BUSINESS SEGMENTS

12 Months Ended

Sep. 30, 2023

BUSINESS SEGMENTS

BUSINESS SEGMENTS

13. BUSINESS SEGMENTS:

The Company has two reportable business segments: the wholesale distribution of consumer products which includes Team Sledd and Henry’s (the Wholesale Segment), and the retail sale of health and natural food products (the Retail Segment). The aggregation of the Company’s business operations into these business segments was based on a range of considerations including but not limited to the characteristics of each business, similarities in the nature and type of products sold, customer classes, methods used to sell the products and economic profiles. Included in the “Other” column are intercompany eliminations, equity method investment earnings, net of tax and assets held and charges incurred and income earned by our holding company. The segments are evaluated on revenues, gross margins, operating income (loss), and income (loss) from operations before taxes. Certain amounts in prior year periods have been reclassified to conform with the current presentation.

	Wholesale		Retail
	Segment		Segment		Other		Consolidated
FISCAL YEAR ENDED 2023:
External revenue:
Cigarettes	$	1,586,303,595	$	—	$	—	$	1,586,303,595
Tobacco		462,509,541		—		—		462,509,541
Confectionery		162,614,409		—		—		162,614,409
Health food		—		43,119,285		—		43,119,285
Foodservice & other		285,448,169		—		—		285,448,169
Total external revenue		2,496,875,714		43,119,285		—		2,539,994,999
Depreciation		5,856,980		1,304,488		—		7,161,468
Amortization		415,178		—		—		415,178
Operating income (loss)		39,701,536		(720,104)		(13,014,849)		25,966,583
Interest expense		—		—		8,550,431		8,550,431
Income (loss) from operations before taxes		38,653,470		214,203		(21,565,280)		17,302,393
Total assets		345,459,274		16,985,699		984,227		363,429,200
Capital expenditures		11,413,999		1,071,226		—		12,485,225

	Wholesale		Retail
	Segment		Segment		Other		Consolidated
FISCAL YEAR ENDED 2022:
External revenue:
Cigarettes	$	1,328,196,494	$	—	$	—	$	1,328,196,494
Tobacco		342,997,425		—		—		342,997,425
Confectionery		117,227,090		—		—		117,227,090
Health food		—		46,206,417		—		46,206,417
Foodservice & other		176,170,959		—		—		176,170,959
Total external revenue		1,964,591,968		46,206,417		—		2,010,798,385
Depreciation		2,366,108		1,206,845		—		3,572,953
Amortization		70,887		—		—		70,887
Operating income (loss)		35,597,978		526,509		(13,523,120)		22,601,367
Interest expense		—		—		2,249,552		2,249,552
Income (loss) from operations before taxes		34,225,516		569,797		(13,319,809)		21,475,504
Equity method investment earnings, net of tax		—		—		1,670,133		1,670,133
Total assets		271,202,838		17,208,581		713,108		289,124,527
Capital expenditures		13,327,713		1,327,493		—		14,655,206