BUSINESS SEGMENTS

9 Months Ended

Jun. 30, 2022

BUSINESS SEGMENTS

BUSINESS SEGMENTS

10. BUSINESS SEGMENTS

The Company has two reportable business segments: the wholesale distribution of consumer products which includes Team Sledd, and the retail sale of health and natural food products. 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) before taxes.

	Wholesale		Retail
	Segment		Segment		Other		Consolidated
THREE MONTHS ENDED JUNE 2022
External revenue:
Cigarettes	$	364,771,496	$	—	$	—	$	364,771,496
Tobacco		93,957,495		—		—		93,957,495
Confectionery		32,541,090		—		—		32,541,090
Health food		—		11,350,797		—		11,350,797
Foodservice & other		47,963,274		—		—		47,963,274
Total external revenue		539,233,355		11,350,797		—		550,584,152
Depreciation		602,770		281,376		—		884,146
Amortization		28,355		—		—		28,355
Operating income (loss)		9,432,660		241,225		(2,772,099)		6,901,786
Interest expense		320,103		—		335,708		655,811
Income (loss) from operations before taxes		9,094,511		256,392		(687,676)		8,663,227
Equity method investment earnings, net of tax		—		—		307,973		307,973
Total assets		278,824,259		18,656,853		814,291		298,295,403
Capital expenditures		12,074,922		985,835		—		13,060,757

	Wholesale		Retail
	Segment		Segment		Other		Consolidated
THREE MONTHS ENDED JUNE 2021
External revenue:
Cigarettes	$	294,690,427	$	—	$	—	$	294,690,427
Tobacco		68,525,147		—		—		68,525,147
Confectionery		25,703,325		—		—		25,703,325
Health food		—		11,745,769		—		11,745,769
Foodservice & other		37,648,362		—		—		37,648,362
Total external revenue		426,567,261		11,745,769		—		438,313,030
Depreciation		445,831		295,349		—		741,180
Operating income (loss)		6,349,783		621,421		(2,671,795)		4,299,409
Interest expense		56,924		—		273,005		329,929
Income (loss) from operations before taxes		6,304,328		624,447		(2,915,858)		4,012,917
Equity method investment earnings, net of tax		—		—		754,293		754,293
Total assets		159,766,283		17,140,050		11,874,597		188,780,930
Capital expenditures		384,429		133,732		—		518,161

	Wholesale		Retail
	Segment		Segment		Other		Consolidated
NINE MONTHS ENDED JUNE 2022
External revenue:
Cigarettes	$	900,677,466	$	—	$	—	$	900,677,466
Tobacco		229,765,009		—		—		229,765,009
Confectionery		79,691,881		—		—		79,691,881
Health food		—		35,695,298		—		35,695,298
Foodservice & other		119,213,967		—		—		119,213,967
Total external revenue		1,329,348,323		35,695,298		—		1,365,043,621
Depreciation		1,589,102		897,511		—		2,486,613
Amortization		28,355		—		—		28,355
Operating income (loss)		23,174,638		1,448,878		(10,020,703)		14,602,813
Interest expense		428,665		—		794,164		1,222,829
Income (loss) from operations before taxes		22,767,606		1,469,705		(8,339,007)		15,898,304
Equity method investment earnings, net of tax		—		—		1,670,133		1,670,133
Total assets		278,824,259		18,656,853		814,291		298,295,403
Capital expenditures		12,718,606		1,217,373		—		13,935,979

	Wholesale		Retail
	Segment		Segment		Other		Consolidated
NINE MONTHS ENDED JUNE 2021
External revenue:
Cigarettes	$	826,838,177	$	—	$	—	$	826,838,177
Tobacco		194,802,459		—		—		194,802,459
Confectionery		65,769,418		—		—		65,769,418
Health food		—		35,199,199		—		35,199,199
Foodservice & other		98,962,041		—		—		98,962,041
Total external revenue		1,186,372,095		35,199,199		—		1,221,571,294
Depreciation		1,405,528		889,862		—		2,295,390
Operating income (loss)		16,569,154		1,167,737		(6,178,910)		11,557,981
Interest expense		144,569		—		872,333		1,016,902
Income (loss) from operations before taxes		16,499,529		1,176,481		(6,965,406)		10,710,604
Equity method investment earnings, net of tax		—		—		1,403,124		1,403,124
Total assets		159,766,283		17,140,050		11,874,597		188,780,930
Capital expenditures		977,860		277,098		—		1,254,958