RCI Hospitality (RICK) 10-Q 4 Aug 16 2016 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Jun. 30, 2016	Jul. 31, 2016
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Entity Registrant Name	RCI HOSPITALITY HOLDINGS, INC.
Entity Central Index Key	935,419
Current Fiscal Year End Date	--09-30
Entity Filer Category	Accelerated Filer
Trading Symbol	RICK
Entity Common Stock, Shares Outstanding		9,833,216

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2016	Sep. 30, 2015
Current assets:
Cash and cash equivalents	$ 10,462	$ 8,020
Accounts receivable:
Trade, net	1,326	1,578
Other, net	636	576
Marketable securities	0	614
Inventories	2,659	2,368
Prepaid expenses and other current assets	2,545	4,010
Total current assets	17,628	17,166
Property and equipment, net	146,783	134,150
Other assets:
Goodwill	52,641	52,641
Indefinite lived intangibles, net	55,728	55,828
Definite lived intangibles, net	4,569	5,021
Other	1,282	2,224
Total other assets	114,220	115,714
Total assets	278,631	267,030
Current liabilities:
Accounts payable	1,909	2,164
Accrued liabilities	10,710	10,990
Current portion of long-term debt	13,992	9,700
Total current liabilities	26,611	22,854
Deferred tax liability	29,295	28,087
Other long-term liabilities	2,298	2,723
Long-term debt	86,957	84,880
Total liabilities	145,161	138,544
Commitments and contingencies
STOCKHOLDERS' EQUITY:
Preferred stock, $.01 par, 1,000 shares authorized; none issued and outstanding	0	0
Common stock, $.01 par, 20,000 shares authorized; 9,778 and 10,285 shares issued and outstanding, respectively	98	103
Additional paid-in capital	65,326	69,729
Accumulated other comprehensive income	0	109
Retained earnings	62,799	52,682
Total RCIHH stockholders’ equity	128,223	122,623
Noncontrolling interests	5,247	5,863
Total stockholders’ equity	133,470	128,486
Total liabilities and stockholders’ equity	$ 278,631	$ 267,030

CONSOLIDATED BALANCE SHEETS _Pa

CONSOLIDATED BALANCE SHEETS [Parenthetical] - $ / shares	Jun. 30, 2016	Sep. 30, 2015
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	1,000	1,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	20,000	20,000
Common stock, shares issued	9,778	10,285
Common stock, shares outstanding	9,778	10,285

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenues:
Sales of alcoholic beverages	$ 14,333	$ 13,909	$ 43,511	$ 42,225
Sales of food and merchandise	4,614	4,671	13,557	14,341
Service revenues	12,780	13,163	38,626	40,538
Other	2,225	1,723	6,129	5,556
Total revenues	33,952	33,466	101,823	102,660
Operating expenses:
Cost of goods sold	5,281	5,033	15,692	15,525
Salaries and wages	8,256	8,176	24,308	24,323
Stock compensation	120	120	360	360
Other general and administrative:
Taxes and permits	3,066	3,149	9,567	9,548
Charge card fees	618	562	1,788	1,653
Rent	725	1,189	2,532	3,514
Legal and professional	1,012	939	3,099	2,962
Advertising and marketing	1,407	1,506	3,937	4,185
Insurance	895	866	2,676	2,487
Utilities	692	727	2,096	2,169
Depreciation and amortization	1,825	1,923	5,468	5,454
Loss (gain) on sale of property	(38)	178	(165)	160
Impairment of assets	0	0	0	1,358
Settlement of lawsuits and other one-time costs	139	10	741	10,560
Gain on settlement of patron tax	0	(8,167)	0	(8,167)
Other	3,297	3,103	9,800	8,893
Total operating expenses	27,295	19,314	81,899	84,984
Operating income	6,657	14,152	19,924	17,676
Other income (expense):
Interest income	1	0	4	39
Interest expense	(2,040)	(1,630)	(5,918)	(5,032)
Gain from acquisition of controlling interest in subsidiary	0	0	0	577
Income before income taxes	4,618	12,522	14,010	13,260
Income taxes	1,986	4,442	3,646	5,023
Net income	2,632	8,080	10,364	8,237
Less: net (income) loss attributable to noncontrolling interests	21	187	346	549
Net income attributable to RCI Hospitality Holdings, Inc.	$ 2,653	$ 8,267	$ 10,710	$ 8,786
Basic earnings per share attributable to RCIHH shareholders:
Net income	$ 0.27	$ 0.81	$ 1.06	$ 0.86
Diluted earnings per share attributable to RCIHH shareholders:
Net income	$ 0.27	$ 0.78	$ 1.06	$ 0.85
Weighted average number of common shares outstanding:
Basic	9,906	10,245	10,071	10,262
Diluted	10,047	10,707	10,211	10,724
Dividends per share	$ 0.03	$ 0	$ 0.06	$ 0

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Net income	$ 2,632	$ 8,080	$ 10,364	$ 8,237
Amounts reclassified from accumulated other comprehensive income	0	0	(109)	0
Other comprehensive income:
Unrealized holding gain (loss) on securities available for sale	0	(5)	0	8
Comprehensive income	2,632	8,075	10,255	8,245
Comprehensive loss attributable to noncontrolling interests	21	187	346	549
Comprehensive income to common stockholders	$ 2,653	$ 8,262	$ 10,601	$ 8,794

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 10,364	$ 8,237
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	5,468	5,454
Deferred taxes	1,174	3,459
Amortization of note discount and beneficial conversion	23	55
Deferred rents	(427)	(24)
Stock compensation expense	360	360
Loss on sale of assets and impairment of assets	0	1,518
Gain on settlement of patron tax	0	(8,167)
Gain from on sale of marketable securities and acquisition of controlling interest in subsidiary	(165)	(577)
Changes in operating assets and liabilities:
Accounts receivable	192	(439)
Inventories	(291)	(410)
Prepaid expenses and other assets	2,402	1,340
Accounts payable and accrued liabilities	(602)	7,474
Cash provided by operating activities	18,498	18,280
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to property and equipment	(17,576)	(3,967)
Proceeds from sale of marketable securities	628	0
Acquisition of businesses, net of cash acquired	0	(2,217)
Net cash used by investing activities	(16,948)	(6,184)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on long-term debt	(9,726)	(9,916)
Proceeds from long-term debt	17,152	4,957
Payment of dividends	(591)	0
Exercise of stock options	0	87
Purchase of treasury stock	(5,781)	(2,296)
Distribution to minority interests	(162)	(162)
Cash provided by (used in) financing activities	892	(7,330)
NET INCREASE IN CASH	2,442	4,766
CASH AT BEGINNING OF PERIOD	8,020	9,964
CASH AT END OF PERIOD	10,462	14,730
CASH PAID DURING PERIOD FOR:
Interest	5,740	4,687
Income taxes	$ 289	$ 2,877

