|
Summary Financials (in millions except EPS) |
3Q23 |
3Q22 |
9M23 |
9M22 |
|
Total revenues |
$77.1 |
$70.7 |
$218.5 |
$196.2 |
|
EPS |
$0.96 |
$1.48 |
$2.91 |
$3.76 |
|
Non-GAAP EPS1 |
$1.30 |
$1.60 |
$3.80 |
$3.89 |
|
Net cash from operating activities |
$15.3 |
$18.9 |
$47.0 |
$46.8 |
|
Free cash flow1 |
$14.3 |
$18.02 |
$42.1 |
$44.42 |
|
Net income attributable to RCIHH common stockholders |
$9.1 |
$13.9 |
$27.1 |
$35.4 |
|
Adjusted EBITDA1 |
$22.7 |
$24.6 |
$64.8 |
$62.5 |
|
Weighted average shares used in computing EPS – basic and diluted |
9.43 |
9.39 |
9.31 |
9.43 |
|
1 |
See “Non-GAAP Financial Measures” below |
|
2 |
3Q22 and 9M22 free cash flow included receipt of $2.2M tax refund |
Eric Langan, President and CEO of RCI Hospitality Holdings, Inc., said: “Third quarter revenues of $77.1 million increased 9.0% year over year, generating free cash flow of $14.3 million and adjusted EBITDA of $22.7 million. As a result, FCF and adjusted EBITDA margins were generally in line year-to-date with our respective 20% and 30% targets.
“It should be noted the year-ago quarter, aided by the end of Covid restrictions, had one of the highest levels of operating leverage that we have experienced the last five years which affects direct comparisons to 3Q23. Having said that, we do believe 3Q23 same store sales were held back by the increase in vacation travel, the extreme Texas heat, and economic uncertainty.”
“To date in 4Q23, we have repurchased 10,440 common shares for $725,423 or an average of $69.48 each. Currently, we still have $18.0 million in available stock repurchase authorization.”
“Later in 4Q23, we expect to open a new Bombshells in Stafford, TX. In FY24, we plan to relaunch a temporarily closed club and open two new clubs in Fort Worth and in Lubbock, TX. We are working on the launch of three new Bombshells in Lubbock and Rowlett, TX, and downtown Denver. We also hope to open our Rick’s Cabaret Steakhouse & Casino and Bombshells Sports Casino, both in Central City, CO, and we will continue to pursue new club acquisitions in FY24.”
Conference Call at 4:30 PM ET TodayParticipants need to use X (formerly Twitter) Spaces on their mobile phones to ask questions during the Q&A
Meet Management at 7:00 PM ET Tonight
Investors are invited to Meet Management at one of RCI’s top revenue generating clubs
Rick’s Cabaret New York, 50 W 33rd St, New York, NY 10001
RSVP your contact information to [email protected] by 5:00 PM ET today
3Q23 Segments (Comparisons are to 3Q22 unless indicated otherwise)
Nightclubs: Revenues were $62.4 million, an increase of 14.2%, primarily reflecting an increase from newly acquired and remodeled clubs, partially offset by a same-store sales decline.3 By revenue type, service increased 4.8%, alcoholic beverage 24.1%, and food, merchandise and other 17.7%. The year-over-year changes reflect in part the lower proportion of service revenues in the newly acquired Baby Dolls-Chicas Locas clubs sales mix as compared to Nightclubs average. Operating income was $20.4 million compared to $22.5 million or 32.7% of revenues compared to 41.1%. 3Q23 included higher impairment and amortization of SOB licenses. Non-GAAP operating income was $23.6 million compared to $23.3 million or 37.7% of revenues compared to 42.7%.
Bombshells: Revenues were $14.4 million, a decline of 8.8%, primarily reflecting a decline in same-store sales, partially offset by an increase from newly acquired and opened units.3 By revenue type, food and merchandise fell 11.8% and alcoholic beverage decreased 7.7%. Operating income was $1.7 million compared to $3.1 million or 11.8% of revenues compared to 19.4%. Non-GAAP operating income was $1.8 million compared to $3.7 million or 12.8% of revenues compared to 23.6%. The change in Bombshells performance mainly reflects higher year-ago guest traffic and customer spending.
3See our July 11, 2023 news release on 3Q23 sales for more details
3Q23 Consolidated (Comparisons are to 3Q22 and % are of total revenues unless indicated otherwise)
Operating margin was 20.1% compared to 29.0%. On a non-GAAP basis, it was 25.3% compared to 31.2%. The year-over-year difference reflects 3Q22’s unusually high operating leverage. Otherwise, 3Q23’s non-GAAP operating margin was in line with 1Q23’s 25.6% and 2Q23’s 26.6%.
