BUSINESS SEGMENTS

6 Months Ended

Mar. 31, 2018

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 (loss), and income before taxes.

	Wholesale		Retail
	Segment		Segment		Other		Consolidated
THREE MONTHS ENDED MARCH 2018
External revenues:
Cigarettes	$	208,188,686	$	—	$	—	$	208,188,686
Tobacco		39,536,595		—		—		39,536,595
Confectionery		17,257,066		—		—		17,257,066
Health food		—		6,813,088		—		6,813,088
Foodservice & other		23,411,851		—		—		23,411,851
Total external revenue		288,394,198		6,813,088		—		295,207,286
Depreciation		324,142		198,136		—		522,278
Amortization		15,625		—		—		15,625
Operating income (loss)		2,531,394		(193,545)		(1,428,996)		908,853
Interest expense		22,814		—		290,550		313,364
Income (loss) from operations before taxes		2,530,624		(190,879)		(1,716,846)		622,899
Total assets		118,169,883		14,358,012		120,862		132,648,757
Capital expenditures		613,476		461,973		—		1,075,449
THREE MONTHS ENDED MARCH 2017
External revenue:
Cigarettes	$	209,646,918	$	—	$	—	$	209,646,918
Tobacco		37,371,108		—		—		37,371,108
Confectionery		17,980,905		—		—		17,980,905
Health food		—		6,718,058		—		6,718,058
Foodservice & other		22,330,881		—		—		22,330,881
Total external revenue		287,329,812		6,718,058		—		294,047,870
Depreciation		346,264		117,456		—		463,720
Amortization		66,249		—		—		66,249
Operating income (loss)		2,737,099		(209,189)		(1,404,481)		1,123,429
Interest expense		25,428		—		122,482		147,910
Income (loss) from operations before taxes		2,722,619		(205,173)		(1,526,963)		990,483
Total assets		91,608,744		13,989,794		80,638		105,679,176
Capital expenditures		153,469		283,648		—		437,117

	Wholesale		Retail
	Segment		Segment		Other		Consolidated
SIX MONTHS ENDED  MARCH 2018
External revenue:
Cigarettes	$	431,454,264	$	—	$	—	$	431,454,264
Tobacco		81,178,273		—		—		81,178,273
Confectionery		35,773,384		—		—		35,773,384
Health food		—		13,102,985		—		13,102,985
Foodservice & other		49,211,589		—		—		49,211,589
Total external revenue		597,617,510		13,102,985		—		610,720,495
Depreciation		634,627		386,156		—		1,020,783
Amortization		48,125		—		—		48,125
Operating income (loss)		5,720,377		(666,526)		(2,837,849)		2,216,002
Interest expense		46,522		—		469,033		515,555
Income (loss) from operations before taxes		5,698,556		(661,384)		(3,304,182)		1,732,990
Total assets		118,169,883		14,358,012		120,862		132,648,757
Capital expenditures		668,122		698,645		—		1,366,767
SIX MONTHS ENDED  MARCH 2017
External revenue:
Cigarettes	$	431,415,941	$	—	$	—	$	431,415,941
Tobacco		76,056,934		—		—		76,056,934
Confectionery		36,581,352		—		—		36,581,352
Health food		—		12,957,362		—		12,957,362
Foodservice & other		47,140,510		—		—		47,140,510
Total external revenue		591,194,737		12,957,362		—		604,152,099
Depreciation		688,938		234,965		—		923,903
Amortization		132,499		—		—		132,499
Operating income (loss)		6,705,891		(507,675)		(2,983,553)		3,214,663
Interest expense		51,821		—		313,632		365,453
Income (loss) from operations before taxes		6,666,521		(499,388)		(3,297,186)		2,869,947
Total assets		91,608,744		13,989,794		80,638		105,679,176
Capital expenditures		320,244		517,651		—		837,895