CONSOLIDATED STATEMENTS OF CAS7

CONSOLIDATED STATEMENTS OF CASH FLOWS NON-CASH TRANSACTIONS AND OTHER - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Stock Repurchased and Retired During Period, Shares			606,995	225,280
Stock Repurchased and Retired During Period, Value			$ 5,800,000	$ 2,300,000
Gain On Settlement Of Patron Tax Reclassified To Long Term Debt				$ 7,200,000
Stock Issued During Period, Shares, Acquisitions				200,000
Creditor Converted [Member]
Debt Conversion, Converted Instrument, Shares Issued			75,000
Debt Conversion, Converted Instrument, Amount			$ 750,000
Convertible Debt [Member]
Debt Conversion, Converted Instrument, Shares Issued			25,610	205,067
Debt Conversion, Converted Instrument, Amount			$ 262,500	$ 2,100,000
Real Estate [Member]
Long-term Debt, Total		$ 3,200,000		$ 3,200,000

BASIS OF PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	1. BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q of Regulation S-X. They do not include all information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. However, except as disclosed herein, there has been no material change in the information disclosed in the notes to the consolidated financial statements for the year ended September 30, 2015 included in the Company's Annual Report on Form 10-K, as filed with the Securities and Exchange Commission. The interim unaudited financial statements should be read in conjunction with those financial statements included in the Form 10-K. In the opinion of management, all adjustments considered necessary for a fair presentation, consisting solely of normal recurring adjustments, have been made. Operating results for the nine months ended June 30, 2016 are not necessarily indicative of the results that may be expected for the year ending September 30, 2016.

RECENT ACCOUNTING STANDARDS AND

RECENT ACCOUNTING STANDARDS AND PRONOUNCEMENT	9 Months Ended
	Jun. 30, 2016
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which supersedes nearly all existing revenue recognition guidance under GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing GAAP. The standard is effective for annual periods beginning after December 15, 2016, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). In the accompanying statements of income, the Company has reported revenues for the quarter ended June 30, 2016 and 2015 net of sales taxes and other revenue related taxes, due to a change in accounting policy. Previously, the Company had included these taxes in revenue and expense. In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs Interest - Imputation of Interest In February 2015, the FASB issued ASU No. 2015-02, which amends FASB ASU Topic 810, Consolidations In September 2015, the FASB issued ASU 2015-16, Simplifying the Accounting for Measurement-Period Adjustments In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes In February 2016, the FASB issued guidance (ASU 2016-02, Leases (Topic 842)) on accounting for leases which requires lessees to recognize most leases on their balance sheets for the rights and obligations created by those leases. The guidance requires enhanced disclosures regarding the amount, timing, and uncertainty of cash flows arising from leases and will be effective for interim and annual periods beginning after December 15, 2018. Early adoption is permitted. The guidance requires the use of a modified retrospective approach. We are evaluating the impact of the guidance on our consolidated financial position, results of operations and related disclosures. In March 2016, the FASB issued amended guidance (ASU 2016-09, Compensation - Stock Compensation: Improvement to Employee Share-Based Payment Accounting) related to employee share-based payment accounting. The guidance requires all income tax effects of awards to be recognized in the income statement on a prospective basis. The guidance also requires presentation of excess tax benefits as an operating activity on the statement of cash flows rather than as a financing activity, and can be applied retrospectively or prospectively. The guidance increases the amount companies can withhold to pay income taxes on awards without triggering liability classification for shares used to satisfy statutory income tax withholding obligations and requires application of a modified retrospective transition method. The amended guidance will be effective for interim and annual periods beginning after December 15, 2016; early adoption is permitted if all provisions are adopted in the same period. We are evaluating the impact of the amended guidance on our consolidated financial position, results of operations and related disclosures.

RECLASSIFICATIONS

RECLASSIFICATIONS	9 Months Ended
	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Reclassifications [Text Block]	3. RECLASSIFICATIONS In the accompanying consolidated statements of income, the Company has reported revenues for the quarter and the nine months ended June 30, 2016 and 2015 net of sales taxes and other revenue related taxes, due to a change in accounting policy. Previously, the Company had included these taxes in expense. The reclassifications amounted to $ 2.3 2.3 7.0 7.0 In the accompanying consolidated balance sheet, the Company has reported deferred tax assets and liabilities and assets as of June 30, 2016 and September 30, 2015 as a net item in accordance with ASU 2015-17 explained above. Previously, these balance sheet accounts had been reported gross as assets and liabilities. This change resulted in a reclassification of $ 2.8 3.4 In the accompanying consolidated balance sheet, the Company has reported deferred debt issue costs as a reduction of long-term debt as of June 30, 2016 and September 30, 2015, in accordance with ASU 2015-03 explained above. Previously these balance sheet accounts had been reported as other assets. This change resulted in a reclassification of $ 412,887 339,856

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Significant Accounting Policies [Text Block]	4. SIGNIFICANT ACCOUNTING POLICIES Following are certain significant accounting principles and disclosures. 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. 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. We classify our 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. We measure the fair value of our marketable securities based on quoted prices for identical securities in active markets, or Level 1 inputs. As of June 30, 2016, we reported no available-for-sale securities. In accordance with GAAP, we review our 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, we write down the cost basis of the security and include the loss in current earnings as opposed to an unrealized holding loss. No losses for other than temporary impairments in our marketable securities portfolio were recognized during the quarter ended June 30, 2016. (in thousands) Carrying June 30, 2016, Amount Level 1 Level 2 Level 3 Marketable securities $ - $ - $ - $ - (in thousands) Carrying September 30, 2015 Amount Level 1 Level 2 Level 3 Marketable securities $ 614 $ 614 $ - $ - Assets and Liabilities that are Measured at Fair Value on a Nonrecurring Basis Quoted Prices in Significant Active Markets for Significant Other Unobservable (in thousands) June 30 Identical Asset Observable Inputs Inputs Description 2016 (Level 1) (Level 2) (Level 3) Goodwill $ 52,641 $ - $ - $ 52,641 Property and equipment, net 146,783 - - 146,783 Indefinite lived intangibles 55,728 - - 55,728 Definite lived intangibles, net 4,569 - - 4,569 Fair Value at Reporting Date Using Quoted Prices in Significant Active Markets for Significant Other Unobservable (in thousands) September 30 Identical Asset Observable Inputs Inputs Description 2015 (Level 1) (Level 2) (Level 3) Goodwill $ 52,641 $ - $ - $ 52,641 Property and equipment, net 134,150 - - 134,150 Indefinite lived intangibles 55,828 - - 55,828 Definite lived intangibles, net 5,021 - - 5,021 Total Gains (Losses) (in thousands) Quarters Ended June 30, Description 2016 2015 Goodwill $ - $ - Property and equipment, net - - Indefinite lived intangibles (100) - Definite lived intangibles, net - -

STOCK OPTIONS AND STOCK-BASED E

STOCK OPTIONS AND STOCK-BASED EMPLOYEE COMPENSATION	9 Months Ended
	Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	5. STOCK OPTIONS AND STOCK-BASED EMPLOYEE COMPENSATION Employee and Director Stock Option Plans In 1995, the Company adopted the 1995 Stock Option Plan (the “1995 Plan”) for employees and directors. In August 1999, the Company adopted the 1999 Stock Option Plan (the “1999 Plan”) and in 2010, the Company’s Board of Directors approved the 2010 Stock Option Plan (the “2010 Plan”) (collectively, “the Plans”). The 2010 Plan was approved by the shareholders of the Company at the 2011 Annual Meeting of Shareholders. The options granted under the Plans may be either incentive stock options, or non-qualified options. The Plans are 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 Plans. The compensation costs recognized for each of the nine month periods ended June 30, 2016 and 2015 were $ 360,036 Stock Option Activity There were no stock options outstanding at June 30, 2016, and there were no stock option transactions nor expense for the three months ended June 30, 2016 and 2015.

