes all equity-based awards deemed to be dilutive.

DEBT

DEBT	3 Months Ended
	Dec. 31, 2021
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 2021: ​ ● 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 zero 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 $5.0 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 $5.0 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 from 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 2021 was $109.5 million, of which $48.4 million was outstanding, leaving $61.1 million available. ​ At December 2021, 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 1.40% at December 2021. For the three months ended December 2021, our peak borrowings under the Facility were $64.3 million, and our average borrowings and average availability under the Facility were $43.9 million and $55.4 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 (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 would cause the loan to be considered in default if the loans where BMO is a lender, including the revolving credit facility, were in default. There were no such cross defaults at December 2021. 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 $0.6 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, 2021
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 2021, awards with respect to a total of 123,970 shares, net of forfeitures, had been awarded pursuant to the Omnibus Plans and awards with respect to another 11,030 shares may be awarded under the Omnibus Plans. ​ Stock Options ​ The following is a summary of stock option activity during Q1 2022: ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ Number ​ Average ​ ​ of ​ Exercise ​ ​ Shares ​ Price Outstanding at September 2021 22,250 ​ $ 86.76 Granted — ​ ​ — Exercised (7,700) ​ 86.57 Forfeited/Expired — ​ — Outstanding at December 2021 14,550 ​ $ 86.86 ​ Restricted Stock Units ​ At December 2021, 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 Stock Units(1) Restricted Stock Units(2) Date of award: ​ October 2019 ​ ​ October 2020 Original number of awards issued: ​ 14,550 ​ ​ 20,500 Service period: ​ 36 months ​ ​ 36 months Estimated fair value of award at grant date: ​ $ 1,007,000 ​ $ 1,415,000 Non-vested awards outstanding at December 31, 2021: ​ ​ 4,851 ​ ​ 13,668 Fair value of non-vested awards at December 31, 2021 of approximately: ​ $ 968,000 ​ $ 2,727,000 (1) 9,699 of the restricted stock units were vested as of December 2021. The remaining 4,851 restricted stock units will vest in October 2022. (2) 6,832 of the restricted stock units were vested as of December 2021. 6,834 restricted stock units will vest in October 2022 and 6,834 will vest in October 2023. ​ 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 2022: ​ ​ ​ ​ ​ ​ ​ ​ ​ Number ​ Weighted ​ ​ of ​ Average ​ Shares Fair Value Nonvested restricted stock units at September 2021 35,220 ​ $ 148.98 Granted — ​ ​ — Vested (16,701) ​ ​ 139.32 Expired — ​ ​ — Nonvested restricted stock units at December 2021 18,519 ​ $ 199.51 ​ ​ Restricted Stock Awards ​ At December 2021, the Compensation Committee of the Board of Directors had authorized and approved the following restricted stock awards to members of the Company’s management team pursuant to the provisions of the Company’s Omnibus Plans: ​ ​ ​ ​ ​ ​ Restricted Stock Awards(1) Date of award: ​ October 2021 Original number of awards issued: ​ 15,100 Service period: ​ 36 months Estimated fair value of award at grant date: ​ $ 2,088,934 Non-vested awards outstanding at December 31, 2021: ​ ​ 15,100 Fair value of non-vested awards at December 31, 2021 of approximately: ​ $ 3,013,000 (1) The 15,100 restricted stock awards will vest in equal amounts in October 2022, October 2023 and October 2024. There is no direct cost to the recipients of the restricted stock awards, except for any applicable taxes. The restricted stock awards provide that the recipients receive common stock in the Company, subject to certain restrictions until such time as the awards vest. The recipients of the restricted stock awards 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 compensation expense recorded in the Company’s Statement of Operations reflects the straight-line amortized fair value. ​ The following summarizes restricted stock award activity under the Omnibus Plans during Q1 2022: ​ ​ ​ ​ ​ ​ ​ ​ ​ Number ​ Weighted ​ ​ of ​ Average ​ Shares Fair Value Nonvested restricted stock awards at September 2021 — ​ $ — Granted 15,100 ​ ​ 138.34 Vested — ​ ​ — Expired — ​ ​ — Nonvested restricted stock awards at December 2021 15,100 ​ $ 199.51 ​ All Equity-Based Awards (stock options, restricted stock units, and restricted stock awards) ​ Net income before income taxes included compensation expense of approximately $0.7 million and $0.3 million during Q1 2022 and Q1 2021, respectively, related to the amortization of all equity-based compensation awards. Total unamortized compensation expense related to these awards at December 2021 and September 2021 was approximately $5.0 million and $2.9 million, respectively.

