Revision of Prior Year Immaterial Misstatement
 12 Months Ended
Sep. 30, 2019
Accounting Changes and Error Corrections [Abstract]  
Revision of Prior Year Immaterial Misstatement

3. Revision of Prior Year Immaterial Misstatement

 

During the quarter ended December 31, 2018 (first quarter of fiscal 2019), the Company identified certain mechanical errors in its goodwill impairment analysis that was performed for its annual impairment testing for fiscal year ended September 30, 2018. These errors related to the use of an incorrect income tax rate assumption and the exclusion of certain debt service payments as part of our goodwill impairment testing for two of our reporting units, which resulted in a goodwill impairment charge of $834,000.

 

The Company assessed the materiality of these errors considering both qualitative and quantitative factors and determined that for both the quarter and fiscal year ended September 30, 2018, the errors were immaterial. The Company has decided to correct these immaterial errors as revisions to our previously issued financial statements and has adjusted this Form 10-K insofar as fiscal 2018 is concerned.

 

The tables below present the impact of the revision in the Company’s consolidated financial statements (in thousands):

 

    Fiscal Year Ended September 30, 2018  
    As Previously Reported     Adjustments     As Revised  
Statement of Income/Comprehensive Income:                        
Other charges, net   $ 8,350     $ 834     $ 9,184  
Total operating expenses     137,352       834       138,186  
Income from operations     28,396       (834 )     27,562  
Income before income taxes     18,676       (834 )     17,842  
Net income     21,794       (834 )     20,960  
Net income attributable to RCIHH common stockholders     21,713       (834 )     20,879  
Earnings per share - basic   $ 2.23     $ (0.08 )   $ 2.15  
Earnings per share - diluted   $ 2.23     $ (0.08 )   $ 2.15  
Comprehensive income   $ 22,014     $ (834 )   $ 21,180  
Comprehensive income attributable to RCI Hospitality Holdings, Inc.     21,933       (834 )     21,099  

 

    September 30, 2018  
    As Previously Reported     Adjustment     As Revised  
Balance Sheet/Statement of Changes in Equity                        
Goodwill   $ 44,425     $ (834 )   $ 43,591  
Total assets     330,566       (834 )     329,732  
Retained earnings     89,740       (834 )     88,906  
Total RCIHH stockholders’ equity     154,269       (834 )     153,435  
Total equity     154,166       (834 )     153,332  
Total liabilities and equity     330,566       (834 )     329,732  

 

The table below presents the impact of the revision in the Company’s notes to its consolidated financial statements related to unaudited quarterly results of operations (in thousands):

 

    Quarter Ended September 30, 2018  
    As Previously Reported     Adjustment     As Revised  
Income from operations   $ 1,533     $ (834 )   $ 699  
Net loss attributable to RCIHH common stockholders     (2,672 )     (834 )     (3,506 )
Loss per share - basic   $ (0.27 )   $ (0.09 )   $ (0.36 )
Loss per share - diluted   $ (0.27 )   $ (0.09 )   $ (0.36 )

 

The consolidated statements of cash flows are not presented because there is no impact on total cash flows from operating activities, investing activities and financing activities. Certain components of net cash provided by operating activities changed, as caused by the revision, but the net change amounted to zero for both quarter and fiscal year ended September 30, 2018.