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Segment Information
 3 Months Ended
Dec. 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):

 

   2021   2020 
   For the Three Months 
   Ended December 31, 
   2021   2020 
Revenues (from external customers)          
Nightclubs  $46,781   $25,197 
Bombshells   14,771    13,006 
Other   284    195 
Total Revenues  $61,836   $38,398 
           
Income (loss) from operations          
Nightclubs  $18,736   $8,495 
Bombshells   2,802    2,717 
Other   (43)   (75)
General corporate   (5,584)   (4,554)
Total Income (loss) from operations  $15,911   $6,583 
           
Depreciation and amortization          
Nightclubs  $1,547   $1,324 
Bombshells   429    457 
Other   6    36 
General corporate   212    206 
Total Depreciation and amortization  $2,194   $2,023 
           
Capital expenditures          
Nightclubs  $9,228   $1,130 
Bombshells   304    151 
Other   189    3 
General corporate   129    5 
Total Capital expenditures  $9,850   $1,289 

 

   December 31, 2021   September 30, 2021 
Total assets          
Nightclubs  $377,611   $280,561 
Bombshells   52,385    52,073 
Other   2,059    1,573 
General corporate   33,623    30,412 
 Total assets   $465,678   $364,619 

 

 

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, 2021 amounting to $3.2 million and $168,000, respectively, and intercompany sales of Robust Energy Drink of Other segment amounting to $69,000. 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. 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.