Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Sep. 30, 2018 | Nov. 30, 2018 | Mar. 31, 2018 | |
Document And Entity Information | |||
Entity Registrant Name | RCI HOSPITALITY HOLDINGS, INC. | ||
Entity Central Index Key | 935,419 | ||
Document Type | 10-K | ||
Document Period End Date | Sep. 30, 2018 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filer | No | ||
Entity Current Reporting Status | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business Flag | false | ||
Entity Emerging Growth Company | false | ||
Entity Ex Transition Period | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 254,986,999 | ||
Entity Common Stock, Shares Outstanding | 9,704,600 | ||
Trading Symbol | RICK | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,018 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Current assets | ||
Cash and cash equivalents | $ 17,726 | $ 9,922 |
Accounts receivable, net | 7,320 | 3,187 |
Inventories | 2,353 | 2,149 |
Prepaid insurance | 4,910 | 3,826 |
Other current assets | 1,591 | 1,399 |
Assets held for sale | 2,902 | 5,759 |
Total current assets | 36,802 | 26,242 |
Property and equipment, net | 172,403 | 148,410 |
Notes receivable | 2,874 | 4,993 |
Goodwill | 44,425 | 43,866 |
Intangibles, net | 71,532 | 74,424 |
Other assets | 2,530 | 1,949 |
Total assets | 330,566 | 299,884 |
Current liabilities | ||
Accounts payable | 2,825 | 2,147 |
Accrued liabilities | 11,973 | 11,524 |
Current portion of long-term debt | 19,047 | 17,440 |
Total current liabilities | 33,845 | 31,111 |
Deferred tax liability, net | 19,552 | 25,541 |
Long-term debt | 121,580 | 106,912 |
Other long-term liabilities | 1,423 | 1,095 |
Total liabilities | 176,400 | 164,659 |
Commitments and contingencies (Note 10) | ||
Stockholders' equity | ||
Preferred stock, $0.10 par value per share; 1,000 shares authorized; none issued and outstanding | ||
Common stock, $0.01 par value per share; 20,000 shares authorized; 9,719 and 9,719 shares issued and outstanding as of September 30, 2018 and 2017, respectively | 97 | 97 |
Additional paid-in capital | 64,212 | 63,453 |
Retained earnings | 89,740 | 69,195 |
Accumulated other comprehensive income | 220 | |
Total RCIHH stockholders' equity | 154,269 | 132,745 |
Noncontrolling interests | (103) | 2,480 |
Total stockholders' equity | 154,166 | 135,225 |
Total liabilities and stockholders' equity | $ 330,566 | $ 299,884 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2018 | Sep. 30, 2017 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.10 | $ 0.10 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 9,719,000 | 9,719,000 |
Common stock, shares outstanding | 9,719,000 | 9,719,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenues | |||
Total revenues | $ 165,748 | $ 144,896 | $ 134,860 |
Cost of goods sold | |||
Total cost of goods sold (exclusive of items shown separately below) | 22,909 | 20,721 | 20,546 |
Salaries and wages | 44,547 | 40,029 | 37,457 |
Selling, general and administrative | 53,824 | 46,775 | 43,075 |
Depreciation and amortization | 7,722 | 6,920 | 7,328 |
Other charges, net | 8,350 | 7,312 | 5,761 |
Total operating expenses | 137,352 | 121,757 | 114,167 |
Income from operations | 28,396 | 23,139 | 20,693 |
Other income (expenses) | |||
Interest expense | (9,954) | (8,764) | (7,982) |
Interest income | 234 | 266 | 131 |
Income before income taxes | 18,676 | 14,641 | 12,842 |
Income tax expense (benefit) | (3,118) | 6,359 | 2,373 |
Net income | 21,794 | 8,282 | 10,469 |
Net loss (income) attributable to noncontrolling interests | (81) | (23) | 749 |
Net income attributable to RCIHH common shareholders | $ 21,713 | $ 8,259 | $ 11,218 |
Earnings per share | |||
Basic | $ 2.23 | $ 0.85 | $ 1.13 |
Diluted | $ 2.23 | $ 0.85 | $ 1.11 |
Weighted average number of common shares outstanding | |||
Basic | 9,719,000 | 9,731,000 | 9,941,000 |
Diluted | 9,719,000 | 9,743,000 | 10,229,000 |
Dividends per share | $ 0.12 | $ 0.12 | $ 0.09 |
Sales of Alcoholic Beverages [Member] | |||
Revenues | |||
Total revenues | $ 69,120 | $ 60,439 | $ 57,216 |
Cost of goods sold | |||
Total cost of goods sold (exclusive of items shown separately below) | 14,327 | 13,114 | 12,624 |
Sales of Food and Merchandise [Member] | |||
Revenues | |||
Total revenues | 22,433 | 18,256 | 17,900 |
Cost of goods sold | |||
Total cost of goods sold (exclusive of items shown separately below) | 8,133 | 7,398 | 6,810 |
Service Revenues [Member] | |||
Revenues | |||
Total revenues | 64,104 | 58,132 | 51,276 |
Other [Member] | |||
Revenues | |||
Total revenues | 10,091 | 8,069 | 8,468 |
Service and Other [Member] | |||
Cost of goods sold | |||
Total cost of goods sold (exclusive of items shown separately below) | $ 449 | $ 209 | $ 1,112 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Consolidated Statements Of Comprehensive Income | |||
Net income | $ 21,794 | $ 8,282 | $ 10,469 |
Amount reclassified from accumulated other comprehensive income | (109) | ||
Other comprehensive income: | |||
Unrealized holding gain on available-for-sale securities, net of tax of $85 in 2018 | 220 | ||
Comprehensive income | 22,014 | 8,282 | 10,360 |
Comprehensive loss (income) attributable to noncontrolling interests | (81) | (23) | 749 |
Comprehensive income attributable to RCI Hospitality Holdings, Inc. | $ 21,933 | $ 8,259 | $ 11,109 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) $ in Thousands | 12 Months Ended |
Sep. 30, 2018USD ($) | |
Consolidated Statements Of Comprehensive Income | |
Gain on available-for-sale securities, net of tax | $ 85 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] | Treasury Stock [Member] | Noncontrolling Interests [Member] | Total |
Balance at Sep. 30, 2015 | $ 103 | $ 69,729 | $ 51,750 | $ 109 | $ 5,863 | $ 127,554 | |
Balance, shares at Sep. 30, 2015 | 10,285,000 | ||||||
Purchase of treasury shares | $ (7,311) | (7,311) | |||||
Purchase of treasury shares, shares | (747,000) | ||||||
Canceled treasury shares | $ (8) | (7,303) | $ 7,311 | ||||
Canceled treasury shares, shares | (747,000) | 747,000 | |||||
Vesting of restricted stock | $ 1 | (1) | |||||
Vesting of restricted stock, shares | 96,000 | ||||||
Common stock issued for debt and interest | $ 1 | 1,267 | 1,268 | ||||
Common stock issued for debt and interest, shares | 125,000 | ||||||
Warrants exercised | 500 | 500 | |||||
Warrants exercised, shares | 49,000 | ||||||
Stock-based compensation | 360 | 360 | |||||
Payment of dividends | (862) | (862) | |||||
Payments to noncontrolling interests | (217) | (217) | |||||
Divestiture in Drink Robust | (2,313) | (2,313) | |||||
Change in marketable securities | (109) | (109) | |||||
Net income (loss) | 11,218 | (749) | 10,469 | ||||
Balance at Sep. 30, 2016 | $ 97 | 64,552 | 62,106 | 2,584 | 129,339 | ||
Balance, shares at Sep. 30, 2016 | 9,808,000 | ||||||
Purchase of treasury shares | $ (1,099) | (1,099) | |||||
Purchase of treasury shares, shares | (89,000) | ||||||
Canceled treasury shares | (1,099) | $ 1,099 | |||||
Canceled treasury shares, shares | (89,000) | 89,000 | |||||
Payment of dividends | (1,170) | (1,170) | |||||
Payments to noncontrolling interests | (215) | (215) | |||||
Divestiture in Drink Robust | 88 | 88 | |||||
Net income (loss) | 8,259 | 23 | 8,282 | ||||
Balance at Sep. 30, 2017 | $ 97 | 63,453 | 69,195 | 2,480 | 135,225 | ||
Balance, shares at Sep. 30, 2017 | 9,719,000 | ||||||
Payment of dividends | (1,168) | (1,168) | |||||
Payments to noncontrolling interests | (180) | (180) | |||||
Change in marketable securities | 220 | 220 | |||||
Equity impact of additional investment in TEZ | 759 | (2,484) | (1,725) | ||||
Net income (loss) | 21,713 | 81 | 21,794 | ||||
Balance at Sep. 30, 2018 | $ 97 | $ 64,212 | $ 89,740 | $ 220 | $ (103) | $ 154,166 | |
Balance, shares at Sep. 30, 2018 | 9,719,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 21,794 | $ 8,282 | $ 10,469 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 7,722 | 6,920 | 7,328 |
Deferred tax expense (benefit) | (6,775) | 2,273 | 1,143 |
Loss (gain) on sale of assets | 2,162 | (838) | 388 |
Impairment of assets | 4,736 | 7,639 | 3,492 |
Amortization of debt issuance costs | 560 | 218 | 455 |
Gain on insurance | (20) | ||
Gain on settlement of patron tax | (102) | ||
Gain on sale of marketable securities | (116) | ||
Deferred rent expense | 203 | 272 | 15 |
Stock-based compensation expense | 360 | ||
Debt prepayment penalty | 543 | 75 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | (3,622) | 878 | (3,986) |
Inventories | (199) | (19) | (124) |
Prepaid expenses and other assets | (2,589) | (1,526) | (18) |
Accounts payable and accrued liabilities | 1,254 | (2,978) | 3,625 |
Net cash provided by operating activities | 25,769 | 21,094 | 23,031 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Proceeds from sale of assets | 811 | 2,145 | 3,427 |
Proceeds from sale of marketable securities | 621 | ||
Proceeds from notes receivable | 127 | 107 | |
Proceeds from insurance | 20 | ||
Additions to property and equipment | (25,263) | (11,249) | (28,148) |
Acquisition of businesses, net of cash acquired | (2,034) | (9,527) | |
Net cash used in investing activities | (26,339) | (18,524) | (24,100) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from long-term debt | 84,233 | 12,399 | 32,049 |
Payments on long-term debt | (72,830) | (13,080) | (19,159) |
Exercise of stock options and warrants | 500 | ||
Purchase of treasury stock | (1,099) | (7,311) | |
Payment of dividends | (1,168) | (1,170) | (862) |
Payment of loan origination costs | (1,139) | (735) | (624) |
Debt prepayment penalty | (543) | (75) | |
Distribution to noncontrolling interests | (179) | (215) | (217) |
Net cash provided by (used in) financing activities | 8,374 | (3,975) | 4,376 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 7,804 | (1,405) | 3,307 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 9,922 | 11,327 | 8,020 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 17,726 | 9,922 | 11,327 |
CASH PAID DURING PERIOD FOR: | |||
Interest paid, net of amounts capitalized | 9,685 | 8,081 | 7,719 |
Income taxes | $ 5,832 | $ 4,185 | $ 1,914 |
Non-cash investing and financing transactions: | |||
Issue of shares of common stock for debt and interest Number of shares | 125,000 | ||
Issue of shares of common stock for debt and interest Value of shares | $ 1,268 | ||
Debt incurred with seller in connection with acquisition of businesses | 1,000 | 20,552 | |
Notes receivable received as proceeds from sale of assets | 4,800 | ||
Unrealized gain on marketable securities | 305 | ||
Note payable reduction from sale proceeds of property | 1,500 | ||
Refinanced long-term debt | 8,354 | 8,000 | |
Net increase in notes payable from trade-in of aircraft | $ 5,063 |
Nature of Business
Nature of Business | 12 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business | 1. Nature of Business RCI Hospitality Holdings, Inc. (the “Company”) is a holding company incorporated in Texas in 1994. Through its subsidiaries, the Company currently owns and operates establishments that offer live adult entertainment, restaurant, and/or bar operations. These establishments are located in Houston, Austin, San Antonio, Dallas, Fort Worth, Odessa, Lubbock, Longview, Tye, Edinburg, El Paso, Harlingen, Lubbock and Beaumont, Texas, as well as Minneapolis, Minnesota; Philadelphia, Pennsylvania; Charlotte, North Carolina; New York, New York; Pembroke Park and Miami Gardens, Florida; Phoenix, Arizona; Sulphur, Louisiana; and Washington Park and Kappa, Illinois. The Company also owns and operates media businesses for adults. The Company’s corporate offices are located in Houston, Texas. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Accounting The accounts are maintained and the consolidated financial statements have been prepared using the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Principles of Consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries in which a controlling interest is owned. Intercompany accounts and transactions have been eliminated in consolidation. Fiscal Year Our fiscal year ends on September 30. References to years 2018, 2017, and 2016 are for fiscal years ended September 30, 2018, 2017, and 2016, respectively. Our fiscal quarters chronologically end on December 31, March 31, June 30 and September 30. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts in the consolidated financial statements and accompanying notes. Estimates and assumptions are based on historical experience, forecasted future events and various other assumptions that we believe to be reasonable under the circumstances. Estimates and assumptions may vary under different circumstances and conditions. We evaluate our estimates and assumptions on an ongoing basis. We believe the accounting policies below are critical in the portrayal of our financial condition and results of operations. Cash and Cash Equivalents The Company considers as cash equivalents all highly liquid investments with a maturity of three months or less when purchased. The Company maintains deposits in several financial institutions, which may at times exceed amounts covered by insurance provided by the U.S. Federal Deposit Insurance Corporation (“FDIC”). The Company has not experienced any losses related to amounts in excess of FDIC limits. Accounts and Notes Receivable Accounts receivable for club and restaurant operations are primarily comprised of credit card charges, which are generally converted to cash in two to five days after a purchase is made. The media division’s accounts receivable are primarily comprised of receivables for advertising sales and Expo registration. Accounts receivable also include employee advances, construction advances, and other miscellaneous receivables. Long-term notes receivable, which have original maturity of more than one year, include consideration from the sale of certain investment interest entities and real estate. The Company recognizes interest income on notes receivable based on the terms of the agreement and based upon management’s evaluation that the notes receivable and interest income will be collected. The Company recognizes allowances for doubtful accounts or notes when, based on management judgment, circumstances indicate that accounts or notes receivable will not be collected. Inventories Inventories include alcoholic beverages, energy drinks, food, and Company merchandise. Inventories are carried at the lower of cost (on a first-in, first-out (“FIFO”) basis), or market. Property and Equipment Property and equipment are stated at cost. Provisions for depreciation and amortization are made using straight-line rates over the estimated useful lives of the related assets, and the shorter of useful lives or terms of the applicable leases for leasehold improvements. Buildings have estimated useful lives ranging from 29 to 40 years. Furniture and equipment have estimated useful lives of 5 to 7 years, while leasehold improvements are depreciated at the shorter of the lease term or estimated useful life. Expenditures for major renewals and betterments that extend the useful lives are capitalized. Expenditures for normal maintenance and repairs are expensed as incurred. The cost of assets sold, retired or abandoned and the related accumulated depreciation are written off from the accounts, and any gains or losses are charged or credited in the accompanying consolidated statement of income of the respective period. Interest expense during site construction from related debt is capitalized, which amounted to $319,000 in fiscal 2018, $43,000 in fiscal 2017, and $59,000 in fiscal 2016. Goodwill and Other Intangible Assets Goodwill and other intangible assets with indefinite lives are not amortized but reviewed on an annual basis for impairment. Definite-lived intangible assets are amortized on a straight-line basis over their estimated lives. The costs of transferable licenses purchased through open markets are capitalized as indefinite-lived intangible assets. The costs of obtaining non-transferable licenses that are directly issued by local government agencies are expensed as incurred. Annual license renewal fees are expensed over their renewal term. Goodwill and other intangible assets that have indefinite useful lives are tested annually for impairment during our fourth fiscal quarter and are tested for impairment more frequently if events and circumstances indicate that the asset might be impaired. An impairment loss is recognized to the extent that the carrying amount exceeds the asset’s fair value. For our goodwill impairment review, we have the option to first perform a qualitative assessment to determine if it is more likely than not that the fair value of the reporting unit is less than its carrying value. This assessment is based on several factors, including industry and market conditions, overall financial performance, including an assessment of cash flows in comparison to actual and projected results of prior periods. If it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying value based on our qualitative analysis, or if we elect to skip this step, we perform a Step 1 quantitative analysis to determine the fair value of the reporting unit. The fair value is determined using market-related valuation models, including earnings multiples, discounted cash flows, and comparable asset market values. We recognize goodwill impairment in the amount that the carrying value of the reporting unit exceeds the fair value of the reporting unit, not to exceed the amount of goodwill allocated to the reporting unit, based on the results of our Step 1 analysis. For the year ended September 30, 2017, we identified four reporting units that were impaired and recognized a goodwill impairment loss totaling $4.7 million. See Note 15. No goodwill impairment was recorded in fiscal 2018 and 2016. For indefinite-lived intangibles, specifically SOB licenses, we determine fair value by estimating the multiperiod excess earnings of the asset. For indefinite-lived tradename, we determine fair value by using the relief from royalty method. The fair value is then compared to the carrying value and an impairment charge is recognized by the amount by which the carrying amount exceeds the fair value of the asset. We recorded impairment charges for SOB licenses amounting to $3.1 million in 2018 related to three clubs, $1.4 million in 2017 related to two clubs, and $2.1 million in 2016 related to one club, which are included in other charges, net in the consolidated statements of income. See Notes 3 and 15. Impairment of Long-Lived Assets The Company reviews long-lived assets, such as property, plant, and equipment, and intangible assets subject to amortization, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. These events or changes in circumstances include, but are not limited to, significant underperformance relative to historical or projected future operating results, significant changes in the manner of use of the acquired assets or the strategy for the overall business, and significant negative industry or economic trends. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the asset group to the estimated undiscounted cash flows over the estimated remaining useful life of the primary asset included in the asset group. If the asset group is not recoverable, the impairment loss is calculated as the excess of the carrying value over the fair value. We define our asset group as an operating club or restaurant location, which is also our reporting unit or the lowest level for which cash flows can be identified. Assets to be disposed of are separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell and are no longer depreciated. For assets held for sale, we measure fair value using an estimation based on quoted prices for similar items in active or inactive markets (level 2) developed using observable data. The assets and liabilities of a disposal group classified as held for sale are presented separately in the appropriate asset and liability sections of the balance sheet. During the fourth quarter of fiscal 2018, the Company impaired one club and one Bombshells for a total of $1.6 million; during the fourth quarter of 2017, the Company impaired one club for $385,000; and during the fourth quarter of fiscal 2016, the Company recognized a loss on disposal on one property held for sale in Fort Worth, Texas for $1.4 million, which are included in other charges, net in the consolidated statements of income. See Notes 3 and 15. Fair Value of Financial Instruments The Company calculates the fair value of its assets and liabilities which qualify as financial instruments and includes this additional information in the notes to consolidated financial statements when the fair value is different than the carrying value of these financial instruments. The estimated fair value of accounts receivable, accounts payable and accrued liabilities approximate their carrying amounts due to the relatively short maturity of these instruments. The carrying value of notes receivable and short and long-term debt also approximates fair value since these instruments bear market rates of interest. None of these instruments are held for trading purposes. Comprehensive Income Comprehensive income is the total of net income or loss and all other changes in net assets arising from non-owner sources, which are referred to as items of other comprehensive income. An analysis of changes in components of accumulated other comprehensive income is presented in the consolidated statements of comprehensive income. Revenue Recognition The Company recognizes revenue from the sale of alcoholic beverages, food and merchandise, service and other revenues at the point-of-sale upon receipt of cash, check, or credit card charge, net of discounts and promotional allowances. Sales and liquor taxes collected from customers and remitted to governmental authorities are presented on a net basis in the accompanying consolidated statements of income. Revenues from the sale of magazines and advertising content are recognized when the issue is published and shipped. Revenues and external expenses related to the Company’s annual Expo convention are recognized upon the completion of the convention. Other rental revenues are recognized when earned. Advertising and Marketing Advertising and marketing expenses are primarily comprised of costs related to public advertisements and giveaways, which are used for promotional purposes. Advertising and marketing expenses are expensed as incurred and are included in selling, general and administrative expenses in the accompanying consolidated statements of income. See Note 3. Income Taxes The Company and its subsidiaries are subject to U.S. federal income tax and income taxes imposed in the state and local jurisdictions where we operate our businesses. Deferred income taxes are determined using the liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. In addition, a valuation allowance is established to reduce any deferred tax asset for which it is determined that it is more likely than not that some portion of the deferred tax asset will not be realized. U.S. GAAP creates a single model to address accounting for uncertainty in tax positions by prescribing a minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. We recognize penalties related to unrecognized tax benefits as a component of selling, general and administrative expenses, and recognize interest accrued related to unrecognized tax benefits in interest expense. Investments Investments in companies in which the company has a 20% to 50% interest are accounted for using the equity method, which are carried at cost and adjusted for the Company’s proportionate share of their undistributed earnings or losses. Investments in companies in which the Company owns less than a 20% interest, or where the Company does not exercise significant influence, are accounted for at cost and reviewed for any impairment. Cost and equity method investments are included in other assets in the Company’s consolidated balance sheets. The Company sold 31% of Drink Robust on September 29, 2016, retaining 20%. Because the Company has no ability to direct the management of the investee company or exert significant influence, the investment is being accounted for at cost beginning on the date of sale. The carrying value of the cost-method investment in Robust was $1.2 million as of September 30, 2016. During the fourth quarter of fiscal 2017, we determined our investment in Drink Robust was impaired and recognized an other-than-temporary impairment totaling $1.2 million which brought our carrying value of this investment to zero. In relation to the reacquisition of Drink Robust in 2018, we have consolidated the operations of Drink Robust and eliminated the investment in consolidation. See Note 13. Earnings Per Common Share Basic earnings per share includes no dilution and is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of the Company. Potential common stock shares consist of shares that may arise from outstanding dilutive common restricted stock, stock options and warrants (the number of which is computed using the “treasury stock method”) and from outstanding convertible debentures (the number of which is computed using the “if converted method”). Diluted earnings per share (“EPS”) considers the potential dilution that could occur if the Company’s outstanding common restricted stock, stock options, warrants and convertible debentures were converted into common stock that then shared in the Company’s earnings or losses (as adjusted for interest expense, that would no longer occur if the debentures were converted). Net earnings applicable to common stock and the weighted average number of shares used for basic and diluted earnings (loss) per share computations are summarized in the table that follows (in thousands, except per share data): For the Year Ended September 30, 2018 2017 2016 Numerator - Net income attributable to RCIHH shareholders - basic $ 21,713 $ 8,259 $ 11,218 Adjustment to net income from assumed conversion of debentures - 5 153 Adjusted net income attributable to RCIHH shareholders - diluted $ 21,713 $ 8,264 $ 11,371 Denominator - Weighted average number of common shares outstanding - basic 9,719 9,731 9,941 Effect of potentially dilutive restricted stock, warrants and options - - 60 Effect of potentially dilutive convertible debentures - 12 228 Adjusted weighted average number of common shares outstanding - diluted 9,719 9,743 10,229 Basic earnings per share $ 2.23 $ 0.85 $ 1.13 Diluted earnings per share $ 2.23 $ 0.85 $ 1.11 (1) Represents interest expense on dilutive convertible securities that would not occur if they were assumed converted. (2) All outstanding warrants and options were considered for the EPS computation. Additional shares for options, warrants and debentures amounting to zero and 72,400 for the year ended September 30, 2017 and, 2016 were not considered since they would be antidilutive. Convertible debentures (principal and accrued interest) outstanding at September 30, 2018, 2017, and 2016 totaling $0, $0, and $0.5 million, respectively, were convertible into common stock at prices ranging from $10.00 to $12.50 in fiscal year 2016. Convertible debentures amounting to $0, $0.9 million, and $0.5 million were dilutive in 2018, 2017, and 2016, respectively. Stock Options The Company recognizes all employee stock-based compensation as a cost in the consolidated financial statements. Equity-classified awards are measured at the grant date fair value of the award and recognized as expense over their requisite service period. The Company estimates grant date fair value using the Black-Scholes option-pricing model. The critical estimates are volatility, expected life and risk-free rate. At September 30, 2018 and 2017, the Company has no stock options outstanding. Legal and Other Contingencies The Company records a liability when it is probable that a loss has been incurred and the amount is reasonably estimable. There is significant judgment required in both the probability determination and as to whether an exposure can be reasonably estimated. In the opinion of management, there was not at least a reasonable possibility that we may have incurred a material loss, or a material loss in excess of a recorded accrual, with respect to loss contingencies for asserted legal and other claims. The Company recognizes legal fees and expenses, including those related to legal contingencies, as incurred. Generally, the Company recognizes gain contingencies when they are realized or when all related contingencies have been resolved. Fair Value Accounting The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels. U.S. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: ● Level 1 – Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 – Include other inputs that are directly or indirectly observable in the marketplace. ● Level 3 – Unobservable inputs which are supported by little or no market activity. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company classifies its marketable securities as available-for-sale, which are reported at fair value. Unrealized holding gains and losses, net of the related income tax effect, if any, on available-for-sale securities are excluded from income and are reported as accumulated other comprehensive income in stockholders’ equity. Realized gains and losses from securities classified as available for-sale are included in comprehensive income. The Company measures the fair value of its marketable securities based on quoted prices for identical securities in active markets, or Level 1 inputs. Available-for-sale securities, which are included in other assets in the consolidated balance sheets, had a balance of $760,000 and $80,000 as of September 30, 2018 and 2017. In accordance with U.S. GAAP, the Company reviews its marketable securities to determine whether a decline in fair value of a security below the cost basis is other than temporary. Should the decline be considered other than temporary, the Company writes down the cost basis of the security and include the loss in current earnings as opposed to an unrealized holding loss. No losses or other-than-temporary impairments in our marketable securities portfolio were recognized during the years ended September 30, 2018, 2017, and 2016. Assets and Liabilities that are Measured at Fair Value on a Nonrecurring Basis Assets and liabilities that are measured at fair value on a nonrecurring basis relate primarily to tangible property and equipment, goodwill and other intangible assets, which are remeasured when the derived fair value is below carrying value in the consolidated balance sheets. For these assets, the Company does not periodically adjust carrying value to fair value except in the event of impairment. If it is determined that impairment has occurred, the carrying value of the asset is reduced to fair value and the difference is included in other charges, net in the consolidated statements of income. Assets and liabilities that are measured at fair value on a nonrecurring basis are as follows (in thousands): Fair Value at Reporting Date Using Quoted Prices in Significant Active Markets for Significant Other Unobservable September 30, Identical Asset Observable Inputs Inputs Description 2018 (Level 1) (Level 2) (Level 3) Property and equipment, net $ 141 $ - $ - $ 141 Indefinite-lived intangibles 4,618 - - 4,618 Notes receivable 0 - - 0 Goodwill 495 - - 495 Other assets 760 760 - - Fair Value at Reporting Date Using Quoted Prices in Significant Active Markets for Significant Other Unobservable September 30, Identical Asset Observable Inputs Inputs Description 2017 (Level 1) (Level 2) (Level 3) Goodwill $ 4,572 $ - $ - $ 4,572 Property and equipment, net 4,678 - 4,678 - Indefinite-lived intangibles 25,740 - - 25,740 Definite-lived intangibles 600 - - 600 Unrealized Gain (Impairments) Recognized Years Ended September 30, Description 2018 2017 2016 Goodwill $ - $ (4,697 ) $ - Property and equipment, net (1,615 ) (385 ) - Indefinite-lived intangibles (3,121 ) (1,401 ) (2,092 ) Assets held for sale - - (1,400 ) Other assets 305 (1,156 ) - Impact of Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In January 2017, the FASB issued ASU No. 2017-01, Business Combination (Topic 805): Clarifying the Definition of a Business Revenue from Contracts with Customers In May 2017, the FASB issued ASU No. 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting In February 2018, the FASB issued ASU 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. Income Statement—Reporting Comprehensive Income In June 2018, the FASB issued ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement |
