HOUSTON, Dec. 16,
2024 /PRNewswire/ -- RCI Hospitality Holdings, Inc.
(Nasdaq: RICK) today reported results for the fiscal 2024 fourth
quarter and year ended September 30,
2024. The company also filed its Form 10-K today and
announced details of its "Back to Basics" Five-Year Capital
Allocation Plan.
|
Summary Financials
(in millions except EPS)
|
4Q24
|
4Q23
|
FY24
|
FY23
|
|
Total
revenues
|
$73.2
|
$75.3
|
$295.6
|
$293.8
|
|
EPS
|
$0.03
|
$0.23
|
$0.33
|
$3.13
|
|
Non-GAAP
EPS1
|
$1.63
|
$1.11
|
$4.72
|
$4.90
|
|
Impairments
and other charges, net
|
$10.1
|
$9.9
|
$36.6
|
$15.6
|
|
Net cash provided by
operating activities
|
$15.7
|
$12.1
|
$55.9
|
$59.1
|
|
Free cash
flow1
|
$13.2
|
$11.1
|
$48.4
|
$53.2
|
|
Net income attributable
to RCIHH common stockholders
|
$0.2
|
$2.2
|
$3.0
|
$29.2
|
|
Adjusted
EBITDA1
|
$17.9
|
$20.2
|
$72.6
|
$85.0
|
|
Weighted average shares
used in computing EPS – basic and diluted
|
9.01
|
9.42
|
9.25
|
9.34
|
|
1 See
"Non-GAAP Financial Measures" below
|
4Q24 Summary (Comparisons are to the year-ago
period unless indicated otherwise)
Eric Langan, President and CEO,
said: "Nightclubs same-store sales increased for the second quarter
in a row, the first time since the first half of FY23, but total
company sales declined due to a hurricane and fire, resulting in a
lower EPS. However, non-GAAP EPS, net cash provided by operating
activities, and free cash flow all increased. We ended FY24
with 8.955 million shares outstanding, down 4.7% year over year,
and have continued to buy back shares in the market."
"Back to Basics" FY25-29 Capital Allocation Plan
Mr. Langan continued: "RCI has grown significantly since we
initiated our Capital Allocation Strategy at year-end FY15. Revenue
has more than doubled, from $135
million to $296 million, a
CAGR of 9%. More importantly, free cash flow has more than tripled,
from $15 million to $48 million, a CAGR of 14%, while our share count
fell by 13%. We are proud of this achievement and thank all
employees, entertainers, and partners who made this possible."
"Looking ahead, we plan to build on this track record through a
'Back-to-Basics' strategy. Operationally, this means focusing on
our Nightclub business and improving Bombshells. For capital
allocation, this means focusing on club acquisitions and returning
more capital to shareholders, mainly through buybacks."
|
Operational
Priorities
|
Capital
Allocation
Priorities (% of
FCF)
|
FY29
Financial
Targets
|
|
Focus on Existing
Nightclubs
|
Nightclub Acquisitions:
50%
(includes debt
repayment)
|
Total Revenues:
$400M
|
|
Improve
Bombshells
|
Free Cash Flow:
$75M
|
|
Acquire New
Nightclubs
|
Share Buybacks &
Dividends: 50%
|
Shares Outstanding:
7.5M
|
X-Spaces Conference Call at 4:30 PM
ET Today
- Hosted by RCI President & CEO Eric
Langan, CFO Bradley Chhay,
and Mark Moran of Equity Animal
- Call link: https://x.com/i/spaces/1DXGydpRRRLKM (X log in
required)
- Presentation link:
https://www.rcihospitality.com/investor-relations/
- To ask questions: Participants must join the X Space using a
mobile device
- To listen only: Participants can access the X Space from a
computer
- There will be no other types of telephone or webcast
access
4Q24 Results (Comparisons are to the year-ago period
unless indicated otherwise)
Nightclubs segment: Revenues of $60.6 million decreased by 0.5%. Sales reflected
2.2% same-store sales growth, which was negatively impacted by 10
closure days at three Houston area
clubs due to the July hurricane. Sales also reflected three new and
reformatted clubs, the temporary closing of two clubs, and the
transition of two clubs to new formats and/or
hours.2
By type of revenue, alcoholic beverages increased by 0.3%; food,
merchandise and other increased by 0.9%; and service decreased by
1.7%. The differing growth rates primarily reflected higher alcohol
and food, and lower service sales from clubs acquired last
year.
The quarter included total impairments and other charges of
$6.9 million compared to $8.9 million, resulting in operating income of
$13.1 million (21.5% of segment
revenues) compared to $12.1 million
(19.8%). Non-GAAP operating income was $20.5
million (33.8% of segment revenues) compared to $21.6 million (35.4%). The difference in non-GAAP
operating margin reflected minimum wage increases that took effect
in July and September 2024 in various
locations.
