RCI Hospitality (RICK) 10-Q 7 Mar 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Dec. 31, 2017	Feb. 28, 2018
Document And Entity Information
Entity Registrant Name	RCI HOSPITALITY HOLDINGS, INC.
Entity Central Index Key	935,419
Document Type	10-Q
Document Period End Date	Dec. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		9,718,711
Trading Symbol	RICK
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,018

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2017	Sep. 30, 2017
Current assets
Cash and cash equivalents	$ 11,954	$ 9,922
Accounts receivable, net	4,113	3,187
Inventories	2,419	2,149
Prepaid insurance	2,808	3,826
Other current assets	746	1,399
Assets held for sale	5,565	5,759
Total current assets	27,605	26,242
Property and equipment, net	154,259	148,410
Notes receivable	4,965	4,993
Goodwill	43,866	43,866
Intangibles, net	74,420	74,424
Other assets	1,464	1,949
Total assets	306,579	299,884
Current liabilities
Accounts payable	2,601	2,147
Accrued liabilities	11,584	11,524
Current portion of long-term debt	14,048	17,440
Total current liabilities	28,233	31,111
Deferred tax liability, net	15,844	25,541
Long-term debt	111,944	106,912
Other long-term liabilities	1,324	1,095
Total liabilities	157,345	164,659
Commitments and contingencies (Note 8)
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 December 31, 2017 and September 30, 2017, respectively	97	97
Additional paid-in capital	63,453	63,453
Retained earnings	83,214	69,195
Total RCIHH stockholders’ equity	146,764	132,745
Noncontrolling interests	2,470	2,480
Total stockholders’ equity	149,234	135,225
Total liabilities and stockholders’ equity	$ 306,579	$ 299,884

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2017	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

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands		3 Months Ended
		Dec. 31, 2017	Dec. 31, 2016
Revenues
Sales of alcoholic beverages		$ 17,805	$ 14,375
Sales of food and merchandise		5,307	4,207
Service revenues		15,889	13,475
Other		2,211	1,682
Total revenues		41,212	33,739
Cost of goods sold
Alcoholic beverages sold		3,755	3,168
Food and merchandise sold		2,094	1,653
Service and other		36	60
Cost of goods sold (exclusive of items shown separately below)		5,885	4,881
Salaries and wages		11,377	9,652
Selling, general and administrative		12,812	11,193
Depreciation and amortization		1,909	1,618
Other charges, net		89	62
Total operating expenses		32,072	27,406
Income from operations		9,140	6,333
Other income (expenses)
Interest expense		(3,079)	(2,015)
Interest income		67	37
Income before income taxes		6,128	4,355
Income tax expense (benefit)		(8,227)	1,450
Net income		14,355	2,905
Net income attributable to noncontrolling interests		(44)	(7)
Net income attributable to RCIHH common shareholders		$ 14,311	$ 2,898
Earnings per share attributable to RCIHH common shareholders
Basic		$ 1.47	$ 0.30
Diluted		$ 1.47	$ 0.30
Weighted average number of common shares outstanding
Basic	[1],[2]	9,719,000	9,768,000
Diluted	[1],[2]	9,719,000	9,814,000
Dividend per share		$ 0.03	$ 0.03
[1]	Since January 4, 2017 to date, the Company has no outstanding convertible debt.
[2]	There were no outstanding restricted stock, warrants and options during the three months ended December 31, 2017 and 2016.

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 14,355	$ 2,905
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	1,909	1,618
Deferred taxes	(9,697)
Amortization of debt discount and issuance costs	324	85
Deferred rent	75	40
Loss on sale of assets	140
Gain on insurance settlements	(20)
Debt prepayment penalty	543
Changes in operating assets and liabilities:
Accounts receivable	(926)	644
Inventories	(270)	(87)
Prepaid expenses and other assets	1,044	588
Accounts payable and accrued liabilities	668	(272)
Net cash provided by operating activities	8,145	5,521
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of assets	632
Proceeds from insurance	20
Proceeds from notes receivable	28	20
Additions to property and equipment	(2,769)	(3,008)
Net cash used in investing activities	(2,089)	(2,988)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from long-term debt	58,920	1,900
Payments on long-term debt	(61,256)	(2,152)
Debt prepayment penalty	(543)
Purchase of treasury stock		(1,101)
Payment of dividends	(292)	(290)
Payment of loan origination costs	(799)	(99)
Distribution to noncontrolling interests	(54)	(54)
Net cash used in financing activities	(4,024)	(1,796)
NET INCREASE IN CASH AND CASH EQUIVALENTS	2,032	737
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	9,922	11,327
CASH AND CASH EQUIVALENTS AT END OF PERIOD	11,954	12,064
CASH PAID DURING PERIOD FOR:
Interest	2,890	1,920
Income taxes	157	385
Non-cash transactions:
Refinanced long-term debt	81,200
New note and repaid worth of debt	18,700
Borrowed from lender to purchase an aircraft	$ 7,100
Refinancing of long term debt by borrowing		8,000
Proceeds from borrowing		9,900
Net cash proceeds from borrowing for refinance		1,900
Number of common shares purchased and retired		89,685
Cost of common shares purchased and retired		$ 1,100