Selected Account Information
Selected Account Information | 12 Months Ended |
Sep. 30, 2018 | |
Selected Account Information - Schedule Of Selling General And Administrative Expenses | |
Selected Account Information | 3. Selected Account Information The components of accounts receivable, net are as follows (in thousands): September 30, 2018 2017 Credit card receivables $ 2,273 $ 1,955 Income tax refundable 2,137 - ATM-in-transit 933 699 Other 1,977 533 $ 7,320 $ 3,187 The components of accrued liabilities are as follows (in thousands): September 30, 2018 2017 Insurance $ 3,807 $ 3,160 Payroll and related costs 2,293 1,889 Property taxes 1,796 1,270 Sales and liquor taxes 1,883 990 Patron tax 532 801 Lawsuit settlement - 295 Unearned revenues 134 196 Income taxes - 549 Other 1,528 2,374 $ 11,973 $ 11,524 The components of selling, general and administrative expenses are as follows (in thousands): Years Ended September 30, 2018 2017 2016 Taxes and permits $ 9,545 $ 8,026 $ 8,089 Advertising and marketing 7,536 6,704 5,374 Supplies and services 5,344 4,873 4,815 Insurance 5,473 4,006 3,575 Rent 3,720 3,258 3,278 Legal 3,586 3,074 3,197 Utilities 2,969 2,824 2,871 Charge cards fees 3,244 2,783 2,252 Security 2,617 2,251 2,042 Accounting and professional fees 2,944 2,159 1,286 Repairs and maintenance 2,184 2,091 2,088 Other 4,662 4,726 4,208 $ 53,824 $ 46,775 $ 43,075 The components of other charges, net are as follows (in thousands): Years Ended September 30, 2018 2017 2016 Impairment of assets $ 4,736 $ 7,639 $ 3,492 Settlement of lawsuits 1,669 317 1,881 Loss (gain) on sale of assets 1,965 (542 ) 388 Gain on insurance (20 ) - - Gain on settlement of patron tax - (102 ) - $ 8,350 $ 7,312 $ 5,761 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | 4. Property and Equipment Property and equipment consisted of the following (in thousands): September 30, 2018 2017 Buildings and land $ 149,683 $ 122,996 Equipment 34,572 30,107 Leasehold improvements 30,414 31,969 Furniture 8,739 8,612 Total property and equipment 223,408 193,684 Less accumulated depreciation (51,005 ) (45,274 ) Property and equipment, net $ 172,403 $ 148,410 Included in buildings and leasehold improvements above are construction-in-progress amounting to $6.4 million and $1.6 million as of September 30, 2018 and 2017, respectively, which are mostly related to Bombshells projects. Depreciation expense was approximately $7.5 million, $6.7 million, and $6.6 million for fiscal years 2018, 2017, and 2016, respectively. |
Assets Held for Sale
Assets Held for Sale | 12 Months Ended |
Sep. 30, 2018 | |
Assets Held For Sale | |
Assets Held for Sale | 5. Assets Held for Sale During the fourth quarter of fiscal 2016, the Company had decided to offer six real estate properties for sale. The aggregate estimated fair value of the properties less cost to sell as of September 30, 2016 was approximately $7.7 million and reclassified to assets held for sale in the Company’s consolidated balance sheet. During the quarter ended March 31, 2017, the Company sold one of the properties held for sale for $2.2 million, recognizing a $116,000 loss. During the quarter ended June 30, 2017, the Company sold another property held for sale for $1.5 million, recognizing a $0.9 million gain. At the end of the quarter ended June 30, 2017, Company management decided to close an underperforming club in Dallas. The Company wrote off the balance of goodwill for that location and recorded an impairment charge amounting to $1.4 million, which is included in other charges, net in our consolidated statements of income for the three months ended June 30, 2017. The Company also recorded in assets held for sale the carrying value of the property for sale consisting principally of land and building amounting to $5.2 million, which is lower than fair value less cost to sell. At the end of the quarter ended September 30, 2017, two properties classified as held for sale with a carrying value of $4.3 million were reclassified to property and equipment, net in the consolidated balance sheet. At September 30, 2017, we determined the assets no longer met the criteria for held for sale as the sale of one property was no longer likely to be completed within one year and that the other property was no longer available for immediate sale in its present condition due to a lease executed during the period. The assets were measured at the carrying value as adjusted for depreciation which was lower than the fair value at the date reclassified. During the quarter ended December 31, 2017, the Company sold one of the properties held for sale for $675,000, recognizing a gain of $481,000. During the quarter ended June 30, 2018, the Company decided to offer for sale a real estate property in Dallas, Texas, which was a location of a recently closed club, with an estimated fair value of $2.0 million. During the quarter ended September 30, 2018, the Company reclassified two properties held for sale with an aggregate carrying value of $7.2 million into held and used property and equipment, net in the consolidated balance sheet as of September 30, 2018. Also, during the quarter ended September 30, 2018, the Company decided to offer four real estate properties for sale, with an aggregate fair value less cost to sell of approximately $2.5 million. The Company expects the properties held for sale, which are primarily comprised of land and buildings, to be sold within 12 months through property listings by our real estate brokers. The assets held for sale do not have liabilities associated with them that need to be directly settled from the proceeds in the event of a transaction. The gain or loss on the sale of these properties held for sale is included in other charges, net in our consolidated statements of income. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 6. Goodwill and Other Intangible Assets Goodwill and other intangible assets consisted of the following (in thousands): September 30, 2018 2017 Indefinite useful lives: Goodwill $ 44,425 $ 43,866 Licenses 67,523 70,644 Tradename 2,215 2,215 114,163 116,725 Amortization Period Definite useful lives: Discounted leases 18 & 6 years 108 116 Non-compete agreements 5 years 588 681 Software 5 years 834 768 Distribution agreement 3 years 264 - 1,794 1,565 Total goodwill and other intangible assets $ 115,957 $ 118,290 2018 2017 Definite- Lived Intangibles Indefinite- Lived Intangibles Goodwill Definite- Lived Intangibles Indefinite- Lived Intangibles Goodwill Beginning balance $ 1,565 $ 72,859 $ 43,866 $ 917 $ 51,849 $ 45,847 Intangibles acquired 483 - 559 865 22,411 2,716 Impairment - (3,121 ) - - (1,401 ) (4,697 ) Amortization (254 ) - - (217 ) - - Ending balance $ 1,794 $ 69,738 $ 44,425 $ 1,565 $ 72,859 $ 43,866 As of September 30, 2018 and 2017, the accumulated impairment balance of indefinite-lived intangibles was $5.9 million and $6.9 million, respectively, while the accumulated impairment balance of goodwill was $3.9 million and $5.4 million, respectively. Future amortization expense related to definite-lived intangible assets that are subject to amortization at September 30, 2018 is: 2019 - $466,000; 2020 - $443,000; 2021 - $367,000; 2022 - $261,000; 2023 - $186,000; and thereafter - $71,000. Indefinite-lived intangible assets consist of sexually oriented business licenses and tradename, which were obtained as part of acquisitions. These licenses are the result of zoning ordinances, thus are valid indefinitely, subject to filing annual renewal applications, which are done at minimal costs to the Company. The discounted cash flow method of income approach was used in calculating the value of these licenses in a business combination, while the relief from royalty method was used in calculating the value of tradenames. During the fiscal year ended September 30, 2018, the Company recognized a $3.1 million impairment related to three clubs’ SOB licenses. During the year ended September 30, 2017, the Company recognized an impairment loss of $4.7 million related to the goodwill of four reporting units, including one held for sale, as well as an impairment loss of $1.4 million related to two locations’ SOB licenses. The Company impaired one reporting unit during the year ended September 30, 2016 amounting to $2.1 million for indefinite-lived intangibles. See Note 15. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 7. Long-term Debt Long-term debt consisted of the following (in thousands): September 30, 2018 2017 Notes payable at 10-11%, mature August 2022 and December 2024 * $ - $ 2,358 Note payable at 7%, matures December 2019 * - 95 Notes payable at 5.5%, matures January 2023 * 1,071 1,157 Notes payable at 5.5%, matures January 2023 and January 2022 * - 4,510 Note payable refinanced at 6.25%, matures July 2018 * - 1,120 Note payable at 9.5%, matures August 2024 ** - 6,941 Notes payable at 9.5%, mature September 2024 * - 6,423 Notes payable at 5-7%, mature from 2018 to 2028 * - 1,679 7.45% note payable collateralized by aircraft, matures January 2019 - 2,740 Non-interest-bearing debt to State of Texas, matures May 2022, interest imputed at 9.6% 4,470 5,613 Note payable at 6.5%, matures January 2020 * - 4,484 Note payable at 6%, matures January 2019 * - 504 Notes payable at 5.5%, matures May 2020 * - 5,320 Note payable at 6%, matures May 2020 * - 1,037 Note payable at 5.25%, matures December 2024 * - 1,777 Note payable at 5.45%, matures July 2020 * 10,258 10,620 Note payable at the greater of 2% above prime or 5% (6.25% at September 30, 2017), matures October 2025 * - 4,303 Note payable at 5%, matures January 2026 * - 9,672 Note payable at 5.25%, matures March 2037 * - 4,651 Note payable at 6.25%, matures February 2018 * - 1,894 Note payable at 5.95%, matures August 2021 * 7,544 8,267 Note payable at 12%, matures October 2021 ** 6,219 9,671 Note payable at 4.99%, matures April 2037, collateralized by aircraft 912 941 Notes payable at 12%, mature May 2020 ** 2,940 5,440 Note payable at 5%, matures May 2018 (amended to 8% interest rate and May 2019 maturity) ** 3,025 5,000 Note payable at 8%, matures May 2029 ** 14,464 15,291 Note payable at 5%, matures May 2038 * - 3,441 Note payable initially at 5.75%, matures December 2027 * 58,826 - Note payable at 5.95%, matures December 2032 6,877 - Note payable at 5%, matures August 2029 * 4,257 - Note payable at 5%, matures April 2020 * 3,079 - Note payable initially at prime plus 0.5% with a 5.5% floor, matures September 2030 * 960 - Note payable at 8%, matures May 2023 * 945 - Note payable at 5.95%, matures August 2039 * 3,168 - Note payable at 12%, matures August 2021 ** 4,000 - Note payable at 9%, matures September 2028 * 1,350 - Note payable at 6.1%, matures September 2019 * 1,500 - Note payable at 5.95%, matures September 2023 * 1,550 - Note payable at 7%, matures May 2019 ** 5,000 - Total debt 142,415 124,949 Less unamortized debt issuance costs (1,788 ) (597 ) Less current portion (19,047 ) (17,440 ) Total long-term debt $ 121,580 $ 106,912 * Collateralized by real estate ** Collateralized by stock in subsidiary Following is a summary of long-term debt at September 30 (in thousands): 2018 2017 Secured by real estate $ 94,509 $ 73,312 Secured by stock in subsidiary 35,648 42,343 Secured by other assets 7,788 3,681 Unsecured 4,470 5,613 $ 142,415 $ 124,949 In April 2010, the Company acquired the real estate for the club in Austin, Texas, formerly known as Rick’s Cabaret. In connection with the purchase, the Company executed a note to the seller amounting to $2.2 million. The note was collateralized by the real estate and was payable in monthly installments through April 2025 of $19,774, including principal and interest at the prime rate plus 4.5% with a minimum rate of 7%. The Company refinanced this debt in 2013 with a note of $1.5 million, payable in monthly installments of $15,090 through July 2018, including principal and interest at 6.25%. This note has been fully paid in relation to the first note of the New Loan, as discussed below. In connection with the acquisition of Silver City in January 2012, the Company executed notes to the seller in the amount of $ 1.5 million. The notes are payable over eleven years at $12,256 per month including interest and have an adjustable interest rate of 5.5%. The rate adjusts to prime plus 2.5% in the 61st month, not to exceed 9%. In the same transaction, the Company also acquired the related real estate and executed notes to the seller for $6.5 million. The notes are also payable over eleven years at $53,110 per month including interest and have the same adjustable interest rate of 5.5%. The real estate notes, with original principal of $6.5 million, has been fully paid in relation to the first note of the New Loan, as discussed below. As consideration for the purchase of nine operating adult cabarets and two other licensed location under development at that time (collectively, the “Foster Clubs”), a subsidiary paid to the sellers at closing $3.5 million cash and $22.0 million pursuant to a secured promissory note (the “Club Note”). The Club Note bears interest at the rate of 9.5% per annum, is payable in 144 equal monthly installments of $ 256,602 per month and is secured by the assets purchased from the Companies. This note has been fully paid in relation to the first note of the New Loan, as discussed below. In connection with the acquisition of the Foster Clubs, as explained above, the Company’s wholly owned subsidiary, Jaguars Holdings, Inc. (“JHI”), entered into a Commercial Contract (the “Real Estate Agreement”), which agreement provided for JHI to purchase the real estate where the Foster Clubs are located. The transactions contemplated by the Real Estate Agreement closed on October 16, 2012. The purchase price of the real estate was $10.1 million (discounted to $9.6 million as explained below) and was paid with $350,000 in cash, $9.1 million in mortgage notes, and an agreement to make a one-time payment of $650,000 in twelve years that bears no interest. The note bears interest at the rate of 9.5%, is payable in 143 equal monthly installments and is secured by the real estate properties. The Company has recorded a debt discount of $431,252 related to the one-time payment of $650,000. This note has been fully paid in relation to the first note of the New Loan, as discussed below. The Club Note from the Jaguars acquisition also provides that in the event any regulatory or administrative authority seeks to enforce or attempts to collect any tax or obligation or liability that may be due pursuant to the Texas Patron Tax (sometimes referred to as the “Pole Tax”) or related legislation, then the then outstanding principal amount of the Club Note, as of the date the tax is enforced, will immediately be reduced by an amount calculated by multiplying 1,200,000 by the dollar amount of the per-person tax implemented (the “Reduction Amount”). The Reduction Amount cannot exceed $6.0 million. By way of example, if exactly two years after closing, a $2.00 per person tax is implemented and enforced, the Reduction Amount would be $2.4 million and the then principal amount of the Club Note would be reduced $2.4 million. The Texas Patron Tax is currently enacted to be $5 per person which equates to a $6.0 million Reduction Amount. The State of Texas has demanded payment and this provision was invoked in July 2014 and the Company recorded a gain of $6 million, less related debt discount. During the year ended September 30, 2013, the Company acquired four parcels of real estate at a cost aggregating $3,230,000 and incurred debt aggregating $2.6 million in connection therewith. The notes bear interest at rates ranging from 5 - 7% and are payable $25,660 monthly, including principal and interest. The notes mature from 2018 to 2028. These notes have been fully paid in relation to the first note of the New Loan, as discussed below. In December 2013, the Company borrowed $3.6 million from a lender. The funds were used to purchase an aircraft. The debt bears interest at 7.45% with monthly principal and interest payments of $40,653 beginning March 2012. The note matures in January 2019. This note has been fully paid in relation to the December 2017 aircraft note trade-in, as discussed below. In December 2014, the Company refinanced certain real estate debt amounting to $2.1 million with new bank debt of $2.0 million. The new debt is payable $13,270 per month, including interest at 5.25% and matures in ten years. This note has been fully paid in relation to the first note of the New Loan, as discussed below. In December 2014, the Company borrowed $1.0 million from an individual. The note is collateralized by certain real estate, is payable $13,215 per month, including interest at 10% and matures in ten years. This note has been fully paid in relation to the first note of the New Loan, as discussed below. On January 13, 2015 a Company subsidiary purchased Down in Texas Saloon gentlemen’s club in an Austin, Texas suburb. As part of the transaction, another subsidiary also purchased the club’s real estate. Total consideration of $6.8 million consisted of $3.5 million for the club business and $3.3 million for its 3.5 acres of real estate. Payment was in the form of $1 million in cash and $1.4 million in seller financing at 6% annual interest, with the balance provided by commercial bank financing in the form of a note at a variable interest rate equal to the prime rate plus 2%, but in no event less than 6.5%. Payments on these notes aggregate $68,829 per month. These notes have been fully paid in relation to the first note of the New Loan, as discussed below. On May 4, 2015 a Company subsidiary purchased The Seville gentlemen’s club in Minneapolis Minnesota. As part of the transaction, another subsidiary also purchased the club’s real estate. Total consideration of $8.5 million consisted of $4.5 million for the assets of the club business and $4.0 million for the real estate. Payment was made through bank financing of $5.7 million at 5.5% interest, seller financing of $1.8 million at 6% and cash of $1.1 million. There are certain financial covenants with which the Company must be in compliance related to this financing. The Company was in compliance with such covenants as of September 30, 2017. Payments on these notes aggregate to $65,355 per month. These notes have been fully paid in relation to the first note of the New Loan, as discussed below. On July 30, 2015, a subsidiary of the Company acquired the building in which the Company’s Miami Gardens, Florida nightclub operates. The cost was $15,300,000 and was purchased with an $11,325,000 note, payable in monthly installments of approximately $78,000, including interest at 5.45% and matures in five years and the balance with cash. The building has several other third-party tenants in addition to the Company’s nightclub. There are certain financial covenants with which the Company must be in compliance related to this financing. The Company was in compliance with such covenants as of September 30, 2017. This note has been fully paid in relation to the second note of the New Loan, as discussed below. In 2015, the Company reached a settlement with the State of Texas over payment of the state’s Patron Tax on adult club customers. To resolve the issue of taxes owed, the Company agreed to pay $10.0 million in equal monthly installments of $119,000, without interest, over 84 months, beginning in June 2015, for all but two nonsettled locations. Going forward, the Company agreed to remit the Patron Tax on a monthly basis, based on the current rate of $5 per customer. For accounting purposes, the Company has discounted the $10.0 million at an imputed interest rate of 9.6%, establishing a net present value for the settlement of $7.2 million. In October 2015, the Company refinanced certain real estate debt amounting to $2.3 million with new bank debt of $4.6 million. After closing costs, the Company received $2.0 million in cash from the transaction. The new debt is payable $30,244 per month, including interest at the prime rate plus 2% (6.25% at September 30, 2017) and matures in ten years. There are certain financial covenants with which the Company must be in compliance related to this financing. The Company was in compliance with such covenants as of September 30, 2017. This note has been fully paid in relation to the first note of the New Loan, as discussed below. In October 2015, the Company entered into a $4.7 million construction loan with a commercial bank for a new corporate headquarters building. The note, which was fully funded upon the finish of construction of the building in October 2016, is payable over 20 years at $31,988 per month including interest and has an adjustable interest rate of 5.25%. The rate adjusts to prime plus 1% in the 61st month, with a floor of 5.25%. This note has been fully paid in relation to the first note of the New Loan, as discussed below. In January 2016, a subsidiary of the Company acquired the building in which the Company’s Rick’s Cabaret New York nightclub operates. The cost was $10.5 million, including closing costs and was purchased with a $10.0 million note, payable in monthly installments of approximately $59,000, including interest at 5.0% and matures in ten years. There are certain financial covenants with which the Company must be in compliance related to this financing. The Company was in compliance with such covenants as of September 30, 2017. This note has been fully paid in relation to the first note of the New Loan, as discussed below. In August 2016, the Company acquired certain land for future development of a Bombshells in Harris County, Texas for $2.5 million, financed with a bank note for $1.9 million, payable interest only at 5.0% monthly until its maturity in 18 months. This note has been fully paid in relation to the February 20, 2018 refinancing, as discussed below. In August 2016, the Company refinanced two notes payable with an aggregate carrying value of $6.1 million with a $9.0 million bank note at an interest rate of 5.95%. The note matures in 10 years with monthly installments of $100,062 and a balloon payment at maturity for the remaining balance. This note has been fully paid in relation to the third note of the New Loan, as discussed below. On October 5, 2016, the Company refinanced $8.0 million of long-term debt by borrowing $9.9 million. The new unsecured debt is payable $118,817 per month, including interest at 12%, and matures in five years with a balloon payment for the remaining balance at maturity. This note has been partially paid in relation to the first note of the New Loan, as discussed below. On May 1, 2017, the Company raised $5.4 million through the issuance of 12% unsecured promissory notes to certain investors, which notes mature on May 1, 2020. The notes pay interest-only in equal monthly installments, with a lump sum principal payment at maturity. On August 15, 2018 and September 26, 2018, the Company refinanced $2.0 million and $500,000 of the notes, respectively. The $2.0 million note was exchanged for a $4.0 million 12% note maturing in three years with interest-only payments until maturity, where the full principal is to be paid. The $500,000 note was exchanged for a $1.35 million 9% note maturing in 10 years with monthly payments of $17,101, including interest. On November 1, 2018, the Company refinanced two notes with a total principal of $400,000 with certain investors. See Note 19. On May 4, 2017, the Company entered into a construction loan agreement with a bank for the construction of the Company’s Bombshells Pearland location. The maximum availability of the 5% promissory note is $4.8 million with advances based on the progress of construction. On June 4, 2017, an initial advance of $2.2 million was used to pay off a previous interest-only note for the same construction project. The new loan is payable interest-only until after one year from the date of the initial advance when the construction loan, including all advances as its principal, converts to an amortizing 20-year note with scheduled monthly payments to be determined on the date of conversion. The Company paid loan costs amounting to $24,000, which will be amortized for the term of the note. This note has been fully paid in relation to the first note of the New Loan, as discussed below. On May 8, 2017, in relation to the Scarlett’s acquisition (see Note 13), the Company executed two promissory notes with the sellers: (i) a 5% short-term note for $5.0 million payable in lump sum after six months from closing date and (ii) a 12-year amortizing 8% note for $15.6 million. The 12-year note is payable $168,343 per month, including interest. On May 8, 2018, the Company amended the $5.0 million short-term note payable, which had a remaining balance of $3.0 million as of amendment date, extending the maturity date to May 8, 2019 and increasing the interest rate to 8% for its remaining term. See Note 19 for related disclosures. On December 7, 2017, the Company borrowed $7.1 million from a lender to purchase an aircraft at 5.95% interest. The transaction was partly funded by trading in an aircraft that the Company owned with a carrying value of $3.4 million, with an assumption of the old aircraft’s note payable liability of $2.0 million. The aircraft note is payable in 15 years with monthly payments of $59,869, which includes interest. On December 14, 2017, the Company entered into a loan agreement (“New Loan”) with a bank for $81.2 million. The New Loan fully refinances 20 of the Company’s notes payable and partially pays down 1 note payable (collectively, “Repaid Notes”) with interest rates ranging from 5% to 12% covering 43 parcels of real properties the Company previously acquired (“Properties”). The New Loan consists of three promissory notes: i) The first note amounts to $62.5 million with a term of 10 years at a 5.75% fixed interest rate for the first five years, then repriced one time at the then current U.S. Treasury rate plus 3.5%, with a floor rate of 5.75%, and payable in monthly installments of $442,058, based upon a 20-year amortization period, with the balance payable at maturity; ii) The second note amounts to $10.6 million with a term of 10 years at a 5.45% fixed interest rate until July 2020, after which to be repriced at a fixed interest rate of 5.75% until the fifth anniversary of this note, and then to be repriced again at the then interest rate of the first note. This note is payable $78,098 monthly for principal and interest until July 2020, based upon a 20-year amortization period, after which the monthly payment for principal and interest is adjusted accordingly based on the repricing, with the balance payable at maturity; and iii) The third note amounts to $8.1 million with a term of 10 years at a 5.95% fixed interest rate until August 2021, after which to be repriced at 5.75% until the fifth anniversary of this note, and then to be repriced again at the then interest of the first note. This note is payable $100,062 monthly for principal and interest until August 2021, based upon a 20-year amortization period, after which the monthly payment for principal and interest is adjusted accordingly based on the repricing, with the balance payable at maturity. In addition to the monthly principal and interest payments as provided above, the Company will pay monthly installments of principal of $250,000, applied to the first note, until such time as the loan-to-value ratio of the Properties, based upon reduced principal balance of the New Loan and the then current value of the Properties, is not greater than 65%. The New Loan has eliminated balloon payments of the Repaid Notes worth $2.9 million originally scheduled in fiscal 2018, $19.4 million originally scheduled in fiscal 2020 and $5.3 million originally scheduled in fiscal 2021. In connection with the Repaid Notes, we wrote off $279,000 of unamortized debt issuance costs to interest expense. Prior to September 30, 2017, the Company paid a portion of debt issuance costs amounting to $612,500, which was included in other assets until the closing of the transaction. At closing, the Company paid an additional $764,000 in debt issuance costs, which together with the $612,500 prepayment will be amortized for the term of the loan using the effective interest rate method. We also paid prepayment penalties amounting to $543,000 on the Repaid Notes. Included in the $62.5 million first note of the New Loan was $4.6 million that was escrowed at closing due to the bank lender of one of the Repaid Notes. The amount was released from escrow in June 2018 when the construction, for which the original note was borrowed, was completed. On February 15, 2018, the Company borrowed $3.0 million from a bank for the purchase of land at a cost of $4.0 million with the difference paid by the Company in cash. The bank note bears interest at 5.25% adjusted after 36 months to prime plus 1% with a floor of 5.2% and matures on February 15, 2038. The bank note is payable interest-only during the first 18 months, after which monthly payments of principal and interest will be made based on a 20-year amortization with the remaining balance to be paid at maturity. On August 28, 2018, this note was refinanced for additional construction loan having a maximum availability of $7.4 million. The new note has an initial interest rate of 5.95%, subject to a repricing after 72 months to prime plus 1% with a 5.9% floor. The note is payable $53,084 per month, including interest, for 72 months , then adjusted based on repriced interest rate until its August 2039 maturity. As of September 30, 2018, the Company had $4.3 million in available borrowing capacity under this construction loan. On February 20, 2018, the Company refinanced a bank note with a balance of $1.9 million, bearing interest of 2% over prime with a 5.5% floor, with the same bank for a construction loan with maximum availability of $4.7 million. The construction loan agreement bears an interest rate of prime plus 0.5% with a floor of 5.0% and matures on August 20, 2029. During the first 18 months of the construction loan, the Company will make monthly interest-only payments, and after such, monthly payments of principal and interest will be made based on a 20-year amortization with the remaining balance to be paid at maturity. As of September 30, 2018, the Company had $403,000 in available borrowing capacity under this construction loan. On April 24, 2018, the Company acquired certain land for future development of a Bombshells in Houston, Texas for $5.5 million, financed with a bank note for $4.0 million, payable interest only at prime plus 0.5% with a floor of 5% per annum. The note matures in 24 months, by which date the principal is payable in full. On September 17, 2018, the Company and the bank lender agreed to carve out a portion of the loan that relates to the land where the Bombshells location is to be built amounting to $960,000, and added a construction loan with a maximum availability of $2.9 million. The new $2.9 million construction loan has an interest rate of prime plus 0.5%, with a 5.5% floor, and payable in 12 years. The first 24 months will be interest-only payments, after which monthly payments of principal and interest will be made based on a 20-year amortization. On May 25, 2018, the Company acquired a club in Kappa, Illinois for $1.5 million, financed by a $1.0 million seller note with interest at 8%. The note matures in three years and is payable in monthly installments of $20,276, including interest, based on a five-year amortization with the remaining balance to be paid at maturity. On September 6, 2018, the Company borrowed $1.55 million from a bank lender to finance the acquisition of the remaining not-owned interest in a joint venture. The 10-year note payable has an initial interest rate of 5.95% until after five years when the interest rate is adjusted to the U.S. Treasury rate plus 3.5%, with a 5.95% floor. Monthly payments of $11,138, including interest, is due for five years until an adjustment in monthly payments based on the interest rate repricing. The Company paid approximately $40,000 in debt issuance costs at closing. On September 14, 2018, the Company acquired land worth $2.75 million for a future Bombshells location by executing a note with a bank lender for 1.5 million and paying the remainder in cash. The 6.1% one-year note has monthly interest-only payments of $7,625 with the full principal payable at maturity. The Company paid approximately $22,000 in debt issuance costs at closing. On September 25, 2018, the Company borrowed $5.0 million through a credit facility with a bank lender. The loan has a 7% fixed interest rate and matures in May 2019. The loan is payable $200,000 weekly, which includes interest, until maturity. Future maturities of long-term debt consist of the following, net of debt discount (in thousands): Regular Balloon Total Amortization Payments Payments 2019 $ 14,522 $ 4,525 $ 19,047 2020 7,543 6,019 13,562 2021 4,142 7,779 11,921 2022 10,818 - 10,818 2023 6,948 1,314 8,262 Thereafter 32,257 46,548 78,805 $ 76,230 $ 66,185 $ 142,415 |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income Taxes The Tax Cuts and Jobs Act (Tax Act) was enacted on December 22, 2017, and includes, among other items, a reduction in the federal corporate income tax rate from 35% to 21% effective January 1, 2018. Our federal corporate income tax rate for fiscal 2018 was 24.5% percent and represents a blended income tax rate for the current fiscal year. For fiscal 2019, our federal corporate income tax rate will be 21%. Additionally, for the fiscal year ended September 30, 2018, in accordance with FASB ASC Topic 740, we remeasured our deferred tax balances to reflect the reduced rate that will apply when these deferred taxes are settled or realized in future periods. The remeasurement resulted in a $8.7 million one-time adjustment of our net deferred tax liabilities reflected in our consolidated balance sheet as of September 30, 2018 and a corresponding income tax benefit reflected in our consolidated statements of earnings for the fiscal year ended September 30, 2018. The SEC staff issued Staff Accounting Bulletin No. 118 which allows companies to record provisional amounts during a measurement period that is similar to the measurement period used when accounting for business combinations. While we are able to make a reasonable estimate of the impacts of the Tax Act, adjustments may occur and may be affected by other factors, including, but not limited to, further refinement of our calculations, changes in interpretations and assumptions and regulatory changes from the Internal Revenue Service (IRS), the SEC, the FASB, and various tax jurisdictions. We do not expect any future impact to be material. Income tax expense (benefit) consisted of the following (in thousands): Years Ended September 30, 2018 2017 2016 Current Federal $ 2,438 $ 2,989 $ 260 State and local 1,219 1,097 970 Total current income tax expense 3,657 4,086 1,230 Deferred Federal (8,096 ) 1,545 1,110 State and local 1,321 728 33 Total deferred income tax expense (benefit) (6,775 ) 2,273 1,143 Total income tax expense (benefit) $ (3,118 ) $ 6,359 $ 2,373 The Company and its subsidiaries do not operate in tax jurisdictions outside of the United States. Income tax expense (benefit) differs from the “expected” income tax expense computed by applying the U.S. federal statutory rate to earnings before income taxes for the years ended September 30 as a result of the following (in thousands): Years Ended September 30, 2018 2017 2016 Computed expected income tax expense $ 4,576 $ 4,979 $ 4,366 State income taxes, net of federal benefit 804 291 730 Deferred taxes on subsidiaries acquired/sold 709 - (841 ) Permanent differences 85 108 (109 ) Change in deferred tax liability rate (8,832 ) 1,329 - Reserve for uncertain tax position - 406 240 Tax credits (808 ) (564 ) (2,013 ) Other 348 (190 ) - Total income tax expense (benefit) $ (3,118 ) $ 6,359 $ 2,373 During the fiscal year ended September 30, 2016 the Company deconsolidated three subsidiaries. Two of these subsidiaries were 100 percent owned subsidiaries, 100 percent of the stock of both of these subsidiaries were sold to third parties. The third subsidiary was a 51 percent owned subsidiary that was accounted for under the consolidated method; 31 percent of the 51 percent ownership of the stock was sold during the year to a third party, and the investment is now accounted for under the cost method. In accordance with U.S. GAAP, the company has elected to account for the deferred taxes on the inside basis differences of all three deconsolidated subsidiaries as a component of the gain or loss on the sale of the shares. All outside basis differences in the investment in subsidiaries stock are accounted for as a component of the tax provision. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The significant components of the Company’s deferred tax assets and liabilities were as follows (in thousands): September 30, 2018 2017 Deferred tax assets: Patron tax $ 948 $ 1,954 Capital loss carryforwards 763 - Other - 231 1,711 2,185 Deferred tax liabilities: Intangibles (13,110 ) (18,549 ) Property and equipment (7,206 ) (9,177 ) Other (947 ) - (21,263 ) (27,726 ) Net deferred tax liability $ (19,552 ) $ (25,541 ) For the year ended September 30, 2016, income tax expense includes a tax benefit in the amount of $2.0 million representing the net amount to be realized from fiscal year 2016 and from amending certain prior year federal tax returns to take the available FICA tip tax credits which were not taken in prior years. The Company will continue to utilize FICA tip credits in future tax filings. Included in the Company’s deferred tax liabilities at September 30, 2018 and 2017 is approximately $16.3 million and $16.3 million, respectively, representing the tax effect of indefinite-lived intangible assets from club acquisitions which are not deductible for tax purposes. These deferred tax liabilities will remain in the Company’s consolidated balance sheet until the related clubs are sold. The Company may recognize the tax benefit from uncertain tax positions only if it is at least more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon settlement with the taxing authorities. We recognize accrued interest related to unrecognized tax benefits as a component of accrued liabilities. We recognize penalties related to unrecognized tax benefits as a component of selling, general and administrative expenses, and recognize interest accrued related to unrecognized tax benefits in interest expense. During the year ended September 30, 2018 and 2017, the Company has accrued $165,000 and $865,000, respectively, (all related to previous years’ taxes) in uncertain state tax positions. In fiscal 2017, the Company also accrued $223,000 and $266,000 in penalties and interest, respectively, related to uncertain tax positions. In fiscal 2018, the Company released $700,000 of uncertain tax positions due to a settlement with New York state. The following table shows the changes in the Company’s uncertain tax positions (in thousands): Years Ended September 30, 2018 2017 2016 Balance at beginning of year $ 865 $ 240 $ - Additions for tax positions of prior years - 625 240 Released in current year (700 ) - - Balance at end of year $ 165 $ 865 $ 240 The full balance of uncertain tax positions, if recognized, would affect the Company’s annual effective tax rate, net of any federal tax benefits. The Company does not expect any changes that will significantly impact its uncertain tax positions within the next twelve months. The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various states. Fiscal year ended September 30, 2016 remains open to tax examination. The Company’s federal income tax returns for the years ended September 30, 2015, 2014 and 2013 have been examined by the Internal Revenue Service with no changes. These years are now under examination for payroll taxes. The Company is also being examined for state income taxes, the settlement of which may occur within the next twelve months. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | 9. Stock-Based Compensation In 2010, the Company’s Board of Directors approved the 2010 Stock Option Plan (the “2010 Plan”). The 2010 Plan was approved by the shareholders of the Company at the 2011 Annual Meeting of Stockholders. At the 2012 Annual Meeting of Stockholders, shareholders approved amending the 2010 Plan to increase the maximum aggregate number of shares of common stock that may be optioned and sold from 500,000 to 800,000. The options granted under the Plans may be either incentive stock options or non-qualified options. The 2010 Plan is administered by the Board of Directors or by a compensation committee of the Board of Directors. The Board of Directors has the exclusive power to select individuals to receive grants, to establish the terms of the options granted to each participant, provided that all options granted shall be granted at an exercise price not less than the fair market value of the common stock covered by the option on the grant date and to make all determinations necessary or advisable under the 2010 Plan. There were no options outstanding as of September 30, 2018 or 2017. In July 2014, the Company granted to an executive officer and an officer of a subsidiary a total of 96,325 shares of restricted stock. The total grant date fair value of all of these awards was $963,000, or $10.00 per share, and vested in two years. Restricted stock awards are awards of common stock that are subject the restrictions on transfer and to a risk of forfeiture if the awardee terminates employment with the Company prior to the lapse of the restrictions. The fair value of such stock was determined using the closing price on the grant date and compensation expense is recorded over the applicable requisite service periods. Forfeitures are recognized as a reversal of expense of any unvested amounts in the period incurred. These restricted stock awards vested in July 2016 at an aggregate intrinsic value of $969,000. There was no restricted stock outstanding as of September 30, 2018 and 2017. Stock-based compensation expense recognized during the fiscal years ended September 30, 2018, 2017, and 2016 amounted to $0, $0, and $360,000, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 10. Commitments and Contingencies Leases The Company leases certain equipment and facilities under operating leases, of which rent expense was approximately $3.8 million, $3.3 million, and $3.3 million for the years ended September 30, 2018, 2017, and 2016, respectively. Rent expense for the Company’s operating leases, which generally have escalating rentals over the term of the lease, is recorded using the straight-line method over the initial lease term whereby an equal amount of rent expense is attributed to each period during the term of the lease, regardless of when actual payments are made. Generally, this results in rent expense in excess of cash payments during the early years of a lease and rent expense less than cash payments in the later years. The difference between rent expense recognized and actual rental payments is included in other long-term liabilities in the consolidated balance sheets. Undiscounted future minimum annual lease obligations as of September 30, 2018 are as follows (in thousands): 2019 $ 2,796 2020 2,878 2021 2,792 2022 2,744 2023 2,576 Thereafter 21,922 Total future minimum lease obligations $ 35,708 Legal Matters Texas Patron Tax In 2015, the Company reached a settlement with the State of Texas over the payment of the state’s Patron Tax on adult club customers. To resolve the issue of taxes owed, the Company agreed to pay $10.0 million in equal monthly installments of $119,000, without interest, over 84 months, beginning in June 2015, for all but two non-settled locations. The Company agreed to remit the Patron Tax on a monthly basis, based on the current rate of $5 per customer. For accounting purposes, the Company has discounted the $10.0 million at an imputed interest rate of 9.6%, establishing a net present value for the settlement of $7.2 million. As a consequence, the Company has recorded an $8.2 million pre-tax gain for the third quarter ending June 30, 2015, representing the difference between the $7.2 million and the amount previously accrued for the tax. In March 2017, the Company settled with the State of Texas for one of the two remaining unsettled Patron Tax locations. To resolve the issue of taxes owed, the Company agreed to pay a total of $687,815 with $195,815 paid at the time the settlement agreement was executed followed by 60 equal monthly installments of $8,200 without interest. The aggregate balance of Patron Tax settlement liability, which is included in long-term debt in the consolidated balance sheets, amounted to $4.5 million and $5.6 million as of September 30, 2018 and 2017, respectively. A Declaratory judgment action was brought by five operating subsidiaries of the Company to challenge a Texas Comptroller administrative rule related to the $5 per customer Patron Tax Fee assessed against Sexually Oriented Businesses. An administrative rule attempted to expand the fee to cover venues featuring dancers using latex cover as well as traditional nude entertainment. The administrative rule was challenged on both constitutional and statutory grounds. On November 19, 2018, the Court issued an order that a key aspect of the administrative rule is invalid based on it exceeding the scope of the Comptroller’s authority. Constitutional challenges remain and will be resolved at trial. Indemnity Insurance Corporation As previously reported, the Company and its subsidiaries were insured under a liability policy issued by Indemnity Insurance Corporation, RRG (“IIC”) through October 25, 2013. The Company and its subsidiaries changed insurance companies on that date. On November 7, 2013, the Court of Chancery of the State of Delaware entered a Rehabilitation and Injunction Order (“Rehabilitation Order”), which declared IIC impaired, insolvent and in an unsafe condition and placed IIC under the supervision of the Insurance Commissioner of the State of Delaware (“Commissioner”) in her capacity as receiver (“Receiver”). The Rehabilitation Order empowered the Commissioner to rehabilitate IIC through a variety of means, including gathering assets and marshaling those assets as necessary. Further, the order stayed or abated pending lawsuits involving IIC as the insurer until May 6, 2014. On April 10, 2014, the Court of Chancery of the State of Delaware entered a Liquidation and Injunction Order With Bar Date (“Liquidation Order”), which ordered the liquidation of IIC and terminated all insurance policies or contracts of insurance issued by IIC. The Liquidation Order further ordered that all claims against IIC must have been filed with the Receiver before the close of business on January 16, 2015 and that all pending lawsuits involving IIC as the insurer were further stayed or abated until October 7, 2014. As a result, the Company and its subsidiaries no longer have insurance coverage under the liability policy with IIC. Currently, there are several civil lawsuits pending against the Company and its subsidiaries. The Company has retained counsel to defend against and evaluate these claims and lawsuits. We are funding 100% of the costs of litigation and will seek reimbursement from the bankruptcy receiver. The Company filed the appropriate claims against IIC with the Receiver before the January 16, 2015 deadline and has provided updates as requested; however, there are no assurances of any recovery from these claims. It is unknown at this time what effect this uncertainty will have on the Company. As previously stated, since October 25, 2013, the Company has obtained general liability coverage from other insurers, which have covered and/or will cover any claims arising from actions after that date. As of September 30, 2018, we have 2 unresolved claims out of the original 71 claims. General The Company has been sued by a landlord in the 333rd Judicial District Court of Harris County, Texas for a Houston Bombshells which was under renovation in 2015. The plaintiff alleges RCI Hospitality Holdings, Inc.’s subsidiary, BMB Dining Services (Willowbrook), Inc., breached a lease agreement by constructing an outdoor patio, which allegedly interfered with the common areas of the shopping center, and by failing to provide Plaintiff with proposed plans before beginning construction. Plaintiff also asserts RCI Hospitality Holdings, Inc. is liable as guarantor of the lease. The lease was for a Bombshells restaurant to be opened in the Willowbrook Shopping Center in Houston, Texas. Both RCI Hospitality Holdings, Inc. and BMB Dining Services (Willowbrook), Inc. have denied liability and assert that Plaintiff has failed to mitigate its claimed damages. Further, BMB Dining Services (Willowbrook), Inc. asserts that Plaintiff affirmatively represented that the patio could be constructed under the lease and has filed counter claims and third-party claims against Plaintiff and Plaintiff’s manager asserting that they committed fraud and that the landlord breached the applicable agreements. While the case was tried to a jury in late September 2018, a final judgment has not yet been issued because substantial disputes remain related to the legal impact of the jury’s verdict, and the parties are currently engaged in motion practice to resolve their disputes. It is unknown at this time whether the resolution of this uncertainty will have a material effect on the Company’s financial condition. On June 23, 2014, Mark H. Dupray and Ashlee Dupray filed a lawsuit against Pedro Antonio Panameno and our subsidiary JAI Dining Services (Phoenix) Inc. (“JAI Phoenix”) in the Superior Court of Arizona for Maricopa County. The suit alleged that Mr. Panameno injured Mr. Dupray in a traffic accident after being served alcohol at an establishment operated by JAI Phoenix. The suit alleged that JAI Phoenix was liable under theories of common law dram shop negligence and dram shop negligence per se. After a jury trial proceeded to a verdict in favor of the plaintiffs against both defendants, in April 2017 the Court entered a judgment under which JAI Phoenix’s share of compensatory damages is approximately $1.4 million and its share of punitive damages is $4 million. In May 2017, JAI Phoenix filed a motion for judgment as a matter of law or, in the alternative, motion for new trial. The Court denied this motion in August 2017. In September 2017, JAI Phoenix filed a notice of appeal. In June 2018, the matter was heard by the Arizona Court of Appeals. On November 15, 2018 the Court of Appeals vacated the jury’s verdict and remanded the case to the trial court. It is anticipated that a new trial will occur at some point in the future. JAI Phoenix will continue to vigorously defend itself. Settlement of lawsuits for the years ended September 30, 2018, 2017, and 2016 total $1.7 million, $317,000, and $1.9 million, respectively. As of September 30, 2018 and 2017, the Company has accrued $0 and $295,000 in accrued liabilities, respectively, related to settlement of lawsuits. |
Common Stock
Common Stock | 12 Months Ended |
Sep. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Common Stock | 11. Common Stock During the year ended September 30, 2016, the following common stock transactions occurred: ● The Company acquired 747,081 shares of its own common stock at a cost of $7.3 million. These shares were subsequently retired. ● The Company issued 125,610 common shares for the conversion of debt and interest in the aggregate amount of $1.3 million. ● Warrants exercised during the year amounted to 48,780 shares amounting to $500,000. ● The Company paid quarterly dividends of $0.03 per share starting the second quarter for an aggregate amount of $862,000. During the year ended September 30, 2017, the following common stock transactions occurred: ● The Company acquired 89,685 shares of its own common stock at a cost of $1.1 million. These shares were subsequently retired. ● The Company paid quarterly dividends of $0.03 per share for an aggregate amount of $1.2 million. During the year ended September 30, 2018, the Company paid quarterly dividends of $0.03 per share for an aggregate amount of $1.2 million. |
Employee Retirement Plan
Employee Retirement Plan | 12 Months Ended |
Sep. 30, 2018 | |
Employee Retirement Plan | |
Employee Retirement Plan | 12. Employee Retirement Plan The Company sponsors a Simple IRA plan (the “Plan”), which covers all of the Company’s corporate employees. The Plan allows the corporate employees to contribute up to the maximum amount allowed by law, with the Company making a matching contribution of up to 3% of the employee’s salary. Expenses related to matching contributions to the Plan approximated $159,000, $130,000, and $108,000 for the years ended September 30, 2018, 2017, and 2016, respectively. |
Acquisitions and Dispositions
Acquisitions and Dispositions | 12 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
