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Segment Information

12 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

Segment Information

18. Segment Information

The Company owns and operates adult nightclubs and Bombshells Restaurants and Bars. The Company has identified such segments based on management responsibility and the nature of the Company’s products, services and costs. There are no major distinctions in geographical areas served as all operations are in the United States. The Company measures segment profit (loss) as income (loss) from operations. Segment assets are those assets controlled by each reportable segment. The Other category below includes our media and energy drink divisions that are not significant to the consolidated financial statements.

Below is the financial information related to the Company’s reportable segments (in thousands):

		2019				2018				2017
Revenues (from external customers)
Nightclubs		$	148,606			$	140,060			$	124,687
Bombshells			30,828				24,094				18,830
Other			1,625				1,594				1,379
		$	181,059			$	165,748			$	144,896

Income (loss) from operations(1)
Nightclubs		$	50,724			$	43,624			$	35,138
Bombshells			2,307				2,040				3,084
Other			(309	)			(252	)			(522	)
General corporate			(18,021	)			(17,850	)			(14,561	)
		$	34,701			$	27,562			$	23,139

Capital expenditures
Nightclubs		$	6,645			$	2,052			$	5,142
Bombshells			10,933				22,522				4,489
Other			27				33				14
General corporate			3,579				656				1,604
		$	21,184			$	25,263			$	11,249

Depreciation and amortization
Nightclubs		$	6,401			$	5,404			$	5,186
Bombshells			1,374				1,265				1,025
Other			416				179				50
General corporate			881				874				659
		$	9,072			$	7,722			$	6,920

		September 30, 2019				September 30, 2018				September 30, 2017
Total assets(1)
Nightclubs		$	274,071			$	252,335			$	254,432
Bombshells			44,144				39,560				18,870
Other			1,773				1,978				780
General corporate			33,649				35,859				25,802
		$	353,637			$	329,732			$	299,884

(1) See Note 3 for a discussion of revision of prior year immaterial misstatement.

Excluded from revenues in the table above are intercompany rental revenues of the Nightclubs segment amounting to $10.0 million, $9.0 million, and $8.8 million for 2019, 2018, and 2017, respectively, and intercompany sales of Robust Energy Drink of Other segment amounting to $140,000, $26,000, and $0, for the same respective years. These revenue items are eliminated upon consolidation.

General corporate expenses include corporate salaries, health insurance and social security taxes for officers, legal, accounting and information technology employees, corporate taxes and insurance, legal and accounting fees, depreciation and other corporate costs such as automobile and travel costs. Management considers these to be non-allocable costs for segment purposes.