BUSINESS SEGMENTS

BUSINESS SEGMENTS	3 Months Ended
	Dec. 31, 2021
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, equity method investment earnings, net of tax 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 2021 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ External revenues: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cigarettes ​ $ 279,366,392 ​ $ — ​ $ — ​ $ 279,366,392 Tobacco ​ ​ 69,068,234 ​ ​ — ​ ​ — ​ ​ 69,068,234 Confectionery ​ ​ 24,479,036 ​ ​ — ​ ​ — ​ ​ 24,479,036 Health food ​ ​ — ​ ​ 11,925,205 ​ ​ — ​ ​ 11,925,205 Foodservice & other ​ ​ 37,732,411 ​ ​ — ​ ​ — ​ ​ 37,732,411 Total external revenue ​ ​ 410,646,073 ​ ​ 11,925,205 ​ ​ — ​ ​ 422,571,278 Depreciation ​ ​ 486,765 ​ ​ 297,480 ​ ​ — ​ ​ 784,245 Operating income (loss) ​ ​ 7,438,666 ​ ​ 461,585 ​ ​ (4,142,573) ​ ​ 3,757,678 Interest expense ​ ​ 55,495 ​ ​ — ​ ​ 266,602 ​ ​ 322,097 Income (loss) from operations before taxes ​ ​ 7,391,732 ​ ​ 464,742 ​ ​ (4,380,784) ​ ​ 3,475,690 Equity method investment earnings, net of tax ​ ​ — ​ ​ — ​ ​ 770,365 ​ ​ 770,365 Total assets ​ ​ 153,998,433 ​ ​ 17,710,816 ​ ​ 13,939,522 ​ ​ 185,648,771 Capital expenditures ​ ​ 176,981 ​ ​ 44,445 ​ ​ — ​ ​ 221,426 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Wholesale ​ Retail ​ ​ ​ ​ ​ Segment Segment Other Consolidated THREE MONTHS ENDED DECEMBER 2020 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ External revenue: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 ​

COMMON STOCK REPURCHASES

COMMON STOCK REPURCHASES	3 Months Ended
	Dec. 31, 2021
COMMON STOCK REPURCHASES
COMMON STOCK REPURCHASES	10. COMMON STOCK REPURCHASES ​ The Company did not repurchase any shares of its common stock during the three months ended December 2021. The Company repurchased 68 shares of its common stock during the three months ended December 2020 for cash totaling less than $0.1 million. All repurchased shares were recorded in treasury stock at cost. ​