Acquisitions and Dispositions | 13. Acquisitions and Dispositions 2016 Dispositions In September 2016, we sold a 31% interest in Robust for a $2.0 million note back to its former owner, retaining a 20% interest in the business. The sale of the 31% interest resulted in a loss in control of Robust and we recognized a loss of $184,000 at the date of deconsolidation. The loss was measured as the excess of the carrying amount of the assets and liabilities over the aggregate of 1) the fair value of the $2 million note received, 2) the fair value of retained non-controlling interest measured at $1.2 million, and 3) the carrying amount of the noncontrolling interest. At the date of deconsolidation, we no longer held a significant influence in Robust and have accounted for our 20% remaining interest as a cost method investment. See Note 15 for further discussion of the other-than-temporary impairment recognized in 2017. In September 2016, the Company sold two adult clubs and closed a Bombshells location. Following are the aggregate details of the sales: ● Sales price — $6.3 million ● Cash received — $3.5 million ● Notes receivable — $2.8 million ● Gain on sale — $1.1 million of adult club ● Loss on closure of Bombshells — $550,000 ● Deferred gain on sale of adult club (gain recognized as note collected) — $399,000 The notes receivable are payable as follows: ● $1.8 million payable at 6% over 240 months. ● $1.0 million payable at 9% over 120 months. The gain/loss on sale transactions above includes a tax benefit of the deferred tax liabilities amounting to $2.5 million, which were released upon the sale of the entities. 2017 Acquisitions On April 26, 2017, subsidiaries of the Company acquired the assets of the Hollywood Showclub in the Greater St. Louis area, as well as the club’s building and land, adjacent land, and a nearby building and land that can be used for another gentlemen’s club. The total purchase price for all the acquired assets and real properties was $4.2 million, paid in cash at closing. The following information summarizes the allocation of fair values assigned to the assets at acquisition date (in thousands): Land and building $ 2,320 Furniture and equipment 141 Noncompete 200 Other assets 74 Goodwill 1,539 Accrued liability (75 ) Net assets $ 4,199 Management believes that the recorded goodwill represents the Company’s expansion into the Greater St. Louis area. Goodwill will not be amortized but will be tested at least annually for impairment. The goodwill balance of $1.5 million, which was recognized in the Nightclubs segment, is deductible for tax purposes. On May 8, 2017, a subsidiary of the Company acquired the company that owns Scarlett’s Cabaret Miami in Pembroke Park, Florida along with certain related intellectual property for a total consideration of $26.0 million, payable $5.4 million at closing, $5.0 million after six months through a short-term 5% note, and $15.6 million through a 12-year amortizing 8% note. See Note 7. The following information summarizes the allocation of fair values assigned to the assets at acquisition date (in thousands): Inventory $ 109 Leasehold improvements 1,222 Furniture and equipment 633 Noncompete 400 SOB license 20,196 Tradename 2,215 Goodwill 1,177 Net assets $ 25,952 Management believes that the recorded goodwill represents the Company’s strong market positioning in the South Florida area and with its different clientele from Tootsie’s Cabaret, which is five miles away, the two are complementary to each other including management synergies. Goodwill for this acquisition is not amortized but will be tested at least annually for impairment. The goodwill amount of $1.2 million, which was recognized in the Nightclubs segment, is deductible for tax purposes. In conjunction with the acquisition, the Company made an election under IRS Code 338(h)10 to treat the acquisition as an asset purchase for tax purposes. As a result, no deferred taxes were recorded upon acquisition. The Company’s pro forma results of operations for the acquisitions have not been presented because the effect of the acquisitions was not material to our consolidated financial statements. Since the acquisition dates, the two acquisitions generated combined revenues of $5.6 million that are included in the Company’s consolidated statements of income for the year ended September 30, 2017. 2017 Dispositions On January 13, 2017, we closed the sale on one of our non-income-producing properties, included in assets held for sale on our condensed consolidated balance sheet as of September 30, 2016, for $2.2 million in cash, recognizing approximately $116,000 loss on the sale. Proceeds were used to pay off the remaining $1.5 million of a related 11% balloon note, which was due in 2018. The Company paid a $75,000 prepayment penalty to pay off the debt. On June 6, 2017, the Company closed on the sale of another non-income-producing property, included in assets held for sale on the Company’s condensed consolidated balance sheet as of September 30, 2016, for $1.5 million, recognizing approximately $0.9 million gain on the sale. The buyer owned one of the Company’s notes payable, hence, the Company exchanged the property for a $1.5 million reduction in its note payable. 2018 Acquisitions At September 30, 2017 and December 31, 2017, the Company held a $2.0 million note receivable related to the Drink Robust, Inc. (“Drink Robust”) disposition that occurred in September 2016. The note required interest-only monthly payments at a per annum rate of 4% beginning January of 2017 and principal and interest payments due monthly commencing in January 2018 and ending December 2032. Interest payments from January 2017 through December 2017 were made in the form of shares of the common stock of a manufacturing company. Cash was received for the January 2018 principal and interest payment; however, in April of 2018, the Company was informed that the note holder did not intend to make any future principal or interest payments due on the note. The Company had recourse to the personal assets of the note holder in the amount of $500,000 and entered into negotiations for settlement of the note in April of 2018. On April 26, 2018, the Company forgave the $500,000 guaranteed portion of the note for 750,000 shares of common stock of the manufacturing company. Additionally, as part of the settlement, the Company acquired 78.5% of the remaining 80% ownership interest in Drink Robust, bringing its ownership interest to 98.5% with the payment of an outstanding liability to the Drink Robust distributor of $250,000. As a result of the payment, Drink Robust also obtained a three-year exclusive right of distribution for the Robust Energy Drinks in the United States. The Company has made a preliminary estimate of the fair value of the shares of the manufacturing company and the interest acquired in Drink Robust. The preliminary estimate totals $450,000, which is net of the consideration of $250,000 owed to the Drink Robust distributor. As a result of the transaction, the Company impaired $1.55 million of the note receivable during the three months ended March 31, 2018, with a remaining balance of $450,000 recorded within long-term assets at June 30, 2018. The Company accounted for the acquisition in the third quarter of 2018, when the transaction was executed and has finalized its estimate of the fair value of the shares acquired in the transaction, as well as its accounting for such ownership. On May 25, 2018, the Company acquired a club in Kappa, Illinois for $1.5 million, financed by a $1.0 million seller note with interest at 8%. The transaction provides for the purchase of the real estate for $825,000 and other non-real estate business assets for $180,000, with goodwill amounting to $495,000. Since the acquisition date, the acquired club generated revenues of approximately $442,000 that are included in the Company’s consolidated statements of income for the year ended September 30, 2018. On September 6, 2018, a subsidiary acquired the remaining 49% of TEZ Real Estate that it did not own for $1,550,000 in cash. The acquisition was principally funded by a loan on the property from a commercial bank. The Company accounted for the transaction as an equity transaction in accordance with ASC 505. The difference between the fair value of the consideration paid and the amount by which the noncontrolling interest was adjusted, in the amount of approximately $934,000, was recognized in additional paid-in capital. |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Sep. 30, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (Unaudited) | 14. Quarterly Results of Operations (Unaudited) The following tables summarize unaudited quarterly data for fiscal 2018, 2017, and 2016 (in thousands, except per share data): For the Three Months Ended December 31, 2017 March 31, 2018 June 30, 2018 September 30, 2018 Revenues $ 41,212 $ 41,226 $ 42,634 $ 40,676 Income from operations(1) $ 9,140 $ 8,231 $ 9,492 $ 1,533 Net income (loss) attributable to RCIHH shareholders(1) $ 14,311 $ 4,685 $ 5,389 $ (2,672 ) Earnings (loss) per share (1) Basic $ 1.47 $ 0.48 $ 0.55 $ (0.27 ) Diluted $ 1.47 $ 0.48 $ 0.55 $ (0.27 ) Weighted average number of common shares outstanding Basic 9,719 9,719 9,719 9,719 Diluted 9,719 9,719 9,719 9,719 For the Three Months Ended December 31, 2016 March 31, 2017 June 30, 2017 September 30, 2017 Revenues $ 33,739 $ 34,518 $ 37,429 $ 39,210 Income from operations(2) $ 6,333 $ 7,487 $ 7,883 $ 1,436 Net income (loss) attributable to RCIHH shareholders(2) $ 2,898 $ 3,759 $ 3,841 $ (2,239 ) Earnings (loss) per share(2) Basic $ 0.30 $ 0.39 $ 0.40 $ (0.23 ) Diluted $ 0.30 $ 0.39 $ 0.40 $ (0.23 ) Weighted average number of common shares outstanding Basic 9,768 9,719 9,719 9,719 Diluted 9,814 9,721 9,719 9,719 For the Three Months Ended December 31, 2015 March 31, 2016 June 30, 2016 September 30, 2016 Revenues $ 33,475 $ 34,396 $ 33,952 $ 33,037 Income from operations(3) $ 5,717 $ 7,550 $ 6,657 $ 769 Net income attributable to RCIHH shareholders(3) $ 2,552 $ 5,505 $ 2,653 $ 508 Earnings per share(3) Basic $ 0.25 $ 0.55 $ 0.27 $ 0.05 Diluted $ 0.25 $ 0.54 $ 0.27 $ 0.05 Weighted average number of common shares outstanding Basic 10,296 10,013 9,906 9,839 Diluted 10,635 10,215 10,047 9,840 (1) Fiscal year 2018 income from operations, net income attributable to RCIHH shareholders, and earnings per share included the impact of a $1.6 million loss on disposition in the second quarter, a $4.7 million in asset impairments ($1.6 million in the second quarter and $3.2 million in the fourth quarter), and a $9.7 million deferred income tax benefit related to the revaluation of deferred tax assets and liabilities in the first quarter. Quarterly effective income tax expense (benefit) rate was (134.3%), 24.2%, 25.3%, and 202.2% from first to fourth quarter, respectively. (2) Fiscal year 2017 income from operations, net income attributable to RCIHH shareholders, and earnings per share included the impact of $7.6 million in asset impairment ($1.4 million in the third quarter and $6.2 in the fourth quarter) and $1.3 million additional income tax expense due to change in deferred tax liability rate in the fourth quarter. Quarterly effective income tax expense rate was 33.3%, 33.7%, 32.9%, and 99.6% from first to fourth quarter, respectively. (3) Fiscal year 2016 income from operations, net income attributable to RCIHH shareholders, and earnings per share included the impact of $3.5 million in asset impairment in the fourth quarter; and $1.9 million in settlement of lawsuits (significant of which were $540,000 in the first quarter and $1.1 million in the fourth quarter). Quarterly effective income tax expense (benefit) rate was 35.9%, 5.2%, 43.0%, and (109.0%) from first to fourth quarter, respectively. Our nightclub operations are 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. |
Impairment of Assets
Impairment of Assets | 12 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Impairment of Assets | 15. Impairment of Assets During the year ended September 30, 2016, we recorded an impairment of $3.5 million, of which $2.1 million was for indefinite-lived intangible assets of one club, while $1.4 million was for one property held for sale. During the year ended September 30, 2017, we recorded aggregate impairment charges of $7.6 million comprised of $4.7 million for the goodwill of four club locations, including one that we have put up for sale during the fiscal year, $385,000 for property and equipment of one club, $1.4 million for SOB license of two club locations, and $1.2 million of investment impairment. During the year ended September 30, 2018, we recorded aggregate impairment charges of $4.7 million comprised of $1.6 million for long-lived assets of one club and one Bombshells, and $3.1 million for SOB licenses of three clubs. |
Segment Information
Segment Information | 12 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | 16. Segment Information The Company is engaged in the operations of 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. Total 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 reportable segments (in thousands): 2018 2017 2016 Revenues Nightclubs $ 140,060 $ 124,687 $ 113,941 Bombshells 24,094 18,830 18,690 Other 1,594 1,379 2,229 $ 165,748 $ 144,896 $ 134,860 Income (loss) from operations Nightclubs $ 44,458 $ 35,138 $ 33,211 Bombshells 2,040 3,084 1,152 Other (252 ) (522 ) (2,650 ) General corporate (17,850 ) (14,561 ) (11,020 ) $ 28,396 $ 23,139 $ 20,693 Capital expenditures Nightclubs $ 2,052 $ 5,142 $ 22,136 Bombshells 22,522 4,489 609 Other 33 14 10 General corporate 656 1,604 5,393 $ 25,263 $ 11,249 $ 28,148 Depreciation and amortization Nightclubs $ 5,404 $ 5,186 $ 5,008 Bombshells 1,265 1,025 1,072 Other 179 50 684 General corporate 874 659 564 $ 7,722 $ 6,920 $ 7,328 September 30, 2018 September 30, 2017 September 30, 2016 Total assets Nightclubs $ 253,169 $ 254,432 $ 244,332 Bombshells 39,560 18,870 8,378 Other 1,978 780 896 General corporate 35,859 25,802 22,455 $ 330,566 $ 299,884 $ 276,061 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. A further disaggregation by revenue line item of segment revenues is as follows: Nightclubs Bombshells Other Fiscal 2018: Sales of alcoholic beverages $ 54,800 $ 14,320 $ - Sales of food and merchandise 12,732 9,701 - Service revenues 64,054 50 - Other revenues 8,474 23 1,594 $ 140,060 $ 24,094 $ 1,594 Fiscal 2017: Sales of alcoholic beverages $ 48,655 $ 11,784 $ - Sales of food and merchandise 11,346 6,910 - Service revenues 58,013 119 - Other revenues 6,673 17 1,379 $ 124,687 $ 18,830 $ 1,379 Fiscal 2016: Sales of alcoholic beverages $ 45,677 $ 11,539 $ - Sales of food and merchandise 10,767 7,133 - Service revenues 51,276 - - Other revenues 6,221 18 2,229 $ 113,941 $ 18,690 $ 2,229 |
Noncontrolling Interests
Noncontrolling Interests | 12 Months Ended |
Sep. 30, 2018 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | 17. Noncontrolling Interests Noncontrolling interests represent the portion of equity in a consolidated entity held by owners other than the consolidating parent. Noncontrolling interests are reported in the consolidated balance sheets within equity, separately from stockholders’ equity, Revenue, expenses and net income attributable to both the Company and the noncontrolling interests are reported in the consolidated statements of income. Until September 2018, our consolidated financial statements include noncontrolling interests related principally to the Company’s ownership of 51% of an entity which owns the real estate for the Company’s nightclub in Philadelphia. The Company acquired the remaining not-owned portion of the entity in September 2018. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 18. Related Party Transactions Presently, our Chairman and President, Eric Langan, personally guarantees all of the commercial bank indebtedness of the Company. Mr. Langan receives no compensation or other direct financial benefit for any of the guarantees. In August 2011, the Company borrowed $750,000 from a related party. The note bore interest at the rate of 10% per annum and matured on August 1, 2014. The note was payable with one initial payment of interest only due January 1, 2012, and, thereafter in ten interest-only quarterly payments. The principal was payable on August 1, 2014. The note was extended in 2014 under the same terms until maturity in October 2017. At the option of the holder, the principal amount of the note and the accrued but unpaid interest thereon could have been converted into shares of the Company’s common stock at $10.00 per share. The note was redeemable by the Company after six months at any time if the closing price of its common stock for 20 consecutive trading days is at least $13.00 per share. The note was converted into shares during 2016. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | 19. Subsequent Events 2019 Acquisitions In November 2018, subsequent to our fiscal year ended September 30, 2018, we closed on the acquisition of one club in Chicago, Illinois and another club in Pittsburgh, Pennsylvania. The club in Chicago was acquired for a total consideration of $10.5 million with $6.0 million cash paid at closing and the $4.5 million in a 6-year seller financed note with interest at 7%. The Company paid approximately $37,000 in acquisition-related costs for this transaction. The Pittsburgh club was acquired for a total consideration of $15.1 million, with $7.6 million cash paid at closing and two seller notes payable. The first note is 2-year 7% note for $2.0 million, and the second is a 10-year 8% note for $5.5 million. The Company paid approximately $134,000 in acquisition-related costs for this transaction. It is management’s expectation that the purchase price of these acquisitions will be allocated to assets, including land, buildings, inventory, noncompetes, SOB license, and goodwill; however, the final purchase price allocation of the two clubs remains subject to post-closing adjustments until the Company has completed final valuation and accounting for the transactions. 2019 Disposition In October 2018, the Company sold its nightclub in Philadelphia for a total sales price of $1.0 million, payable $375,000 in cash at closing and a 9% note payable over a 10-year period. The note is payable interest-only for twelve months at the conclusion of which time a balloon payment of $250,000 is due, and then the remainder of the principal and interest is payable in 108 equal installments of $5,078 per month until October 2028. The buyer will lease the property from the Company’s real estate subsidiary under the following terms: $36,000 per month lease payments for ten years; renewal option for a succeeding ten years at a minimum of $48,000 per month; lessee has option to purchase the property for $6.0 million during a term beginning November 2023 and expiring in October 2028. The Company recorded a gain on the sale transaction of approximately $890,000. 2019 Financing On November 1, 2018, the Company raised $2.35 million through the issuance of 12% unsecured promissory notes to certain investors, which notes mature on November 1, 2021. The notes pay interest-only in equal monthly installments, with a lump sum principal payment at maturity. Among the promissory notes are two notes with a principal of $450,000 and $200,000. The $450,000 note was in exchange for a $300,000 12% note and the $200,000 note was in exchange for a $100,000 note, both of which were included in the May 1, 2017 financing discussed in Note 7, above. Also included in the $2.35 million borrowing is a $500,000 note borrowed from a related party. On December 6, 2018, the Company amended the $5.0 million short-term note payable related to the Scarlett’s acquisition, which had a remaining balance of $3.0 million as of December 6, 2018, extending the maturity date from May 8, 2019, as previously amended, to May 8, 2020. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Accounting | Basis of Accounting The accounts are maintained and the consolidated financial statements have been prepared using the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries in which a controlling interest is owned. Intercompany accounts and transactions have been eliminated in consolidation. |
Fiscal Year | Fiscal Year Our fiscal year ends on September 30. References to years 2018, 2017, and 2016 are for fiscal years ended September 30, 2018, 2017, and 2016, respectively. Our fiscal quarters chronologically end on December 31, March 31, June 30 and September 30. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts in the consolidated financial statements and accompanying notes. Estimates and assumptions are based on historical experience, forecasted future events and various other assumptions that we believe to be reasonable under the circumstances. Estimates and assumptions may vary under different circumstances and conditions. We evaluate our estimates and assumptions on an ongoing basis. We believe the accounting policies below are critical in the portrayal of our financial condition and results of operations. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers as cash equivalents all highly liquid investments with a maturity of three months or less when purchased. The Company maintains deposits in several financial institutions, which may at times exceed amounts covered by insurance provided by the U.S. Federal Deposit Insurance Corporation (“FDIC”). The Company has not experienced any losses related to amounts in excess of FDIC limits. |
Accounts and Notes Receivable | Accounts and Notes Receivable Accounts receivable for club and restaurant operations are primarily comprised of credit card charges, which are generally converted to cash in two to five days after a purchase is made. The media division’s accounts receivable are primarily comprised of receivables for advertising sales and Expo registration. Accounts receivable also include employee advances, construction advances, and other miscellaneous receivables. Long-term notes receivable, which have original maturity of more than one year, include consideration from the sale of certain investment interest entities and real estate. The Company recognizes interest income on notes receivable based on the terms of the agreement and based upon management’s evaluation that the notes receivable and interest income will be collected. The Company recognizes allowances for doubtful accounts or notes when, based on management judgment, circumstances indicate that accounts or notes receivable will not be collected. |
Inventories | Inventories Inventories include alcoholic beverages, energy drinks, food, and Company merchandise. Inventories are carried at the lower of cost (on a first-in, first-out (“FIFO”) basis), or market. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost. Provisions for depreciation and amortization are made using straight-line rates over the estimated useful lives of the related assets, and the shorter of useful lives or terms of the applicable leases for leasehold improvements. Buildings have estimated useful lives ranging from 29 to 40 years. Furniture and equipment have estimated useful lives of 5 to 7 years, while leasehold improvements are depreciated at the shorter of the lease term or estimated useful life. Expenditures for major renewals and betterments that extend the useful lives are capitalized. Expenditures for normal maintenance and repairs are expensed as incurred. The cost of assets sold, retired or abandoned and the related accumulated depreciation are written off from the accounts, and any gains or losses are charged or credited in the accompanying consolidated statement of income of the respective period. Interest expense during site construction from related debt is capitalized, which amounted to $319,000 in fiscal 2018, $43,000 in fiscal 2017, and $59,000 in fiscal 2016. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill and other intangible assets with indefinite lives are not amortized but reviewed on an annual basis for impairment. Definite-lived intangible assets are amortized on a straight-line basis over their estimated lives. The costs of transferable licenses purchased through open markets are capitalized as indefinite-lived intangible assets. The costs of obtaining non-transferable licenses that are directly issued by local government agencies are expensed as incurred. Annual license renewal fees are expensed over their renewal term. Goodwill and other intangible assets that have indefinite useful lives are tested annually for impairment during our fourth fiscal quarter and are tested for impairment more frequently if events and circumstances indicate that the asset might be impaired. An impairment loss is recognized to the extent that the carrying amount exceeds the asset’s fair value. For our goodwill impairment review, we have the option to first perform a qualitative assessment to determine if it is more likely than not that the fair value of the reporting unit is less than its carrying value. This assessment is based on several factors, including industry and market conditions, overall financial performance, including an assessment of cash flows in comparison to actual and projected results of prior periods. If it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying value based on our qualitative analysis, or if we elect to skip this step, we perform a Step 1 quantitative analysis to determine the fair value of the reporting unit. The fair value is determined using market-related valuation models, including earnings multiples, discounted cash flows, and comparable asset market values. We recognize goodwill impairment in the amount that the carrying value of the reporting unit exceeds the fair value of the reporting unit, not to exceed the amount of goodwill allocated to the reporting unit, based on the results of our Step 1 analysis. For the year ended September 30, 2017, we identified four reporting units that were impaired and recognized a goodwill impairment loss totaling $4.7 million. See Note 15. No goodwill impairment was recorded in fiscal 2018 and 2016. For indefinite-lived intangibles, specifically SOB licenses, we determine fair value by estimating the multiperiod excess earnings of the asset. For indefinite-lived tradename, we determine fair value by using the relief from royalty method. The fair value is then compared to the carrying value and an impairment charge is recognized by the amount by which the carrying amount exceeds the fair value of the asset. We recorded impairment charges for SOB licenses amounting to $3.1 million in 2018 related to three clubs, $1.4 million in 2017 related to two clubs, and $2.1 million in 2016 related to one club, which are included in other charges, net in the consolidated statements of income. See Notes 3 and 15. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company reviews long-lived assets, such as property, plant, and equipment, and intangible assets subject to amortization, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. These events or changes in circumstances include, but are not limited to, significant underperformance relative to historical or projected future operating results, significant changes in the manner of use of the acquired assets or the strategy for the overall business, and significant negative industry or economic trends. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the asset group to the estimated undiscounted cash flows over the estimated remaining useful life of the primary asset included in the asset group. If the asset group is not recoverable, the impairment loss is calculated as the excess of the carrying value over the fair value. We define our asset group as an operating club or restaurant location, which is also our reporting unit or the lowest level for which cash flows can be identified. Assets to be disposed of are separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell and are no longer depreciated. For assets held for sale, we measure fair value using an estimation based on quoted prices for similar items in active or inactive markets (level 2) developed using observable data. The assets and liabilities of a disposal group classified as held for sale are presented separately in the appropriate asset and liability sections of the balance sheet. During the fourth quarter of fiscal 2018, the Company impaired one club and one Bombshells for a total of $1.6 million; during the fourth quarter of 2017, the Company impaired one club for $385,000; and during the fourth quarter of fiscal 2016, the Company recognized a loss on disposal on one property held for sale in Fort Worth, Texas for $1.4 million, which are included in other charges, net in the consolidated statements of income. See Notes 3 and 15. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company calculates the fair value of its assets and liabilities which qualify as financial instruments and includes this additional information in the notes to consolidated financial statements when the fair value is different than the carrying value of these financial instruments. The estimated fair value of accounts receivable, accounts payable and accrued liabilities approximate their carrying amounts due to the relatively short maturity of these instruments. The carrying value of notes receivable and short and long-term debt also approximates fair value since these instruments bear market rates of interest. None of these instruments are held for trading purposes. |
Comprehensive Income | Comprehensive Income Comprehensive income is the total of net income or loss and all other changes in net assets arising from non-owner sources, which are referred to as items of other comprehensive income. An analysis of changes in components of accumulated other comprehensive income is presented in the consolidated statements of comprehensive income. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue from the sale of alcoholic beverages, food and merchandise, service and other revenues at the point-of-sale upon receipt of cash, check, or credit card charge, net of discounts and promotional allowances. Sales and liquor taxes collected from customers and remitted to governmental authorities are presented on a net basis in the accompanying consolidated statements of income. Revenues from the sale of magazines and advertising content are recognized when the issue is published and shipped. Revenues and external expenses related to the Company’s annual Expo convention are recognized upon the completion of the convention. Other rental revenues are recognized when earned. |