Interest expense was 5.6% compared to 4.3% as a result of higher average debt mostly from seller-financed promissory notes related to FY22-23 acquisitions.
Weighted average shares outstanding increased 0.4% year over year due to shares used in the 2Q23 Baby Dolls-Chicas Locas acquisition.
Debt: $243.8 million at 6/30/23 compared to $245.8 million at 3/31/23 primarily due to paydowns.
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) unrealized gains or losses on equity securities, (f) settlement of lawsuits, (g) gain on debt extinguishment, (h) stock-based compensation, and (i) the income tax effect of the above-described adjustments. Included in the income tax effect of the above adjustments is the net effect of the non-GAAP provision for income taxes, calculated at 21.6% and 21.6% effective tax rate of the pre-tax non-GAAP income before taxes for the nine months ended June 30, 2023 and 2022, respectively, and the GAAP income tax expense (benefit). 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 (benefit), (c) net interest expense, (d) gains or losses on sale of businesses and assets, (e) gains or losses on insurance, (f) unrealized gains or losses on equity securities, (g) impairment of assets, (h) settlement of lawsuits, (i) gain on debt extinguishment, and (j) 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 our unleveraged performance return on our investments. Adjusted EBITDA is also the 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, 2022, 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 [email protected] and [email protected]
|
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 Nine Months Ended |
||||||||||
|
June 30, 2023 |
June 30, 2022 |
June 30, 2023 |
June 30, 2022 |
||||||||
|
Amount |
% of Revenue |
Amount |
% of Revenue |
Amount |
% of Revenue |
Amount |
% of Revenue |
||||
|
Revenues |
|||||||||||
|
Sales of alcoholic beverages |
$ 34,151 |
44.3 % |
$ 29,738 |
42.1 % |
$ 93,937 |
43.0 % |
$ 83,504 |
42.6 % |
|||
|
Sales of food and merchandise |
11,405 |
14.8 % |
11,574 |
16.4 % |
32,757 |
15.0 % |
33,628 |
17.1 % |
|||
|
Service revenues |
26,663 |
34.6 % |
25,444 |
36.0 % |
77,916 |
35.7 % |
67,821 |
34.6 % |
|||
|
Other |
4,836 |
6.3 % |
3,958 |
5.6 % |
13,930 |
6.4 % |
11,289 |
5.8 % |
|||
|
Total revenues |
77,055 |
100.0 % |
70,714 |
100.0 % |
218,540 |
100.0 % |
196,242 |
100.0 % |
|||
|
Operating expenses |
|||||||||||
|
Cost of goods sold |
|||||||||||
|
Alcoholic beverages sold |
6,397 |
18.7 % |
5,177 |
17.4 % |
17,136 |
18.2 % |
14,907 |
17.9 % |
|||
|
Food and merchandise sold |
4,106 |
36.0 % |
3,959 |
34.2 % |
11,429 |
34.9 % |
11,756 |
35.0 % |
|||
|
Service and other |
26 |
0.1 % |
46 |
0.2 % |
91 |
0.1 % |
170 |
0.2 % |
|||
|
Total cost of goods sold (exclusive of items shown below) |
10,529 |
13.7 % |
9,182 |
13.0 % |
28,656 |
13.1 % |
26,833 |
13.7 % |
|||
|
Salaries and wages |
20,578 |
26.7 % |
17,387 |
24.6 % |
58,682 |
26.9 % |
50,422 |
25.7 % |
|||
|
Selling, general and administrative |
23,803 |
30.9 % |
19,572 |
27.7 % |
68,561 |
31.4 % |
56,495 |
28.8 % |
|||
|
Depreciation and amortization |
4,041 |
5.2 % |
2,565 |
3.6 % |
11,108 |
5.1 % |
7,636 |
3.9 % |
|||
|
Other charges, net |
2,589 |
3.4 % |
1,501 |
2.1 % |
5,693 |
2.6 % |
1,357 |
0.7 % |
|||
|
Total operating expenses |
61,540 |
79.9 % |
50,207 |
71.0 % |
172,700 |
79.0 % |
142,743 |
72.7 % |
