Segment Information

12 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Segment Information

Segment InformationThe Company owns and operates adult nightclubs and Bombshells Restaurants and Bars. The Company has identified such segments based on management responsibility and the nature of the Company’s products, services and costs. There are no major distinctions in geographical areas served as all operations are in the United States. The Company measures segment profit (loss) as income (loss) from operations. Segment assets are those assets controlled by each reportable segment. The Other category below includes our media and energy drink divisions that are not significant to the consolidated financial statements.

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

	2022		2021		2020
Revenues (from external customers)
Nightclubs	$	206,251	$	137,348	$	88,373
Bombshells	59,925		56,621		43,215
Other	1,444		1,289		739
	$	267,620	$	195,258	$	132,327
Income (loss) from operations
Nightclubs	$	82,798	$	43,815	$	13,056
Bombshells	11,504		13,264		9,237
Other	57		35		(614)
General corporate	(22,900)		(18,566)		(18,933)
	$	71,459	$	38,548	$	2,746
Capital expenditures
Nightclubs	$	17,477	$	6,890	$	3,477
Bombshells	3,586		5,895		2,114
Other	841		157		—
General corporate	2,099		569		145
	$	24,003	$	13,511	$	5,736
Depreciation and amortization
Nightclubs	$	9,604	$	5,494	$	5,799
Bombshells	1,783		1,824		1,785
Other	85		87		415
General corporate	919		833		837
	$	12,391	$	8,238	$	8,836

	September 30, 2022		September 30, 2021
Total assets
Nightclubs	$	428,104	$	280,561
Bombshells	62,021		52,073
Other	2,635		1,573
General corporate	37,978		30,412
	$	530,738	$	364,619

Excluded from revenues in the table above are intercompany rental revenues of the Nightclubs segment amounting to $14.0 million, $11.5 million, and $11.1 million for 2022, 2021, and 2020, respectively, and intercompany sales of Robust Energy Drink of Other segment amounting to $261,000, $141,000, and $70,000 for the same respective years. These intercompany revenue amounts are eliminated upon consolidation.

General corporate expenses include corporate salaries, health insurance and social security taxes for officers, legal, accounting and information technology employees, corporate taxes and insurance, legal and accounting fees, depreciation

and other corporate costs such as automobile and travel costs. Management considers these to be non-allocable costs for segment purposes.

Certain real estate assets previously wholly assigned to Bombshells have been subdivided and allocated to other future development or investment projects. Accordingly, those asset costs have been transferred out of the Bombshells segment.