Basis of Presentation

Basis of Presentation	3 Months Ended
	Dec. 31, 2017
Accounting Policies [Abstract]
Basis of Presentation	1. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP” or “US 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 GAAP for complete financial statements. The September 30, 2017 consolidated balance sheet data were derived from audited financial statements but do not include all disclosures required by GAAP. 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, 2017 included in the Company’s Annual Report on Form 10-K, as filed with the Securities and Exchange Commission on February 14, 2018. The interim unaudited condensed consolidated financial statements should be read in conjunction with those consolidated financial statements included in the Form 10-K. In the opinion of management, all adjustments considered necessary for a fair presentation of the financial statements, consisting solely of normal recurring adjustments, have been made. Operating results for the three months ended December 31, 2017 are not necessarily indicative of the results that may be expected for the year ending September 30, 2018.

Recent Accounting Standards and

Recent Accounting Standards and Pronouncements	3 Months Ended
	Dec. 31, 2017
Accounting Changes and Error Corrections [Abstract]
Recent Accounting Standards and Pronouncements	2. Recent Accounting Standards and Pronouncements In May 2014, the 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

Selected Account Information

Selected Account Information	3 Months Ended
	Dec. 31, 2017
Selected Account Information - Schedule Of Selling General And Administrative Expenses Details
Selected Account Information	3. Selected Account Information The components of accrued liabilities are as follows (in thousands): December 31, 2017 September 30, 2017 Insurance $ 2,173 $ 3,160 Payroll and related costs 2,375 1,889 Income taxes 1,862 549 Property taxes 1,361 1,270 Sales and liquor taxes 1,000 990 Patron tax 834 801 Unearned revenues 454 196 Lawsuit settlement 37 295 Other 1,488 2,374 $ 11,584 $ 11,524 The components of selling, general and administrative expenses are as follows (in thousands): For the Three Months Ended December 31, 2017 2016 Taxes and permits $ 2,166 $ 2,289 Advertising and marketing 1,965 1,657 Supplies and services 1,368 1,146 Insurance 1,259 935 Rent 940 690 Charge card fees 887 570 Accounting and professional fees 886 497 Utilities 695 670 Security 638 541 Repairs and maintenance 570 466 Legal 377 703 Other 1,061 1,029 $ 12,812 $ 11,193

