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Segment Information
 12 Months Ended
Sep. 30, 2021
Segment Reporting [Abstract]  
Segment Information

17. 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):

 

   2021   2020   2019 
Revenues (from external customers)               
Nightclubs  $137,348   $88,373   $148,606 
Bombshells   56,621    43,215    30,828 
Other   1,289    739    1,625 
   $195,258   $132,327   $181,059 
                
Income (loss) from operations               
Nightclubs  $43,815   $13,056   $50,724 
Bombshells   13,264    9,237    2,307 
Other   35    (614)   (309)
General corporate   (18,566)   (18,933)   (18,021)
   $38,548   $2,746   $34,701 
                
Capital expenditures               
Nightclubs  $6,890   $3,477   $6,645 
Bombshells   5,895    2,114    10,457 
Other   157    -    27 
General corporate   569    145    3,579 
   $13,511   $5,736   $20,708 
                
Depreciation and amortization               
Nightclubs  $5,494   $5,799   $6,401 
Bombshells   1,824    1,785    1,374 
Other   87    415    416 
General corporate   833    837    881 
   $8,238   $8,836   $9,072 

 

   September 30, 2021   September 30, 2020   September 30, 2019 
Total assets               
Nightclubs  $280,561   $277,960   $274,071 
Bombshells   52,073    48,991    44,144 
Other   1,573    1,269    1,773 
General corporate   30,412    32,713    34,768 
   $364,619   $360,933   $354,756 

 

Excluded from revenues in the table above are intercompany rental revenues of the Nightclubs segment amounting to $11.5 million, $11.1 million, and $10.0 million for 2021, 2020, and 2019, respectively, and intercompany sales of Robust Energy Drink of Other segment amounting to $141,000, $70,000, and $140,000 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