BUSINESS SEGMENTS

6 Months Ended

Mar. 31, 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 MARCH 2017
External revenues:
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
THREE MONTHS ENDED MARCH 2016
External revenue:
Cigarettes	$	211,638,962	$	—	$	—	$	211,638,962
Tobacco		35,756,254		—		—		35,756,254
Confectionery		19,045,686		—		—		19,045,686
Health food		—		7,537,713		—		7,537,713
Foodservice & other		22,470,511		—		—		22,470,511
Total external revenue		288,911,413		7,537,713		—		296,449,126
Depreciation		367,530		116,901		—		484,431
Amortization		91,250		—		—		91,250
Operating income (loss)		3,073,641		474,545		(1,353,987)		2,194,199
Interest expense		29,368		—		132,034		161,402
Income (loss) from operations before taxes		3,075,629		479,017		(1,486,022)		2,068,624
Total assets		101,775,492		12,554,229		221,537		114,551,258
Capital expenditures		255,324		75,513		—		330,837

	Wholesale		Retail
	Segment		Segment		Other		Consolidated
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
SIX MONTHS ENDED  MARCH 2016
External revenue:
Cigarettes	$	443,592,290	$	—	$	—	$	443,592,290
Tobacco		73,384,745						73,384,745
Confectionery		38,891,522		—		—		38,891,522
Health food		—		14,811,831		—		14,811,831
Foodservice & other		47,776,987		—		—		47,776,987
Total external revenue		603,645,544		14,811,831		—		618,457,375
Depreciation		726,097		234,033		—		960,130
Amortization		182,500		—		—		182,500
Operating income (loss)		6,922,793		538,670		(2,717,443)		4,744,020
Interest expense		59,400		—		314,456		373,856
Income (loss) from operations before taxes		6,917,371		547,775		(3,031,900)		4,433,246
Total assets		101,775,492		12,554,229		221,537		114,551,258
Capital expenditures		581,877		110,525		—		692,402