Bombshells segment: Revenues of $11.9 million declined 12.1%. Sales reflected a
16.2% SSS decline, which was negatively impacted by 26 closure days
at five Houston area locations due
to the July hurricane. New sales from the Stafford location, which opened in
November 2023, partially offset the
early September 2024 divestiture of
the San Antonio
location.2
The quarter included total impairments and other charges of
$3.2 million compared to $0.2 million, resulting in an operating loss of
$2.5 million (-21.1% of segment
revenues) compared to income of $1.2
million (8.7%). Non-GAAP operating income was $0.7 million (5.9% of segment revenues) compared
to $1.4 million (10.4%). The
difference in non-GAAP operating margin reflects lower SSS and
weather related closures.
Corporate segment: Expenses totaled $7.1 million (9.7% of total revenues) compared to
$6.8 million (9.0%). Non-GAAP
expenses totaled $6.6 million (9.0%
of total revenues) compared to $6.3
million (8.4%).
Impairments and other charges, net of $10.1 million within consolidated operations
mainly included impairment of $7.0
million related to nine clubs and $5.5 million related to six Bombshells and the
food hall, and a $2.3 million net
gain from the elimination of debt from the sale of Bombshells San
Antonio.
Income tax was a benefit of $0.8
million compared to $0.6
million. The effective tax rate was a benefit of 15.7% in
FY24 compared to an expense of 19.0% in FY23.
Weighted average shares outstanding of 9.01 million
decreased 4.4% due to share buybacks partially offset by shares
issued in the 2Q23 Baby Dolls-Chicas Locas acquisition.
Share Repurchases: In 4Q24, RCI repurchased 174,790
common shares for $7.8 million
($44.81 average per share), resulting
in 8,955,000 shares of common stock outstanding and $21.0 million in remaining purchase
authorization. For all of FY24, RCI repurchased 442,639 shares for
$20.6 million ($46.55 average per share).
Debt was $238.2 million at
September 30, 2024 compared to
$245.4 million at June 30, 2024 and $239.8
million at September 30, 2023.
The June-September 2024 decline
primarily reflected elimination of Bombshells San Antonio debt and
scheduled pay downs.
|
2 See our
October 8, 2024, news release on 4Q24 sales for more
details
|
Non-GAAP Financial Measures
In addition to our financial information presented in accordance
with GAAP, management uses certain non-GAAP financial measures,
within the meaning of the SEC Regulation G, to clarify and enhance
understanding of past performance and prospects for the future.
Generally, a non-GAAP financial measure is a numerical measure of a
company's operating performance, financial position or cash flows
that excludes or includes amounts that are included in or excluded
from the most directly comparable measure calculated and presented
in accordance with GAAP. We monitor non-GAAP financial measures
because it describes the operating performance of the Company and
helps management and investors gauge our ability to generate cash
flow, excluding (or including) some items that management believes
are not representative of the ongoing business operations of the
Company, but are included in (or excluded from) the most directly
comparable measures calculated and presented in accordance with
GAAP. Relative to each of the non-GAAP financial measures, we
further set forth our rationale as follows:
Non-GAAP Operating Income and Non-GAAP Operating
Margin. We calculate non-GAAP operating income and
non-GAAP operating margin by excluding the following items from
income from operations and operating margin: (a) amortization of
intangibles, (b) impairment of assets, (c) gains or losses on sale
of businesses and assets, (d) gains or losses on insurance, (e)
settlement of lawsuits, and (f) stock-based compensation. We
believe that excluding these items assists investors in evaluating
period-over-period changes in our operating income and operating
margin without the impact of items that are not a result of our
day-to-day business and operations.
Non-GAAP Net Income and Non-GAAP Net Income per Diluted
Share. We calculate non-GAAP net income and non-GAAP net income
per diluted share by excluding or including certain items to net
income attributable to RCIHH common stockholders and diluted
earnings per share. Adjustment items are: (a) amortization of
intangibles, (b) impairment of assets, (c) gains or losses on sale
of businesses and assets, (d) gains or losses on insurance, (e)
settlement of lawsuits, (f) gain on debt extinguishment, (g)
stock-based compensation, (h) the income tax effect of the
above-described adjustments, and (i) change in deferred tax asset
valuation allowance. Included in the income tax effect of the above
adjustments is the net effect of the non-GAAP provision for income
taxes, calculated at 0.0%, 20.6%, and 22.8% effective tax rate
of the pre-tax non-GAAP income before taxes for 2024, 2023, and
2022, respectively, and the GAAP income tax expense. We believe
that excluding and including such items help management and
investors better understand our operating activities.
