XML 21 R11.htm IDEA: XBRL DOCUMENT v3.20.2
Revenues
 9 Months Ended
Jun. 30, 2020
Revenue from Contract with Customer [Abstract]  
Revenues

4. Revenues

 

The Company recognizes revenue from the sale of alcoholic beverages, food and merchandise, service and other revenues at the point-of-sale upon receipt of cash, check, or credit card charge, net of discounts and promotional allowances based on consideration specified in implied contracts with customers. Sales and liquor taxes collected from customers and remitted to governmental authorities are presented on a net basis in the accompanying unaudited condensed consolidated statements of operations. The Company recognizes revenue when it satisfies a performance obligation (point in time of sale) by transferring control over a product or service to a customer.

 

Commission revenues, such as ATM commission, are recognized when the basis for such commission has transpired. Revenues from the sale of magazines and advertising content are recognized when the issue is published and shipped. Revenues and external expenses related to the Company’s annual Expo convention are recognized upon the completion of the convention, which normally occurs during our fiscal fourth quarter. Lease revenue (included in other revenues) is recognized when earned (recognized over time) and is more appropriately covered by guidance under ASC 842, Leases (ASC 840 in prior year). See Note 14.

 

 

RCI HOSPITALITY HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

 

Revenues, as disaggregated by revenue type, timing of recognition, and reportable segment (see also Note 12), are shown below (in thousands):

 

 

   Three Months Ended June 30, 2020   Three Months Ended June 30, 2019 
   Nightclubs   Bombshells   Other   Total   Nightclubs   Bombshells   Other   Total 
Sales of alcoholic beverages  $1,777   $5,846   $-   $7,623   $14,597   $4,973   $-   $19,570 
Sales of food and merchandise   774    2,678    -    3,452    3,313    3,733    -    7,046 
Service revenues   2,906    1    -    2,907    17,257    42    -    17,299 
Other revenues   556    6    177    739    2,722    7    383    3,112 
   $6,013   $8,531   $177   $14,721   $37,889   $8,755   $383   $47,027 
                                         
Recognized at a point in time  $5,781   $8,531   $175   $14,487   $37,457   $8,755   $369   $46,581 
Recognized over time   232*   -    2    234    432*   -    14    446 
   $6,013   $8,531   $177   $14,721   $37,889   $8,755   $383   $47,027 

 

   Nine Months Ended June 30, 2020   Nine Months Ended June 30, 2019 
   Nightclubs   Bombshells   Other   Total   Nightclubs   Bombshells   Other   Total 
Sales of alcoholic beverages  $28,321   $16,964   $-   $45,285   $43,547   $12,819   $-   $56,366 
Sales of food and merchandise   6,837    10,541    -    17,378    9,813    9,362    -    19,175 
Service revenues   34,290    158    -    34,448    51,513    96    -    51,609 
Other revenues   5,791    21    618    6,430    7,791    18    917    8,726 
   $75,239   $27,684   $618   $103,541   $112,664   $22,295   $917   $135,876 
                                         
Recognized at a point in time  $74,192   $27,684   $605   $102,481   $111,431   $22,295   $874   $134,600 
Recognized over time   1,047*   -    13    1,060    1,233*   -    43    1,276 
   $75,239   $27,684   $618   $103,541   $112,664   $22,295   $917   $135,876 

 

* Lease revenue (included in Other Revenues) as covered by ASC 842 in the current year (and ASC 840 in the prior year). All other revenues are covered by ASC 606.

 

The Company does not have contract assets with customers. The Company’s unconditional right to consideration for goods and services transferred to the customer is included in accounts receivable, net in our unaudited condensed consolidated balance sheet. A reconciliation of contract liabilities with customers is presented below (in thousands):

 

 

  

Balance at

September 30, 2019

   Consideration Received   Recognized in Revenue  

Balance at

June 30, 2020

 
Ad revenue  $76   $403   $(412)  $67 
Expo revenue   -    262    -    262 
Other   7    18    (23)   2 
   $83   $683   $(435)  $331 

 

Contract liabilities with customers are included in accrued liabilities as unearned revenues in our unaudited condensed consolidated balance sheets (see also Note 5), while the revenues associated with these contract liabilities are included in other revenues in our unaudited condensed consolidated statements of operations.

 

 

RCI HOSPITALITY HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)