IMPACT OF COVID-19

IMPACT OF COVID-19	3 Months Ended
	Dec. 31, 2021
IMPACT OF COVID-19
IMPACT OF COVID-19	11. IMPACT OF COVID-19 ​ The Company continues to monitor a wide range of health, safety, and regulatory matters related to the continuing COVID-19 pandemic including its impact on our business operations. In particular, ongoing supply chain disruptions at consumer packaged goods (CPG) companies and the transportation companies that deliver their products have impacted product availability and costs across all markets including the convenience distribution industry in which our company operates. Additionally, the United States is experiencing an acute workforce shortage and increasing inflation which has created a hyper-competitive wage environment and has increased the Company’s operating costs and impacted its operations. Further, workplace mask, testing, and/or vaccine mandates similar to the recently proposed Emergency Temporary Standard from the Occupational Safety and Health Administration (OSHA) increase workforce complexities in addition to placing additional stress on the supply chain. We believe such measures, whether federal, state, or local, would have a material adverse impact on the Company’s ability to retain employees and staff both of its business segments and increase cost structures. Accordingly, ongoing or future disruptions to consumer demand, our supply chain, product pricing inflation, our ability to attract and retain employees, or our ability to procure products and fulfill orders, could negatively impact the Company’s operations and financial results in a substantially material manner.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Dec. 31, 2021
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 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 17,700 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 2021, Convenience Store News ranked us as the sixth (6th) 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 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 35,000 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 seven 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, 2021, 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, 2021 and December 31, 2020 have been referred to throughout this quarterly report as Q1 2022 and Q1 2021, respectively. The fiscal balance sheet dates as of December 31, 2021 and September 30, 2021 have been referred to as December 2021 and September 2021, 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, 2021
GOODWILL AND OTHER INTANGIBLE ASSETS
Schedule of goodwill	​ ​ ​ ​ ​ ​ ​ ​ ​ December September ​ ​ 2021 ​ 2021 Wholesale Segment ​ $ 4,436,950 ​ $ 4,436,950
Schedule of other intangible assets	​ ​ ​ ​ ​ ​ ​ ​ ​ December September ​ ​ 2021 ​ 2021 Trademarks and tradenames (Retail Segment) ​ $ 500,000 ​ $ 500,000

EQUITY METHOD INVESTMENT (Table

EQUITY METHOD INVESTMENT (Tables)	3 Months Ended
	Dec. 31, 2021
EQUITY METHOD INVESTMENT.
Summarized financial data of equity investee	​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended December 2021 For the three months ended December 2020 Sales ​ $ 181,417,094 ​ $ 164,568,084 Gross profit ​ ​ 9,817,979 ​ ​ 7,847,390 Net income before income taxes ​ ​ 2,074,836 ​ ​ 1,003,793 Net income attributable to AMCON, net of tax ​ ​ 770,365 ​ ​ 335,339

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	Dec. 31, 2021
EARNINGS PER SHARE
Schedule of net earnings per share available to common shareholders	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended December ​ ​ 2021 ​ 2020 ​ Basic Diluted Basic Diluted Weighted average number of common shares outstanding ​ ​ 563,546 ​ ​ 563,546 ​ ​ 548,125 ​ ​ 548,125 Weighted average net additional shares outstanding assuming dilutive options exercised and proceeds used to purchase treasury stock (1) ​ ​ — ​ ​ 15,418 ​ ​ — ​ ​ 3,934 Weighted average number of shares outstanding ​ ​ 563,546 ​ ​ 578,964 ​ ​ 548,125 ​ ​ 552,059 Net income available to common shareholders ​ $ 3,001,055 ​ $ 3,001,055 ​ $ 3,077,610 ​ $ 3,077,610 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net earnings per share available to common shareholders ​ $ 5.33 ​ $ 5.18 ​ $ 5.61 ​ $ 5.57 (1) Diluted earnings per share calculation includes all equity-based awards deemed to be dilutive.