Adjusted EBITDA. We calculate adjusted EBITDA by
excluding the following items from net income attributable to RCIHH
common stockholders: (a) depreciation and amortization, (b) income
tax expense, (c) net interest expense, (d) gains or losses on sale
of businesses and assets, (e) gains or losses on insurance, (f)
impairment of assets, (g) settlement of lawsuits, (h) gain on debt
extinguishment, and (i) stock-based compensation. We believe that
adjusting for such items helps management and investors better
understand our operating activities. Adjusted EBITDA provides a
core operational performance measurement that compares results
without the need to adjust for federal, state and local taxes which
have considerable variation between domestic jurisdictions. The
results are, therefore, without consideration of financing
alternatives of capital employed. We use adjusted EBITDA as one
guideline to assess the unleveraged performance return on our
investments. Adjusted EBITDA multiple is also used as a target
benchmark for our acquisitions of nightclubs.
We also use certain non-GAAP cash flow measures such as free
cash flow. Free cash flow is derived from net cash provided by
operating activities less maintenance capital expenditures. We use
free cash flow as the baseline for the implementation of our
capital allocation strategy.
About RCI Hospitality Holdings, Inc. (Nasdaq: RICK) (X:
@RCIHHinc)
With more than 60 locations, RCI Hospitality Holdings, Inc.,
through its subsidiaries, is the country's leading company in adult
nightclubs and sports bars-restaurants. See all our brands at
www.rcihospitality.com.
Forward-Looking Statements
This press release may contain forward-looking statements that
involve a number of risks and uncertainties that could cause the
company's actual results to differ materially from those indicated,
including, but not limited to, the risks and uncertainties
associated with (i) operating and managing an adult entertainment
or restaurant business, (ii) the business climates in cities where
it operates, (iii) the success or lack thereof in launching and
building the company's businesses, (iv) cyber security, (v)
conditions relevant to real estate transactions, (vi) the impact of
the COVID-19 pandemic, and (vii) numerous other factors such as
laws governing the operation of adult entertainment or restaurant
businesses, competition and dependence on key personnel. For more
detailed discussion of such factors and certain risks and
uncertainties, see RCI's annual report on Form 10-K for the year
ended September 30, 2024, as well as
its other filings with the U.S. Securities and Exchange Commission.
The company has no obligation to update or revise the
forward-looking statements to reflect the occurrence of future
events or circumstances.
Media & Investor Contacts
Gary Fishman and Steven Anreder at 212-532-3232 or
gary.fishman@anreder.com and steven.anreder@anreder.com
|
RCI HOSPITALITY
HOLDINGS, INC.
|
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
(in thousands, except
per share, number of shares, and percentage data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
|
|
For the Twelve
Months Ended
|
|
September 30,
2024
|
|
September 30,
2023
|
|
September 30,
2024
|
|
September 30,
2023
|
|
Amount
|
|
% of
Revenue
|
|
Amount
|
|
% of
Revenue
|
|
Amount
|
|
% of
Revenue
|
|
Amount
|
|
% of
Revenue
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales of alcoholic
beverages
|
$
32,459
|
|
44.3 %
|
|
$
33,325
|
|
44.3 %
|
|
$
133,124
|
|
45.0 %
|
|
$
127,262
|
|
43.3 %
|
|
Sales of food and
merchandise
|
11,000
|
|
15.0 %
