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Segment Information
 9 Months Ended
Jun. 30, 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 Nine Months 
   Ended June 30,   Ended June 30, 
   2021   2020   2021   2020 
Revenues (from external customers)                    
Nightclubs  $41,031   $6,013   $97,015   $75,239 
Bombshells   16,077    8,531    42,218    27,684 
Other   752    177    1,084    618 
   $57,860   $14,721   $140,317   $103,541 
                     
Income (loss) from operations                    
Nightclubs  $18,350   $(3,038)  $37,313   $13,002 
Bombshells   4,404    1,850    10,263    4,109 
Other   321    (92)   107    (423)
General corporate   (4,568)   (3,377)   (12,752)   (14,134)
   $18,507   $(4,657)  $34,931   $2,554 
                     
Depreciation and amortization                    
Nightclubs  $1,380   $1,470   $4,117   $4,426 
Bombshells   459    455    1,377    1,328 
Other   8    103    80    311 
General corporate   210    207    623    631 
   $2,057   $2,235   $6,197   $6,696 
                     
Capital expenditures                    
Nightclubs  $2,479   $106   $5,810   $2,964 
Bombshells   1,329    136    4,584    2,473 
Other   -    -    1    - 
General corporate   262    -    393    128 
   $4,070   $242   $10,788   $5,565 

 

   June 30, 2021   September 30, 2020 
Total assets          
Nightclubs  $286,629   $277,960 
Bombshells   52,503    48,991 
Other   1,395    1,269 
General corporate   27,412    32,713 
   $367,939   $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 June 30, 2021 amounting to $2.8 million and $31,000, respectively, and for the nine months ended June 30, 2021 amounting to $8.4 million and $173,000, respectively, and intercompany sales of Robust Energy Drink of Other segment for the three and nine months ended June 30, 2021 amounting to $20,000 and $95,000, respectively. Excluded from revenues in the table above are intercompany rental revenues of the Nightclubs and Corporate segments for the three months ended June 30, 2020 amounting to $2.8 million and $31,000, respectively, and for the nine months ended June, 2020 amounting to $8.2 million and $94,000, respectively, and intercompany sales of Robust Energy Drink of Other segment for the three and nine months ended June 30, 2020 amounting to $3,000 and $57,000, 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.