BUSINESS SEGMENTS

9 Months Ended

Jun. 30, 2015

BUSINESS SEGMENTS

BUSINESS SEGMENTS

9. 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.

	Wholesale Segment		Retail Segment		Other			Consolidated
THREE MONTHS ENDED JUNE 2015:
External revenue:
Cigarettes	$	239,917,539	$	—	$	—		$	239,917,539
Confectionery	22,520,687		—		—			22,520,687
Health food	—		7,744,518		—			7,744,518
Tobacco, foodservice & other	64,273,765		—		—			64,273,765
Total external revenue	326,711,991		7,744,518		—			334,456,509
Depreciation	341,432		109,625		—			451,057
Amortization	91,250		—		—			91,250
Operating income (loss)	5,053,788		51,812		(1,554,963		)	3,550,637
Interest expense	32,269		49,231		160,766			242,266
Income (loss) from operations before taxes	5,037,641		7,312		(1,715,729		)	3,329,224
Total assets	99,443,589		13,292,026		200,634			112,936,249
Capital expenditures	187,605		13,913		—			201,518
THREE MONTHS ENDED JUNE 2014:
External revenue:
Cigarettes	$	231,814,363	$	—	$	—		$	231,814,363
Confectionery	21,214,377		—		—			21,214,377
Health food	—		8,509,813		—			8,509,813
Tobacco, foodservice & other	61,109,071		—		—			61,109,071
Total external revenue	314,137,811		8,509,813		—			322,647,624
Depreciation	340,287		125,262		937			466,486
Amortization	91,250		—		—			91,250
Operating income (loss)	3,657,657		138,969		(1,354,840		)	2,441,786
Interest expense	36,657		51,284		140,886			228,827
Income (loss) from operations before taxes	3,627,311		93,097		(1,469,976		)	2,250,432
Total assets	98,799,569		13,602,639		280,846			112,683,054
Capital expenditures	949,732		25,062		—			974,794

	Wholesale Segment		Retail Segment		Other			Consolidated
NINE MONTHS ENDED JUNE 2015:
External revenue:
Cigarettes	$	671,006,822	$	—	$	—		$	671,006,822
Confectionery	60,589,226		—		—			60,589,226
Health food	—		23,750,098		—			23,750,098
Tobacco, foodservice & other	181,987,703		—		—			181,987,703
Total external revenue	913,583,751		23,750,098		—			937,333,849
Depreciation	1,088,027		345,818		1,874			1,435,719
Amortization	273,750		—		—			273,750
Operating income (loss)	11,629,871		633,735		(4,287,143		)	7,976,463
Interest expense	98,400		145,616		429,767			673,783
Income (loss) from operations before taxes	11,581,352		502,145		(4,716,910		)	7,366,587
Total assets	99,443,589		13,292,026		200,634			112,936,249
Capital expenditures	692,394		120,230		—			812,624
NINE MONTHS ENDED JUNE 2014:
External revenue:
Cigarettes	$	647,770,840	$	—	$	—		$	647,770,840
Confectionery	55,921,920		—		—			55,921,920
Health food	—		26,221,759		—			26,221,759
Tobacco, foodservice & other	170,780,450		—		—			170,780,450
Total external revenue	874,473,210		26,221,759		—			900,694,969
Depreciation	1,154,830		379,218		2,812			1,536,860
Amortization	273,750		—		—			273,750
Operating income (loss)	9,548,781		681,990		(4,085,271		)	6,145,500
Interest expense	119,310		168,062		466,074			753,446
Income (loss) from operations before taxes	9,463,125		528,267		(4,492,679		)	5,498,713
Total assets	98,799,569		13,602,639		280,846			112,683,054
Capital expenditures	2,242,733		94,893		—			2,337,626