BUSINESS SEGMENTS

9 Months Ended

Jun. 30, 2017

BUSINESS SEGMENTS

BUSINESS SEGMENTS

8. 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 by our holding company.  The segments are evaluated on revenues, gross margins, operating income, and income before taxes.

	Wholesale		Retail
	Segment		Segment		Other		Consolidated
THREE MONTHS ENDED JUNE 2017
External revenues:
Cigarettes	$	236,433,449	$	—	$	—	$	236,433,449
Tobacco		41,478,941		—		—		41,478,941
Confectionery		22,024,887		—		—		22,024,887
Health food		—		6,376,725		—		6,376,725
Foodservice & other		26,528,198		—		—		26,528,198
Total external revenue		326,465,475		6,376,725		—		332,842,200
Depreciation		292,294		116,345		—		408,639
Amortization		66,251		—		—		66,251
Operating income (loss)		3,096,128		(615,276)		(1,519,050)		961,802
Interest expense		25,279		—		154,987		180,266
Income (loss) from operations before taxes		3,082,982		(610,896)		(1,674,037)		798,049
Total assets		98,406,083		14,135,564		167,671		112,709,318
Capital expenditures		109,648		813,888		—		923,536
THREE MONTHS ENDED JUNE 2016
External revenue:
Cigarettes	$	239,244,630	$	—	$	—	$	239,244,630
Tobacco		39,495,721		—		—		39,495,721
Confectionery		21,946,660		—		—		21,946,660
Health food		—		6,541,789		—		6,541,789
Foodservice & other		26,169,923		—		—		26,169,923
Total external revenue		326,856,934		6,541,789		—		333,398,723
Depreciation		322,568		107,058		—		429,626
Amortization		82,917		—		—		82,917
Operating income (loss)		4,879,836		(109,304)		(1,455,352)		3,315,180
Interest expense		28,666		—		160,132		188,798
Income (loss) from operations before taxes		4,881,860		(104,442)		(1,615,484)		3,161,934
Total assets		102,432,357		12,097,050		167,945		114,697,352
Capital expenditures		123,260		198,326		—		321,586

	Wholesale		Retail
	Segment		Segment		Other		Consolidated
NINE MONTHS ENDED  JUNE 2017
External revenue:
Cigarettes	$	667,849,390	$	—	$	—	$	667,849,390
Tobacco		117,535,875		—		—		117,535,875
Confectionery		58,606,239		—		—		58,606,239
Health food		—		19,334,087		—		19,334,087
Foodservice & other		73,668,708		—		—		73,668,708
Total external revenue		917,660,212		19,334,087		—		936,994,299
Depreciation		981,232		351,310		—		1,332,542
Amortization		198,750		—		—		198,750
Operating income (loss)		9,802,019		(1,122,951)		(4,502,603)		4,176,465
Interest expense		77,100		—		468,619		545,719
Income (loss) from operations before taxes		9,749,503		(1,110,284)		(4,971,223)		3,667,996
Total assets		98,406,083		14,135,564		167,671		112,709,318
Capital expenditures		429,892		1,331,539		—		1,761,431
NINE MONTHS ENDED  JUNE 2016
External revenue:
Cigarettes	$	682,836,920	$	—	$	—	$	682,836,920
Tobacco		112,880,466		—		—		112,880,466
Confectionery		60,838,182		—		—		60,838,182
Health food		—		21,353,621		—		21,353,621
Foodservice & other		73,946,909		—		—		73,946,909
Total external revenue		930,502,477		21,353,621		—		951,856,098
Depreciation		1,048,665		341,091		—		1,389,756
Amortization		265,417		—		—		265,417
Operating income (loss)		11,802,629		429,366		(4,172,795)		8,059,200
Interest expense		88,066		—		474,588		562,654
Income (loss) from operations before taxes		11,799,231		443,333		(4,647,384)		7,595,180
Total assets		102,432,357		12,097,050		167,945		114,697,352
Capital expenditures		705,137		308,851		—		1,013,988