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Quarterly Results of Operations (Unaudited)

12 Months Ended

Sep. 30, 2020

Quarterly Financial Information Disclosure [Abstract]

Quarterly Results of Operations (Unaudited)

17. Quarterly Results of Operations (Unaudited)

The following tables summarize unaudited quarterly data for fiscal 2020, 2019, and 2018 (in thousands, except per share data):

	For the Three Months Ended
	December 31, 2019		March 31, 2020			June 30, 2020			September 30, 2020
Revenues⁽¹⁾	$	48,394	$	40,426		$	14,721		$	28,786
Income (loss) from operations⁽¹⁾	$	9,686	$	(2,475	)	$	(4,657	)	$	192
Net income (loss) attributable to RCIHH stockholders⁽¹⁾	$	5,634	$	(3,452	)	$	(5,474	)	$	(2,793	)
Earnings (loss) per share⁽¹⁾
Basic and diluted	$	0.60	$	(0.37	)	$	(0.60	)	$	(0.31	)
Weighted average number of common shares outstanding
Basic and diluted		9,322		9,225			9,125			9,124

	For the Three Months Ended
	December 31, 2018		March 31, 2019		June 30, 2019		September 30, 2019
Revenues	$	44,023	$	44,826	$	47,027	$	45,183
Income from operations⁽²⁾	$	11,132	$	11,166	$	9,974	$	2,429
Net income attributable to RCIHH stockholders⁽²⁾	$	7,463	$	6,735	$	5,638	$	458
Earnings per share⁽²⁾
Basic and diluted	$	0.77	$	0.70	$	0.59	$	0.05
Weighted average number of common shares outstanding
Basic and diluted		9,713		9,679		9,620		9,616

	For the Three Months Ended
	December 31, 2017		March 31, 2018		June 30, 2018		September 30, 2018
Revenues	$	41,212	$	41,226	$	42,634	$	40,676
Income from operations⁽³⁾	$	9,140	$	8,231	$	9,492	$	699
Net income (loss) attributable to RCIHH stockholders⁽³⁾	$	14,311	$	4,685	$	5,389	$	(3,506	)
Earnings (loss) per share⁽³⁾
Basic and diluted	$	1.47	$	0.48	$	0.55	$	(0.36	)
Weighted average number of common shares outstanding
Basic and diluted		9,719		9,719		9,719		9,719

RCI HOSPITALITY HOLDINGS, INC.

Notes to Consolidated Financial Statements

	(1)	Fiscal year 2020 revenues during the second through the fourth quarter were significantly affected by the COVID-19 pandemic. Income (loss) from operations, net income (loss) attributable to RCIHH stockholders, and earnings (loss) per share included the impact of a $10.6 million in asset impairments ($8.2 million in the second quarter, $982,000 in the third quarter, and $1.4 million in the fourth quarter). Net loss attributable to RCIHH stockholders and loss per share during the fourth quarter was also affected by the $1.3 million valuation allowance on our deferred tax assets. Quarterly effective income tax expense (benefit) rate was 22.0%, (28.9)%, (20.5)%, and 36.3% from first to fourth quarter, respectively.

	(2)	Fiscal year 2019 income from operations, net income attributable to RCIHH stockholders, and earnings per share included the impact of a $6.0 million in asset impairments in the fourth quarter, a $2.9 million net gain on sale of businesses and assets ($1.2 million in the first quarter, $1.1 million in the second quarter, $0.3 million in the third quarter, and $0.4 million in the fourth quarter), and a $0.8 million net gain on insurance ($0.1 million net loss in the third quarter and $0.9 million net gain in the fourth quarter). Quarterly effective income tax expense (benefit) rate was 8.4%, 22.3%, 24.1%, and (371.7)% from first to fourth quarter, respectively. See Note 4 related to revision of prior year immaterial misstatement.

	(3)	Fiscal year 2018 income from operations, net income attributable to RCIHH stockholders, and earnings per share included the impact of a $1.6 million loss on disposition in the second quarter, a $5.6 million in asset impairments ($1.6 million in the second quarter and $4.0 million in the fourth quarter), and a $8.8 million deferred income tax benefit related to the revaluation of deferred tax assets and liabilities ($9.7 million credit in the first quarter, $38,000 expense in the second quarter, and $827,000 expense in the fourth quarter). Quarterly effective income tax expense (benefit) rate was (134.3)%, 24.2%, 25.3%, and 103.8% from first to fourth quarter, respectively.

Our nightclub operations are normally affected by seasonal factors. Historically, we have experienced reduced revenues from April through September (our fiscal third and fourth quarters) with the strongest operating results occurring during October through March (our fiscal first and second quarters), but in fiscal 2020, due to the COVID-19 pandemic, revenues during the second through the fourth quarter were significantly reduced. Our revenues in certain markets are also affected by sporting events that cause unusual changes in sales from year to year.

RCI HOSPITALITY HOLDINGS, INC.

Notes to Consolidated Financial Statements