BUSINESS SEGMENTS

3 Months Ended

Dec. 31, 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) from operations before taxes.

	Wholesale		Retail
	Segment		Segment		Other		Consolidated
THREE MONTHS ENDED DECEMBER 2022
External revenue:
Cigarettes	$	367,689,677	$	—	$	—	$	367,689,677
Tobacco		104,039,120		—		—		104,039,120
Confectionery		32,558,996		—		—		32,558,996
Health food		—		10,261,873		—		10,261,873
Foodservice & other		51,439,841		—		—		51,439,841
Total external revenue		555,727,634		10,261,873		—		565,989,507
Depreciation		750,130		278,223		—		1,028,353
Amortization		42,533		—		—		42,533
Operating income (loss)		8,240,495		(266,616)		(2,454,368)		5,519,511
Interest expense		886,148		—		808,010		1,694,158
Income (loss) from operations before taxes		7,327,399		(242,500)		(3,151,098)		3,933,801
Total assets		313,505,013		16,681,645		687,291		330,873,949
Capital expenditures		1,248,067		143,865		—		1,391,932

	Wholesale		Retail
	Segment		Segment		Other		Consolidated
THREE MONTHS ENDED DECEMBER 2021
External revenue:
Cigarettes	$	279,366,392	$	—	$	—	$	279,366,392
Tobacco		69,068,234		—		—		69,068,234
Confectionery		24,479,036		—		—		24,479,036
Health food		—		11,925,205		—		11,925,205
Foodservice & other		37,732,411		—		—		37,732,411
Total external revenue		410,646,073		11,925,205		—		422,571,278
Depreciation		486,765		297,480		—		784,245
Operating income (loss)		7,438,666		461,585		(4,142,573)		3,757,678
Interest expense		55,495		—		266,602		322,097
Income (loss) from operations before taxes		7,391,732		464,742		(4,380,784)		3,475,690
Equity method investment earnings, net of tax		—		—		770,365		770,365
Total assets		153,998,433		17,710,816		13,939,522		185,648,771
Capital expenditures		176,981		44,445		—		221,426