Long-Term Debt

Long-Term Debt	3 Months Ended
	Dec. 31, 2017
Debt Disclosure [Abstract]
Long-Term Debt	4. Long-Term Debt Long-term debt consisted of the following (in thousands): December 31, 2017 September 30, 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 1,136 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, matures January 2019 - 2,740 Non-interest-bearing debt to State of Texas, matures May 2022, interest imputed at 9.6% 5,365 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 initially at 5.45%, matures July 2020 (amended to December 2027 with refinancing) 10,536 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 1,894 Note payable initially at 5.95%, matures August 2021 (amended to December 2027 with refinancing) 8,095 8,267 Note payable at 12%, matures October 2021 6,704 9,671 Note payable at 4.99%, matures April 2037 934 941 Notes payable at 12%, mature May 2020 5,440 5,440 Note payable at 5%, matures November 2017 3,025 5,000 Note payable at 8%, matures May 2029 15,090 15,291 Note payable at 5%, matures May 2038 4,456 3,441 Note payable initially at 5.75%, matures December 2027 57,904 - Note payable at 5.95%, matures December 2032 7,098 - Total debt 127,677 129,949 Less unamortized debt issuance costs (1,685 ) (597 ) Less current portion (14,048 ) (17,440 ) Total long-term debt $ 111,944 $ 106,912 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 note detailed in (i) above, was $4.6 million that was escrowed and due to the bank lender of one of the Repaid Notes. The amount will be released from escrow when the construction, for which the original note was borrowed, is completed. In December 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 note is payable in 15 years with monthly payments of $59,869, which includes interest. As of December 31, 2017, the Company is in compliance with all its debt covenants. Future maturities of long-term debt consist of the following (in thousands) as of December 31, 2017: Regular Balloon Total 12-Month Period Ending Amortization Payments Payments December 31, 2018 $ 9,129 $ 4,919 $ 14,048 December 31, 2019 9,289 - 9,289 December 31, 2020 7,381 5,440 12,821 December 31, 2021 7,707 - 7,707 December 31, 2022 6,587 3,779 10,366 Thereafter 16,928 56,518 73,446 $ 57,021 $ 70,656 $ 127,677 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 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.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Dec. 31, 2017
Equity [Abstract]
Stockholders' Equity	5. Stockholders’ Equity During the quarter ended December 31, 2017, the Company did not purchase shares of its common stock. The Company also paid a $0.03 per share cash dividend totaling approximately $292,000. During the quarter ended December 31, 2016, the Company purchased and retired 89,685 common shares at a cost of $1.1 million. The Company also paid a $0.03 per share cash dividend totaling approximately $290,000.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Dec. 31, 2017
Earnings per share attributable to RCIHH common shareholders
Earnings Per Share	6. Earnings Per Share Basic earnings per share (“EPS”) 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 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 (as adjusted for interest expense that would no longer occur if the debentures were converted). The table below presents the reconciliation of the numerator and the denominator in the calculation of basic and diluted EPS (in thousands, except per share amounts): For the Three Months Ended December 31, 2017 2016 Numerator - Net income attributable to RCIHH common shareholders – basic $ 14,311 $ 2,898 Adjustment to net income from assumed conversion of debentures(2) - 5 Adjusted net income attributable to RCIHH common shareholders – diluted $ 14,311 $ 2,903 Denominator(1)(3)- Weighted average number of common shares outstanding – basic 9,719 9,768 Effect of potentially dilutive convertible debentures(2) - 46 Adjusted weighted average number of common shares outstanding – diluted 9,719 9,814 Basic earnings per share $ 1.47 $ 0.30 Diluted earnings per share $ 1.47 $ 0.30 (1) There were no outstanding restricted stock, warrants and options during the three months ended December 31, 2017 and 2016. (2) Convertible debentures (principal and accrued interest) outstanding at the beginning of the quarters ended December 31, 2017 and 2016 totaling $0 and $859,000, respectively, were convertible into common stock at a price of $10.25 and $12.50 per share until January 4, 2017, when the last conversion option expired in relation to the payment of the last convertible note. (3) Since January 4, 2017 to date, the Company has no outstanding convertible debt.

Income Taxes

Income Taxes	3 Months Ended
	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Income Taxes	7. Income Taxes Income taxes were a benefit of $8.2 million for the first quarter of 2018 compared to an expense of $1.5 million for the same quarter of 2017. The effective income tax rate for the first quarter of 2018 was a benefit of 134.3% compared with an expense of 33.3% for the comparable period of 2017. Our effective tax rate is affected by state taxes, permanent differences, and tax credits, including the FICA tip credit, for both years while the first quarter of 2018 was significantly impacted by a $9.7 million reduction of our deferred tax liability caused by newly enacted tax laws. On December 22, 2017, the Tax Cuts and Jobs Act (the “Act”) was enacted into law. The Act amends the Internal Revenue Code to reduce tax rates and modify policies, credits, and deductions for individuals and businesses. For businesses, the Act reduces the corporate federal tax rate from a maximum of 35% to a flat 21% rate. The corporate tax rate reduction was effective January 1, 2018. Because the Company has a fiscal year end of September 30, the reduced corporate tax rate will result in the application of a blended federal statutory tax rate for its fiscal year 2018 and then a flat 21% thereafter. Under generally accepted accounting principles, the Company uses the asset and liability method of accounting for income taxes. Under this 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. At September 30, 2017, the Company’s deferred tax assets and liabilities were determined based on the then-current enacted federal tax rate of 35%. As a result of the reduction in the corporate income tax rate under the Act, the Company revalued its deferred tax assets and liabilities at December 31, 2017. Deferred tax assets and liabilities expected to be realized in fiscal year 2018 were re-measured using the aforementioned blended rate. All remaining deferred tax assets and liabilities were re-measured using the new statutory federal rate of 21%. These re-measurements collectively resulted in a discrete tax benefit of $9.7 million that was recognized during the three months ended December 31, 2017. The Company’s revaluation of its deferred tax assets and liabilities is subject to further clarification of the Act and refinements of its estimates. As a result, the actual impact on the deferred tax assets and liabilities and income tax expense due to the Act may vary from the amounts estimated. The Company or one of its subsidiaries files income tax returns for U.S. federal jurisdiction and various states. The Company is no longer subject to federal, state and local income tax examinations by tax authorities for years before 2013. The Company’s federal income tax returns for the fiscal years ended September 30, 2015, 2014 and 2013 are currently under examination by the Internal Revenue Service. The Company accounts for uncertain tax positions pursuant to ASC Topic 740, Income Taxes On December 22, 2017, the SEC issued Staff Accounting Bulletin No. 18 (“SAB 118”), which provides guidance on accounting for the tax effects of the Tax Cuts and Jobs Act. In accordance with SAB 118, the Company has made reasonable estimates related to the following areas impacted by the Act: existing timing differences, reversal of existing timing differences, and accelerated depreciation. As such, the Company has left the measurement period open as of December 31, 2017.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	8. Commitments and Contingencies Legal Matters New York Settlement 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. 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 $15.0 million available to class members and their attorneys. The actual amount paid was determined based on the number of class members responding by the end of a two-month notice period which ended on December 4, 2015. Unclaimed checks or payments reverted back to Peregrine at that time. Based on the current schedule, an initial payment for attorneys’ fees of $1,833,333 was made in October 2015, with two subsequent payments of $1,833,333 each being made in equal annual installments. As part of the settlement, RCIHH was required to guarantee the obligations of RCI Entertainment (New York), Inc. and Peregrine Enterprises, Inc. under the settlement. 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 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 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. We have 8 unresolved cases left out of the original 71 cases. General The Company has been 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. 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 alleges that Mr. Panameno injured Mr. Dupray in a traffic accident after being served alcohol at an establishment operated by JAI Phoenix. The suit alleges JAI Phoenix is 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. A hearing date for the appeal has not yet been scheduled. JAI Phoenix believes the Court’s assessments of liability and damages are unsupportable by the facts of the case and the law, and JAI Phoenix will continue to vigorously defend itself. RCI Hospitality Holdings, Inc. is not a party to the lawsuit. The Company estimates a possible loss in the range of $0 to $5.0 million in this matter. Settlements of lawsuits for the quarters ended December 31, 2017 and 2016 total $27,000 and $73,000, respectively. As of December 31, 2017 and September 30, 2017, the Company has accrued $37,000 and $295,000 in accrued liabilities, respectively, related to settlement of lawsuits.