GOODWILL AND OTHER INTANGIBLES

GOODWILL AND OTHER INTANGIBLES	9 Months Ended
	Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets Disclosure [Text Block]	6. GOODWILL AND OTHER INTANGIBLES (in thousands) 2016 2015 Definite-Lived Licenses Goodwill Definite-Lived Licenses Goodwill Beginning balance $ 5,021 $ 55,828 $ 52,641 $ 729 $ 53,968 $ 43,374 Intangibles acquired - - - 10,375 3,565 3,891 Impairment - - - - (1,358) - Amortization and other (452) (100) - (459) - 51 Ending balance $ 4,569 $ 55,728 $ 52,641 $ 10,645 $ 56,175 $ 47,316 During the nine months ended June 30, 2015, we recorded an impairment of $ 1.4

LONG-TERM DEBT

LONG-TERM DEBT	9 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
Long-term Debt [Text Block]	7. LONG-TERM DEBT During the nine months ended June 30, 2016, a related party creditor converted $ 750,000 75,000 On January 13, 2016, a subsidiary of the Company acquired the land and building in Manhattan where Rick’s Cabaret New York is located. Total consideration was $ 10.0 14,000 5.0 In October 2015, the Company refinanced certain real estate debt amounting to $ 2.3 4.6 2.0 30,244 5.0 In October 2015, the Company entered into a $ 4.7 31,988 5.25 1 2.6 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 4.5 4.0 5.7 5.5 1.8 6 1.1 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 3.5 3.3 3.5 1 1.4 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%. In December 2014, the Company refinanced certain real estate debt amounting to $ 2.1 2.0 13,270 5.25 In December 2014, the Company borrowed $1.0 million from a lender. The note is collateralized by certain real estate, is payable $13,215 per month, including interest at 10% and matures in ten years. In December 2014, the Company borrowed $2.0 million from a lender. The 12% note is collateralized by a certain subsidiary’s stock and is payable interest only until it matures in three years.

COMMON STOCK

COMMON STOCK	9 Months Ended
	Jun. 30, 2016
Equity [Abstract]
Common Stock [Text Block]	8. COMMON STOCK During the nine months ended June 30, 2016, the Company converted debt principal and interest valued at $ 262,500 25,610 During the nine months ended June 30, 2016, a related party creditor converted $ 750,000 75,000 During the nine months ended June 30, 2016, the Company purchased and retired 606,995 5.8 During the nine months ended June 30, 2015, the Company purchased and retired 225,280 2.3 During the nine months ended June 30, 2015, the Company converted debt principal and interest valued at $ 2.1 205,067 During the nine months ended June 30, 2015, the Company issued 200,000

EARNINGS PER SHARE

EARNINGS PER SHARE	9 Months Ended
	Jun. 30, 2016
Earnings Per Share [Abstract]
Earnings Per Share [Text Block]	9. EARNINGS PER SHARE The Company computes earnings per share (“EPS”) in accordance with GAAP. GAAP provides for the calculation of basic and diluted 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”). (In thousands except for per share information) FOR THE QUARTER FOR THE NINE MONTHS ENDED JUNE 30, ENDED JUNE 30, 2016 2015 2016 2015 Basic earnings per share: Net income attributable to RCIHH shareholders $ 2,653 $ 8,267 $ 10,710 $ 8,786 Average number of common shares outstanding 9,906 10,245 10,071 10,262 Basic earnings per share - net income attributable to RCIHH shareholders $ 0.27 $ 0.81 $ 1.06 $ 0.86 Diluted earnings per share: Net income attributable to RCIHH shareholders $ 2,653 $ 8,267 $ 10,710 $ 8,786 Adustment. to net earnings from assumed conversion of debentures (1) 33 118 100 356 Adjusted net income attributable to RCIHH shareholders $ 2,686 $ 8,385 $ 10,810 $ 9,142 Average number of common shares outstanding: Common shares outstanding 9,906 10,245 10,071 10,262 Potential dilutive shares resulting from exercise of warrants and options (2) 1 - - - Potential dilutive shares resulting from conversion of debentures (3) 140 462 140 462 Total average number of common shares outstanding used for dilution 10,047 10,707 10,211 10,724 Diluted earnings per share - net income attributable to RCIHH shareholders $ 0.27 $ 0.78 $ 1.06 $ 0.85 (1) Represents interest expense on dilutive convertible debentures that would not occur if they were assumed converted. (2) All outstanding warrants and options were considered for the EPS computation. Potential dilutive options and warrants of 121,180 172,400 (3) Convertible debentures (principal and accrued interest) outstanding at June 30, 2016 and 2015 totaling $ 1.6 5.3 10.25 12.50 10.00 12.50 462,500 * EPS may not foot due to rounding.

ACQUISITIONS

ACQUISITIONS	9 Months Ended
	Jun. 30, 2016
Business Combinations [Abstract]
Business Combination Disclosure [Text Block]	10. ACQUISITIONS Nine Months Ended June 30, 2015 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 4.5 4.0 5.7 5.5 1.8 6 1.1 (in thousands) Buildings and land $ 4,050 Furniture and fixtures 250 Inventory 109 Goodwill 3,891 Noncompete 200 Net assets $ 8,500 On October 30, 2014, a 51 200,000 200,000 3.6 50,000 1 (in thousands) Inventory and accounts receivable $ 500 Equipment, furniture and fixtures 356 Definite-lived intangibles 4,931 Goodwill 5,326 Accounts payable (1,482) Notes payable (963) Deferred tax liability (1,726) Noncontrolling interest (3,392) Net assets $ 3,550 In accordance with GAAP, the Company recorded a gain of approximately $ 229,000 15 750,000 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 3.5 3.3 3.5 1 1.4 6 2 6.5 (in thousands) Buildings and land $ 3,130 Furniture and fixtures 20 Inventory 4 SOB license 3,546 Noncompete 100 Net assets $ 6,800

INCOME TAXES

INCOME TAXES	9 Months Ended
	Jun. 30, 2016
Income Tax Disclosure [Abstract]
Income Tax Disclosure [Text Block]	11. INCOME TAXES 34 For the Three Months For the Nine Months Ended June 30, Ended June 30, 2016 2015 2016 2015 Computed expected tax expense $ 1,570 $ 4,257 $ 4,763 $ 4,508 State income taxes 733 18 860 166 Permanent differences (67) 167 23 349 Section 45B credit (250) - (2,000) - Total income tax expense $ 1,986 $ 4,442 $ 3,646 $ 5,023 Included in the Company’s deferred tax liabilities at June 30, 2016 is approximately $ 16.4 During the quarter ended March 31, 2016, the Company applied to claim certain additional IRC 45 B FICA Credits for prior years. As a result, $ 1.75 250,000 During the quarter ended June 30, 2016, the Company accrued $ 240,000 775,000 1.0