EQUITY-BASED INCENTIVE AWARDS (

EQUITY-BASED INCENTIVE AWARDS (Tables)	3 Months Ended
	Dec. 31, 2021
EQUITY-BASED INCENTIVE AWARDS
Summary of stock options activity	​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ Number ​ Average ​ ​ of ​ Exercise ​ ​ Shares ​ Price Outstanding at September 2021 22,250 ​ $ 86.76 Granted — ​ ​ — Exercised (7,700) ​ 86.57 Forfeited/Expired — ​ — Outstanding at December 2021 14,550 ​ $ 86.86
Schedule of restricted stock unit awards	​ ​ ​ ​ ​ ​ ​ ​ ​ Restricted Stock Units(1) Restricted Stock Units(2) Date of award: ​ October 2019 ​ ​ October 2020 Original number of awards issued: ​ 14,550 ​ ​ 20,500 Service period: ​ 36 months ​ ​ 36 months Estimated fair value of award at grant date: ​ $ 1,007,000 ​ $ 1,415,000 Non-vested awards outstanding at December 31, 2021: ​ ​ 4,851 ​ ​ 13,668 Fair value of non-vested awards at December 31, 2021 of approximately: ​ $ 968,000 ​ $ 2,727,000 (1) 9,699 of the restricted stock units were vested as of December 2021. The remaining 4,851 restricted stock units will vest in October 2022. (2) 6,832 of the restricted stock units were vested as of December 2021. 6,834 restricted stock units will vest in October 2022 and 6,834 will vest in October 2023.
Summary of restricted stock unit awards activity	​ ​ ​ ​ ​ ​ ​ ​ ​ Number ​ Weighted ​ ​ of ​ Average ​ Shares Fair Value Nonvested restricted stock units at September 2021 35,220 ​ $ 148.98 Granted — ​ ​ — Vested (16,701) ​ ​ 139.32 Expired — ​ ​ — Nonvested restricted stock units at December 2021 18,519 ​ $ 199.51
Schedule of restricted stock awards	​ ​ ​ ​ ​ ​ Restricted Stock Awards(1) Date of award: ​ October 2021 Original number of awards issued: ​ 15,100 Service period: ​ 36 months Estimated fair value of award at grant date: ​ $ 2,088,934 Non-vested awards outstanding at December 31, 2021: ​ ​ 15,100 Fair value of non-vested awards at December 31, 2021 of approximately: ​ $ 3,013,000 (1) The 15,100 restricted stock awards will vest in equal amounts in October 2022, October 2023 and October 2024.
Summary of restricted stock awards activity	​ ​ ​ ​ ​ ​ ​ ​ ​ Number ​ Weighted ​ ​ of ​ Average ​ Shares Fair Value Nonvested restricted stock awards at September 2021 — ​ $ — Granted 15,100 ​ ​ 138.34 Vested — ​ ​ — Expired — ​ ​ — Nonvested restricted stock awards at December 2021 15,100 ​ $ 199.51

BUSINESS SEGMENTS (Tables)

BUSINESS SEGMENTS (Tables)	3 Months Ended
	Dec. 31, 2021
BUSINESS SEGMENTS
Schedule of segment information	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Wholesale ​ Retail ​ ​ ​ ​ ​ Segment Segment Other Consolidated THREE MONTHS ENDED DECEMBER 2021 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ External revenues: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cigarettes ​ $ 279,366,392 ​ $ — ​ $ — ​ $ 279,366,392 Tobacco ​ ​ 69,068,234 ​ ​ — ​ ​ — ​ ​ 69,068,234 Confectionery ​ ​ 24,479,036 ​ ​ — ​ ​ — ​ ​ 24,479,036 Health food ​ ​ — ​ ​ 11,925,205 ​ ​ — ​ ​ 11,925,205 Foodservice & other ​ ​ 37,732,411 ​ ​ — ​ ​ — ​ ​ 37,732,411 Total external revenue ​ ​ 410,646,073 ​ ​ 11,925,205 ​ ​ — ​ ​ 422,571,278 Depreciation ​ ​ 486,765 ​ ​ 297,480 ​ ​ — ​ ​ 784,245 Operating income (loss) ​ ​ 7,438,666 ​ ​ 461,585 ​ ​ (4,142,573) ​ ​ 3,757,678 Interest expense ​ ​ 55,495 ​ ​ — ​ ​ 266,602 ​ ​ 322,097 Income (loss) from operations before taxes ​ ​ 7,391,732 ​ ​ 464,742 ​ ​ (4,380,784) ​ ​ 3,475,690 Equity method investment earnings, net of tax ​ ​ — ​ ​ — ​ ​ 770,365 ​ ​ 770,365 Total assets ​ ​ 153,998,433 ​ ​ 17,710,816 ​ ​ 13,939,522 ​ ​ 185,648,771 Capital expenditures ​ ​ 176,981 ​ ​ 44,445 ​ ​ — ​ ​ 221,426 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Wholesale ​ Retail ​ ​ ​ ​ ​ Segment Segment Other Consolidated THREE MONTHS ENDED DECEMBER 2020 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ External revenue: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION (Details)	1 Months Ended	3 Months Ended
	Dec. 31, 2021ft²item	Dec. 31, 2021ft²itemstatesegment
Number of business segments | segment		2
Wholesale Segment
Number of states served | state		26
Number of retail outlets served		4,100
Number of products sold or distributed		17,700
Rank assigned by Convenience Store News	6
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	20	20
Number of products sold or distributed		35,000
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	7	7
Retail Segment | Midwest | Akin's
Number of operating health food retail stores	6	6

