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Segment Information
 6 Months Ended
Mar. 31, 2021
Segment Reporting [Abstract]  
Segment Information

11. 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   For the Six Months 
   Ended March 31,   Ended March 31, 
   2021   2020   2021   2020 
Revenues (from external customers)                    
Nightclubs  $30,787   $31,367   $55,984   $69,226 
Bombshells   13,135    8,803    26,141    19,153 
Other   137    256    332    441 
   $44,059   $40,426   $82,457   $88,820 
                     
Income (loss) from operations                    
Nightclubs  $10,468   $2,284   $18,963   $16,040 
Bombshells   3,142    688    5,859    2,259 
Other   (139)   (146)   (214)   (331)
General corporate   (3,630)   (5,301)   (8,184)   (10,757)
   $9,841   $(2,475)  $16,424   $7,211 
                     
Depreciation and amortization                    
Nightclubs  $1,413   $1,486   $2,737   $2,956 
Bombshells   461    456    918    873 
Other   36    104    72    208 
General corporate   207    211    413    424 
   $2,117   $2,257   $4,140   $4,461 
                     
Capital expenditures                    
Nightclubs  $2,201   $526   $3,331   $2,858 
Bombshells   3,104    612    3,255    2,337 
Other   (2)   -    1    - 
General corporate   126    127    131    128 
   $5,429   $1,265   $6,718   $5,323 

 

   March 31, 2021   September 30, 2020 
Total assets          
Nightclubs  $280,060   $277,960 
Bombshells   50,832    48,991 
Other   1,303    1,269 
General corporate   28,915    32,713 
   $361,110   $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 three months ended March 31, 2021 amounting to $2.8 million and $31,000, respectively, and for the six months ended March 31, 2021 amounting to $5.6 million and $141,000, respectively, and intercompany sales of Robust Energy Drink of Other segment for the three and six months ended March 31, 2021 amounting to $49,000 and $75,000, respectively. Excluded from revenues in the table above are intercompany rental revenues of the Nightclubs and corporate segments for the three months ended March 31, 2020 amounting to $2.8 million and $32,000, respectively, and for the six months ended March 31, 2020 amounting to $5.4 million and $63,000, respectively, and intercompany sales of Robust Energy Drink of Other segment for the three and six months ended March 31, 2020 amounting to $32,000 and $54,000, respectively. 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.