Advertising and Marketing | Advertising and Marketing Advertising and marketing expenses are primarily comprised of costs related to public advertisements and giveaways, which are used for promotional purposes. Advertising and marketing expenses are expensed as incurred and are included in selling, general and administrative expenses in the accompanying consolidated statements of income. See Note 3. |
Income Taxes | Income Taxes The Company and its subsidiaries are subject to U.S. federal income tax and income taxes imposed in the state and local jurisdictions where we operate our businesses. Deferred income taxes are determined using the liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. In addition, a valuation allowance is established to reduce any deferred tax asset for which it is determined that it is more likely than not that some portion of the deferred tax asset will not be realized. U.S. GAAP creates a single model to address accounting for uncertainty in tax positions by prescribing a minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. We recognize penalties related to unrecognized tax benefits as a component of selling, general and administrative expenses, and recognize interest accrued related to unrecognized tax benefits in interest expense. |
Investments | Investments Investments in companies in which the company has a 20% to 50% interest are accounted for using the equity method, which are carried at cost and adjusted for the Company’s proportionate share of their undistributed earnings or losses. Investments in companies in which the Company owns less than a 20% interest, or where the Company does not exercise significant influence, are accounted for at cost and reviewed for any impairment. Cost and equity method investments are included in other assets in the Company’s consolidated balance sheets. The Company sold 31% of Drink Robust on September 29, 2016, retaining 20%. Because the Company has no ability to direct the management of the investee company or exert significant influence, the investment is being accounted for at cost beginning on the date of sale. The carrying value of the cost-method investment in Robust was $1.2 million as of September 30, 2016. During the fourth quarter of fiscal 2017, we determined our investment in Drink Robust was impaired and recognized an other-than-temporary impairment totaling $1.2 million which brought our carrying value of this investment to zero. In relation to the reacquisition of Drink Robust in 2018, we have consolidated the operations of Drink Robust and eliminated the investment in consolidation. See Note 13. |
Earnings Per Common Share | Earnings Per Common Share Basic earnings per share includes no dilution and is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of the Company. Potential common stock shares consist of shares that may arise from outstanding dilutive common restricted stock, stock options and warrants (the number of which is computed using the “treasury stock method”) and from outstanding convertible debentures (the number of which is computed using the “if converted method”). Diluted earnings per share (“EPS”) considers the potential dilution that could occur if the Company’s outstanding common restricted stock, stock options, warrants and convertible debentures were converted into common stock that then shared in the Company’s earnings or losses (as adjusted for interest expense, that would no longer occur if the debentures were converted). Net earnings applicable to common stock and the weighted average number of shares used for basic and diluted earnings (loss) per share computations are summarized in the table that follows (in thousands, except per share data): For the Year Ended September 30, 2018 2017 2016 Numerator - Net income attributable to RCIHH shareholders - basic $ 21,713 $ 8,259 $ 11,218 Adjustment to net income from assumed conversion of debentures - 5 153 Adjusted net income attributable to RCIHH shareholders - diluted $ 21,713 $ 8,264 $ 11,371 Denominator - Weighted average number of common shares outstanding - basic 9,719 9,731 9,941 Effect of potentially dilutive restricted stock, warrants and options - - 60 Effect of potentially dilutive convertible debentures - 12 228 Adjusted weighted average number of common shares outstanding - diluted 9,719 9,743 10,229 Basic earnings per share $ 2.23 $ 0.85 $ 1.13 Diluted earnings per share $ 2.23 $ 0.85 $ 1.11 (1) Represents interest expense on dilutive convertible securities that would not occur if they were assumed converted. (2) All outstanding warrants and options were considered for the EPS computation. Additional shares for options, warrants and debentures amounting to zero and 72,400 for the year ended September 30, 2017 and, 2016 were not considered since they would be antidilutive. Convertible debentures (principal and accrued interest) outstanding at September 30, 2018, 2017, and 2016 totaling $0, $0, and $0.5 million, respectively, were convertible into common stock at prices ranging from $10.00 to $12.50 in fiscal year 2016. Convertible debentures amounting to $0, $0.9 million, and $0.5 million were dilutive in 2018, 2017, and 2016, respectively. |
Stock Options | Stock Options The Company recognizes all employee stock-based compensation as a cost in the consolidated financial statements. Equity-classified awards are measured at the grant date fair value of the award and recognized as expense over their requisite service period. The Company estimates grant date fair value using the Black-Scholes option-pricing model. The critical estimates are volatility, expected life and risk-free rate. At September 30, 2018 and 2017, the Company has no stock options outstanding. |
Legal and Other Contingencies | Legal and Other Contingencies The Company records a liability when it is probable that a loss has been incurred and the amount is reasonably estimable. There is significant judgment required in both the probability determination and as to whether an exposure can be reasonably estimated. In the opinion of management, there was not at least a reasonable possibility that we may have incurred a material loss, or a material loss in excess of a recorded accrual, with respect to loss contingencies for asserted legal and other claims. The Company recognizes legal fees and expenses, including those related to legal contingencies, as incurred. Generally, the Company recognizes gain contingencies when they are realized or when all related contingencies have been resolved. |
Fair Value Accounting | Fair Value Accounting The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels. U.S. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: ● Level 1 – Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 – Include other inputs that are directly or indirectly observable in the marketplace. ● Level 3 – Unobservable inputs which are supported by little or no market activity. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company classifies its marketable securities as available-for-sale, which are reported at fair value. Unrealized holding gains and losses, net of the related income tax effect, if any, on available-for-sale securities are excluded from income and are reported as accumulated other comprehensive income in stockholders’ equity. Realized gains and losses from securities classified as available for-sale are included in comprehensive income. The Company measures the fair value of its marketable securities based on quoted prices for identical securities in active markets, or Level 1 inputs. Available-for-sale securities, which are included in other assets in the consolidated balance sheets, had a balance of $760,000 and $80,000 as of September 30, 2018 and 2017. In accordance with U.S. GAAP, the Company reviews its marketable securities to determine whether a decline in fair value of a security below the cost basis is other than temporary. Should the decline be considered other than temporary, the Company writes down the cost basis of the security and include the loss in current earnings as opposed to an unrealized holding loss. No losses or other-than-temporary impairments in our marketable securities portfolio were recognized during the years ended September 30, 2018, 2017, and 2016. |
Assets and Liabilities that are Measured at Fair Value on a Nonrecurring Basis | Assets and Liabilities that are Measured at Fair Value on a Nonrecurring Basis Assets and liabilities that are measured at fair value on a nonrecurring basis relate primarily to tangible property and equipment, goodwill and other intangible assets, which are remeasured when the derived fair value is below carrying value in the consolidated balance sheets. For these assets, the Company does not periodically adjust carrying value to fair value except in the event of impairment. If it is determined that impairment has occurred, the carrying value of the asset is reduced to fair value and the difference is included in other charges, net in the consolidated statements of income. Assets and liabilities that are measured at fair value on a nonrecurring basis are as follows (in thousands): Fair Value at Reporting Date Using Quoted Prices in Significant Active Markets for Significant Other Unobservable September 30, Identical Asset Observable Inputs Inputs Description 2018 (Level 1) (Level 2) (Level 3) Property and equipment, net $ 141 $ - $ - $ 141 Indefinite-lived intangibles 4,618 - - 4,618 Notes receivable 0 - - 0 Goodwill 495 - - 495 Other assets 760 760 - - Fair Value at Reporting Date Using Quoted Prices in Significant Active Markets for Significant Other Unobservable September 30, Identical Asset Observable Inputs Inputs Description 2017 (Level 1) (Level 2) (Level 3) Goodwill $ 4,572 $ - $ - $ 4,572 Property and equipment, net 4,678 - 4,678 - Indefinite-lived intangibles 25,740 - - 25,740 Definite-lived intangibles 600 - - 600 Unrealized Gain (Impairments) Recognized Years Ended September 30, Description 2018 2017 2016 Goodwill $ - $ (4,697 ) $ - Property and equipment, net (1,615 ) (385 ) - Indefinite-lived intangibles (3,121 ) (1,401 ) (2,092 ) Assets held for sale - - (1,400 ) Other assets 305 (1,156 ) - |
Impact of Recently Issued Accounting Standards | Impact of Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In January 2017, the FASB issued ASU No. 2017-01, Business Combination (Topic 805): Clarifying the Definition of a Business Revenue from Contracts with Customers In May 2017, the FASB issued ASU No. 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting In February 2018, the FASB issued ASU 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. Income Statement—Reporting Comprehensive Income In June 2018, the FASB issued ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Earnings Per Share Basic and Diluted | Net earnings applicable to common stock and the weighted average number of shares used for basic and diluted earnings (loss) per share computations are summarized in the table that follows (in thousands, except per share data): For the Year Ended September 30, 2018 2017 2016 Numerator - Net income attributable to RCIHH shareholders - basic $ 21,713 $ 8,259 $ 11,218 Adjustment to net income from assumed conversion of debentures - 5 153 Adjusted net income attributable to RCIHH shareholders - diluted $ 21,713 $ 8,264 $ 11,371 Denominator - Weighted average number of common shares outstanding - basic 9,719 9,731 9,941 Effect of potentially dilutive restricted stock, warrants and options - - 60 Effect of potentially dilutive convertible debentures - 12 228 Adjusted weighted average number of common shares outstanding - diluted 9,719 9,743 10,229 Basic earnings per share $ 2.23 $ 0.85 $ 1.13 Diluted earnings per share $ 2.23 $ 0.85 $ 1.11 |
Schedule of Assets and Liabilities Measured at Fair Value on Nonrecurring Basis | Assets and liabilities that are measured at fair value on a nonrecurring basis are as follows (in thousands): Fair Value at Reporting Date Using Quoted Prices in Significant Active Markets for Significant Other Unobservable September 30, Identical Asset Observable Inputs Inputs Description 2018 (Level 1) (Level 2) (Level 3) Property and equipment, net $ 141 $ - $ - $ 141 Indefinite-lived intangibles 4,618 - - 4,618 Notes receivable 0 - - 0 Goodwill 495 - - 495 Other assets 760 760 - - Fair Value at Reporting Date Using Quoted Prices in Significant Active Markets for Significant Other Unobservable September 30, Identical Asset Observable Inputs Inputs Description 2017 (Level 1) (Level 2) (Level 3) Goodwill $ 4,572 $ - $ - $ 4,572 Property and equipment, net 4,678 - 4,678 - Indefinite-lived intangibles 25,740 - - 25,740 Definite-lived intangibles 600 - - 600 Unrealized Gain (Impairments) Recognized Years Ended September 30, Description 2018 2017 2016 Goodwill $ - $ (4,697 ) $ - Property and equipment, net (1,615 ) (385 ) - Indefinite-lived intangibles (3,121 ) (1,401 ) (2,092 ) Assets held for sale - - (1,400 ) Other assets 305 (1,156 ) - |
Selected Account Information (T
Selected Account Information (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Selected Account Information - Schedule Of Selling General And Administrative Expenses | |
Schedule of Accounts Receivable | The components of accounts receivable, net are as follows (in thousands): September 30, 2018 2017 Credit card receivables $ 2,273 $ 1,955 Income tax refundable 2,137 - ATM-in-transit 933 699 Other 1,977 533 $ 7,320 $ 3,187 |
Schedule of Accrued Liabilities | The components of accrued liabilities are as follows (in thousands): September 30, 2018 2017 Insurance $ 3,807 $ 3,160 Payroll and related costs 2,293 1,889 Property taxes 1,796 1,270 Sales and liquor taxes 1,883 990 Patron tax 532 801 Lawsuit settlement - 295 Unearned revenues 134 196 Income taxes - 549 Other 1,528 2,374 $ 11,973 $ 11,524 |
Schedule of Selling, General and Administrative Expenses | The components of selling, general and administrative expenses are as follows (in thousands): Years Ended September 30, 2018 2017 2016 Taxes and permits $ 9,545 $ 8,026 $ 8,089 Advertising and marketing 7,536 6,704 5,374 Supplies and services 5,344 4,873 4,815 Insurance 5,473 4,006 3,575 Rent 3,720 3,258 3,278 Legal 3,586 3,074 3,197 Utilities 2,969 2,824 2,871 Charge cards fees 3,244 2,783 2,252 Security 2,617 2,251 2,042 Accounting and professional fees 2,944 2,159 1,286 Repairs and maintenance 2,184 2,091 2,088 Other 4,662 4,726 4,208 $ 53,824 $ 46,775 $ 43,075 |
Components of Other Charges, Net | The components of other charges, net are as follows (in thousands): Years Ended September 30, 2018 2017 2016 Impairment of assets $ 4,736 $ 7,639 $ 3,492 Settlement of lawsuits 1,669 317 1,881 Loss (gain) on sale of assets 1,965 (542 ) 388 Gain on insurance (20 ) - - Gain on settlement of patron tax - (102 ) - $ 8,350 $ 7,312 $ 5,761 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property and equipment consisted of the following (in thousands): September 30, 2018 2017 Buildings and land $ 149,683 $ 122,996 Equipment 34,572 30,107 Leasehold improvements 30,414 31,969 Furniture 8,739 8,612 Total property and equipment 223,408 193,684 Less accumulated depreciation (51,005 ) (45,274 ) Property and equipment, net $ 172,403 $ 148,410 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill and Other Intangible Assets | Goodwill and other intangible assets consisted of the following (in thousands): September 30, 2018 2017 Indefinite useful lives: Goodwill $ 44,425 $ 43,866 Licenses 67,523 70,644 Tradename 2,215 2,215 114,163 116,725 Amortization Period Definite useful lives: Discounted leases 18 & 6 years 108 116 Non-compete agreements 5 years 588 681 Software 5 years 834 768 Distribution agreement 3 years 264 - 1,794 1,565 Total goodwill and other intangible assets $ 115,957 $ 118,290 |
Schedule of Indefinite-lived, Definite-lived Intangible Assets and Goodwill | 2018 2017 Definite- Lived Intangibles Indefinite- Lived Intangibles Goodwill Definite- Lived Intangibles Indefinite- Lived Intangibles Goodwill Beginning balance $ 1,565 $ 72,859 $ 43,866 $ 917 $ 51,849 $ 45,847 Intangibles acquired 483 - 559 865 22,411 2,716 Impairment - (3,121 ) - - (1,401 ) (4,697 ) Amortization (254 ) - - (217 ) - - Ending balance $ 1,794 $ 69,738 $ 44,425 $ 1,565 $ 72,859 $ 43,866 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long-term debt consisted of the following (in thousands): September 30, 2018 2017 Notes payable at 10-11%, mature August 2022 and December 2024 * $ - $ 2,358 Note payable at 7%, matures December 2019 * - 95 Notes payable at 5.5%, matures January 2023 * 1,071 1,157 Notes payable at 5.5%, matures January 2023 and January 2022 * - 4,510 Note payable refinanced at 6.25%, matures July 2018 * - 1,120 Note payable at 9.5%, matures August 2024 ** - 6,941 Notes payable at 9.5%, mature September 2024 * - 6,423 Notes payable at 5-7%, mature from 2018 to 2028 * - 1,679 7.45% note payable collateralized by aircraft, matures January 2019 - 2,740 Non-interest-bearing debt to State of Texas, matures May 2022, interest imputed at 9.6% 4,470 5,613 Note payable at 6.5%, matures January 2020 * - 4,484 Note payable at 6%, matures January 2019 * - 504 Notes payable at 5.5%, matures May 2020 * - 5,320 Note payable at 6%, matures May 2020 * - 1,037 Note payable at 5.25%, matures December 2024 * - 1,777 Note payable at 5.45%, matures July 2020 * 10,258 10,620 Note payable at the greater of 2% above prime or 5% (6.25% at September 30, 2017), matures October 2025 * - 4,303 Note payable at 5%, matures January 2026 * - 9,672 Note payable at 5.25%, matures March 2037 * - 4,651 Note payable at 6.25%, matures February 2018 * - 1,894 Note payable at 5.95%, matures August 2021 * 7,544 8,267 Note payable at 12%, matures October 2021 ** 6,219 9,671 Note payable at 4.99%, matures April 2037, collateralized by aircraft 912 941 Notes payable at 12%, mature May 2020 ** 2,940 5,440 Note payable at 5%, matures May 2018 (amended to 8% interest rate and May 2019 maturity) ** 3,025 5,000 Note payable at 8%, matures May 2029 ** 14,464 15,291 Note payable at 5%, matures May 2038 * - 3,441 Note payable initially at 5.75%, matures December 2027 * 58,826 - Note payable at 5.95%, matures December 2032 6,877 - Note payable at 5%, matures August 2029 * 4,257 - Note payable at 5%, matures April 2020 * 3,079 - Note payable initially at prime plus 0.5% with a 5.5% floor, matures September 2030 * 960 - Note payable at 8%, matures May 2023 * 945 - Note payable at 5.95%, matures August 2039 * 3,168 - Note payable at 12%, matures August 2021 ** 4,000 - Note payable at 9%, matures September 2028 * 1,350 - Note payable at 6.1%, matures September 2019 * 1,500 - Note payable at 5.95%, matures September 2023 * 1,550 - Note payable at 7%, matures May 2019 ** 5,000 - Total debt 142,415 124,949 Less unamortized debt issuance costs (1,788 ) (597 ) Less current portion (19,047 ) (17,440 ) Total long-term debt $ 121,580 $ 106,912 * Collateralized by real estate ** Collateralized by stock in subsidiary |
Schedule of Long-term Debt Instruments | Following is a summary of long-term debt at September 30 (in thousands): 2018 2017 Secured by real estate $ 94,509 $ 73,312 Secured by stock in subsidiary 35,648 42,343 Secured by other assets 7,788 3,681 Unsecured 4,470 5,613 $ 142,415 $ 124,949 |
Schedule of Maturities of Long-term Debt | Future maturities of long-term debt consist of the following, net of debt discount (in thousands): Regular Balloon Total Amortization Payments Payments 2019 $ 14,522 $ 4,525 $ 19,047 2020 7,543 6,019 13,562 2021 4,142 7,779 11,921 2022 10,818 - 10,818 2023 6,948 1,314 8,262 Thereafter 32,257 46,548 78,805 $ 76,230 $ 66,185 $ 142,415 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense (Benefit) | Income tax expense (benefit) consisted of the following (in thousands): Years Ended September 30, 2018 2017 2016 Current Federal $ 2,438 $ 2,989 $ 260 State and local 1,219 1,097 970 Total current income tax expense 3,657 4,086 1,230 Deferred Federal (8,096 ) 1,545 1,110 State and local 1,321 728 33 Total deferred income tax expense (benefit) (6,775 ) 2,273 1,143 Total income tax expense (benefit) $ (3,118 ) $ 6,359 $ 2,373 |
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense (benefit) differs from the “expected” income tax expense computed by applying the U.S. federal statutory rate to earnings before income taxes for the years ended September 30 as a result of the following (in thousands): Years Ended September 30, 2018 2017 2016 Computed expected income tax expense $ 4,576 $ 4,979 $ 4,366 State income taxes, net of federal benefit 804 291 730 Deferred taxes on subsidiaries acquired/sold 709 - (841 ) Permanent differences 85 108 (109 ) Change in deferred tax liability rate (8,832 ) 1,329 - Reserve for uncertain tax position - 406 240 Tax credits (808 ) (564 ) (2,013 ) Other 348 (190 ) - Total income tax expense (benefit) $ (3,118 ) $ 6,359 $ 2,373 |
Schedule of Deferred Tax Assets and Liabilities | The significant components of the Company’s deferred tax assets and liabilities were as follows (in thousands): September 30, 2018 2017 Deferred tax assets: Patron tax $ 948 $ 1,954 Capital loss carryforwards 763 - Other - 231 1,711 2,185 Deferred tax liabilities: Intangibles (13,110 ) (18,549 ) Property and equipment (7,206 ) (9,177 ) Other (947 ) - (21,263 ) (27,726 ) Net deferred tax liability $ (19,552 ) $ (25,541 ) |
Schedule of Uncertain Tax Positions | The following table shows the changes in the Company’s uncertain tax positions (in thousands): Years Ended September 30, 2018 2017 2016 Balance at beginning of year $ 865 $ 240 $ - Additions for tax positions of prior years - 625 240 Released in current year (700 ) - - Balance at end of year $ 165 $ 865 $ 240 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | Undiscounted future minimum annual lease obligations as of September 30, 2018 are as follows (in thousands): 2019 $ 2,796 2020 2,878 2021 2,792 2022 2,744 2023 2,576 Thereafter 21,922 Total future minimum lease obligations $ 35,708 |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Hollywood Showclub [Member] | |
Schedule of Business Acquisition Fair Values Assets and Liabilities | The following information summarizes the allocation of fair values assigned to the assets at acquisition date (in thousands): Land and building $ 2,320 Furniture and equipment 141 Noncompete 200 Other assets 74 Goodwill 1,539 Accrued liability (75 ) Net assets $ 4,199 |
Scarlett's Cabaret Miami [Member] | |
Schedule of Business Acquisition Fair Values Assets and Liabilities | The following information summarizes the allocation of fair values assigned to the assets at acquisition date (in thousands): Inventory $ 109 Leasehold improvements 1,222 Furniture and equipment 633 Noncompete 400 SOB license 20,196 Tradename 2,215 Goodwill 1,177 Net assets $ 25,952 |
Quarterly Results of Operatio_2
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | The following tables summarize unaudited quarterly data for fiscal 2018, 2017, and 2016 (in thousands, except per share data): For the Three Months Ended December 31, 2017 March 31, 2018 June 30, 2018 September 30, 2018 Revenues $ 41,212 $ 41,226 $ 42,634 $ 40,676 Income from operations(1) $ 9,140 $ 8,231 $ 9,492 $ 1,533 Net income (loss) attributable to RCIHH shareholders(1) $ 14,311 $ 4,685 $ 5,389 $ (2,672 ) Earnings (loss) per share (1) Basic $ 1.47 $ 0.48 $ 0.55 $ (0.27 ) Diluted $ 1.47 $ 0.48 $ 0.55 $ (0.27 ) Weighted average number of common shares outstanding Basic 9,719 9,719 9,719 9,719 Diluted 9,719 9,719 9,719 9,719 For the Three Months Ended December 31, 2016 March 31, 2017 June 30, 2017 September 30, 2017 Revenues $ 33,739 $ 34,518 $ 37,429 $ 39,210 Income from operations(2) $ 6,333 $ 7,487 $ 7,883 $ 1,436 Net income (loss) attributable to RCIHH shareholders(2) $ 2,898 $ 3,759 $ 3,841 $ (2,239 ) Earnings (loss) per share(2) Basic $ 0.30 $ 0.39 $ 0.40 $ (0.23 ) Diluted $ 0.30 $ 0.39 $ 0.40 $ (0.23 ) Weighted average number of common shares outstanding Basic 9,768 9,719 9,719 9,719 Diluted 9,814 9,721 9,719 9,719 For the Three Months Ended December 31, 2015 March 31, 2016 June 30, 2016 September 30, 2016 Revenues $ 33,475 $ 34,396 $ 33,952 $ 33,037 Income from operations(3) $ 5,717 $ 7,550 $ 6,657 $ 769 Net income attributable to RCIHH shareholders(3) $ 2,552 $ 5,505 $ 2,653 $ 508 Earnings per share(3) Basic $ 0.25 $ 0.55 $ 0.27 $ 0.05 Diluted $ 0.25 $ 0.54 $ 0.27 $ 0.05 Weighted average number of common shares outstanding Basic 10,296 10,013 9,906 9,839 Diluted 10,635 10,215 10,047 9,840 (1) Fiscal year 2018 income from operations, net income attributable to RCIHH shareholders, and earnings per share included the impact of a $1.6 million loss on disposition in the second quarter, a $4.7 million in asset impairments ($1.6 million in the second quarter and $3.2 million in the fourth quarter), and a $9.7 million deferred income tax benefit related to the revaluation of deferred tax assets and liabilities in the first quarter. Quarterly effective income tax expense (benefit) rate was (134.3%), 24.2%, 25.3%, and 202.2% from first to fourth quarter, respectively. (2) Fiscal year 2017 income from operations, net income attributable to RCIHH shareholders, and earnings per share included the impact of $7.6 million in asset impairment ($1.4 million in the third quarter and $6.2 in the fourth quarter) and $1.3 million additional income tax expense due to change in deferred tax liability rate in the fourth quarter. Quarterly effective income tax expense rate was 33.3%, 33.7%, 32.9%, and 99.6% from first to fourth quarter, respectively. (3) Fiscal year 2016 income from operations, net income attributable to RCIHH shareholders, and earnings per share included the impact of $3.5 million in asset impairment in the fourth quarter; and $1.9 million in settlement of lawsuits (significant of which were $540,000 in the first quarter and $1.1 million in the fourth quarter). Quarterly effective income tax expense (benefit) rate was 35.9%, 5.2%, 43.0%, and (109.0%) from first to fourth quarter, respectively. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Below is the financial information related to the Company’s reportable segments (in thousands): 2018 2017 2016 Revenues Nightclubs $ 140,060 $ 124,687 $ 113,941 Bombshells 24,094 18,830 18,690 Other 1,594 1,379 2,229 $ 165,748 $ 144,896 $ 134,860 Income (loss) from operations Nightclubs $ 44,458 $ 35,138 $ 33,211 Bombshells 2,040 3,084 1,152 Other (252 ) (522 ) (2,650 ) General corporate (17,850 ) (14,561 ) (11,020 ) $ 28,396 $ 23,139 $ 20,693 Capital expenditures Nightclubs $ 2,052 $ 5,142 $ 22,136 Bombshells 22,522 4,489 609 Other 33 14 10 General corporate 656 1,604 5,393 $ 25,263 $ 11,249 $ 28,148 Depreciation and amortization Nightclubs $ 5,404 $ 5,186 $ 5,008 Bombshells 1,265 1,025 1,072 Other 179 50 684 General corporate 874 659 564 $ 7,722 $ 6,920 $ 7,328 September 30, 2018 September 30, 2017 September 30, 2016 Total assets Nightclubs $ 253,169 $ 254,432 $ 244,332 Bombshells 39,560 18,870 8,378 Other 1,978 780 896 General corporate 35,859 25,802 22,455 $ 330,566 $ 299,884 $ 276,061 |
Schedule of Disaggregation of Segment Revenues | A further disaggregation by revenue line item of segment revenues is as follows: Nightclubs Bombshells Other Fiscal 2018: Sales of alcoholic beverages $ 54,800 $ 14,320 $ - Sales of food and merchandise 12,732 9,701 - Service revenues 64,054 50 - Other revenues 8,474 23 1,594 $ 140,060 $ 24,094 $ 1,594 Fiscal 2017: Sales of alcoholic beverages $ 48,655 $ 11,784 $ - Sales of food and merchandise 11,346 6,910 - Service revenues 58,013 119 - Other revenues 6,673 17 1,379 $ 124,687 $ 18,830 $ 1,379 Fiscal 2016: Sales of alcoholic beverages $ 45,677 $ 11,539 $ - Sales of food and merchandise 10,767 7,133 - Service revenues 51,276 - - Other revenues 6,221 18 2,229 $ 113,941 $ 18,690 $ 2,229 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 29, 2016 | Aug. 31, 2011 | |
Interest expense related debt | $ 319 | $ 43 | $ 59 | |||||||
Goodwill impairment | $ 3,300 | $ 4,697 | ||||||||
Property held for sale | $ 1,600 | $ 385 | $ 1,500 | $ 2,200 | $ 1,400 | |||||
Equity method investment, ownership percentage | 51.00% | 51.00% | 31.00% | |||||||
Equity method investment, additional information | Investments in companies in which the Company owns less than a 20% interest, or where the Company does not exercise significant influence, are accounted for at cost and reviewed for any impairment. | |||||||||
Carrying value of the cost-method investment | $ 0 | $ 0 | ||||||||
Cost-method investments, other than temporary impairment | $ 0 | |||||||||
Antidilutive securities | 0 | 72,400 | ||||||||
Convertible debt | 0 | 0 | 500 | $ 0 | $ 0 | $ 500 | ||||
Debt instrument, convertible, conversion price | $ 10 | |||||||||
Available-for-sale securities | $ 760 | $ 80 | 760 | 80 | ||||||
Convertible Debt [Member] | ||||||||||
