Segment Information
 12 Months Ended
Sep. 30, 2019
Segment Reporting [Abstract]  
Segment Information

18. 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):

 

    2019     2018     2017  
Revenues (from external customers)                        
Nightclubs   $ 148,606     $ 140,060     $ 124,687  
Bombshells     30,828       24,094       18,830  
Other     1,625       1,594       1,379  
    $ 181,059     $ 165,748     $ 144,896  
                         
Income (loss) from operations(1)                        
Nightclubs   $ 50,724     $ 43,624     $ 35,138  
Bombshells     2,307       2,040       3,084  
Other     (309 )     (252 )     (522 )
General corporate     (18,021 )     (17,850 )     (14,561 )
    $ 34,701     $ 27,562     $ 23,139  
                         
Capital expenditures                        
Nightclubs   $ 6,645     $ 2,052     $ 5,142  
Bombshells     10,933       22,522       4,489  
Other     27       33       14  
General corporate     3,579       656       1,604  
    $ 21,184     $ 25,263     $ 11,249  
                         
Depreciation and amortization                        
Nightclubs   $ 6,401     $ 5,404     $ 5,186  
Bombshells     1,374       1,265       1,025  
Other     416       179       50  
General corporate     881       874       659  
    $ 9,072     $ 7,722     $ 6,920  

 

    September 30, 2019     September 30, 2018     September 30, 2017  
Total assets(1)                        
Nightclubs   $ 274,071     $ 252,335     $ 254,432  
Bombshells     44,144       39,560       18,870  
Other     1,773       1,978       780  
General corporate     33,649       35,859       25,802  
    $ 353,637     $ 329,732     $ 299,884  

 

(1) See Note 3 for a discussion of revision of prior year immaterial misstatement.

 

Excluded from revenues in the table above are intercompany rental revenues of the Nightclubs segment amounting to $10.0 million, $9.0 million, and $8.8 million for 2019, 2018, and 2017, respectively, and intercompany sales of Robust Energy Drink of Other segment amounting to $140,000, $26,000, and $0, for the same respective years. These revenue items 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.