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies Disclosure [Text Block]	12. COMMITMENTS AND CONTINGENCIES Legal Matters Texas Patron Tax The Company has 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 $ 10.0 119,000 84 5 10.0 9.6 7.2 8.2 7.2 6.4 Legal Matters New York Settlement On April 1, 2015, we and our subsidiaries, RCI Entertainment (New York), Inc. and Peregrine Enterprises, Inc., entered into an agreement to settle in full a New York based federal wage and hour class and collective action filed in the United States District Court for the Southern District of New York. On September 22, 2015, the Court granted final approval of the settlement. Under the terms of the agreement, Peregrine Enterprises, Inc. was to make up to $ 15 1,833,333 1,833,333 Filed in 2009, the case claimed Rick’s Cabaret New York misclassified entertainers as independent contractors. Plaintiffs sought minimum wage for the hours they danced and return of certain fees. RCI Entertainment (New York), Inc. and Peregrine Enterprises, Inc. maintained the dancers were properly classified, and alternatively, amounts earned were well in excess of the minimum wage and should satisfy any obligations. In accordance with GAAP, the Company expensed $ 11.1 5.6 5.5 3.6 1.8 1.8 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. 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 be filed with the Receiver before the close of business on January 16, 2015 and that all pending lawsuits involving IIC as the insurer are 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 multiple civil lawsuits pending or threatened against the Company and its subsidiaries; and other potential lawsuits for incidents that occurred before October 25, 2013 could still be filed. The Company has retained counsel to defend against and evaluate these claims and lawsuits. We are funding 100 Willowbrook Litigation In April 2015, the Company was sued by a landlord in the 33rd 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, Plaintiff’s manager, and Plaintiff’s broker asserting that they committed fraud and that the landlord breached the applicable agreements. It is unknown at this time whether the resolution of this uncertainty will have a material effect on the Company’s financial condition. General The Company is involved in various suits and claims arising in the normal course of business. The ultimate outcome of these items will not have a material adverse effect on the Company’s consolidated statements of income or financial position. Settlements of lawsuits for the nine months ended June 30, 2016 and 2015 totaled $ 0.1 10.6

SEGMENT INFORMATION

SEGMENT INFORMATION	9 Months Ended
	Jun. 30, 2016
Segment Reporting [Abstract]
Segment Reporting Disclosure [Text Block]	13. SEGMENT INFORMATION The Company is engaged in 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, Robust and internet divisions. Three Months Ended Nine Months Ended June 30, June 30, 2016 2015 2016 2015 Business segment sales: Nightclubs $ 28,336 $ 28,687 $ 86,272 $ 87,807 Bombshells 5,005 4,425 14,013 13,407 Other 611 354 1,538 1,446 $ 33,952 $ 33,466 $ 101,823 $ 102,660 Business segment operating income: Nightclubs $ 9,172 $ 17,271 $ 27,844 $ 26,000 Bombshells 905 369 2,150 1,480 Other (650) (682) (2,154) (1,995) General corporate (2,770) (2,806) (7,916) (7,809) $ 6,657 $ 14,152 $ 19,924 $ 17,676 Business segment capital expenditures: Nightclubs $ 110 $ 207 $ 12,616 $ 882 Bombshells 119 300 263 1,853 Other 4 529 6 973 General Corporate 3,782 62 4,691 259 $ 4,015 $ 1,098 $ 17,576 $ 3,967 Business segment depreciation and amortization: Nightclubs $ 1,274 $ 823 $ 3,836 $ 3,731 Bombshells 237 229 700 502 Other 171 733 513 813 General corporate 143 138 419 408 $ 1,825 $ 1,923 $ 5,468 $ 5,454 General corporate expenses include corporate salaries, health insurance and social security taxes for officers, legal, accounting and information technology employees, corporate taxes and insurance, certain 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.

OTHER EXPENSES

OTHER EXPENSES	9 Months Ended
	Jun. 30, 2016
Other Income and Expenses [Abstract]
Other Income and Other Expense Disclosure [Text Block]	14. OTHER EXPENSES For the Three Months For the Nine Months Ended June 30, Ended June 30, (in thousands) 2016 2015 2016 2015 Security $ 534 $ 469 $ 1,553 $ 1,390 Cleaning services and products 459 486 1,332 1,383 Maintenance and repairs 447 413 1,337 1,217 Other 1,857 1,735 5,578 4,903 Total other expenses $ 3,297 $ 3,103 $ 9,800 $ 8,893

SIGNIFICANT ACCOUNTING POLICI22

SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Fair Value Measurement, Policy [Policy Text Block]	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. 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. We classify our 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. We measure the fair value of our marketable securities based on quoted prices for identical securities in active markets, or Level 1 inputs. As of June 30, 2016, we reported no available-for-sale securities. In accordance with GAAP, we review our 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, we write down the cost basis of the security and include the loss in current earnings as opposed to an unrealized holding loss. No losses for other than temporary impairments in our marketable securities portfolio were recognized during the quarter ended June 30, 2016.
Fair Value Assets And Liabilities Measured On Nonrecurring Basis [Policy Text Block]	Assets and Liabilities that are Measured at Fair Value on a Nonrecurring Basis – continued (in thousands) Carrying June 30, 2016, Amount Level 1 Level 2 Level 3 Marketable securities $ - $ - $ - $ - (in thousands) Carrying September 30, 2015 Amount Level 1 Level 2 Level 3 Marketable securities $ 614 $ 614 $ - $ - Assets and Liabilities that are Measured at Fair Value on a Nonrecurring Basis Quoted Prices in Significant Active Markets for Significant Other Unobservable (in thousands) June 30 Identical Asset Observable Inputs Inputs Description 2016 (Level 1) (Level 2) (Level 3) Goodwill $ 52,641 $ - $ - $ 52,641 Property and equipment, net 146,783 - - 146,783 Indefinite lived intangibles 55,728 - - 55,728 Definite lived intangibles, net 4,569 - - 4,569 Fair Value at Reporting Date Using Quoted Prices in Significant Active Markets for Significant Other Unobservable (in thousands) September 30 Identical Asset Observable Inputs Inputs Description 2015 (Level 1) (Level 2) (Level 3) Goodwill $ 52,641 $ - $ - $ 52,641 Property and equipment, net 134,150 - - 134,150 Indefinite lived intangibles 55,828 - - 55,828 Definite lived intangibles, net 5,021 - - 5,021 Total Gains (Losses) (in thousands) Quarters Ended June 30, Description 2016 2015 Goodwill $ - $ - Property and equipment, net - - Indefinite lived intangibles (100) - Definite lived intangibles, net - -

