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Quarterly Results of Operations (Unaudited) | 12 Months Ended
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Sep. 30, 2022
Quarterly Financial Information Disclosure [Abstract] |
Quarterly Results of Operations (Unaudited) | Quarterly Results of Operations (Unaudited) The following tables summarize unaudited quarterly data for fiscal 2022, 2021, and 2020 (in thousands, except share and per share data):
| For the Three Months Ended
| December 31, 2021 |  | March 31, 2022 |  | June 30, 2022 |  | September 30, 2022
Revenues(1) | $ | 61,836 |  |  | $ | 63,692 |  |  | $ | 70,714 |  |  | $ | 71,378 |
Income from operations(1) | $ | 15,911 |  |  | $ | 17,081 |  |  | $ | 20,507 |  |  | $ | 17,960 |
Net income attributable to RCIHH stockholders(1) | $ | 10,575 |  |  | $ | 10,952 |  |  | $ | 13,902 |  |  | $ | 10,612 |
Earnings per share(1) |  |  |  |  |  |  |
Basic and diluted | $ | 1.12 |  |  | $ | 1.15 |  |  | $ | 1.48 |  |  | $ | 1.15 |
Weighted average number of common shares outstanding |  |  |  |  |  |  |
Basic and diluted | 9,407,519 |  | 9,489,085 |  | 9,389,675 |  | 9,249,864
| For the Three Months Ended
| December 31, 2020 |  | March 31, 2021 |  | June 30, 2021 |  | September 30, 2021
Revenues(2) | $ | 38,398 |  |  | $ | 44,059 |  |  | $ | 57,860 |  |  | $ | 54,941 |
Income from operations(2) | $ | 6,583 |  |  | $ | 9,841 |  |  | $ | 18,507 |  |  | $ | 3,617 |
Net income attributable to RCIHH stockholders(2) | $ | 9,643 |  |  | $ | 6,091 |  |  | $ | 12,302 |  |  | $ | 2,300 |
Earnings per share(2) |  |  |  |  |  |  |
Basic and diluted | $ | 1.07 |  |  | $ | 0.68 |  |  | $ | 1.37 |  |  | $ | 0.26 |
Weighted average number of common shares outstanding |  |  |  |  |  |  |
Basic and diluted | 9,019,088 |  | 8,999,910 |  | 8,999,910 |  | 8,999,910
| For the Three Months Ended
| December 31, 2019 |  | March 31, 2020 |  | June 30, 2020 |  | September 30, 2020
Revenues | $ | 48,394 |  |  | $ | 40,426 |  |  | $ | 14,721 |  |  | $ | 28,786 |
Income (loss) from operations(3) | $ | 9,686 |  |  | $ | (2,475) |  |  | $ | (4,657) |  |  | $ | 192 |
Net income (loss) attributable to RCIHH stockholders(3) | $ | 5,634 |  |  | $ | (3,452) |  |  | $ | (5,474) |  |  | $ | (2,793) |
Earnings (loss) per share(3) |  |  |  |  |  |  |
Basic and diluted | $ | 0.60 |  |  | $ | (0.37) |  |  | $ | (0.60) |  |  | $ | (0.31) |
Weighted average number of common shares outstanding |  |  |  |  |  |  |
Basic and diluted | 9,321,933 |  | 9,224,960 |  | 9,125,281 |  | 9,124,214
(1) | Fiscal year 2022 results of operations were significantly higher than prior year due to the fifteen acquired clubs and one new Bombshells. Net income attributable to RCIHH stockholders and earnings per share were impacted by $1.9 million in asset impairments ($1.7 million in the third quarter and $166,000 in the fourth quarter) and $2.4 million gain on sale or disposition of businesses and assets ($342,000 in the first quarter, $58,000 in the second quarter, $266,000 in the third quarter, and $1.7 million in the fourth quarter). Quarterly effective income tax expense rate was 21.7%, 23.4%, 21.3%, and 27.1% from first to fourth quarter, respectively, including the impact of the $343,000 deferred tax asset valuation allowance in the fourth quarter.
(2) | Fiscal year 2021 revenues were significantly higher compared to prior year, except for the first quarter, which was still affected by the lockdowns and social restrictions of the COVID-19 pandemic. Net income attributable to RCIHH stockholders and earnings per share were heavily impacted by the gain on debt extinguishment ($4.9 million in the first quarter and $380,000 in the second quarter), asset impairments totaling $13.6 million ($1.4 million in the second quarter, $271,000 in the third quarter, and $11.9 million in the fourth quarter), and gain on insurance totaling $1.3 million ($197,000 in the first quarter, $12,000 in the second quarter, and $1.0 million in the fourth quarter). Quarterly effective income tax expense (benefit) rate was (4.2)%, 24.3%, 24.4%, and (210.4)% from first to fourth quarter, respectively, including the impact of the release of a $462,000 deferred tax asset valuation allowance in the fourth quarter.
(3) | Fiscal year 2020 revenues during the second through the fourth quarter were significantly affected by the COVID-19 pandemic. Income (loss) from operations, net income (loss) attributable to RCIHH stockholders, and earnings (loss) per share included the impact of a $10.6 million in asset impairments ($8.2 million in the second quarter, $982,000 in the third quarter, and $1.4 million in the fourth quarter). Net loss attributable to RCIHH stockholders and loss per share during the fourth quarter was also affected by the $1.3 million valuation allowance on our deferred tax assets. Quarterly effective income tax expense (benefit) rate was 22.0%, (28.9)%, (20.5)%, and 36.3% from first to fourth quarter, respectively.
Our nightclub operations are normally affected by seasonal factors. Historically, we have experienced reduced revenues from April through September (our fiscal third and fourth quarters) with the strongest operating results occurring during October through March (our fiscal first and second quarters), but in fiscal 2020, due to the COVID-19 pandemic, revenues during the second through the fourth quarter were significantly reduced. Our revenues in certain markets are also affected by sporting events that cause unusual changes in sales from year to year.

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- Definition The entire disclosure for quarterly financial data. Includes, but is not limited to, tabular presentation of financial information for fiscal quarters, effect of year-end adjustments, and an explanation of matters or transactions that affect comparability of the information. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 270 -URI https://asc.fasb.org/topic&trid=2126967 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 270 -SubTopic 10 -Section 50 -Paragraph 1B -URI https://asc.fasb.org/extlink&oid=126900988&loc=SL124452896-108306 + Details
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