|
|
11,149
|
|
14.8 %
|
|
44,606
|
|
15.1 %
|
|
43,906
|
|
14.9 %
|
|
Service
revenues
|
24,504
|
|
33.5 %
|
|
25,661
|
|
34.1 %
|
|
98,455
|
|
33.3 %
|
|
103,577
|
|
35.3 %
|
|
Other
|
5,271
|
|
7.2 %
|
|
5,115
|
|
6.8 %
|
|
19,419
|
|
6.6 %
|
|
19,045
|
|
6.5 %
|
|
Total
revenues
|
73,234
|
|
100.0 %
|
|
75,250
|
|
100.0 %
|
|
295,604
|
|
100.0 %
|
|
293,790
|
|
100.0 %
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alcoholic beverages
sold
|
5,783
|
|
17.8 %
|
|
6,155
|
|
18.5 %
|
|
24,228
|
|
18.2 %
|
|
23,291
|
|
18.3 %
|
|
Food and merchandise
sold
|
4,132
|
|
37.6 %
|
|
4,000
|
|
35.9 %
|
|
16,360
|
|
36.7 %
|
|
15,429
|
|
35.1 %
|
|
Service and
other
|
286
|
|
1.0 %
|
|
191
|
|
0.6 %
|
|
397
|
|
0.3 %
|
|
282
|
|
0.2 %
|
|
Total cost of goods
sold (exclusive of
items shown below)
|
10,201
|
|
13.9 %
|
|
10,346
|
|
13.7 %
|
|
40,985
|
|
13.9 %
|
|
39,002
|
|
13.3 %
|
|
Salaries and
wages
|
20,878
|
|
28.5 %
|
|
20,818
|
|
27.7 %
|
|
84,177
|
|
28.5 %
|
|
79,500
|
|
27.1 %
|
|
Selling, general and
administrative
|
24,761
|
|
33.8 %
|
|
24,463
|
|
32.5 %
|
|
99,672
|
|
33.7 %
|
|
93,024
|
|
31.7 %
|
|
Depreciation and
amortization
|
3,757
|
|
5.1 %
|
|
4,043
|
|
5.4 %
|
|
15,395
|
|
5.2 %
|
|
15,151
|
|
5.2 %
|
|
Impairments and other
charges, net
|
10,118
|
|
13.8 %
|
|
9,936
|
|
13.2 %
|
|
36,570
|
|
12.4 %
|
|
15,629
|
|
5.3 %
|
|
Total operating
expenses
|
69,715
|
|
95.2 %
|
|
69,606
|
|
92.5 %
|
|
276,799
|
|
93.6 %
|
|
242,306
|
|
82.5 %
|
|
Income from
operations
|
3,519
|
|
4.8 %
|
|
5,644
|
|
7.5 %
|
|
18,805
|
|
6.4 %
|
|
51,484
|
|
17.5 %
|
|
Other income
(expenses)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
(4,224)
|
|
(5.8) %
|
|
(4,246)
|
|
(5.6) %
|
|
(16,679)
|
|
(5.6) %
|
|
(15,926)
|
|
(5.4) %
|
|
Interest
income
|
162
|
|
0.2 %
|
|
120
|
|
0.2 %
|
|
482
|
|
0.2 %
|
|
388
|
|
0.1 %
|
|
Income before income
taxes
|
(543)
|
|
(0.7) %
|
|
1,518
|
|
2.0 %
|
|
2,608
|
|
0.9 %
|
|
35,946
|
|
12.2 %
|
|
Income tax expense
(benefit)
|
(788)
|
|
(1.1) %
|
|
(601)
|
|
(0.8) %
|
|
(410)
|
|
(0.1) %
|
|
6,846
|
|
2.3 %
|
|
Net income
|
245
|
|
0.3 %
|
|
2,119
|
|
2.8 %
|
|
3,018
|
|
1.0 %
|
|
29,100
|
|
9.9 %
|
|
Net loss (income)
attributable to
noncontrolling interests
|
(1)
|
|
— %
|
|
72
|
|
0.1 %
|
|
(7)
|
|
— %
|
|
146
|
|
— %
|
|
Net income attributable
to RCIHH
common shareholders
|
$
244
|
|
0.3 %
|
|
$
2,191
|
|
2.9 %
|
|
$
3,011
|
|
1.0 %
|
|
$
29,246
|
|
10.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
$
0.03
|
|
|
|
$
0.23
|
|
|
|
$
0.33
|
|
|
|
$
3.13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
used in
computing earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
9,006,014
|
|
|
|
9,417,166
|
|
|
|
9,250,245
|
|
|
|
9,335,983
|
|
|
|
RCI HOSPITALITY
HOLDINGS, INC.
|
|
SEGMENT
INFORMATION
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
|
|
For the Twelve
Months Ended
|
|
September 30,
2024
|
|
September 30,
2023
|
|
September 30,
2024
|
|
September 30,
2023
|
|
Revenues
|
|
|
|
|
|
|
|
|
Nightclubs
|
$
60,636
|
|
$
60,943
|
|
$
243,864
|
|
$
236,748
|
|
Bombshells
|
11,937
|
|
13,580
|
|
50,578
|
|
55,723
|
|
Other
|
661
|
|
727
|
|
1,162
|
|
1,319
|
|
$
73,234
|
|
$
75,250
|
|
$
295,604
|
|
$
293,790
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
|
|
|
|
|
|
|
|
Nightclubs
|
$
13,064
|
|
$
12,060
|
|
$
58,094
|
|
$
73,187
|
|
Bombshells
|
(2,517)
|
|
1,179
|
|
(10,646)
|
|
6,502
|
|
Other
|
58
|
|
(793)
|
|
(523)
|
|
(1,446)
|
|
Corporate
|
(7,086)
|
|
(6,802)
|
|
(28,120)
|
|
(26,759)
|
|
$
3,519
|
|
$
5,644
|
|
$
18,805
|
|
$
51,484
|
|
RCI HOSPITALITY
HOLDINGS, INC.