SIGNIFICANT ACCOUNTING POLICI23

SIGNIFICANT ACCOUNTING POLICIES (Tables)	9 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Table Text Block]	Financial assets and liabilities measured at fair value on a recurring basis are summarized below: (in thousands) Carrying June 30, 2016, Amount Level 1 Level 2 Level 3 Marketable securities $ - $ - $ - $ - (in thousands) Carrying September 30, 2015 Amount Level 1 Level 2 Level 3 Marketable securities $ 614 $ 614 $ - $ -
Fair Value Measurements, Nonrecurring [Table Text Block]	Quoted Prices in Significant Active Markets for Significant Other Unobservable (in thousands) June 30 Identical Asset Observable Inputs Inputs Description 2016 (Level 1) (Level 2) (Level 3) Goodwill $ 52,641 $ - $ - $ 52,641 Property and equipment, net 146,783 - - 146,783 Indefinite lived intangibles 55,728 - - 55,728 Definite lived intangibles, net 4,569 - - 4,569 Fair Value at Reporting Date Using Quoted Prices in Significant Active Markets for Significant Other Unobservable (in thousands) September 30 Identical Asset Observable Inputs Inputs Description 2015 (Level 1) (Level 2) (Level 3) Goodwill $ 52,641 $ - $ - $ 52,641 Property and equipment, net 134,150 - - 134,150 Indefinite lived intangibles 55,828 - - 55,828 Definite lived intangibles, net 5,021 - - 5,021 Total Gains (Losses) (in thousands) Quarters Ended June 30, Description 2016 2015 Goodwill $ - $ - Property and equipment, net - - Indefinite lived intangibles (100) - Definite lived intangibles, net - -

GOODWILL AND OTHER INTANGIBLES

GOODWILL AND OTHER INTANGIBLES (Tables)	9 Months Ended
	Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets and Goodwill [Table Text Block]	Following are the changes in the carrying amounts of intangibles for the nine months ended June 30, 2016 and 2015: (in thousands) 2016 2015 Definite-Lived Licenses Goodwill Definite-Lived Licenses Goodwill Beginning balance $ 5,021 $ 55,828 $ 52,641 $ 729 $ 53,968 $ 43,374 Intangibles acquired - - - 10,375 3,565 3,891 Impairment - - - - (1,358) - Amortization and other (452) (100) - (459) - 51 Ending balance $ 4,569 $ 55,728 $ 52,641 $ 10,645 $ 56,175 $ 47,316

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	9 Months Ended
	Jun. 30, 2016
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	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 for per share information) FOR THE QUARTER FOR THE NINE MONTHS ENDED JUNE 30, ENDED JUNE 30, 2016 2015 2016 2015 Basic earnings per share: Net income attributable to RCIHH shareholders $ 2,653 $ 8,267 $ 10,710 $ 8,786 Average number of common shares outstanding 9,906 10,245 10,071 10,262 Basic earnings per share - net income attributable to RCIHH shareholders $ 0.27 $ 0.81 $ 1.06 $ 0.86 Diluted earnings per share: Net income attributable to RCIHH shareholders $ 2,653 $ 8,267 $ 10,710 $ 8,786 Adustment. to net earnings from assumed conversion of debentures (1) 33 118 100 356 Adjusted net income attributable to RCIHH shareholders $ 2,686 $ 8,385 $ 10,810 $ 9,142 Average number of common shares outstanding: Common shares outstanding 9,906 10,245 10,071 10,262 Potential dilutive shares resulting from exercise of warrants and options (2) 1 - - - Potential dilutive shares resulting from conversion of debentures (3) 140 462 140 462 Total average number of common shares outstanding used for dilution 10,047 10,707 10,211 10,724 Diluted earnings per share - net income attributable to RCIHH shareholders $ 0.27 $ 0.78 $ 1.06 $ 0.85 (1) Represents interest expense on dilutive convertible debentures that would not occur if they were assumed converted. (2) All outstanding warrants and options were considered for the EPS computation. Potential dilutive options and warrants of 121,180 172,400 (3) Convertible debentures (principal and accrued interest) outstanding at June 30, 2016 and 2015 totaling $ 1.6 5.3 10.25 12.50 10.00 12.50 462,500

ACQUISITIONS (Tables)

ACQUISITIONS (Tables)	9 Months Ended
	Jun. 30, 2016
Robust [Member]
Business Acquisition [Line Items]
Business Acquisition Fair Values Assets and Liabilities [Table Text Block]	The following information summarizes the allocation of fair values assigned to the assets and liabilities at the purchase date. (in thousands) Inventory and accounts receivable $ 500 Equipment, furniture and fixtures 356 Definite-lived intangibles 4,931 Goodwill 5,326 Accounts payable (1,482) Notes payable (963) Deferred tax liability (1,726) Noncontrolling interest (3,392) Net assets $ 3,550
Texas Saloon Gentlemen’s Club [Member]
Business Acquisition [Line Items]
Business Acquisition Fair Values Assets and Liabilities [Table Text Block]	The following information summarizes the allocation of fair values assigned to the assets at the purchase date. (in thousands) Buildings and land $ 3,130 Furniture and fixtures 20 Inventory 4 SOB license 3,546 Noncompete 100 Net assets $ 6,800
Seville Gentlemens Club [Member]
Business Acquisition [Line Items]
Business Acquisition Fair Values Assets and Liabilities [Table Text Block]	The following information summarizes the allocation of fair values assigned to the assets at the purchase date. (in thousands) Buildings and land $ 4,050 Furniture and fixtures 250 Inventory 109 Goodwill 3,891 Noncompete 200 Net assets $ 8,500

INCOME TAXES (Tables)

INCOME TAXES (Tables)	9 Months Ended
	Jun. 30, 2016
Income Tax Disclosure [Abstract]
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]	Income tax expense on continuing operations for the periods presented differs from the “expected” federal income tax expense computed by applying the U.S. federal statutory rate of 34 For the Three Months For the Nine Months Ended June 30, Ended June 30, 2016 2015 2016 2015 Computed expected tax expense $ 1,570 $ 4,257 $ 4,763 $ 4,508 State income taxes 733 18 860 166 Permanent differences (67) 167 23 349 Section 45B credit (250) - (2,000) - Total income tax expense $ 1,986 $ 4,442 $ 3,646 $ 5,023

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	9 Months Ended
	Jun. 30, 2016
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment [Table Text Block]	Below is the financial information related to the Company’s segments: Three Months Ended Nine Months Ended June 30, June 30, 2016 2015 2016 2015 Business segment sales: Nightclubs $ 28,336 $ 28,687 $ 86,272 $ 87,807 Bombshells 5,005 4,425 14,013 13,407 Other 611 354 1,538 1,446 $ 33,952 $ 33,466 $ 101,823 $ 102,660 Business segment operating income: Nightclubs $ 9,172 $ 17,271 $ 27,844 $ 26,000 Bombshells 905 369 2,150 1,480 Other (650) (682) (2,154) (1,995) General corporate (2,770) (2,806) (7,916) (7,809) $ 6,657 $ 14,152 $ 19,924 $ 17,676 Business segment capital expenditures: Nightclubs $ 110 $ 207 $ 12,616 $ 882 Bombshells 119 300 263 1,853 Other 4 529 6 973 General Corporate 3,782 62 4,691 259 $ 4,015 $ 1,098 $ 17,576 $ 3,967 Business segment depreciation and amortization: Nightclubs $ 1,274 $ 823 $ 3,836 $ 3,731 Bombshells 237 229 700 502 Other 171 733 513 813 General corporate 143 138 419 408 $ 1,825 $ 1,923 $ 5,468 $ 5,454