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Millions	Dec. 31, 2021	Sep. 30, 2021
INVENTORIES
Total reserves on finished goods	$ 0.9	$ 0.8

GOODWILL AND OTHER INTANGIBLE_3

GOODWILL AND OTHER INTANGIBLE ASSETS - Goodwill (Details) - USD ($)	Dec. 31, 2021	Sep. 30, 2021
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, 2021	Sep. 30, 2021
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, 2021	Dec. 31, 2020	Sep. 30, 2021
EQUITY METHOD INVESTMENT
Carrying value of investment		$ 10,406,708		$ 9,380,343
Equity method investment earnings, net of tax		$ 770,365	$ 335,339
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)		49.00%
Carrying value of investment		$ 10,400,000
Equity method investment earnings, net of tax		800,000	$ 300,000
Carrying value of secured loan		3,300,000		3,500,000
Current balance of secured loan repaid		$ 200,000
Prepaid expenses and other current assets | Team Sledd
EQUITY METHOD INVESTMENT
Secured loan balance, current				$ 200,000

EQUITY METHOD INVESTMENT - Equi

EQUITY METHOD INVESTMENT - Equity investee's summarized financial data (Details) - USD ($)	3 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
EQUITY METHOD INVESTMENT
Total external revenue	$ 422,571,278	$ 404,744,774
Gross profit	26,932,663	23,461,979
Net income before income taxes	3,475,690	3,753,271
Net income attributable to AMCON, net of tax	770,365	335,339
Team Sledd | Equity method investment
EQUITY METHOD INVESTMENT
Total external revenue	181,417,094	164,568,084
Gross profit	9,817,979	7,847,390
Net income before income taxes	2,074,836	1,003,793
Net income attributable to AMCON, net of tax	$ 770,365	$ 335,339

DIVIDENDS (Details)

DIVIDENDS (Details) - USD ($)	3 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Dividends declared and paid per common share (in USD per share)	$ 5.18	$ 0.18
Dividend paid on common stock	$ 3,114,775	$ 105,599
Cash dividend
Dividends declared and paid per common share (in USD per share)	$ 0.18	$ 0.18
Dividend paid on common stock	$ 100,000	$ 100,000
Special dividend
Dividends declared and paid per common share (in USD per share)	$ 5
Dividend paid on common stock	$ 3,000,000
Dividend declared (in USD per share)		$ 5
Dividend declared		$ 2,900,000

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($)	3 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
EARNINGS PER SHARE
Weighted average number of common shares outstanding, Basic	563,546	548,125
Weighted average of net additional shares outstanding assuming dilutive options exercised and proceeds used to purchase treasury stock (1)	15,418	3,934
Weighted average number of shares outstanding, Diluted	578,964	552,059
Net income available to common shareholders	$ 3,001,055	$ 3,077,610
Net income available to common shareholders, diluted	$ 3,001,055	$ 3,077,610
Net earnings per share available to common shareholders, Basic (in dollars per share)	$ 5.33	$ 5.61
Net earnings per share available to common shareholders, Diluted (in dollars per share)	$ 5.18	$ 5.57