Segment Information

Segment Information	3 Months Ended
	Dec. 31, 2017
Segment Reporting [Abstract]
Segment Information	9. Segment Information The Company owns and operates adult nightclubs and Bombshells Restaurants and Bars. The Company has identified such reportable 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 divisions and rental income that are not significant to the consolidated financial statements. Below is the financial information related to the Company’s segments (in thousands): For the Three Months Ended December 31, 2017 2016 Revenues Nightclubs $ 35,218 $ 29,282 Bombshells 5,828 4,295 Other 166 162 $ 41,212 $ 33,739 Income (loss) from operations Nightclubs $ 13,371 $ 9,216 Bombshells 891 638 Other (137 ) (341 ) General corporate (4,985 ) (3,180 ) $ 9,140 $ 6,333 Depreciation and amortization Nightclubs $ 1,335 $ 1,242 Bombshells 336 218 Other 2 5 General corporate 236 153 $ 1,909 $ 1,618 Capital expenditures Nightclubs $ 450 $ 795 Bombshells 2,228 1,104 Other - 1 General corporate 91 1,108 $ 2,769 $ 3,008 December 31, 2017 September 30, 2017 Total assets Nightclubs $ 248,187 $ 254,432 Bombshells 28,206 18,870 Other 969 780 General corporate 29,217 25,802 $ 306,579 $ 299,884 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.

Noncontrolling Interests

Noncontrolling Interests	3 Months Ended
	Dec. 31, 2017
Noncontrolling Interest [Abstract]
Noncontrolling Interests	10. 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. 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.

Related Party Transactions

Related Party Transactions	3 Months Ended
	Dec. 31, 2017
Related Party Transactions [Abstract]
Related Party Transactions	11. 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.

Selected Account Information (T

Selected Account Information (Tables)	3 Months Ended
	Dec. 31, 2017
Selected Account Information - Schedule Of Selling General And Administrative Expenses Details
Schedule of Accrued Liabilities	The components of accrued liabilities are as follows (in thousands): December 31, 2017 September 30, 2017 Insurance $ 2,173 $ 3,160 Payroll and related costs 2,375 1,889 Income taxes 1,862 549 Property taxes 1,361 1,270 Sales and liquor taxes 1,000 990 Patron tax 834 801 Unearned revenues 454 196 Lawsuit settlement 37 295 Other 1,488 2,374 $ 11,584 $ 11,524
Schedule of Selling, General and Administrative Expenses	The components of selling, general and administrative expenses are as follows (in thousands): For the Three Months Ended December 31, 2017 2016 Taxes and permits $ 2,166 $ 2,289 Advertising and marketing 1,965 1,657 Supplies and services 1,368 1,146 Insurance 1,259 935 Rent 940 690 Charge card fees 887 570 Accounting and professional fees 886 497 Utilities 695 670 Security 638 541 Repairs and maintenance 570 466 Legal 377 703 Other 1,061 1,029 $ 12,812 $ 11,193

Long-Term Debt (Tables)