OTHER EXPENSES (Tables)

OTHER EXPENSES (Tables)	9 Months Ended
	Jun. 30, 2016
Other Income and Expenses [Abstract]
Schedule of Other Operating Cost and Expense, by Component [Table Text Block]	Following is a breakout of the most significant items contained in other expenses in the consolidated statements of income: For the Three Months For the Nine Months Ended June 30, Ended June 30, (in thousands) 2016 2015 2016 2015 Security $ 534 $ 469 $ 1,553 $ 1,390 Cleaning services and products 459 486 1,332 1,383 Maintenance and repairs 447 413 1,337 1,217 Other 1,857 1,735 5,578 4,903 Total other expenses $ 3,297 $ 3,103 $ 9,800 $ 8,893

RECLASSIFICATIONS (Details Text

RECLASSIFICATIONS (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Sep. 30, 2015
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Revenues, Total	$ 33,952,000	$ 33,466,000	$ 101,823,000	$ 102,660,000
Restatement Adjustment [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Revenues, Total	2,300,000	$ 2,300,000	7,000,000	$ 7,000,000
Deferred Tax Assets, Net, Total	2,800,000		2,800,000		$ 3,400,000
Deferred Costs, Total	$ 412,887		$ 412,887		$ 339,856

SIGNIFICANT ACCOUNTING POLICI31

SIGNIFICANT ACCOUNTING POLICIES (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands	Jun. 30, 2016	Sep. 30, 2015
Significant Accounting Policies [Line Items]
Marketable securities	$ 0	$ 614
Fair Value, Inputs, Level 1 [Member]
Significant Accounting Policies [Line Items]
Marketable securities	0	614
Fair Value, Inputs, Level 2 [Member]
Significant Accounting Policies [Line Items]
Marketable securities	0	0
Fair Value, Inputs, Level 3 [Member]
Significant Accounting Policies [Line Items]
Marketable securities	$ 0	$ 0

SIGNIFICANT ACCOUNTING POLICI32

SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($) $ in Thousands	Jun. 30, 2016	Sep. 30, 2015	Jun. 30, 2015	Sep. 30, 2014
Significant Accounting Policies [Line Items]
Goodwill	$ 52,641	$ 52,641	$ 47,316	$ 43,374
Property and equipment, net	146,783	134,150
Indefinite lived intangibles	55,728	55,828
Definite lived intangibles, net	4,569	5,021	10,645	$ 729
Fair Value, Measurements, Nonrecurring [Member]
Significant Accounting Policies [Line Items]
Goodwill	0		0
Property and equipment, net	0		0
Indefinite lived intangibles	(100)		0
Definite lived intangibles, net	0		$ 0
Quoted Prices in Active Markets for Identical Asset (Level 1) [Member]
Significant Accounting Policies [Line Items]
Goodwill	0	0
Property and equipment, net	0	0
Indefinite lived intangibles	0	0
Definite lived intangibles, net	0	0
Significant Other Observable Inputs (Level 2) [Member]
Significant Accounting Policies [Line Items]
Goodwill	0	0
Property and equipment, net	0	0
Indefinite lived intangibles	0	0
Definite lived intangibles, net	0	0
Significant Unobservable Inputs (Level 3) [Member]
Significant Accounting Policies [Line Items]
Goodwill	52,641	52,641
Property and equipment, net	146,783	134,150
Indefinite lived intangibles	55,728	55,828
Definite lived intangibles, net	$ 4,569	$ 5,021

STOCK OPTIONS AND STOCK-BASED33

STOCK OPTIONS AND STOCK-BASED EMPLOYEE COMPENSATION (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense			$ 360,036	$ 360,036
Share-based Compensation, Total	$ 120,000	$ 120,000	$ 360,000	$ 360,000
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation, Total	$ 0	$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Beginning Balance	0	0	0	0

GOODWILL AND OTHER INTANGIBLE34

GOODWILL AND OTHER INTANGIBLES (Details) - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Definite-lived Intangible Assets [Line Items]
Definite- Lived Intangibles, Beginning balance	$ 5,021	$ 729
Definite- Lived Intangibles, Intangibles acquired	0	10,375
Definite- Lived Intangibles, Impairment	0	0
Definite- Lived Intangibles, Amortization and other	(452)	(459)
Definite- Lived Intangibles, Ending balance	4,569	10,645
Licenses, Beginning balance	55,828	53,968
Licenses, Intangibles acquired	0	3,565
Licenses, Impairment	0	(1,358)
Licenses, Amortization and other	(100)	0
Licenses, Ending balance	55,728	56,175
Goodwill, Beginning balance	52,641	43,374
Goodwill, Intangibles acquired	0	3,891
Goodwill, Imapairment	0	0
Goodwill, Amortization and other	0	51
Goodwill, Ending balance	$ 52,641	$ 47,316

GOODWILL AND OTHER INTANGIBLE35

GOODWILL AND OTHER INTANGIBLES (Details Textual) $ in Millions	9 Months Ended
	Jun. 30, 2015USD ($)
Temptations Cabaret [Member]
Goodwill And Intangible Assets [Line Items]
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)	$ 1.4