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
|
|
For the Twelve
Months Ended
|
|
September 30,
2024
|
|
September 30,
2023
|
|
September 30,
2024
|
|
September 30,
2023
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
Net income
|
$
245
|
|
$
2,119
|
|
$
3,018
|
|
$
29,100
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
3,757
|
|
4,043
|
|
15,395
|
|
15,151
|
|
Impairment of
assets
|
12,553
|
|
9,336
|
|
38,517
|
|
12,629
|
|
Deferred income tax
benefit
|
(31)
|
|
(991)
|
|
(6,450)
|
|
(1,781)
|
|
Loss (gain) on sale of
businesses and assets
|
(2,331)
|
|
2
|
|
(2,215)
|
|
(870)
|
|
Amortization and
writeoff of debt discount and issuance costs
|
146
|
|
162
|
|
608
|
|
615
|
|
Doubtful accounts
expense on notes receivable
|
(22)
|
|
—
|
|
—
|
|
—
|
|
Loss (gain) on
insurance
|
(522)
|
|
14
|
|
(522)
|
|
(77)
|
|
Noncash lease
expense
|
662
|
|
752
|
|
2,980
|
|
2,978
|
|
Stock-based
compensation
|
470
|
|
471
|
|
1,882
|
|
2,588
|
|
Changes in operating
assets and liabilities, net of business
acquisitions:
|
|
|
|
|
|
|
|
|
Receivables
|
1,231
|
|
(3,863)
|
|
4,283
|
|
(2,383)
|
|
Inventories
|
(97)
|
|
98
|
|
(309)
|
|
177
|
|
Prepaid expenses,
other current, and other assets
|
1,063
|
|
3,236
|
|
(2,421)
|
|
(366)
|
|
Accounts payable,
accrued, and other liabilities
|
(1,473)
|
|
(3,253)
|
|
1,118
|
|
1,369
|
|
Net cash provided by
operating activities
|
15,651
|
|
12,126
|
|
55,884
|
|
59,130
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
Proceeds from sale of
businesses and assets
|
19
|
|
1,434
|
|
1,969
|
|
4,245
|
|
Proceeds from
insurance
|
1,367
|
|
(5)
|
|
1,367
|
|
86
|
|
Proceeds from notes
receivable
|
70
|
|
59
|
|
249
|
|
229
|
|
Payments for property
and equipment and intangible assets
|
(5,381)
|
|
(9,265)
|
|
(24,600)
|
|
(40,384)
|
|
Acquisition of
businesses, net of cash acquired
|
—
|
|
—
|
|
—
|
|
(29,000)
|
|
Net cash used in
investing activities
|
(3,925)
|
|
(7,777)
|
|
(21,015)
|
|
(64,824)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
Proceeds from debt
obligations
|
—
|
|
—
|
|
22,657
|
|
11,595
|
|
Payments on debt
obligations
|
(5,864)
|
|
(4,219)
|
|
(23,001)
|
|
(15,650)
|
|
Purchase of treasury
stock
|
(7,831)
|
|
(2,125)
|
|
(20,606)
|
|
(2,223)
|
|
Payment of
dividends
|
(628)
|
|
(566)
|
|
(2,302)
|
|
(2,146)
|
|
Payment of loan
origination costs
|
—
|
|
—
|
|
(290)
|
|
(239)
|
|
Share in return of
investment by noncontrolling partner
|
—
|
|
—
|
|
—
|
|
(600)
|
|
Net cash used in
financing activities
|
(14,323)
|
|
(6,910)
|
|
(23,542)
|
|
(9,263)
|
|
NET INCREASE (DECREASE)
IN CASH AND CASH EQUIVALENTS
|
(2,597)
|
|
(2,561)
|
|
11,327
|
|
(14,957)
|
|
CASH AND CASH
EQUIVALENTS AT BEGINNING OF PERIOD
|
34,947
|
|
23,584
|
|
21,023
|
|
35,980
|
|
CASH AND CASH
EQUIVALENTS AT END OF PERIOD
|
$
32,350
|
|
$
21,023
|
|
$
32,350
|
|
$
21,023
|
|
RCI HOSPITALITY
HOLDINGS, INC.