Long-Term Debt (Tables)	3 Months Ended
	Dec. 31, 2017
Debt Disclosure [Abstract]
Schedule of Long-term Debt	Long-term debt consisted of the following (in thousands): December 31, 2017 September 30, 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 1,136 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, matures January 2019 - 2,740 Non-interest-bearing debt to State of Texas, matures May 2022, interest imputed at 9.6% 5,365 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 initially at 5.45%, matures July 2020 (amended to December 2027 with refinancing) 10,536 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 1,894 Note payable initially at 5.95%, matures August 2021 (amended to December 2027 with refinancing) 8,095 8,267 Note payable at 12%, matures October 2021 6,704 9,671 Note payable at 4.99%, matures April 2037 934 941 Notes payable at 12%, mature May 2020 5,440 5,440 Note payable at 5%, matures November 2017 3,025 5,000 Note payable at 8%, matures May 2029 15,090 15,291 Note payable at 5%, matures May 2038 4,456 3,441 Note payable initially at 5.75%, matures December 2027 57,904 - Note payable at 5.95%, matures December 2032 7,098 - Total debt 127,677 129,949 Less unamortized debt issuance costs (1,685 ) (597 ) Less current portion (14,048 ) (17,440 ) Total long-term debt $ 111,944 $ 106,912
Schedule of Maturities of Long-term Debt	Future maturities of long-term debt consist of the following (in thousands) as of December 31, 2017: Regular Balloon Total 12-Month Period Ending Amortization Payments Payments December 31, 2018 $ 9,129 $ 4,919 $ 14,048 December 31, 2019 9,289 - 9,289 December 31, 2020 7,381 5,440 12,821 December 31, 2021 7,707 - 7,707 December 31, 2022 6,587 3,779 10,366 Thereafter 16,928 56,518 73,446 $ 57,021 $ 70,656 $ 127,677

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Dec. 31, 2017
Earnings per share attributable to RCIHH common shareholders
Schedule of Earnings Per Share Basic and Diluted	The table below presents the reconciliation of the numerator and the denominator in the calculation of basic and diluted EPS (in thousands, except per share amounts): For the Three Months Ended December 31, 2017 2016 Numerator - Net income attributable to RCIHH common shareholders – basic $ 14,311 $ 2,898 Adjustment to net income from assumed conversion of debentures(2) - 5 Adjusted net income attributable to RCIHH common shareholders – diluted $ 14,311 $ 2,903 Denominator(1)(3)- Weighted average number of common shares outstanding – basic 9,719 9,768 Effect of potentially dilutive convertible debentures(2) - 46 Adjusted weighted average number of common shares outstanding – diluted 9,719 9,814 Basic earnings per share $ 1.47 $ 0.30 Diluted earnings per share $ 1.47 $ 0.30 (1) There were no outstanding restricted stock, warrants and options during the three months ended December 31, 2017 and 2016. (2) Convertible debentures (principal and accrued interest) outstanding at the beginning of the quarters ended December 31, 2017 and 2016 totaling $0 and $859,000, respectively, were convertible into common stock at a price of $10.25 and $12.50 per share until January 4, 2017, when the last conversion option expired in relation to the payment of the last convertible note. (3) Since January 4, 2017 to date, the Company has no outstanding convertible debt.

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Dec. 31, 2017
Segment Reporting [Abstract]
Schedule of Segment Reporting Information	Below is the financial information related to the Company’s segments (in thousands): For the Three Months Ended December 31, 2017 2016 Revenues Nightclubs $ 35,218 $ 29,282 Bombshells 5,828 4,295 Other 166 162 $ 41,212 $ 33,739 Income (loss) from operations Nightclubs $ 13,371 $ 9,216 Bombshells 891 638 Other (137 ) (341 ) General corporate (4,985 ) (3,180 ) $ 9,140 $ 6,333 Depreciation and amortization Nightclubs $ 1,335 $ 1,242 Bombshells 336 218 Other 2 5 General corporate 236 153 $ 1,909 $ 1,618 Capital expenditures Nightclubs $ 450 $ 795 Bombshells 2,228 1,104 Other - 1 General corporate 91 1,108 $ 2,769 $ 3,008 December 31, 2017 September 30, 2017 Total assets Nightclubs $ 248,187 $ 254,432 Bombshells 28,206 18,870 Other 969 780 General corporate 29,217 25,802 $ 306,579 $ 299,884

Selected Account Information -

Selected Account Information - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Sep. 30, 2017
Selected Account Information - Schedule Of Selling General And Administrative Expenses Details
Insurance	$ 2,173	$ 3,160
Payroll and related costs	2,375	1,889
Income taxes	1,862	549
Property taxes	1,361	1,270
Sales and liquor taxes	1,000	990
Patron tax	834	801
Unearned revenues	454	196
Lawsuit settlement	37	295
Other	1,488	2,374
Accrued liabilities	$ 11,584	$ 11,524