LONG-TERM DEBT (Details Textual

LONG-TERM DEBT (Details Textual)	Jan. 13, 2016USD ($)ft²	May 04, 2015USD ($)	Jan. 13, 2015USD ($)a	Oct. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Jun. 30, 2016USD ($)shares
Debt Instrument [Line Items]
Payments to Acquire Real Estate	$ 10,000,000
Proceeds from Bank Debt						$ 2,600,000
Construction Loans [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage				5.25%
Debt Instrument, Periodic Payment				$ 31,988
Loans Payable				$ 4,700,000
Construction Loans [Member] | Prime Rate [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage				1.00%
Note Payable to Bank [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	5.00%
Debt Instrument, Term				20 years
Building [Member]
Debt Instrument [Line Items]
Area of Land | ft²	14,000
Real Estate [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage				5.00%	5.25%
Debt Instrument, Periodic Payment				$ 30,244	$ 13,270
Debt Instrument, Term				10 years	10 years
Long-term Debt, Gross				$ 2,300,000	$ 2,100,000
Loans Payable to Bank, Noncurrent				4,600,000	$ 2,000,000
Sale of Stock, Consideration Received on Transaction				$ 2,000,000
Club Business [Member]
Debt Instrument [Line Items]
Business Combination, Consideration Transferred		$ 4,500,000
Seville Gentlemens Club [Member]
Debt Instrument [Line Items]
Business Combination, Consideration Transferred		8,500,000
Sale of Stock, Consideration Received on Transaction		1,100,000
Clubs Real Estate [Member]
Debt Instrument [Line Items]
Business Combination, Consideration Transferred		$ 4,000,000	$ 3,300,000
Area of Land | a			3.5
Texas Saloon Gentlemen’s Club [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage			6.00%
Debt Instrument, Interest Rate, Effective Percentage			6.50%
Business Combination, Consideration Transferred			$ 6,800,000
Area of Land | a			3.5
Sale of Stock, Consideration Received on Transaction			$ 1,000,000
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]
Debt Instrument [Line Items]
Business Combination, Consideration Transferred			$ 3,300,000
Sellers Financing [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Effective Percentage		6.00%
Sale of Stock, Consideration Received on Transaction		$ 1,800,000	$ 1,400,000
Bank Financing [Member] | Silver City [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Effective Percentage		5.50%
Sale of Stock, Consideration Received on Transaction		$ 5,700,000
Lender One [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage					10.00%
Debt Instrument, Payment Terms					ten years
Debt Instrument, Periodic Payment					$ 13,215
Long-term Debt					$ 1,000,000
Lender Two [Member]
Debt Instrument [Line Items]
Debt Instrument, Payment Terms					three years
Long-term Debt					$ 2,000,000
Lender Two [Member] | 12% note payable [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage					12.00%
Creditor Converted [Member]
Debt Instrument [Line Items]
Debt Conversion, Converted Instrument, Amount						$ 750,000
Debt Conversion, Converted Instrument, Shares Issued | shares						75,000

COMMON STOCK (Details Textual)

COMMON STOCK (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Class of Stock [Line Items]
Stock Repurchased and Retired During Period, Shares			606,995	225,280
Stock Repurchased and Retired During Period, Value			$ 5,800,000	$ 2,300,000
Stock Issued During Period, Shares, Acquisitions				200,000
Convertible Debt [Member]
Class of Stock [Line Items]
Debt Conversion, Converted Instrument, Amount			$ 262,500	$ 2,100,000
Debt Conversion, Converted Instrument, Shares Issued			25,610	205,067
Creditor Converted [Member]
Class of Stock [Line Items]
Debt Conversion, Converted Instrument, Amount			$ 750,000
Debt Conversion, Converted Instrument, Shares Issued			75,000

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands		3 Months Ended		9 Months Ended
		Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Basic earnings per share:
Net income attributable to RCIHH shareholders		$ 2,653	$ 8,267	$ 10,710	$ 8,786
Average number of common shares outstanding		9,906	10,245	10,071	10,262
Basic earnings per share - net income attributable to RCIHH shareholders		$ 0.27	$ 0.81	$ 1.06	$ 0.86
Diluted earnings per share:
Net income attributable to RCIHH shareholders		$ 2,653	$ 8,267	$ 10,710	$ 8,786
Adustment. to net earnings from assumed conversion of debentures	[1]	33	118	100	356
Adjusted net income attributable to RCIHH shareholders		$ 2,686	$ 8,385	$ 10,810	$ 9,142
Average number of common shares outstanding:
Common shares outstanding		9,906	10,245	10,071	10,262
Potential dilutive shares resulting from exercise of warrants and options	[2]	1	0	0	0
Potential dilutive shares resulting from conversion of debentures	[3]	140	462	140	462
Total average number of common shares outstanding used for dilution		10,047	10,707	10,211	10,724
Diluted earnings per share - net income attributable to RCIHH shareholders		$ 0.27	$ 0.78	$ 1.06	$ 0.85
[1]	Represents interest expense on dilutive convertible debentures that would not occur if they were assumed converted.
[2]	All outstanding warrants and options were considered for the EPS computation. Potential dilutive options and warrants of 121,180 and 172,400 for the three and nine months ended June 30, 2016 and 2015, respectively, have been excluded from earnings per share due to being anti-dilutive.
[3]	Convertible debentures (principal and accrued interest) outstanding at June 30, 2016 and 2015 totaling $1.6 million and $5.3 million, respectively, were convertible into common stock at a price of $10.25 to $12.50 per share at June 30, 2016 and $10.00 to $12.50 per share at June 30, 2015. Potential dilutive shares of 462,500 for the three and nine month periods ended June 30, 2015 have been excluded from earnings per share due to being anti-dilutive.

EARNINGS PER SHARE (Details Tex

EARNINGS PER SHARE (Details Textual) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Options And Warrants [Member]
Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	121,180	121,180	172,400	172,400
Convertible Debenture [Member]
Earnings Per Share [Line Items]
Convertible Debt	$ 1.6	$ 5.3	$ 1.6	$ 5.3
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount		462,500		462,500
Maximum [Member]
Earnings Per Share [Line Items]
Debt Instrument, Convertible, Conversion Price	$ 12.50	$ 12.50	$ 12.50	$ 12.50
Minimum [Member]
Earnings Per Share [Line Items]
Debt Instrument, Convertible, Conversion Price	$ 10.25	$ 10	$ 10.25	$ 10

ACQUISITIONS (Details)

ACQUISITIONS (Details) - USD ($) $ in Thousands	May 04, 2015	Jan. 13, 2015
Texas Saloon Gentlemens Club [Member]
Business Acquisition [Line Items]
Buildings and land		$ 3,130
Furniture and fixtures		20
Inventory		4
SOB license		3,546
Noncompete		100
Net assets		$ 6,800
Seville Gentlemens Club [Member]
Business Acquisition [Line Items]
Buildings and land	$ 4,050
Furniture and fixtures	250
Inventory	109
Goodwill	3,891
Noncompete	200
Net assets	$ 8,500

ACQUISITIONS (Details 1)

ACQUISITIONS (Details 1) - USD ($) $ in Thousands	Jun. 30, 2016	Sep. 30, 2015	Jun. 30, 2015	Oct. 30, 2014	Sep. 30, 2014
Restructuring Cost and Reserve [Line Items]
Goodwill	$ 52,641	$ 52,641	$ 47,316		$ 43,374
Robust [Member]
Restructuring Cost and Reserve [Line Items]
Inventory and accounts receivable				$ 500
Equipment, furniture and fixtures				356
Definite-lived intangibles				4,931
Goodwill				5,326
Accounts payable				(1,482)
Notes payable				(963)
Deferred tax liability				(1,726)
Noncontrolling interest				(3,392)
Net assets				$ 3,550

ACQUISITIONS (Details Textual)