|
|
CONSOLIDATED BALANCE
SHEETS
|
|
(in
thousands)
|
|
|
|
|
|
September 30,
2024
|
|
September 30,
2023
|
|
ASSETS
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
$
32,350
|
|
$
21,023
|
|
Receivables,
net
|
5,563
|
|
9,846
|
|
Current portion of
notes receivable
|
269
|
|
249
|
|
Inventories
|
4,676
|
|
4,412
|
|
Prepaid expenses and
other current assets
|
4,427
|
|
1,943
|
|
Total current
assets
|
47,285
|
|
37,473
|
|
Property and equipment,
net
|
280,075
|
|
282,705
|
|
Operating lease
right-of-use assets, net
|
26,231
|
|
34,931
|
|
Notes receivable, net
of current portion
|
4,174
|
|
4,443
|
|
Goodwill
|
61,911
|
|
70,772
|
|
Intangibles,
net
|
163,461
|
|
179,145
|
|
Other assets
|
1,227
|
|
1,415
|
|
Total
assets
|
$
584,364
|
|
$
610,884
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts
payable
|
$
5,637
|
|
$
6,111
|
|
Accrued
liabilities
|
20,280
|
|
16,051
|
|
Current portion of debt
obligations, net
|
18,871
|
|
22,843
|
|
Current portion of
operating lease liabilities
|
3,290
|
|
2,977
|
|
Total current
liabilities
|
48,078
|
|
47,982
|
|
Deferred tax liability,
net
|
22,693
|
|
29,143
|
|
Debt, net of current
portion and debt discount and issuance costs
|
219,326
|
|
216,908
|
|
Operating lease
liabilities, net of current portion
|
30,759
|
|
35,175
|
|
Other long-term
liabilities
|
398
|
|
352
|
|
Total
liabilities
|
321,254
|
|
329,560
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
Preferred
stock
|
—
|
|
—
|
|
Common stock
|
90
|
|
94
|
|
Additional paid-in
capital
|
61,511
|
|
80,437
|
|
Retained
earnings
|
201,759
|
|
201,050
|
|
Total RCIHH
stockholders' equity
|
263,360
|
|
281,581
|
|
Noncontrolling
interests
|
(250)
|
|
(257)
|
|
Total
equity
|
263,110
|
|
281,324
|
|
Total liabilities and
equity
|
$
584,364
|
|
$
610,884
|
|
RCI HOSPITALITY
HOLDINGS, INC.
|
|
NON-GAAP FINANCIAL
MEASURES
|
|
(in thousands, except
per share and percentage data)
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
|
|
For the Twelve
Months Ended
|
|
September 30,
2024
|
|
September 30,
2023
|
|
September 30,
2024
|
|
September 30,
2023
|
|
Reconciliation of
GAAP net income to Adjusted EBITDA
|
|
|
|
|
|
|
|
|
Net income attributable
to RCIHH common stockholders
|
$
244
|
|
$
2,191
|
|
$
3,011
|
|
$
29,246
|
|
Income tax expense
(benefit)
|
(788)
|
|
(601)
|
|
(410)
|
|
6,846
|
|
Interest expense,
net
|
4,062
|
|
4,126
|
|
16,197
|
|
15,538
|
|
Depreciation and
amortization
|
3,757
|
|
4,043
|
|
15,395
|
|
15,151
|
|
Impairment of
assets
|
12,553
|
|
9,336
|
|
38,517
|
|
12,629
|
|
Settlement of
lawsuits
|
212
|
|
576
|
|
520
|
|
3,759
|
|
Loss (gain) on sale of
businesses and assets
|
(2,320)
|
|
10
|
|
(2,140)
|
|
(682)
|
|
Loss (gain) on
insurance
|
(327)
|
|
14
|
|
(327)
|
|
(77)
|
|
Stock-based
compensation
|
470
|
|
471
|
|
1,882
|
|
2,588
|
|
Adjusted
EBITDA
|
$
17,863
|
|
$
20,166
|
|
$
72,645
|
|
$
84,998
|
|
|
|
|
|
|
|
|
|
Reconciliation of
GAAP net income to non-GAAP net income
|
|
|
|
|
|
|
|
|
Net income attributable
to RCIHH common stockholders
|
$
244
|
|
$
2,191
|
|
$
3,011
|
|
$
29,246
|
|
Amortization of
intangibles
|
597
|
|
806
|
|
2,494
|
|
3,528
|
|
Impairment of
assets
