AMCON DISTRIBUTING CO Segments Disclosure
13. BUSINESS SEGMENTS:
The Company has two reportable business segments: the wholesale distribution of consumer products (the Wholesale Segment), and the retail sale of health and natural food products (the Retail Segment). The Company’s chief operating decision maker (“CODM”) is the chief executive officer, who utilizes operating income (loss) to evaluate the Company’s business operations and allocate the Company’s resources to these business segments, which are aggregated 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 and assets held and charges incurred and income earned by our holding company.
Wholesale | Retail | |||||||||||
| Segment |
| Segment |
| Other |
| Consolidated | |||||
FISCAL YEAR ENDED 2025: | ||||||||||||
External revenue: | ||||||||||||
Cigarettes | $ | 1,713,451,582 | $ | — | $ | — | $ | 1,713,451,582 | ||||
Tobacco | 540,788,438 | — | — | 540,788,438 | ||||||||
Confectionery | 187,172,757 | — | — | 187,172,757 | ||||||||
Health food | — | 44,498,147 | — | 44,498,147 | ||||||||
Foodservice & other | 330,777,363 | — | — | 330,777,363 | ||||||||
Total external revenue | 2,772,190,140 | 44,498,147 | — | 2,816,688,287 | ||||||||
Cost of sales | 2,600,373,554 | 28,084,485 | — | 2,628,458,039 | ||||||||
Selling, general and administrative expenses | 140,037,148 | 15,274,745 | 10,527,690 | 165,839,583 | ||||||||
Depreciation | 8,312,011 | 1,016,314 | — | 9,328,325 | ||||||||
Amortization | 506,875 | — | — | 506,875 | ||||||||
Operating income (loss) | 22,960,552 | 122,603 | (10,527,690) | 12,555,465 | ||||||||
Interest expense | — | — | 10,443,571 | 10,443,571 | ||||||||
Income (loss) from operations before taxes | 22,323,779 | 211,221 | (20,971,261) | 1,563,739 | ||||||||
Total assets | 373,358,117 | 16,822,730 | 907,679 | 391,088,526 | ||||||||
Capital expenditures | 7,438,747 | 589,085 | — | 8,027,832 | ||||||||
Wholesale | Retail | |||||||||||
| Segment |
| Segment |
| Other |
| Consolidated | |||||
FISCAL YEAR ENDED 2024: | ||||||||||||
External revenue: | ||||||||||||
Cigarettes | $ | 1,669,390,346 | $ | — | $ | — | $ | 1,669,390,346 | ||||
Tobacco | 499,869,540 | — | — | 499,869,540 | ||||||||
Confectionery | 174,952,982 | — | — | 174,952,982 | ||||||||
Health food | — | 42,494,231 | — | 42,494,231 | ||||||||
Foodservice & other | 324,274,009 | — | — | 324,274,009 | ||||||||
Total external revenue | 2,668,486,877 | 42,494,231 | — | 2,710,981,108 | ||||||||
Cost of sales | 2,501,750,012 | 26,876,640 | — | 2,528,626,652 | ||||||||
Selling, general and administrative expenses | 126,960,820 | 14,530,547 | 13,387,396 | 154,878,763 | ||||||||
Depreciation | 7,983,266 | 974,212 | — | 8,957,478 | ||||||||
Amortization | 537,701 | — | — | 537,701 | ||||||||
Operating income (loss) | 31,255,079 | 112,831 | (13,387,396) | 17,980,514 | ||||||||
Interest expense | — | — | 10,413,228 | 10,413,228 | ||||||||
Income (loss) from operations before taxes | 30,685,132 | 745,893 | (23,968,536) | 7,462,489 | ||||||||
Total assets | 356,187,395 | 16,713,578 | 1,206,337 | 374,107,310 | ||||||||
Capital expenditures (1) | 26,573,247 | 1,857,972 | — | 28,431,219 | ||||||||
(1) Includes $10.0 million purchase of a distribution facility in Colorado City, Colorado.
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.