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Quarterly Results of Operations (Unaudited) (Tables)

12 Months Ended

Sep. 30, 2022

Quarterly Financial Information Disclosure [Abstract]

Schedule of Quarterly Financial Information

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.