EARNINGS PER SHARE (EPS)

3 Months Ended

Dec. 31, 2014

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

8.          EARNINGS PER SHARE (EPS)

The Company computes earnings per share in accordance with Accounting Standards Codification (“ASC”) 260, Earnings Per 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 stock warrants and options (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 EPS considers the potential dilution that could occur if the Company’s outstanding common stock options, warrants and convertible debentures were converted into common stock that then shared in the Company’s earnings (as adjusted for interest expense that would no longer occur if the debentures were converted).

(in thousands, except per share data)	FOR THE  QUARTER ENDED
	DECEMBER 31,
	2014		2013
Basic earnings per share:
Net income attributable to RCIHH shareholders	$	3,360	$	2,404
Average number of common shares outstanding		10,264		9,546
Basic earnings (loss) per share:
Net income (loss) attributable to RCIHH shareholders	$	0.33	$	0.25
Diluted earnings per share:
Net income attributable to Rick's shareholders	$	3,360	$	2,404
Adjustment. to net earnings from assumed conversion of debentures (1)		172		21
Adjusted net income (loss) attributable to RCIHH shareholders	$	3,532	$	2,425
Average number of common shares outstanding:
Common shares outstanding		10,264		9,546
Potential dilutive shares resulting from exercise of warrants and options (2)		5		171
Potential dilutive shares resulting from conversion of debentures (1)		660		138
Total average number of common shares outstanding used for dilution		10,929		9,855
Diluted earnings (loss) per share:
Net income (loss) attributable to Rick's shareholders	$	0.32	$	0.25

 (1)  All outstanding warrants and options were considered for the EPS computation. Potential dilutive options and warrants of zero and 726,792 for the three months ended December 31, 2014 and 2013, respectively have been excluded from earnings per share due to being anti-dilutive.

(2)   Convertible debentures (principal and accrued interest) outstanding at December 31, 2014 and 2013 totaling $7.4 million and $11.9 million, respectively, were convertible into common stock at a price of $10.00, $10.25 and $ 12.50 per share in each year.

*EPS may not foot due to rounding.