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Segment Information
 3 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Segment Information

10. 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 segments (in thousands):

 

   For the Three Months 
   Ended December 31, 
   2020   2019 
Revenues (from external customers)          
Nightclubs  $25,197   $37,859 
Bombshells   13,006    10,350 
Other   195    185 
   $38,398   $48,394 
           
Income (loss) from operations          
Nightclubs  $8,495   $13,776 
Bombshells   2,717    1,573 
Other   (75)   (207)
General corporate   (4,554)   (5,456)
   $6,583   $9,686 
           
Depreciation and amortization          
Nightclubs  $1,324   $1,470 
Bombshells   457    417 
Other   36    104 
General corporate   206    213 
   $2,023   $2,204 
           
Capital expenditures          
Nightclubs  $1,130   $2,332 
Bombshells   151    1,725 
Other   3    - 
General corporate   5    1 
   $1,289   $4,058 

 

    December 31, 2020     September 30, 2020  
Total assets                
Nightclubs   $ 278,991     $ 277,960  
Bombshells     48,072       48,991  
Other     1,311       1,269  
General corporate     30,235       32,713  
    $ 358,609     $ 360,933  

 

 

RCI HOSPITALITY HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

 

Excluded from revenues in the table above are intercompany rental revenues of the Nightclubs and Corporate segments for the quarter ended December 31, 2020 amounting to $2.8 million and $110,000, respectively, and intercompany sales of Robust Energy Drink of Other segment amounting to $26,000. Excluded from revenues in the table above are intercompany rental revenues of the Nightclubs and corporate segments for the quarter ended December 31, 2019 amounting to $2.7 million and $31,000, respectively, and intercompany sales of Robust Energy Drink of Other segment amounting to $22,000. 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.