Dilutive convertible debentures | 0 | 900 | 500 | |||||||
Drink Robust, Inc. [Member] | ||||||||||
Carrying value of the cost-method investment | $ 1,200 | 1,200 | ||||||||
Cost-method investments, other than temporary impairment | 1,200 | |||||||||
Drink Robust, Inc. [Member] | ||||||||||
Noncontrolling interest, ownership percentage by parent | 20.00% | |||||||||
SOB Licenses [Member] | ||||||||||
Impairment charges | $ 3,100 | $ 1,400 | $ 2,100 | |||||||
Minimum [Member] | ||||||||||
Equity method investment, ownership percentage | 20.00% | 20.00% | ||||||||
Debt instrument, convertible, conversion price | $ 10 | $ 10 | ||||||||
Maximum [Member] | ||||||||||
Equity method investment, ownership percentage | 50.00% | 50.00% | ||||||||
Debt instrument, convertible, conversion price | $ 12.50 | $ 12.50 | ||||||||
Buildings [Member] | Minimum [Member] | ||||||||||
Property, plant and equipment, useful life | 29 years | |||||||||
Buildings [Member] | Maximum [Member] | ||||||||||
Property, plant and equipment, useful life | 40 years | |||||||||
Furniture and Equipment [Member] | Minimum [Member] | ||||||||||
Property, plant and equipment, useful life | 5 years | |||||||||
Furniture and Equipment [Member] | Maximum [Member] | ||||||||||
Property, plant and equipment, useful life | 7 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Earnings Per Share Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||
Net income attributable to RCIHH shareholders - basic | $ (2,672) | [1] | $ 5,389 | [1] | $ 4,685 | [1] | $ 14,311 | [1] | $ (2,239) | [2] | $ 3,841 | [2] | $ 3,759 | [2] | $ 2,898 | [2] | $ 508 | [3] | $ 2,653 | [3] | $ 5,505 | [3] | $ 2,552 | [3] | $ 21,713 | $ 8,259 | $ 11,218 |
Adjustment to net income from assumed conversion of debentures | 5 | 153 | |||||||||||||||||||||||||
Adjusted net income attributable to RCIHH shareholders - diluted | $ 21,713 | $ 8,264 | $ 11,371 | ||||||||||||||||||||||||
Weighted average number of common shares outstanding - basic | 9,719,000 | 9,719,000 | 9,719,000 | 9,719,000 | 9,719,000 | 9,719,000 | 9,719,000 | 9,768,000 | 9,839,000 | 9,906,000 | 10,013,000 | 10,296,000 | 9,719,000 | 9,731,000 | 9,941,000 | ||||||||||||
Effect of potentially dilutive restricted stock, warrants and options | 60,000 | ||||||||||||||||||||||||||
Effect of potentially dilutive convertible debentures | 12,000 | 228,000 | |||||||||||||||||||||||||
Adjusted weighted average number of common shares outstanding - diluted | 9,719,000 | 9,719,000 | 9,719,000 | 9,719,000 | 9,719,000 | 9,719,000 | 9,721,000 | 9,814,000 | 9,840,000 | 10,047,000 | 10,215,000 | 10,635,000 | 9,719,000 | 9,743,000 | 10,229,000 | ||||||||||||
Basic earnings per share | $ (0.27) | [1] | $ 0.55 | [1] | $ 0.48 | [1] | $ 1.47 | [1] | $ (0.23) | [2] | $ 0.40 | [2] | $ 0.39 | [2] | $ 0.30 | [2] | $ 0.05 | [3] | $ 0.27 | [3] | $ 0.55 | [3] | $ 0.25 | [3] | $ 2.23 | $ 0.85 | $ 1.13 |
Diluted earnings per share | $ (0.27) | [1] | $ 0.55 | [1] | $ 0.48 | [1] | $ 1.47 | [1] | $ (0.23) | [2] | $ 0.40 | [2] | $ 0.39 | [2] | $ 0.30 | [2] | $ 0.05 | [3] | $ 0.27 | [3] | $ 0.54 | [3] | $ 0.25 | [3] | $ 2.23 | $ 0.85 | $ 1.11 |
[1] | Fiscal year 2018 income from operations, net income attributable to RCIHH shareholders, and earnings per share included the impact of a $1.6 million loss on disposition in the second quarter, a $4.7 million in asset impairments ($1.6 million in the second quarter and $3.2 million in the fourth quarter), and a $9.7 million deferred income tax benefit related to the revaluation of deferred tax assets and liabilities in the first quarter. Quarterly effective income tax expense (benefit) rate was (134.3%), 24.2%, 25.3%, and 202.2% from first to fourth quarter, respectively. | ||||||||||||||||||||||||||
[2] | Fiscal year 2017 income from operations, net income attributable to RCIHH shareholders, and earnings per share included the impact of $7.6 million in asset impairment ($1.4 million in the third quarter and $6.2 in the fourth quarter) and $1.3 million additional income tax expense due to change in deferred tax liability rate in the fourth quarter. Quarterly effective income tax expense rate was 33.3%, 33.7%, 32.9%, and 99.6% from first to fourth quarter, respectively. | ||||||||||||||||||||||||||
[3] | Fiscal year 2016 income from operations, net income attributable to RCIHH shareholders, and earnings per share included the impact of $3.5 million in asset impairment in the fourth quarter; and $1.9 million in settlement of lawsuits (significant of which were $540,000 in the first quarter and $1.1 million in the fourth quarter). Quarterly effective income tax expense (benefit) rate was 35.9%, 5.2%, 43.0%, and (109.0%) from first to fourth quarter, respectively. |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Assets and Liabilities Measured at Fair Value on Nonrecurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 |
Property and equipment, net | $ 172,403 | $ 148,410 | |
Indefinite-lived intangibles | 4,618 | 25,740 | |
Notes receivable | 0 | ||
Goodwill | 44,425 | 43,866 | $ 45,847 |
Other assets | 760 | ||
Definite-lived intangibles, net | 1,794 | 1,565 | 917 |
Assets held for sale | 2,000 | ||
Fair Value, Measurements, Nonrecurring [Member] | |||
Property and equipment, net | (1,615) | (385) | |
Indefinite-lived intangibles | (3,121) | (1,401) | (2,092) |
Goodwill | (4,697) | ||
Other assets | 305 | (1,156) | |
Assets held for sale | $ (1,400) | ||
Level 1 [Member] | |||
Property and equipment, net | |||
Indefinite-lived intangibles | |||
Notes receivable | |||
Goodwill | |||
Other assets | 760 | ||
Definite-lived intangibles, net | |||
Level 2 [Member] | |||
Property and equipment, net | 4,678 | ||
Indefinite-lived intangibles | |||
Notes receivable | |||
Goodwill | |||
Other assets | |||
Definite-lived intangibles, net | |||
Level 3 [Member] | |||
Property and equipment, net | 141 | ||
Indefinite-lived intangibles | 4,618 | 25,740 | |
Notes receivable | 0 | ||
Goodwill | 495 | 4,572 | |
Other assets | |||
Definite-lived intangibles, net | $ 600 |
Selected Account Information -
Selected Account Information - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Selected Account Information - Schedule Of Selling General And Administrative Expenses | ||
Credit card receivables | $ 2,273 | $ 1,955 |
Income tax refundable | 2,137 | |
ATM-in-transit | 933 | 699 |
Other | 1,977 | 533 |
Accounts receivable, net | $ 7,320 | $ 3,187 |
Selected Account Information _2
Selected Account Information - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Selected Account Information - Schedule Of Selling General And Administrative Expenses | ||
Insurance | $ 3,807 | $ 3,160 |
Payroll and related costs | 2,293 | 1,889 |
Property taxes | 1,796 | 1,270 |
Sales and liquor taxes | 1,883 | 990 |
Patron tax | 532 | 801 |
Lawsuit settlement | 295 | |
Unearned revenues | 134 | 196 |
Income taxes | 549 | |
Other | 1,528 | 2,374 |
Accrued liabilities | $ 11,973 | $ 11,524 |
Selected Account Information _3
Selected Account Information - Schedule of Selling, General and Administrative Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Selected Account Information - Schedule Of Selling General And Administrative Expenses | |||
Taxes and permits | $ 9,545 | $ 8,026 | $ 8,089 |
Advertising and marketing | 7,536 | 6,704 | 5,374 |
Supplies and services | 5,344 | 4,873 | 4,815 |
Insurance | 5,473 | 4,006 | 3,575 |
Rent | 3,720 | 3,258 | 3,278 |
Legal | 3,586 | 3,074 | 3,197 |
Utilities | 2,969 | 2,824 | 2,871 |
Charge cards fees | 3,244 | 2,783 | 2,252 |
Security | 2,617 | 2,251 | 2,042 |
Accounting and professional fees | 2,944 | 2,159 | 1,286 |
Repairs and maintenance | 2,184 | 2,091 | 2,088 |
Other | 4,662 | 4,726 | 4,208 |
Selling, general and administrative expenses | $ 53,824 | $ 46,775 | $ 43,075 |
Selected Account Information _4
Selected Account Information - Components of Other Charges, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Sep. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 | Jun. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Selected Account Information - Schedule Of Selling General And Administrative Expenses | |||||||
Impairment of assets | $ 3,200 | $ 1,600 | $ 6,200 | $ 1,400 | $ 4,736 | $ 7,639 | $ 3,492 |
Settlement of lawsuits | 1,669 | 317 | 1,881 | ||||
Loss (gain) on sale of assets | $ (1,600) | 2,162 | (838) | 388 | |||
Gain on insurance | (20) | ||||||
Gain on settlement of patron tax | (102) | ||||||
Other charges | $ 8,350 | $ 7,312 | $ 5,761 |
Property and Equipment (Details
Property and Equipment (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |||
Construction in progress, gross | $ 6,400 | $ 1,600 | |
Depreciation expense | $ 7,500 | $ 6,700 | $ 6,600 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 223,408 | $ 193,684 |
Less accumulated depreciation | (51,005) | (45,274) |
Property and equipment, net | 172,403 | 148,410 |
Buildings and Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 149,683 | 122,996 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 34,572 | 30,107 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 30,414 | 31,969 |
Furniture [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 8,739 | $ 8,612 |
Assets Held for Sale (Details N
Assets Held for Sale (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Jun. 06, 2017 | |
Assets held for sale | $ 2,902 | $ 5,759 | $ 7,700 | $ 2,902 | $ 5,759 | $ 7,700 | $ 1,500 | |||||
Proceeds from properties held for sale | 1,600 | 385 | $ 1,500 | $ 2,200 | $ 1,400 | |||||||
Gain loss on sale of properties | 900 | $ 116 | ||||||||||
Asset impairment charges | 3,200 | $ 1,600 | 6,200 | 1,400 | $ 4,736 | 7,639 | $ 3,492 | |||||
Buildings and Land [Member] | ||||||||||||
Assets held for sale | $ 5,200 | |||||||||||
Two Properties [Member] | ||||||||||||
Assets held for sale | $ 4,300 | $ 4,300 | ||||||||||
Proceeds from properties held for sale | 7,200 | |||||||||||
One Property [Member] | ||||||||||||
Proceeds from properties held for sale | $ 675 | |||||||||||
Gain loss on sale of properties | $ 481 | |||||||||||
Real Estate Property [Member] | ||||||||||||
Proceeds from properties held for sale | $ 2,000 | |||||||||||
Four Real Estate Properties [Member] | ||||||||||||
Proceeds from properties held for sale | $ 2,500 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Impairment of intangible assets, indefinite-lived (excluding goodwill) | $ 5,900 | $ 6,900 | $ 2,100 |
Accumulated impairment of goodwill | 3,900 | 5,400 | |
Finite-lived intangible assets, amortization expense, 2019 | 466 | ||
Finite-lived intangible assets, amortization expense, 2020 | 443 | ||
Finite-lived intangible assets, amortization expense, 2021 | 367 | ||
Finite-lived intangible assets, amortization expense, 2022 | 261 | ||
Finite-lived intangible assets, amortization expense, 2023 | 186 | ||
Finite-lived intangible assets, amortization expense, there after | 71 | ||
Goodwill and intangible asset impairment | 4,700 | ||
SOB Licenses [Member] | |||
Goodwill and intangible asset impairment | $ 3,100 | $ 1,400 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Schedule of Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | May 25, 2018 | Sep. 30, 2016 | |
Goodwill | $ 44,425 | $ 43,866 | $ 45,847 | |
Licenses | 67,523 | 70,644 | ||
Tradename | 2,215 | 2,215 | ||
Indefinite Intangible Assets, Net, Total | 114,163 | 116,725 | ||
Finite-Lived Intangible Assets, Net, Total | 1,794 | 1,565 | ||
Total goodwill and other intangible assets | 115,957 | 118,290 | $ 495 | |
Discounted Leases [Member] | ||||
Finite-Lived Intangible Assets, Net, Total | $ 108 | $ 116 | ||
Discounted Leases [Member] | Maximum [Member] | ||||
Finite-Lived Intangible Asset, Useful Life | 18 years | 18 years | ||
Discounted Leases [Member] | Minimum [Member] | ||||
Finite-Lived Intangible Asset, Useful Life | 6 years | 6 years | ||
Non-compete Agreements [Member] | ||||
Finite-Lived Intangible Asset, Useful Life | 5 years | 5 years | ||
Finite-Lived Intangible Assets, Net, Total | $ 588 | $ 681 | ||
Software [Member] | ||||
Finite-Lived Intangible Asset, Useful Life | 5 years | 5 years | ||
Finite-Lived Intangible Assets, Net, Total | $ 834 | $ 768 | ||
Distribution Agreement [Member] | ||||
Finite-Lived Intangible Asset, Useful Life | 3 years | 3 years | ||
Finite-Lived Intangible Assets, Net, Total | $ 264 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Schedule of Indefinite-lived, Definite-lived Intangible Assets and Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Definite- Lived Intangibles, Beginning balance | $ 1,565 | $ 917 | ||
Definite- Lived Intangibles, Intangibles acquired | 483 | 865 | ||
Definite- Lived Intangibles, Impairment | ||||
Definite- Lived Intangibles, Amortization | (254) | (217) | ||
Definite- Lived Intangibles, Ending balance | $ 1,565 | 1,794 | 1,565 | $ 917 |
Indefinite-Lived Intangibles, Beginning balance | 72,859 | 51,849 | ||
Indefinite-Lived Intangibles, Intangibles acquired | 22,411 | |||
Indefinite-Lived Intangibles, Impairment | (3,121) | (1,401) | ||
Indefinite-Lived Intangibles, Amortization | ||||
Indefinite-Lived Intangibles, Ending balance | 72,859 | 69,738 | 72,859 | 51,849 |
Goodwill, Beginning balance | 43,866 | 45,847 | ||
Goodwill, Intangibles acquired | 559 | 2,716 | ||
Goodwill, Impairment | (3,300) | (4,697) | ||
Goodwill, Amortization | ||||
Goodwill, Ending balance | $ 43,866 | $ 44,425 | $ 43,866 | $ 45,847 |
Long-Term Debt (Details Narrati
Long-Term Debt (Details Narrative) | Sep. 26, 2018USD ($) | Sep. 25, 2018USD ($) | Sep. 17, 2018USD ($) | Sep. 14, 2018USD ($) | Sep. 06, 2018USD ($) | Aug. 28, 2018USD ($) | Aug. 15, 2018USD ($) | May 25, 2018USD ($) | May 08, 2018USD ($) | Apr. 24, 2018USD ($) | Feb. 20, 2018USD ($) | Feb. 15, 2018USD ($) | Dec. 14, 2017USD ($) | Dec. 14, 2017USD ($) | Dec. 07, 2017USD ($) | Jun. 04, 2017USD ($) | May 08, 2017USD ($) | May 01, 2017USD ($) | Oct. 05, 2016USD ($) | Jul. 30, 2015USD ($)$ / shares | May 04, 2015USD ($) | Jan. 13, 2015USD ($)a | Dec. 31, 2013USD ($) | Sep. 30, 2013USD ($) | Aug. 31, 2016USD ($) | Jan. 31, 2016USD ($) | Oct. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Jan. 31, 2012USD ($) | Aug. 31, 2011 | Apr. 30, 2010USD ($) | Sep. 30, 2018USD ($)$ / shares | Sep. 30, 2015USD ($) | Sep. 30, 2017USD ($) | May 04, 2017USD ($) | Jan. 13, 2017 |
Notes payable | $ 1,000,000 | $ 9,000,000 | $ 1,500,000 | |||||||||||||||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 8.00% | 5.25% | 12.00% | 5.95% | 2.00% | 10.00% | 11.00% | |||||||||||||||||||||||||||||
Debt instrument, payment terms | The note bore interest at the rate of 10% per annum and matured on August 1, 2014. The note was payable with one initial payment of interest only due January 1, 2012, and, thereafter in ten interest-only quarterly payments. The principal was payable on August 1, 2014. The note was extended in 2014 under the same terms until maturity in October 2017. | |||||||||||||||||||||||||||||||||||
Debt instrument, periodic payment | $ 7,625 | $ 250,000 | $ 118,817 | $ 100,062 | $ 30,244 | |||||||||||||||||||||||||||||||
Payments to acquire real estate | $ 825,000 | $ 1,000,000 | ||||||||||||||||||||||||||||||||||
Total debt | $ 9,900,000 | $ 142,415,000 | $ 124,949,000 | |||||||||||||||||||||||||||||||||
Long-term debt, gross | $ 6,100,000 | 2,300,000 | ||||||||||||||||||||||||||||||||||
Loans payable to bank, noncurrent | 4,600,000 | |||||||||||||||||||||||||||||||||||
Debt instrument, term | 1 year | 24 months | 5 years | 10 years | ||||||||||||||||||||||||||||||||
Sale of stock, consideration received on transaction | $ 2,000,000 | |||||||||||||||||||||||||||||||||||
Monthly installment of settlement loss | $ 119,000 | |||||||||||||||||||||||||||||||||||
Amount refinanced through debt | $ 8,000,000 | |||||||||||||||||||||||||||||||||||
Payments of loan costs | $ 22,000 | |||||||||||||||||||||||||||||||||||
Debt instrument due date | Feb. 15, 2038 | Aug. 1, 2014 | ||||||||||||||||||||||||||||||||||
Available borrowing capacity | 4,300,000 | |||||||||||||||||||||||||||||||||||
Loan from bank | $ 4,000,000 | $ 3,000,000 | ||||||||||||||||||||||||||||||||||
Fixed interest maturity description | The bank note bears interest at 5.25% adjusted after 36 months to prime plus 1% with a floor of 5.2% and matures on February 15, 2038. The bank note is payable interest-only during the first 18 months. | |||||||||||||||||||||||||||||||||||
Debt amortization period | 20 years | |||||||||||||||||||||||||||||||||||
Debt instrument, description | The Company will pay monthly installments of principal of $250,000, applied to the first note, until such time as the loan-to-value ratio of the Properties, based upon reduced principal balance of the New Loan and the then current value of the Properties, is not greater than 65%. | |||||||||||||||||||||||||||||||||||
Purchase of land | $ 5,500,000 | $ 4,000,000 | ||||||||||||||||||||||||||||||||||
Fiscal 2018 [Member] | ||||||||||||||||||||||||||||||||||||
Delay in balloon payments originally scheduled, worth | 2,900,000 | |||||||||||||||||||||||||||||||||||
Fiscal 2020 [Member] | ||||||||||||||||||||||||||||||||||||
Delay in balloon payments originally scheduled, worth | 19,400,000 | |||||||||||||||||||||||||||||||||||
Fiscal 2021 [Member] | ||||||||||||||||||||||||||||||||||||
Delay in balloon payments originally scheduled, worth | $ 5,300,000 | |||||||||||||||||||||||||||||||||||
Sellers Financing [Member] | ||||||||||||||||||||||||||||||||||||
Debt instrument, periodic payment | $ 65,355 | |||||||||||||||||||||||||||||||||||
Debt instrument, interest rate, effective percentage | 6.00% | |||||||||||||||||||||||||||||||||||
Sale of stock, consideration received on transaction | $ 1,800,000 | |||||||||||||||||||||||||||||||||||
Aircraft [Member] | ||||||||||||||||||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 7.45% | |||||||||||||||||||||||||||||||||||
Total debt | $ 3,600,000 | |||||||||||||||||||||||||||||||||||
Lender One [Member] | ||||||||||||||||||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 10.00% | |||||||||||||||||||||||||||||||||||
Debt instrument, periodic payment | $ 13,215 | |||||||||||||||||||||||||||||||||||
Total debt | $ 1,000,000 | |||||||||||||||||||||||||||||||||||
Debt instrument, term | 10 years | |||||||||||||||||||||||||||||||||||
Sellers Financing [Member] | ||||||||||||||||||||||||||||||||||||
Sale of stock, consideration received on transaction | $ 1,400,000 | |||||||||||||||||||||||||||||||||||
Lender [Member] | ||||||||||||||||||||||||||||||||||||
Notes payable | $ 3,400,000 | |||||||||||||||||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 5.95% | |||||||||||||||||||||||||||||||||||
Debt instrument, periodic payment | $ 59,869 | |||||||||||||||||||||||||||||||||||
Debt instrument, term | 15 years | |||||||||||||||||||||||||||||||||||
Proceeds from issuance of debt | $ 7,100,000 | |||||||||||||||||||||||||||||||||||
Bank Lender [Member] | ||||||||||||||||||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 7.00% | 6.10% | 5.95% | |||||||||||||||||||||||||||||||||
Debt instrument, periodic payment | $ 200,000 | $ 11,138 | ||||||||||||||||||||||||||||||||||
Debt instrument, term | 12 years | 10 years | ||||||||||||||||||||||||||||||||||
Payments of loan costs | $ 40,000 | |||||||||||||||||||||||||||||||||||
Debt instrument due date | May 31, 2019 | |||||||||||||||||||||||||||||||||||
Available borrowing capacity | $ 5,000,000 | $ 2,900,000 | ||||||||||||||||||||||||||||||||||
Notes payable description | The first 24 months will be interest-only payments, after which monthly payments of principal and interest will be made based on a 20-year amortization. | The 10-year note payable has an initial interest rate of 5.95% until after five years when the interest rate is adjusted to the U.S. Treasury rate plus 3.5%, with a 5.95% floor. | ||||||||||||||||||||||||||||||||||
Debt amortization period | 20 years | |||||||||||||||||||||||||||||||||||
Purchase of land | $ 960,000 | |||||||||||||||||||||||||||||||||||
Payments to acquired business | $ 1,500,000 | $ 1,550,000 | ||||||||||||||||||||||||||||||||||
Residential Real Estate [Member] | ||||||||||||||||||||||||||||||||||||
Debt instrument, periodic payment | $ 25,660 | |||||||||||||||||||||||||||||||||||
Payments to acquire real estate | 3,230,000 | |||||||||||||||||||||||||||||||||||
Debt issued for real estate purchase | $ 2,600,000 | |||||||||||||||||||||||||||||||||||
Debt instrument, maturity date, description | The notes mature from 2018 to 2028 | |||||||||||||||||||||||||||||||||||
Real Estate [Member] | ||||||||||||||||||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 5.25% | |||||||||||||||||||||||||||||||||||
Debt instrument, periodic payment | $ 13,270 | |||||||||||||||||||||||||||||||||||
Long-term debt, gross | 2,100,000 | |||||||||||||||||||||||||||||||||||
Loans payable to bank, noncurrent | $ 2,000,000 | |||||||||||||||||||||||||||||||||||
Debt instrument, term | 10 years | |||||||||||||||||||||||||||||||||||
Construction Loan Agreement [Member] | ||||||||||||||||||||||||||||||||||||
Debt instrument, term | 20 years | |||||||||||||||||||||||||||||||||||
Proceeds from advances for construction | $ 2,200,000 | |||||||||||||||||||||||||||||||||||
Loan Agreement [Member] | ||||||||||||||||||||||||||||||||||||
Loan from bank | $ 1,900,000 | |||||||||||||||||||||||||||||||||||
Jaguars Holdings, Inc. [Member] | Real Estate Agreement [Member] | ||||||||||||||||||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 9.50% | |||||||||||||||||||||||||||||||||||
Debt instrument, payment terms | The note bears interest at the rate of 9.5 %, is payable in 143 equal monthly installments | |||||||||||||||||||||||||||||||||||
Business acquisitions cost of acquired entity purchase price | $ 10,100,000 | |||||||||||||||||||||||||||||||||||
Business acquisition cost of acquired entity discounted price | 9,600,000 | |||||||||||||||||||||||||||||||||||
Business acquisitions cost of acquired entity cash paid | 350,000 | |||||||||||||||||||||||||||||||||||
Business acquisitions purchase price allocation notes payable and long term debt | 9,100,000 | |||||||||||||||||||||||||||||||||||
Business acquisition purchase price allocation one time payment in twelve years | 650,000 | |||||||||||||||||||||||||||||||||||
Debt instrument unamortized discount | 431,252 | |||||||||||||||||||||||||||||||||||
Aircraft [Member] | ||||||||||||||||||||||||||||||||||||
Debt instrument, periodic payment | $ 40,653 | |||||||||||||||||||||||||||||||||||
Debt instrument, maturity date, description | January 2,019 | |||||||||||||||||||||||||||||||||||
Payments of loan costs | $ 764,000 | |||||||||||||||||||||||||||||||||||
Write off of debt issuance cost to interest expense | 279,000 | |||||||||||||||||||||||||||||||||||
Prepayment of debt issuance cost | 612,500 | |||||||||||||||||||||||||||||||||||
Prepayment penalties paid | $ 543,000 | |||||||||||||||||||||||||||||||||||
Notes Are Payable Over Eleven Years Series One [Member] | ||||||||||||||||||||||||||||||||||||
Notes payable | $ 6,500,000 | |||||||||||||||||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 5.50% | |||||||||||||||||||||||||||||||||||
Debt instrument, payment terms | The notes are payable over eleven years at $12,256 per month including interest and have an adjustable interest rate of 5.5%. The rate adjusts to prime plus 2.5% in the 61 st month, not to exceed 9%. | |||||||||||||||||||||||||||||||||||
Debt instrument, periodic payment | $ 12,256 | |||||||||||||||||||||||||||||||||||
Notes Are Payable Over Eleven Years Series Two [Member] | ||||||||||||||||||||||||||||||||||||
Notes payable | $ 53,110 | |||||||||||||||||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 5.50% | |||||||||||||||||||||||||||||||||||
Contractual Debt Reduction [Member] | ||||||||||||||||||||||||||||||||||||
Club note, outstanding principal | 1,200,000 | |||||||||||||||||||||||||||||||||||
Club note, maximum reduction amount | $ 6,000,000 | |||||||||||||||||||||||||||||||||||
Club note, reduction amount, per person | $ / shares | $ 2 | |||||||||||||||||||||||||||||||||||
Club note, reduction amount | $ 2,400,000 | |||||||||||||||||||||||||||||||||||
Club note, increase decrease in reduction amount | $ 2,400,000 | |||||||||||||||||||||||||||||||||||
Club note, reduction enforced amount, per person | $ / shares | $ 5 | |||||||||||||||||||||||||||||||||||
Club note, reduction enforced amount | $ 6,000,000 | |||||||||||||||||||||||||||||||||||
Club note, gain loss in demanded payments | 6,000,000 | |||||||||||||||||||||||||||||||||||
New Bank Debt [Member] | ||||||||||||||||||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 6.25% | |||||||||||||||||||||||||||||||||||
Construction Loan [Member] | ||||||||||||||||||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 5.25% | |||||||||||||||||||||||||||||||||||
Debt instrument, periodic payment | $ 31,988 | |||||||||||||||||||||||||||||||||||
Debt instrument, term | 20 years | |||||||||||||||||||||||||||||||||||
Loans payable | $ 4,700,000 | |||||||||||||||||||||||||||||||||||
Floor Rate [Member] | ||||||||||||||||||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 5.25% | |||||||||||||||||||||||||||||||||||
12% Unsecured Promissory Notes [Member] | ||||||||||||||||||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 12.00% | |||||||||||||||||||||||||||||||||||
Proceeds from issuance of unsecured debt | $ 5,400,000 | |||||||||||||||||||||||||||||||||||
Debt instrument due date | May 1, 2020 | |||||||||||||||||||||||||||||||||||
Unsecured Promissory Notes [Member] | ||||||||||||||||||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 9.00% | 12.00% | ||||||||||||||||||||||||||||||||||
Debt instrument, periodic payment | $ 17,101 | |||||||||||||||||||||||||||||||||||
Debt instrument, term | 10 years | 3 years | ||||||||||||||||||||||||||||||||||
Amount refinanced through debt | $ 500,000 | $ 2,000,000 | ||||||||||||||||||||||||||||||||||
Debt instrument conversion amount | $ 1,350,000 | $ 4,000,000 | ||||||||||||||||||||||||||||||||||
Two Notes [Member] | Investors [Member] | November 1, 2018 [Member] | ||||||||||||||||||||||||||||||||||||
Amount refinanced through debt | 400,000 | |||||||||||||||||||||||||||||||||||
5% Promissory Notes [Member] | Construction Loan Agreement [Member] | ||||||||||||||||||||||||||||||||||||
Debt instrument principal amount | $ 4,800,000 | |||||||||||||||||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 5.00% | |||||||||||||||||||||||||||||||||||
20-year Note [Member] | Construction Loan Agreement [Member] | ||||||||||||||||||||||||||||||||||||
Payments of loan costs | $ 24,000 | |||||||||||||||||||||||||||||||||||
Short-term Note Payable [Member] | ||||||||||||||||||||||||||||||||||||
Debt instrument principal amount | $ 5,000,000 | |||||||||||||||||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 8.00% | |||||||||||||||||||||||||||||||||||
Debt instrument due date | May 8, 2019 | |||||||||||||||||||||||||||||||||||
Short-term Note Payable [Member] | May 8, 2019 [Member] | ||||||||||||||||||||||||||||||||||||
Debt instrument principal amount | $ 3,000,000 | |||||||||||||||||||||||||||||||||||
Old Aircraft's Note Payable [Member] | Lender [Member] | ||||||||||||||||||||||||||||||||||||
Notes payable | $ 2,000,000 | |||||||||||||||||||||||||||||||||||
New Loan [Member] | ||||||||||||||||||||||||||||||||||||
Payments of loan costs | $ 764,000 | |||||||||||||||||||||||||||||||||||
Loan from bank | $ 81,200,000 | |||||||||||||||||||||||||||||||||||
Notes payable description | The New Loan fully refinances 20 of the Company's notes payable and partially pays down 1 note payable (collectively, "Repaid Notes") with interest rates ranging from 5% to 12% covering 43 parcels of real properties the Company previously acquired ("Properties"). | |||||||||||||||||||||||||||||||||||
Write off of debt issuance cost to interest expense | 279,000 | |||||||||||||||||||||||||||||||||||
Prepayment of debt issuance cost | 612,500 | |||||||||||||||||||||||||||||||||||
Prepayment penalties paid | 543,000 | |||||||||||||||||||||||||||||||||||
First Note [Member] | ||||||||||||||||||||||||||||||||||||
Debt instrument, periodic payment | $ 442,058 | |||||||||||||||||||||||||||||||||||
Debt instrument, term | 10 years | |||||||||||||||||||||||||||||||||||
Loan from bank | $ 62,500,000 | |||||||||||||||||||||||||||||||||||
Fixed interest rate | 5.75% | 5.75% | ||||||||||||||||||||||||||||||||||
Fixed interest maturity description | First five years | |||||||||||||||||||||||||||||||||||
Debt amortization period | 20 years | |||||||||||||||||||||||||||||||||||
Second Note [Member] | ||||||||||||||||||||||||||||||||||||
Debt instrument, periodic payment | $ 78,098 | |||||||||||||||||||||||||||||||||||
Debt instrument, term | 10 years | |||||||||||||||||||||||||||||||||||
Debt instrument, interest rate, effective percentage | 5.75% | 5.75% | ||||||||||||||||||||||||||||||||||
Loan from bank | $ 10,600,000 | |||||||||||||||||||||||||||||||||||
Fixed interest rate | 5.45% | 5.45% | ||||||||||||||||||||||||||||||||||
Fixed interest maturity description | Until July 2020 | |||||||||||||||||||||||||||||||||||
