Cover
Cover - USD ($) | 12 Months Ended | ||
Sep. 30, 2023 | Dec. 08, 2023 | Mar. 31, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Sep. 30, 2023 | ||
Current Fiscal Year End Date | --09-30 | ||
Document Transition Report | false | ||
Entity File Number | 001-13992 | ||
Entity Registrant Name | RCI HOSPITALITY HOLDINGS, INC. | ||
Entity Incorporation, State or Country Code | TX | ||
Entity Tax Identification Number | 76-0458229 | ||
Entity Address, Address Line One | 10737 Cutten Road | ||
Entity Address, City or Town | Houston | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 77066 | ||
City Area Code | 281 | ||
Local Phone Number | 397-6730 | ||
Title of 12(b) Security | Common stock, $0.01 par value | ||
Trading Symbol | RICK | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 680,203,604 | ||
Entity Common Stock, Shares Outstanding | 9,359,685 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000935419 |
Audit Information
Audit Information | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Audit Information [Abstract] | ||
Auditor Name | Marcum LLP | Friedman LLP |
Auditor Location | Marlton, New Jersey | Marlton, New Jersey |
Auditor Firm ID | 688 | 711 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Current assets | ||
Cash and cash equivalents | $ 21,023 | $ 35,980 |
Accounts receivable, net | 9,846 | 8,510 |
Current portion of notes receivable | 249 | 230 |
Inventories | 4,412 | 3,893 |
Prepaid expenses and other current assets | 1,943 | 1,499 |
Assets held for sale | 0 | 1,049 |
Total current assets | 37,473 | 51,161 |
Property and equipment, net | 282,705 | 224,615 |
Operating lease right-of-use assets, net | 34,931 | 37,048 |
Notes receivable, net of current portion | 4,443 | 4,691 |
Goodwill | 70,772 | 67,767 |
Intangibles, net | 179,145 | 144,049 |
Other assets | 1,415 | 1,407 |
Total assets | 610,884 | 530,738 |
Current liabilities | ||
Accounts payable | 6,111 | 5,482 |
Accrued liabilities | 16,051 | 11,328 |
Current portion of debt obligations, net | 22,843 | 11,896 |
Current portion of operating lease liabilities | 2,977 | 2,795 |
Total current liabilities | 47,982 | 31,501 |
Deferred tax liability, net | 29,143 | 30,562 |
Debt, net of current portion and debt discount and issuance costs | 216,908 | 190,567 |
Operating lease liabilities, net of current portion | 35,175 | 36,001 |
Other long-term liabilities | 352 | 349 |
Total liabilities | 329,560 | 288,980 |
Commitments and contingencies (Note 10) | ||
Equity | ||
Preferred stock, $0.10 par value per share; 1,000,000 shares authorized; none issued and outstanding | 0 | 0 |
Common stock, $0.01 par value per share; 20,000,000 shares authorized; 9,397,639 shares and 9,231,725 shares issued and outstanding as of September 30, 2023 and 2022, respectively | 94 | 92 |
Additional paid-in capital | 80,437 | 67,227 |
Retained earnings | 201,050 | 173,950 |
Total RCIHH stockholders’ equity | 281,581 | 241,269 |
Noncontrolling interests | (257) | 489 |
Total equity | 281,324 | 241,758 |
Total liabilities and equity | $ 610,884 | $ 530,738 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2023 | Sep. 30, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value per share (in dollars per share) | $ 0.10 | $ 0.10 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares, issued (in shares) | 9,397,639 | 9,231,725 |
Common stock, shares outstanding (in shares) | 9,397,639 | 9,231,725 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenues | |||
Total revenues | $ 293,790 | $ 267,620 | $ 195,258 |
Cost of goods sold | |||
Total cost of goods sold (exclusive of items shown separately below) | 39,002 | 36,009 | 30,051 |
Salaries and wages | 79,500 | 68,447 | 50,627 |
Selling, general and administrative | 93,024 | 78,847 | 54,608 |
Depreciation and amortization | 15,151 | 12,391 | 8,238 |
Other charges, net | 15,629 | 467 | 13,186 |
Total operating expenses | 242,306 | 196,161 | 156,710 |
Income from operations | 51,484 | 71,459 | 38,548 |
Other income (expenses) | |||
Interest expense | (15,926) | (11,950) | (9,992) |
Interest income | 388 | 411 | 253 |
Non-operating gains, net | 0 | 211 | 5,330 |
Income before income taxes | 35,946 | 60,131 | 34,139 |
Income tax expense | 6,846 | 14,071 | 3,989 |
Net income | 29,100 | 46,060 | 30,150 |
Net loss (income) attributable to noncontrolling interests | 146 | (19) | 186 |
Net income attributable to RCIHH common stockholders | $ 29,246 | $ 46,041 | $ 30,336 |
Earnings per share | |||
Basic (in dollars per share) | $ 3.13 | $ 4.91 | $ 3.37 |
Diluted (in dollars per share) | $ 3.13 | $ 4.91 | $ 3.37 |
Weighted average shares used in computing earnings per share | |||
Basic (in shares) | 9,335,983 | 9,383,445 | 9,004,744 |
Diluted (in shares) | 9,335,983 | 9,383,445 | 9,004,744 |
Dividends per share (in dollars per share) | $ 0.23 | $ 0.19 | $ 0.16 |
Alcoholic beverages | |||
Revenues | |||
Total revenues | $ 127,262 | $ 113,316 | $ 86,685 |
Cost of goods sold | |||
Total cost of goods sold (exclusive of items shown separately below) | 23,291 | 20,155 | 15,883 |
Food and merchandise | |||
Revenues | |||
Total revenues | 43,906 | 44,294 | 41,111 |
Cost of goods sold | |||
Total cost of goods sold (exclusive of items shown separately below) | 15,429 | 15,537 | 13,794 |
Service revenues | |||
Revenues | |||
Total revenues | 103,577 | 93,888 | 55,461 |
Other | |||
Revenues | |||
Total revenues | 19,045 | 16,122 | 12,001 |
Service and other | |||
Cost of goods sold | |||
Total cost of goods sold (exclusive of items shown separately below) | $ 282 | $ 317 | $ 374 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Noncontrolling Interests |
Common stock, beginning balance (in shares) at Sep. 30, 2020 | 9,074,569 | |||||
Beginning balance at Sep. 30, 2020 | $ 152,307 | $ 91 | $ 51,833 | $ 100,797 | $ 0 | $ (414) |
Treasury stock, beginning balance (in shares) at Sep. 30, 2020 | 0 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Purchase of treasury shares (in shares) | (74,569) | |||||
Purchase of treasury shares | (1,794) | $ (1,794) | ||||
Canceled treasury shares (in shares) | (74,659) | (74,569) | ||||
Canceled treasury shares | 0 | $ (1) | (1,793) | $ 1,794 | ||
Payment of dividends | (1,440) | (1,440) | ||||
Net income (loss) | 30,150 | 30,336 | (186) | |||
Common stock, ending balance (in shares) at Sep. 30, 2021 | 8,999,910 | |||||
Ending balance at Sep. 30, 2021 | 179,223 | $ 90 | 50,040 | 129,693 | $ 0 | (600) |
Treasury stock, ending balance (in shares) at Sep. 30, 2021 | 0 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common shares for business combination (in shares) | 500,000 | |||||
Issuance of common shares for business combination | 29,933 | $ 5 | 29,928 | |||
Purchase of treasury shares (in shares) | (268,185) | |||||
Purchase of treasury shares | (15,097) | $ (15,097) | ||||
Canceled treasury shares (in shares) | (268,185) | (268,185) | ||||
Canceled treasury shares | 0 | $ (3) | (15,094) | $ 15,097 | ||
Payment of dividends | (1,784) | (1,784) | ||||
Stock-based compensation expense | 2,353 | 2,353 | ||||
Investment from noncontrolling partner | 1,070 | 1,070 | ||||
Net income (loss) | $ 46,060 | 46,041 | 19 | |||
Common stock, ending balance (in shares) at Sep. 30, 2022 | 9,231,725 | 9,231,725 | ||||
Ending balance at Sep. 30, 2022 | $ 241,758 | $ 92 | 67,227 | 173,950 | $ 0 | 489 |
Treasury stock, ending balance (in shares) at Sep. 30, 2022 | 0 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common shares for business combination (in shares) | 200,000 | |||||
Issuance of common shares for business combination | 12,847 | $ 2 | 12,845 | |||
Purchase of treasury shares (in shares) | (34,086) | |||||
Purchase of treasury shares | (2,223) | $ (2,223) | ||||
Canceled treasury shares (in shares) | (34,086) | (34,086) | ||||
Canceled treasury shares | 0 | (2,223) | $ 2,223 | |||
Payment of dividends | (2,146) | (2,146) | ||||
Stock-based compensation expense | 2,588 | 2,588 | ||||
Share in return of investment by noncontrolling partner | (600) | (600) | ||||
Net income (loss) | $ 29,100 | 29,246 | (146) | |||
Common stock, ending balance (in shares) at Sep. 30, 2023 | 9,397,639 | 9,397,639 | ||||
Ending balance at Sep. 30, 2023 | $ 281,324 | $ 94 | $ 80,437 | $ 201,050 | $ 0 | $ (257) |
Treasury stock, ending balance (in shares) at Sep. 30, 2023 | 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income (loss) | $ 29,100 | $ 46,060 | $ 30,150 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 15,151 | 12,391 | 8,238 |
Deferred tax expense (benefit) | (1,781) | 3,080 | (1,253) |
Gain on sale of businesses and assets | (870) | (2,970) | (714) |
Impairment of assets | 12,629 | 1,888 | 13,612 |
Amortization and writeoff of debt discount and issuance costs | 615 | 314 | 311 |
Doubtful accounts expense (reversal) on notes receivable | 0 | 753 | (80) |
Unrealized loss on equity securities | 0 | 0 | 84 |
Gain on insurance | (77) | (463) | (1,337) |
Noncash lease expense | 2,978 | 2,607 | 1,729 |
Stock-based compensation expense | 2,588 | 2,353 | 0 |
Gain on debt extinguishment | 0 | (83) | (5,298) |
Changes in operating assets and liabilities, net of business acquisitions: | |||
Accounts receivable | (2,383) | (175) | (769) |
Inventories | 177 | (554) | (287) |
Prepaid expenses, other current, and other assets | (366) | 387 | 4,120 |
Accounts payable, accrued, and other liabilities | 1,369 | (1,079) | (6,515) |
Net cash provided by operating activities | 59,130 | 64,509 | 41,991 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Proceeds from sale of businesses and assets | 4,245 | 10,669 | 5,415 |
Proceeds from notes receivable | 229 | 182 | 130 |
Proceeds from insurance | 86 | 648 | 1,152 |
Payments for property and equipment and intangible assets | (40,384) | (24,003) | (13,511) |
Acquisition of businesses, net of cash acquired | (29,000) | (55,293) | 0 |
Net cash used in investing activities | (64,824) | (67,797) | (6,814) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from debt obligations, including related party proceeds of $0, $650, and $0, respectively | 11,595 | 35,820 | 38,490 |
Payments on debt obligations | (15,650) | (14,894) | (49,178) |
Purchase of treasury stock | (2,223) | (15,097) | (1,794) |
Payment of dividends | (2,146) | (1,784) | (1,440) |
Payment of loan origination costs | (239) | (463) | (1,174) |
Share in return of investment by noncontrolling partner | (600) | 0 | 0 |
Net cash provided by (used in) financing activities | (9,263) | 3,582 | (15,096) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (14,957) | 294 | 20,081 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 35,980 | 35,686 | 15,605 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | 21,023 | 35,980 | 35,686 |
CASH PAID DURING THE YEAR FOR: | |||
Interest paid, net of amounts capitalized | 15,156 | 11,227 | 10,362 |
Income taxes paid (net of refunds of $1,656, $2,256, and $2,201, in 2023, 2022, and 2021, respectively) | 8,636 | 9,500 | 5,389 |
Non-cash investing and financing transactions: | |||
Debt incurred in connection with acquisition of businesses | 30,405 | 49,000 | 0 |
Debt incurred in connection with purchase of property and equipment | 10,476 | 9,201 | 0 |
Notes receivable received as proceeds from sale of assets | 0 | 2,700 | 0 |
Investment from noncontrolling partner in connection with purchase of property | 0 | 1,070 | 0 |
Issuance of shares of common stock for acquisition of business: | |||
Number of shares | 200 | 500 | 0 |
Fair value at acquisition date | 12,847 | 29,933 | 0 |
Refinanced long-term debt | 0 | 0 | 62,832 |
Adjustment to operating lease right-of-use assets related to new and renewed leases | 1,864 | 21,424 | 491 |
Adjustment to operating lease liabilities related to new and renewed leases | 2,163 | 21,424 | 491 |
Unpaid liabilities on capital expenditures | 1,967 | 1,503 | 830 |
Receivable on eminent domain disposition | $ 0 | $ 1,047 | $ 0 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Cash Flows [Abstract] | |||
Proceeds from related party debt | $ 0 | $ 650 | $ 0 |
Proceeds from income tax refunds | $ 1,656 | $ 2,256 | $ 2,201 |
Nature of Business
Nature of Business | 12 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business | Nature of BusinessRCI Hospitality Holdings, Inc. (the “Company,” “we,” “us,” or “our”) is a holding company incorporated in Texas in 1994. Through its subsidiaries, the Company currently owns and operates establishments that offer live adult entertainment, restaurant, and/or bar operations. These establishments are located in Houston, Austin, San Antonio, Dallas, Fort Worth, Tomball, Katy, Pearland, Dickinson, Odessa, Lubbock, Longview, Tye, Round Rock, Edinburg, El Paso, Harlingen, Arlington, and Beaumont, Texas, as well as Denver, Colorado; Minneapolis, Minnesota; Pittsburgh, Pennsylvania; Charlotte and Raleigh, North Carolina; New York and Newburgh, New York; Miami, Pembroke Park and Miami Gardens, Florida; Phoenix, Arizona; Sulphur, Louisiana; Portland, Maine; Louisville, Kentucky; Indianapolis, Indiana; and Chicago, Washington Park, Sauget, and Kappa, Illinois. The Company also owns and operates media businesses for the adult industry. The Company’s corporate offices are located in Houston, Texas. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Accounting The accounts are maintained and the consolidated financial statements have been prepared using the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP” or “GAAP”). Principles of Consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries in which a controlling interest is owned. Intercompany accounts and transactions have been eliminated in consolidation. Fiscal Year Our fiscal year ends on September 30. References to years 2023, 2022, and 2021 are for fiscal years ended September 30, 2023, 2022, and 2021, respectively. Our fiscal quarters chronologically end on December 31, March 31, June 30 and September 30. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts in the consolidated financial statements and accompanying notes. Estimates and assumptions are based on historical experience, forecasted future events, and various other assumptions that we believe to be reasonable under the circumstances. Estimates and assumptions may vary under different circumstances and conditions. We evaluate our estimates and assumptions on an ongoing basis. Cash and Cash Equivalents The Company considers as cash equivalents all highly liquid investments with a maturity of three months or less when purchased. The Company maintains deposits in several financial institutions, which may at times exceed amounts covered by insurance provided by the U.S. Federal Deposit Insurance Corporation (“FDIC”). The Company has not experienced any losses related to amounts in excess of FDIC limits. Accounts and Notes Receivable Accounts receivable for club and restaurant operations are primarily comprised of credit card charges, which are generally converted to cash in two Note 4 ). Allowance for doubtful accounts balance related to notes receivable was $0 and $0 as of September 30, 2023 and 2022, respectively. Inventories Inventories include alcoholic beverages, energy drinks, food, and Company merchandise. Inventories are carried at the lower of cost (on a first-in, first-out (“FIFO”) basis), or net realizable value. Property and Equipment Property and equipment are stated at cost. Provisions for depreciation and amortization are made using straight-line rates over the estimated useful lives of the related assets, and the shorter of useful lives or terms of the applicable leases for leasehold improvements. Buildings have estimated useful lives ranging from 29 to 40 years. Furniture and equipment have estimated useful lives of 5 to 7 years, while leasehold improvements are depreciated at the shorter of the lease term or estimated useful life. Expenditures for major renewals and betterments that extend the useful lives are capitalized. Expenditures for normal maintenance and repairs are expensed as incurred. The cost of assets sold, retired or abandoned and the related accumulated depreciation are written off from the accounts, and any gains or losses are charged or credited in the accompanying consolidated statement of income of the respective period. Interest expense from related debt incurred during site construction is capitalized, which amounted to $0 in all three fiscal years presented. Goodwill and Other Intangible Assets Goodwill and other intangible assets with indefinite lives are not amortized but reviewed on an annual basis for impairment. Definite-lived intangible assets are amortized on a straight-line basis over their estimated lives. The costs of transferable licenses purchased through open markets are capitalized as indefinite-lived intangible assets. The costs of obtaining non-transferable licenses that are directly issued by local government agencies are expensed as incurred. Annual license renewal fees are expensed over their renewal term. Goodwill and other intangible assets that have indefinite useful lives are tested annually for impairment during our fourth fiscal quarter and are tested for impairment more frequently if events and circumstances indicate that the asset might be impaired. An impairment loss is recognized to the extent that the carrying amount exceeds the asset’s fair value. For our goodwill impairment review, we have the option to first perform a qualitative assessment to determine if it is more likely than not that the fair value of the reporting unit is less than its carrying value. This assessment is based on several factors, including industry and market conditions, overall financial performance, including an assessment of cash flows in comparison to actual and projected results of prior periods. If it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying value based on our qualitative analysis, or if we elect to skip this step, we perform a Step 1 quantitative analysis to determine the fair value of the reporting unit. The fair value is determined using market-related valuation models, including discounted cash flows and comparable asset market values. We recognize goodwill impairment in the amount that the carrying value of the reporting unit exceeds the fair value of the reporting unit, not to exceed the amount of goodwill allocated to the reporting unit, based on the results of our Step 1 analysis. For the year ended September 30, 2023, we identified four reporting units that were impaired and recognized a goodwill impairment loss totaling $4.2 million. For the year ended September 30, 2022, we identified one reporting unit that was impaired and recognized a goodwill impairment loss of $566,000. For the year ended September 30, 2021, we identified seven reporting units that were impaired and recognized a goodwill impairment loss totaling $6.3 million. For indefinite-lived intangibles, specifically sexually-oriented business ("SOB") licenses, we determine fair value by estimating the multiperiod excess earnings of the asset. For indefinite-lived tradename, we determine fair value by using the relief from royalty method. The fair value is then compared to the carrying value and an impairment charge is recognized by the amount by which the carrying amount exceeds the fair value of the asset. We recorded impairment charges for SOB licenses amounting to $6.5 million in 2023 related to eight clubs, $293,000 in 2022 related to one club, $5.3 million in 2021 related to three clubs, which are included in other charges, net in the consolidated statements of income. Impairment of Long-Lived Assets The Company reviews long-lived assets, such as property and equipment, intangible assets subject to amortization, and right-of-use assets on operating leases for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. These events or changes in circumstances include, but are not limited to, significant underperformance relative to historical or projected future operating results, significant changes in the manner of use of the acquired assets or the strategy for the overall business, and significant negative industry or economic trends. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the asset group to the estimated undiscounted cash flows over the estimated remaining useful life of the primary asset included in the asset group. If the asset group is not recoverable, the impairment loss is calculated as the excess of the carrying value over the fair value. We define our asset group as an operating club or restaurant location, which is also our reporting unit or the lowest level for which cash flows can be identified. Assets to be disposed of are separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell and are no longer depreciated. For assets held for sale, we measure fair value using an estimation based on quoted prices for similar items in active or inactive markets (level 2) developed using observable data. The assets and liabilities of a disposal group classified as held for sale are presented separately in the appropriate asset and liability sections of the balance sheet. During fiscal 2023, the Company impaired one club for $58,000; during 2022, the Company impaired one club and one Bombshells for a total of $1.0 million; and during fiscal 2021, the Company impaired five clubs (including one later reclassified as held for sale) for a total of $2.0 million. The Company also impaired one club in fiscal 2023 for operating lease right-of-use assets amounting to $1.0 million and software amounting to $814,000 related to two venture projects. See Notes 5 and 18 . Fair Value of Financial Instruments The Company calculates the fair value of its assets and liabilities which qualify as financial instruments and includes this additional information in the notes to consolidated financial statements when the fair value is different than the carrying value of these financial instruments. The estimated fair value of accounts receivable, accounts payable and accrued liabilities approximate their carrying amounts due to the relatively short maturity of these instruments. The carrying value of notes receivable and short and long-term debt also approximates fair value since these instruments bear market rates of interest. None of these instruments are held for trading purposes. Revenue Recognition The Company recognizes revenue from the sale of alcoholic beverages, food and merchandise, service and other revenues at the point-of-sale upon receipt of cash, check, or credit card charge, net of discounts and promotional allowances based on consideration specified in implied contracts with customers. Sales and liquor taxes collected from customers and remitted to governmental authorities are presented on a net basis in the accompanying consolidated statements of income. The Company recognizes revenue when it satisfies a performance obligation (point in time of sale) by transferring control over a product or service to a customer. Commission revenues, such as ATM commission, are recognized when the basis for such commission has transpired. Revenues from the sale of magazines and advertising content are recognized when the issue is published and shipped. Revenues and external expenses related to the Company’s annual Expo convention are recognized upon the completion of the convention, which normally occurs during our fiscal fourth quarter. Lease revenue (included in other revenues) is recognized when earned (recognized over time) and is more appropriately covered by guidance under ASC 842, Leases . Lease revenue is generally recognized ratably over the term of the lease. A substantial portion of our lessor contracts are classified as operating lease and a number of them are month-to-month or short-term contracts. Revenue from initial franchise and area development fees are recognized as the performance obligations are satisfied over the term of the franchise agreement. Franchise royalties and advertising contributions, which are a percentage of net sales of franchised restaurants, are recognized in the period the related sales occur. Refer to Notes 3 and 18 for additional disclosures on revenues and leases, respectively. Advertising and Marketing Advertising and marketing expenses are primarily comprised of costs related to public advertisements and giveaways, which are used for promotional purposes. Advertising and marketing expenses are expensed as incurred and are included in selling, general and administrative expenses in the accompanying consolidated statements of income. See Note 4 . Income Taxes The Company and its subsidiaries are subject to U.S. federal income tax and income taxes imposed in the state and local jurisdictions where we operate our businesses. Deferred income taxes are determined using the liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. In addition, a valuation allowance is established to reduce any deferred tax asset for which it is determined that it is more likely than not that some portion of the deferred tax asset will not be realized. U.S. GAAP creates a single model to address accounting for uncertainty in tax positions by prescribing a minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. We recognize penalties related to unrecognized tax benefits as a component of selling, general and administrative expenses, and recognize interest accrued related to unrecognized tax benefits in interest expense. Investments Investments in companies in which the company has a 20% to 50% interest are accounted for using the equity method, which are carried at cost and adjusted for the Company’s proportionate share of their undistributed earnings or losses. Investments in companies in which the Company owns less than a 20% interest, or where the Company does not exercise significant influence, are accounted for at cost and reviewed for any impairment. Cost and equity method investments are included in other assets in the Company’s consolidated balance sheets. Paycheck Protection Program The Company’s policy is to account for the Paycheck Protection Program (“PPP”) loans as debt (see Note 8 ). The Company will continue to record the loans as debt until either (1) the loans are partially or entirely forgiven and the Company has been legally released from the obligation, at which point the amount forgiven will be recorded as income, or (2) the Company pays off the loans. 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 or losses of the Company. Potential common stock shares consist of shares that may arise from outstanding dilutive common restricted stock, stock options and warrants (the number of which is computed using the treasury stock method) and from outstanding convertible debentures (the number of which is computed using the if-converted method). Diluted earnings per share considers the potential dilution that could occur if the Company’s outstanding common restricted stock, stock options, warrants and convertible debentures were converted into common stock that then shared in the Company’s earnings or losses (as adjusted for interest expense, that would no longer be incurred if the debentures were converted). During the years ended September 30, 2023, 2022, and 2021, the Company did not have any adjustment items to reconcile the numerator and the denominator in the calculation of basic and diluted earnings per share. For fiscal 2023 and 2022, we excluded 300,000 stock options from the calculation of diluted earnings per share because the effect was anti-dilutive. There were no other potentially dilutive securities outstanding during fiscal 2021. Business Combinations The Company accounts for business combinations under the acquisition method of accounting, which requires the recognition of acquired tangible and identifiable intangible assets and assumed liabilities at their acquisition date fair values. The excess of the acquisition price over the fair value of assets acquired and liabilities assumed is recorded as goodwill. Results of operations related to acquired entities are included prospectively beginning with the date of acquisition. Acquisition-related costs are expensed as incurred. Share Repurchases The Company accounts for treasury stock transactions using the cost method. When treasury shares are retired, we charge the excess of the repurchase price over the par value of the repurchased shares to additional paid-in capital. We also charge additional paid-in capital for any excise tax incurred related to share repurchases. Stock-based Compensation The Company recognizes all employee stock-based compensation in selling, general and administrative expenses in our consolidated statements of operations. Equity-classified awards are measured at the grant date fair value of the award and recognized as expense over their requisite service period. The Company estimates grant date fair value of stock options using the Black-Scholes option-pricing model. The following table provides the significant assumptions used in determining the estimated grant date fair value of the stock options granted in fiscal 2022. No grants were awarded in fiscal 2023 and 2021. Expected term (in years) 4.45 Expected volatility 64.42 % Expected dividend yield 0.20 % Risk-free rate 3.23 % The expected term was estimated using the historical exercise and post-vesting expiration behavior of grantees on stock options awarded prior to the 2022 Plan. The expected volatility was based on historical volatility of the Company's stock price for a period equal to the award's expected term. The expected dividend yield is based on the current dividend payout activity and the exercise price (that is, the expected dividends that would likely be reflected in an amount at which the stock option would be exchanged). The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant. We recognize forfeitures when they occur. Legal and Other Contingencies The Company records a liability when it is probable that a loss has been incurred and the amount is reasonably estimable. There is significant judgment required in both the probability determination and as to whether an exposure can be reasonably estimated. In the opinion of management, there was not at least a reasonable possibility that we may have incurred a material loss, or a material loss in excess of a recorded accrual, with respect to loss contingencies for asserted legal and other claims. The Company recognizes legal fees and expenses, including those related to legal contingencies, as incurred. Generally, the Company recognizes gain contingencies when they are realized or when all related contingencies have been resolved. The Company maintains insurance that covers claims arising from risks associated with the Company’s business including claims for workers’ compensation, general liability, property, auto, and business interruption coverage. The Company carries substantial insurance to cover such risks with large deductibles and/or self-insured retention. These policies have been structured to limit our per-occurrence exposure. The Company believes, and the Company’s experience has been, that such insurance policies have been sufficient to cover such risks. Fair Value Measurement The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels. U.S. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: • Level 1 – Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2 – Include other inputs that are directly or indirectly observable in the marketplace. • Level 3 – Unobservable inputs which are supported by little or no market activity. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company classifies its marketable securities as available-for-sale, which are reported at fair value. Realized gains and losses (including unrealized holding gains and losses) from securities classified as available-for-sale are included in comprehensive income. The Company measures the fair value of its marketable securities based on quoted prices for identical securities in active markets, or Level 1 inputs. In accordance with U.S. GAAP, the Company reviews its marketable securities to determine whether a decline in fair value of a security below the cost basis is other than temporary. Should the decline be considered other than temporary, the Company writes down the cost basis of the security and include the loss in current earnings as opposed to an unrealized holding loss. No losses or other-than-temporary impairments in our marketable securities portfolio were recognized during the years ended September 30, 2023, 2022, and 2021. Assets and Liabilities that are Measured at Fair Value on a Nonrecurring Basis Assets and liabilities that are measured at fair value on a nonrecurring basis relate primarily to tangible property and equipment, goodwill and other intangible assets, which are remeasured when the derived fair value is below carrying value in the consolidated balance sheets. For these assets, the Company does not periodically adjust carrying value to fair value except in the event of impairment. If it is determined that impairment has occurred, the carrying value of the asset is reduced to fair value and the difference is included in other charges, net in the consolidated statements of operations. Assets and liabilities that are measured at fair value on a nonrecurring basis are as follows (in thousands): Fair Value at Reporting Date Using Description September 30, Quoted Prices in Active Markets for Identical Asset Significant Other Observable Inputs Significant Unobservable Inputs Property and equipment* $ 21,454 $ — $ — $ 21,454 Indefinite-lived intangibles* 43,948 — — 43,948 Indefinite-lived intangibles** 2,996 — — 2,996 Definite-lived intangibles** 8,220 — — 8,220 Goodwill* 6,881 — — 6,881 Goodwill** 1,084 — — 1,084 Current assets* 696 — — 696 Fair Value at Reporting Date Using Description September 30, Quoted Prices in Active Markets for Identical Asset Significant Other Observable Inputs Significant Unobservable Inputs Property and equipment* $ 32,904 $ — $ — $ 32,904 Property and equipment** 3,432 — — 3,432 Indefinite-lived intangibles* 50,454 — — 50,454 Definite-lived intangibles* 27,986 — — 27,986 Goodwill* 20,608 — — 20,608 Goodwill** 663 — — 663 Current assets* 681 — — 681 * Certain assets and liabilities measured at the acquisition dates. ** Measured at year-end impairment testing. Unrealized Gain (Loss/Impairments) Recognized Years Ended September 30, Description 2023 2022 2021 Goodwill $ (4,239) $ (566) $ (6,307) Property and equipment, net (including held for sale) (58) (1,029) (2,202) Indefinite-lived intangibles (5,516) (293) (5,296) Definite-lived intangibles (1,813) — — Operating lease right-of-use assets (1,003) — — Other assets (equity securities) — — (84) The significant unobservable inputs used in our level 3 fair value measurements are as follows: Range (Weighted Average) Areas Valuation Techniques Unobservable Input 2023 2022 2021 Property and equipment Discounted cash flow EBITDA multiple 1x - 12x (11x) 9x - 10x (10x) 8x (8x) Revenue/EBITDA growth rate 0% - 2.5% (1.25%) 0% - 2.5% (1.5%) 0% - 2.5% (1%) Weighted average cost of capital 11% (11.0%) 12.5% (12.5%) 13% - 17% (15%) Goodwill Discounted cash flow EBITDA multiple 9x - 12x (12x) 8x - 10x (9x) 8x (8x) Revenue/EBITDA growth rate 0% - 2.5% (2.5%) 0% - 2.5% (1.5%) 0% - 2.5% (1%) Weighted average cost of capital 11% (11%) 12.5% (12.5%) 13% - 17% (15%) SOB licenses Multiperiod excess earnings EBITDA multiple 12x (12x) 9x - 10x (10x) 8x (8x) Revenue/EBITDA growth rate 0% - 2.5% (2.5%) 0% - 2.5% (1.5%) 0% - 2.5% (1%) Weighted average cost of capital 11% (11%) 12.5% (12.5%) 13% - 17% (15%) Contributory asset charges rate 10% - 21.5% (15%) 0.5% - 7.4% (2.3%) 1.4% - 8.0% (4%) Tradename Relief-from-royalty method Revenue growth rate 0% - 2.5% (2.5%) 0% - 2.5% (1.5%) 0% - 2.5% (2.5%) Terminal multiple 12x (12x) 9x - 10x (9x) 8x (8x) Royalty rate 3% - 6% (4.7%) 3.5% - 4.5% (4%) None Weighted average cost of capital 11% (11%) 12.5% (12.5%) 15% (15%) Operating lease right-of-use assets Discounted cash flow EBITDA growth rate 1.5% - 2.5% (2.3%) 0% - 2.5% (1.5%) 0% - 2.5% (1%) Weighted average cost of capital 11% (11%) 12.5% (12.5%) 13% - 17% (15%) Business combinations Various* Growth rate 0% - 11.2% (5.5%) 2.5% - 10% (4.8%) None Weighted average cost of capital 16.5% - 18.0% (17.8%) 15% - 19.5% (18.1%) None Internal rate of return 16.5% - 30.0% (22.4%) 15% - 21.5% (19.4%) None Contributory asset charges rate 15.6% - 21.5% (16.3%) 8.5% - 10.2% (9.3%) None * Includes all of the valuation techniques for each of the fair valued assets above as of each acquisition date. Reclassification We made certain reclassification adjustments to segment disclosures related to prepaid insurance and goodwill. These assets were acquired by the registrant and presented in Corporate segment but mostly benefit subsidiaries belonging to other reportable segments. Prior year disclosures were also made to conform to current year presentation. There is no impact in consolidated total assets, results of operations, and cash flows in all periods presented. See Note 16 . Impact of Recently Issued Accounting Standards In October 2021, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers . This ASU amends Accounting Standards Codification ("ASC") Topic 805 to require acquiring entities to apply ASC 606 to recognize and measure contract assets and contract liabilities in business combinations. The ASU is effective for public entities for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. We are still evaluating the impact of this ASU but we do not expect it to have a material impact on our consolidated financial statements. In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions . The amendments in this ASU clarify that an entity should measure the fair value of an equity security subject to contractual sale restriction the same way it measures an identical equity security that is not subject to such a restriction. The FASB said the contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, should not affect its fair value. The ASU is effective for public entities for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. Early adoption is permitted. We have not yet evaluated the impact of this ASU on our consolidated financial statements. In March 2023, the FASB issued ASU 2023-01, Leases (Topic 842): Common Control Arrangements, which amends certain provisions of ASC 842 that apply to arrangements between related parties under common control. The ASU requires all companies to amortize leasehold improvements associated with common control leases over the asset's useful life to the common control group regardless of the lease term. It also allows private and certain not-for-profit entities to use the written terms and conditions of an agreement to account for common control leases without further assessing the legal enforceability of those terms. The guidance is effective for all entities in fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted for both interim and annual financial statements that have not yet been made available for issuance. We are still evaluating the impact of this ASU on our consolidated financial statements. In August 2023, the FASB issued ASU 2023-05, Business Combinations—Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement , which addresses the accounting for contributions made to a joint venture, upon formation, in a joint venture's separate financial statements. The objectives of the ASU are to (1)) provide decision-useful information to investors and other allocators of capital in a joint venture's financial statements and (2) reduce diversity in practice. The FASB decided to require a joint venture to apply a new basis of accounting upon formation that will recognize and initially measure its assets and liabilities at fair value (with exceptions to fair value measurement that are consistent with the business combinations guidance). The amendments of this ASU are effective prospectively for all joint venture formations with a formation date on or after January 1, 2025. Additionally, a joint venture that was formed before January 1, 2025 may elect to apply the amendments retrospectively if it has sufficient information. early adoptions is permitted in any interim or annual period in which financial statements have not yet been issued (or made available for issuance), either prospectively or retrospectively. We are still evaluating the impact of this ASU on our consolidated financial statements. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which aims to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. In addition, the amendments in the ASU enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements. The purpose of the amendments is to enable investors to better understand an entity's overall performance and assess potential future cash flows. The ASU applies to all public entities that are required to report segment information in accordance with ASC 280, and is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. We are evaluating the impact of this ASU on our consolidated financial statements. |
