BUSINESS SEGMENTS

6 Months Ended

Mar. 31, 2014

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 MARCH 2014:
External revenue:
Cigarettes	$	194,804,666	$	—	$	—		$	194,804,666
Confectionery	16,504,352		—		—			16,504,352
Health food	—		9,188,668		—			9,188,668
Tobacco, food service & other	51,924,102		—		—			51,924,102
Total external revenue	263,233,120		9,188,668		—			272,421,788
Depreciation	411,201		125,446		937			537,584
Amortization	91,250		—		—			91,250
Operating income (loss)	2,095,162		490,831		(1,407,039		)	1,178,954
Interest expense	38,856		56,002		127,766			222,624
Income (loss) from operations before taxes	2,076,291		438,798		(1,519,804		)	995,285
Total assets	94,011,377		13,534,327		318,709			107,864,413
Capital expenditures	374,459		2,695		—			377,154
THREE MONTHS ENDED MARCH 2013:
External revenue:
Cigarettes	$	197,704,322	$	—	$	—		$	197,704,322
Confectionery	16,847,270		—		—			16,847,270
Health food	—		9,868,050		—			9,868,050
Tobacco, food service & other	50,148,509		—		—			50,148,509
Total external revenue	264,700,101		9,868,050		—			274,568,151
Depreciation	413,307		94,291		937			508,535
Amortization	91,250		—		—			91,250
Operating income (loss)	2,530,591		1,067,812		(1,339,363		)	2,259,040
Interest expense	51,764		54,580		142,648			248,992
Income (loss) from operations before taxes	2,493,782		1,018,404		(1,387,292		)	2,124,894
Total assets	89,426,229		13,719,780		287,165			103,433,174
Capital expenditures	209,689		564,312		—			774,001

	Wholesale Segment		Retail Segment		Other			Consolidated
SIX MONTHS ENDED MARCH 2014:
External revenue:
Cigarettes	$	415,956,477	$	—	$	—		$	415,956,477
Confectionery	34,707,543		—		—			34,707,543
Health food	—		17,711,946		—			17,711,946
Tobacco, food service & other	109,671,379		—		—			109,671,379
Total external revenue	560,335,399		17,711,946		—			578,047,345
Depreciation	814,543		253,956		1,875			1,070,374
Amortization	182,500		—		—			182,500
Operating income (loss)	5,891,124		543,021		(2,730,431		)	3,703,714
Interest expense	82,653		116,778		325,188			524,619
Income (loss) from operations before taxes	5,835,814		435,170		(3,022,703		)	3,248,281
Total assets	94,011,377		13,534,327		318,709			107,864,413
Capital expenditures	1,293,001		69,831		—			1,362,832
SIX MONTHS ENDED MARCH 2013:
External revenue:
Cigarettes	$	419,434,504	$	—	$	—		$	419,434,504
Confectionery	34,803,342		—		—			34,803,342
Health food	—		18,572,693		—			18,572,693
Tobacco, food service & other	103,975,933		—		—			103,975,933
Total external revenue	558,213,779		18,572,693		—			576,786,472
Depreciation	822,050		187,223		1,874			1,011,147
Amortization	182,500		—		—			182,500
Operating income (loss)	6,333,328		1,439,610		(2,726,443		)	5,046,495
Interest expense	106,896		113,548		344,600			565,044
Income (loss) from operations before taxes	6,247,239		1,336,174		(2,925,767		)	4,657,646
Total assets	89,426,229		13,719,780		287,165			103,433,174
Capital expenditures	503,339		600,890		—			1,104,229