Debt amortization period | 20 years | |||||||||||||||||||||||||||||||||||
Third Note [Member] | ||||||||||||||||||||||||||||||||||||
Debt instrument, periodic payment | $ 100,062 | |||||||||||||||||||||||||||||||||||
Debt instrument, term | 10 years | |||||||||||||||||||||||||||||||||||
Debt instrument, interest rate, effective percentage | 5.75% | 5.75% | ||||||||||||||||||||||||||||||||||
Loan from bank | $ 8,100,000 | |||||||||||||||||||||||||||||||||||
Fixed interest rate | 5.95% | 5.95% | ||||||||||||||||||||||||||||||||||
Fixed interest maturity description | Until August 2021 | |||||||||||||||||||||||||||||||||||
Debt amortization period | 20 years | |||||||||||||||||||||||||||||||||||
Repaid Notes [Member] | Loan Agreement [Member] | ||||||||||||||||||||||||||||||||||||
Escrowed amount | $ 4,600,000 | $ 4,600,000 | ||||||||||||||||||||||||||||||||||
New Note [Member] | ||||||||||||||||||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 5.95% | |||||||||||||||||||||||||||||||||||
Debt instrument, periodic payment | $ 53,084 | |||||||||||||||||||||||||||||||||||
Debt instrument, term | 72 months | |||||||||||||||||||||||||||||||||||
Debt instrument due date | Aug. 31, 2039 | |||||||||||||||||||||||||||||||||||
Fixed interest maturity description | The new note has an initial interest rate of 5.95%, subject to a repricing after 72 months to prime plus 1% with a 5.9% floor. | |||||||||||||||||||||||||||||||||||
Construction Loan Payable [Member] | Loan Agreement [Member] | ||||||||||||||||||||||||||||||||||||
Debt instrument due date | Aug. 20, 2029 | |||||||||||||||||||||||||||||||||||
Loan from bank | $ 4,700,000 | |||||||||||||||||||||||||||||||||||
Notes payable description | During the first 18 months of the construction loan, the Company will make monthly interest-only payments, and after such, monthly payments of principal and interest will be made based on a 20-year amortization with the remaining balance to be paid at maturity. | |||||||||||||||||||||||||||||||||||
Debt amortization period | 20 years | |||||||||||||||||||||||||||||||||||
Minimum [Member] | Residential Real Estate [Member] | ||||||||||||||||||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 5.00% | |||||||||||||||||||||||||||||||||||
Minimum [Member] | New Loan [Member] | ||||||||||||||||||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 5.00% | 5.00% | ||||||||||||||||||||||||||||||||||
Maximum [Member] | Residential Real Estate [Member] | ||||||||||||||||||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 7.00% | |||||||||||||||||||||||||||||||||||
Maximum [Member] | New Loan [Member] | ||||||||||||||||||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 12.00% | 12.00% | ||||||||||||||||||||||||||||||||||
Maximum [Member] | New Note [Member] | ||||||||||||||||||||||||||||||||||||
Amount refinanced through debt | $ 7,400,000 | |||||||||||||||||||||||||||||||||||
Prime Rate [Member] | ||||||||||||||||||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 1.00% | |||||||||||||||||||||||||||||||||||
Prime Plus [Member] | ||||||||||||||||||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 0.50% | 1.00% | ||||||||||||||||||||||||||||||||||
Prime Plus [Member] | Bank Lender [Member] | ||||||||||||||||||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 0.50% | |||||||||||||||||||||||||||||||||||
Prime Plus [Member] | Loan Agreement [Member] | ||||||||||||||||||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 2.00% | |||||||||||||||||||||||||||||||||||
Prime Plus [Member] | Notes Are Payable Over Eleven Years Series One [Member] | ||||||||||||||||||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 2.50% | |||||||||||||||||||||||||||||||||||
Prime Plus [Member] | New Note [Member] | ||||||||||||||||||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 5.90% | |||||||||||||||||||||||||||||||||||
Prime Plus [Member] | Construction Loan Payable [Member] | Loan Agreement [Member] | ||||||||||||||||||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 0.50% | |||||||||||||||||||||||||||||||||||
U.S.Treasury Rate [Member] | Bank Lender [Member] | ||||||||||||||||||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 3.50% | |||||||||||||||||||||||||||||||||||
U.S.Treasury Rate [Member] | First Note [Member] | ||||||||||||||||||||||||||||||||||||
Debt instrument, interest rate, effective percentage | 3.50% | 3.50% | ||||||||||||||||||||||||||||||||||
Floor Rate [Member] | ||||||||||||||||||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 5.00% | 5.20% | ||||||||||||||||||||||||||||||||||
Floor Rate [Member] | Bank Lender [Member] | ||||||||||||||||||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 5.50% | 5.95% | ||||||||||||||||||||||||||||||||||
Floor Rate [Member] | Loan Agreement [Member] | ||||||||||||||||||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 5.50% | |||||||||||||||||||||||||||||||||||
Floor Rate [Member] | First Note [Member] | ||||||||||||||||||||||||||||||||||||
Debt instrument, interest rate, effective percentage | 5.75% | 5.75% | ||||||||||||||||||||||||||||||||||
Floor Rate [Member] | New Note [Member] | ||||||||||||||||||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 1.00% | |||||||||||||||||||||||||||||||||||
Floor Rate [Member] | Construction Loan Payable [Member] | Loan Agreement [Member] | ||||||||||||||||||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 5.00% | |||||||||||||||||||||||||||||||||||
Rick's Cabaret [Member] | ||||||||||||||||||||||||||||||||||||
Notes payable | $ 2,200,000 | |||||||||||||||||||||||||||||||||||
Debt instrument principal amount | $ 19,774 | |||||||||||||||||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 6.25% | |||||||||||||||||||||||||||||||||||
Notes issued | $ 1,500,000 | |||||||||||||||||||||||||||||||||||
Debt instrument, payment terms | The note was collateralized by the real estate and was payable in monthly installments through April 2025 of $19,774, including principal and interest at the prime rate plus 4.5% with a minimum rate of 7%. | |||||||||||||||||||||||||||||||||||
Debt instrument, periodic payment | $ 15,090 | |||||||||||||||||||||||||||||||||||
Rick's Cabaret [Member] | Minimum [Member] | ||||||||||||||||||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 7.00% | |||||||||||||||||||||||||||||||||||
Rick's Cabaret [Member] | Prime Rate [Member] | ||||||||||||||||||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 4.50% | |||||||||||||||||||||||||||||||||||
Foster Clubs [Member] | ||||||||||||||||||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 9.50% | |||||||||||||||||||||||||||||||||||
Debt instrument, payment terms | The Club Note bears interest at the rate of 9.5% per annum, is payable in 144 equal monthly installments | |||||||||||||||||||||||||||||||||||
Debt instrument, periodic payment | $ 256,602 | |||||||||||||||||||||||||||||||||||
Business acquisitions cost of acquired entity purchase price | 3,500,000 | |||||||||||||||||||||||||||||||||||
Business combination, consideration transferred | $ 22,000,000 | |||||||||||||||||||||||||||||||||||
Texas Saloon Gentlemen's Club [Member] | ||||||||||||||||||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 6.00% | |||||||||||||||||||||||||||||||||||
Debt instrument, periodic payment | $ 68,829 | |||||||||||||||||||||||||||||||||||
Business combination, consideration transferred | $ 6,800,000 | |||||||||||||||||||||||||||||||||||
Area of land | a | 3.5 | |||||||||||||||||||||||||||||||||||
Debt instrument, interest rate, effective percentage | 6.50% | |||||||||||||||||||||||||||||||||||
Sale of stock nature of consideration received | Seller financing at 6% annual interest, with the balance provided by commercial bank financing at a variable interest rate equal to the prime rate plus 2%, but in no event less than 6.5%. | |||||||||||||||||||||||||||||||||||
Texas Saloon Gentlemen's Club [Member] | Real Estate [Member] | ||||||||||||||||||||||||||||||||||||
Business combination, consideration transferred | $ 3,300,000 | |||||||||||||||||||||||||||||||||||
Texas Saloon Gentlemen's Club [Member] | Club Business [Member ] | ||||||||||||||||||||||||||||||||||||
Business combination, consideration transferred | $ 3,500,000 | |||||||||||||||||||||||||||||||||||
Seville Gentlemen's Club [Member] | ||||||||||||||||||||||||||||||||||||
Business combination, consideration transferred | 8,500,000 | |||||||||||||||||||||||||||||||||||
Sale of stock, consideration received on transaction | 1,100,000 | |||||||||||||||||||||||||||||||||||
Club Business [Member ] | ||||||||||||||||||||||||||||||||||||
Business combination, consideration transferred | 4,500,000 | |||||||||||||||||||||||||||||||||||
Club Real Estate [Member] | ||||||||||||||||||||||||||||||||||||
Business combination, consideration transferred | $ 4,000,000 | |||||||||||||||||||||||||||||||||||
Silver City [Member] | Bank Financing [Member] | ||||||||||||||||||||||||||||||||||||
Debt instrument, interest rate, effective percentage | 5.50% | |||||||||||||||||||||||||||||||||||
Silver City [Member] | Bank Financing [Member] | ||||||||||||||||||||||||||||||||||||
Sale of stock, consideration received on transaction | $ 5,700,000 | |||||||||||||||||||||||||||||||||||
Miami Gardens, Florida nightclub [Member] | ||||||||||||||||||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 5.45% | |||||||||||||||||||||||||||||||||||
Notes issued | $ 11,325,000 | |||||||||||||||||||||||||||||||||||
Debt instrument, periodic payment | 78,000 | |||||||||||||||||||||||||||||||||||
Total debt | 7,200,000 | |||||||||||||||||||||||||||||||||||
Real estate investment property, at cost | 15,300,000 | |||||||||||||||||||||||||||||||||||
Loss contingency, damages sought, value | 10,000,000 | |||||||||||||||||||||||||||||||||||
Monthly installment of settlement loss | $ 119,000 | |||||||||||||||||||||||||||||||||||
Patron tax rate per customer | $ / shares | $ 5 | |||||||||||||||||||||||||||||||||||
Settlement with imputed interest discount | 9.60% | |||||||||||||||||||||||||||||||||||
Cabaret New York [Member] | ||||||||||||||||||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 5.00% | |||||||||||||||||||||||||||||||||||
Debt instrument, periodic payment | $ 59,000 | |||||||||||||||||||||||||||||||||||
Business acquisitions cost of acquired entity purchase price | 10,500,000 | |||||||||||||||||||||||||||||||||||
Business acquisitions cost of acquired entity cash paid | $ 10,000,000 | |||||||||||||||||||||||||||||||||||
Debt instrument, term | 10 years | |||||||||||||||||||||||||||||||||||
Bombshells [Member] | ||||||||||||||||||||||||||||||||||||
Notes payable | $ 1,900,000 | |||||||||||||||||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 5.00% | |||||||||||||||||||||||||||||||||||
Business acquisitions cost of acquired entity purchase price | $ 2,500,000 | |||||||||||||||||||||||||||||||||||
Debt instrument, term | 18 months | |||||||||||||||||||||||||||||||||||
Scarlett's Acquisition [Member] | Promissory Note One [Member] | ||||||||||||||||||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 5.00% | |||||||||||||||||||||||||||||||||||
Debt instrument, term | 12 years | |||||||||||||||||||||||||||||||||||
Proceeds from short term note payable | $ 5,000,000 | |||||||||||||||||||||||||||||||||||
Scarlett's Acquisition [Member] | Promissory Note Two [Member] | ||||||||||||||||||||||||||||||||||||
Notes payable | $ 168,343 | |||||||||||||||||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 8.00% | |||||||||||||||||||||||||||||||||||
Proceeds from short term note payable | $ 1,560,000 | |||||||||||||||||||||||||||||||||||
Kappa, Illinois [Member] | ||||||||||||||||||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 8.00% | |||||||||||||||||||||||||||||||||||
Debt instrument, periodic payment | $ 20,276 | |||||||||||||||||||||||||||||||||||
Debt instrument, term | 3 years | |||||||||||||||||||||||||||||||||||
Debt amortization period | 5 years | |||||||||||||||||||||||||||||||||||
Payments to acquired business | $ 1,500,000 | |||||||||||||||||||||||||||||||||||
Kappa, Illinois [Member] | Seller Note [Member] | ||||||||||||||||||||||||||||||||||||
Payments to acquired business | $ 1,000,000 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-term Debt (Details) - USD ($) | Sep. 30, 2018 | Sep. 30, 2017 | Oct. 05, 2016 | |
Debt Instrument [Line Items] | ||||
Total debt | $ 142,415,000 | $ 124,949,000 | $ 9,900,000 | |
Less unamortized debt issuance costs | (1,788,000) | (597,000) | ||
Less current portion | (19,047,000) | (17,440,000) | ||
Total long-term debt | 121,580,000 | 106,912,000 | ||
Notes payable One [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | [1] | 2,358,000 | ||
Notes Payable Two [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | [1] | 95,000 | ||
Notes Payable Three [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | [1] | 1,071,000 | 1,157,000 | |
Notes Payable Four [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | [1] | 4,510,000 | ||
Notes Payable Five [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | [1] | 1,120,000 | ||
Notes Payable Six [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | [2] | 6,941,000 | ||
Notes Payable Seven [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | [1] | 6,423,000 | ||
Notes Payable Eight [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | [1] | 1,679,000 | ||
Notes Payable Nine [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | 2,740,000 | |||
Notes Payable Ten [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | 4,470,000 | 5,613,000 | ||
Notes Payable Eleven [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | [1] | 4,484,000 | ||
Notes Payable Twelve [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | [1] | 504,000 | ||
Notes Payable Thirteen [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | [1] | 5,320,000 | ||
Notes Payable Fourteen [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | [1] | 1,037,000 | ||
Notes Payable Fifteen [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | [1] | 1,777,000 | ||
Notes Payable Sixteen [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | [1] | 10,258,000 | 10,620,000 | |
Notes Payable Seventeen [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | [1] | 4,303,000 | ||
Notes Payable Eighteen [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | [1] | 9,672,000 | ||
Notes Payable Nineteen [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | [1] | 4,651,000 | ||
Notes Payable Twenty [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | [1] | 1,894,000 | ||
Notes Payable Twenty One [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | [1] | 7,544,000 | 8,267,000 | |
Notes Payable Twenty Two [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | [2] | 6,219,000 | 9,671,000 | |
Notes Payable Twenty Three [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | 912,000 | 941,000 | ||
Notes Payable Twenty Four [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | [2] | 2,940,000 | 5,440,000 | |
Notes Payable Twenty Five [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | [2] | 3,025,000 | 5,000,000 | |
Notes Payable Twenty Six [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | [2] | 14,464,000 | 15,291,000 | |
Notes Payable Twenty Seven [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | [1] | 3,441,000 | ||
Notes Payable Twenty Eight [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | [1] | 58,826,000 | ||
Notes Payable Twenty Nine [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | 6,877,000 | |||
Notes Payable Thirty [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | [1] | 4,257,000 | ||
Notes Payable Thirty One [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | [1] | 3,079,000 | ||
Notes Payable Thirty Two [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | [1] | 960,000 | ||
Notes Payable Thirty Three [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | [1] | 945,000 | ||
Notes Payable Thirty Four [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | [1] | 3,168,000 | ||
Notes Payable Thirty Five [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | [2] | 4,000,000 | ||
Notes Payable Thirty Six [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | [1] | 1,350,000 | ||
Notes Payable Thirty Seven [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | [1] | 1,500,000 | ||
Notes Payable Thirty Eight [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | [1] | 1,550,000 | ||
Notes Payable Thirty Nine [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | [2] | $ 5,000,000 | ||
[1] | Collateralized by real estate. | |||
[2] | Collateralized by stock in subsidiary. |
Long-Term Debt - Schedule of _2
Long-Term Debt - Schedule of Long-term Debt (Details) (Parenthetical) | 12 Months Ended | |||||||||
Sep. 30, 2018 | Sep. 30, 2017 | May 25, 2018 | Apr. 24, 2018 | Feb. 15, 2018 | Jan. 13, 2017 | Oct. 05, 2016 | Aug. 31, 2016 | Oct. 31, 2015 | Aug. 31, 2011 | |
Debt instrument, interest rate | 8.00% | 5.25% | 11.00% | 12.00% | 5.95% | 2.00% | 10.00% | |||
Prime Plus [Member] | ||||||||||
Debt instrument, interest rate | 0.50% | 1.00% | ||||||||
Notes payable One [Member] | ||||||||||
Debt instrument, maturity date, description | August 2022 and December 2024 | August 2022 and December 2024 | ||||||||
Notes payable One [Member] | Minimum [Member] | ||||||||||
Debt instrument, interest rate | 10.00% | 10.00% | ||||||||
Notes payable One [Member] | Maximum [Member] | ||||||||||
Debt instrument, interest rate | 11.00% | 11.00% | ||||||||
Notes Payable Two [Member] | ||||||||||
Debt instrument, interest rate | 7.00% | 7.00% | ||||||||
Debt instrument, maturity date, description | December 2,019 | December 2,019 | ||||||||
Notes Payable Three [Member] | ||||||||||
Debt instrument, interest rate | 5.50% | 5.50% | ||||||||
Debt instrument, maturity date, description | January 2,023 | January 2,023 | ||||||||
Notes Payable Four [Member] | ||||||||||
Debt instrument, interest rate | 5.50% | 5.50% | ||||||||
Debt instrument, maturity date, description | January 2023 and January 2022 | January 2023 and January 2022 | ||||||||
Notes Payable Five [Member] | ||||||||||
Debt instrument, interest rate | 6.25% | 6.25% | ||||||||
Debt instrument, maturity date, description | July 2,018 | July 2,018 | ||||||||
Notes Payable Six [Member] | ||||||||||
Debt instrument, interest rate | 9.50% | 9.50% | ||||||||
Debt instrument, maturity date, description | August 2,024 | August 2,024 | ||||||||
Notes Payable Seven [Member] | ||||||||||
Debt instrument, interest rate | 9.50% | 9.50% | ||||||||
Debt instrument, maturity date, description | September 2,024 | September 2,024 | ||||||||
Notes Payable Eight [Member] | ||||||||||
Debt instrument, maturity date, description | 2018 to 2028 | 2018 to 2028 | ||||||||
Notes Payable Eight [Member] | Minimum [Member] | ||||||||||
Debt instrument, interest rate | 5.00% | 5.00% | ||||||||
Notes Payable Eight [Member] | Maximum [Member] | ||||||||||
Debt instrument, interest rate | 7.00% | 7.00% | ||||||||
Notes Payable Nine [Member] | ||||||||||
Debt instrument, interest rate | 7.45% | 7.45% | ||||||||
Debt instrument, maturity date, description | January 2,019 | January 2,019 | ||||||||
Notes Payable Ten [Member] | ||||||||||
Debt instrument, interest rate | 9.60% | 9.60% | ||||||||
Debt instrument, maturity date, description | May 2,022 | May 2,022 | ||||||||
Notes Payable Eleven [Member] | ||||||||||
Debt instrument, interest rate | 6.50% | 6.50% | ||||||||
Debt instrument, maturity date, description | January 2,020 | January 2,020 | ||||||||
Notes Payable Twelve [Member] | ||||||||||
Debt instrument, interest rate | 6.00% | 6.00% | ||||||||
Debt instrument, maturity date, description | January 2,019 | January 2,019 | ||||||||
Notes Payable Thirteen [Member] | ||||||||||
Debt instrument, interest rate | 5.50% | 5.50% | ||||||||
Debt instrument, maturity date, description | May 2,020 | May 2,020 | ||||||||
Notes Payable Fourteen [Member] | ||||||||||
Debt instrument, interest rate | 6.00% | 6.00% | ||||||||
Debt instrument, maturity date, description | May 2,020 | May 2,020 | ||||||||
Notes Payable Fifteen [Member] | ||||||||||
Debt instrument, interest rate | 5.25% | 5.25% | ||||||||
Debt instrument, maturity date, description | December 2,024 | December 2,024 | ||||||||
Notes Payable Sixteen [Member] | ||||||||||
Debt instrument, interest rate | 5.45% | 5.45% | ||||||||
Debt instrument, maturity date, description | July 2,020 | July 2,020 | ||||||||
Notes Payable Seventeen [Member] | ||||||||||
Debt instrument, interest rate | 6.25% | |||||||||
Debt instrument, maturity date, description | October 2,025 | October 2,025 | ||||||||
Notes Payable Seventeen [Member] | Minimum [Member] | ||||||||||
Debt instrument, interest rate | 2.00% | 2.00% | ||||||||
Notes Payable Seventeen [Member] | Maximum [Member] | ||||||||||
Debt instrument, interest rate | 5.00% | 5.00% | ||||||||
Notes Payable Eighteen [Member] | ||||||||||
Debt instrument, interest rate | 5.00% | 5.00% | ||||||||
Debt instrument, maturity date, description | January 2,026 | January 2,026 | ||||||||
Notes Payable Nineteen [Member] | ||||||||||
Debt instrument, interest rate | 5.25% | 5.25% | ||||||||
Debt instrument, maturity date, description | March 2,037 | March 2,037 | ||||||||
Notes Payable Twenty [Member] | ||||||||||
Debt instrument, interest rate | 6.25% | 6.25% | ||||||||
Debt instrument, maturity date, description | February 2,018 | February 2,018 | ||||||||
Notes Payable Twenty One [Member] | ||||||||||
Debt instrument, interest rate | 5.95% | 5.95% | ||||||||
Debt instrument, maturity date, description | August 2,021 | August 2,021 | ||||||||
Notes Payable Twenty Two [Member] | ||||||||||
Debt instrument, interest rate | 12.00% | 12.00% | ||||||||
Debt instrument, maturity date, description | October 2,021 | October 2,021 | ||||||||
Notes Payable Twenty Three [Member] | ||||||||||
Debt instrument, interest rate | 4.99% | 4.99% | ||||||||
Debt instrument, maturity date, description | April 2,037 | April 2,037 | ||||||||
Notes Payable Twenty Four [Member] | ||||||||||
Debt instrument, interest rate | 12.00% | 12.00% | ||||||||
Debt instrument, maturity date, description | May 2,020 | May 2,020 | ||||||||
Notes Payable Twenty Five [Member] | ||||||||||
Debt instrument, interest rate | 5.00% | 8.00% | ||||||||
Debt instrument, maturity date, description | May 2,018 | May 2,019 | ||||||||
Notes Payable Twenty Six [Member] | ||||||||||
Debt instrument, interest rate | 8.00% | 8.00% | ||||||||
Debt instrument, maturity date, description | May 2,029 | May 2,029 | ||||||||
Notes Payable Twenty Seven [Member] | ||||||||||
Debt instrument, interest rate | 5.00% | 5.00% | ||||||||
Debt instrument, maturity date, description | May 2,038 | May 2,038 | ||||||||
Notes Payable Twenty Eight [Member] | ||||||||||
Debt instrument, interest rate | 5.75% | 5.75% | ||||||||
Debt instrument, maturity date, description | December 2,027 | December 2,027 | ||||||||
Notes Payable Twenty Nine [Member] | ||||||||||
Debt instrument, interest rate | 5.95% | 5.95% | ||||||||
Debt instrument, maturity date, description | December 2,032 | December 2,032 | ||||||||
Notes Payable Thirty [Member] | ||||||||||
Debt instrument, interest rate | 5.00% | 5.00% | ||||||||
Debt instrument, maturity date, description | August 2,029 | August 2,029 | ||||||||
Notes Payable Thirty One [Member] | ||||||||||
Debt instrument, interest rate | 5.00% | 5.00% | ||||||||
Debt instrument, maturity date, description | April 2,020 | April 2,020 | ||||||||
Notes Payable Thirty Two [Member] | ||||||||||
Debt instrument, interest rate | 5.50% | 5.50% | ||||||||
Debt instrument, maturity date, description | September 2,030 | September 2,030 | ||||||||
Notes Payable Thirty Two [Member] | Prime Plus [Member] | ||||||||||
Debt instrument, interest rate | 0.50% | 0.50% | ||||||||
Notes Payable Thirty Three [Member] | ||||||||||
Debt instrument, interest rate | 8.00% | 8.00% | ||||||||
Debt instrument, maturity date, description | May 2,023 | May 2,023 | ||||||||
Notes Payable Thirty Four [Member] | ||||||||||
Debt instrument, interest rate | 5.95% | 5.95% | ||||||||
Debt instrument, maturity date, description | August 2,039 | August 2,039 | ||||||||
Notes Payable Thirty Five [Member] | ||||||||||
Debt instrument, interest rate | 12.00% | 12.00% | ||||||||
Debt instrument, maturity date, description | August 2,021 | August 2,021 | ||||||||
Notes Payable Thirty Six [Member] | ||||||||||
Debt instrument, interest rate | 9.00% | 9.00% | ||||||||
Debt instrument, maturity date, description | September 2,028 | September 2,028 | ||||||||
Notes Payable Thirty Seven [Member] | ||||||||||
Debt instrument, interest rate | 6.10% | 6.10% | ||||||||
Debt instrument, maturity date, description | September 2,019 | September 2,019 | ||||||||
Notes Payable Thirty Eight [Member] | ||||||||||
Debt instrument, interest rate | 5.95% | 5.95% | ||||||||
Debt instrument, maturity date, description | September 2,023 | September 2,023 | ||||||||
Notes Payable Thirty Nine [Member] | ||||||||||
Debt instrument, interest rate | 7.00% | 7.00% | ||||||||
Debt instrument, maturity date, description | May 2,019 | May 2,019 |
Long-Term Debt - Schedule of _3
Long-Term Debt - Schedule of Long-term Debt Instruments (Details) - USD ($) | Sep. 30, 2018 | Sep. 30, 2017 | Oct. 05, 2016 |
Debt Instrument [Line Items] | |||
Long-term Debt | $ 142,415,000 | $ 124,949,000 | $ 9,900,000 |
Other Assets [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 7,788,000 | 3,681,000 | |
Stock in Subsidiary [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 35,648,000 | 42,343,000 | |
Unsecured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 4,470,000 | 5,613,000 | |
Real Estate [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 94,509,000 | $ 73,312,000 |
Long-Term Debt - Schedule of Ma
Long-Term Debt - Schedule of Maturities of Long-term Debt (Details) - USD ($) | Sep. 30, 2018 | Sep. 30, 2017 | Oct. 05, 2016 |
2,019 | $ 19,047,000 | ||
2,020 | 13,562,000 | ||
2,021 | 11,921,000 | ||
2,022 | 10,818,000 | ||
2,023 | 8,262,000 | ||
Thereafter | 78,805,000 | ||
Total maturities of long-term debt, net of debt discount | 142,415,000 | $ 124,949,000 | $ 9,900,000 |
Regular Amortization [Member] | |||
2,019 | 14,522,000 | ||
2,020 | 7,543,000 | ||
2,021 | 4,142,000 | ||
2,022 | 10,818,000 | ||
2,023 | 6,948,000 | ||
Thereafter | 32,257,000 | ||
Total maturities of long-term debt, net of debt discount | 76,230,000 | ||
Balloon Payments [Member] | |||
2,019 | 4,525,000 | ||
2,020 | 6,019,000 | ||
2,021 | 7,779,000 | ||
2,022 | |||
2,023 | 1,314,000 | ||
Thereafter | 46,548,000 | ||
Total maturities of long-term debt, net of debt discount | $ 66,185,000 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statutory federal corporate income tax rate | 24.50% | ||||
Deferred taxes benefit | $ (9,700) | $ 6,775 | $ (2,273) | $ (1,143) | |
Income tax ownership percentage, description | Two of these subsidiaries were 100 percent owned subsidiaries, 100 percent of the stock of both of these subsidiaries were sold to third parties. The third subsidiary was a 51 percent owned subsidiary that was accounted for under the consolidated method; 31 percent of the 51 percent ownership of the stock was sold during the year to a third party, and the investment is now accounted for under the cost method. | ||||
Income tax (benefit) expense | $ 1,300 | $ (3,118) | 6,359 | 2,373 | |
Deferred tax liabilities | 16,300 | 16,300 | 16,300 | ||
Liability for uncertain tax positions | 865 | 165 | 865 | ||
Interest and penalties for unrecognized tax benefits | $ 223 | $ 223 | $ 266 | ||
Unrecognized tax benefits released | $ 700 | ||||
September 30, 2019 [Member] | |||||
Statutory federal corporate income tax rate | 21.00% | ||||
Tax Cuts and Jobs Act Tax Act [Member] | |||||
Income tax reconciliation description | The Tax Cuts and Jobs Act (Tax Act) was enacted on December 22, 2017, and includes, among other items, a reduction in the federal corporate income tax rate from 35% to 21% effective January 1, 2018. | ||||
Statutory federal corporate income tax rate | 21.00% | ||||
One-time Adjustment [Member] | |||||
Deferred taxes benefit | $ 8,700 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Current Federal | $ 2,438 | $ 2,989 | $ 260 | |
Current State and local | 1,219 | 1,097 | 970 | |
Total current income tax expense | 3,657 | 4,086 | 1,230 | |
Deferred Federal | (8,096) | 1,545 | 1,110 | |
Deferred State and local | 1,321 | 728 | 33 | |
Total deferred income tax expense (benefit) | (6,775) | 2,273 | 1,143 | |
Total income tax expense (benefit) | $ 1,300 | $ (3,118) | $ 6,359 | $ 2,373 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Computed expected income tax expense | $ 4,576 | $ 4,979 | $ 4,366 | |
State income taxes, net of federal benefit | 804 | 291 | 730 | |
Deferred taxes on subsidiaries acquired/sold | 709 | (841) | ||
Permanent differences | 85 | 108 | (109) | |
Change in deferred tax liability rate | (8,832) | 1,329 | ||
Reserve for uncertain tax position | 406 | 240 | ||