Revenues
Revenues | 12 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues Revenues, as disaggregated by revenue type, timing of recognition, and reportable segment (see also Note 16 ), are shown below (in thousands). Fiscal 2023 Nightclubs Bombshells Other Total Sales of alcoholic beverages $ 96,325 $ 30,937 $ — $ 127,262 Sales of food and merchandise 19,995 23,911 — 43,906 Service revenues 103,217 360 — 103,577 Other revenues 17,211 515 1,319 19,045 $ 236,748 $ 55,723 $ 1,319 $ 293,790 Recognized at a point in time $ 234,981 $ 55,677 $ 1,274 $ 291,932 Recognized over time 1,767 46 45 1,858 $ 236,748 $ 55,723 $ 1,319 $ 293,790 Fiscal 2022 Nightclubs Bombshells Other Total Sales of alcoholic beverages $ 80,001 $ 33,315 $ — $ 113,316 Sales of food and merchandise 18,289 26,005 — 44,294 Service revenues 93,481 407 — 93,888 Other revenues 14,480 198 1,444 16,122 $ 206,251 $ 59,925 $ 1,444 $ 267,620 Recognized at a point in time $ 204,644 $ 59,918 $ 1,443 $ 266,005 Recognized over time 1,607 7 1 1,615 $ 206,251 $ 59,925 $ 1,444 $ 267,620 Fiscal 2021 Nightclubs Bombshells Other Total Sales of alcoholic beverages $ 54,305 $ 32,380 $ — $ 86,685 Sales of food and merchandise 17,221 23,890 — 41,111 Service revenues 55,146 315 — 55,461 Other revenues 10,676 36 1,289 12,001 $ 137,348 $ 56,621 $ 1,289 $ 195,258 Recognized at a point in time $ 135,799 $ 56,617 $ 1,284 $ 193,700 Recognized over time 1,549 4 5 1,558 $ 137,348 $ 56,621 $ 1,289 $ 195,258 The Company does not have contract assets with customers. The Company’s unconditional right to consideration for goods and services transferred to the customer is included in accounts receivable, net in our consolidated balance sheet. A reconciliation of contract liabilities with customers, included in accrued liabilities in our consolidated balance sheets, is presented below (in thousands): Balance at September 30, 2021 Consideration Received Recognized in Revenue Balance at September 30, 2022 Consideration Received (Refunded) Recognized in Revenue Balance at September 30, 2023 Ad revenue $ 84 $ 611 $ (613) $ 82 $ 451 $ (484) $ 49 Expo revenue 151 426 (569) 8 574 (581) 1 Other (including franchise fees, see below) 119 33 (8) 144 (51) (47) 46 $ 354 $ 1,070 $ (1,190) $ 234 $ 974 $ (1,112) $ 96 Contract liabilities with customers are included in accrued liabilities as unearned revenues in our consolidated balance sheets (see also Note 4 ), while the revenues associated with these contract liabilities are included in other revenues in our consolidated statements of income. On December 22, 2020, the Company signed a franchise development agreement with a group of private investors to open three Bombshells locations in San Antonio, Texas over a period of five years, and the right of first refusal for three more locations in Corpus Christi, New Braunfels, and San Marcos, all in Texas. Upon execution of the agreement, the Company collected $75,000 in development fees representing 100% of the initial franchise fee of the first restaurant and 50% of the initial franchise fee of the second restaurant. The first Bombshells franchised location opened in June 2022. On May 2, 2022, the Company signed a franchise development agreement with a private investor to open three Bombshells locations in the state of Alabama over a period of five years. Upon execution of the agreement, the Company received $50,000 in development fees representing 100% of the initial franchise fee of the first restaurant. In February 2023, the Company purchased the franchised Bombshells unit in San Antonio, Texas. |
Selected Account Information
Selected Account Information | 12 Months Ended |
Sep. 30, 2023 | |
Selected Account Information | |
Selected Account Information | Selected Account Information The components of accounts receivable, net are as follows (in thousands): September 30, 2023 2022 Credit card receivables $ 4,141 $ 2,687 Income tax refundable 2,989 2,979 ATM-in-transit 1,675 819 Other (net of allowance for doubtful accounts of $62 and $30, respectively) 1,041 2,025 Total accounts receivable, net $ 9,846 $ 8,510 Notes receivable consist primarily of secured promissory notes executed between the Company and various buyers of our businesses and assets with interest rates ranging from 6% to 9% per annum and having original terms ranging from 1 to 20 years. The components of prepaid expenses and other current assets are as follows (in thousands): September 30, 2023 2022 Prepaid insurance $ 375 $ 191 Prepaid legal 184 61 Prepaid taxes and licenses 486 391 Prepaid rent 346 296 Other 552 560 Total prepaid expenses and other current assets $ 1,943 $ 1,499 The components of accrued liabilities are as follows (in thousands): September 30, 2023 2022 Payroll and related costs $ 4,412 $ 3,186 Property taxes 3,086 2,618 Sales and liquor taxes 2,468 2,227 Insurance 9 30 Interest 654 499 Patron tax 914 467 Lawsuit settlement 2,448 246 Unearned revenues 96 234 Other 1,964 1,821 Total accrued liabilities $ 16,051 $ 11,328 The components of selling, general and administrative expenses are as follows (in thousands): 2023 2022 2021 Taxes and permits $ 11,966 $ 9,468 $ 8,701 Advertising and marketing 11,928 9,860 6,676 Supplies and services 10,724 8,614 6,190 Insurance 10,268 10,152 5,676 Lease 7,206 6,706 3,942 Legal 3,742 1,995 3,997 Utilities 5,760 4,585 3,366 Charge cards fees 7,090 6,292 3,376 Security 5,618 4,404 3,892 Accounting and professional fees 4,286 3,909 2,031 Repairs and maintenance 4,924 3,754 2,767 Stock-based compensation 2,588 2,353 — Other 6,924 6,755 3,994 Total selling, general and administrative expenses $ 93,024 $ 78,847 $ 54,608 The components of other charges, net are as follows (in thousands): 2023 2022 2021 Impairment of assets $ 12,629 $ 1,888 $ 13,612 Settlement of lawsuits 3,759 1,417 1,349 Gain on sale of businesses and assets (682) (2,375) (522) Gain on insurance (77) (463) (1,253) Total other charges, net $ 15,629 $ 467 $ 13,186 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consisted of the following (in thousands): September 30, 2023 2022 Land $ 95,018 $ 78,116 Buildings and improvements 204,947 159,037 Equipment 49,632 45,648 Furniture 13,959 12,391 Total property and equipment 363,556 295,192 Less accumulated depreciation (80,851) (70,577) Property and equipment, net $ 282,705 $ 224,615 Included in buildings and leasehold improvements above are construction-in-progress amounting to $7.7 million and $1.5 million as of September 30, 2023 and 2022, respectively, which are mostly related to Bombshells development projects. Depreciation expense was approximately $11.6 million, $10.3 million, and $8.0 million for fiscal years 2023, 2022, and 2021, respectively. Impairment loss for property and equipment, including those later reclassified to assets held for sale, was $58,000, $1.0 million, and $2.0 million for fiscal 2023, 2022, and 2021, respectively. |
Assets Held for Sale
Assets Held for Sale | 12 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Assets Held for Sale | Assets Held for Sale As of September 30, 2022, the Company had one property classified as held for sale with an aggregate net realizable value less cost to sell of $1.0 million, and with no associated liabilities. On December 28, 2022, the Company sold the property classified as held-for-sale with a carrying value of $1.049 million for $1.7 million in cash. The Company used $1.2 million of the proceeds to pay off a loan related to the property. Gains or losses on the sale of properties held for sale are included in other charges, net within the consolidated statements of income (see Note 4 ). |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill and other intangible assets consisted of the following (in thousands): September 30, 2023 2022 Indefinite useful lives: Goodwill $ 70,772 $ 67,767 Licenses 135,735 103,972 Tradename and domain name 19,811 13,142 226,318 184,881 Amortization Period Definite useful lives: Discounted leases Lease term 811 78 Non-compete agreements 5 years 3 55 Software 5 years 55 723 Licenses Lease term 22,597 25,962 Leases acquired in-place Lease term 133 117 23,599 26,935 Total goodwill and other intangible assets $ 249,917 $ 211,816 Substantially all of our goodwill and other intangible assets belong to our Nightclubs segment. 2023 2022 Definite- Lived Intangibles Indefinite- Lived Intangibles Goodwill Definite- Lived Intangibles Indefinite- Lived Intangibles Goodwill Beginning balance $ 26,935 $ 117,114 $ 67,767 $ 400 $ 67,424 $ 39,379 Acquisitions 2,005 43,948 7,244 28,653 50,453 28,954 Impairment (1,813) (5,516) (4,239) — (293) (566) Dispositions — — — — (470) — Amortization (3,528) — — (2,118) — — Ending balance $ 23,599 $ 155,546 $ 70,772 $ 26,935 $ 117,114 $ 67,767 Definite-lived intangible assets consist of the following (in thousands): September 30, 2023 2022 Licenses $ 27,725 $ 27,725 Software 2,332 1,671 Leases acquired in-place 826 261 Discounted leases 1,076 297 Non-compete agreements 1,100 1,100 Distribution agreements 317 317 Total definite-lived intangibles 33,376 31,371 Less accumulated amortization and impairment (9,777) (4,436) Definite-lived intangibles, net $ 23,599 $ 26,935 As of September 30, 2023 and 2022, the accumulated impairment balance of indefinite-lived intangibles was $16.9 million and $11.4 million, respectively, while the accumulated impairment balance of goodwill was $25.4 million and $21.2 million, respectively. As of September 30, 2023 and 2022, the gross amount of goodwill amounted to $96.2 million and $88.9 million, respectively. Future amortization expense related to definite-lived intangible assets that are subject to amortization at September 30, 2023 is: 2024 - $2.5 million; 2025 - $2.4 million; 2026 - $2.4 million; 2027 - $2.3 million; 2028 - $1.5 million; and thereafter - $12.5 million. |
Debt
Debt | 12 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt consisted of the following (in thousands): September 30, 2023 2022 Notes payable at 5.5%, fully paid in January 2023 (d)(1) $ — $ 678 Note payable at 8%, matures October 2027, as amended (b)(2)(6) 3,025 3,025 Note payable at 8%, matures May 2029 (b)(2) 9,180 10,412 Note payable at 5.99%, matures September 2033, as amended (c) (3) 5,351 5,731 Note payable at 5.49%, matures March 2039, as amended (c)(4) 1,937 2,008 Note payable at 5.25%, matures September 2031 *(a)(5) 87,937 92,062 Notes payable at 12%, matures October 2024 (d)(7) 9,500 9,500 Notes payable at 12%, matures October 2024 (d)(7) 3,331 3,561 Notes payable at 12%, matures October 2024 (d)(7) 3,331 3,561 Note payable at 5.25% matures October 2031 (a)(8) 1,136 1,172 Note payable at 6% matures October 2031 (b)(8) 9,459 10,321 Note payable at 6% matures October 2041 (b)(8) 7,611 7,828 Note payable at 6% matures October 2041 (b)(8) 950 978 Note payable at 4% matures November 2028 (b)(9) 764 895 Note payable at 5.25% matures January 2032 *(a)(10) 16,622 18,391 Note payable at 4.25% matures February 2043 *(a)(11) 2,583 2,625 Note payable at 10% matures May 2025 (b)(12) 5,501 5,881 Note payable at 10% matures May 2032 (b)(12) 5,000 5,000 Note payable at 5% matures November 2023 *(a)(13) 2,195 2,195 Note payable at 6% matures July 2029 (b)(14) 690 785 Note payable at 6% matures July 2032 (b)(15) 9,119 9,880 Note payable at 6% matures August 2032 (a)(15) 4,592 4,970 Note payable at 5.25% matures February 2024 *(a)(16) 1,575 1,575 Note payable at 4.79% matures October 2042 (c)(17) 2,731 2,806 Note payable initially at 6% matures April 2024 *(a)(18) 2,259 — Note payable at 6% matures October 2037 (a)(19) 4,708 — Note payable initially at 6% matures May 2024 *(a)(20) 1,500 — Note payable at 6.67% matures January 2028 *(a)(21) 3,302 — Notes payable at 7% matures February 2025 (b)(22) 1,801 — Notes payable at 7% matures March 2033 (a)(b)(24) 24,603 — Note payable initially at 8.75% matures March 2025 (d)(23) 7,500 — Note payable initially at 7.12% matures June 2028 *(a)(25) 2,874 — Total debt 242,667 205,840 Less unamortized debt discount and issuance costs (2,916) (3,377) Less current portion (22,843) (11,896) Total long-term portion of debt, net $ 216,908 $ 190,567 * These commercial bank debts are guaranteed by the Company’s CEO. See Note 1 7 . Following is a summary of long-term debt at September 30 (in thousands): 2023 2022 (a) Secured by real estate $ 136,107 $ 122,990 (b) Secured by stock in subsidiary 72,879 55,005 (c) Secured by other assets 10,019 10,545 (d) Unsecured 23,662 17,300 $ 242,667 $ 205,840 (1) In connection with the acquisition of Silver City in January 2012, the Company executed notes to the seller in the amount of $1.5 million. The notes are payable over eleven years at $12,256 per month including interest and have an adjustable interest rate of 5.5%. The rate adjusts to prime plus 2.5% in the 61st month, not to exceed 9%. In the same transaction, the Company also acquired the related real estate and executed notes to the seller for $6.5 million, which have been paid off in December 2017. The notes were also payable over eleven years at $53,110 per month including interest and have the same adjustable interest rate of 5.5%. These notes were fully paid in January 2023. (2) On May 8, 2017, in relation to the Scarlett’s acquisition, the Company executed two promissory notes with the sellers: (i) a 5% short-term note for $5.0 million payable in lump sum after six months from closing date and (ii) a 12-year amortizing 8% note for $15.6 million. The 12-year note is payable $168,343 per month, including interest. The Company has amended the $5.0 million short-term note payable several times, which has a remaining balance of $3.0 million, extending the maturity date and increasing the interest rate. Presently, the maturity date is October 1, 2027 and the interest rate is 8% for its remaining term. (3) On December 7, 2017, the Company borrowed $7.1 million from a lender to purchase an aircraft at 5.99% interest. The transaction was partly funded by trading in an aircraft that the Company owned with a carrying value of $3.4 million, with an assumption of the old aircraft’s note payable liability of $2.0 million. The aircraft note is payable in 15 years with monthly payments of $59,869, which includes interest. In March 2020, this loan was extended to September 2033. (4) On December 11, 2018, the Company purchased an aircraft for $2.8 million with a $554,000 down payment and financed for the remaining $2.2 million with a 5.49% promissory note payable in 20 years with monthly payments of $15,118, including interest. Certain principal and interest payments during the quarter ended June 30, 2020 were deferred until maturity date. (5) On September 30, 2021, we entered into a $99.1 million term loan refinancing $85.7 million of existing bank and seller-financed real estate debt and to provide $12.3 million in cash that will be used to pay off existing high-interest unsecured debt (“September 2021 Refinancing Note”), enabling those creditors to provide financing for the acquisition of 11 clubs and related real estate (see Note 14 ). The $99.1 million note has a term of 10 years with an initial interest rate of 5.25% per annum for the first five years, then adjusted to a rate equal to the then weekly average yield of U.S. Treasury Securities plus 350 basis points, with a floor rate of 5.25%. The note is payable in monthly payments of principal and interest of $668,051, based on a 20-year amortization period, with the balance paid at maturity. In connection with the transaction, we wrote off to interest expense approximately $103,000 of unamortized debt issuance costs related to the paid-off debts. We also paid approximately $1.0 million in loan costs, approximately $567,000 of which is capitalized and will be amortized together with the remaining unamortized debt issuance costs of some of the existing refinanced debts for the term of the new note using the effective interest method. There are certain financial covenants with which the Company is to be in compliance related to this loan. (6) On October 12, 2021, the Company amended the $5.0 million short-term note payable related to the Scarlett’s acquisition in May 2017, which had a balance of $3.0 million as of the amendment date, extending the maturity date to October 1, 2027. The amendment did not have an impact in the Company’s results of operations and cash flows. (7) On October 12, 2021, we closed on a debt financing transaction with 28 investors for unsecured promissory notes with a total principal amount of $17.0 million, all of which bear interest at a rate of 12% per annum. Of this amount, $9.5 million are promissory notes, payable interest only monthly (or quarterly) in arrears, with a final lump sum payment of principal and accrued and unpaid interest due on October 1, 2024. The remaining amount of the financing is $7.5 million in promissory notes, payable in monthly payments of principal and interest based on a 10-year amortization period, with the balance of the entire principal amount together with all accrued and unpaid interest due and payable in full on October 12, 2024. Included in the $17.0 million borrowing are two notes for $500,000 and $150,000 borrowed from related parties (see Note 1 7 ) and two notes for $500,000 and $300,000 borrowed from two non-officer employees in which the terms of the notes are the same as the rest of the lender group. See the October 25, 2023 extension of the term of the promissory notes, below. (8) On October 18, 2021, in relation to an acquisition (see Note 1 4 ), the Company executed four seller-financed promissory notes. The first promissory note was a 10-year $11.0 million 6% note payable in 120 equal monthly payments of $122,123 in principal and interest. The second promissory note was a 20-year $8.0 million 6% note payable in 240 equal monthly payments of $57,314 in principal and interest. The third promissory note was a 10-year $1.2 million 5.25% note payable in monthly payments of $8,086 in principal and interest based on a 20-year amortization period, with the balance payable at maturity date. The fourth note was a 20-year $1.0 million 6% note payable in 240 equal monthly payments of $7,215 in principal and interest. (9) On November 8, 2021, in relation to an acquisition (see Note 1 4 ), the Company executed a $1.0 million 7-year promissory note with an interest rate of 4.0% per annum. The note is payable $13,669 per month, including principal and interest. (10) On January 25, 2022, the Company borrowed $18.7 million from a bank lender for working capital purposes by executing a 10-year promissory note with an initial interest rate of 5.25% per annum to be adjusted after five years to a rate equal to the weekly average yield on U.S. Treasury securities plus 3.98% with a floor of 5.25%. The note is payable in monthly payments of $126,265 in principal and interest to be adjusted after five years. The promissory note is secured by eleven real estate properties and is personally guaranteed by the Company CEO, Eric Langan (see Note 1 7 ). After the 10-year term, the remaining balance of principal and interest are payable at maturity date. There are certain financial covenants with which the Company is to be in compliance related to this loan. (11) On March 1, 2022, the Company borrowed $2.6 million from a bank lender in relation to a purchase of real estate (see Note 1 4 ). The 21-year promissory note has an initial interest rate of 4.25% per annum, repriced after five years and then again annually to prime plus 1% with a floor rate of 4.25%. The note is payable interest only during the first 12 months; then the next 48 months with $16,338 equal monthly payments of principal and interest; then the next 191 months at an equal monthly payment based on a 20-year amortization; with the balance of principal and interest payable at the 252nd month. (12) On May 2, 2022, in relation to a club acquisition (see Note 1 4 ), the Company executed two seller-financed notes totaling $11.0 million, comprised of (1) $6.0 million under a 10% three-year promissory note payable in 35 equal monthly payments of $79,290 in principal and interest based on a ten-year amortization schedule, with a balloon payment for the remaining principal plus accrued interest due at maturity and (2) $5.0 million under a 10% ten-year interest-only promissory note payable in 119 equal monthly payments of $41,667 in interest, with a balloon payment of the total $5.0 million in principal plus accrued interest due at maturity. (13) On May 23, 2022, the Company borrowed $2.2 million from a bank lender in relation to a purchase of real estate (see Note 14 ). The 18-month promissory note has an initial interest rate of 4.5% per annum to be adjusted daily to a rate equal to the Wall Street Journal prime rate plus 1% with a floor of 4.5%. The promissory note is payable in 17 monthly interest-only installments with the full principal and accrued interest payable at maturity. The Company paid loan costs amounting to $25,000 for this note. (14) On July 21, 2022, the Company executed an $800,000 6% seller-financed promissory note in relation to an acquisition of a club in Odessa, Texas (see Note 1 4 ). The promissory note matures in seven years and is payable in 84 equal monthly installments of $11,687 of principal and interest. (15) On July 27, 2022, in relation to an acquisition of a club in Hallandale Beach, Florida (see Note 1 4 ), the Company executed two seller-financed promissory notes: (1) $10.0 million 6% ten-year promissory note payable in 120 equal monthly payments of $111,020 in principal and interest, and (2) $5.0 million 6% ten-year promissory note payable in 120 equal monthly payments of $55,510 in principal and interest. (16) On August 18, 2022, in relation to a purchase of real estate for a future Bombshells location amounting to $2.1 million (see Note 1 4 ), the Company borrowed $1.6 million from a bank lender. The 5.25% mortgage note is payable interest-only for eleven months and on its August 18, 2023 maturity date payable with the entire principal balance plus accrued interest. The maturity date of this mortgage note was extended to February 18, 2024. (17) On September 23, 2022, in connection with the purchase of an aircraft worth $3.5 million (see Note 14 ), the Company entered into a financing transaction for $2.8 million. The financing agreement bears an interest of 4.79% per annum and payable in 240 monthly installments of principal and interest amounting to $18,298. (18) On October 10, 2022, in relation to a real estate purchase (see Note 14 ), the Company borrowed $2.3 million from a bank lender. The 18-month promissory note bears an initial interest rate of 6% per annum adjusted daily to a rate equal to the Wall Street Journal prime rate plus 0.5% with a floor of 6%. The promissory note is payable in 17 monthly interest-only installments with the full principal and accrued interest payable at maturity. The Company paid approximately $26,000 in debt issuance cost at closing. This promissory note is secured by the purchased real estate property. (19) On October 26, 2022, in relation to a club acquisition (see Note 1 4 ), the Company executed a promissory note for $5.0 million with the seller. The 6% 15-year promissory note is payable in 180 equal monthly payments of $42,193 in principal and interest. This promissory note is secured by the purchased real estate property. (20) On November 18, 2022, in relation to a real estate purchase on September 12, 2022 (see Note 1 4 ), the Company borrowed $1.5 million from a bank lender. The 18-month promissory note bears an initial interest rate of 6% per annum to be adjusted daily to a rate equal to the Wall Street Journal prime rate plus 0.5% with a floor of 6%. The promissory note is payable in 17 monthly interest-only installments with the full principal and accrued interest payable at maturity. This promissory note is secured by the purchased real estate property. There are certain financial covenants with which the Company is to be in compliance related to this loan. (21) On December 20, 2022, the Company executed a promissory note for $3.3 million with a bank lender in relation to a purchase of a food hall property (see Note 1 4 ). The 6.67% five-year promissory note is payable in 59 equal monthly installments of $22,805 in principal and interest, with the balance of principal and accrued interest payable at maturity. There are certain financial covenants with which the Company is to be in compliance related to this loan. (22) On February 7, 2023, in relation to the acquisition of a franchised Bombshells location in San Antonio, Texas (see Note 1 4 ), the Company entered into six separate seller-financing promissory notes totaling $2.0 million. Each of the promissory notes has an interest rate of 7% per annum, has a term of 24 months, and is payable in monthly installments totaling $39,602 of principal and interest for the first 23 months based on a 60-month amortization schedule with the remaining unpaid principal and interest paid at maturity. (23) On March 9, 2023, the Company closed a $10.0 million line-of-credit facility with a lender bank evidenced by a revolving promissory note, with an initial draw of $10.0 million at closing. The facility has an initial term of 24 months with a variable interest rate equal to the Wall Street Journal prime rate plus 1%. On such date that the principal balance is repaid to an amount less than $5.0 million, the facility's revolver feature is activated where the Company may draw from the remaining availability up to a maximum of $5.0 million. The Company shall also pay a non-usage fee of 0.5% based on the amount by which the average outstanding balance for the prior twelve months was less than $3.0 million or the amount by which the total aggregate advances during the prior twelve months totaled less than $3.0 million. The Company paid $115,000 in debt issuance costs, which is recorded as deferred charges to be amortized on a straight-line basis over 24 months. There are certain financial covenants with which the Company is to be in compliance related to this loan, including a compensating balance requirement of $3.0 million and a minimum tangible net worth requirement of $20.0 million. The compensating balance requirement does not contractually or legally restrict the withdrawal or use of cash. (24) On March 16, 2023, in relation to the acquisition of five clubs with associated real estate, automated teller machines, and intellectual property (see Note 1 4 ), the Company executed nine secured promissory notes with a total principal amount of $25.5 million. Each of the nine promissory notes have an interest rate of 7% per annum with a term of 10 years, payable in arrears in 120 equal monthly payments of principal and interest amounting to $296,077 per month in the aggregate. The holder of the $5.0 million promissory note related to the real estate properties may call due from the Company a principal payment of $1.0 million once in every calendar year. (25) On June 18, 2023, in relation to a purchase of a retail parcel in a condominium property (see Note 1 4 ), the Company executed a promissory note for $2.9 million with a bank lender. The 7.12% five-year promissory note is payable in monthly installments of $20,654 in principal and interest, with the balance of principal and accrued interest payable at maturity. Future maturities of debt obligations as of September 30, 2023 consist of the following (in thousands): Regular Amortization Balloon Payments Total Payments 2024 $ 15,837 $ 7,529 $ 23,366 2025 12,149 26,772 38,921 2026 12,498 — 12,498 2027 13,287 — 13,287 2028 14,050 8,731 22,781 Thereafter 61,273 70,541 131,814 $ 129,094 $ 113,573 $ 242,667 |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense consisted of the following (in thousands): 2023 2022 2021 Current Federal $ 6,506 $ 8,335 $ 4,598 State and local 2,121 2,656 644 Total current income tax expense 8,627 10,991 5,242 Deferred Federal (1,294) 2,080 (161) State and local (487) 1,000 (1,092) Total deferred income tax expense (benefit) (1,781) 3,080 (1,253) Total income tax expense $ 6,846 $ 14,071 $ 3,989 The Company and its subsidiaries do not operate in tax jurisdictions outside of the United States. Income tax expense differs from the “expected” income tax expense computed by applying the U.S. federal statutory rate to earnings before income taxes for the years ended September 30 as a result of the following (in thousands): 2023 2022 2021 Federal statutory income tax expense $ 7,549 $ 12,628 $ 7,169 State income taxes, net of federal benefit 1,620 1,801 716 Permanent differences 605 96 (434) Change in tax rates (255) 896 (804) Change in valuation allowance (176) 343 (632) Tax credits (2,131) (1,796) (1,207) Other (366) 103 (819) Total income tax expense $ 6,846 $ 14,071 $ 3,989 Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The significant components of the Company’s deferred tax assets and liabilities were as follows (in thousands): September 30, 2023 2022 Deferred tax assets: Net operating loss carryforwards $ 827 $ 1,022 Capital loss carryforwards 651 234 Right-of-use assets 946 626 Accrued expenses 748 240 Stock-based compensation 1,185 569 Other 123 — Valuation allowance (808) (984) 3,672 1,707 Deferred tax liabilities: Intangibles (21,468) (21,927) Property and equipment (11,085) (10,119) Prepaid expenses (262) (205) Other — (18) (32,815) (32,269) $ (29,143) $ (30,562) The Company may recognize the tax benefit from uncertain tax positions only if it is at least more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon settlement with the taxing authorities. We recognize accrued interest related to unrecognized tax benefits as a component of accrued liabilities. We recognize penalties related to unrecognized tax benefits as a component of selling, general and administrative expenses, and recognize interest accrued related to unrecognized tax benefits in interest expense. The full balance of uncertain tax positions, if recognized, would affect the Company’s annual effective tax rate, net of any federal tax benefits. As of September 30, 2023 and 2022, the Company does not have any uncertain tax position. The Company does not expect any changes that will significantly impact its uncertain tax positions within the next twelve months. The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various states. The Company ordinarily goes through various federal and state reviews and examinations for various tax matters. Fiscal year ended September 30, 2020 and subsequent years remain open to federal tax examination. On March 27, 2020, former President Trump signed the CARES Act into law. As a result of this, additional avenues of relief were available to workers and families through enhanced unemployment insurance provisions and to small businesses through programs administered by the Small Business Administration. The CARES Act included, among other items, provisions relating to payroll tax credits and deferrals, net operating loss carryback periods, alternative minimum tax credits and technical corrections to tax depreciation methods for qualified improvement property. The CARES Act also established a Paycheck Protection Program, whereby certain small businesses are eligible for a loan to fund payroll expenses, rent, and related costs. The loan may be forgiven if the funds are used for payroll and other qualified expenses. The Company submitted its application for a PPP loan and on May 8, 2020 received approval and funding for its restaurants, shared service entity and lounge. Ten of our restaurant subsidiaries received amounts ranging from $271,000 to $579,000 for an aggregate amount of $4.2 million; our shared-services subsidiary received $1.1 million; and one of our lounges received $124,000. None of our adult nightclub and other non-core business subsidiaries received funding under the PPP. The Company believes it used the entire loan amount for qualifying expenses. Under the terms of the PPP, certain amounts of the loan may be forgiven if they are used for qualifying expenses as described in the CARES Act. The Company utilized all of the PPP funds and submitted its forgiveness applications. During fiscal 2022, we received 11 Notices of PPP Forgiveness Payment from the Small Business Administration out of the 12 of our PPP loans granted. All of the notices received forgave 100% of each of the 11 PPP loans totaling the amount of $5.3 million in principal and interest and were included in non-operating gains (losses), net in our consolidated statement of income for the fiscal year ended September 30, 2022. In November 2021, we received a partial forgiveness of the remaining $124,000 PPP loan for $85,000 in principal and interest. The remaining unforgiven portion of approximately $41,000 in principal was fully paid as debt plus accrued interest in fiscal 2022. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Matters Texas Patron Tax A declaratory judgment action was brought by five operating subsidiaries of the Company to challenge a Texas Comptroller administrative rule related to the $5 per customer Patron Tax Fee assessed against Sexually Oriented Businesses. An administrative rule attempted to expand the fee to cover venues featuring dancers using latex cover as well as traditional nude entertainment. The administrative rule was challenged on both constitutional and statutory grounds. On November 19, 2018, the Court issued an order that a key aspect of the administrative rule is invalid based on it exceeding the scope of the Comptroller’s authority. On March 6, 2020, the U.S. District Court for the Western District of Texas, Austin Division, ruled that the Texas Patron Tax is unconstitutional as it has been applied and enforced by the Comptroller. The State of Texas appealed to the Fifth Circuit Court of Appeals, who affirmed that the Texas Patron Fee is unconstitutional as applied. The State of Texas next sought review from the Supreme Court, but the high court declined to take the case and in doing so exhausted the State's rights to appeal the judgment. The lawsuit was sent back to the trial court for post-trial proceedings, which resulted in the award of attorneys' fees to the operating subsidiaries. Pursuant to the rulings, the Texas Patron Fee is unconstitutional as applied to clubs featuring dancers using latex cover. Indemnity Insurance Corporation As previously reported, the Company and its subsidiaries were insured under a liability policy issued by Indemnity Insurance Corporation, RRG (“IIC”) through October 25, 2013. The Company and its subsidiaries changed insurance companies on that date. On November 7, 2013, the Court of Chancery of the State of Delaware entered a Rehabilitation and Injunction Order (“Rehabilitation Order”), which declared IIC impaired, insolvent and in an unsafe condition and placed IIC under the supervision of the Insurance Commissioner of the State of Delaware (“Commissioner”) in her capacity as receiver (“Receiver”). The Rehabilitation Order empowered the Commissioner to rehabilitate IIC through a variety of means, including gathering assets and marshaling those assets as necessary. Further, the order stayed or abated pending lawsuits involving IIC as the insurer until May 6, 2014. On April 10, 2014, the Court of Chancery of the State of Delaware entered a Liquidation and Injunction Order With Bar Date (“Liquidation Order”), which ordered the liquidation of IIC and terminated all insurance policies or contracts of insurance issued by IIC. The Liquidation Order further ordered that all claims against IIC must have been filed with the Receiver before the close of business on January 16, 2015, and that all pending lawsuits involving IIC as the insurer were further stayed or abated until October 7, 2014. As a result, the Company and its subsidiaries no longer have insurance coverage under the liability policy with IIC. The Company has retained counsel to defend against and evaluate these claims and lawsuits. We are funding 100% of the costs of litigation and will seek reimbursement from the bankruptcy receiver. The Company filed the appropriate claims against IIC with the Receiver before the January 16, 2015 deadline and has provided updates as requested; however, there are no assurances of any recovery from these claims. It is unknown at this time what effect this uncertainty will have on the Company. As previously stated, since October 25, 2013, the Company has obtained general liability coverage from other insurers, which have covered and/or will cover any claims arising from actions after that date. As of September 30, 2023, we had 1 remaining unresolved claim out of the original 71 claims. Shareholder Derivative Action On January 21, 2022, Shiva Stein and Kevin McCarty filed a shareholder derivative action in the Southern District of Texas, Houston Division against former director Nourdean Anakar, Yura Barabash, former director Steven L. Jenkins, Eric Langan, Luke Lirot, former CFO Phillip K. Marshall, Elaine J. Martin, Allan Priaulx, and Travis Reese as defendants, as well as against RCI Hospitality Holdings, Inc. as nominal defendant. The action, styled Stein v. Anakar, et al., No. 4:22-mc-00149 (S.D. Tex.), alleges claims for breach of fiduciary duty based on alleged dissemination of inaccurate information and failure to maintain internal controls. These allegations are substantively similar to claims asserted in a prior securities class action that was settled in August of 2022 and a prior derivative action that was dismissed in June of 2021. On July 24, 2023, the parties reached an agreement in principle to resolve the action. On October 10, 2023, the parties submitted an agreement to settle the action to the Court for the Court's preliminary approval. The Company believes that payments under the settlement agreement will be covered by insurance. Other On June 23, 2014, Mark H. Dupray and Ashlee Dupray filed a lawsuit against Pedro Antonio Panameno and our subsidiary JAI Dining Services (Phoenix) Inc. (“JAI Phoenix”) in the Superior Court of Arizona for Maricopa County. The suit alleged that Mr. Panameno injured Mr. Dupray in a traffic accident after being served alcohol at an establishment operated by JAI Phoenix. The suit alleged that JAI Phoenix was liable under theories of common law dram shop negligence and dram shop negligence per se. After a jury trial proceeded to a verdict in favor of the plaintiffs against both defendants, in April 2017 the Court entered a judgment under which JAI Phoenix’s share of compensatory damages is approximately $1.4 million and its share of punitive damages is $4 million. In May 2017, JAI Phoenix filed a motion for judgment as a matter of law or, in the alternative, motion for new trial. The Court denied this motion in August 2017. In September 2017, JAI Phoenix filed a notice of appeal. In June 2018, the matter was heard by the Arizona Court of Appeals. On November 15, 2018 the Court of Appeals vacated the jury’s verdict and remanded the case to the trial court. It is anticipated that a new trial will occur at some point in the future. JAI Phoenix will continue to vigorously defend itself. As set forth in the risk factors as disclosed in this report, the adult entertainment industry standard is to classify adult entertainers as independent contractors, not employees. While we take steps to ensure that our adult entertainers are deemed independent contractors, from time to time, we are named in lawsuits related to the alleged misclassification of entertainers. Claims are brought under both federal and where applicable, state law. Based on the industry standard, the manner in which the independent contractor entertainers are treated at the clubs, and the entertainer license agreements governing the entertainer’s work at the clubs, the Company believes that these lawsuits are without merit. Lawsuits are handled by attorneys with an expertise in the relevant law and are defended vigorously. In March 2023, the New York State Department of Labor assessed a final judgment against one of our subsidiaries in a state unemployment tax matter for the years 2009-2022. The assessment of $2.8 million, which was recorded by the Company during the quarter ended March 31, 2023, was issued in final notice by the NY DOL after several appeals were denied by the Supreme Court of the State of New York, Appellate Division, Third Department. In September 2023, the NY DOL assessed another of our subsidiaries for approximately $280,000 on the same matter for the period January 2015 through June 2022. We recorded this latter assessment during the quarter ended September 30, 2023. General In the regular course of business affairs and operations, we are subject to possible loss contingencies arising from third-party litigation and federal, state, and local environmental, labor, health and safety laws and regulations. We assess the probability that we could incur liability in connection with certain of these lawsuits. Our assessments are made in accordance with generally accepted accounting principles, as codified in ASC 450-20, and is not an admission of any liability on the part of the Company or any of its subsidiaries. In certain cases that are in the early stages and in light of the uncertainties surrounding them, we do not currently possess sufficient information to determine a range of reasonably possible liability. In matters where there is insurance coverage, in the event we incur any liability, we believe it is unlikely we would incur losses in connection with these claims in excess of our insurance coverage. Settlement of lawsuits for the years ended September 30, 2023, 2022, and 2021 total $3.8 million, $1.4 million, and $1.3 million, respectively. As of September 30, 2023 and 2022, the Company has accrued $2.4 million and $246,000 in accrued liabilities, respectively, related to settlement of lawsuits. Leases See Note 18 for lease commitments. |
Stock-based Compensation
Stock-based Compensation | 12 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-based Compensation | Stock-based Compensation On February 7, 2022, our board of directors approved the 2022 Stock Option Plan (the “2022 Plan”). The board’s adoption of the 2022 Plan was approved by the shareholders during the annual stockholders' meeting on August 23, 2022. The 2022 Plan provides that the maximum aggregate number of shares of common stock underlying options that may be granted under the 2022 Plan is 300,000. The options granted under the 2022 Plan may be either incentive stock options or non-qualified options. The 2022 Plan is administered by the compensation committee of the board of directors. The compensation committee 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 2022 Plan. On February 9, 2022, the board of directors approved a grant of 50,000 stock options each to six members of management subject to the approval of the 2022 Plan. Stock-based compensation expense for fiscal 2023, 2022, and 2021, which is included in corporate segment selling, general and administrative expenses, amounted to $2.6 million, $2.4 million, and $0, respectively, with related tax benefit amounting to $616,000, $569,000, and $0, respectively. No stock-based compensation was recognized during fiscal 2021. As of September 30, 2023, we had unrecognized compensation cost amounting to $4.5 million related to stock-based compensation awards granted, which is expected to be recognized over a weighted average period of 2.4 years. The February 9, 2022 stock options vest over four years with the first 20% having vested on the approval of the 2022 Plan at the 2022 annual stockholders' meeting on August 23, 2022, and 20% vesting on February 9 of each year thereafter, provided however that the options will be subject to earlier vesting under certain events set forth in the Plan, including without limitation a change in control. All of the options will expire, if not vested, at the end of five years. The weighted average grant-date fair value of the stock options was $31.37. No stock options were exercised in fiscal 2023. The following table summarizes information about stock option activity under the 2022 Plan: Number of Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding at September 30, 2022 300,000 $ 100.00 Granted — Outstanding at September 30, 2023 300,000 $ 100.00 3.4 $ — Exercisable at September 30, 2023 60,000 $ 100.00 3.4 $ — |
Employee Retirement Plan
Employee Retirement Plan | 12 Months Ended |
Sep. 30, 2023 | |
Retirement Benefits [Abstract] | |
Employee Retirement Plan | Employee Retirement Plan The Company sponsors a Simple IRA plan (the “Plan”), which covers all of the Company’s corporate employees. The Plan allows corporate employees to contribute up to the maximum amount allowed by law, with the Company making a matching contribution of up to 3% of the employee’s salary. Expenses related to matching contributions to the Plan approximated $287,000, $258,000, and $209,000 for the years ended September 30, 2023, 2022, and 2021, respectively. |
Insurance Recoveries
Insurance Recoveries | 12 Months Ended |
Sep. 30, 2023 | |
Unusual or Infrequent Items, or Both [Abstract] | |
Insurance Recoveries | Insurance Recoveries One of our clubs in Washington Park, Illinois was temporarily closed due to a fire during the third quarter of 2019, and another club in Fort Worth, Texas sustained weather-related damage toward the end of fiscal 2019. Both of these casualties received insurance recoveries in subsequent fiscal years. During the fourth quarter of 2021, one club in Sulphur, Louisiana incurred damage from a hurricane. We wrote off the net carrying value of the assets destroyed in the said events and recorded corresponding recovery of losses or gains in as much as the insurers have paid us or where contingencies relating to the insurance claims have been resolved. In relation to these casualty events, we recorded the following in our consolidated financial statements (in thousands): Included in 2023 2022 2021 Consolidated balance sheets (period end) Insurance receivable Account receivable, net $ — $ — $ 186 Consolidated statements of income – gain Property Other charges, net $ (77) $ (463) $ (1,337) Consolidated statements of cash flows Proceeds from business interruption insurance claims Operating activity $ — $ — $ 106 Proceeds from property insurance claims Investing activity $ 86 $ 648 $ 1,152 The net property insurance gain/loss amount in fiscal 2023, 2022, and 2021 was net of assets written off and expenses amounting to $9,000, $0, and $88,000, respectively. |
Acquisitions and Dispositions
Acquisitions and Dispositions | 12 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and Dispositions | Acquisitions and Dispositions 2021 Acquisitions On December 28, 2020, the Company acquired the real estate and other business assets of a club in Centreville, Illinois for $500,000 in cash. On January 26, 2021, the Company acquired land for a future Bombshells location in Arlington, Texas for $2.9 million. The Company paid approximately $754,000 in cash including closing costs and financed $2.175 million with a bank lender for a 20-year promissory note with an initial interest rate of 3.99% per annum. See Note 8 . On March 10, 2021, the Company acquired approximately 57,000-square foot of land across the street from our corporate office for $475,000 in cash. The Company plans to build a warehouse on that land. On March 22, 2021, the Company acquired land adjacent to a Bombshells location in Houston, Texas for $1.04 million in cash. On April 7, 2021, the Company acquired land near our Bombshells location in Pearland, Texas for $1.275 million in cash. 2021 Dispositions On May 7, 2021, the Company sold one of the properties held for sale for $3.1 million. The property had a carrying value of $2.3 million. We recorded a net gain of approximately $657,000 after closing costs and we paid related debt amounting to $2.0 million from the proceeds of the sale. On September 21, 2021, the Company sold land where a club used to be operated for $2.25 million with a net gain of approximately $54,000 after closing costs. We paid $1.2 million of related debt with the proceeds of the sale. 2022 Acquisitions On October 18, 2021, we and certain of our subsidiaries completed our acquisition of eleven gentlemen’s clubs, six related real estate properties, and associated intellectual property for a total agreed acquisition price of $88.0 million (with a total consideration fair value of $87.9 million based on the Company’s stock price at acquisition date and discounted due to the lock-up period, with interest rates on promissory notes reflective of market yields). We used the Finnerty Model to estimate the discount on stock marketability. The acquisition was structured by entering into nine asset purchase agreements, which allowed the Company to acquire from each club all of the tangible and intangible assets and personal property in that business except certain excluded assets, and two stock purchase agreements, where a newly formed subsidiary purchased 100% of the capital stock of two club-owning entities. Along with the asset and stock purchase agreements, the Company also entered into a real estate purchase and sale agreement for six real estate properties, and an intellectual property purchase agreement for substantially all of the intellectual property used in the adult entertainment establishment business owned and operated by the sellers. The acquisition gives the Company presence in four additional states. We paid for the acquisition with $36.8 million in cash, $21.2 million in four seller-financed notes (see Note 8 ), and 500,000 shares of our common stock. The fair value of the consideration transferred is as follows (in thousands): Cash $ 36,800 Notes payable 21,200 Common stock 29,933 Total consideration fair value $ 87,933 We recognized the assets and liabilities for this acquisition based on our estimates of their acquisition date fair values, all in our Nightclubs reportable segment. Based on the allocation of the fair value of the acquisition price, measurement period adjustments, and subject to any working capital adjustments, the amount of goodwill was estimated at $15.4 million. Goodwill represents the excess of the acquisition price fair value over the fair values of the tangible and identifiable intangible assets acquired and liabilities assumed, which is essentially the forward earnings potential of the acquired entities. Goodwill will not be amortized but will be tested at least annually for impairment. Approximately $7.1 million of the recognized goodwill for this transaction will be deductible for tax purposes. The following is our allocation of the fair value of the acquisition price (in thousands) as of October 18, 2021: Current assets $ 386 Property and equipment 19,273 Licenses 47,390 Tradenames 6,934 Leases acquired in-place 261 Deferred tax liability (1,741) Total net assets acquired 72,503 Goodwill 15,430 Acquisition price fair value $ 87,933 Licenses and tradenames, except for those associated with certain leased locations, will not be amortized but will be tested at least annually for impairment. The Company entered into leases with third parties for certain acquired clubs where the real estate was not part of the acquisition. In connection with this acquisition, we incurred acquisition-related expenses of approximately $414,000, of which $173,000 was recognized in fiscal 2021 and $241,000 was recognized in fiscal 2022, and in both periods included in selling, general and administrative expenses in our consolidated statements of income. We recorded $1.8 million in measurement period adjustments related to amortization of definite-lived intangibles and debt discount during fiscal 2022. On November 8, 2021, the Company acquired a club and related real estate in Newburgh, New York for a total acquisition price of $3.5 million, of which $2.5 million was paid in cash at closing and $1.0 million through a seller-financed 7-year promissory note with an interest rate of 4.0% per annum. The $3.5 million acquisition price was allocated $2.1 million to real estate, $200,000 to tangible assets, and $1.2 million to goodwill, which is deductible for tax purposes. The note is payable $13,669 per month, including principal and interest. See Note 8 . The Company incurred approximately $21,000 of acquisition-related costs for this acquisition, of which $11,000 was incurred in fiscal 2021 and $10,000 was incurred in fiscal 2022, both of which were included in selling, general and administrative expenses in our consolidated statements of income. On December 30, 2021, the Company acquired the real estate of one of its clubs in South Florida, which the Company previously leased, for $7.0 million in an all-cash purchase. At closing, the Company wrote off the balance of its operating lease right-of-use assets and corresponding operating lease liability related to the discontinued lease, both of which amounted to $5.9 million. On March 1, 2022, the Company acquired real estate in Stafford, Texas for $3.5 million for a future Bombshells location. The Company secured a $2.6 million loan in relation to the purchase. See Note 8 . On March 1, 2022, the Company acquired real estate in Lubbock, Texas for $400,000 to move one of our existing clubs due to eminent domain on the current location. See 2023 Disposition below. On May 2, 2022, the Company completed an acquisition of a club in Miami, Florida for a total acquisition price of $16.0 million. The acquisition price includes $3.0 million for the real estate property covered in a stock purchase agreement payable in cash at closing, and $13.0 million for the adult entertainment business covered in a separate stock purchase agreement payable as follows: (1) $2.0 million in cash at closing; (2) $6.0 million under a 10% three-year promissory note payable in 35 equal monthly payments of $79,290 in principal and interest based on a ten-year amortization schedule, with a balloon payment for the remaining principal plus accrued interest due at maturity; and (3) $5.0 million under a 10% ten-year interest-only promissory note payable in 119 equal monthly payments of $41,667 in interest, with a balloon payment of the total $5.0 million in principal plus accrued interest due at maturity. The Company acquired 100% of the capital stock of the acquired companies in each of the stock purchase agreements mentioned above. The $5.0 million promissory note may be earlier canceled if there are any regulatory changes that would prohibit the business from operating as an adult entertainment establishment within ten years of the closing date of the stock purchase agreement. Based on recent renewals of licenses of similar businesses in the region where the club operates, the Company believes that the probability of any changes to the regulatory environment is low as of the reporting date and would not materially impact the fair value of the debt. We recognized the assets and liabilities for this acquisition based on our estimates of their acquisition date fair values, all in our Nightclubs reportable segment. Based on the allocation of the fair value of the acquisition price, measurement period adjustments, and subject to any working capital adjustments, the amount of goodwill was estimated to be $6.8 million. Goodwill represents the excess of the acquisition price fair value over the fair values of the tangible and identifiable intangible assets acquired and liabilities assumed, which is essentially the forward earnings potential of the acquired entities. Goodwill will not be amortized but will be tested at least annually for impairment. The recognized goodwill will not be deductible for tax purposes. The following is our allocation of the fair value of the acquisition price (in thousands) as of May 2, 2022: Current assets $ 172 Property and equipment 5,336 Licenses 4,900 Tradenames 1,460 Deferred tax liability (2,627) Total net assets acquired 9,241 Goodwill 6,759 Acquisition price fair value $ 16,000 Licenses and tradenames will not be amortized but will be tested at least annually for impairment. In connection with the acquisition, we incurred acquisition-related expenses of approximately $28,000, which is included in selling, general and administrative expenses in our consolidated statement of income for the year ended September 30, 2022. On May 23, 2022, the Company acquired real estate in Rowlett, Texas for $3.3 million for a future Bombshells location. The Company secured a $2.2 million loan in relation to the purchase. See Note 8 . On July 21, 2022, the Company acquired a club in Odessa, Texas for a total acquisition price of $1.8 million, of which $1.0 million was for the real estate and $800,000 for the adult entertainment business. The Company paid $1.0 million in cash at closing for the real estate and executed an $800,000 6% seller-financed promissory note for the business. The promissory note matures in seven years and is payable in 84 equal monthly installments of $11,687 of principal and interest. See Note 8 . The $1.8 million acquisition price was allocated $11,000 to current assets, $1.1 million to property and equipment, and $684,000 to licenses. On July 27, 2022, the Company completed the acquisition of a club in Hallandale Beach, Florida for a total acquisition price of $25.0 million. The acquisition includes (1) $20.0 million for the adult entertainment business covered in a stock purchase agreement paid $10.0 million in cash at closing and $10.0 million under a 6% ten-year promissory note payable in 120 equal monthly payments of $111,020 in principal and interest, and (2) $5.0 million for the real estate property covered in an asset purchase agreement payable under a 6% ten-year promissory note payable in 120 equal monthly payments of $55,510 in principal and interest. In the stock purchase agreement, the Company acquired 100% of the capital stock of the company which owned the adult entertainment business. The total fair value of the consideration transferred is $23.4 million, which includes a discount on the $10.0 million promissory note to reflect market participant yield expectations. We recognized the assets and liabilities for this acquisition based on our estimates of their acquisition date fair values, all in our Nightclubs reportable segment. Based on the allocation of the fair value of the acquisition price, measurement period adjustments, and subject to any working capital adjustments, the amount of goodwill was estimated to be $5.6 million. Goodwill represents the excess of the acquisition price fair value over the fair values of the tangible and identifiable intangible assets acquired and liabilities assumed, which is essentially the forward earnings potential of the acquired entities. Goodwill will not be amortized but will be tested at least annually for impairment. The recognized goodwill will not be deductible for tax purposes. The following is our allocation of the fair value of the acquisition price (in thousands) as of July 27, 2022: Current assets $ 71 Property and equipment 4,921 Licenses 16,810 Deferred tax liability (3,979) Total net assets acquired 17,823 Goodwill 5,577 Acquisition price fair value $ 23,400 On August 18, 2022, the Company purchased real estate in Huntsville, Alabama amounting to $2.1 million for a future Bombshells location. The Company paid $525,000 in cash at closing and entered into a bank financing for the $1.6 million remainder (see Note 8 ). On September 12, 2022, the Company entered into a joint venture with a private investment company to acquire real estate in Austin, Texas amounting to $2.2 million for a future Bombshells location. The Company has a 51% interest in the joint venture and paid its $1.1 million share for the real estate purchase while the investment of the private investment company was recorded as noncontrolling interest in our consolidated balance sheet. 2022 Dispositions On October 8, 2021, the Company sold one of its clubs in South Houston for $300,000. On July 12, 2022, the Company received $6.0 million from the Philadelphia Regional Port Authority for one of the Company's rental properties, with a carrying value of $4.9 million, due to eminent domain. The Company paid the current lessee a termination fee of $250,000, which is included in other charges, net in our consolidated statement of income. The Company used $2.1 million of the proceeds to pay down a loan related to the property. 2023 Acquisitions On October 10, 2022, the Company purchased real estate in Lubbock, Texas amounting to $3.4 million for a future Bombshells location. The Company paid $1.2 million in cash at closing and obtained bank financing for the $2.3 million remainder (see Note 8 ). The site includes extra land that will be listed for sale once the Bombshells unit is completed. On October 11, 2022, the Company purchased a hangar in Arcola, Texas amounting to $754,000 in cash. On October 26, 2022, the Company completed the acquisition of a club in Dickinson, Texas for a total agreed acquisition price of $9.0 million (with an acquisition date fair value of $8.9 million based on certain legal contingencies that existed pre-acquisition). The acquisition includes (1) $2.5 million for the adult entertainment business covered in a stock purchase agreement paid fully in cash at closing and (2) $6.5 million for the real estate property covered in a real estate purchase agreement paid $1.5 million in cash at closing and $5.0 million under a 6% 15-year promissory note (see Note 8 ). In the stock purchase agreement, the Company acquired 100% of the capital stock of the company which owned the adult entertainment business. The acquisition gives the Company its first adult club in the Galveston, Texas area market. The following is our allocation of the fair value of the acquisition price (in thousands) as of October 26, 2022: Current assets $ 64 Property and equipment 4,884 Licenses 1,170 Tradename 340 Accrued liability (95) Deferred tax liability (363) Total net assets acquired 6,000 Goodwill 2,905 Acquisition price fair value $ 8,905 We believe that in this acquisition goodwill represents the existing customer base of the club in the area and the added synergy profitability expansion when we implement the Company's processes into the club. Goodwill, licenses, and tradename will not be amortized but will be tested at least annually for impairment. Approximately $1.5 million of the recognized goodwill will be deductible for tax purposes. In connection with this acquisition, we incurred approximately $23,000 in acquisition-related expenses during 2023, which is included in selling, general and administrative expenses in our consolidated statement of income. From the date of acquisition until September 30, 2023, the club contributed revenues $2.0 million and loss from operations of $3.1 million, which are included in our consolidated statement of income. The Company is not providing supplemental pro forma disclosures for this acquisition as it does not materially contribute to the consolidated operations of the Company. On November 8, 2022, the Company purchased real estate in Aurora, Colorado amounting to $850,000 in cash for a future Bombshells location. On December 5, 2022, the Company purchased real estate in Central City, Colorado amounting to $2.5 million in cash for the development of a Rick's Cabaret Steakhouse and Casino business. On December 16, 2022, the Company purchased real estate in Fort Worth, Texas amounting to $2.4 million in cash. The property has two buildings, one of which the Company is leasing out to an existing tenant and the other building the Company is remodeling for future adult club operations. On December 20, 2022, the Company purchased a food hall property in Greenwood Village, Colorado for $5.3 million, including direct transaction costs and net of certain accrued taxes amounting to $102,000. The purchase price was paid $1.9 million in cash at closing and $3.3 million under a 6.67% five-year promissory note (see Note 8 ). The Company allocated $2.1 million to land, $2.6 million to building improvements, $98,000 to furniture, fixtures and equipment, and $565,000 to in-place leases based on their relative fair values. The in-place lease intangible has a weighted average amortization period of 1.7 years. On February 6, 2023, in view of the increasing business presence of the Company in the Denver, Colorado area, the Company acquired a non-income-producing corporate property for $458,000 in cash, to be used for office space and employee housing. On February 6, 2023, the Company purchased real estate in Central City, Colorado amounting to $2.2 million in cash for the development of another casino business. On February 7, 2023, the Company completed the acquisition of a previously franchised Bombshells location in San Antonio, Texas for a total acquisition price of $3.2 million. The transaction was effected through a membership interest purchase agreement under which a subsidiary of the Company purchased 100% of the issued and outstanding membership interests of the target limited liability company that owns and operates the Bombshells location from the six previous owners of the entity (the "Sellers"). At acquisition date, the Sellers were paid $1.2 million in cash and were issued six seller-financed promissory notes totaling $2.0 million (see Note 8 ). The Company allocated the acquisition price $61,000 to inventory, $2.7 million to property and equipment, and $480,000 to favorable lease intangible and right-of-use assets (which both have amortizable life of 13.4 years), net of lease liability. On March 16, 2023, the Company and certain of its subsidiaries completed the acquisition of five gentlemen's clubs, five related real estate properties, associated intellectual properties, and certain automated teller machines for a total agreed acquisition price of $66.5 million, payable with a total of $25.0 million in cash, a total of $25.5 million in 10-year 7% seller financing promissory notes, and 200,000 restricted shares of common stock based on an $80 per share price, subject to lock-up, leak out restrictions. The five clubs, which are all located in Texas, were purchased through four different asset purchase agreements and one stock purchase agreement, under each of which a newly formed wholly-owned subsidiary of the Company acquired from each club-owning entity all of the tangible and intangible assets and personal property used in the business of that club, except for certain excluded assets. The fair value of the common stock consideration was discounted due to lack of marketability during the lock-up period. The cash consideration at closing was partially funded by the $10.0 million line of credit secured by the Company on March 9, 2023 (see Note 8 ). The fair value of the consideration transferred is as follows: Cash $ 25,000 Notes payable 25,500 Common stock 12,847 Total consideration fair value $ 63,347 We recognized the assets and liabilities for this acquisition based on our estimates of their acquisition date fair values, all in our Nightclub reportable segment. Upon finalization of our valuation of the assets acquired in this transaction, we reallocated certain amounts from goodwill to indefinite-lived intangible assets. Based on the allocation of the fair value of the acquisition price, measurement period adjustments, and subject to any working capital adjustments, the amount of goodwill is estimated at $4.3 million. Goodwill represents the excess of the acquisition price fair value over the fair values of the tangible and identifiable intangible assets acquired and liabilities assumed, which is essentially the forward earnings potential of the acquired entities. This acquisition also gives the Company a bigger market share in the Hispanic demographic in the Texas metropolitan areas. Goodwill will not be amortized but will be tested at least annually for impairment. Approximately $4.3 million of the recognized goodwill will be deductible for tax purposes. The following is our allocation of the fair value of the acquisition price (in thousands) as of March 16, 2023: Current assets $ 632 Property and equipment 16,570 Licenses 36,110 Tradename 6,328 Accounts payable (632) Total net assets acquired 59,008 Goodwill 4,339 Acquisition price fair value $ 63,347 Licenses and tradenames will not be amortized but will be tested at least annually for impairment. In connection with this acquisition, we incurred approximately $304,000 in acquisition-related expenses during 2023, which is included in selling, general and administrative expenses in our consolidated statement of income. From the date of acquisition until September 30, 2023, the clubs contributed revenues of $16.1 million and income from operations of $4.8 million, which are included in our consolidated statement of income. The following table presents the unaudited pro forma combined results of operations of the Company and the five acquired clubs and related assets in the March 16, 2023 acquisition transaction above as though the acquisition occurred at the beginning of fiscal 2022 (in thousands, except per share amount and number of shares): 2023 2022 Pro forma revenues $ 306,729 $ 291,764 Pro forma net income attributable to RCIHH common stockholders $ 28,329 $ 51,198 Pro forma earnings per share - basic and diluted $ 3.01 $ 5.34 Pro forma weighted average number of common shares outstanding - basic and diluted 9,426,942 9,583,445 The above unaudited pro forma financial information is presented for informational purposes only and is not necessarily indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of fiscal 2022. The unaudited pro forma financial information reflects material, nonrecurring adjustments directly attributable to the acquisition including acquisition-related expenses, interest expense, and any related tax effects. The unaudited pro forma financial information includes adjustments related to changes in recognized expenses caused by the fair value of assets acquired, such as depreciation and amortization and related tax effects. Pro forma net income and pro forma earnings per share include the impact of acquisition-related expenses and interest expense related to the $10.0 million line-of-credit facility (see Note 8 ) and the nine seller-financed notes in the acquisition as if they were incurred as of the first day of fiscal 2022. Pro forma weighted average number of common shares outstanding includes the impact of 200,000 shares of our common stock issued as partial consideration for the acquisition. On June 20, 2023, the Company purchased a restaurant parcel located in a condominium building in Denver, Colorado amounting to $4.6 million for a future Bombshells location. The purchase price was paid $1.7 million in cash and $2.9 million under a 7.12% five-year promissory note (see Note 8 ). On August 3, 2023, the Company purchased real estate and office space in Central City, Colorado amounting to $2.9 million in cash to house administrative operations in the region. 