DEBT - Credit Facility (Details

DEBT - Credit Facility (Details) - Credit Facility $ in Millions	3 Months Ended
	Dec. 31, 2021USD ($)
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	$ 5
Current credit limit of the Facility	109.5
Outstanding borrowings under the Facility	48.4
Credit available under the Facility	$ 61.1
Average interest rate	1.40%
Peak borrowings under the Facility	$ 64.3
Average borrowings under the Facility	43.9
Average availability under the Facility	$ 55.4
LIBOR
Revolving credit facility
Variable rate basis	LIBOR
Minimum basis points added to reference rate (as a percent)	0.00%
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 - Cross Default and Co-Ter

DEBT - Cross Default and Co-Terminus Provisions and Other (Details) $ in Millions	3 Months Ended
	Dec. 31, 2021USD ($)item
DEBT
Number of cross defaults | item	0
Letter of credit issued for worker's compensation insurance carrier as part of the entity's self-insured loss control program | $	$ 0.6

EQUITY-BASED INCENTIVE AWARDS -

EQUITY-BASED INCENTIVE AWARDS - Omnibus Plans and Stock Options (Details)	3 Months Ended
	Dec. 31, 2021item$ / sharesshares
Omnibus Plans
EQUITY-BASED INCENTIVE AWARD
Number of incentive plans | item	2
Number of shares of the company's common stock permitted for issuance under the plan	135,000
Number of shares awarded pursuant to the plan	123,970
Number of additional shares that may be awarded under the plan	11,030
Stock Options
Number of Shares
Outstanding at the beginning of the period (in shares)	22,250
Exercised (in shares)	(7,700)
Outstanding at the end of the period (in shares)	14,550
Weighted Average Exercise Price
Outstanding at beginning of the period (in dollars per share) | $ / shares	$ 86.76
Exercised (in dollars per share) | $ / shares	86.57
Outstanding at the end of the period (in dollars per share) | $ / shares	$ 86.86

EQUITY-BASED INCENTIVE AWARDS_2

EQUITY-BASED INCENTIVE AWARDS - Authorized and Approved Restricted Stock Units/Restricted Stock Awards (Details) - USD ($)	3 Months Ended
	Dec. 31, 2021	Sep. 30, 2021
Restricted Stock Units
EQUITY-BASED INCENTIVE AWARD
Non-vested awards outstanding at the end of the period (in shares)	18,519	35,220
Direct cost to the recipients of the restricted stock units	$ 0
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)	4,851
Fair value of non-vested awards at the end of the period	$ 968,000
Vested as of the end of the period (in shares)	9,699
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)	13,668
Fair value of non-vested awards at the end of the period	$ 2,727,000
Vested as of the end of the period (in shares)	6,832
Restricted Stock Units Awarded October 2020 | Vest in October 2022
EQUITY-BASED INCENTIVE AWARD
Units scheduled to vest	6,834
Restricted Stock Units Awarded October 2020 | Vest in October 2023
EQUITY-BASED INCENTIVE AWARD
Units scheduled to vest	6,834
Restricted Stock Awards
EQUITY-BASED INCENTIVE AWARD
Original number of awards issued	15,100
Service period	36 months
Estimated fair value of award at grant date	$ 2,088,934
Non-vested awards outstanding at the end of the period (in shares)	15,100
Fair value of non-vested awards at the end of the period	$ 3,013,000
Units scheduled to vest	15,100
Direct cost to the recipients of the restricted stock units	$ 0