Selected Account Information 22

Selected Account Information - Schedule of Selling, General and Administrative Expenses (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Selected Account Information - Schedule Of Selling General And Administrative Expenses Details
Taxes and permits	$ 2,166	$ 2,289
Advertising and marketing	1,965	1,657
Supplies and services	1,368	1,146
Insurance	1,259	935
Rent	940	690
Charge card fees	887	570
Accounting and professional fees	886	497
Utilities	695	670
Security	638	541
Repairs and maintenance	570	466
Legal	377	703
Other	1,061	1,029
Selling, general and administrative	$ 12,812	$ 11,193

Long-Term Debt (Details Narrati

Long-Term Debt (Details Narrative) - USD ($)	Dec. 14, 2017	Dec. 14, 2017	Dec. 31, 2017
Notes payable monthly installments		$ 250,000
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%.
February 15, 2018 [Member]
Loan from bank			$ 3,000,000
Notes payable interest rate			5.25%
Repriced interest rate			1.00%
Debt amortization period			20 years
Purchase of land			$ 4,000,000
Debt instrument due date			Feb. 15, 2038
Lender [Member]
Notes payable interest rate			5.95%
Promissory note term			15 years
Notes payable monthly installments			$ 59,869
Proceeds from issuance of debt			7,100,000
Notes payable carrying value			3,400,000
Lender [Member] | Old Aircraft's Note Payable [Member]
Notes payable carrying value			$ 200,000
Bank Note [Member] | February 20, 2018 [Member]
Notes payable interest rate			2.00%
Loan Agreement [Member] | February 20, 2018 [Member]
Loan from bank			$ 1,900,000
Loan Agreement [Member] | February 20, 2018 [Member] | Construction Loan Payable [Member]
Loan from bank			$ 4,700,000
Repriced interest rate			0.50%
Debt amortization period			20 years
Debt instrument due date			Aug. 20, 2029
Loan Agreement [Member] | Repaid Notes [Member]
Escrowed amount	$ 4,600,000	$ 4,600,000
Fiscal 2018 [Member]
Delay in balloon payments originally scheduled, worth	2,900,000	2,900,000
Fiscal 2020 [Member]
Delay in balloon payments originally scheduled, worth	19,400,000	19,400,000
Fiscal 2021 [Member]
Delay in balloon payments originally scheduled, worth	5,300,000	5,300,000
Floor Rate [Member] | February 15, 2018 [Member]
Repriced interest rate			5.20%
Floor Rate [Member] | Loan Agreement [Member] | February 20, 2018 [Member]
Repriced interest rate			5.50%
Floor Rate [Member] | Loan Agreement [Member] | February 20, 2018 [Member] | Construction Loan Payable [Member]
Repriced interest rate			5.00%
New Loan [Member]
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”).
Notes payable monthly installments		$ 442,058
Write off of debt issuance cost to interest expense	279,000
Prepayment of debt issuance cost	612,500
Payment of debt issuance cost	764,000
Prepayment penalties paid	$ 543,000
New Loan [Member] | Minimum [Member]
Notes payable interest rate	5.00%	5.00%
New Loan [Member] | Maximum [Member]
Notes payable interest rate	12.00%	12.00%
First Note [Member]
Loan from bank		$ 62,500,000
Promissory note term		10 years
Fixed interest rate	5.75%	5.75%
Debt amortization period		20 years
Fixed interest maturity description		first five years
First Note [Member] | U.S.Treasury Rate [Member]
Repriced interest rate	3.50%	3.50%
First Note [Member] | Floor Rate [Member]
Repriced interest rate	5.75%	5.75%
Second Note [Member]
Loan from bank		$ 10,600,000
Promissory note term		10 years
Fixed interest rate	5.45%	5.45%
Notes payable monthly installments		$ 78,098
Debt amortization period		20 years
Fixed interest maturity description		until July 2020
Second Note [Member] | Floor Rate [Member]
Fixed interest rate	5.75%	5.75%
Third Note [Member]
Loan from bank		$ 8,100,000
Promissory note term		10 years
Fixed interest rate	5.95%	5.95%
Repriced interest rate	5.75%	5.75%
Notes payable monthly installments		$ 100,062
Debt amortization period		20 years
Fixed interest maturity description		until August 2021

