Segment Information

6 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Segment Information

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 unaudited condensed consolidated financial statements.

Below is the financial information related to the Company’s segments (in thousands):

	For the Three Months Ended March 31,				For the Six Months Ended March 31,
	2022		2021		2022		2021
Revenues (from external customers)
Nightclubs	$	48,174	$	30,787	$	94,955	$	55,984
Bombshells	15,333		13,135		30,104		26,141
Other	185		137		469		332
	$	63,692	$	44,059	$	125,528	$	82,457
Income (loss) from operations
Nightclubs	$	19,126	$	10,468	$	37,862	$	18,963
Bombshells	3,468		3,142		6,270		5,859
Other	(34)		(139)		(77)		(214)
General corporate	(5,479)		(3,630)		(11,063)		(8,184)
	$	17,081	$	9,841	$	32,992	$	16,424
Depreciation and amortization
Nightclubs	$	2,206	$	1,413	$	3,753	$	2,737
Bombshells	454		461		883		918
Other	7		36		13		72
General corporate	210		207		422		413
	$	2,877	$	2,117	$	5,071	$	4,140
Capital expenditures
Nightclubs	$	1,662	$	2,201	$	10,890	$	3,331
Bombshells	1,901		3,104		2,205		3,255
Other	359		(2)		548		1
General corporate	218		126		347		131
	$	4,140	$	5,429	$	13,990	$	6,718

	March 31, 2022		September 30, 2021
Total assets
Nightclubs	$	396,560	$	280,561
Bombshells	55,382		52,073
Other	2,418		1,573
General corporate	33,192		30,412
	$	487,552	$	364,619

Excluded from revenues in the table above are intercompany rental revenues of the Nightclubs and Corporate segments for the three months ended March 31, 2022 amounting to $3.2 million and $31,000, respectively, and for the six months ended March 31, 2022 amounting to $6.5 million and $199,000, respectively, and intercompany sales of Robust Energy Drink included in Other segment for the three and six months ended March 31, 2022 amounting to $53,000 and $122,000, respectively. Excluded from revenues in the table above are intercompany rental revenues of the Nightclubs and Corporate segments for the three months ended March 31, 2021 amounting to $2.8 million and $31,000, respectively, and for the six months ended March 31, 2021 amounting to $5.6 million and $141,000, respectively, and intercompany sales of Robust Energy Drink included in Other segment for the three and six months ended March 31, 2021 amounting to $49,000 and $75,000, 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.