ACQUISITIONS (Details Textual)	May 04, 2015USD ($)	Jan. 13, 2015USD ($)a	Oct. 31, 2015USD ($)	Oct. 30, 2014USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)	Dec. 31, 2014
Business Acquisition [Line Items]
Net Income (Loss) Attributable to Parent, Total					$ 2,653,000	$ 8,267,000	$ 10,710,000	$ 8,786,000
Seville Club of Minneapolis [Member]
Business Acquisition [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	5.50%
Business Acquisitions Cost Of Acquired Entity Cash Paid	$ 1,100,000
Business Combination, Consideration Transferred	8,500,000
Payment Was Made Through Bank Financing	5,700,000
Payment Was Made Through Seller Financing	$ 1,800,000
Seville Club of Minneapolis [Member] | Seller Financing [Member]
Business Acquisition [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	6.00%
Texas Saloon Gentlemen's Club [Member]
Business Acquisition [Line Items]
Debt Instrument, Interest Rate, Stated Percentage		6.00%
Debt Instrument, Interest Rate, Basis for Effective Rate		variable interest rate equal to the prime rate plus 2%, but in no event less than 6.5%.
Business Combination, Consideration Transferred		$ 6,800,000
Area of Land | a		3.5
Sale of Stock, Consideration Received on Transaction		$ 1,000,000
Sale of Stock, Consideration Received Per Transaction		$ 1,400,000
Net Income (Loss) Attributable to Parent, Total				$ 1,000,000
Debt Instrument, Basis Spread on Variable Rate		2.00%
Debt Instrument, Interest Rate, Effective Percentage		6.50%
Real Estate [Member]
Business Acquisition [Line Items]
Debt Instrument, Interest Rate, Stated Percentage			5.00%						5.25%
Sale of Stock, Consideration Received on Transaction			$ 2,000,000
Real Estate [Member] | Seville Club of Minneapolis [Member]
Business Acquisition [Line Items]
Business Combination, Consideration Transferred	$ 4,000,000
Real Estate [Member] | Texas Saloon Gentlemen's Club [Member]
Business Acquisition [Line Items]
Business Combination, Consideration Transferred		$ 3,300,000
Club Business [Member] | Seville Club of Minneapolis [Member]
Business Acquisition [Line Items]
Business Combination, Consideration Transferred	$ 4,500,000
Club Business [Member] | Texas Saloon Gentlemen's Club [Member]
Business Acquisition [Line Items]
Business Combination, Consideration Transferred		$ 3,500,000
Robust Energy LLC [Member]
Business Acquisition [Line Items]
Payments to Acquire Businesses, Gross				$ 200,000
Noncontrolling Interest, Ownership Percentage by Parent				51.00%
Business Combination, Consideration Transferred				$ 3,600,000
Percentage On Investment				15.00%
Gain (Loss) on Investments				$ 229,000
Investment Owned, at Cost				750,000
Robust Energy LLC [Member] | Common Stock [Member]
Business Acquisition [Line Items]
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable				50,000
Robust Energy LLC [Member] | Restricted Stock [Member]
Business Acquisition [Line Items]
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable				$ 200,000

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Taxes [Line Items]
Computed expected tax expense	$ 1,570	$ 4,257	$ 4,763	$ 4,508
State income taxes	733	18	860	166
Permanent differences	(67)	167	23	349
Section 45B credit	(250)	0	(2,000)	0
Total income tax expense	$ 1,986	$ 4,442	$ 3,646	$ 5,023

INCOME TAXES (Details Textual)

INCOME TAXES (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Mar. 31, 2016	Jun. 30, 2016
Income Taxes [Line Items]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent			34.00%
Deferred Tax Liabilities, Net	$ 16,400,000		$ 16,400,000
Effective Income Tax Rate Reconciliation, Deduction, Amount, Total	250,000	$ 1,750,000
Current Federal, State and Local, Tax Expense (Benefit)	1,000,000
New York State [Member]
Income Taxes [Line Items]
Income Taxes Receivable	240,000		240,000
New York City [Member]
Income Taxes [Line Items]
Income Taxes Receivable	$ 775,000		$ 775,000

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details Textual) - USD ($)	1 Months Ended	3 Months Ended	9 Months Ended
	Oct. 31, 2015	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Sep. 30, 2015
Commitments And Contingencies [Line Items]
Settlement With Imputed Interest Discount			10.00%
Pre Tax Gain For Previously Accrued For Tax			$ 7,200,000
Accrued Professional Fees			1,833,333
Payments for Legal Settlements			100,000	$ 10,600,000
Texas patron tax [Member]
Commitments And Contingencies [Line Items]
Loss Contingency, Damages Sought, Value			10,000,000
Monthly Installment Of Settlement Loss			$ 119,000
Number Of Installments For Settlement			84 months
Patron Tax Rate Per Customer			5
Settlement With Imputed Interest Discount			9.60%
Net Present Value For The Settlement			$ 7,200,000
Pre Tax Gain For Previously Accrued For Tax		$ 8,200,000
Long-term Debt			6,400,000
New York Settlement [Member]
Commitments And Contingencies [Line Items]
Accrued Liabilities			1,800,000
Loss Contingency, Estimate of Possible Loss					$ 15,000,000
Loss Contingency Accrual, Payments	$ 1,833,333
Loss Contingency Expense					$ 11,100,000
Accrued Entertainers Fees			5,600,000
Accrued Liabilities and Other Liabilities, Total			3,600,000
Other Liabilities			1,800,000
Accrued Professional Fees			$ 5,500,000
Indemnity Insurance Corporation [Member]
Commitments And Contingencies [Line Items]
Percentage of Costs of Litigation			100.00%

SEGMENT INFORMATION (Details)

SEGMENT INFORMATION (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Segment information line items [Line Items]
Revenues	$ 33,952	$ 33,466	$ 101,823	$ 102,660
Operating income	6,657	14,152	19,924	17,676
Capital Expenditures	4,015	1,098	17,576	3,967
Depreciation and Amortization	1,825	1,923	5,468	5,454
Nightclubs [Member] | Business Segment [Member]
Segment information line items [Line Items]
Revenues	28,336	28,687	86,272	87,807
Operating income	9,172	17,271	27,844	26,000
Capital Expenditures	110	207	12,616	882
Depreciation and Amortization	1,274	823	3,836	3,731
Bombshells [Member] | Business Segment [Member]
Segment information line items [Line Items]
Revenues	5,005	4,425	14,013	13,407
Operating income	905	369	2,150	1,480
Capital Expenditures	119	300	263	1,853
Depreciation and Amortization	237	229	700	502
Other [Member] | Business Segment [Member]
Segment information line items [Line Items]
Revenues	611	354	1,538	1,446
Operating income	(650)	(682)	(2,154)	(1,995)
Capital Expenditures	4	529	6	973
Depreciation and Amortization	171	733	513	813
General Corporate [Member] | Business Segment [Member]
Segment information line items [Line Items]
Operating income	(2,770)	(2,806)	(7,916)	(7,809)
Capital Expenditures	3,782	62	4,691	259
Depreciation and Amortization	$ 143	$ 138	$ 419	$ 408

OTHER EXPENSES (Details)

OTHER EXPENSES (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Other Expense [Line Items]
Security	$ 534	$ 469	$ 1,553	$ 1,390
Cleaning services and products	459	486	1,332	1,383
Maintenance and repairs	447	413	1,337	1,217
Other	1,857	1,735	5,578	4,903
Total other expenses	$ 3,297	$ 3,103	$ 9,800	$ 8,893