2023 Disposition On November 4, 2022, the Company received $1.0 million from the Texas Department of Transportation for one of the Company's club properties in Lubbock, Texas due to eminent domain. On June 29, 2023, the Company sold a property with a carrying value of $1.1 million for $1.5 million in cash. The Company used $904,000 of the proceeds to pay off a loan related to the property. See also Note 6 for dispositions of real estate properties that had been classified as held-for-sale. |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Sep. 30, 2023 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (Unaudited) | Quarterly Results of Operations (Unaudited) The following tables summarize unaudited quarterly data for fiscal 2023, 2022, and 2021 (in thousands, except share and per share data): For the Three Months Ended December 31, 2022 March 31, June 30, September 30, 2023 Revenues (1) $ 69,968 $ 71,517 $ 77,055 $ 75,250 Income from operations (1) $ 16,898 $ 13,427 $ 15,515 $ 5,644 Net income attributable to RCIHH stockholders (1) $ 10,238 $ 7,732 $ 9,085 $ 2,191 Earnings per share (1) Basic and diluted $ 1.11 $ 0.83 $ 0.96 $ 0.23 Weighted average number of common shares outstanding Basic and diluted 9,230,258 9,265,781 9,430,225 9,417,166 Dividends per share declared and paid $ 0.05 $ 0.06 $ 0.06 $ 0.06 For the Three Months Ended December 31, 2021 March 31, June 30, September 30, 2022 Revenues (2) $ 61,836 $ 63,692 $ 70,714 $ 71,378 Income from operations (2) $ 15,911 $ 17,081 $ 20,507 $ 17,960 Net income attributable to RCIHH stockholders (2) $ 10,575 $ 10,952 $ 13,902 $ 10,612 Earnings per share (2) Basic and diluted $ 1.12 $ 1.15 $ 1.48 $ 1.15 Weighted average number of common shares outstanding Basic and diluted 9,407,519 9,489,085 9,389,675 9,249,864 Dividends per share declared and paid $ 0.04 $ 0.05 $ 0.05 $ 0.05 For the Three Months Ended December 31, 2020 March 31, June 30, September 30, 2021 Revenues $ 38,398 $ 44,059 $ 57,860 $ 54,941 Income from operations (3) $ 6,583 $ 9,841 $ 18,507 $ 3,617 Net income attributable to RCIHH stockholders (3) $ 9,643 $ 6,091 $ 12,302 $ 2,300 Earnings per share (3) Basic and diluted $ 1.07 $ 0.68 $ 1.37 $ 0.26 Weighted average number of common shares outstanding Basic and diluted 9,019,088 8,999,910 8,999,910 8,999,910 Dividends per share declared and paid $ 0.04 $ 0.04 $ 0.04 $ 0.04 (1) Fiscal year 2023 results of operations mainly impacted by the six newly acquired clubs and the lower same-store sales. Net income attributable to RCIHH stockholders and earnings per share were impacted by $12.6 million in asset impairments ($662,000 in the second quarter, $2.6 million in the third quarter, and $9.3 million in the fourth quarter) and $3.8 million in lawsuit settlements ($3.1 million in the second quarter, $63,000 in the third quarter, and $576,000 in the fourth quarter). Quarterly effective income tax expense (benefit) rate was 22.8%, 21.8%, 20.1%, and (39.6)% from first to fourth quarter, respectively, including the impact of the release of a $176,000 deferred tax asset valuation allowance and the pretax loss in the fourth quarter. (2) Fiscal year 2022 results of operations were significantly higher than prior year due to the fifteen acquired clubs and one new Bombshells. Net income attributable to RCIHH stockholders and earnings per share were impacted by $1.9 million in asset impairments ($1.7 million in the third quarter and $166,000 in the fourth quarter) and $2.4 million gain on sale or disposition of businesses and assets ($342,000 in the first quarter, $58,000 in the second quarter, $266,000 in the third quarter, and $1.7 million in the fourth quarter). Quarterly effective income tax expense rate was 21.7%, 23.4%, 21.3%, and 27.1% from first to fourth quarter, respectively, including the impact of the $343,000 deferred tax asset valuation allowance in the fourth quarter. (3) Fiscal year 2021 revenues were significantly higher compared to prior year, except for the first quarter, which was still affected by the lockdowns and social restrictions of the COVID-19 pandemic. Net income attributable to RCIHH stockholders and earnings per share were heavily impacted by the gain on debt extinguishment ($4.9 million in the first quarter and $380,000 in the second quarter), asset impairments totaling $13.6 million ($1.4 million in the second quarter, $271,000 in the third quarter, and $11.9 million in the fourth quarter), and gain on insurance totaling $1.3 million ($197,000 in the first quarter, $12,000 in the second quarter, and $1.0 million in the fourth quarter). Quarterly effective income tax expense (benefit) rate was (4.2)%, 24.3%, 24.4%, and (210.4)% from first to fourth quarter, respectively, including the impact of the release of a $462,000 deferred tax asset valuation allowance in the fourth quarter. Our nightclub operations are normally affected by seasonal factors. Historically, we have experienced reduced revenues from April through September (our fiscal third and fourth quarters) with the strongest operating results occurring during October through March (our fiscal first and second quarters). Our revenues in certain markets are also affected by sporting events that cause unusual changes in sales from year to year. |
Segment Information
Segment Information | 12 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company owns and operates adult nightclubs and Bombshells Restaurants and Bars. The Company has identified such segments based on management responsibility and the nature of the Company’s products, services and costs. There are no major distinctions in geographical areas served as all operations are in the United States. The Company measures segment profit (loss) as income (loss) from operations. Segment assets are those assets controlled by each reportable segment. The Other category below includes our media and energy drink divisions that are not significant to the consolidated financial statements. Below is the financial information related to the Company’s reportable segments (in thousands): 2023 2022 2021 Revenues (from external customers) Nightclubs $ 236,748 $ 206,251 $ 137,348 Bombshells 55,723 59,925 56,621 Other 1,319 1,444 1,289 $ 293,790 $ 267,620 $ 195,258 Income (loss) from operations Nightclubs $ 73,187 $ 82,798 $ 43,815 Bombshells 6,502 11,504 13,264 Other (1,446) 57 35 General corporate (26,759) (22,900) (18,566) $ 51,484 $ 71,459 $ 38,548 Capital expenditures Nightclubs $ 11,840 $ 17,477 $ 6,890 Bombshells 16,578 3,586 5,895 Other 8,400 841 157 General corporate 3,566 2,099 569 $ 40,384 $ 24,003 $ 13,511 Depreciation and amortization Nightclubs $ 10,871 $ 9,604 $ 5,494 Bombshells 2,574 1,783 1,824 Other 495 85 87 General corporate 1,211 919 833 $ 15,151 $ 12,391 $ 8,238 September 30, 2023 September 30, 2022 Total assets Nightclubs $ 483,563 $ 437,096 Bombshells 85,215 62,021 Other 6,936 2,635 General corporate 35,170 28,986 $ 610,884 $ 530,738 Excluded from revenues in the table above are intercompany rental revenues of the Nightclubs segment amounting to $16.6 million, $14.0 million, and $11.5 million for 2023, 2022, and 2021, respectively, and intercompany sales of Robust Energy Drink of Other segment amounting to $254,000, $261,000, and $141,000 for the same respective years. These intercompany revenue amounts are eliminated upon consolidation. General corporate expenses include corporate salaries, health insurance and social security taxes for officers, legal, accounting and information technology employees, corporate taxes and insurance, legal and accounting fees, depreciation and other corporate costs such as automobile and travel costs. Management considers these to be non-allocable costs for segment purposes. Certain real estate assets previously wholly assigned to Bombshells have been subdivided and allocated to other future development or investment projects. Accordingly, those asset costs have been transferred out of the Bombshells segment. As of September 30, 2022, we reclassified $9.0 million of goodwill from Corporate to Nightclubs to conform to current year presentation. See Note 2 . |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 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. The balance of our commercial bank indebtedness, net of debt discount and issuance costs, as of September 30, 2023 and 2022 was $119.2 million and $115.1 million, respectively. Included in the $17.0 million borrowing on October 12, 2021 (see Note 8 ) are notes borrowed from related parties—one note for $500,000 (Ed Anakar, President of RCI Management Services, Inc. and our Director of Operations) and another note for $150,000 (from a brother of Company CFO, Bradley Chhay, see above) in which the terms of the notes are the same as the rest of the lender group. Refer to Note 8 for October 2023 extension of term of promissory notes. We used the services of Nottingham Creations, and previously Sherwood Forest Creations, LLC, both furniture fabrication companies that manufacture tables, chairs and other furnishings for our Bombshells locations, as well as providing ongoing maintenance. Nottingham Creations is owned by a brother of Eric Langan (as was Sherwood Forest). Amounts billed to us for goods and services provided by Nottingham Creations and Sherwood Forest were approximately $195,000 in fiscal 2023, $207,000 in fiscal 2022, and $118,000 in fiscal 2021. As of September 30, 2023 and 2022, we owed Nottingham Creations and Sherwood Forest $10,700 and $92,808, respectively, in unpaid billings. TW Mechanical LLC (“TW Mechanical”) provided plumbing and HVAC services to both a third-party general contractor providing construction services to the Company, as well as directly to the Company during fiscal 2023, 2022, and 2021. A son-in-law of Eric Langan owns a 50% interest in TW Mechanical. Amounts billed by TW Mechanical to the third-party general contractor were approximately $443,295, $3,809, and $0 for the fiscal years 2023, 2022, and 2021, respectively. Amounts billed directly to the Company were approximately $9,430, $133,000, and $425,000 for the fiscal years 2023, 2022, and 2021, respectively. As of September 30, 2023 and 2022, the Company owed TW Mechanical approximately $0 and $9,338, respectively, in unpaid direct billings. |
Leases
Leases | 12 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Leases | Leases The Company leases certain facilities and equipment under operating leases per ASC 842. These leases include renewal or termination options for varying periods which we deemed reasonably certain to exercise. This determination is based on our consideration of certain economic, strategic and other factors that we evaluate at lease commencement date and reevaluate throughout the lease term. Some leasing arrangements require variable payments that are dependent on usage or may vary for other reasons, such as payments for insurance and tax payments and additional lease payments contingent on sales. The variable portion of lease payments is not included in our right-of-use assets or lease liabilities. Rather, variable payments, other than those dependent upon an index or rate, are expensed when the obligation for those payments is incurred and are included in lease expenses recorded in selling, general and administrative expenses in our consolidated statement of income. We have elected to apply the short-term lease exception for all underlying asset classes, which mainly includes equipment leases. That is, leases with a term of 12 months or less are not recognized on the balance sheet, but rather expensed on a straight-line basis over the lease term. We do not include significant restrictions or covenants in our lease agreements, and residual value guarantees are generally not included within our operating leases. Future maturities of operating lease liabilities as of September 30, 2023 are as follows (in thousands): Principal Interest Total October 2023 - September 2024 $ 2,977 $ 2,056 $ 5,033 October 2024 - September 2025 3,227 1,881 5,108 October 2025 - September 2026 3,516 1,691 5,207 October 2026 - September 2027 3,532 1,487 5,019 October 2027 - September 2028 2,982 1,300 4,282 Thereafter 21,918 4,630 26,548 $ 38,152 $ 13,045 $ 51,197 Total lease expense under ASC 842 was included in selling, general and administrative expenses in our consolidated statement of income, except for sublease income which was included in other revenue, for the years ended September 30, 2023, 2022, and 2021 as follows (in thousands): 2023 2022 2021 Operating lease expense – fixed payments $ 5,166 $ 4,738 $ 3,325 Variable lease expense 1,629 1,397 349 Short-term equipment and other lease expense (includes $357, $258 and $298 recorded in advertising and marketing for fiscal 2023, 2022, and 2021, respectively, and $557, $435 and $397 recorded in repairs and maintenance, respectively; see Note 4 ) 1,325 1,264 955 Sublease income — (4) (6) Total lease expense, net $ 8,120 $ 7,395 $ 4,623 Other information: Operating cash outflows from operating leases $ 7,949 $ 7,200 $ 4,522 Weighted average remaining lease term 10.5 years 11 years 12 years Weighted average discount rate 5.8 % 5.6 % 6.0 % In relation to certain rent concessions that we received from certain of our lessors in view of the COVID-19 pandemic, we accounted for those rent concessions as deferral of payments as if the lease is unchanged. Any reduction in total lease expense during the period caused by either an extension of the lease term or a forgiveness of certain lease payments is accounted for as variable lease payment adjustments. We recorded impairment charges of operating lease right-of-use assets amounting to $1.0 million, $0, and $0 during fiscal years 2023, 2022, and 2021, respectively. We recorded third-party operating lease revenue under ASC 842 amounting to $1.8 million, $1.6 million, and $1.5 million for fiscal 2023, 2022, and 2021, respectively. Minimum future base rentals are as follows: $1.7 million for 2024, $1.4 million for 2025, $380,000 for 2026, $320,000 for 2027, $292,000 for 2028, and $802,000 thereafter. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Debt On October 25, 2023, the Company entered into a debt modification transaction under which 26 investors holding a total principal amount of $15.7 million in unsecured promissory notes agreed to extend the maturity dates of such notes, with no other changes to the terms and conditions of the original promissory notes, which original promissory notes were issued in October 2021 and had original maturity dates in October 2024. The transaction was effected by the 26 investors returning for cancellation their original promissory notes, with us issuing new amended and restated promissory notes to such investors. The original promissory notes will be deemed cancelled as of the end of the day on October 31, 2023, and the new amended promissory notes will have an original issue date, and be deemed effective, as of November 1, 2023. Other than the extension of the maturity dates, there were no other changes to the terms and conditions of the original promissory notes (except for the reduction in principal, as described below, and the corresponding reduction in monthly installments of principal and interest). The new amended notes will continue to bear interest at the rate of 12% per annum. Of the new amended promissory notes, $9.1 million are payable interest-only monthly (or quarterly) in arrears, with a final lump sum payment of principal and accrued and unpaid interest due on October 1, 2026. The remaining $6.6 million in promissory notes are payable in monthly payments of principal and interest based on a 10-year amortization period, with the balance of the entire principal amount together with all accrued and unpaid interest due and payable in full on November 1, 2027. The original promissory notes that were returned and cancelled as consideration for the issuance of the $6.6 million in new amended promissory notes had an original principal amount of $7.5 million in October 2021. On November 17, 2023, the Company closed on a construction loan agreement with a bank lender for a total amount of $7.2 million bearing an interest rate of 8.5% per annum for the construction of a Bombshells restaurant in Rowlett, Texas. The promissory note is payable in 120 monthly payments, the first 18 months of which will be interest-only. The succeeding 101 monthly payments will be payable in equal installments of $63,022 in principal and interest, and the remaining balance in principal and accrued interest payable on the 120th month. Share Repurchase |
Schedule of Valuation and Quali
Schedule of Valuation and Qualifying Accounts | 12 Months Ended |
Sep. 30, 2023 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts | Schedule of Valuation and Qualifying Accounts (Amounts in Thousands) Balance at beginning of year Charged to costs and expenses (1) Deductions (2) Balance at end of year Allowance for doubtful accounts receivable Fiscal 2021 $ 261 $ 215 $ (94) $ 382 Fiscal 2022 $ 382 $ 191 $ (543) $ 30 Fiscal 2023 $ 30 $ 47 $ (15) $ 62 Allowance for doubtful notes receivable Fiscal 2021 $ 182 $ (80) $ — $ 102 Fiscal 2022 $ 102 $ 753 $ (855) $ — Fiscal 2023 $ — $ — $ — $ — Deferred tax asset valuation allowance (3) Fiscal 2021 $ 1,273 $ — $ (632) $ 641 Fiscal 2022 $ 641 $ 343 $ — $ 984 Fiscal 2023 $ 984 $ — $ (176) $ 808 (1) Charged to bad debts expense (under other selling, general and administrative expenses) in the consolidated statements of income. (2) Written off against gross receivable and allowance. (3) Included in deferred tax liability, net in the consolidated balance sheets. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Accounting | Basis of Accounting The accounts are maintained and the consolidated financial statements have been prepared using the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP” or “GAAP”). |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries in which a controlling interest is owned. Intercompany accounts and transactions have been eliminated in consolidation. |
Fiscal Year | Fiscal Year Our fiscal year ends on September 30. References to years 2023, 2022, and 2021 are for fiscal years ended September 30, 2023, 2022, and 2021, respectively. Our fiscal quarters chronologically end on December 31, March 31, June 30 and September 30. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts in the consolidated financial statements and accompanying notes. Estimates and assumptions are based on historical experience, forecasted future events, and various other assumptions that we believe to be reasonable under the circumstances. Estimates and assumptions may vary under different circumstances and conditions. We evaluate our estimates and assumptions on an ongoing basis. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers as cash equivalents all highly liquid investments with a maturity of three months or less when purchased. The Company maintains deposits in several financial institutions, which may at times exceed amounts covered by insurance provided by the U.S. Federal Deposit Insurance Corporation (“FDIC”). The Company has not experienced any losses related to amounts in excess of FDIC limits. |
Accounts and Notes Receivable | Accounts and Notes Receivable two |
Inventories | Inventories Inventories include alcoholic beverages, energy drinks, food, and Company merchandise. Inventories are carried at the lower of cost (on a first-in, first-out (“FIFO”) basis), or net realizable value. |
Property and Equipment | Property and Equipment |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill and other intangible assets with indefinite lives are not amortized but reviewed on an annual basis for impairment. Definite-lived intangible assets are amortized on a straight-line basis over their estimated lives. The costs of transferable licenses purchased through open markets are capitalized as indefinite-lived intangible assets. The costs of obtaining non-transferable licenses that are directly issued by local government agencies are expensed as incurred. Annual license renewal fees are expensed over their renewal term. Goodwill and other intangible assets that have indefinite useful lives are tested annually for impairment during our fourth fiscal quarter and are tested for impairment more frequently if events and circumstances indicate that the asset might be impaired. An impairment loss is recognized to the extent that the carrying amount exceeds the asset’s fair value. For our goodwill impairment review, we have the option to first perform a qualitative assessment to determine if it is more likely than not that the fair value of the reporting unit is less than its carrying value. This assessment is based on several factors, including industry and market conditions, overall financial performance, including an assessment of cash flows in comparison to actual and projected results of prior periods. If it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying value based on our qualitative analysis, or if we elect to skip this step, we perform a Step 1 quantitative analysis to determine the fair value of the reporting unit. The fair value is determined using market-related valuation models, including discounted cash flows and comparable asset market values. We recognize goodwill impairment in the amount that the carrying value of the reporting unit exceeds the fair value of the reporting unit, not to exceed the amount of goodwill allocated to the reporting unit, based on the results of our Step 1 analysis. For the year ended September 30, 2023, we identified four reporting units that were impaired and recognized a goodwill impairment loss totaling $4.2 million. For the year ended September 30, 2022, we identified one reporting unit that was impaired and recognized a goodwill impairment loss of $566,000. For the year ended September 30, 2021, we identified seven reporting units that were impaired and recognized a goodwill impairment loss totaling $6.3 million. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company calculates the fair value of its assets and liabilities which qualify as financial instruments and includes this additional information in the notes to consolidated financial statements when the fair value is different than the carrying value of these financial instruments. The estimated fair value of accounts receivable, accounts payable and accrued liabilities approximate their carrying amounts due to the relatively short maturity of these instruments. The carrying value of notes receivable and short and long-term debt also approximates fair value since these instruments bear market rates of interest. None of these instruments are held for trading purposes. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue from the sale of alcoholic beverages, food and merchandise, service and other revenues at the point-of-sale upon receipt of cash, check, or credit card charge, net of discounts and promotional allowances based on consideration specified in implied contracts with customers. Sales and liquor taxes collected from customers and remitted to governmental authorities are presented on a net basis in the accompanying consolidated statements of income. The Company recognizes revenue when it satisfies a performance obligation (point in time of sale) by transferring control over a product or service to a customer. Commission revenues, such as ATM commission, are recognized when the basis for such commission has transpired. Revenues from the sale of magazines and advertising content are recognized when the issue is published and shipped. Revenues and external expenses related to the Company’s annual Expo convention are recognized upon the completion of the convention, which normally occurs during our fiscal fourth quarter. Lease revenue (included in other revenues) is recognized when earned (recognized over time) and is more appropriately covered by guidance under ASC 842, Leases . Lease revenue is generally recognized ratably over the term of the lease. A substantial portion of our lessor contracts are classified as operating lease and a number of them are month-to-month or short-term contracts. Revenue from initial franchise and area development fees are recognized as the performance obligations are satisfied over the term of the franchise agreement. Franchise royalties and advertising contributions, which are a percentage of net sales of franchised restaurants, are recognized in the period the related sales occur. |
Advertising and Marketing | Advertising and Marketing |
Income Taxes | Income Taxes The Company and its subsidiaries are subject to U.S. federal income tax and income taxes imposed in the state and local jurisdictions where we operate our businesses. Deferred income taxes are determined using the liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. In addition, a valuation allowance is established to reduce any deferred tax asset for which it is determined that it is more likely than not that some portion of the deferred tax asset will not be realized. U.S. GAAP creates a single model to address accounting for uncertainty in tax positions by prescribing a minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. We recognize penalties related to unrecognized tax benefits as a component of selling, general and administrative expenses, and recognize interest accrued related to unrecognized tax benefits in interest expense. |
Investments | Investments |
Paycheck Protection Program | Paycheck Protection Program The Company’s policy is to account for the Paycheck Protection Program (“PPP”) loans as debt (see Note 8 ). The Company will continue to record the loans as debt until either (1) the loans are partially or entirely forgiven and the Company has been legally released from the obligation, at which point the amount forgiven will be recorded as income, or (2) the Company pays off the loans. |
Earnings Per Share | 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 or losses of the Company. Potential common stock shares consist of shares that may arise from outstanding dilutive common restricted stock, stock options and warrants (the number of which is computed using the treasury stock method) and from outstanding convertible debentures (the number of which is computed using the if-converted method). Diluted earnings per share considers the potential dilution that could occur if the Company’s outstanding common restricted stock, stock options, warrants and convertible debentures were converted into common stock that then shared in the Company’s earnings or losses (as adjusted for interest expense, that would no longer be incurred if the debentures were converted). |
Business Combinations | Business Combinations The Company accounts for business combinations under the acquisition method of accounting, which requires the recognition of acquired tangible and identifiable intangible assets and assumed liabilities at their acquisition date fair values. The excess of the acquisition price over the fair value of assets acquired and liabilities assumed is recorded as goodwill. Results of operations related to acquired entities are included prospectively beginning with the date of acquisition. Acquisition-related costs are expensed as incurred. |
Share Repurchases | Share Repurchases The Company accounts for treasury stock transactions using the cost method. When treasury shares are retired, we charge the excess of the repurchase price over the par value of the repurchased shares to additional paid-in capital. We also charge additional paid-in capital for any excise tax incurred related to share repurchases. |
Stock-based Compensation | Stock-based Compensation The Company recognizes all employee stock-based compensation in selling, general and administrative expenses in our consolidated statements of operations. Equity-classified awards are measured at the grant date fair value of the award and recognized as expense over their requisite service period. The Company estimates grant date fair value of stock options using the Black-Scholes option-pricing model. The following table provides the significant assumptions used in determining the estimated grant date fair value of the stock options granted in fiscal 2022. No grants were awarded in fiscal 2023 and 2021. Expected term (in years) 4.45 Expected volatility 64.42 % Expected dividend yield 0.20 % Risk-free rate 3.23 % The expected term was estimated using the historical exercise and post-vesting expiration behavior of grantees on stock options awarded prior to the 2022 Plan. The expected volatility was based on historical volatility of the Company's stock price for a period equal to the award's expected term. The expected dividend yield is based on the current dividend payout activity and the exercise price (that is, the expected dividends that would likely be reflected in an amount at which the stock option would be exchanged). The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant. We recognize forfeitures when they occur. |
Legal and Other Contingencies | Legal and Other Contingencies The Company records a liability when it is probable that a loss has been incurred and the amount is reasonably estimable. There is significant judgment required in both the probability determination and as to whether an exposure can be reasonably estimated. In the opinion of management, there was not at least a reasonable possibility that we may have incurred a material loss, or a material loss in excess of a recorded accrual, with respect to loss contingencies for asserted legal and other claims. The Company recognizes legal fees and expenses, including those related to legal contingencies, as incurred. Generally, the Company recognizes gain contingencies when they are realized or when all related contingencies have been resolved. The Company maintains insurance that covers claims arising from risks associated with the Company’s business including claims for workers’ compensation, general liability, property, auto, and business interruption coverage. The Company carries substantial insurance to cover such risks with large deductibles and/or self-insured retention. These policies have been structured to limit our per-occurrence exposure. The Company believes, and the Company’s experience has been, that such insurance policies have been sufficient to cover such risks. |
Fair Value Measurement and Assets and Liabilities that are Measured at Fair Value on a Nonrecurring Basis | Fair Value Measurement The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels. U.S. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: • Level 1 – Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2 – Include other inputs that are directly or indirectly observable in the marketplace. • Level 3 – Unobservable inputs which are supported by little or no market activity. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company classifies its marketable securities as available-for-sale, which are reported at fair value. Realized gains and losses (including unrealized holding gains and losses) from securities classified as available-for-sale are included in comprehensive income. The Company measures the fair value of its marketable securities based on quoted prices for identical securities in active markets, or Level 1 inputs. In accordance with U.S. GAAP, the Company reviews its marketable securities to determine whether a decline in fair value of a security below the cost basis is other than temporary. Should the decline be considered other than temporary, the Company writes down the cost basis of the security and include the loss in current earnings as opposed to an unrealized holding loss. No losses or other-than-temporary impairments in our marketable securities portfolio were recognized during the years ended September 30, 2023, 2022, and 2021. Assets and Liabilities that are Measured at Fair Value on a Nonrecurring Basis Assets and liabilities that are measured at fair value on a nonrecurring basis relate primarily to tangible property and equipment, goodwill and other intangible assets, which are remeasured when the derived fair value is below carrying value in the consolidated balance sheets. For these assets, the Company does not periodically adjust carrying value to fair value except in the event of impairment. If it is determined that impairment has occurred, the carrying value of the asset is reduced to fair value and the difference is included in other charges, net in the consolidated statements of operations. |
Reclassification | Reclassification |