Long-term Debt - Schedule of Lo

Long-term Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Sep. 30, 2017
Debt Instrument [Line Items]
Total debt	$ 127,677	$ 129,949
Less unamortized debt issuance costs	(1,685)	(597)
Less current portion	(14,048)	(17,440)
Total long-term debt	111,944	106,912
Notes payable One [Member]
Debt Instrument [Line Items]
Total debt		2,358	[1]
Notes Payable Two [Member]
Debt Instrument [Line Items]
Total debt		95	[1]
Notes Payable Three [Member]
Debt Instrument [Line Items]
Total debt	1,136	1,157
Notes Payable Four [Member]
Debt Instrument [Line Items]
Total debt		4,510
Notes Payable Five [Member]
Debt Instrument [Line Items]
Total debt		1,120
Notes Payable Six [Member]
Debt Instrument [Line Items]
Total debt		6,941
Notes Payable Seven [Member]
Debt Instrument [Line Items]
Total debt		6,423	[2]
Notes Payable Eight [Member]
Debt Instrument [Line Items]
Total debt		1,679	[1]
Notes Payable Nine [Member]
Debt Instrument [Line Items]
Total debt		2,740	[2]
Notes Payable Ten [Member]
Debt Instrument [Line Items]
Total debt	5,365	5,613	[1]
Notes Payable Eleven [Member]
Debt Instrument [Line Items]
Total debt		4,484	[1]
Notes Payable Twelve [Member]
Debt Instrument [Line Items]
Total debt		504
Notes Payable Thirteen [Member]
Debt Instrument [Line Items]
Total debt		5,320	[2]
Notes Payable Fourteen [Member]
Debt Instrument [Line Items]
Total debt		1,037
Notes Payable Fifteen [Member]
Debt Instrument [Line Items]
Total debt		1,777	[1]
Notes Payable Sixteen [Member]
Debt Instrument [Line Items]
Total debt	10,536	10,620	[1]
Notes Payable Seventeen [Member]
Debt Instrument [Line Items]
Total debt		4,303	[1]
Notes Payable Eighteen [Member]
Debt Instrument [Line Items]
Total debt		9,672	[1]
Notes Payable Nineteen [Member]
Debt Instrument [Line Items]
Total debt		4,651	[1]
Notes Payable Twenty [Member]
Debt Instrument [Line Items]
Total debt	1,894	1,894	[1]
Notes Payable Twenty One [Member]
Debt Instrument [Line Items]
Total debt	8,095	8,267	[1]
Notes Payable Twenty Two [Member]
Debt Instrument [Line Items]
Total debt	6,704	9,671	[1]
Notes Payable Twenty Three [Member]
Debt Instrument [Line Items]
Total debt	934	941	[1]
Notes Payable Twenty Four [Member]
Debt Instrument [Line Items]
Total debt	5,440	5,440	[1]
Notes Payable Twenty Five [Member]
Debt Instrument [Line Items]
Total debt	3,025	5,000	[1]
Notes Payable Twenty Six [Member]
Debt Instrument [Line Items]
Total debt	15,090	15,291	[1]
Notes Payable Twenty Seven [Member]
Debt Instrument [Line Items]
Total debt	4,456	3,441	[2]
Notes Payable Twenty Eight [Member]
Debt Instrument [Line Items]
Total debt	57,904
Notes Payable Twenty Nine [Member]
Debt Instrument [Line Items]
Total debt	$ 7,098		[2]
[1]	Collateralized by real estate
[2]	Collateralized by stock in subsidiary

Long-term Debt - Schedule of 25

Long-term Debt - Schedule of Long-term Debt (Details) (Parenthetical)	3 Months Ended	12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017
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%	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%	5.00%
Debt instrument, maturity date, description	November 2,017	November 2,017
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

Long-Term Debt - Schedule of Ma

Long-Term Debt - Schedule of Maturities of Long-term Debt (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Sep. 30, 2017
2,018	$ 14,048
2,019	9,289
2,020	12,821
2,021	7,707
2,022	10,366
Thereafter	73,446
Total maturities of long-term debt, net of debt discount	127,677	$ 129,949
Regular Amortization [Member]
2,018	9,129
2,019	9,289
2,020	7,381
2,021	7,707
2,022	6,587
Thereafter	16,928
Total maturities of long-term debt, net of debt discount	57,021
Balloon Payments [Member]
2,018	4,919
2,019
2,020	5,440
2,021
2,022	3,779
Thereafter	56,518
Total maturities of long-term debt, net of debt discount	$ 70,656

Stockholders' Equity (Details N

Stockholders' Equity (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Equity [Abstract]
Cash dividend paid per share	$ 0.03	$ 0.03
Total dividend	$ 292	$ 290
Common stock purchase and retired, shares		89,685
Common stock purchase and retired, value		$ 1,100