|
12,553
|
|
9,336
|
|
38,517
|
|
12,629
|
|
Settlement of
lawsuits
|
212
|
|
576
|
|
520
|
|
3,759
|
|
Stock-based
compensation
|
470
|
|
471
|
|
1,882
|
|
2,588
|
|
Loss (gain) on sale of
businesses and assets
|
(2,320)
|
|
10
|
|
(2,140)
|
|
(682)
|
|
Loss (gain) on
insurance
|
(327)
|
|
14
|
|
(327)
|
|
(77)
|
|
Change in deferred tax
asset valuation allowance
|
143
|
|
(176)
|
|
143
|
|
(176)
|
|
Net income tax
effect
|
3,065
|
|
(2,810)
|
|
(410)
|
|
(5,068)
|
|
Non-GAAP net
income
|
$
14,637
|
|
$
10,418
|
|
$
43,690
|
|
$
45,747
|
|
|
|
|
|
|
|
|
|
Reconciliation of
GAAP diluted earnings per share to non-GAAP diluted
earnings per share
|
|
|
|
|
|
|
|
|
Diluted
shares
|
9,006,014
|
|
9,417,166
|
|
9,250,245
|
|
9,335,983
|
|
GAAP diluted earnings
per share
|
$
0.03
|
|
$
0.23
|
|
$
0.33
|
|
$
3.13
|
|
Amortization of
intangibles
|
0.07
|
|
0.09
|
|
0.27
|
|
0.38
|
|
Impairment of
assets
|
1.39
|
|
0.99
|
|
4.16
|
|
1.35
|
|
Settlement of
lawsuits
|
0.02
|
|
0.06
|
|
0.06
|
|
0.40
|
|
Stock-based
compensation
|
0.05
|
|
0.05
|
|
0.20
|
|
0.28
|
|
Loss (gain) on sale of
businesses and assets
|
(0.26)
|
|
—
|
|
(0.23)
|
|
(0.07)
|
|
Loss (gain) on
insurance
|
(0.04)
|
|
—
|
|
(0.04)
|
|
(0.01)
|
|
Change in deferred tax
asset valuation allowance
|
0.02
|
|
(0.02)
|
|
0.02
|
|
(0.02)
|
|
Net income tax
effect
|
0.34
|
|
(0.30)
|
|
(0.04)
|
|
(0.54)
|
|
Non-GAAP diluted
earnings per share
|
$
1.63
|
|
$
1.11
|
|
$
4.72
|
|
$
4.90
|
|
|
|
|
|
|
|
|
|
Reconciliation of
GAAP operating income to non-GAAP operating income
|
|
|
|
|
|
|
|
|
Income from
operations
|
$
3,519
|
|
$
5,644
|
|
$
18,805
|
|
$
51,484
|
|
Amortization of
intangibles
|
597
|
|
806
|
|
2,494
|
|
3,528
|
|
Impairment of
assets
|
12,553
|
|
9,336
|
|
38,517
|
|
12,629
|
|
Settlement of
lawsuits
|
212
|
|
576
|
|
520
|
|
3,759
|
|
Loss (gain) on sale of
businesses and assets
|
(2,320)
|
|
10
|
|
(2,140)
|
|
(682)
|
|
Loss (gain) on
insurance
|
(327)
|
|
14
|
|
(327)
|
|
(77)
|
|
Stock-based
compensation
|
470
|
|
471
|
|
1,882
|
|
2,588
|
|
Non-GAAP operating
income
|
$
14,704
|
|
$
16,857
|
|
$
59,751
|
|
$
73,229
|
|
|
|
|
|
|
|
|
|
Reconciliation of
GAAP operating margin to non-GAAP operating margin
|
|
|
|
|
|
|
|
|
GAAP operating
margin
|
4.8 %
|
|
7.5 %
|
|
6.4 %
|
|
17.5 %
|
|
Amortization of
intangibles
|
0.8 %
|
|
1.1 %
|
|
0.8 %
|
|
1.2 %
|
|
Impairment of
assets
|
17.1 %
|
|
12.4 %
|
|
13.0 %
|
|
4.3 %
|
|
Settlement of
lawsuits
|
0.3 %
|
|
0.8 %
|
|
0.2 %
|
|
1.3 %
|
|
Loss (gain) on sale of
businesses and assets
|
(3.2) %
|
|
— %
|
|
(0.7) %
|
|
(0.2) %
|
|
Loss (gain) on
insurance
|
(0.4) %
|
|
— %
|
|
(0.1) %
|
|
— %
|
|
Stock-based
compensation
|
0.6 %
|
|
0.6 %
|
|
0.6 %
|
|
0.9 %
|
|
Non-GAAP operating
margin
|
20.1 %
|
|
22.4 %
|
|
20.2 %
|
|
24.9 %
|
|
|
|
|
|
|
|
|
|
Reconciliation of
net cash provided by operating activities to free cash
flow
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
$
15,651
|
|
$
12,126
|
|
$
55,884
|
|
$
59,130
|
|
Less: Maintenance
capital expenditures
|
2,483
|
|
1,005
|
|
7,463
|
|
5,954
|
|
Free cash
flow
|
$
13,168
|
|
$
11,121
|
|
$
48,421
|
|
$
53,176
|
|
RCI HOSPITALITY
HOLDINGS, INC.
