BUSINESS SEGMENTS

9 Months Ended

Jun. 30, 2011

BUSINESS SEGMENTS

BUSINESS SEGMENTS

10. BUSINESS SEGMENTS

AMCON has two reportable business segments: the wholesale distribution of consumer products and the retail sale of health and natural food products. The retail health food stores’ operations are aggregated to comprise the Retail Segment because such operations have similar economic characteristics, as well as similar characteristics with respect to the nature of products sold, the type and class of customers for the health food products and the methods used to sell the products. Included in the “Other” column are intercompany eliminations, and assets held and charges incurred by our holding company. The segments are evaluated on revenues, gross margins, operating income (loss), and income before taxes.

	WholesaleSegment		RetailSegment		Other			Consolidated
THREE MONTHS ENDED JUNE 2011:
External revenue:
Cigarettes	$	190,156,165	$	—	$	—		$	190,156,165
Confectionery	18,125,809		—		—			18,125,809
Health food	—		9,509,251		—			9,509,251
Tobacco, food service & other	46,036,974		—		—			46,036,974
Total external revenue	254,318,948		9,509,251		—			263,828,199
Depreciation	316,032		106,308		937			423,277
Amortization	95,822		—		—			95,822
Operating income (loss)	4,092,131		803,020		(977,753		)	3,917,398
Interest expense	117,643		93,381		161,501			372,525
Income (loss) from continuing operations before taxes	3,997,180		715,497		(1,093,926		)	3,618,751
Total assets	116,520,925		13,285,407		1,014,111			130,820,443
Capital expenditures	624,284		59,497		—			683,781
THREE MONTHS ENDED JUNE 2010:
External revenue:
Cigarettes	$	192,819,138	$	—	$	—		$	192,819,138
Confectionery	18,276,797		—		—			18,276,797
Health food	—		9,220,081		—			9,220,081
Tobacco, food service & other	46,746,424		—		—			46,746,424
Total external revenue	257,842,359		9,220,081		—			267,062,440
Depreciation	270,627		92,763		936			364,326
Amortization	76,140		—		—			76,140
Operating income (loss)	4,820,946		911,760		(1,113,891		)	4,618,815
Interest expense	119,356		111,322		140,195			370,873
Income (loss) from continuing operations before taxes	4,708,303		811,190		(1,238,793		)	4,280,700
Total assets	88,755,030		12,238,486		1,019,791			102,013,307
Capital expenditures	136,591		184,392		—			320,983

	WholesaleSegment		Retail Segment		Other			Consolidated
NINE MONTHS ENDED JUNE 2011:
External revenue:
Cigarettes	$	520,018,745	$	—	$	—		$	520,018,745
Confectionery	48,253,405		—		—			48,253,405
Health food	—		28,509,834		—			28,509,834
Tobacco, food service & other	128,606,415		—		—			128,606,415
Total external revenue	696,878,565		28,509,834		—			725,388,399
Depreciation	944,662		320,923		2,812			1,268,397
Amortization	255,418		—		—			255,418
Operating income (loss)	12,182,183		2,712,105		(4,601,785		)	10,292,503
Interest expense	343,807		293,369		383,804			1,020,980
Income (loss) from continuing operations before taxes	11,880,020		2,435,886		(4,902,413		)	9,413,493
Total assets	116,520,925		13,285,407		1,014,111			130,820,443
Capital expenditures	1,474,382		166,653		—			1,641,035
NINE MONTHS ENDED JUNE 2010:
External revenue:
Cigarettes	$	537,317,934	$	—	$	—		$	537,317,934
Confectionery	48,472,133		—		—			48,472,133
Health food	—		27,639,474		—			27,639,474
Tobacco, food service & other	128,073,066		—		—			128,073,066
Total external revenue	713,863,133		27,639,474		—			741,502,607
Depreciation	808,338		231,618		3,230			1,043,186
Amortization	200,121		—		—			200,121
Operating income (loss)	12,354,842		2,922,249		(4,437,471		)	10,839,620
Interest expense	366,547		351,612		426,384			1,144,543
Income (loss) from continuing operations before taxes	12,010,720		2,601,688		(4,848,147		)	9,764,261
Total assets	88,755,030		12,238,486		1,019,791			102,013,307
Capital expenditures	740,175		683,737		—			1,423,912