Impact of Recently Issued Accounting Standards | Impact of Recently Issued Accounting Standards In October 2021, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers . This ASU amends Accounting Standards Codification ("ASC") Topic 805 to require acquiring entities to apply ASC 606 to recognize and measure contract assets and contract liabilities in business combinations. The ASU is effective for public entities for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. We are still evaluating the impact of this ASU but we do not expect it to have a material impact on our consolidated financial statements. In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions . The amendments in this ASU clarify that an entity should measure the fair value of an equity security subject to contractual sale restriction the same way it measures an identical equity security that is not subject to such a restriction. The FASB said the contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, should not affect its fair value. The ASU is effective for public entities for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. Early adoption is permitted. We have not yet evaluated the impact of this ASU on our consolidated financial statements. In March 2023, the FASB issued ASU 2023-01, Leases (Topic 842): Common Control Arrangements, which amends certain provisions of ASC 842 that apply to arrangements between related parties under common control. The ASU requires all companies to amortize leasehold improvements associated with common control leases over the asset's useful life to the common control group regardless of the lease term. It also allows private and certain not-for-profit entities to use the written terms and conditions of an agreement to account for common control leases without further assessing the legal enforceability of those terms. The guidance is effective for all entities in fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted for both interim and annual financial statements that have not yet been made available for issuance. We are still evaluating the impact of this ASU on our consolidated financial statements. In August 2023, the FASB issued ASU 2023-05, Business Combinations—Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement , which addresses the accounting for contributions made to a joint venture, upon formation, in a joint venture's separate financial statements. The objectives of the ASU are to (1)) provide decision-useful information to investors and other allocators of capital in a joint venture's financial statements and (2) reduce diversity in practice. The FASB decided to require a joint venture to apply a new basis of accounting upon formation that will recognize and initially measure its assets and liabilities at fair value (with exceptions to fair value measurement that are consistent with the business combinations guidance). The amendments of this ASU are effective prospectively for all joint venture formations with a formation date on or after January 1, 2025. Additionally, a joint venture that was formed before January 1, 2025 may elect to apply the amendments retrospectively if it has sufficient information. early adoptions is permitted in any interim or annual period in which financial statements have not yet been issued (or made available for issuance), either prospectively or retrospectively. We are still evaluating the impact of this ASU on our consolidated financial statements. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which aims to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. In addition, the amendments in the ASU enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements. The purpose of the amendments is to enable investors to better understand an entity's overall performance and assess potential future cash flows. The ASU applies to all public entities that are required to report segment information in accordance with ASC 280, and is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. We are evaluating the impact of this ASU on our consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Fair Value of Options Valuation Assumptions | The following table provides the significant assumptions used in determining the estimated grant date fair value of the stock options granted in fiscal 2022. No grants were awarded in fiscal 2023 and 2021. Expected term (in years) 4.45 Expected volatility 64.42 % Expected dividend yield 0.20 % Risk-free rate 3.23 % |
Schedule of Assets and Liabilities Measured at Fair Value on Nonrecurring Basis | Assets and liabilities that are measured at fair value on a nonrecurring basis are as follows (in thousands): Fair Value at Reporting Date Using Description September 30, Quoted Prices in Active Markets for Identical Asset Significant Other Observable Inputs Significant Unobservable Inputs Property and equipment* $ 21,454 $ — $ — $ 21,454 Indefinite-lived intangibles* 43,948 — — 43,948 Indefinite-lived intangibles** 2,996 — — 2,996 Definite-lived intangibles** 8,220 — — 8,220 Goodwill* 6,881 — — 6,881 Goodwill** 1,084 — — 1,084 Current assets* 696 — — 696 Fair Value at Reporting Date Using Description September 30, Quoted Prices in Active Markets for Identical Asset Significant Other Observable Inputs Significant Unobservable Inputs Property and equipment* $ 32,904 $ — $ — $ 32,904 Property and equipment** 3,432 — — 3,432 Indefinite-lived intangibles* 50,454 — — 50,454 Definite-lived intangibles* 27,986 — — 27,986 Goodwill* 20,608 — — 20,608 Goodwill** 663 — — 663 Current assets* 681 — — 681 * Certain assets and liabilities measured at the acquisition dates. ** Measured at year-end impairment testing. Unrealized Gain (Loss/Impairments) Recognized Years Ended September 30, Description 2023 2022 2021 Goodwill $ (4,239) $ (566) $ (6,307) Property and equipment, net (including held for sale) (58) (1,029) (2,202) Indefinite-lived intangibles (5,516) (293) (5,296) Definite-lived intangibles (1,813) — — Operating lease right-of-use assets (1,003) — — Other assets (equity securities) — — (84) |
Schedule of Significant Unobservable Inputs Used in Level 3 Fair Value Measurement | The significant unobservable inputs used in our level 3 fair value measurements are as follows: Range (Weighted Average) Areas Valuation Techniques Unobservable Input 2023 2022 2021 Property and equipment Discounted cash flow EBITDA multiple 1x - 12x (11x) 9x - 10x (10x) 8x (8x) Revenue/EBITDA growth rate 0% - 2.5% (1.25%) 0% - 2.5% (1.5%) 0% - 2.5% (1%) Weighted average cost of capital 11% (11.0%) 12.5% (12.5%) 13% - 17% (15%) Goodwill Discounted cash flow EBITDA multiple 9x - 12x (12x) 8x - 10x (9x) 8x (8x) Revenue/EBITDA growth rate 0% - 2.5% (2.5%) 0% - 2.5% (1.5%) 0% - 2.5% (1%) Weighted average cost of capital 11% (11%) 12.5% (12.5%) 13% - 17% (15%) SOB licenses Multiperiod excess earnings EBITDA multiple 12x (12x) 9x - 10x (10x) 8x (8x) Revenue/EBITDA growth rate 0% - 2.5% (2.5%) 0% - 2.5% (1.5%) 0% - 2.5% (1%) Weighted average cost of capital 11% (11%) 12.5% (12.5%) 13% - 17% (15%) Contributory asset charges rate 10% - 21.5% (15%) 0.5% - 7.4% (2.3%) 1.4% - 8.0% (4%) Tradename Relief-from-royalty method Revenue growth rate 0% - 2.5% (2.5%) 0% - 2.5% (1.5%) 0% - 2.5% (2.5%) Terminal multiple 12x (12x) 9x - 10x (9x) 8x (8x) Royalty rate 3% - 6% (4.7%) 3.5% - 4.5% (4%) None Weighted average cost of capital 11% (11%) 12.5% (12.5%) 15% (15%) Operating lease right-of-use assets Discounted cash flow EBITDA growth rate 1.5% - 2.5% (2.3%) 0% - 2.5% (1.5%) 0% - 2.5% (1%) Weighted average cost of capital 11% (11%) 12.5% (12.5%) 13% - 17% (15%) Business combinations Various* Growth rate 0% - 11.2% (5.5%) 2.5% - 10% (4.8%) None Weighted average cost of capital 16.5% - 18.0% (17.8%) 15% - 19.5% (18.1%) None Internal rate of return 16.5% - 30.0% (22.4%) 15% - 21.5% (19.4%) None Contributory asset charges rate 15.6% - 21.5% (16.3%) 8.5% - 10.2% (9.3%) None * Includes all of the valuation techniques for each of the fair valued assets above as of each acquisition date. |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Segment Revenues | Revenues, as disaggregated by revenue type, timing of recognition, and reportable segment (see also Note 16 ), are shown below (in thousands). Fiscal 2023 Nightclubs Bombshells Other Total Sales of alcoholic beverages $ 96,325 $ 30,937 $ — $ 127,262 Sales of food and merchandise 19,995 23,911 — 43,906 Service revenues 103,217 360 — 103,577 Other revenues 17,211 515 1,319 19,045 $ 236,748 $ 55,723 $ 1,319 $ 293,790 Recognized at a point in time $ 234,981 $ 55,677 $ 1,274 $ 291,932 Recognized over time 1,767 46 45 1,858 $ 236,748 $ 55,723 $ 1,319 $ 293,790 Fiscal 2022 Nightclubs Bombshells Other Total Sales of alcoholic beverages $ 80,001 $ 33,315 $ — $ 113,316 Sales of food and merchandise 18,289 26,005 — 44,294 Service revenues 93,481 407 — 93,888 Other revenues 14,480 198 1,444 16,122 $ 206,251 $ 59,925 $ 1,444 $ 267,620 Recognized at a point in time $ 204,644 $ 59,918 $ 1,443 $ 266,005 Recognized over time 1,607 7 1 1,615 $ 206,251 $ 59,925 $ 1,444 $ 267,620 Fiscal 2021 Nightclubs Bombshells Other Total Sales of alcoholic beverages $ 54,305 $ 32,380 $ — $ 86,685 Sales of food and merchandise 17,221 23,890 — 41,111 Service revenues 55,146 315 — 55,461 Other revenues 10,676 36 1,289 12,001 $ 137,348 $ 56,621 $ 1,289 $ 195,258 Recognized at a point in time $ 135,799 $ 56,617 $ 1,284 $ 193,700 Recognized over time 1,549 4 5 1,558 $ 137,348 $ 56,621 $ 1,289 $ 195,258 |
Schedule of Reconciliation of Contract Liabilities with Customers | A reconciliation of contract liabilities with customers, included in accrued liabilities in our consolidated balance sheets, is presented below (in thousands): Balance at September 30, 2021 Consideration Received Recognized in Revenue Balance at September 30, 2022 Consideration Received (Refunded) Recognized in Revenue Balance at September 30, 2023 Ad revenue $ 84 $ 611 $ (613) $ 82 $ 451 $ (484) $ 49 Expo revenue 151 426 (569) 8 574 (581) 1 Other (including franchise fees, see below) 119 33 (8) 144 (51) (47) 46 $ 354 $ 1,070 $ (1,190) $ 234 $ 974 $ (1,112) $ 96 |
Selected Account Information (T
Selected Account Information (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Selected Account Information | |
Schedule of Accounts Receivable | The components of accounts receivable, net are as follows (in thousands): September 30, 2023 2022 Credit card receivables $ 4,141 $ 2,687 Income tax refundable 2,989 2,979 ATM-in-transit 1,675 819 Other (net of allowance for doubtful accounts of $62 and $30, respectively) 1,041 2,025 Total accounts receivable, net $ 9,846 $ 8,510 |
Schedule of Components of Prepaid Expenses and Other Current Assets | The components of prepaid expenses and other current assets are as follows (in thousands): September 30, 2023 2022 Prepaid insurance $ 375 $ 191 Prepaid legal 184 61 Prepaid taxes and licenses 486 391 Prepaid rent 346 296 Other 552 560 Total prepaid expenses and other current assets $ 1,943 $ 1,499 |
Schedule of Accrued Liabilities | The components of accrued liabilities are as follows (in thousands): September 30, 2023 2022 Payroll and related costs $ 4,412 $ 3,186 Property taxes 3,086 2,618 Sales and liquor taxes 2,468 2,227 Insurance 9 30 Interest 654 499 Patron tax 914 467 Lawsuit settlement 2,448 246 Unearned revenues 96 234 Other 1,964 1,821 Total accrued liabilities $ 16,051 $ 11,328 |
Schedule of Selling, General and Administrative Expenses | The components of selling, general and administrative expenses are as follows (in thousands): 2023 2022 2021 Taxes and permits $ 11,966 $ 9,468 $ 8,701 Advertising and marketing 11,928 9,860 6,676 Supplies and services 10,724 8,614 6,190 Insurance 10,268 10,152 5,676 Lease 7,206 6,706 3,942 Legal 3,742 1,995 3,997 Utilities 5,760 4,585 3,366 Charge cards fees 7,090 6,292 3,376 Security 5,618 4,404 3,892 Accounting and professional fees 4,286 3,909 2,031 Repairs and maintenance 4,924 3,754 2,767 Stock-based compensation 2,588 2,353 — Other 6,924 6,755 3,994 Total selling, general and administrative expenses $ 93,024 $ 78,847 $ 54,608 |
Schedule of Components of Other Charges, Net | The components of other charges, net are as follows (in thousands): 2023 2022 2021 Impairment of assets $ 12,629 $ 1,888 $ 13,612 Settlement of lawsuits 3,759 1,417 1,349 Gain on sale of businesses and assets (682) (2,375) (522) Gain on insurance (77) (463) (1,253) Total other charges, net $ 15,629 $ 467 $ 13,186 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property and equipment consisted of the following (in thousands): September 30, 2023 2022 Land $ 95,018 $ 78,116 Buildings and improvements 204,947 159,037 Equipment 49,632 45,648 Furniture 13,959 12,391 Total property and equipment 363,556 295,192 Less accumulated depreciation (80,851) (70,577) Property and equipment, net $ 282,705 $ 224,615 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill and Other Intangible Assets | Goodwill and other intangible assets consisted of the following (in thousands): September 30, 2023 2022 Indefinite useful lives: Goodwill $ 70,772 $ 67,767 Licenses 135,735 103,972 Tradename and domain name 19,811 13,142 226,318 184,881 Amortization Period Definite useful lives: Discounted leases Lease term 811 78 Non-compete agreements 5 years 3 55 Software 5 years 55 723 Licenses Lease term 22,597 25,962 Leases acquired in-place Lease term 133 117 23,599 26,935 Total goodwill and other intangible assets $ 249,917 $ 211,816 |
Schedule of Indefinite-lived, Definite-lived Intangible Assets and Goodwill | 2023 2022 Definite- Lived Intangibles Indefinite- Lived Intangibles Goodwill Definite- Lived Intangibles Indefinite- Lived Intangibles Goodwill Beginning balance $ 26,935 $ 117,114 $ 67,767 $ 400 $ 67,424 $ 39,379 Acquisitions 2,005 43,948 7,244 28,653 50,453 28,954 Impairment (1,813) (5,516) (4,239) — (293) (566) Dispositions — — — — (470) — Amortization (3,528) — — (2,118) — — Ending balance $ 23,599 $ 155,546 $ 70,772 $ 26,935 $ 117,114 $ 67,767 |
Schedule of Definite-lived Intangible Assets | Definite-lived intangible assets consist of the following (in thousands): September 30, 2023 2022 Licenses $ 27,725 $ 27,725 Software 2,332 1,671 Leases acquired in-place 826 261 Discounted leases 1,076 297 Non-compete agreements 1,100 1,100 Distribution agreements 317 317 Total definite-lived intangibles 33,376 31,371 Less accumulated amortization and impairment (9,777) (4,436) Definite-lived intangibles, net $ 23,599 $ 26,935 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Debt consisted of the following (in thousands): September 30, 2023 2022 Notes payable at 5.5%, fully paid in January 2023 (d)(1) $ — $ 678 Note payable at 8%, matures October 2027, as amended (b)(2)(6) 3,025 3,025 Note payable at 8%, matures May 2029 (b)(2) 9,180 10,412 Note payable at 5.99%, matures September 2033, as amended (c) (3) 5,351 5,731 Note payable at 5.49%, matures March 2039, as amended (c)(4) 1,937 2,008 Note payable at 5.25%, matures September 2031 *(a)(5) 87,937 92,062 Notes payable at 12%, matures October 2024 (d)(7) 9,500 9,500 Notes payable at 12%, matures October 2024 (d)(7) 3,331 3,561 Notes payable at 12%, matures October 2024 (d)(7) 3,331 3,561 Note payable at 5.25% matures October 2031 (a)(8) 1,136 1,172 Note payable at 6% matures October 2031 (b)(8) 9,459 10,321 Note payable at 6% matures October 2041 (b)(8) 7,611 7,828 Note payable at 6% matures October 2041 (b)(8) 950 978 Note payable at 4% matures November 2028 (b)(9) 764 895 Note payable at 5.25% matures January 2032 *(a)(10) 16,622 18,391 Note payable at 4.25% matures February 2043 *(a)(11) 2,583 2,625 Note payable at 10% matures May 2025 (b)(12) 5,501 5,881 Note payable at 10% matures May 2032 (b)(12) 5,000 5,000 Note payable at 5% matures November 2023 *(a)(13) 2,195 2,195 Note payable at 6% matures July 2029 (b)(14) 690 785 Note payable at 6% matures July 2032 (b)(15) 9,119 9,880 Note payable at 6% matures August 2032 (a)(15) 4,592 4,970 Note payable at 5.25% matures February 2024 *(a)(16) 1,575 1,575 Note payable at 4.79% matures October 2042 (c)(17) 2,731 2,806 Note payable initially at 6% matures April 2024 *(a)(18) 2,259 — Note payable at 6% matures October 2037 (a)(19) 4,708 — Note payable initially at 6% matures May 2024 *(a)(20) 1,500 — Note payable at 6.67% matures January 2028 *(a)(21) 3,302 — Notes payable at 7% matures February 2025 (b)(22) 1,801 — Notes payable at 7% matures March 2033 (a)(b)(24) 24,603 — Note payable initially at 8.75% matures March 2025 (d)(23) 7,500 — Note payable initially at 7.12% matures June 2028 *(a)(25) 2,874 — Total debt 242,667 205,840 Less unamortized debt discount and issuance costs (2,916) (3,377) Less current portion (22,843) (11,896) Total long-term portion of debt, net $ 216,908 $ 190,567 * These commercial bank debts are guaranteed by the Company’s CEO. See Note 1 7 . |
Schedule of Long-term Debt Instruments | Following is a summary of long-term debt at September 30 (in thousands): 2023 2022 (a) Secured by real estate $ 136,107 $ 122,990 (b) Secured by stock in subsidiary 72,879 55,005 (c) Secured by other assets 10,019 10,545 (d) Unsecured 23,662 17,300 $ 242,667 $ 205,840 |
Schedule of Maturities of Long-term Debt | Future maturities of debt obligations as of September 30, 2023 consist of the following (in thousands): Regular Amortization Balloon Payments Total Payments 2024 $ 15,837 $ 7,529 $ 23,366 2025 12,149 26,772 38,921 2026 12,498 — 12,498 2027 13,287 — 13,287 2028 14,050 8,731 22,781 Thereafter 61,273 70,541 131,814 $ 129,094 $ 113,573 $ 242,667 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense | Income tax expense consisted of the following (in thousands): 2023 2022 2021 Current Federal $ 6,506 $ 8,335 $ 4,598 State and local 2,121 2,656 644 Total current income tax expense 8,627 10,991 5,242 Deferred Federal (1,294) 2,080 (161) State and local (487) 1,000 (1,092) Total deferred income tax expense (benefit) (1,781) 3,080 (1,253) Total income tax expense $ 6,846 $ 14,071 $ 3,989 |
Schedule of Effective Income Tax Rate Reconciliation | Income tax expense differs from the “expected” income tax expense computed by applying the U.S. federal statutory rate to earnings before income taxes for the years ended September 30 as a result of the following (in thousands): 2023 2022 2021 Federal statutory income tax expense $ 7,549 $ 12,628 $ 7,169 State income taxes, net of federal benefit 1,620 1,801 716 Permanent differences 605 96 (434) Change in tax rates (255) 896 (804) Change in valuation allowance (176) 343 (632) Tax credits (2,131) (1,796) (1,207) Other (366) 103 (819) Total income tax expense $ 6,846 $ 14,071 $ 3,989 |
Schedule of Deferred Tax Assets and Liabilities | The significant components of the Company’s deferred tax assets and liabilities were as follows (in thousands): September 30, 2023 2022 Deferred tax assets: Net operating loss carryforwards $ 827 $ 1,022 Capital loss carryforwards 651 234 Right-of-use assets 946 626 Accrued expenses 748 240 Stock-based compensation 1,185 569 Other 123 — Valuation allowance (808) (984) 3,672 1,707 Deferred tax liabilities: Intangibles (21,468) (21,927) Property and equipment (11,085) (10,119) Prepaid expenses (262) (205) Other — (18) (32,815) (32,269) $ (29,143) $ (30,562) |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Information about Stock Option Activity | The following table summarizes information about stock option activity under the 2022 Plan: Number of Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding at September 30, 2022 300,000 $ 100.00 Granted — Outstanding at September 30, 2023 300,000 $ 100.00 3.4 $ — Exercisable at September 30, 2023 60,000 $ 100.00 3.4 $ — |
Insurance Recoveries (Tables)
Insurance Recoveries (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Unusual or Infrequent Items, or Both [Abstract] | |
Schedule of Business Insurance Recoveries | In relation to these casualty events, we recorded the following in our consolidated financial statements (in thousands): Included in 2023 2022 2021 Consolidated balance sheets (period end) Insurance receivable Account receivable, net $ — $ — $ 186 Consolidated statements of income – gain Property Other charges, net $ (77) $ (463) $ (1,337) Consolidated statements of cash flows Proceeds from business interruption insurance claims Operating activity $ — $ — $ 106 Proceeds from property insurance claims Investing activity $ 86 $ 648 $ 1,152 |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The fair value of the consideration transferred is as follows (in thousands): Cash $ 36,800 Notes payable 21,200 Common stock 29,933 Total consideration fair value $ 87,933 The fair value of the consideration transferred is as follows: Cash $ 25,000 Notes payable 25,500 Common stock 12,847 Total consideration fair value $ 63,347 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following is our allocation of the fair value of the acquisition price (in thousands) as of October 18, 2021: Current assets $ 386 Property and equipment 19,273 Licenses 47,390 Tradenames 6,934 Leases acquired in-place 261 Deferred tax liability (1,741) Total net assets acquired 72,503 Goodwill 15,430 Acquisition price fair value $ 87,933 The following is our allocation of the fair value of the acquisition price (in thousands) as of May 2, 2022: Current assets $ 172 Property and equipment 5,336 Licenses 4,900 Tradenames 1,460 Deferred tax liability (2,627) Total net assets acquired 9,241 Goodwill 6,759 Acquisition price fair value $ 16,000 The following is our allocation of the fair value of the acquisition price (in thousands) as of July 27, 2022: Current assets $ 71 Property and equipment 4,921 Licenses 16,810 Deferred tax liability (3,979) Total net assets acquired 17,823 Goodwill 5,577 Acquisition price fair value $ 23,400 The following is our allocation of the fair value of the acquisition price (in thousands) as of October 26, 2022: Current assets $ 64 Property and equipment 4,884 Licenses 1,170 Tradename 340 Accrued liability (95) Deferred tax liability (363) Total net assets acquired 6,000 Goodwill 2,905 Acquisition price fair value $ 8,905 The following is our allocation of the fair value of the acquisition price (in thousands) as of March 16, 2023: Current assets $ 632 Property and equipment 16,570 Licenses 36,110 Tradename 6,328 Accounts payable (632) Total net assets acquired 59,008 Goodwill 4,339 Acquisition price fair value $ 63,347 |
Schedule of Unaudited Pro Forma Combined Results of Operations | The following table presents the unaudited pro forma combined results of operations of the Company and the five acquired clubs and related assets in the March 16, 2023 acquisition transaction above as though the acquisition occurred at the beginning of fiscal 2022 (in thousands, except per share amount and number of shares): 2023 2022 Pro forma revenues $ 306,729 $ 291,764 Pro forma net income attributable to RCIHH common stockholders $ 28,329 $ 51,198 Pro forma earnings per share - basic and diluted $ 3.01 $ 5.34 Pro forma weighted average number of common shares outstanding - basic and diluted 9,426,942 9,583,445 |
Quarterly Results of Operatio_2
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | The following tables summarize unaudited quarterly data for fiscal 2023, 2022, and 2021 (in thousands, except share and per share data): For the Three Months Ended December 31, 2022 March 31, June 30, September 30, 2023 Revenues (1) $ 69,968 $ 71,517 $ 77,055 $ 75,250 Income from operations (1) $ 16,898 $ 13,427 $ 15,515 $ 5,644 Net income attributable to RCIHH stockholders (1) $ 10,238 $ 7,732 $ 9,085 $ 2,191 Earnings per share (1) Basic and diluted $ 1.11 $ 0.83 $ 0.96 $ 0.23 Weighted average number of common shares outstanding Basic and diluted 9,230,258 9,265,781 9,430,225 9,417,166 Dividends per share declared and paid $ 0.05 $ 0.06 $ 0.06 $ 0.06 For the Three Months Ended December 31, 2021 March 31, June 30, September 30, 2022 Revenues (2) $ 61,836 $ 63,692 $ 70,714 $ 71,378 Income from operations (2) $ 15,911 $ 17,081 $ 20,507 $ 17,960 Net income attributable to RCIHH stockholders (2) $ 10,575 $ 10,952 $ 13,902 $ 10,612 Earnings per share (2) Basic and diluted $ 1.12 $ 1.15 $ 1.48 $ 1.15 Weighted average number of common shares outstanding Basic and diluted 9,407,519 9,489,085 9,389,675 9,249,864 Dividends per share declared and paid $ 0.04 $ 0.05 $ 0.05 $ 0.05 For the Three Months Ended December 31, 2020 March 31, June 30, September 30, 2021 Revenues $ 38,398 $ 44,059 $ 57,860 $ 54,941 Income from operations (3) $ 6,583 $ 9,841 $ 18,507 $ 3,617 Net income attributable to RCIHH stockholders (3) $ 9,643 $ 6,091 $ 12,302 $ 2,300 Earnings per share (3) Basic and diluted $ 1.07 $ 0.68 $ 1.37 $ 0.26 Weighted average number of common shares outstanding Basic and diluted 9,019,088 8,999,910 8,999,910 8,999,910 Dividends per share declared and paid $ 0.04 $ 0.04 $ 0.04 $ 0.04 (1) Fiscal year 2023 results of operations mainly impacted by the six newly acquired clubs and the lower same-store sales. Net income attributable to RCIHH stockholders and earnings per share were impacted by $12.6 million in asset impairments ($662,000 in the second quarter, $2.6 million in the third quarter, and $9.3 million in the fourth quarter) and $3.8 million in lawsuit settlements ($3.1 million in the second quarter, $63,000 in the third quarter, and $576,000 in the fourth quarter). Quarterly effective income tax expense (benefit) rate was 22.8%, 21.8%, 20.1%, and (39.6)% from first to fourth quarter, respectively, including the impact of the release of a $176,000 deferred tax asset valuation allowance and the pretax loss in the fourth quarter. (2) Fiscal year 2022 results of operations were significantly higher than prior year due to the fifteen acquired clubs and one new Bombshells. Net income attributable to RCIHH stockholders and earnings per share were impacted by $1.9 million in asset impairments ($1.7 million in the third quarter and $166,000 in the fourth quarter) and $2.4 million gain on sale or disposition of businesses and assets ($342,000 in the first quarter, $58,000 in the second quarter, $266,000 in the third quarter, and $1.7 million in the fourth quarter). Quarterly effective income tax expense rate was 21.7%, 23.4%, 21.3%, and 27.1% from first to fourth quarter, respectively, including the impact of the $343,000 deferred tax asset valuation allowance in the fourth quarter. (3) Fiscal year 2021 revenues were significantly higher compared to prior year, except for the first quarter, which was still affected by the lockdowns and social restrictions of the COVID-19 pandemic. Net income attributable to RCIHH stockholders and earnings per share were heavily impacted by the gain on debt extinguishment ($4.9 million in the first quarter and $380,000 in the second quarter), asset impairments totaling $13.6 million ($1.4 million in the second quarter, $271,000 in the third quarter, and $11.9 million in the fourth quarter), and gain on insurance totaling $1.3 million ($197,000 in the first quarter, $12,000 in the second quarter, and $1.0 million in the fourth quarter). Quarterly effective income tax expense (benefit) rate was (4.2)%, 24.3%, 24.4%, and (210.4)% from first to fourth quarter, respectively, including the impact of the release of a $462,000 deferred tax asset valuation allowance in the fourth quarter. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Below is the financial information related to the Company’s reportable segments (in thousands): 2023 2022 2021 Revenues (from external customers) Nightclubs $ 236,748 $ 206,251 $ 137,348 Bombshells 55,723 59,925 56,621 Other 1,319 1,444 1,289 $ 293,790 $ 267,620 $ 195,258 Income (loss) from operations Nightclubs $ 73,187 $ 82,798 $ 43,815 Bombshells 6,502 11,504 13,264 Other (1,446) 57 35 General corporate (26,759) (22,900) (18,566) $ 51,484 $ 71,459 $ 38,548 Capital expenditures Nightclubs $ 11,840 $ 17,477 $ 6,890 Bombshells 16,578 3,586 5,895 Other 8,400 841 157 General corporate 3,566 2,099 569 $ 40,384 $ 24,003 $ 13,511 Depreciation and amortization Nightclubs $ 10,871 $ 9,604 $ 5,494 Bombshells 2,574 1,783 1,824 Other 495 85 87 General corporate 1,211 919 833 $ 15,151 $ 12,391 $ 8,238 September 30, 2023 September 30, 2022 Total assets Nightclubs $ 483,563 $ 437,096 Bombshells 85,215 62,021 Other 6,936 2,635 General corporate 35,170 28,986 $ 610,884 $ 530,738 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Schedule of Future Maturities of Lease Liabilities | Future maturities of operating lease liabilities as of September 30, 2023 are as follows (in thousands): Principal Interest Total October 2023 - September 2024 $ 2,977 $ 2,056 $ 5,033 October 2024 - September 2025 3,227 1,881 5,108 October 2025 - September 2026 3,516 1,691 5,207 October 2026 - September 2027 3,532 1,487 5,019 October 2027 - September 2028 2,982 1,300 4,282 Thereafter 21,918 4,630 26,548 $ 38,152 $ 13,045 $ 51,197 |
Schedule of Lease Expense | Total lease expense under ASC 842 was included in selling, general and administrative expenses in our consolidated statement of income, except for sublease income which was included in other revenue, for the years ended September 30, 2023, 2022, and 2021 as follows (in thousands): 2023 2022 2021 Operating lease expense – fixed payments $ 5,166 $ 4,738 $ 3,325 Variable lease expense 1,629 1,397 349 Short-term equipment and other lease expense (includes $357, $258 and $298 recorded in advertising and marketing for fiscal 2023, 2022, and 2021, respectively, and $557, $435 and $397 recorded in repairs and maintenance, respectively; see Note 4 ) 1,325 1,264 955 Sublease income — (4) (6) Total lease expense, net $ 8,120 $ 7,395 $ 4,623 Other information: Operating cash outflows from operating leases $ 7,949 $ 7,200 $ 4,522 Weighted average remaining lease term 10.5 years 11 years 12 years Weighted average discount rate 5.8 % 5.6 % 6.0 % |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) shares in Millions | 12 Months Ended | ||
Sep. 30, 2023 USD ($) ventureProject club reporting_unit shares | Sep. 30, 2022 USD ($) bombshell reporting_unit club shares | Sep. 30, 2021 USD ($) club reporting_unit | |
Property, Plant and Equipment [Line Items] | |||
Interest expense related debt | $ 0 | $ 0 | $ 0 |
Number of reporting units related to goodwill impairment | reporting_unit | 4 | 1 | 7 |
Goodwill impairment loss | $ 4,239,000 | $ 566,000 | $ 6,300,000 |
Impairment long lived asset held for use statement of income or comprehensive income extensible enumeration not disclosed flag | long-lived assets | long-lived assets | long-lived assets |
Number of clubs reclassified as held for sale | club | 1 | ||
Definite- lived intangibles, impairment | $ 1,813,000 | $ 0 | |
Number of venture projects related to software impairment | ventureProject | 2 | ||
Dilutive share (in share) | shares | 0.3 | 0.3 | |
One Club | |||
Property, Plant and Equipment [Line Items] | |||
Number of clubs impaired | club | 1 | ||
Long-lived assets impairment | $ 58,000 | ||
Number of clubs impaired for operating lease right-of-use assets | club | 1 | ||
Right-of-use asset impairment | $ 1,000,000 | ||
One Club and One Bombshells | |||
Property, Plant and Equipment [Line Items] | |||
Number of clubs impaired | club | 1 | ||
Long-lived assets impairment | $ 1,000,000 | ||
Number of bombshells impaired | bombshell | 1 | ||
Five Clubs | |||
Property, Plant and Equipment [Line Items] | |||
Number of clubs impaired | club | 5 | ||
Long-lived assets impairment | $ 2,000,000 | ||
SOB licenses | |||
Property, Plant and Equipment [Line Items] | |||
Impairment charges | $ 6,500,000 | $ 293,000 | $ 5,300,000 |
Number of clubs impaired | club | 8 | 1 | 3 |
Computer Software, Intangible Asset | |||
Property, Plant and Equipment [Line Items] | |||
Definite- lived intangibles, impairment | $ 814,000 | ||
Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Conversion of account receivable | 2 days | ||
Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Conversion of account receivable | 5 days | ||
Building | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 29 years | ||
Building | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 40 years | ||
Furniture and Equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 5 years | ||
Furniture and Equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 7 years | ||
Accounts Receivable | |||
Property, Plant and Equipment [Line Items] | |||
Allowance for doubtful accounts | $ 62,000 | $ 30,000 | |
Notes Receivable | |||
Property, Plant and Equipment [Line Items] | |||
Allowance for doubtful accounts | $ 0 | $ 0 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Estimated Fair Value of Options Valuation Assumptions (Details) | 12 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Expected term (in years) | 4 years 5 months 12 days |
Expected volatility | 64.42% |
Expected dividend yield | 0.20% |
Risk-free rate | 3.23% |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Assets and Liabilities Measured at Fair Value on Nonrecurring Basis (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Property and equipment | $ 21,454 | $ 32,904 | |
Property and equipment | 3,432 | ||
Indefinite-lived intangibles | 43,948 | 50,454 | |
Indefinite-lived intangibles | 2,996 | ||
Definite-lived intangibles | 8,220 | 27,986 | |
Goodwill | 6,881 | 20,608 | |
Goodwill | 1,084 | 663 | |
Current assets | 696 | 681 | |
Goodwill | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Unrealized Gain (Loss/Impairments) Recognized | (4,239) | (566) | $ (6,307) |
Property and equipment | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Unrealized Gain (Loss/Impairments) Recognized | (58) | (1,029) | (2,202) |
Indefinite-lived intangibles | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Unrealized Gain (Loss/Impairments) Recognized | (5,516) | (293) | (5,296) |
Definite-lived intangibles | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Unrealized Gain (Loss/Impairments) Recognized | (1,813) | 0 | 0 |
Operating lease right-of-use assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Unrealized Gain (Loss/Impairments) Recognized | (1,003) | 0 | 0 |
Other assets (equity securities) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Unrealized Gain (Loss/Impairments) Recognized | 0 | 0 | $ (84) |
Quoted Prices in Active Markets for Identical Asset (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Property and equipment | 0 | 0 | |
Property and equipment | 0 | ||
Indefinite-lived intangibles | 0 | 0 | |
Indefinite-lived intangibles | 0 | ||
Definite-lived intangibles | 0 | 0 | |
Goodwill | 0 | 0 | |
Goodwill | 0 | 0 | |
Current assets | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Property and equipment | 0 | 0 | |
Property and equipment | 0 | ||
Indefinite-lived intangibles | 0 | 0 | |
Indefinite-lived intangibles | 0 | ||
Definite-lived intangibles | 0 | 0 | |
Goodwill | 0 | 0 | |
Goodwill | 0 | 0 | |
Current assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Property and equipment | 21,454 | 32,904 | |
Property and equipment | 3,432 | ||
Indefinite-lived intangibles | 43,948 | 50,454 | |
Indefinite-lived intangibles | 2,996 | ||
Definite-lived intangibles | 8,220 | 27,986 | |
Goodwill | 6,881 | 20,608 | |
Goodwill | 1,084 | 663 | |
Current assets | $ 696 | $ 681 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Schedule of Significant Unobservable Inputs Used in Level 3 Fair Value Measurement (Details) - Significant Unobservable Inputs (Level 3) | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 |
Property and equipment | Discounted cash flow | EBITDA multiple | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Asset fair value, measurement input | 1 | 9 | 8 |
Property and equipment | Discounted cash flow | EBITDA multiple | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Asset fair value, measurement input | 12 | 10 | 8 |
Property and equipment | Discounted cash flow | EBITDA multiple | Weighted Average | |||
Property, Plant and Equipment [Line Items] | |||
Asset fair value, measurement input | 11 | 10 | 8 |
Property and equipment | Discounted cash flow | Revenue/EBITDA growth rate | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Asset fair value, measurement input | 0 | 0 | 0 |
Property and equipment | Discounted cash flow | Revenue/EBITDA growth rate | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Asset fair value, measurement input | 0.025 | 0.025 | 0.025 |
Property and equipment | Discounted cash flow | Revenue/EBITDA growth rate | Weighted Average | |||
Property, Plant and Equipment [Line Items] | |||
Asset fair value, measurement input | 0.0125 | 0.015 | 0.01 |
Property and equipment | Discounted cash flow | Weighted average cost of capital | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Asset fair value, measurement input | 0.11 | 0.125 | 0.13 |
Property and equipment | Discounted cash flow | Weighted average cost of capital | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Asset fair value, measurement input | 0.11 | 0.125 | 0.17 |
Property and equipment | Discounted cash flow | Weighted average cost of capital | Weighted Average | |||
Property, Plant and Equipment [Line Items] | |||
Asset fair value, measurement input | 0.110 | 0.125 | 0.15 |
Goodwill | Discounted cash flow | EBITDA multiple | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Asset fair value, measurement input | 9 | 8 | 8 |
Goodwill | Discounted cash flow | EBITDA multiple | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Asset fair value, measurement input | 12 | 10 | 8 |