|
|
NON-GAAP SEGMENT
INFORMATION
|
|
($ in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended September 30, 2024
|
|
For the Three Months
Ended September 30, 2023
|
|
Nightclubs
|
|
Bombshells
|
|
Other
|
|
Corporate
|
|
Total
|
|
Nightclubs
|
|
Bombshells
|
|
Other
|
|
Corporate
|
|
Total
|
|
Income (loss) from
operations
|
$
13,064
|
|
$
(2,517)
|
|
$
58
|
|
$
(7,086)
|
|
$ 3,519
|
|
$
12,060
|
|
$ 1,179
|
|
$
(793)
|
|
$
(6,802)
|
|
$ 5,644
|
|
Amortization of
intangibles
|
576
|
|
11
|
|
—
|
|
10
|
|
597
|
|
617
|
|
30
|
|
155
|
|
4
|
|
806
|
|
Impairment of
assets
|
7,039
|
|
5,514
|
|
—
|
|
—
|
|
12,553
|
|
8,522
|
|
—
|
|
814
|
|
—
|
|
9,336
|
|
Settlement of
lawsuits
|
157
|
|
25
|
|
—
|
|
30
|
|
212
|
|
378
|
|
198
|
|
—
|
|
—
|
|
576
|
|
Stock-based
compensation
|
—
|
|
—
|
|
—
|
|
470
|
|
470
|
|
—
|
|
—
|
|
—
|
|
471
|
|
471
|
|
Loss (gain) on sale of
businesses and assets
|
14
|
|
(2,332)
|
|
—
|
|
(2)
|
|
(2,320)
|
|
—
|
|
11
|
|
—
|
|
(1)
|
|
10
|
|
Loss (gain) on
insurance
|
(327)
|
|
—
|
|
—
|
|
—
|
|
(327)
|
|
—
|
|
—
|
|
—
|
|
14
|
|
14
|
|
Non-GAAP operating
income (loss)
|
$
20,523
|
|
$
701
|
|
$
58
|
|
$
(6,578)
|
|
$
14,704
|
|
$
21,577
|
|
$ 1,418
|
|
$
176
|
|
$
(6,314)
|
|
$
16,857
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
margin
|
21.5 %
|
|
(21.1) %
|
|
8.8 %
|
|
(9.7) %
|
|
4.8 %
|
|
19.8 %
|
|
8.7 %
|
|
(109.1) %
|
|
(9.0) %
|
|
7.5 %
|
|
Non-GAAP operating
margin
|
33.8 %
|
|
5.9 %
|
|
8.8 %
|
|
(9.0) %
|
|
20.1 %
|
|
35.4 %
|
|
10.4 %
|
|
24.2 %
|
|
(8.4) %
|
|
22.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Twelve
Months Ended September 30, 2024
|
|
For the Twelve
Months Ended September 30, 2023
|
|
Nightclubs
|
|
Bombshells
|
|
Other
|
|
Corporate
|
|
Total
|
|
Nightclubs
|
|
Bombshells
|
|
Other
|
|
Corporate
|
|
Total
|
|
Income (loss) from
operations
|
$
58,094
|
|
$
(10,646)
|
|
$
(523)
|
|
$
(28,120)
|
|
$
18,805
|
|
$
73,187
|
|
$ 6,502
|
|
$
(1,446)
|
|
$
(26,759)
|
|
$
51,484
|
|
Amortization of
intangibles
|
2,334
|
|
137
|
|
—
|
|
23
|
|
2,494
|
|
2,497
|
|
530
|
|
484
|
|
17
|
|
3,528
|
|
Impairment of
assets
|
22,691
|
|
15,826
|
|
—
|
|
—
|
|
38,517
|
|
11,815
|
|
—
|
|
814
|
|
—
|
|
12,629
|
|
Settlement of
lawsuits
|
465
|
|
25
|
|
—
|
|
30
|
|
520
|
|
3,552
|
|
207
|
|
—
|
|
—
|
|
3,759
|
|
Stock-based
compensation
|
—
|
|
—
|
|
—
|
|
1,882
|
|
1,882
|
|
—
|
|
—
|
|
—
|
|
2,588
|
|
2,588
|
|
Loss (gain) on sale of
businesses and assets
|
(56)
|
|
(2,322)
|
|
—
|
|
238
|
|
(2,140)
|
|
(734)
|
|
77
|
|
—
|
|
(25)
|
|
(682)
|
|
Gain on
insurance
|
(327)
|
|
—
|
|
—
|
|
—
|
|
(327)
|
|
(48)
|
|
—
|
|
—
|
|
(29)
|
|
(77)
|
|
Non-GAAP operating
income (loss)
|
$
83,201
|
|
$ 3,020
|
|
$
(523)
|
|
$
(25,947)
|
|
$
59,751
|
|
$
90,269
|
|
$ 7,316
|
|
$
(148)
|
|
$
(24,208)
|
|
$
73,229
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
margin
|
23.8 %
|
|
(21.0) %
|
|
(45.0) %
|
|
(9.5) %
|
|
6.4 %
|
|
30.9 %
|
|
11.7 %
|
|
(109.6) %
|
|
(9.1) %
|
|
17.5 %
|
|
Non-GAAP operating
margin
|
34.1 %
|
|
6.0 %
|
|
(45.0) %
|
|
(8.8) %
|
|
20.2 %
|
|
38.1 %
|
|
13.1 %
|
|
(11.2) %
|
|
(8.2) %
|
|
24.9 %
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/rci-reports-4q24--fy24-results-launches-5-year-capital-allocation-plan-hosts-430-pm-et-x-spaces-call-today-302332966.html
SOURCE RCI Hospitality Holdings, Inc.
