BUSINESS SEGMENTS

9 Months Ended

Jun. 30, 2016

BUSINESS SEGMENTS

BUSINESS SEGMENTS

7. 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 2016
External revenues:
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		4,879,836		(109,304)		(1,455,352)		3,315,180
Interest expense		28,666		—		160,132		188,798
Income 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
THREE MONTHS ENDED JUNE 2015
External revenue:
Cigarettes	$	239,917,539	$	—	$	—	$	239,917,539
Tobacco		38,406,568		—		—		38,406,568
Confectionery		22,520,687		—		—		22,520,687
Health food		—		7,744,518		—		7,744,518
Foodservice & other		25,867,197		—		—		25,867,197
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		5,053,788		51,812		(1,554,963)		3,550,637
Interest expense		32,269		49,231		160,766		242,266
Income 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

	Wholesale		Retail
	Segment		Segment		Other		Consolidated
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		11,802,629		429,366		(4,172,795)		8,059,200
Interest expense		88,066		—		474,588		562,654
Income 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
NINE MONTHS ENDED  JUNE 2015
External revenue:
Cigarettes	$	671,006,822	$	—	$	—	$	671,006,822
Tobacco		110,276,853		—		—		110,276,853
Confectionery		60,589,226		—		—		60,589,226
Health food		—		23,750,098		—		23,750,098
Foodservice & other		71,710,850		—		—		71,710,850
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		11,629,871		633,735		(4,287,143)		7,976,463
Interest expense		98,400		145,616		429,767		673,783
Income 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