Goodwill | Discounted cash flow | EBITDA multiple | Weighted Average | |||
Property, Plant and Equipment [Line Items] | |||
Asset fair value, measurement input | 12 | 9 | 8 |
Goodwill | Discounted cash flow | Revenue/EBITDA growth rate | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Asset fair value, measurement input | 0 | 0 | 0 |
Goodwill | Discounted cash flow | Revenue/EBITDA growth rate | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Asset fair value, measurement input | 0.025 | 0.025 | 0.025 |
Goodwill | Discounted cash flow | Revenue/EBITDA growth rate | Weighted Average | |||
Property, Plant and Equipment [Line Items] | |||
Asset fair value, measurement input | 0.025 | 0.015 | 0.01 |
Goodwill | Discounted cash flow | Weighted average cost of capital | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Asset fair value, measurement input | 0.11 | 0.125 | 0.13 |
Goodwill | Discounted cash flow | Weighted average cost of capital | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Asset fair value, measurement input | 0.11 | 0.125 | 0.17 |
Goodwill | Discounted cash flow | Weighted average cost of capital | Weighted Average | |||
Property, Plant and Equipment [Line Items] | |||
Asset fair value, measurement input | 0.11 | 0.125 | 0.15 |
SOB licenses | Multiperiod excess earnings | EBITDA multiple | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Asset fair value, measurement input | 12 | 9 | 8 |
SOB licenses | Multiperiod excess earnings | EBITDA multiple | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Asset fair value, measurement input | 10 | 8 | |
SOB licenses | Multiperiod excess earnings | EBITDA multiple | Weighted Average | |||
Property, Plant and Equipment [Line Items] | |||
Asset fair value, measurement input | 12 | 10 | 8 |
SOB licenses | Multiperiod excess earnings | Revenue/EBITDA growth rate | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Asset fair value, measurement input | 0 | 0 | 0 |
SOB licenses | Multiperiod excess earnings | Revenue/EBITDA growth rate | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Asset fair value, measurement input | 0.025 | 0.025 | |
SOB licenses | Multiperiod excess earnings | Revenue/EBITDA growth rate | Weighted Average | |||
Property, Plant and Equipment [Line Items] | |||
Asset fair value, measurement input | 0.025 | 0.015 | 0.01 |
SOB licenses | Multiperiod excess earnings | Weighted average cost of capital | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Asset fair value, measurement input | 0.11 | 0.125 | 0.13 |
SOB licenses | Multiperiod excess earnings | Weighted average cost of capital | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Asset fair value, measurement input | 0.11 | 0.125 | 0.17 |
SOB licenses | Multiperiod excess earnings | Weighted average cost of capital | Weighted Average | |||
Property, Plant and Equipment [Line Items] | |||
Asset fair value, measurement input | 0.11 | 0.125 | 0.15 |
SOB licenses | Multiperiod excess earnings | Contributory asset charges rate | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Asset fair value, measurement input | 0.10 | 0.005 | 0.014 |
SOB licenses | Multiperiod excess earnings | Contributory asset charges rate | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Asset fair value, measurement input | 0.215 | 0.074 | 0.080 |
SOB licenses | Multiperiod excess earnings | Contributory asset charges rate | Weighted Average | |||
Property, Plant and Equipment [Line Items] | |||
Asset fair value, measurement input | 0.15 | 0.023 | 0.04 |
Tradename | Relief-from-royalty method | Weighted average cost of capital | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Asset fair value, measurement input | 0.11 | 0.125 | 0.15 |
Tradename | Relief-from-royalty method | Weighted average cost of capital | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Asset fair value, measurement input | 0.11 | 0.125 | 0.15 |
Tradename | Relief-from-royalty method | Weighted average cost of capital | Weighted Average | |||
Property, Plant and Equipment [Line Items] | |||
Asset fair value, measurement input | 0.11 | 0.125 | 0.15 |
Tradename | Relief-from-royalty method | Revenue growth rate | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Asset fair value, measurement input | 0 | 0 | 0 |
Tradename | Relief-from-royalty method | Revenue growth rate | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Asset fair value, measurement input | 0.025 | 0.025 | |
Tradename | Relief-from-royalty method | Revenue growth rate | Weighted Average | |||
Property, Plant and Equipment [Line Items] | |||
Asset fair value, measurement input | 0.025 | 0.015 | 0.025 |
Tradename | Relief-from-royalty method | Terminal multiple | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Asset fair value, measurement input | 12 | 9 | 8 |
Tradename | Relief-from-royalty method | Terminal multiple | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Asset fair value, measurement input | 10 | 8 | |
Tradename | Relief-from-royalty method | Terminal multiple | Weighted Average | |||
Property, Plant and Equipment [Line Items] | |||
Asset fair value, measurement input | 12 | 9 | 8 |
Tradename | Relief-from-royalty method | Royalty rate | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Asset fair value, measurement input | 0.03 | 0.035 | |
Tradename | Relief-from-royalty method | Royalty rate | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Asset fair value, measurement input | 0.06 | 0.045 | |
Tradename | Relief-from-royalty method | Royalty rate | Weighted Average | |||
Property, Plant and Equipment [Line Items] | |||
Asset fair value, measurement input | 0.047 | 0.04 | |
Operating lease right-of-use assets | Discounted cash flow | Weighted average cost of capital | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Asset fair value, measurement input | 0.11 | 0.125 | 0.13 |
Operating lease right-of-use assets | Discounted cash flow | Weighted average cost of capital | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Asset fair value, measurement input | 0.11 | 0.125 | 0.17 |
Operating lease right-of-use assets | Discounted cash flow | Weighted average cost of capital | Weighted Average | |||
Property, Plant and Equipment [Line Items] | |||
Asset fair value, measurement input | 0.11 | 0.125 | 0.15 |
Operating lease right-of-use assets | Discounted cash flow | EBITDA growth rate | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Asset fair value, measurement input | 0.015 | 0 | 0 |
Operating lease right-of-use assets | Discounted cash flow | EBITDA growth rate | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Asset fair value, measurement input | 0.025 | 0.025 | 0.025 |
Operating lease right-of-use assets | Discounted cash flow | EBITDA growth rate | Weighted Average | |||
Property, Plant and Equipment [Line Items] | |||
Asset fair value, measurement input | 0.023 | 0.015 | 0.01 |
Business combinations | Various | Weighted average cost of capital | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Asset fair value, measurement input | 0.165 | 0.15 | |
Business combinations | Various | Weighted average cost of capital | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Asset fair value, measurement input | 0.180 | 0.195 | |
Business combinations | Various | Weighted average cost of capital | Weighted Average | |||
Property, Plant and Equipment [Line Items] | |||
Asset fair value, measurement input | 0.178 | 0.181 | |
Business combinations | Various | Contributory asset charges rate | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Asset fair value, measurement input | 0.156 | 0.085 | |
Business combinations | Various | Contributory asset charges rate | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Asset fair value, measurement input | 0.215 | 0.102 | |
Business combinations | Various | Contributory asset charges rate | Weighted Average | |||
Property, Plant and Equipment [Line Items] | |||
Asset fair value, measurement input | 0.163 | 0.093 | |
Business combinations | Various | EBITDA growth rate | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Asset fair value, measurement input | 0 | 0.025 | |
Business combinations | Various | EBITDA growth rate | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Asset fair value, measurement input | 0.112 | 0.10 | |
Business combinations | Various | EBITDA growth rate | Weighted Average | |||
Property, Plant and Equipment [Line Items] | |||
Asset fair value, measurement input | 0.055 | 0.048 | |
Business combinations | Various | Internal rate of return | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Asset fair value, measurement input | 0.165 | 0.15 | |
Business combinations | Various | Internal rate of return | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Asset fair value, measurement input | 0.300 | 0.215 | |
Business combinations | Various | Internal rate of return | Weighted Average | |||
Property, Plant and Equipment [Line Items] | |||
Asset fair value, measurement input | 0.224 | 0.194 |
Revenues - Schedule of Disaggre
Revenues - Schedule of Disaggregation of Segment Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disaggregation of Revenue [Line Items] | |||||||||||||||
Total revenues | $ 75,250 | $ 77,055 | $ 71,517 | $ 69,968 | $ 71,378 | $ 70,714 | $ 63,692 | $ 61,836 | $ 54,941 | $ 57,860 | $ 44,059 | $ 38,398 | $ 293,790 | $ 267,620 | $ 195,258 |
Recognized at a point in time | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Total revenues | 291,932 | 266,005 | 193,700 | ||||||||||||
Recognized over time | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Total revenues | 1,858 | 1,615 | 1,558 | ||||||||||||
Sales of alcoholic beverages | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Total revenues | 127,262 | 113,316 | 86,685 | ||||||||||||
Sales of food and merchandise | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Total revenues | 43,906 | 44,294 | 41,111 | ||||||||||||
Service revenues | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Total revenues | 103,577 | 93,888 | 55,461 | ||||||||||||
Other revenues | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Total revenues | 19,045 | 16,122 | 12,001 | ||||||||||||
Nightclubs | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Total revenues | 236,748 | 206,251 | 137,348 | ||||||||||||
Nightclubs | Recognized at a point in time | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Total revenues | 234,981 | 204,644 | 135,799 | ||||||||||||
Nightclubs | Recognized over time | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Total revenues | 1,767 | 1,607 | 1,549 | ||||||||||||
Nightclubs | Sales of alcoholic beverages | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Total revenues | 96,325 | 80,001 | 54,305 | ||||||||||||
Nightclubs | Sales of food and merchandise | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Total revenues | 19,995 | 18,289 | 17,221 | ||||||||||||
Nightclubs | Service revenues | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Total revenues | 103,217 | 93,481 | 55,146 | ||||||||||||
Nightclubs | Other revenues | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Total revenues | 17,211 | 14,480 | 10,676 | ||||||||||||
Bombshells | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Total revenues | 55,723 | 59,925 | 56,621 | ||||||||||||
Bombshells | Recognized at a point in time | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Total revenues | 55,677 | 59,918 | 56,617 | ||||||||||||
Bombshells | Recognized over time | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Total revenues | 46 | 7 | 4 | ||||||||||||
Bombshells | Sales of alcoholic beverages | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Total revenues | 30,937 | 33,315 | 32,380 | ||||||||||||
Bombshells | Sales of food and merchandise | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Total revenues | 23,911 | 26,005 | 23,890 | ||||||||||||
Bombshells | Service revenues | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Total revenues | 360 | 407 | 315 | ||||||||||||
Bombshells | Other revenues | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Total revenues | 515 | 198 | 36 | ||||||||||||
Other | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Total revenues | 1,319 | 1,444 | 1,289 | ||||||||||||
Other | Recognized at a point in time | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Total revenues | 1,274 | 1,443 | 1,284 | ||||||||||||
Other | Recognized over time | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Total revenues | 45 | 1 | 5 | ||||||||||||
Other | Sales of alcoholic beverages | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Total revenues | 0 | 0 | 0 | ||||||||||||
Other | Sales of food and merchandise | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Total revenues | 0 | 0 | 0 | ||||||||||||
Other | Service revenues | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Total revenues | 0 | 0 | 0 | ||||||||||||
Other | Other revenues | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Total revenues | $ 1,319 | $ 1,444 | $ 1,289 |
Revenues - Schedule of Reconcil
Revenues - Schedule of Reconciliation of Contract Liabilities with Customers (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Contract With Customer Liability [Roll Forward] | ||
Contract liabilities with customers beginning | $ 234 | $ 354 |
Consideration Received | 974 | 1,070 |
Recognized in Revenue | (1,112) | (1,190) |
Contract liabilities with customers ending | 96 | 234 |
Ad revenue | ||
Contract With Customer Liability [Roll Forward] | ||
Contract liabilities with customers beginning | 82 | 84 |
Consideration Received | 451 | 611 |
Recognized in Revenue | (484) | (613) |
Contract liabilities with customers ending | 49 | 82 |
Expo revenue | ||
Contract With Customer Liability [Roll Forward] | ||
Contract liabilities with customers beginning | 8 | 151 |
Consideration Received | 574 | 426 |
Recognized in Revenue | (581) | (569) |
Contract liabilities with customers ending | 1 | 8 |
Other | ||
Contract With Customer Liability [Roll Forward] | ||
Contract liabilities with customers beginning | 144 | 119 |
Consideration Received | (51) | 33 |
Recognized in Revenue | (47) | (8) |
Contract liabilities with customers ending | $ 46 | $ 144 |
Revenues - Narrative (Details)
Revenues - Narrative (Details) $ in Thousands | May 02, 2022 USD ($) location | Dec. 22, 2020 USD ($) location |
Revenue from Contract with Customer [Abstract] | ||
Number of locations to open | 3 | 3 |
Period of time to open new locations | 5 years | 5 years |
Number of locations for right of refusal | 3 | |
Proceeds from franchise fees received | $ | $ 50 | $ 75 |
Percent of initial franchise fee received, restaurant one | 100% | 100% |
Percent of initial franchise fee received, restaurant two | 50% |
Selected Account Information -
Selected Account Information - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Selected Account Information | ||
Credit card receivables | $ 4,141 | $ 2,687 |
Income tax refundable | 2,989 | 2,979 |
ATM-in-transit | 1,675 | 819 |
Net of allowance for doubtful accounts | 62 | 30 |
Other | 1,041 | 2,025 |
Total accounts receivable, net | $ 9,846 | $ 8,510 |
Selected Account Information _2
Selected Account Information - Narrative (Details) | 12 Months Ended |
Sep. 30, 2023 | |
Minimum | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Receivable percentage | 6% |
Notes receivable, term | 1 year |
Maximum | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Receivable percentage | 9% |
Notes receivable, term | 20 years |
Selected Account Information _3
Selected Account Information - Schedule of Components of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Selected Account Information | ||
Prepaid insurance | $ 375 | $ 191 |
Prepaid legal | 184 | 61 |
Prepaid taxes and licenses | 486 | 391 |
Prepaid rent | 346 | 296 |
Other | 552 | 560 |
Total prepaid expenses and other current assets | $ 1,943 | $ 1,499 |
Selected Account Information _4
Selected Account Information - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 |
Selected Account Information | |||
Payroll and related costs | $ 4,412 | $ 3,186 | |
Property taxes | 3,086 | 2,618 | |
Sales and liquor taxes | 2,468 | 2,227 | |
Insurance | 9 | 30 | |
Interest | 654 | 499 | |
Patron tax | 914 | 467 | |
Lawsuit settlement | 2,448 | 246 | |
Unearned revenues | 96 | 234 | $ 354 |
Other | 1,964 | 1,821 | |
Total accrued liabilities | $ 16,051 | $ 11,328 |
Selected Account Information _5
Selected Account Information - Schedule of Selling, General and Administrative Expenses (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Selected Account Information | |||
Taxes and permits | $ 11,966,000 | $ 9,468,000 | $ 8,701,000 |
Advertising and marketing | 11,928,000 | 9,860,000 | 6,676,000 |
Supplies and services | 10,724,000 | 8,614,000 | 6,190,000 |
Insurance | 10,268,000 | 10,152,000 | 5,676,000 |
Lease | 7,206,000 | 6,706,000 | 3,942,000 |
Legal | 3,742,000 | 1,995,000 | 3,997,000 |
Utilities | 5,760,000 | 4,585,000 | 3,366,000 |
Charge cards fees | 7,090,000 | 6,292,000 | 3,376,000 |
Security | 5,618,000 | 4,404,000 | 3,892,000 |
Accounting and professional fees | 4,286,000 | 3,909,000 | 2,031,000 |
Repairs and maintenance | 4,924,000 | 3,754,000 | 2,767,000 |
Stock-based compensation | 2,588,000 | 2,353,000 | 0 |
Other | 6,924,000 | 6,755,000 | 3,994,000 |
Total selling, general and administrative expenses | $ 93,024,000 | $ 78,847,000 | $ 54,608,000 |
Selected Account Information _6
Selected Account Information - Schedule of Components of Other Charges, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Selected Account Information | ||||||||||||||
Impairment of assets | $ 9,300 | $ 2,600 | $ 662 | $ 166 | $ 1,700 | $ 11,900 | $ 271 | $ 1,400 | $ 12,629 | $ 1,888 | $ 13,612 | |||
Settlement of lawsuits | $ 576 | $ 63 | $ 3,100 | 3,759 | 1,417 | 1,349 | ||||||||
Gain on sale of businesses and assets | $ (1,700) | $ (266) | $ (58) | $ (342) | (682) | (2,375) | (522) | |||||||
Gain on insurance | $ (1,000) | $ (12) | $ (197) | (77) | (463) | (1,253) | ||||||||
Other charges, net | $ 15,629 | $ 467 | $ 13,186 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 363,556 | $ 295,192 |
Less accumulated depreciation | (80,851) | (70,577) |
Property and equipment, net | 282,705 | 224,615 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 95,018 | 78,116 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 204,947 | 159,037 |
Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 49,632 | 45,648 |
Furniture | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 13,959 | $ 12,391 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Construction in progress, gross | $ 7,700 | $ 1,500 | |
Depreciation expense | 11,600 | 10,300 | $ 8,000 |
Impairment loss of property and equipment | $ 58 | $ 1,000 | $ 2,000 |
Assets Held for Sale (Details)
Assets Held for Sale (Details) | 12 Months Ended | ||||||
Aug. 03, 2023 USD ($) | Jun. 29, 2023 USD ($) | Dec. 28, 2022 USD ($) | Jul. 12, 2022 USD ($) | Oct. 08, 2021 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) property | |
Property, Plant and Equipment [Abstract] | |||||||
Number of properties held for sale | property | 1 | ||||||
Real estate held-for-sale | $ 1,100,000 | $ 1,000,000 | |||||
Real estate held-for-sale, associated liabilities | $ 0 | ||||||
Real estate, land, held-for-sale | $ 1,049,000 | ||||||
Proceeds from sale of property held-for-sale | $ 2,900,000 | 1,500,000 | 1,700,000 | $ 300,000 | |||
Portion of proceeds from sale of property used to pay off the loan related to the property | $ 904,000 | $ 1,200,000 | $ 2,100,000 | ||||
Estimated fair value of properties lease cost | $ 0 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 |
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | $ 70,772 | $ 67,767 | $ 39,379 |
Indefinite-lived intangibles | 155,546 | 117,114 | 67,424 |
Indefinite-lived intangible assets, net | 226,318 | 184,881 | |
Definite-lived intangibles, net | 23,599 | 26,935 | $ 400 |
Total goodwill and other intangible assets | 249,917 | 211,816 | |
Discounted leases | |||
Finite-Lived Intangible Assets [Line Items] | |||
Definite-lived intangibles, net | $ 811 | 78 | |
Non-compete agreements | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization Period | 5 years | ||
Definite-lived intangibles, net | $ 3 | 55 | |
Software | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization Period | 5 years | ||
Definite-lived intangibles, net | $ 55 | 723 | |
Licenses | |||
Finite-Lived Intangible Assets [Line Items] | |||
Definite-lived intangibles, net | 22,597 | 25,962 | |
Leases acquired in-place | |||
Finite-Lived Intangible Assets [Line Items] | |||
Definite-lived intangibles, net | 133 | 117 | |
Licenses | |||
Finite-Lived Intangible Assets [Line Items] | |||
Indefinite-lived intangibles | 135,735 | 103,972 | |
Tradename | |||
Finite-Lived Intangible Assets [Line Items] | |||
Indefinite-lived intangibles | $ 19,811 | $ 13,142 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Schedule of Indefinite-lived, Definite-lived Intangible Assets and Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Definite- Lived Intangibles | |||
Beginning balance | $ 26,935 | $ 400 | |
Acquisitions | $ 2,005 | $ 28,653 | |
Impairment of intangible asset indefinite lived excluding goodwill statement of income or comprehensive income extensible enumeration not disclosed flag | Impairment | Impairment | |
Impairment | $ (1,813) | $ 0 | |
Dispositions | 0 | 0 | |
Amortization | (3,528) | (2,118) | |
Ending balance | 23,599 | 26,935 | $ 400 |
Indefinite- Lived Intangibles | |||
Beginning balance | 117,114 | 67,424 | |
Acquisitions | 43,948 | 50,453 | |
Impairment | (5,516) | (293) | |
Dispositions | 0 | (470) | |
Ending balance | 155,546 | 117,114 | 67,424 |
Goodwill | |||
Beginning balance | 67,767 | 39,379 | |
Acquisitions | 7,244 | 28,954 | |
Impairment | (4,239) | (566) | (6,300) |
Dispositions | 0 | 0 | |
Ending balance | $ 70,772 | $ 67,767 | $ 39,379 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Definite-lived intangible assets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Licenses | $ 27,725 | $ 27,725 | |
Software | 2,332 | 1,671 | |
Leases acquired in-place | 826 | 261 | |
Discounted leases | 1,076 | 297 | |
Non-compete agreements | 1,100 | 1,100 | |
Distribution agreements | 317 | 317 | |
Total definite-lived intangibles | 33,376 | 31,371 | |
Less accumulated amortization and impairment | (9,777) | (4,436) | |
Definite-lived intangibles, net | $ 23,599 | $ 26,935 | $ 400 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 USD ($) club reporting_unit | Sep. 30, 2022 USD ($) club reporting_unit | Sep. 30, 2021 USD ($) club reporting_unit | |
Finite-Lived Intangible Assets [Line Items] | |||
Accumulated impairment, indefinite-lived intangibles | $ 16,900 | $ 11,400 | |
Accumulated impairment, goodwill | 25,400 | 21,200 | |
Goodwill, gross | 96,200 | 88,900 | |
Finite-lived intangible asset, expected amortization, year one | 2,500 | ||
Finite-lived intangible asset, expected amortization, year two | 2,400 | ||
Finite-lived intangible asset, expected amortization, year three | 2,400 | ||
Finite-lived intangible asset, expected amortization, year four | 2,300 | ||
Finite-lived intangible asset, expected amortization, year five | 1,500 | ||
Finite-lived intangible asset, expected amortization, after year five | 12,500 | ||
Impairment | 5,516 | 293 | |
Goodwill impairment loss | $ 4,239 | $ 566 | $ 6,300 |
Number of reporting units related to goodwill impairment | reporting_unit | 4 | 1 | 7 |
Impairment of intangible asset indefinite lived excluding goodwill statement of income or comprehensive income extensible enumeration not disclosed flag | impairment | ||
SOB licenses | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment | $ 6,500 | $ 293 | $ 5,300 |
Number of clubs related to indefinite-lived intangibles impairment | club | 8 | 1 | 3 |
Debt - Schedule of Long-term De
Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 | Nov. 08, 2021 |
Debt Instrument [Line Items] | |||
Debt interest rate | 4% | ||
Total debt | $ 242,667 | $ 205,840 | |
Less unamortized debt discount and issuance costs | (2,916) | (3,377) | |
Less current portion | (22,843) | (11,896) | |
Total long-term portion of debt, net | $ 216,908 | 190,567 | |
Notes payable at 5.5%, fully paid in January 2023 | |||
Debt Instrument [Line Items] | |||
Debt interest rate | 5.50% | ||
Total debt | $ 0 | 678 | |
Note payable at 8%, matures October 2027, as amended | |||
Debt Instrument [Line Items] | |||
Debt interest rate | 8% | ||
Total debt | $ 3,025 | 3,025 | |
Note payable at 8%, matures May 2029 | |||
Debt Instrument [Line Items] | |||
Debt interest rate | 8% | ||
Total debt | $ 9,180 | 10,412 | |
Note payable at 5.99%, matures September 2033, as amended | |||
Debt Instrument [Line Items] | |||
Debt interest rate | 5.99% | ||
Total debt | $ 5,351 | 5,731 | |
Note payable at 5.49%, matures March 2039, as amended | |||
Debt Instrument [Line Items] | |||
Debt interest rate | 5.49% | ||
Total debt | $ 1,937 | 2,008 | |
Note payable at 5.25%, matures September 2031 | |||
Debt Instrument [Line Items] | |||
Debt interest rate | 5.25% | ||
Total debt | $ 87,937 | 92,062 | |
Notes payable at 12%, matures October 2024 | |||
Debt Instrument [Line Items] | |||
Debt interest rate | 12% | ||
Total debt | $ 9,500 | 9,500 | |
Notes payable at 12%, matures October 2024 | |||
Debt Instrument [Line Items] | |||
Debt interest rate | 12% | ||
Total debt | $ 3,331 | 3,561 | |
Notes payable at 12%, matures October 2024 | |||
Debt Instrument [Line Items] | |||
Debt interest rate | 12% | ||
Total debt | $ 3,331 | 3,561 | |
Note payable at 5.25% matures October 2031 | |||
Debt Instrument [Line Items] | |||
Debt interest rate | 5.25% | ||
Total debt | $ 1,136 | 1,172 | |
Note payable at 6% matures October 2031 | |||
Debt Instrument [Line Items] | |||
Debt interest rate | 6% | ||
Total debt | $ 9,459 | 10,321 | |
Note payable at 6% matures October 2041 | |||
Debt Instrument [Line Items] | |||
Debt interest rate | 6% | ||
Total debt | $ 7,611 | 7,828 | |
Note payable at 6% matures October 2041 | |||
Debt Instrument [Line Items] | |||
Debt interest rate | 6% | ||
Total debt | $ 950 | 978 | |
Note payable at 4% matures November 2028 | |||
Debt Instrument [Line Items] | |||
Debt interest rate | 4% | ||
Total debt | $ 764 | 895 | |
Note payable at 5.25% matures January 2032 | |||
Debt Instrument [Line Items] | |||
Debt interest rate | 5.25% | ||
Total debt | $ 16,622 | 18,391 | |
Note payable at 4.25% matures February 2043 | |||
Debt Instrument [Line Items] | |||
Debt interest rate | 4.25% | ||
Total debt | $ 2,583 | 2,625 | |
Note payable at 10% matures May 2025 | |||
Debt Instrument [Line Items] | |||
Debt interest rate | 10% | ||
Total debt | $ 5,501 | 5,881 | |
Note payable at 10% matures May 2032 | |||
Debt Instrument [Line Items] | |||
Debt interest rate | 10% | ||
Total debt | $ 5,000 | 5,000 | |
Note payable at 5% matures November 2023 | |||
Debt Instrument [Line Items] | |||
Debt interest rate | 5% | ||
Total debt | $ 2,195 | 2,195 | |
Note payable at 6% matures July 2029 | |||
Debt Instrument [Line Items] | |||
Debt interest rate | 6% | ||
Total debt | $ 690 | 785 | |
Note payable at 6% matures July 2032 | |||
Debt Instrument [Line Items] | |||
Debt interest rate | 6% | ||
Total debt | $ 9,119 | 9,880 | |
Note payable at 6% matures August 2032 | |||
Debt Instrument [Line Items] | |||
Debt interest rate | 6% | ||
Total debt | $ 4,592 | 4,970 | |
Note payable at 5.25% matures February 2024 | |||
Debt Instrument [Line Items] | |||
Debt interest rate | 5.25% | ||
Total debt | $ 1,575 | 1,575 | |
Note payable at 4.79% matures October 2042 | |||
Debt Instrument [Line Items] | |||
Debt interest rate | 4.79% | ||
Total debt | $ 2,731 | 2,806 | |
Note payable initially at 6% matures April 2024 | |||
Debt Instrument [Line Items] | |||
Debt interest rate | 6% | ||
Total debt | $ 2,259 | 0 | |
Note payable at 6% matures October 2037 | |||
Debt Instrument [Line Items] | |||
Debt interest rate | 6% | ||
Total debt | $ 4,708 | 0 | |
Note payable initially at 6% matures May 2024 | |||
Debt Instrument [Line Items] | |||
Debt interest rate | 6% | ||
Total debt | $ 1,500 | 0 | |
Note payable at 6.67% matures January 2028 | |||
Debt Instrument [Line Items] | |||
Debt interest rate | 6.67% | ||
Total debt | $ 3,302 | 0 | |
Notes payable at 7% matures February 2025 | |||
Debt Instrument [Line Items] | |||
Debt interest rate | 7% | ||
Total debt | $ 1,801 | 0 | |
Notes payable at 7% matures March 2033 | |||
Debt Instrument [Line Items] | |||
Debt interest rate | 7% | ||
Total debt | $ 24,603 | 0 | |
Note payable initially at 8.75% matures March 2025 | |||
Debt Instrument [Line Items] | |||
Debt interest rate | 8.75% | ||
Total debt | $ 7,500 | 0 | |
Note payable initially at 7.12% matures June 2028 | |||
Debt Instrument [Line Items] | |||
Debt interest rate | 7.12% | ||
Total debt | $ 2,874 | $ 0 |
Debt - Schedule of Long-term _2
Debt - Schedule of Long-term Debt Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Debt Instrument [Line Items] | ||
Total debt | $ 242,667 | $ 205,840 |
Secured Debt | Secured By Real Estate | ||
Debt Instrument [Line Items] | ||
Total debt | 136,107 | 122,990 |
Secured Debt | Secured By Stock In Subsidiary | ||
Debt Instrument [Line Items] | ||
Total debt | 72,879 | 55,005 |
Secured Debt | Secured By Other Assets | ||
Debt Instrument [Line Items] | ||
Total debt | 10,019 | 10,545 |
Unsecured Debt | ||
Debt Instrument [Line Items] | ||
Total debt | $ 23,662 | $ 17,300 |
Debt - Narrative (Details)
Debt - Narrative (Details) | 1 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||
Jun. 20, 2023 USD ($) | Jun. 18, 2023 USD ($) | Mar. 16, 2023 USD ($) club monthly_installment property note | Mar. 09, 2023 USD ($) | Feb. 07, 2023 USD ($) note | Dec. 20, 2022 USD ($) monthly_installment | Nov. 18, 2022 USD ($) monthly_installment | Oct. 26, 2022 USD ($) monthly_installment | Oct. 10, 2022 USD ($) monthly_installment | Sep. 23, 2022 USD ($) monthly_installment | Aug. 18, 2022 USD ($) | Jul. 27, 2022 USD ($) monthly_installment note | Jul. 21, 2022 USD ($) monthly_installment | May 23, 2022 USD ($) | May 02, 2022 USD ($) monthly_installment note | Mar. 01, 2022 USD ($) | Jan. 25, 2022 USD ($) property | Nov. 08, 2021 USD ($) | Oct. 18, 2021 USD ($) monthly_installment note club property | Oct. 12, 2021 USD ($) investor | Sep. 30, 2021 USD ($) club | Dec. 11, 2018 USD ($) | Dec. 07, 2017 USD ($) | May 08, 2017 USD ($) note | Nov. 30, 2021 USD ($) | Jan. 31, 2012 USD ($) | Sep. 30, 2023 USD ($) club note | Sep. 30, 2022 USD ($) club | Sep. 30, 2021 USD ($) | Oct. 31, 2021 USD ($) | May 31, 2017 USD ($) | |
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Notes payable | $ 13,669 | ||||||||||||||||||||||||||||||
Debt instrument term | 7 years | ||||||||||||||||||||||||||||||
Installment amount | $ 18,298 | ||||||||||||||||||||||||||||||
Debt interest rate | 4% | ||||||||||||||||||||||||||||||
Face amount | $ 1,000,000 | ||||||||||||||||||||||||||||||
Purchase value of aircraft | $ 2,800,000 | ||||||||||||||||||||||||||||||
Acquire productive assets | 554,000 | ||||||||||||||||||||||||||||||
Remaining amount to be paid for purchase of aircraft | $ 2,200,000 | ||||||||||||||||||||||||||||||
Number of clubs acquired | club | 11 | 6 | 15 | ||||||||||||||||||||||||||||
Interest expense related debt | $ 0 | $ 0 | $ 0 | ||||||||||||||||||||||||||||
Number of seller-financed notes | note | 2 | 4 | |||||||||||||||||||||||||||||
Number of monthly installments | monthly_installment | 240 | ||||||||||||||||||||||||||||||
Debt instrument, periodic payment, principal | $ 85,000 | ||||||||||||||||||||||||||||||
Number of real estate properties securing note | property | 11 | ||||||||||||||||||||||||||||||
Executed seller-financed notes totaling | $ 11,000,000 | ||||||||||||||||||||||||||||||
Payments of loan costs | $ 239,000 | $ 463,000 | $ 1,174,000 | ||||||||||||||||||||||||||||
Payments to acquire real estate | $ 3,500,000 | ||||||||||||||||||||||||||||||
Number of real estate properties acquired | property | 6 | ||||||||||||||||||||||||||||||
Real Estate in Huntsville, Alabama | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Consideration transferred | $ 2,100,000 | ||||||||||||||||||||||||||||||
Payments to acquire real estate | $ 525,000 | ||||||||||||||||||||||||||||||
Food Hall Property In Greenwood Village, Colorado | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Consideration transferred | $ 5,300,000 | ||||||||||||||||||||||||||||||
Real Estate In Denver, Colorado | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Consideration transferred | $ 4,600,000 | ||||||||||||||||||||||||||||||
Unsecured Debt | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument term | 10 years | 10 years | |||||||||||||||||||||||||||||
Debt interest rate | 12% | 12% | |||||||||||||||||||||||||||||
Face amount | $ 17,000,000 | ||||||||||||||||||||||||||||||
Number of investors | investor | 28 | ||||||||||||||||||||||||||||||
Unsecured Debt | Debt Instrument, Redemption, Period One | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Face amount | $ 9,500,000 | $ 9,100,000 | |||||||||||||||||||||||||||||
Unsecured Debt | Debt Instrument, Redemption, Period Two | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Face amount | 7,500,000 | 6,600,000 | $ 7,500,000 | ||||||||||||||||||||||||||||
Notes Payable to Banks | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument term | 18 months | 18 months | 11 months | 18 months | 21 years | 10 years | |||||||||||||||||||||||||
Debt interest rate | 4.79% | 5.25% | |||||||||||||||||||||||||||||
Face amount | $ 1,500,000 | $ 2,300,000 | $ 2,800,000 | $ 1,600,000 | $ 2,200,000 | $ 2,600,000 | $ 18,700,000 | ||||||||||||||||||||||||
Interest rate, term | 5 years | 5 years | |||||||||||||||||||||||||||||
Debt instrument, amortization period of interest | 20 years | ||||||||||||||||||||||||||||||
Debt issuance costs | $ 26,000 | ||||||||||||||||||||||||||||||
Number of seller-financed notes | note | 2 | ||||||||||||||||||||||||||||||
Number of monthly installments | monthly_installment | 17 | 17 | |||||||||||||||||||||||||||||
Debt instrument, periodic payment, principal | $ 16,338 | $ 126,265 | |||||||||||||||||||||||||||||
Long-term debt, term | 10 years | ||||||||||||||||||||||||||||||
Interest payable, term one | 17 months | 12 months | |||||||||||||||||||||||||||||
Principal and interest payable, term two | 48 months | ||||||||||||||||||||||||||||||
Principal and interest payable, term three | 191 months | ||||||||||||||||||||||||||||||
Payments of loan costs | $ 25,000 | ||||||||||||||||||||||||||||||
Notes Payable to Banks | Real Estate in Huntsville, Alabama | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Face amount | $ 1,600,000 | ||||||||||||||||||||||||||||||
Line of Credit | Revolving Credit Facility | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument term | 24 months | ||||||||||||||||||||||||||||||
Face amount | $ 10,000,000 | ||||||||||||||||||||||||||||||
Debt issuance costs | 115,000 | ||||||||||||||||||||||||||||||
Letters of credit outstanding, amount | 10,000,000 | ||||||||||||||||||||||||||||||
Debt instrument, principal balance threshold for revolver feature | 5,000,000 | ||||||||||||||||||||||||||||||
Maximum borrowing capacity | $ 5,000,000 | ||||||||||||||||||||||||||||||
Line of credit facility, unused capacity, commitment fee percentage | 0.50% | ||||||||||||||||||||||||||||||
Line of credit facility, average outstanding amount, threshold for non-usage fee | $ 3,000,000 | ||||||||||||||||||||||||||||||
Line of credit facility, aggregate advances amount, threshold for non-usage fee | $ 3,000,000 | ||||||||||||||||||||||||||||||
Debt issuance costs, amortization period | 24 months | ||||||||||||||||||||||||||||||
Compensating balance, amount | $ 3,000,000 | ||||||||||||||||||||||||||||||
Debt instrument, covenant, required minimum tangible net worth | $ 20,000,000 | ||||||||||||||||||||||||||||||
Lender | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Notes payable | $ 3,400,000 | ||||||||||||||||||||||||||||||
Debt instrument term | 15 years | ||||||||||||||||||||||||||||||
Installment amount | $ 59,869 | ||||||||||||||||||||||||||||||
Debt interest rate | 5.99% | ||||||||||||||||||||||||||||||
Proceeds from issuance of debt | $ 7,100,000 | ||||||||||||||||||||||||||||||
