XML 43 R28.htm IDEA: XBRL DOCUMENT v3.20.4
Segment Information
 12 Months Ended
Sep. 30, 2020
Segment Reporting [Abstract]  
Segment Information

19. 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.

 

 

RCI HOSPITALITY HOLDINGS, INC.

Notes to Consolidated Financial Statements

 

19. Segment Information - continued

 

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

 

   2020   2019   2018 
Revenues (from external customers)               
Nightclubs  $88,373   $148,606   $140,060 
Bombshells   43,215    30,828    24,094 
Other   739    1,625    1,594 
   $132,327   $181,059   $165,748 
                
Income (loss) from operations               
Nightclubs  $13,118   $50,724   $43,624 
Bombshells   9,245    2,307    2,040 
Other   (684)   (309)   (252)
General corporate   (18,933)   (18,021)   (17,850)
   $2,746   $34,701   $27,562 
                
Capital expenditures               
Nightclubs  $3,477   $6,645   $2,052 
Bombshells   2,114    10,457    22,522 
Other   -    27    33 
General corporate   145    3,579    656 
   $5,736   $20,708   $25,263 
                
Depreciation and amortization               
Nightclubs  $5,799   $6,401   $5,404 
Bombshells   1,785    1,374    1,265 
Other   415    416    179 
General corporate   837    881    874 
   $8,836   $9,072   $7,722 

 

   September 30, 2020   September 30, 2019   September 30, 2018 
Total assets(1)               
Nightclubs(1) $277,960   $274,071   $252,335 
Bombshells(1)  48,991    44,144    39,560 
Other(1)  1,269    1,773    1,978 
General corporate(1)  32,713    34,768    35,859 
 (1) $360,933   $354,756   $329,732 

 

(1) See Note 4 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 $11.1 million, $10.0 million, and $9.0 million for 2020, 2019, and 2018, respectively, and intercompany sales of Robust Energy Drink of Other segment amounting to $70,000, $140,000, and $26,000 for the same respective years. These intercompany revenue amounts 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.

 

Certain real estate assets previously wholly assigned to Bombshells have been subdivided and allocated to other future development or investment projects. Accordingly, those asset costs have been transferred out of the Bombshells segment.

 

 

RCI HOSPITALITY HOLDINGS, INC.

Notes to Consolidated Financial Statements