RCI HOSPITALITY HOLDINGS, INC.RICK

RCI HOSPITALITY HOLDINGS, INC. Segments Disclosure

10-KFiled Mar 19, 20263 min read
Segment Information
The Company owns and operates adult nightclubs and Bombshells Restaurants and Bars. The Company has identified such segments based on how the chief operating decision maker assigns management responsibility, how financial information is regularly reviewed, the nature of the Company’s products, services and costs, regulatory environments, and how resources are allocated. There are no major distinctions in geographical areas served as all operations are in the United States. The Company's chief operating decision maker is its chief executive officer. 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):
202520242023
NightclubsBombshellsTotalNightclubsBombshellsTotalNightclubsBombshellsTotal
Revenues
Third party$242,501 $35,810 $278,311 $243,864 $50,578 $294,442 $236,748 $55,723 $292,471 
Intersegment4,610 — 4,610 4,049 — 4,049 3,355 — 3,355 
247,111 35,810 282,921 247,913 50,578 298,491 240,103 55,723 295,826 
Reconciliation of revenue
Other revenues, including intersegment1,383 1,432 1,573 
Elimination of intersegment revenues(4,870)(4,319)(3,609)
Total consolidated revenues279,434 295,604 293,790 
Less:
Cost of goods sold, including intersegment27,722 8,572 36,294 28,411 12,212 40,623 26,266 12,486 38,752 
Salaries and wages56,969 11,636 68,605 54,217 14,643 68,860 50,489 14,949 65,438 
Selling, general, and administrative, including intersegment69,994 17,418 87,412 68,728 21,846 90,574 61,363 21,665 83,028 
Depreciation and amortization12,662 1,344 14,006 11,823 2,399 14,222 10,871 2,574 13,445 
Impairment and other charges, net5,585 460 6,045 22,773 13,529 36,302 14,585 284 14,869 
Other segment items— (979)(979)— — — — — — 
Segment income (loss)74,179 (2,641)71,538 61,961 (14,051)47,910 76,529 3,765 80,294 
Reconciliation of segment income (loss)
Other income (loss)(218)(179)(1,427)
Interest income (expense), net(15,787)(16,197)(15,538)
Elimination of intersegment income(6)— — 
Unallocated corporate overhead(40,079)(28,926)(27,383)
Consolidated income before income taxes15,448 2,608 35,946 
202520242023
NightclubsBombshellsTotalNightclubsBombshellsTotalNightclubsBombshellsTotal
Segment capital expenditures5,054 8,460 13,514 9,922 8,080 18,002 11,840 16,578 28,418 
Reconciliation to consolidated capital expenditures
Other operating segments548 5,114 8,400 
Unallocated corporate465 1,484 3,566 
Consolidated capital expenditures14,527 24,600 40,384 
Segment assets - end of year477,644 75,582 553,226 455,756 79,410 535,166 483,563 85,215 568,778 
Reconciliation to consolidated total assets
Other operating segments7,942 12,984 6,936 
Unallocated corporate35,767 36,214 35,170 
Consolidated total assets596,935 584,364 610,884 
General corporate overhead 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, unallocated self-insurance reserve, 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.
In adopting ASU 2023-07, we recast one of our shared-services subsidiary from Other to Corporate. We also recast three previously planned and previously reported casino-related subsidiaries classified in Other to Nightclubs and Bombshells

Historical Timeline

Fiscal YearFiled
2025Mar 19, 2026Showing above
2024Dec 16, 2024
2023Dec 14, 2023
2022Dec 14, 2022
2021Dec 14, 2021
2020Dec 14, 2020
2019Feb 13, 2020
2018Dec 31, 2018
2017Feb 14, 2018
2016Dec 13, 2016
2015Dec 14, 2015

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Other Available Disclosures

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