Non-officer Employee One | Unsecured Debt | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Face amount | 500,000 | ||||||||||||||||||||||||||||||
Non-officer Employee Two | Unsecured Debt | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Face amount | 300,000 | ||||||||||||||||||||||||||||||
Old Aircraft's Note Payable | Lender | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Notes payable | $ 2,000,000 | ||||||||||||||||||||||||||||||
5.49% Promissory Note | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument term | 20 years | ||||||||||||||||||||||||||||||
Installment amount | $ 15,118 | ||||||||||||||||||||||||||||||
Debt interest rate | 5.49% | ||||||||||||||||||||||||||||||
September 2021 Refinancing Note | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument term | 10 years | ||||||||||||||||||||||||||||||
Installment amount | $ 668,051 | ||||||||||||||||||||||||||||||
Debt interest rate | 5.25% | 5.25% | |||||||||||||||||||||||||||||
Basis spread on variable rate | 3.50% | ||||||||||||||||||||||||||||||
Face amount | $ 99,100,000 | $ 99,100,000 | |||||||||||||||||||||||||||||
Amount refinanced through debt | 85,700,000 | ||||||||||||||||||||||||||||||
Issuance of unsecured debt | $ 12,300,000 | ||||||||||||||||||||||||||||||
Number of clubs acquired | club | 11 | ||||||||||||||||||||||||||||||
Interest rate, term | 5 years | ||||||||||||||||||||||||||||||
Debt instrument, amortization period of interest | 20 years | ||||||||||||||||||||||||||||||
Interest expense related debt | $ 103,000 | ||||||||||||||||||||||||||||||
Debt issuance costs | 1,000,000 | ||||||||||||||||||||||||||||||
Amortization of debt issuance costs | $ 567,000 | ||||||||||||||||||||||||||||||
Note One | Unsecured Debt | Related Party | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Notes payable, related parties | 500,000 | ||||||||||||||||||||||||||||||
Note Two | Unsecured Debt | Related Party | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Notes payable, related parties | 150,000 | ||||||||||||||||||||||||||||||
First Promissory Note | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument term | 10 years | ||||||||||||||||||||||||||||||
Debt interest rate | 6% | ||||||||||||||||||||||||||||||
Face amount | $ 11,000,000 | ||||||||||||||||||||||||||||||
Number of monthly installments | monthly_installment | 120 | ||||||||||||||||||||||||||||||
Debt instrument, periodic payment, principal | $ 122,123 | ||||||||||||||||||||||||||||||
Second Promissory Note | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument term | 20 years | ||||||||||||||||||||||||||||||
Debt interest rate | 6% | ||||||||||||||||||||||||||||||
Face amount | $ 8,000,000 | ||||||||||||||||||||||||||||||
Number of monthly installments | monthly_installment | 240 | ||||||||||||||||||||||||||||||
Debt instrument, periodic payment, principal | $ 57,314 | ||||||||||||||||||||||||||||||
Third Promissory Note | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument term | 10 years | ||||||||||||||||||||||||||||||
Debt interest rate | 5.25% | ||||||||||||||||||||||||||||||
Face amount | $ 1,200,000 | ||||||||||||||||||||||||||||||
Debt instrument, amortization period of interest | 20 years | ||||||||||||||||||||||||||||||
Debt instrument, periodic payment, principal | $ 8,086 | ||||||||||||||||||||||||||||||
Fourth Promissory Note | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument term | 20 years | ||||||||||||||||||||||||||||||
Debt interest rate | 6% | ||||||||||||||||||||||||||||||
Face amount | $ 1,000,000 | ||||||||||||||||||||||||||||||
Number of monthly installments | monthly_installment | 240 | ||||||||||||||||||||||||||||||
Debt instrument, periodic payment, principal | $ 7,215 | ||||||||||||||||||||||||||||||
6.67% Five-Year Promissory Note | Notes Payable to Banks | Food Hall Property In Greenwood Village, Colorado | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument term | 5 years | ||||||||||||||||||||||||||||||
Debt interest rate | 6.67% | ||||||||||||||||||||||||||||||
Face amount | $ 3,300,000 | ||||||||||||||||||||||||||||||
Number of monthly installments | monthly_installment | 59 | ||||||||||||||||||||||||||||||
Debt instrument, periodic payment, principal | $ 22,805 | ||||||||||||||||||||||||||||||
Notes payable | $ 3,300,000 | ||||||||||||||||||||||||||||||
Six Seller Financed Promissory Note | Notes Payable to Banks | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument term | 24 months | ||||||||||||||||||||||||||||||
Installment amount | $ 39,602 | ||||||||||||||||||||||||||||||
Debt interest rate | 7% | ||||||||||||||||||||||||||||||
Face amount | $ 2,000,000 | ||||||||||||||||||||||||||||||
Debt instrument, amortization period of interest | 60 months | ||||||||||||||||||||||||||||||
Number of seller-financed notes | note | 6 | ||||||||||||||||||||||||||||||
Debt instrument, period of principal and interest | 23 months | ||||||||||||||||||||||||||||||
Nine Secured Promissory Notes | Notes Payable to Banks | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument term | 10 years | ||||||||||||||||||||||||||||||
Installment amount | $ 296,077 | ||||||||||||||||||||||||||||||
Debt interest rate | 7% | ||||||||||||||||||||||||||||||
Face amount | $ 25,500,000 | ||||||||||||||||||||||||||||||
Number of seller-financed notes | note | 9 | ||||||||||||||||||||||||||||||
Number of monthly installments | monthly_installment | 120 | ||||||||||||||||||||||||||||||
Promissory Note Related To Real Estate Properties | Notes Payable to Banks | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Face amount | $ 5,000,000 | ||||||||||||||||||||||||||||||
Debt instrument, annual principal payment | $ 1,000,000 | ||||||||||||||||||||||||||||||
7.12% Five-Year Promissory Note | Notes Payable to Banks | Real Estate In Denver, Colorado | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument term | 5 years | 5 years | |||||||||||||||||||||||||||||
Debt interest rate | 7.12% | 7.12% | |||||||||||||||||||||||||||||
Face amount | $ 2,900,000 | ||||||||||||||||||||||||||||||
Debt instrument, periodic payment, principal | $ 20,654 | ||||||||||||||||||||||||||||||
Notes payable | $ 2,900,000 | ||||||||||||||||||||||||||||||
Prime Rate | Notes Payable to Banks | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Basis spread on variable rate | 0.50% | 0.50% | 1% | 1% | |||||||||||||||||||||||||||
Prime Rate | Line of Credit | Revolving Credit Facility | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Basis spread on variable rate | 1% | ||||||||||||||||||||||||||||||
Interest Rate Floor | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Basis spread on variable rate | 5.25% | ||||||||||||||||||||||||||||||
Base Rate | Notes Payable to Banks | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt interest rate | 6% | 6% | 4.50% | 4.25% | 5.25% | ||||||||||||||||||||||||||
US Treasury (UST) Interest Rate | Notes Payable to Banks | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Basis spread on variable rate | 3.98% | ||||||||||||||||||||||||||||||
US Treasury (UST) Interest Rate Floor | Notes Payable to Banks | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Basis spread on variable rate | 5.25% | ||||||||||||||||||||||||||||||
Prime Rate Floor | Notes Payable to Banks | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Basis spread on variable rate | 6% | 6% | 4.50% | 4.25% | |||||||||||||||||||||||||||
Silver City | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Notes payable | $ 1,500,000 | ||||||||||||||||||||||||||||||
Debt instrument term | 11 years | ||||||||||||||||||||||||||||||
Installment amount | $ 12,256 | ||||||||||||||||||||||||||||||
Debt interest rate | 5.50% | ||||||||||||||||||||||||||||||
Silver City | Real Estate Notes | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Notes payable | $ 6,500,000 | ||||||||||||||||||||||||||||||
Debt instrument term | 11 years | ||||||||||||||||||||||||||||||
Installment amount | $ 53,110 | ||||||||||||||||||||||||||||||
Debt interest rate | 5.50% | ||||||||||||||||||||||||||||||
Silver City | Prime Rate | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Basis spread on variable rate | 2.50% | ||||||||||||||||||||||||||||||
Silver City | Prime Rate | Maximum | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Basis spread on variable rate | 9% | ||||||||||||||||||||||||||||||
Scarlett's Acquisition | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Notes payable | $ 3,000,000 | $ 5,000,000 | |||||||||||||||||||||||||||||
Number of promissory notes | note | 2 | ||||||||||||||||||||||||||||||
Scarlett's Acquisition | Short-Term Debt | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Face amount | $ 5,000,000 | ||||||||||||||||||||||||||||||
Scarlett's Acquisition | Short-Term Debt | October 1, 2022 | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Face amount | $ 3,000,000 | ||||||||||||||||||||||||||||||
Scarlett's Acquisition | Promissory Note One | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt interest rate | 5% | ||||||||||||||||||||||||||||||
Proceeds from short term note payable | $ 5,000,000 | ||||||||||||||||||||||||||||||
Note payable repayment threshold period | 6 months | ||||||||||||||||||||||||||||||
Scarlett's Acquisition | Promissory Note Two | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument term | 12 years | ||||||||||||||||||||||||||||||
Installment amount | $ 168,343 | ||||||||||||||||||||||||||||||
Debt interest rate | 8% | ||||||||||||||||||||||||||||||
Proceeds from short term note payable | $ 15,600,000 | ||||||||||||||||||||||||||||||
Scarlett's Acquisition | Short-Term Debt | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt interest rate | 8% | ||||||||||||||||||||||||||||||
Club in Miami, Florida - Adult Entertainment Business | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Consideration transferred | $ 13,000,000 | ||||||||||||||||||||||||||||||
Club in Miami, Florida - Adult Entertainment Business | 10% Three-Year Promissory Note | Notes Payable to Banks | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument term | 3 years | ||||||||||||||||||||||||||||||
Debt interest rate | 10% | ||||||||||||||||||||||||||||||
Debt instrument, amortization period of interest | 10 years | ||||||||||||||||||||||||||||||
Number of monthly installments | monthly_installment | 35 | ||||||||||||||||||||||||||||||
Debt instrument, periodic payment, principal | $ 79,290 | ||||||||||||||||||||||||||||||
Notes payable | $ 6,000,000 | ||||||||||||||||||||||||||||||
Club in Miami, Florida - Adult Entertainment Business | 10% Ten-Year Interest Only Promissory Note | Notes Payable to Banks | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument term | 10 years | ||||||||||||||||||||||||||||||
Debt interest rate | 10% | ||||||||||||||||||||||||||||||
Number of monthly installments | monthly_installment | 119 | ||||||||||||||||||||||||||||||
Debt instrument, periodic payment, principal | $ 41,667 | ||||||||||||||||||||||||||||||
Notes payable | 5,000,000 | ||||||||||||||||||||||||||||||
Balloon payment | $ 5,000,000 | ||||||||||||||||||||||||||||||
Club in Odessa, Texas - Adult Entertainment Business | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Consideration transferred | $ 800,000 | ||||||||||||||||||||||||||||||
Club in Odessa, Texas - Adult Entertainment Business | 6% Seller-Financed Promissory Note | Notes Payable to Banks | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument term | 7 years | ||||||||||||||||||||||||||||||
Installment amount | $ 11,687 | ||||||||||||||||||||||||||||||
Debt interest rate | 6% | ||||||||||||||||||||||||||||||
Face amount | $ 800,000 | ||||||||||||||||||||||||||||||
Number of monthly installments | monthly_installment | 84 | ||||||||||||||||||||||||||||||
Club in Hallandale Beach - Adult Entertainment Business | A 6% Ten-Year Promissory Note | Notes Payable to Banks | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument term | 10 years | ||||||||||||||||||||||||||||||
Installment amount | $ 111,020 | ||||||||||||||||||||||||||||||
Debt interest rate | 6% | ||||||||||||||||||||||||||||||
Face amount | $ 10,000,000 | ||||||||||||||||||||||||||||||
Number of monthly installments | monthly_installment | 120 | ||||||||||||||||||||||||||||||
Club in Hallandale Beach - Real Estate Property | A 6% Ten-Year Promissory Note | Notes Payable to Banks | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument term | 10 years | ||||||||||||||||||||||||||||||
Installment amount | $ 55,510 | ||||||||||||||||||||||||||||||
Debt interest rate | 6% | ||||||||||||||||||||||||||||||
Face amount | $ 5,000,000 | ||||||||||||||||||||||||||||||
Number of monthly installments | monthly_installment | 120 | ||||||||||||||||||||||||||||||
Club In Galveston, Texas - Adult Entertainment Business | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Consideration transferred | $ 2,500,000 | ||||||||||||||||||||||||||||||
Club In Galveston, Texas - Adult Entertainment Business | 6% 15-Year Promissory Note | Notes Payable to Banks | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument term | 15 years | ||||||||||||||||||||||||||||||
Installment amount | $ 42,193 | ||||||||||||||||||||||||||||||
Debt interest rate | 6% | ||||||||||||||||||||||||||||||
Face amount | $ 5,000,000 | ||||||||||||||||||||||||||||||
Number of monthly installments | monthly_installment | 180 | ||||||||||||||||||||||||||||||
Notes payable | $ 5,000,000 | ||||||||||||||||||||||||||||||
Baby Dolls-Chicas Locas | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Number of clubs acquired | club | 5 | ||||||||||||||||||||||||||||||
Notes payable | $ 25,500,000 | ||||||||||||||||||||||||||||||
Consideration transferred | $ 66,500,000 | ||||||||||||||||||||||||||||||
Number of real estate properties acquired | property | 5 | ||||||||||||||||||||||||||||||
Baby Dolls-Chicas Locas | Line of Credit | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Face amount | $ 10,000,000 | ||||||||||||||||||||||||||||||
Baby Dolls-Chicas Locas | Line of Credit | Revolving Credit Facility | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Face amount | $ 10,000,000 | ||||||||||||||||||||||||||||||
Baby Dolls-Chicas Locas | Nine Secured Promissory Notes | Notes Payable to Banks | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Number of seller-financed notes | note | 9 |
Debt - Schedule of Maturities o
Debt - Schedule of Maturities of Long-term Debt (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Debt Instrument [Line Items] | |
2024 | $ 23,366 |
2025 | 38,921 |
2026 | 12,498 |
2027 | 13,287 |
2028 | 22,781 |
Thereafter | 131,814 |
Total debt | 242,667 |
Regular Amortization | |
Debt Instrument [Line Items] | |
2024 | 15,837 |
2025 | 12,149 |
2026 | 12,498 |
2027 | 13,287 |
2028 | 14,050 |
Thereafter | 61,273 |
Total debt | 129,094 |
Balloon Payments | |
Debt Instrument [Line Items] | |
2024 | 7,529 |
2025 | 26,772 |
2026 | 0 |
2027 | 0 |
2028 | 8,731 |
Thereafter | 70,541 |
Total debt | $ 113,573 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |||
Federal | $ 6,506 | $ 8,335 | $ 4,598 |
State and local | 2,121 | 2,656 | 644 |
Total current income tax expense | 8,627 | 10,991 | 5,242 |
Federal | (1,294) | 2,080 | (161) |
State and local | (487) | 1,000 | (1,092) |
Total deferred income tax expense (benefit) | (1,781) | 3,080 | (1,253) |
Total income tax expense | $ 6,846 | $ 14,071 | $ 3,989 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory income tax expense | $ 7,549 | $ 12,628 | $ 7,169 |
State income taxes, net of federal benefit | 1,620 | 1,801 | 716 |
Permanent differences | 605 | 96 | (434) |
Change in tax rates | (255) | 896 | (804) |
Change in valuation allowance | (176) | 343 | (632) |
Tax credits | (2,131) | (1,796) | (1,207) |
Other | (366) | 103 | (819) |
Total income tax expense | $ 6,846 | $ 14,071 | $ 3,989 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Income Tax Disclosure [Abstract] | ||
Net operating loss carryforwards | $ 827 | $ 1,022 |
Capital loss carryforwards | 651 | 234 |
Right-of-use assets | 946 | 626 |
Accrued expenses | 748 | 240 |
Stock-based compensation | 1,185 | 569 |
Other | 123 | 0 |
Valuation allowance | (808) | (984) |
Net deferred tax assets | 3,672 | 1,707 |
Intangibles | (21,468) | (21,927) |
Property and equipment | (11,085) | (10,119) |
Prepaid expenses | (262) | (205) |
Other | 0 | (18) |
Deferred tax liabilities | (32,815) | (32,269) |
Net deferred tax liability | $ (29,143) | $ (30,562) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |
May 08, 2020 USD ($) subsidiary | Nov. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) loan | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Number of subsidiaries that received PPP loan | subsidiary | 10 | ||
Number of notices of PPP forgiveness | loan | 11 | ||
Number of PPP loans granted | loan | 12 | ||
PPP loan forgiveness rate | 100% | ||
PPP loan forgiveness, value | $ 5,300 | ||
Debt instrument, decrease, forgiveness | $ 124 | ||
Debt instrument, periodic payment, principal | $ 85 | ||
Debt instrument, increase, accrued interest | $ 41 | ||
CARES Act | Ten of Our Restaurant | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Proceeds from loans | $ 4,200 | ||
CARES Act | Ten of Our Restaurant | Minimum | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Subsidiary or equity method investee, cumulative proceeds received on all transactions | 271 | ||
CARES Act | Ten of Our Restaurant | Maximum | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Subsidiary or equity method investee, cumulative proceeds received on all transactions | 579 | ||
CARES Act | Our Shared-Services | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Proceeds from loans | 1,100 | ||
CARES Act | One of Our Lounges | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Proceeds from loans | $ 124 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||
Apr. 10, 2014 | Sep. 30, 2023 USD ($) claim | Mar. 31, 2023 USD ($) | Apr. 30, 2017 USD ($) | Sep. 30, 2023 USD ($) claim | Jun. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | Sep. 30, 2023 USD ($) plaintiff claim | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | |
Loss Contingencies [Line Items] | ||||||||||
Number of plaintiffs | plaintiff | 5 | |||||||||
Patron tax on monthly basis per customer | $ 5 | $ 5 | $ 5 | |||||||
Settlement of lawsuits | 280,000 | $ 2,800,000 | ||||||||
Settlement of lawsuits | 576,000 | $ 63,000 | $ 3,100,000 | 3,759,000 | $ 1,417,000 | $ 1,349,000 | ||||
Accrued liabilities | $ 2,400,000 | $ 2,400,000 | $ 2,400,000 | $ 246,000 | ||||||
Indemnity Insurance Corporation | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Percentage of costs of litigation | 100% | |||||||||
Number of claims pending | claim | 1 | 1 | 1 | |||||||
Loss contingency, number of claims filed | claim | 71 | |||||||||
Compensatory Damages | JAI Phoenix | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, damages sought, value | $ 1,400,000 | |||||||||
Punitive Damages | JAI Phoenix | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, damages sought, value | $ 4,000,000 |
Stock-based Compensation - Narr
Stock-based Compensation - Narrative (Details) | 12 Months Ended | ||||
Feb. 09, 2022 member shares | Sep. 30, 2023 USD ($) $ / shares | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Feb. 07, 2022 shares | |
Share-Based Payment Arrangement [Abstract] | |||||
Number of shares authorized for issuance (in shares) | shares | 300,000 | ||||
Additional shares authorized for issuance (in shares) | shares | 50,000 | ||||
Number of members of management receiving approved grant of stock | member | 6 | ||||
Stock-based compensation | $ 2,588,000 | $ 2,353,000 | $ 0 | ||
Stock-based compensation tax benefit | 616,000 | $ 569,000 | $ 0 | ||
Unrecognized stock based compensation expense, stock options | $ 4,500,000 | ||||
Compensation cost not yet recognized, period for recognition | 2 years 4 months 24 days | ||||
Vesting period | 4 years | ||||
Vesting percentage | 20% | ||||
Expiration period | 5 years | ||||
Weighted average grant date fair value (in usd per share) | $ / shares | $ 31.37 |
Stock-based Compensation - Sche
Stock-based Compensation - Schedule of Information about Stock Option Activity (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Sep. 30, 2023 USD ($) $ / shares shares | |
Number of Shares | |
Beginning balance (in shares) | shares | 300,000 |
Granted (in shares) | shares | 0 |
Ending balance (in shares) | shares | 300,000 |
Exercisable (in USD per share) | shares | 60,000 |
Weighted-Average Exercise Price | |
Beginning balance (in usd per share) | $ / shares | $ 100 |
Granted (in usd per share) | $ / shares | |
Ending balance (in usd per share) | $ / shares | 100 |
Exercisable (in usd per share) | $ / shares | $ 100 |
Weighted-Average Remaining Contractual Term (in years) | |
Outstanding | 3 years 4 months 24 days |
Exercisable | 3 years 4 months 24 days |
Aggregate Intrinsic Value (in thousands) | |
Outstanding | $ | $ 0 |
Exercisable | $ | $ 0 |
Employee Retirement Plan (Detai
Employee Retirement Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Retirement Benefits [Abstract] | |||
Defined contribution plan, employer matching contribution, percent of match | 3% | ||
Defined contribution plan, cost | $ 287 | $ 258 | $ 209 |
Insurance Recoveries - Narrativ
Insurance Recoveries - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2022 club | Jun. 30, 2019 club | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | |
Unusual or Infrequent Items, or Both [Abstract] | |||||
Number of clubs related to insurance recoveries | club | 1 | 1 | |||
Net property insurance claims | $ | $ 9 | $ 0 | $ 88 |
Insurance Recoveries - Schedule
Insurance Recoveries - Schedule of Business Insurance Recoveries (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Impairment Effects on Earnings Per Share [Line Items] | |||
Property | $ (77) | $ (463) | $ (1,337) |
Proceeds from business interruption insurance claims | 0 | 0 | 106 |
Proceeds from property insurance claims | 86 | 648 | 1,152 |
Account receivable, net | |||
Impairment Effects on Earnings Per Share [Line Items] | |||
Insurance receivable | $ 0 | $ 0 | $ 186 |
Acquisitions and Dispositions -
Acquisitions and Dispositions - Narrative (Details) $ / shares in Units, ft² in Thousands | 1 Months Ended | 3 Months Ended | 7 Months Ended | 11 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Aug. 03, 2023 USD ($) | Jun. 29, 2023 USD ($) | Jun. 20, 2023 USD ($) | Jun. 18, 2023 USD ($) | Mar. 16, 2023 USD ($) club monthly_installment asset_purchase_agreement stock_purchase_agreement property note $ / shares shares | Mar. 09, 2023 USD ($) | Feb. 07, 2023 USD ($) note seller | Feb. 06, 2023 USD ($) | Dec. 28, 2022 USD ($) | Dec. 20, 2022 USD ($) monthly_installment | Dec. 16, 2022 USD ($) building | Dec. 05, 2022 USD ($) | Nov. 18, 2022 USD ($) monthly_installment | Nov. 08, 2022 USD ($) | Nov. 04, 2022 USD ($) property | Oct. 26, 2022 USD ($) monthly_installment | Oct. 11, 2022 USD ($) | Oct. 10, 2022 USD ($) monthly_installment | Sep. 23, 2022 USD ($) monthly_installment | Sep. 12, 2022 USD ($) | Aug. 18, 2022 USD ($) | Jul. 27, 2022 USD ($) monthly_installment note | Jul. 21, 2022 USD ($) monthly_installment | Jul. 12, 2022 USD ($) property | May 23, 2022 USD ($) | May 02, 2022 USD ($) monthly_installment note | Mar. 01, 2022 USD ($) | Jan. 25, 2022 USD ($) | Dec. 30, 2021 USD ($) club | Nov. 08, 2021 USD ($) | Oct. 18, 2021 USD ($) stock_purchase_agreement note entity club property state asset_purchase_agreement shares | Oct. 08, 2021 USD ($) club | Sep. 21, 2021 USD ($) | May 07, 2021 USD ($) asset | Apr. 07, 2021 USD ($) | Mar. 22, 2021 USD ($) | Mar. 10, 2021 USD ($) ft² | Jan. 26, 2021 USD ($) | Dec. 28, 2020 USD ($) | Dec. 22, 2020 | Dec. 11, 2018 USD ($) | Nov. 30, 2021 USD ($) | Sep. 30, 2023 USD ($) note | Jun. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Sep. 30, 2021 USD ($) | Jun. 30, 2021 USD ($) | Mar. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Sep. 30, 2023 USD ($) note | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) club note shares | Sep. 30, 2022 USD ($) club | Sep. 30, 2021 USD ($) | |
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments to acquire other property, plant, and equipment | $ 475,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument term | 7 years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt interest rate | 4% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Area of land | ft² | 57 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of assets held for sale | asset | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from sale of property, plant, and equipment | $ 2,250,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total property and equipment | $ 363,556,000 | $ 295,192,000 | $ 363,556,000 | $ 295,192,000 | $ 363,556,000 | $ 295,192,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain (loss) on disposition of property plant equipment | 54,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repayments of debt | $ 1,200,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of clubs acquired | club | 11 | 6 | 15 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of real estate properties acquired | property | 6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of asset purchase agreements | asset_purchase_agreement | 9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of stock purchase agreements | stock_purchase_agreement | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of club-owning entities | entity | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of seller-financed notes | note | 2 | 4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | 70,772,000 | 67,767,000 | $ 39,379,000 | 70,772,000 | 67,767,000 | $ 70,772,000 | $ 67,767,000 | $ 39,379,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Installment amount | $ 18,298 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating lease liabilities, net of current portion | 35,175,000 | 36,001,000 | 35,175,000 | 36,001,000 | 35,175,000 | 36,001,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating lease right-of-use assets, net | 34,931,000 | 37,048,000 | 34,931,000 | 37,048,000 | 34,931,000 | 37,048,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments to acquire real estate | $ 3,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Face amount | $ 1,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of monthly installments | monthly_installment | 240 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, periodic payment, principal | $ 85,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Period from closing date of stock purchase agreement that promissory note may be canceled due to regulatory changes | 10 years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interest in joint venture, percent | 51% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of clubs sold | club | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from sale of property held-for-sale | $ 2,900,000 | $ 1,500,000 | $ 1,700,000 | $ 300,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from sale of real estate | $ 1,000,000 | $ 6,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of properties sold | property | 1 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rental properties | $ 4,900,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payment for lease termination fee | 250,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Portion of proceeds from sale of property used to pay off the loan related to the property | 904,000 | $ 1,200,000 | $ 2,100,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | 75,250,000 | $ 77,055,000 | $ 71,517,000 | $ 69,968,000 | 71,378,000 | $ 70,714,000 | $ 63,692,000 | $ 61,836,000 | 54,941,000 | $ 57,860,000 | $ 44,059,000 | $ 38,398,000 | 293,790,000 | 267,620,000 | 195,258,000 | ||||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | 5,644,000 | $ 15,515,000 | $ 13,427,000 | $ 16,898,000 | 17,960,000 | $ 20,507,000 | $ 17,081,000 | $ 15,911,000 | $ 3,617,000 | $ 18,507,000 | $ 9,841,000 | $ 6,583,000 | 51,484,000 | 71,459,000 | 38,548,000 | ||||||||||||||||||||||||||||||||||||||||||||
Acquire productive assets | $ 554,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate held-for-sale | $ 1,100,000 | 1,000,000 | 1,000,000 | 1,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-Income-Producing Corporate Property in Denver, Colorado | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquire productive assets | $ 458,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Land | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total property and equipment | 95,018,000 | 78,116,000 | 95,018,000 | 78,116,000 | 95,018,000 | 78,116,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Building and Building Improvements | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total property and equipment | 204,947,000 | $ 159,037,000 | 204,947,000 | 159,037,000 | 204,947,000 | 159,037,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes Payable to Banks | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument term | 18 months | 18 months | 11 months | 18 months | 21 years | 10 years | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt interest rate | 4.79% | 5.25% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of seller-financed notes | note | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Face amount | $ 1,500,000 | $ 2,300,000 | $ 2,800,000 | $ 1,600,000 | $ 2,200,000 | $ 2,600,000 | $ 18,700,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of monthly installments | monthly_installment | 17 | 17 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, periodic payment, principal | $ 16,338 | $ 126,265 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, amortization period of interest | 20 years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of Credit | Revolving Credit Facility | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument term | 24 months | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Face amount | $ 10,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate in Stafford, Texas | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments to acquire real estate | $ 3,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate in Lubbock, Texas | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments to acquired business | $ 1,200,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consideration transferred | 3,400,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business combination, consideration transferred, other | $ 2,300,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments to acquire real estate | $ 400,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate in Rowlett, Texas | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments to acquire real estate | $ 3,300,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate in Huntsville, Alabama | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consideration transferred | 2,100,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments to acquire real estate | 525,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate in Huntsville, Alabama | Notes Payable to Banks | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Face amount | $ 1,600,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate In Austin, Texas | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments to acquired business | $ 1,100,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business combination, price of acquisition, expected | $ 2,200,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate in Aurora, Colorado | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments to acquire real estate | $ 850,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate in Central City, Colorado | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments to acquire real estate | $ 2,200,000 | $ 2,500,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate In Fort Worth, Texas | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments to acquire real estate | $ 2,400,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of buildings purchased in transaction | building | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Food Hall Property In Greenwood Village, Colorado | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments to acquired business | $ 1,900,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consideration transferred | 5,300,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business combination, acquisition related costs | 102,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Food Hall Property In Greenwood Village, Colorado | Leases acquired in-place | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tradenames | 565,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquired finite-lived intangible assets, amortization period | 1 year 8 months 12 days | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Food Hall Property In Greenwood Village, Colorado | Land | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and equipment | 2,100,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Food Hall Property In Greenwood Village, Colorado | Building and Building Improvements | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and equipment | 2,600,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Food Hall Property In Greenwood Village, Colorado | Furniture, Fixtures And Equipment | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and equipment | $ 98,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate In Denver, Colorado | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments to acquired business | $ 1,700,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consideration transferred | $ 4,600,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6.67% Five-Year Promissory Note | Food Hall Property In Greenwood Village, Colorado | Notes Payable to Banks | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument term | 5 years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt interest rate | 6.67% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Face amount | $ 3,300,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes payable | $ 3,300,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of monthly installments | monthly_installment | 59 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, periodic payment, principal | $ 22,805 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six Seller Financed Promissory Note | Notes Payable to Banks | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument term | 24 months | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt interest rate | 7% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of seller-financed notes | note | 6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Installment amount | $ 39,602 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Face amount | $ 2,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, amortization period of interest | 60 months | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7% Seller Financing Promissory Notes | Baby Dolls-Chicas Locas | Notes Payable to Banks | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument term | 10 years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt interest rate | 7% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nine Secured Promissory Notes | Notes Payable to Banks | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument term | 10 years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt interest rate | 7% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of seller-financed notes | note | 9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Installment amount | $ 296,077 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Face amount | $ 25,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of monthly installments | monthly_installment | 120 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7.12% Five-Year Promissory Note | Real Estate In Denver, Colorado | Notes Payable to Banks | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument term | 5 years | 5 years | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt interest rate | 7.12% | 7.12% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Face amount | $ 2,900,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes payable | $ 