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EARNINGS PER SHARE (EPS)
 9 Months Ended
Jun. 30, 2011
Earnings Per Share [Abstract]  
Earnings Per Share [Text Block]
8.  EARNINGS PER SHARE (“EPS”)

The Company computes earnings per share in accordance with FASB ASC 260, Earnings Per Share .  ASC 260 provides for the calculation of basic and diluted earnings per share.  Basic earnings per share includes no dilution and is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding for the period.  Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of the Company.

Potential common stock shares consist of shares that may arise from outstanding dilutive common stock warrants and options (the number of which is computed using the “treasury stock method”) and from outstanding convertible debentures (the number of which is computed using the “if converted method”).

Diluted EPS considers the potential dilution that could occur if the Company’s outstanding common stock options, warrants and convertible debentures were converted into common stock that then shared in the Company’s earnings (as adjusted for interest expense) that would no longer occur if the debentures were converted).

(in thousands, except per share data)
 
FOR THE QUARTER
   
FOR THE NINE MONTHS
 
   
ENDED JUNE 30,
   
ENDED JUNE 30,
 
   
2011
   
2010
   
2011
   
2010
 
Basic earnings per share:
                       
Income from continuing operations attributable to Rick's shareholders
  $ 2,468     $ 1,059     $ 8,032     $ 5,139  
Loss from discontinued operations, net of income taxes
    (1,580 )     (202 )     (2,146 )     (555 )
Net income attributable to Rick's shareholders
  $ 888     $ 857     $ 5,886     $ 4,584  
Average number of common shares outstanding
    9,924       9,905       9,968       9,546  
Basic earnings per share - income from continuing operations
  $ 0.25     $ 0.11     $ 0.81     $ 0.54  
Basic earnings per share - discontinued operations
  $ (0.16 )   $ (0.02 )   $ (0.22 )   $ (0.06 )
Basic earnings per share - net income attributable to Rick's shareholders
  $ 0.09     $ 0.09     $ 0.59     $ 0.48  
Diluted earnings per share:
                               
Income from continuing operations attributable to Rick's shareholders
  $ 2,468     $ 1,059     $ 8,032     $ 5,139  
Adjustment to net earnings from assumed conversion of debentures (1)
    -       -       -       117  
Adjusted income from continuing operations
    2,558       1,059       8,122       5,256  
Discontinued operations
    (1,580 )     (202 )     (2,146 )     (555 )
Adjusted net income attributable to Rick's shareholders
  $ 888     $ 857     $ 5,886     $ 4,701  
Average number of common shares outstanding:
                               
Common shares outstanding
    9,924       9,905       9,968       9,546  
Potential dilutive shares resulting from exercise of warrants and options (2)
    17       53       15       46  
Potential dilutive shares resulting from conversion of debentures (3)
    -       -       -       284  
Total average number of common shares outstanding used for dilution
    9,941       9,958       9,983       9,876  
Diluted earnings per share - income from continuing operations atrributable to Rick's shareholders
  $ 0.25     $ 0.11     $ 0.80     $ 0.53  
Diluted earnings per share - discontinued operations
  $ (0.16 )   $ (0.02 )   $ (0.21 )   $ (0.06 )
Diluted earnings per share - net income attributable to Rick's shareholders
  $ 0.09     $ 0.09     $ 0.59     $ 0.48  

(1)  Represents interest expense on dilutive convertible debentures that would not occur if they were assumed converted.
(2)   All outstanding warrants and options were considered for the EPS computation.
(3) Convertible debentures (principal and accrued interest) outstanding at June 30, 2011 and 2010 totaling approximately $7,370,000 and $9,455,000, respectively, were convertible into common stock at a price of $10.25 per share.  Potential dilutive shares of 719,046 and 69,552 for the three months ended June 30, 2011 and 2010, respectively, and 719,046 and 36,629 for the nine months ended June 30, 2011 and 2010, respectively, have been excluded from earnings per share due to being anti-dilutive.