EQUITY-BASED INCENTIVE AWARDS_3

EQUITY-BASED INCENTIVE AWARDS - Restricted Stock Units/Restricted Stock Awards Activity (Details)	3 Months Ended
	Dec. 31, 2021$ / sharesshares
Restricted Stock Units
Number of Shares
Nonvested restricted stock units/awards at the beginning of the period (in shares) | shares	35,220
Vested (in shares) | shares	(16,701)
Nonvested restricted stock units/awards at the end of the period (in shares) | shares	18,519
Weighted Average Fair Value
Nonvested restricted stock units/awards at the beginning of the period (in dollars per share) | $ / shares	$ 148.98
Vested (in dollars per share) | $ / shares	139.32
Nonvested restricted stock units/awards at the end of the period (in dollars per share) | $ / shares	$ 199.51
Restricted Stock Awards
Number of Shares
Granted (in shares) | shares	15,100
Nonvested restricted stock units/awards at the end of the period (in shares) | shares	15,100
Weighted Average Fair Value
Granted (in dollars per share) | $ / shares	$ 138.34
Nonvested restricted stock units/awards at the end of the period (in dollars per share) | $ / shares	$ 199.51

EQUITY-BASED INCENTIVE AWARDS_4

EQUITY-BASED INCENTIVE AWARDS - All Equity-Based Awards (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Sep. 30, 2021
EQUITY-BASED INCENTIVE AWARDS
Compensation expense	$ 0.7	$ 0.3
Total unamortized compensation expense	$ 5		$ 2.9

BUSINESS SEGMENTS (Details)

BUSINESS SEGMENTS (Details)	3 Months Ended
	Dec. 31, 2021USD ($)segment	Dec. 31, 2020USD ($)	Sep. 30, 2021USD ($)
Information by business segments
Number of reportable business segments | segment	2
Total external revenue	$ 422,571,278	$ 404,744,774
Depreciation	784,245	774,285
Operating income (loss)	3,757,678	4,087,878
Interest expense	322,097	376,430
Income (loss) from operations before taxes	3,475,690	3,753,271
Equity method investment earnings, net of tax	770,365	335,339
Total assets	185,648,771	157,746,118	$ 188,411,129
Capital expenditures	221,426	448,512
Cigarettes
Information by business segments
Total external revenue	279,366,392	276,589,707
Tobacco
Information by business segments
Total external revenue	69,068,234	64,845,544
Confectionery
Information by business segments
Total external revenue	24,479,036	20,164,577
Health food
Information by business segments
Total external revenue	11,925,205	11,147,098
Foodservice & other
Information by business segments
Total external revenue	37,732,411	31,997,848
Other
Information by business segments
Operating income (loss)	(4,142,573)	(1,585,374)
Interest expense	266,602	346,894
Income (loss) from operations before taxes	(4,380,784)	(1,903,830)
Equity method investment earnings, net of tax	770,365	335,339
Total assets	13,939,522	10,930,821
Wholesale Segment
Information by business segments
Total external revenue	410,646,073	393,597,676
Depreciation	486,765	472,693
Operating income (loss)	7,438,666	5,788,239
Interest expense	55,495	29,536
Income (loss) from operations before taxes	7,391,732	5,769,260
Total assets	153,998,433	128,232,076
Capital expenditures	176,981	406,440
Wholesale Segment | Cigarettes
Information by business segments
Total external revenue	279,366,392	276,589,707
Wholesale Segment | Tobacco
Information by business segments
Total external revenue	69,068,234	64,845,544
Wholesale Segment | Confectionery
Information by business segments
Total external revenue	24,479,036	20,164,577
Wholesale Segment | Foodservice & other
Information by business segments
Total external revenue	37,732,411	31,997,848
Retail Segment
Information by business segments
Total external revenue	11,925,205	11,147,098
Depreciation	297,480	301,592
Operating income (loss)	461,585	(114,987)
Income (loss) from operations before taxes	464,742	(112,159)
Total assets	17,710,816	18,583,221
Capital expenditures	44,445	42,072
Retail Segment | Health food
Information by business segments
Total external revenue	$ 11,925,205	$ 11,147,098

COMMON STOCK REPURCHASES (Detai

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