Quarterly Results of Operations (Unaudited)

12 Months Ended

Sep. 30, 2023

Quarterly Financial Information Disclosure [Abstract]

Quarterly Results of Operations (Unaudited)

The following tables summarize unaudited quarterly data for fiscal 2023, 2022, and 2021 (in thousands, except share and per share data):


	For the Three Months Ended
	December 31, 2022		March 31, 2023		June 30, 2023		September 30, 2023
Revenues(1)	$	69,968	$	71,517	$	77,055	$	75,250
Income from operations(1)	$	16,898	$	13,427	$	15,515	$	5,644
Net income attributable to RCIHH stockholders(1)	$	10,238	$	7,732	$	9,085	$	2,191
Earnings per share(1)
Basic and diluted	$	1.11	$	0.83	$	0.96	$	0.23
Weighted average number of common shares outstanding
Basic and diluted	9,230,258		9,265,781		9,430,225		9,417,166
Dividends per share declared and paid	$	0.05	$	0.06	$	0.06	$	0.06


	For the Three Months Ended
	December 31, 2021		March 31, 2022		June 30, 2022		September 30, 2022
Revenues(2)	$	61,836	$	63,692	$	70,714	$	71,378
Income from operations(2)	$	15,911	$	17,081	$	20,507	$	17,960
Net income attributable to RCIHH stockholders(2)	$	10,575	$	10,952	$	13,902	$	10,612
Earnings per share(2)
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
Dividends per share declared and paid	$	0.04	$	0.05	$	0.05	$	0.05


	For the Three Months Ended
	December 31, 2020		March 31, 2021		June 30, 2021		September 30, 2021
Revenues	$	38,398	$	44,059	$	57,860	$	54,941
Income from operations(3)	$	6,583	$	9,841	$	18,507	$	3,617
Net income attributable to RCIHH stockholders(3)	$	9,643	$	6,091	$	12,302	$	2,300
Earnings per share(3)
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
Dividends per share declared and paid	$	0.04	$	0.04	$	0.04	$	0.04


(1)			Fiscal year 2023 results of operations mainly impacted by the six newly acquired clubs and the lower same-store sales. Net income attributable to RCIHH stockholders and earnings per share were impacted by $12.6 million in asset impairments ($662,000 in the second quarter, $2.6 million in the third quarter, and $9.3 million in the fourth quarter) and $3.8 million in lawsuit settlements ($3.1 million in the second quarter, $63,000 in the third quarter, and $576,000 in the fourth quarter). Quarterly effective income tax expense (benefit) rate was 22.8%, 21.8%, 20.1%, and (39.6)% from first to fourth quarter, respectively, including the impact of the release of a $176,000 deferred tax asset valuation allowance and the pretax loss in the fourth quarter.

(2)			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.

(3)			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.

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). Our revenues in certain markets are also affected by sporting events that cause unusual changes in sales from year to year.