Earnings Per Share - Schedule o

Earnings Per Share - Schedule of Earnings Per Share Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended
		Dec. 31, 2017	Dec. 31, 2016
Earnings per share attributable to RCIHH common shareholders
Net income attributable to RCIHH common shareholders - basic		$ 14,311	$ 2,898
Adjustment to net income from assumed conversion of debentures	[1]		5
Adjusted net income attributable to RCIHH common shareholders - diluted		$ 14,311	$ 2,903
Weighted average number of common shares outstanding - basic	[2],[3]	9,719,000	9,768,000
Effect of potentially dilutive convertible debentures	[1],[2],[3]		46,000
Adjusted weighted average number of common shares outstanding - diluted	[2],[3]	9,719,000	9,814,000
Basic earnings per share		$ 1.47	$ 0.30
Diluted earnings per share		$ 1.47	$ 0.30
[1]	Convertible debentures (principal and accrued interest) outstanding at the beginning of the quarters ended December 31, 2017 and 2016 totaling $0 and $859,000, respectively, were convertible into common stock at a price of $10.25 and $12.50 per share until January 4, 2017, when the last conversion option expired in relation to the payment of the last convertible note.
[2]	Since January 4, 2017 to date, the Company has no outstanding convertible debt.
[3]	There were no outstanding restricted stock, warrants and options during the three months ended December 31, 2017 and 2016.

Earnings Per Share - Schedule29

Earnings Per Share - Schedule of Earnings Per Share Basic and Diluted (Details) (Parenthetical) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Number of options outstanding during period
Convertible debenture outstanding	$ 0	$ 859
Convertible Debt [Member]
Number of options outstanding during period
Minimum [Member]
Common stock conversion price	$ 10.25	$ 10.25
Maximum [Member]
Common stock conversion price	$ 12.50	$ 12.50
Restricted Stock [Member]
Number of options outstanding during period
Warrants [Member]
Number of options outstanding during period

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Sep. 30, 2017
Income Tax Disclosure [Abstract]
Income tax (benefit) expense	$ (8,227)	$ 1,450
Effective income tax rate percentage	134.30%	33.30%
Deferred tax liabilities	$ 9,700
Statutory corporate income tax rate description	On December 22, 2017, the Tax Cuts and Jobs Act (the “Act”) was enacted into law. The Act amends the Internal Revenue Code to reduce tax rates and modify policies, credits, and deductions for individuals and businesses. For businesses, the Act reduces the corporate federal tax rate from a maximum of 35% to a flat 21% rate. The corporate tax rate reduction was effective January 1, 2018.
Statutory corporate income tax rate	35.00%
Reducesed percentage of corporate federal tax flat rate by Act	21.00%
Deferred taxes benefit	$ (9,697)
Liability for uncertain tax positions	$ 865		$ 865

Commitments and Contingencies (

Commitments and Contingencies (Details Narrative) - USD ($)	1 Months Ended		3 Months Ended
	Apr. 30, 2017	Oct. 31, 2015	Dec. 31, 2017	Dec. 31, 2016	Sep. 30, 2017	Sep. 22, 2015
Commitments And Contingencies [Line Items]
Payments for legal settlements			$ 27,000	$ 73,000
Accrued liabilities			$ 11,584,000		$ 11,524,000
New York Settlement [Member]
Commitments And Contingencies [Line Items]
Loss contingency, estimate of possible loss						$ 15,000,000
Accrued professional fees		$ 1,833,333
Loss contingency accrual, payments		$ 1,833,333
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
Compensatory Damages [Member] | JAI Phoenix [Member] | Minimum [Member]
Commitments And Contingencies [Line Items]
Possible loss estimated value			$ 0
Compensatory Damages [Member] | JAI Phoenix [Member] | Maximum [Member]
Commitments And Contingencies [Line Items]
Possible loss estimated value			5,000,000
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			$ 37,000		$ 295,000

Segment Information - Schedule

Segment Information - Schedule of Segment Reporting Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Sep. 30, 2017
Revenues	$ 41,212	$ 33,739
Income (loss) from operations	9,140	6,333
Depreciation and amortization	1,909	1,618
Capital expenditures	2,769	3,008
Total assets	306,579	299,884	$ 299,884
Nightclubs [Member]
Revenues	35,218	29,282
Income (loss) from operations	13,371	9,216
Depreciation and amortization	1,335	1,242
Capital expenditures	450	795
Total assets	248,187	254,432
Bombshells [Member]
Revenues	5,828	4,295
Income (loss) from operations	891	638
Depreciation and amortization	336	218
Capital expenditures	2,228	1,104
Total assets	28,206	18,870
Other [Member]
Revenues	166	162
Income (loss) from operations	(137)	(341)
Depreciation and amortization	2	5
Capital expenditures		1
Total assets	969	780
General Corporate [Member]
Income (loss) from operations	(4,985)	(3,180)
Depreciation and amortization	236	153
Capital expenditures	91	1,108
Total assets	$ 29,217	$ 25,802

Noncontrolling Interests (Detai

Noncontrolling Interests (Details Narrative)	Dec. 31, 2017
Noncontrolling Interest [Abstract]
Equity method investment, ownership percentage	51.00%