2,900,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, periodic payment, principal | $ 20,654 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Centerville | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments to acquire other property, plant, and equipment | $ 500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Arlington | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments to acquire other property, plant, and equipment | $ 2,900,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments to acquired business | 754,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Arlington | Twenty Year Promissory Note | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from loans | $ 2,175,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument term | 20 years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt interest rate | 3.99% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bombshells Houston | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments to acquire other property, plant, and equipment | $ 1,040,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bombshells Pearland | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments to acquire other property, plant, and equipment | $ 1,275,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Properties Held For Sale | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from sale of property, plant, and equipment | $ 3,100,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total property and equipment | 2,300,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain (loss) on disposition of property plant equipment | 657,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repayments of debt | $ 2,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gentlemen's Clubs, Related Real Estate Property, and Intellectual Property | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments to acquired business | $ 36,800,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consideration transferred | 88,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business acquisition, price of acquisition, preliminary fair value | $ 87,933,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of additional states from acquisition | state | 4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | $ 15,430,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business acquisition, goodwill, expected tax deductible amount | 7,100,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business combination, acquisition related costs | 414,000 | 241,000 | 173,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill, purchase accounting adjustments | 1,800,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and equipment | 19,273,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes payable | 21,200,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current assets | $ 386,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gentlemen's Clubs, Related Real Estate Property, and Intellectual Property | Common Stock | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock issued during period, acquisitions (in share) | shares | 500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gentlemen's Clubs, Related Real Estate Property, and Intellectual Property | Four Seller Financed Notes | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business combination, consideration transferred, other | $ 21,200,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Two Club-Owning Entities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business acquisition, percentage of voting interests acquired | 100% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Newburgh | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments to acquired business | 2,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consideration transferred | 3,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | 1,200,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business acquisition, goodwill, expected tax deductible amount | 1,200,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business combination, acquisition related costs | $ 21,000 | $ 10,000 | $ 11,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and equipment | 2,100,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business combination, recognized identifiable assets acquired and liabilities assumed, tangible assets | 200,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Newburgh | Seller-Finanaced Notes | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business combination, consideration transferred, other | $ 1,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Newburgh | Seven Year Promissory Note | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument term | 7 years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt interest rate | 4% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Installment amount | $ 13,669 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Club in South Florida | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments to acquired business | $ 7,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of real estate properties acquired | club | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating lease liabilities, net of current portion | $ 5,900,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating lease right-of-use assets, net | $ 5,900,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Club in Miami, Florida | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consideration transferred | $ 16,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | 6,759,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business combination, acquisition related costs | 28,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and equipment | 5,336,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current assets | 172,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Club in Miami, Florida - Real Estate Property | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consideration transferred | 3,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Club in Miami, Florida - Adult Entertainment Business | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments to acquired business | 2,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consideration transferred | $ 13,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business acquisition, percentage of voting interests acquired | 100% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Club in Miami, Florida - Adult Entertainment Business | 10% Three-Year Promissory Note | Notes Payable to Banks | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument term | 3 years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt interest rate | 10% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes payable | $ 6,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of monthly installments | monthly_installment | 35 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, periodic payment, principal | $ 79,290 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, amortization period of interest | 10 years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Club in Miami, Florida - Adult Entertainment Business | 10% Ten-Year Interest Only Promissory Note | Notes Payable to Banks | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument term | 10 years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt interest rate | 10% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes payable | $ 5,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of monthly installments | monthly_installment | 119 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, periodic payment, principal | $ 41,667 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balloon payment | $ 5,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Club In Odessa, Texas | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consideration transferred | $ 1,800,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Club In Odessa, Texas - Real Estate Property | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consideration transferred | 1,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments to acquire real estate | 1,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Club in Odessa, Texas - Adult Entertainment Business | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consideration transferred | 800,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and equipment | 1,100,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current assets | 11,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business combination, recognized identifiable assets acquired and liabilities assumed, intangible assets | $ 684,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Club in Odessa, Texas - Adult Entertainment Business | 6% Seller-Financed Promissory Note | Notes Payable to Banks | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument term | 7 years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt interest rate | 6% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Installment amount | $ 11,687 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Face amount | $ 800,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of monthly installments | monthly_installment | 84 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Club in Hallandale Beach, Florida | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consideration transferred | $ 25,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business acquisition, price of acquisition, preliminary fair value | $ 23,400,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business acquisition, percentage of voting interests acquired | 100% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | $ 5,577,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and equipment | 4,921,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current assets | 71,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Club in Hallandale Beach - Adult Entertainment Business | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments to acquired business | 10,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consideration transferred, stock purchase agreement | $ 20,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Club in Hallandale Beach - Adult Entertainment Business | A 6% Ten-Year Promissory Note | Notes Payable to Banks | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument term | 10 years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt interest rate | 6% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Installment amount | $ 111,020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Face amount | $ 10,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of monthly installments | monthly_installment | 120 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Club in Hallandale Beach - Real Estate Property | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consideration transferred, asset purchase agreement | $ 5,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Club in Hallandale Beach - Real Estate Property | A 6% Ten-Year Promissory Note | Notes Payable to Banks | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument term | 10 years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt interest rate | 6% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Installment amount | $ 55,510 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Face amount | $ 5,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of monthly installments | monthly_installment | 120 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hangar in Arcola, Texas | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consideration transferred | $ 754,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Club In Galveston, Texas | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consideration transferred | $ 9,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business acquisition, price of acquisition, preliminary fair value | $ 8,900,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business acquisition, percentage of voting interests acquired | 100% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | $ 2,905,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business acquisition, goodwill, expected tax deductible amount | 1,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business combination, acquisition related costs | 23,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and equipment | 4,884,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current assets | 64,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | 2,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | 3,100,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Club In Galveston, Texas - Adult Entertainment Business | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments to acquired business | 1,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consideration transferred | $ 2,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Club In Galveston, Texas - Adult Entertainment Business | 6% 15-Year Promissory Note | Notes Payable to Banks | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument term | 15 years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt interest rate | 6% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Installment amount | $ 42,193 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Face amount | 5,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes payable | $ 5,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of monthly installments | monthly_installment | 180 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Club In Galveston, Texas - Real Estate Property | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consideration transferred | $ 6,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bombshells Location In San Antonio, Texas | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments to acquired business | $ 1,200,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consideration transferred | $ 3,200,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business acquisition, percentage of voting interests acquired | 100% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of seller-financed notes | note | 6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and equipment | $ 2,700,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquired finite-lived intangible assets, amortization period | 13 years 4 months 24 days | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of sellers | seller | 6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory | $ 61,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease intangible and right-of-use assets, net of lease liability | 480,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bombshells Location In San Antonio, Texas | Six Seller Financed Promissory Note | Notes Payable to Banks | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Face amount | $ 2,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Baby Dolls-Chicas Locas | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments to acquired business | $ 25,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of clubs acquired | club | 5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of real estate properties acquired | property | 5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consideration transferred | $ 66,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business acquisition, price of acquisition, preliminary fair value | $ 63,347,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of asset purchase agreements | asset_purchase_agreement | 4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of stock purchase agreements | stock_purchase_agreement | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | $ 4,339,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business acquisition, goodwill, expected tax deductible amount | 4,300,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business combination, acquisition related costs | 304,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and equipment | 16,570,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes payable | 25,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current assets | $ 632,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | 16,100,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | 4,800,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business acquisition, share price | $ / shares | $ 80 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Baby Dolls-Chicas Locas | Line of Credit | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Face amount | $ 10,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Baby Dolls-Chicas Locas | Line of Credit | Revolving Credit Facility | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Face amount | $ 10,000,000 | $ 10,000,000 | $ 10,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Baby Dolls-Chicas Locas | Common Stock | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock issued during period, acquisitions (in share) | shares | 200,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued as partial consideration | shares | 200,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Baby Dolls-Chicas Locas | 7% Seller Financing Promissory Notes | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business combination, consideration transferred, other | $ 25,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Baby Dolls-Chicas Locas | Nine Secured Promissory Notes | Notes Payable to Banks | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of seller-financed notes | note | 9 | 9 | 9 |
Acquisitions and Dispositions_2
Acquisitions and Dispositions - Schedule of Preliminary Fair Value of Consideration (Details) - USD ($) $ in Thousands | Mar. 16, 2023 | Oct. 18, 2021 |
Gentlemen's Clubs, Related Real Estate Property, and Intellectual Property | ||
Business Acquisition [Line Items] | ||
Cash | $ 36,800 | |
Notes payable | 21,200 | |
Common stock | 29,933 | |
Total consideration fair value | $ 87,933 | |
Baby Dolls-Chicas Locas | ||
Business Acquisition [Line Items] | ||
Cash | $ 25,000 | |
Notes payable | 25,500 | |
Common stock | 12,847 | |
Total consideration fair value | $ 63,347 |
Acquisitions and Dispositions_3
Acquisitions and Dispositions - Schedule of Allocation of Fair Value of the Acquisition Price (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Mar. 16, 2023 | Oct. 26, 2022 | Sep. 30, 2022 | Jul. 27, 2022 | May 02, 2022 | Oct. 18, 2021 | Sep. 30, 2021 |
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 70,772 | $ 67,767 | $ 39,379 | |||||
Gentlemen's Clubs, Related Real Estate Property, and Intellectual Property | ||||||||
Business Acquisition [Line Items] | ||||||||
Current assets | $ 386 | |||||||
Property and equipment | 19,273 | |||||||
Leases acquired in-place | 261 | |||||||
Deferred tax liability | (1,741) | |||||||
Total net assets acquired | 72,503 | |||||||
Goodwill | 15,430 | |||||||
Acquisition price fair value | 87,933 | |||||||
Gentlemen's Clubs, Related Real Estate Property, and Intellectual Property | Licenses | ||||||||
Business Acquisition [Line Items] | ||||||||
Indefinite-lived intangible assets | 47,390 | |||||||
Gentlemen's Clubs, Related Real Estate Property, and Intellectual Property | Tradename | ||||||||
Business Acquisition [Line Items] | ||||||||
Indefinite-lived intangible assets | $ 6,934 | |||||||
Club in Miami, Florida | ||||||||
Business Acquisition [Line Items] | ||||||||
Current assets | $ 172 | |||||||
Property and equipment | 5,336 | |||||||
Deferred tax liability | (2,627) | |||||||
Total net assets acquired | 9,241 | |||||||
Goodwill | 6,759 | |||||||
Acquisition price fair value | 16,000 | |||||||
Club in Miami, Florida | Licenses | ||||||||
Business Acquisition [Line Items] | ||||||||
Indefinite-lived intangible assets | 4,900 | |||||||
Club in Miami, Florida | Tradename | ||||||||
Business Acquisition [Line Items] | ||||||||
Indefinite-lived intangible assets | $ 1,460 | |||||||
Club in Hallandale Beach, Florida | ||||||||
Business Acquisition [Line Items] | ||||||||
Current assets | $ 71 | |||||||
Property and equipment | 4,921 | |||||||
Indefinite-lived intangible assets | 16,810 | |||||||
Deferred tax liability | (3,979) | |||||||
Total net assets acquired | 17,823 | |||||||
Goodwill | 5,577 | |||||||
Acquisition price fair value | $ 23,400 | |||||||
Club In Galveston, Texas | ||||||||
Business Acquisition [Line Items] | ||||||||
Current assets | $ 64 | |||||||
Property and equipment | 4,884 | |||||||
Accrued liability | (95) | |||||||
Deferred tax liability | (363) | |||||||
Total net assets acquired | 6,000 | |||||||
Goodwill | 2,905 | |||||||
Acquisition price fair value | 8,905 | |||||||
Club In Galveston, Texas | Licenses | ||||||||
Business Acquisition [Line Items] | ||||||||
Indefinite-lived intangible assets | 1,170 | |||||||
Club In Galveston, Texas | Tradename | ||||||||
Business Acquisition [Line Items] | ||||||||
Indefinite-lived intangible assets | $ 340 | |||||||
Baby Dolls-Chicas Locas | ||||||||
Business Acquisition [Line Items] | ||||||||
Current assets | $ 632 | |||||||
Property and equipment | 16,570 | |||||||
Accounts payable | (632) | |||||||
Total net assets acquired | 59,008 | |||||||
Goodwill | 4,339 | |||||||
Acquisition price fair value | 63,347 | |||||||
Baby Dolls-Chicas Locas | Licenses | ||||||||
Business Acquisition [Line Items] | ||||||||
Indefinite-lived intangible assets | 36,110 | |||||||
Baby Dolls-Chicas Locas | Tradename | ||||||||
Business Acquisition [Line Items] | ||||||||
Indefinite-lived intangible assets | $ 6,328 |
Acquisitions and Dispositions_4
Acquisitions and Dispositions - Schedule of Unaudited Pro Forma Combined Results of Operations (Details) - Baby Dolls-Chicas Locas - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Business Acquisition [Line Items] | ||
Pro forma revenues | $ 306,729 | $ 291,764 |
Pro forma net income attributable to RCIHH common stockholders | $ 28,329 | $ 51,198 |
Pro forma earnings per share – basic (in dollars per share) | $ 3.01 | $ 5.34 |
Pro forma earnings per share – diluted (in dollars per share) | $ 3.01 | $ 5.34 |
Pro forma weighted average number of common shares outstanding - basic (in shares) | 9,426,942 | 9,583,445 |
Pro forma weighted average number of common shares outstanding - diluted (in shares) | 9,426,942 | 9,583,445 |
Quarterly Results of Operatio_3
Quarterly Results of Operations (Unaudited) - Schedule of Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||
Revenues | $ 75,250 | $ 77,055 | $ 71,517 | $ 69,968 | $ 71,378 | $ 70,714 | $ 63,692 | $ 61,836 | $ 54,941 | $ 57,860 | $ 44,059 | $ 38,398 | $ 293,790 | $ 267,620 | $ 195,258 |
Income (loss) from operations | 5,644 | 15,515 | 13,427 | 16,898 | 17,960 | 20,507 | 17,081 | 15,911 | 3,617 | 18,507 | 9,841 | 6,583 | 51,484 | 71,459 | 38,548 |
Net income (loss) attributable to RCIHH stockholders | $ 2,191 | $ 9,085 | $ 7,732 | $ 10,238 | $ 10,612 | $ 13,902 | $ 10,952 | $ 10,575 | $ 2,300 | $ 12,302 | $ 6,091 | $ 9,643 | $ 29,246 | $ 46,041 | $ 30,336 |
Earnings per share | |||||||||||||||
Basic (in dollars per share) | $ 0.23 | $ 0.96 | $ 0.83 | $ 1.11 | $ 1.15 | $ 1.48 | $ 1.15 | $ 1.12 | $ 0.26 | $ 1.37 | $ 0.68 | $ 1.07 | $ 3.13 | $ 4.91 | $ 3.37 |
Diluted (in dollars per share) | $ 0.23 | $ 0.96 | $ 0.83 | $ 1.11 | $ 1.15 | $ 1.48 | $ 1.15 | $ 1.12 | $ 0.26 | $ 1.37 | $ 0.68 | $ 1.07 | $ 3.13 | $ 4.91 | $ 3.37 |
Weighted average shares used in computing earnings per share | |||||||||||||||
Basic (in shares) | 9,417,166 | 9,430,225 | 9,265,781 | 9,230,258 | 9,249,864 | 9,389,675 | 9,489,085 | 9,407,519 | 8,999,910 | 8,999,910 | 8,999,910 | 9,019,088 | 9,335,983 | 9,383,445 | 9,004,744 |
Diluted (in shares) | 9,417,166 | 9,430,225 | 9,265,781 | 9,230,258 | 9,249,864 | 9,389,675 | 9,489,085 | 9,407,519 | 8,999,910 | 8,999,910 | 8,999,910 | 9,019,088 | 9,335,983 | 9,383,445 | 9,004,744 |
Dividends per share declared and paid (in dollars per share) | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.23 | $ 0.19 | $ 0.16 |
Quarterly Results of Operatio_4
Quarterly Results of Operations (Unaudited) - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||
Oct. 18, 2021 club | Sep. 30, 2023 USD ($) | Jun. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Sep. 30, 2021 USD ($) | Jun. 30, 2021 USD ($) | Mar. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Sep. 30, 2023 USD ($) club | Sep. 30, 2022 USD ($) club bombshell | Sep. 30, 2021 USD ($) | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Impairment of assets | $ 9,300 | $ 2,600 | $ 662 | $ 166 | $ 1,700 | $ 11,900 | $ 271 | $ 1,400 | $ 12,629 | $ 1,888 | $ 13,612 | |||||
Effective income tax expense (benefit) rate reconciliation, percent | (39.60%) | 20.10% | 21.80% | 22.80% | 27.10% | 21.30% | 23.40% | 21.70% | (210.40%) | 24.40% | 24.30% | (4.20%) | ||||
Settlement of lawsuits | $ 576 | $ 63 | $ 3,100 | 3,759 | 1,417 | 1,349 | ||||||||||
Valuation allowance, deferred tax asset, increase (decrease), amount | $ (176) | $ (343) | $ (462) | |||||||||||||
Gain (loss) on disposition of business | $ 1,700 | $ 266 | $ 58 | $ 342 | 682 | 2,375 | 522 | |||||||||
Gain (loss) on extinguishment of debt | $ 380 | $ 4,900 | 0 | 83 | 5,298 | |||||||||||
Gain (loss) on insurance | $ 1,000 | $ 12 | $ 197 | $ 77 | $ 463 | $ 1,253 | ||||||||||
Number of clubs acquired | club | 11 | 6 | 15 | |||||||||||||
Number of bombshells acquired | bombshell | 1 |
Segment Information - Schedule
Segment Information - Schedule of Segment Reporting Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Segment Reporting Information [Line Items] | |||||||||||||||
Total revenues | $ 75,250,000 | $ 77,055,000 | $ 71,517,000 | $ 69,968,000 | $ 71,378,000 | $ 70,714,000 | $ 63,692,000 | $ 61,836,000 | $ 54,941,000 | $ 57,860,000 | $ 44,059,000 | $ 38,398,000 | $ 293,790,000 | $ 267,620,000 | $ 195,258,000 |
Income (loss) from operations | 5,644,000 | $ 15,515,000 | $ 13,427,000 | $ 16,898,000 | 17,960,000 | $ 20,507,000 | $ 17,081,000 | $ 15,911,000 | $ 3,617,000 | $ 18,507,000 | $ 9,841,000 | $ 6,583,000 | 51,484,000 | 71,459,000 | 38,548,000 |
Capital expenditures | 40,384,000 | 24,003,000 | 13,511,000 | ||||||||||||
Depreciation and amortization | 15,151,000 | 12,391,000 | 8,238,000 | ||||||||||||
Total assets | 610,884,000 | 530,738,000 | 610,884,000 | 530,738,000 | |||||||||||
Nightclubs | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Total revenues | 236,748,000 | 206,251,000 | 137,348,000 | ||||||||||||
Income (loss) from operations | 73,187,000 | 82,798,000 | 43,815,000 | ||||||||||||
Capital expenditures | 11,840,000 | 17,477,000 | 6,890,000 | ||||||||||||
Depreciation and amortization | 10,871,000 | 9,604,000 | 5,494,000 | ||||||||||||
Total assets | 483,563,000 | 437,096,000 | 483,563,000 | 437,096,000 | |||||||||||
Bombshells | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Total revenues | 55,723,000 | 59,925,000 | 56,621,000 | ||||||||||||
Income (loss) from operations | 6,502,000 | 11,504,000 | 13,264,000 | ||||||||||||
Capital expenditures | 16,578,000 | 3,586,000 | 5,895,000 | ||||||||||||
Depreciation and amortization | 2,574,000 | 1,783,000 | 1,824,000 | ||||||||||||
Total assets | 85,215,000 | 62,021,000 | 85,215,000 | 62,021,000 | |||||||||||
Other | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Total revenues | 1,319,000 | 1,444,000 | 1,289,000 | ||||||||||||
Income (loss) from operations | (1,446,000) | 57,000 | 35,000 | ||||||||||||
Capital expenditures | 8,400,000 | 841,000 | 157,000 | ||||||||||||
Depreciation and amortization | 495,000 | 85,000 | 87,000 | ||||||||||||
Total assets | 6,936,000 | 2,635,000 | 6,936,000 | 2,635,000 | |||||||||||
General corporate | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Income (loss) from operations | (26,759,000) | (22,900,000) | (18,566,000) | ||||||||||||
Capital expenditures | 3,566,000 | 2,099,000 | 569,000 | ||||||||||||
Depreciation and amortization | 1,211,000 | 919,000 | $ 833,000 | ||||||||||||
Total assets | $ 35,170,000 | $ 28,986,000 | $ 35,170,000 | $ 28,986,000 |
Segment Information - Narrative
Segment Information - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Segment Reporting Information [Line Items] | |||||||||||||||
Total revenues | $ 75,250 | $ 77,055 | $ 71,517 | $ 69,968 | $ 71,378 | $ 70,714 | $ 63,692 | $ 61,836 | $ 54,941 | $ 57,860 | $ 44,059 | $ 38,398 | $ 293,790 | $ 267,620 | $ 195,258 |
Nightclubs | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Total revenues | 236,748 | 206,251 | 137,348 | ||||||||||||
Goodwill transfers | 9,000 | ||||||||||||||
Nightclubs | Intercompany Rental Revenue | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Total revenues | 16,600 | 14,000 | 11,500 | ||||||||||||
Other Segment | Intercompany Sales | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Total revenues | $ 254 | 261 | $ 141 | ||||||||||||
Corporate Segment | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Goodwill transfers | $ (9,000) |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 12 Months Ended | ||||
Oct. 12, 2021 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | Nov. 08, 2021 | |
Related Party Transaction [Line Items] | |||||
Total debt | $ 242,667,000 | ||||
Face amount | $ 1,000,000 | ||||
Proceeds from related party debt | 0 | $ 650,000 | $ 0 | ||
Accounts payable | 6,111,000 | 5,482,000 | |||
Ed Anakar and Nourdean Anakar | Related Party | |||||
Related Party Transaction [Line Items] | |||||
Proceeds from related party debt | $ 500,000 | ||||
Allen Chhay and Bradley Chhay | Related Party | |||||
Related Party Transaction [Line Items] | |||||
Proceeds from related party debt | 150,000 | ||||
Nottingham Creations and Sherwood Forest Creations LLC | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction, amounts of transaction | 195,000 | 207,000 | 118,000 | ||
Nottingham Creations and Sherwood Forest Creations LLC | Related Party | |||||
Related Party Transaction [Line Items] | |||||
Accounts payable | 10,700 | 92,808 | |||
TW Mechanical LLC | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction, amounts of transaction | 9,430 | 133,000 | 425,000 | ||
TW Mechanical LLC | Related Party | |||||
Related Party Transaction [Line Items] | |||||
Accounts payable | $ 0 | 9,338 | |||
Ownership percentage | 50% | ||||
TW Mechanical LLC | Related Party | Third-Party General Contractor | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction, amounts of transaction | $ 443,295 | 3,809 | $ 0 | ||
Commercial Bank Indebtedness | |||||
Related Party Transaction [Line Items] | |||||
Total debt | $ 119,200,000 | $ 115,100,000 | |||
Unsecured Debt | |||||
Related Party Transaction [Line Items] | |||||
Face amount | $ 17,000,000 |
Leases - Schedule of Future Mat
Leases - Schedule of Future Maturities of Lease Liabilities (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Lessee, Lease, Description [Line Items] | |
October 2023 - September 2024 | $ 5,033 |
October 2024 - September 2025 | 5,108 |
October 2025 - September 2026 | 5,207 |
October 2026 - September 2027 | 5,019 |
October 2027 - September 2028 | 4,282 |
Thereafter | 26,548 |
Future maturities of lease liabilities | 51,197 |
Principal Portion | |
Lessee, Lease, Description [Line Items] | |
October 2023 - September 2024 | 2,977 |
October 2024 - September 2025 | 3,227 |
October 2025 - September 2026 | 3,516 |
October 2026 - September 2027 | 3,532 |
October 2027 - September 2028 | 2,982 |
Thereafter | 21,918 |
Future maturities of lease liabilities | 38,152 |
Interest Portion | |
Lessee, Lease, Description [Line Items] | |
October 2023 - September 2024 | 2,056 |
October 2024 - September 2025 | 1,881 |
October 2025 - September 2026 | 1,691 |
October 2026 - September 2027 | 1,487 |
October 2027 - September 2028 | 1,300 |
Thereafter | 4,630 |
Future maturities of lease liabilities | $ 13,045 |
Leases - Schedule of Lease Expe
Leases - Schedule of Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Lessee, Lease, Description [Line Items] | |||
Operating lease expense – fixed payments | $ 5,166 | $ 4,738 | $ 3,325 |
Variable lease expense | 1,629 | 1,397 | 349 |
Advertising and marketing | 11,928 | 9,860 | 6,676 |
Repairs and maintenance | 4,924 | 3,754 | 2,767 |
Short-term lease cost | 1,325 | 1,264 | 955 |
Sublease income | 0 | (4) | (6) |
Total lease expense, net | 8,120 | 7,395 | 4,623 |
Operating cash outflows from operating leases | $ 7,949 | $ 7,200 | $ 4,522 |
Weighted average remaining lease term | 10 years 6 months | 11 years | 12 years |
Weighted average discount rate | 5.80% | 5.60% | 6% |
Equipment | |||
Lessee, Lease, Description [Line Items] | |||
Advertising and marketing | $ 357 | $ 258 | $ 298 |
Repairs and maintenance | $ 557 | $ 435 | $ 397 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Leases [Abstract] | |||
Operating lease, impairment loss | $ 1,000,000 | $ 0 | $ 0 |
Operating Lease Income Comprehensive Income Extensible List Not Disclosed Flag | operating lease revenue | operating lease revenue | operating lease revenue |
Operating lease revenue | $ 1,800,000 | $ 1,600,000 | $ 1,500,000 |
2024 | 1,700,000 | ||
2025 | 1,400,000 | ||
2026 | 380,000 | ||
2027 | 320,000 | ||
2028 | 292,000 | ||
Thereafter | $ 802,000 |
Subsequent Events (Details)
Subsequent Events (Details) | 2 Months Ended | 12 Months Ended | ||||||||
Nov. 17, 2023 USD ($) monthly_installment | Sep. 23, 2022 USD ($) monthly_installment | Nov. 08, 2021 USD ($) | Oct. 12, 2021 USD ($) investor | Dec. 14, 2023 USD ($) shares | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Oct. 25, 2023 USD ($) investor | Oct. 31, 2021 USD ($) | |
Subsequent Event [Line Items] | ||||||||||
Face amount | $ 1,000,000 | |||||||||
Debt interest rate | 4% | |||||||||
Debt instrument term | 7 years | |||||||||
Number of monthly installments | monthly_installment | 240 | |||||||||
Installment amount | $ 18,298 | |||||||||
Common stock cost | $ 2,223,000 | $ 15,097,000 | $ 1,794,000 | |||||||
Subsequent Event | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Number of investors returning for cancellation | investor | 26 | |||||||||
Purchase of treasury shares (in shares) | shares | 37,954 | |||||||||
Common stock cost | $ 2,100,000 | |||||||||
Unsecured Debt | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Number of investors | investor | 28 | |||||||||
Face amount | $ 17,000,000 | |||||||||
Debt interest rate | 12% | 12% | ||||||||
Debt instrument term | 10 years | 10 years | ||||||||
Unsecured Debt | Debt Instrument, Redemption, Period One | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Face amount | $ 9,500,000 | $ 9,100,000 | ||||||||
Unsecured Debt | Debt Instrument, Redemption, Period Two | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Face amount | $ 7,500,000 | $ 6,600,000 | $ 7,500,000 | |||||||
Unsecured Debt | Subsequent Event | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Number of investors | investor | 26 | |||||||||
Face amount | $ 15,700,000 | |||||||||
Construction Loans | Subsequent Event | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Face amount | $ 7,200,000 | |||||||||
Debt interest rate | 8.50% | |||||||||
Number of monthly installments | monthly_installment | 120 | |||||||||
Construction Loans | Subsequent Event | Debt Instrument, Redemption, Period One | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Period of interest | 18 months | |||||||||
Construction Loans | Subsequent Event | Debt Instrument, Redemption, Period Two | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Number of monthly installments | monthly_installment | 101 | |||||||||
Installment amount | $ 63,022 |
Schedule of Valuation and Qua_2
Schedule of Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Allowance for doubtful accounts receivable | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | $ 30 | $ 382 | $ 261 |
Charged to costs and expenses | 47 | 191 | 215 |
Deduction | (15) | (543) | (94) |
Balance at end of year | 62 | 30 | 382 |
Allowance for doubtful notes receivable | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | 0 | 102 | 182 |
Charged to costs and expenses | 0 | 753 | (80) |
Deduction | 0 | (855) | 0 |
Balance at end of year | 0 | 0 | 102 |
Deferred tax asset valuation allowance | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | 984 | 641 | 1,273 |
Charged to costs and expenses | 0 | 343 | 0 |
Deduction | (176) | 0 | (632) |
Balance at end of year | $ 808 | $ 984 | $ 641 |