Tax credits | (808) | (564) | (2,013) | |
Other | 348 | (190) | ||
Total income tax expense (benefit) | $ 1,300 | $ (3,118) | $ 6,359 | $ 2,373 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Income Tax Disclosure [Abstract] | ||
Deferred tax assets Patron tax | $ 948 | $ 1,954 |
Deferred tax assets Capital loss carryforwards | 763 | |
Deferred tax assets Other | 231 | |
Net deferred tax assets | 1,711 | 2,185 |
Deferred tax liabilities Intangibles | (13,110) | (18,549) |
Deferred tax liabilities Property and equipment | (7,206) | (9,177) |
Deferred tax liabilities Other | (947) | |
Deferred tax liabilities | (21,263) | (27,726) |
Net deferred tax liabilities | $ (19,552) | $ (25,541) |
Income Taxes - Schedule of Unce
Income Taxes - Schedule of Uncertain Tax Positions (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |||
Beginning Balance | $ 865 | $ 240 | |
Additions for tax positions of prior years | 625 | 240 | |
Released in current year | (700) | ||
Ending Balance | $ 165 | $ 865 | $ 240 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Jul. 31, 2014 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Stock-based compensation expense recognized | $ 0 | $ 0 | $ 360 | |
Executive Officer and an Officer of a Subsidiary [Member] | ||||
Restricted stock options, granted | 96,325 | |||
Restricted stock options, granted value | $ 963 | |||
Restricted stock options, fair value per share | $ 10 | |||
Restricted stock options, vest term | 2 years | |||
Intrinsic value of restricted stock | $ 969 | |||
2010 Plan [Member] | Minimum [Member] | ||||
Maximum number of shares of common stock may be optioned and sold during the period | 500,000 | |||
2010 Plan [Member] | Maximum [Member] | ||||
Maximum number of shares of common stock may be optioned and sold during the period | 800,000 |
Commitments and Contingencies_2
Commitments and Contingencies (Details Narrative) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
Apr. 30, 2017USD ($) | Mar. 31, 2017USD ($)Integer | Sep. 30, 2016USD ($) | Dec. 31, 2015USD ($) | Jun. 30, 2015USD ($) | Sep. 30, 2018USD ($)$ / shares | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($)$ / shares | |
Commitments And Contingencies [Line Items] | |||||||||
Operating lease rent expense | $ 3,720,000 | $ 3,258,000 | $ 3,278,000 | ||||||
Patron tax amount agreed to pay | $ 10,000,000 | ||||||||
Monthly installment of settlement loss | $ 119,000 | ||||||||
Patron tax on monthly basis per customer | $ / shares | $ 5 | ||||||||
Patron tax amount discounted value | $ 10,000,000 | ||||||||
Imputed interest rate | 9.60% | ||||||||
Patron tax settlement | $ 7,200,000 | ||||||||
Pre-tax gain | $ 8,200,000 | ||||||||
Accrued tax value | $ 7,200,000 | ||||||||
Litigation settlement, expense | $ 1,100,000 | $ 540,000 | 1,900,000 | ||||||
Settlement liabilities | 4,500,000 | 5,600,000 | |||||||
Payments for legal settlements | $ 1,700,000 | 317,000 | $ 1,900,000 | ||||||
Indemnity Insurance Corporation [Member] | |||||||||
Commitments And Contingencies [Line Items] | |||||||||
Percentage of costs of litigation | 100.00% | ||||||||
Compensatory Damages [Member] | JAI Phoenix [Member] | |||||||||
Commitments And Contingencies [Line Items] | |||||||||
Loss contingency, damages sought, value | $ 1,400,000 | ||||||||
Punitive Damages [Member] | JAI Phoenix [Member] | |||||||||
Commitments And Contingencies [Line Items] | |||||||||
Loss contingency, damages sought, value | $ 4,000,000 | ||||||||
Settlement of Lawsuits [Member] | |||||||||
Commitments And Contingencies [Line Items] | |||||||||
Accrued liabilities | $ 0 | $ 295,000 | |||||||
Settlement Agreement [Member] | |||||||||
Commitments And Contingencies [Line Items] | |||||||||
Payment of settlement amount | $ 687,815 | ||||||||
Litigation settlement, expense | $ 195,815 | ||||||||
Number of monthly installment | Integer | 60 | ||||||||
Settlement amount net of interest | $ 8,200 | ||||||||
Declaratory Judgment Action [Member] | |||||||||
Commitments And Contingencies [Line Items] | |||||||||
Patron tax on monthly basis per customer | $ / shares | $ 5 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Minimum Rental Payments for Operating Leases (Details) $ in Thousands | Sep. 30, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,019 | $ 2,796 |
2,020 | 2,878 |
2,021 | 2,792 |
2,022 | 2,744 |
2,023 | 2,576 |
Thereafter | 21,922 |
Total future minimum lease obligations | $ 35,708 |
Common Stock (Details Narrative
Common Stock (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Stock repurchased and retired during period, shares | 89,685 | 747,081 | |
Stock repurchased and retired during period, value | $ 1,100 | $ 7,300 | |
Warrants exercised, value | $ 500 | ||
Dividend per share | $ 0.03 | $ 0.03 | $ 0.03 |
Aggregate dividend amount | $ 1,200 | $ 1,200 | $ 862 |
Warrants [Member] | |||
Warrants exercised | 48,780 | ||
Warrants exercised, value | $ 500 | ||
Convertible Debt [Member] | |||
Debt conversion, converted instrument, shares issued | 125,610 | ||
Debt conversion, converted instrument, amount | $ 1,300 |
Employee Retirement Plan (Detai
Employee Retirement Plan (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Employee Retirement Plan | |||
Percentage of employee's contribution | 3.00% | ||
Expenses related to contributions to plan | $ 159 | $ 130 | $ 108 |
Acquisitions and Dispositions_2
Acquisitions and Dispositions (Details Narrative) | Sep. 06, 2018USD ($) | May 25, 2018USD ($) | Apr. 26, 2018USD ($)shares | Jun. 06, 2017USD ($) | May 08, 2017USD ($) | Jan. 13, 2017USD ($) | Jan. 13, 2015USD ($) | Sep. 30, 2016USD ($) | Oct. 31, 2015USD ($) | Sep. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2018USD ($) | Feb. 15, 2018 | Dec. 31, 2017USD ($) | Apr. 26, 2017USD ($) | Oct. 05, 2016 | Sep. 29, 2016 | Aug. 31, 2016USD ($) | Jan. 31, 2012USD ($) | Aug. 31, 2011 |
Business Acquisition [Line Items] | |||||||||||||||||||||||
Ownership interest rate percentage | 51.00% | 31.00% | |||||||||||||||||||||
Notes payable | $ 1,000,000 | $ 9,000,000 | $ 1,500,000 | ||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 8.00% | 11.00% | 2.00% | 5.25% | 12.00% | 5.95% | 10.00% | ||||||||||||||||
Deferred tax liabilities | $ 16,300,000 | $ 16,300,000 | $ 16,300,000 | ||||||||||||||||||||
Goodwill | $ 495,000 | 115,957,000 | 115,957,000 | 118,290,000 | |||||||||||||||||||
Sale of stock, consideration received on transaction | $ 2,000,000 | ||||||||||||||||||||||
Revenues | 442,000 | 5,600,000 | |||||||||||||||||||||
Cash | $ 2,200,000 | $ 2,200,000 | |||||||||||||||||||||
Gain loss on sales | $ 900,000 | 116,000 | |||||||||||||||||||||
Repayment of notes payables | $ 1,500,000 | ||||||||||||||||||||||
Prepayment penalty to pay off the debt | $ 75,000 | ||||||||||||||||||||||
Assets held for sale | 1,500,000 | $ 7,700,000 | 2,902,000 | 2,902,000 | 5,759,000 | 7,700,000 | |||||||||||||||||
Exchange for property reduction in notes payable | $ 1,500,000 | ||||||||||||||||||||||
Exchange for forgiveness, value | $ 500,000 | ||||||||||||||||||||||
Shares received on exchange for forgiveness | shares | 750,000 | ||||||||||||||||||||||
Settlement description | Additionally, as part of the settlement, the Company acquired 78.5% of the remaining 80% ownership interest in Drink Robust, bringing its ownership interest to 98.5% with the payment of an outstanding liability to the Drink Robust distributor of $250,000. | ||||||||||||||||||||||
Payment of liability | 4,500,000 | 4,500,000 | 5,600,000 | ||||||||||||||||||||
Impairment of equity | $ 1,550,000 | ||||||||||||||||||||||
Long term asset | $ 450,000 | ||||||||||||||||||||||
Payments to acquired business | 1,500,000 | 2,034,000 | $ 9,527,000 | ||||||||||||||||||||
Purchase of real estate | 825,000 | $ 1,000,000 | |||||||||||||||||||||
Payments to other non-real estate business assets | $ 180,000 | ||||||||||||||||||||||
TEZ Real Estate [Member] | |||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||
Payments to acquired business | $ 1,550,000 | ||||||||||||||||||||||
Business acquisition separately recognized additional paid-in capital | $ 934,000 | ||||||||||||||||||||||
TEZ Real Estate [Member] | Subsidiary [Member] | |||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||
Noncontrolling interest, ownership percentage by parent | 49.00% | ||||||||||||||||||||||
Note Holder [Member] | |||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||
Recourse the personal assets | $ 500,000 | ||||||||||||||||||||||
Drink Robust Distributor [Member] | |||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||
Business combination, consideration transferred | 250,000 | ||||||||||||||||||||||
Preliminary estimate total | $ 450,000 | ||||||||||||||||||||||
Nightclubs Segment [Member] | |||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||
Goodwill | $ 1,200,000 | $ 1,500,000 | |||||||||||||||||||||
Scarlett's Cabaret Miami [Member] | |||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 5.00% | ||||||||||||||||||||||
Business combination, consideration transferred | $ 26,000,000 | ||||||||||||||||||||||
Sale of stock, consideration received on transaction | $ 15,600,000 | ||||||||||||||||||||||
Percentage for amortizing | 0.08 | ||||||||||||||||||||||
Scarlett's Cabaret Miami [Member] | Short Term Note [Member] | |||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||
Business combination, consideration transferred | $ 5,000,000 | ||||||||||||||||||||||
Scarlett's Cabaret Miami [Member] | Notes Payable [Member] | |||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||
Business combination, consideration transferred | $ 5,400,000 | ||||||||||||||||||||||
Notes Payable Two [Member] | |||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 7.00% | 7.00% | 7.00% | ||||||||||||||||||||
Robust Energy LLC [Member] | |||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||
Sold percentage of business acquisition | 31.00% | ||||||||||||||||||||||
Investment owned, at cost | $ 2,000,000 | $ 2,000,000 | |||||||||||||||||||||
Ownership interest rate percentage | 20.00% | 20.00% | |||||||||||||||||||||
Loss on sale of impairment charge | $ 184,000 | ||||||||||||||||||||||
Fair value of note received | 2,000,000 | $ 2,000,000 | |||||||||||||||||||||
Fair value of retained non-controlling interest | $ 1,200,000 | 1,200,000 | |||||||||||||||||||||
Remaining interest of investment | 20.00% | ||||||||||||||||||||||
Deferred tax liabilities | $ 2,500,000 | 2,500,000 | |||||||||||||||||||||
Bombshells [Member] | |||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||
Discontinued operations, sales price | 6,300,000 | 6,300,000 | |||||||||||||||||||||
Discontinued operations, cash received | 3,500,000 | 3,500,000 | |||||||||||||||||||||
Discontinued operations, notes receivable | 2,800,000 | 2,800,000 | |||||||||||||||||||||
Discontinued operations, gain loss on sale | 550,000 | ||||||||||||||||||||||
Discontinued operations, deferred gain on sale | 399,000 | 399,000 | |||||||||||||||||||||
Bombshells [Member] | Notes Payable One [Member] | |||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||
Notes payable | $ 1,800,000 | $ 1,800,000 | |||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 6.00% | 6.00% | |||||||||||||||||||||
Notes payable, period | 240 months | ||||||||||||||||||||||
Bombshells [Member] | Notes Payable Two [Member] | |||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||
Notes payable | $ 1,000,000 | $ 1,000,000 | |||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 9.00% | 9.00% | |||||||||||||||||||||
Notes payable, period | 120 months | ||||||||||||||||||||||
Adult Club [Member] | |||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||
Discontinued operations, gain loss on sale | $ 1,100,000 | ||||||||||||||||||||||
Hollywood Showclub [Member] | Greater St. Louis Area [Member] | |||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||
Payments to Acquire Assets | $ 4,200,000 | ||||||||||||||||||||||
Drink Robust Inc [Member] | |||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||
Discontinued operations, notes receivable | $ 2,000,000 | $ 2,000,000 | |||||||||||||||||||||
Debt instrument, interest rate during the period | 4.00% | ||||||||||||||||||||||
Payment of liability | $ 250,000 |
Acquisitions and Dispositions -
Acquisitions and Dispositions - Schedule of Business Acquisition Fair Values Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 | May 08, 2017 | Apr. 26, 2017 | Sep. 30, 2016 |
Goodwill | $ 44,425 | $ 43,866 | $ 45,847 | ||
Hollywood Showclub [Member] | |||||
Land and building | $ 2,320 | ||||
Furniture and equipment | 141 | ||||
Noncompete | 200 | ||||
Other assets | 74 | ||||
Goodwill | 1,539 | ||||
Accrued liability | (75) | ||||
Net assets | $ 4,199 | ||||
Scarlett's Cabaret Miami [Member] | |||||
Inventory | $ 109 | ||||
Leasehold improvements | 1,222 | ||||
Furniture and equipment | 633 | ||||
Noncompete | 400 | ||||
SOB license | 20,196 | ||||
Tradename | 2,215 | ||||
Goodwill | 1,177 | ||||
Net assets | $ 25,952 |
Quarterly Results of Operatio_3
Quarterly Results of Operations (Unaudited) - Schedule of Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||
Revenues | $ 40,676 | $ 42,634 | $ 41,226 | $ 41,212 | $ 39,210 | $ 37,429 | $ 34,518 | $ 33,739 | $ 33,037 | $ 33,952 | $ 34,396 | $ 33,475 | $ 165,748 | $ 144,896 | $ 134,860 | ||||||||||||
Income from operations | 1,533 | [1] | 9,492 | [1] | 8,231 | [1] | 9,140 | [1] | 1,436 | [2] | 7,883 | [2] | 7,487 | [2] | 6,333 | [2] | 769 | [3] | 6,657 | [3] | 7,550 | [3] | 5,717 | [3] | 28,396 | 23,139 | 20,693 |
Net income (loss) attributable to RCIHH shareholders | $ (2,672) | [1] | $ 5,389 | [1] | $ 4,685 | [1] | $ 14,311 | [1] | $ (2,239) | [2] | $ 3,841 | [2] | $ 3,759 | [2] | $ 2,898 | [2] | $ 508 | [3] | $ 2,653 | [3] | $ 5,505 | [3] | $ 2,552 | [3] | $ 21,713 | $ 8,259 | $ 11,218 |
Earnings (loss) per share, Basic | $ (0.27) | [1] | $ 0.55 | [1] | $ 0.48 | [1] | $ 1.47 | [1] | $ (0.23) | [2] | $ 0.40 | [2] | $ 0.39 | [2] | $ 0.30 | [2] | $ 0.05 | [3] | $ 0.27 | [3] | $ 0.55 | [3] | $ 0.25 | [3] | $ 2.23 | $ 0.85 | $ 1.13 |
Earnings (loss) per share, Diluted | $ (0.27) | [1] | $ 0.55 | [1] | $ 0.48 | [1] | $ 1.47 | [1] | $ (0.23) | [2] | $ 0.40 | [2] | $ 0.39 | [2] | $ 0.30 | [2] | $ 0.05 | [3] | $ 0.27 | [3] | $ 0.54 | [3] | $ 0.25 | [3] | $ 2.23 | $ 0.85 | $ 1.11 |
Weighted average number of common shares outstanding, Basic | 9,719,000 | 9,719,000 | 9,719,000 | 9,719,000 | 9,719,000 | 9,719,000 | 9,719,000 | 9,768,000 | 9,839,000 | 9,906,000 | 10,013,000 | 10,296,000 | 9,719,000 | 9,731,000 | 9,941,000 | ||||||||||||
Weighted average number of common shares outstanding, Diluted | 9,719,000 | 9,719,000 | 9,719,000 | 9,719,000 | 9,719,000 | 9,719,000 | 9,721,000 | 9,814,000 | 9,840,000 | 10,047,000 | 10,215,000 | 10,635,000 | 9,719,000 | 9,743,000 | 10,229,000 | ||||||||||||
[1] | Fiscal year 2018 income from operations, net income attributable to RCIHH shareholders, and earnings per share included the impact of a $1.6 million loss on disposition in the second quarter, a $4.7 million in asset impairments ($1.6 million in the second quarter and $3.2 million in the fourth quarter), and a $9.7 million deferred income tax benefit related to the revaluation of deferred tax assets and liabilities in the first quarter. Quarterly effective income tax expense (benefit) rate was (134.3%), 24.2%, 25.3%, and 202.2% from first to fourth quarter, respectively. | ||||||||||||||||||||||||||
[2] | Fiscal year 2017 income from operations, net income attributable to RCIHH shareholders, and earnings per share included the impact of $7.6 million in asset impairment ($1.4 million in the third quarter and $6.2 in the fourth quarter) and $1.3 million additional income tax expense due to change in deferred tax liability rate in the fourth quarter. Quarterly effective income tax expense rate was 33.3%, 33.7%, 32.9%, and 99.6% from first to fourth quarter, respectively. | ||||||||||||||||||||||||||
[3] | Fiscal year 2016 income from operations, net income attributable to RCIHH shareholders, and earnings per share included the impact of $3.5 million in asset impairment in the fourth quarter; and $1.9 million in settlement of lawsuits (significant of which were $540,000 in the first quarter and $1.1 million in the fourth quarter). Quarterly effective income tax expense (benefit) rate was 35.9%, 5.2%, 43.0%, and (109.0%) from first to fourth quarter, respectively. |
Quarterly Results of Operatio_4
Quarterly Results of Operations (Unaudited) - Schedule of Quarterly Financial Information (Details) (Parenthetical) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||
Loss on disposition of assets | $ 1,600,000 | $ (2,162,000) | $ 838,000 | $ (388,000) | |||||||||||
Asset impairment | $ 3,200,000 | $ 1,600,000 | $ 6,200,000 | $ 1,400,000 | 4,736,000 | 7,639,000 | 3,492,000 | ||||||||
Deferred income tax benefit | $ 9,700,000 | (6,775,000) | 2,273,000 | 1,143,000 | |||||||||||
Effective income tax expense rate | 202.20% | 25.30% | 24.20% | 134.30% | 99.60% | 32.90% | 33.70% | 33.30% | (109.00%) | 43.00% | 5.20% | 35.90% | |||
Income tax expense (benefit) | $ 1,300,000 | $ (3,118,000) | $ 6,359,000 | 2,373,000 | |||||||||||
Settlement of lawsuits | $ 1,100,000 | $ 540,000 | $ 1,900,000 |
Impairment of Assets (Details N
Impairment of Assets (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Sep. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 | Jun. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Impairment of assets | $ 3,200 | $ 1,600 | $ 6,200 | $ 1,400 | $ 4,736 | $ 7,639 | $ 3,492 |
Impairment of indefinite lived intangible assets | 5,900 | 6,900 | 2,100 | ||||
Goodwill of Four Club Locations [Member] | |||||||
Impairment of assets | 4,700 | ||||||
Property and Equipment [Member] | |||||||
Impairment of assets | 385 | ||||||
SOB License of Two Club Location [Member] | |||||||
Impairment of assets | 1,400 | ||||||
One Club and One Bombshells [Member] | |||||||
Impairment of assets | 1,600 | ||||||
SOB License of Three Clubs [Member] | |||||||
Impairment of assets | $ 3,100 | ||||||
Property Held for Sale [Member] | |||||||
Impairment of assets | $ 1,400 | ||||||
Investment [Member] | |||||||
Impairment of assets | $ 1,200 |
Segment Information - Schedule
Segment Information - Schedule of Segment Reporting Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |||||||||||||
Revenues | $ 40,676 | $ 42,634 | $ 41,226 | $ 41,212 | $ 39,210 | $ 37,429 | $ 34,518 | $ 33,739 | $ 33,037 | $ 33,952 | $ 34,396 | $ 33,475 | $ 165,748 | $ 144,896 | $ 134,860 | ||||||||||||
Income (loss) from operations | 1,533 | [1] | $ 9,492 | [1] | $ 8,231 | [1] | $ 9,140 | [1] | 1,436 | [2] | $ 7,883 | [2] | $ 7,487 | [2] | $ 6,333 | [2] | 769 | [3] | $ 6,657 | [3] | $ 7,550 | [3] | $ 5,717 | [3] | 28,396 | 23,139 | 20,693 |
Capital expenditures | 25,263 | 11,249 | 28,148 | ||||||||||||||||||||||||
Depreciation and amortization | 7,722 | 6,920 | 7,328 | ||||||||||||||||||||||||
Total assets | 330,566 | 299,884 | 276,061 | 330,566 | 299,884 | 276,061 | |||||||||||||||||||||
Nightclubs [Member] | |||||||||||||||||||||||||||
Revenues | 140,060 | 124,687 | 113,941 | ||||||||||||||||||||||||
Income (loss) from operations | 44,458 | 35,138 | 33,211 | ||||||||||||||||||||||||
Capital expenditures | 2,052 | 5,142 | 22,136 | ||||||||||||||||||||||||
Depreciation and amortization | 5,404 | 5,186 | 5,008 | ||||||||||||||||||||||||
Total assets | 253,169 | 254,432 | 244,332 | 253,169 | 254,432 | 244,332 | |||||||||||||||||||||
Bombshells [Member] | |||||||||||||||||||||||||||
Revenues | 24,094 | 18,830 | 18,690 | ||||||||||||||||||||||||
Income (loss) from operations | 2,040 | 3,084 | 1,152 | ||||||||||||||||||||||||
Capital expenditures | 22,522 | 4,489 | 609 | ||||||||||||||||||||||||
Depreciation and amortization | 1,265 | 1,025 | 1,072 | ||||||||||||||||||||||||
Total assets | 39,560 | 18,870 | 8,378 | 39,560 | 18,870 | 8,378 | |||||||||||||||||||||
Other [Member] | |||||||||||||||||||||||||||
Revenues | 1,594 | 1,379 | 2,229 | ||||||||||||||||||||||||
Income (loss) from operations | (252) | (522) | (2,650) | ||||||||||||||||||||||||
Capital expenditures | 33 | 14 | 10 | ||||||||||||||||||||||||
Depreciation and amortization | 179 | 50 | 684 | ||||||||||||||||||||||||
Total assets | 1,978 | 780 | 896 | 1,978 | 780 | 896 | |||||||||||||||||||||
General Corporate [Member] | |||||||||||||||||||||||||||
Income (loss) from operations | (17,850) | (14,561) | (11,020) | ||||||||||||||||||||||||
Capital expenditures | 656 | 1,604 | 5,393 | ||||||||||||||||||||||||
Depreciation and amortization | 874 | 659 | 564 | ||||||||||||||||||||||||
Total assets | $ 35,859 | $ 25,802 | $ 22,455 | $ 35,859 | $ 25,802 | $ 22,455 | |||||||||||||||||||||
[1] | Fiscal year 2018 income from operations, net income attributable to RCIHH shareholders, and earnings per share included the impact of a $1.6 million loss on disposition in the second quarter, a $4.7 million in asset impairments ($1.6 million in the second quarter and $3.2 million in the fourth quarter), and a $9.7 million deferred income tax benefit related to the revaluation of deferred tax assets and liabilities in the first quarter. Quarterly effective income tax expense (benefit) rate was (134.3%), 24.2%, 25.3%, and 202.2% from first to fourth quarter, respectively. | ||||||||||||||||||||||||||
[2] | Fiscal year 2017 income from operations, net income attributable to RCIHH shareholders, and earnings per share included the impact of $7.6 million in asset impairment ($1.4 million in the third quarter and $6.2 in the fourth quarter) and $1.3 million additional income tax expense due to change in deferred tax liability rate in the fourth quarter. Quarterly effective income tax expense rate was 33.3%, 33.7%, 32.9%, and 99.6% from first to fourth quarter, respectively. | ||||||||||||||||||||||||||
[3] | Fiscal year 2016 income from operations, net income attributable to RCIHH shareholders, and earnings per share included the impact of $3.5 million in asset impairment in the fourth quarter; and $1.9 million in settlement of lawsuits (significant of which were $540,000 in the first quarter and $1.1 million in the fourth quarter). Quarterly effective income tax expense (benefit) rate was 35.9%, 5.2%, 43.0%, and (109.0%) from first to fourth quarter, respectively. |
Segment Information - Schedul_2
Segment Information - Schedule of Disaggregation of Segment Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenues | $ 40,676 | $ 42,634 | $ 41,226 | $ 41,212 | $ 39,210 | $ 37,429 | $ 34,518 | $ 33,739 | $ 33,037 | $ 33,952 | $ 34,396 | $ 33,475 | $ 165,748 | $ 144,896 | $ 134,860 |
Nightclubs [Member] | |||||||||||||||
Sales of alcoholic beverages | 54,800 | 48,655 | 45,677 | ||||||||||||
Sales of food and merchandise | 12,732 | 11,346 | 10,767 | ||||||||||||
Service revenues | 64,054 | 58,013 | 51,276 | ||||||||||||
Other revenues | 8,474 | 6,673 | 6,221 | ||||||||||||
Revenues | 140,060 | 124,687 | 113,941 | ||||||||||||
Bombshells [Member] | |||||||||||||||
Sales of alcoholic beverages | 14,320 | 11,784 | 11,539 | ||||||||||||
Sales of food and merchandise | 9,701 | 6,910 | 7,133 | ||||||||||||
Service revenues | 50 | 119 | |||||||||||||
Other revenues | 23 | 17 | 18 | ||||||||||||
Revenues | 24,094 | 18,830 | 18,690 | ||||||||||||
Other [Member] | |||||||||||||||
Sales of alcoholic beverages | |||||||||||||||
Sales of food and merchandise | |||||||||||||||
Service revenues | |||||||||||||||
Other revenues | 1,594 | 1,379 | 2,229 | ||||||||||||
Revenues | $ 1,594 | $ 1,379 | $ 2,229 |
Noncontrolling Interests (Detai
Noncontrolling Interests (Details Narrative) | Sep. 30, 2018 |
NightClub [Member] | |
Noncontrolling ownership interest | 51.00% |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) $ / shares in Units, $ in Thousands | Feb. 15, 2018 | Aug. 31, 2011USD ($)Integer$ / shares | May 25, 2018 | Jan. 13, 2017 | Oct. 05, 2016 | Aug. 31, 2016 | Oct. 31, 2015 |
Related Party Transactions [Abstract] | |||||||
Due from related party | $ | $ 750 | ||||||
Debt instrument, interest rate | 5.25% | 10.00% | 8.00% | 11.00% | 12.00% | 5.95% | 2.00% |
Debt instrument due date | Feb. 15, 2038 | Aug. 1, 2014 | |||||
Debt instrument, convertible, conversion price | $ 10 | ||||||
Debt instrument, payment terms | The note bore interest at the rate of 10% per annum and matured on August 1, 2014. The note was payable with one initial payment of interest only due January 1, 2012, and, thereafter in ten interest-only quarterly payments. The principal was payable on August 1, 2014. The note was extended in 2014 under the same terms until maturity in October 2017. | ||||||
Consecutive trading days | Integer | 20 | ||||||
Debt instrument, convertible, stock price | $ 13 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - USD ($) | Dec. 06, 2018 | Nov. 01, 2018 | Sep. 14, 2018 | Feb. 15, 2018 | Dec. 14, 2017 | Oct. 05, 2016 | Nov. 30, 2018 | Oct. 31, 2018 | Aug. 31, 2016 | Oct. 31, 2015 | Aug. 31, 2011 | May 25, 2018 | Jan. 13, 2017 |
Debt interest rate | 5.25% | 12.00% | 5.95% | 2.00% | 10.00% | 8.00% | 11.00% | ||||||
Installment amount | $ 7,625 | $ 250,000 | $ 118,817 | $ 100,062 | $ 30,244 | ||||||||
Debt maturity date | Feb. 15, 2038 | Aug. 1, 2014 | |||||||||||
Debt instrument, description | The Company will pay monthly installments of principal of $250,000, applied to the first note, until such time as the loan-to-value ratio of the Properties, based upon reduced principal balance of the New Loan and the then current value of the Properties, is not greater than 65%. | ||||||||||||
Subsequent Event [Member] | 2019 Financing [Member] | |||||||||||||
Note exchange amount | $ 100,000 | ||||||||||||
Subsequent Event [Member] | 12% Unsecured Promissory Notes [Member] | 2019 Financing [Member] | |||||||||||||
Debt interest rate | 12.00% | ||||||||||||
Debt issuance amount | $ 2,350,000 | ||||||||||||
Debt maturity date | Nov. 1, 2021 | ||||||||||||
Note exchange amount | $ 300,000 | ||||||||||||
Borrowings from related party | 500,000 | ||||||||||||
Subsequent Event [Member] | Note One [Member] | 2019 Financing [Member] | |||||||||||||
Debt issuance amount | 450,000 | ||||||||||||
Subsequent Event [Member] | Note Two [Member] | 2019 Financing [Member] | |||||||||||||
Debt issuance amount | $ 200,000 | ||||||||||||
Subsequent Event [Member] | 2019 Acquisitions [Member] | |||||||||||||
Total consideration acquired | $ 10,500,000 | ||||||||||||
Acquisition cash paid | 6,000,000 | ||||||||||||
Acquisition-related costs | 37,000 | ||||||||||||
Subsequent Event [Member] | 2019 Acquisitions [Member] | Pittsburgh Club [Member] | |||||||||||||
Total consideration acquired | 15,100,000 | ||||||||||||
Acquisition cash paid | 7,600,000 | ||||||||||||
Acquisition-related costs | 134,000 | ||||||||||||
Subsequent Event [Member] | 2019 Acquisitions [Member] | 6-Year Seller Financed Note [Member] | |||||||||||||
Total consideration acquired | $ 4,500,000 | ||||||||||||
Debt interest rate | 7.00% | ||||||||||||
Subsequent Event [Member] | 2019 Acquisitions [Member] | 2-Year Seller Financed Note [Member] | Pittsburgh Club [Member] | |||||||||||||
Total consideration acquired | $ 2,000,000 | ||||||||||||
Debt interest rate | 7.00% | ||||||||||||
Subsequent Event [Member] | 2019 Acquisitions [Member] | 10-Year Seller Financed Note [Member] | Pittsburgh Club [Member] | |||||||||||||
Total consideration acquired | $ 5,500,000 | ||||||||||||
Debt interest rate | 8.00% | ||||||||||||
Subsequent Event [Member] | 2019 Disposition [Member] | |||||||||||||
Acquisition cash paid | $ 375,000 | ||||||||||||
Total sales price | $ 1,000,000 | ||||||||||||
Business acquisition disposition description | The Company sold its nightclub in Philadelphia for a total sales price of $1.0 million, payable $375,000 in cash at closing and a 9% note payable over a 10-year period. The note is payable interest-only for twelve months at the conclusion of which time a balloon payment of $250,000 is due, and then the remainder of the principal and interest is payable in 108 equal installments of $5,078 per month until October 2028. | ||||||||||||
Balloon payment | $ 250,000 | ||||||||||||
Installment amount | 5,078 | ||||||||||||
Operating lease payments | $ 36,000 | ||||||||||||
Operating lease term | 10 years | ||||||||||||
Operating lease amount | $ 48,000 | ||||||||||||
Payment to acquire property | $ 6,000,000 | ||||||||||||
Operating lease description | Lessee has option to purchase the property for $6.0 million during a term beginning November 2023 and expiring in October 2028. | ||||||||||||
Gain on sale transaction | $ 890,000 | ||||||||||||
Subsequent Event [Member] | Scarlett's Acquisition [Member] | 2019 Financing [Member] | |||||||||||||
Short-term note payable | $ 5,000,000 | ||||||||||||
Remaining balance of note payable | $ 3,000,000 | ||||||||||||
Debt instrument, description | The Company amended the $5.0 million short-term note payable related to the Scarlett's acquisition, which had a remaining balance of $3.0 million as of December 6, 2018, extending the maturity date from May 8, 2019, as previously amended, to May 8, 2020. |