|||
|
Income from operations |
15,515 |
20.1 % |
20,507 |
29.0 % |
45,840 |
21.0 % |
53,499 |
27.3 % |
|||
|
Other income (expenses) |
|||||||||||
|
Interest expense |
(4,316) |
(5.6) % |
(3,028) |
(4.3) % |
(11,680) |
(5.3) % |
(8,496) |
(4.3) % |
|||
|
Interest income |
87 |
0.1 % |
103 |
0.1 % |
268 |
0.1 % |
321 |
0.2 % |
|||
|
Non-operating gains, net |
— |
— % |
127 |
0.2 % |
— |
— % |
211 |
0.1 % |
|||
|
Income before income taxes |
11,286 |
14.6 % |
17,709 |
25.0 % |
34,428 |
15.8 % |
45,535 |
23.2 % |
|||
|
Income tax expense |
2,269 |
2.9 % |
3,767 |
5.3 % |
7,447 |
3.4 % |
10,056 |
5.1 % |
|||
|
Net income |
9,017 |
11.7 % |
13,942 |
19.7 % |
26,981 |
12.3 % |
35,479 |
18.1 % |
|||
|
Net loss (income) attributable to noncontrolling interests |
68 |
0.1 % |
(40) |
(0.1) % |
74 |
0.0 % |
(50) |
(0.0) % |
|||
|
Net income attributable to RCIHH common shareholders |
$ 9,085 |
11.8 % |
$ 13,902 |
19.7 % |
$ 27,055 |
12.4 % |
$ 35,429 |
18.1 % |
|||
|
Earnings per share |
|||||||||||
|
Basic and diluted |
$ 0.96 |
$ 1.48 |
$ 2.91 |
$ 3.76 |
|||||||
|
Weighted average shares used in computing earnings per share |
|||||||||||
|
Basic and diluted |
9,430,225 |
9,389,675 |
9,308,624 |
9,428,461 |
|||||||
|
Dividends per share |
$ 0.06 |
$ 0.05 |
$ 0.17 |
$ 0.14 |
|||||||
|
RCI HOSPITALITY HOLDINGS, INC. |
||||
|
NON-GAAP FINANCIAL MEASURES |
||||
|
(in thousands, except per share and percentage data) |
||||
|
For the Three Months Ended |
For the Nine Months Ended |
|||
|
June 30, 2023 |
June 30, 2022 |
June 30, 2023 |
June 30, 2022 |
|
|
Reconciliation of GAAP net income to Adjusted EBITDA |
||||
|
Net income attributable to RCIHH common stockholders |
$ 9,085 |
$ 13,902 |
$ 27,055 |
$ 35,429 |
|
Income tax expense |
2,269 |
3,767 |
7,447 |
10,056 |
|
Interest expense, net |
4,229 |
2,925 |
11,412 |
8,175 |
|
Settlement of lawsuits |
63 |
132 |
3,183 |
709 |
|
Impairment of assets |
2,631 |
1,722 |
3,293 |
1,722 |
|
Gain on sale of businesses and assets |
(105) |
(266) |
(692) |
(666) |
|
Gain on debt extinguishment |
— |
(53) |
— |
(138) |
|
Unrealized loss on equity securities |
— |
— |
— |
1 |
|
Gain on insurance |
— |
(87) |
(91) |
(408) |
|
Stock-based compensation |
470 |
— |
2,117 |
— |
|
Depreciation and amortization |
4,041 |
2,565 |
11,108 |
7,636 |
|
Adjusted EBITDA |
$ 22,683 |
$ 24,607 |
$ 64,832 |
$ 62,516 |
|
Reconciliation of GAAP net income to non-GAAP net income |
||||
|
Net income attributable to RCIHH common stockholders |
$ 9,085 |
$ 13,902 |
$ 27,055 |
$ 35,429 |
|
Amortization of intangibles |
918 |
25 |
2,722 |
124 |
|
Settlement of lawsuits |
63 |
132 |
3,183 |
709 |
|
Impairment of assets |
2,631 |
1,722 |
3,293 |
1,722 |
|
Gain on sale of businesses and assets |
(105) |
(266) |
(692) |
(666) |
|
Gain on debt extinguishment |
— |
(53) |
— |
(138) |
|
Unrealized loss on equity securities |
— |
— |
— |
1 |
|
Gain on insurance |
— |
(87) |
(91) |
(408) |
|
Stock-based compensation |
470 |
— |
2,117 |
— |
|
Net income tax effect |
(812) |
(312) |
(2,258) |
(59) |
|
Non-GAAP net income |
$ 12,250 |
$ 15,063 |
$ 35,329 |
$ 36,714 |
|
Reconciliation of GAAP diluted earnings per share to non-GAAP diluted earnings per share |
||||
|
Diluted shares |
9,430,225 |
9,389,675 |
9,308,624 |
9,428,461 |
|
GAAP diluted earnings per share |
$ 0.96 |
$ 1.48 |
$ 2.91 |
$ 3.76 |
|
Amortization of intangibles |
0.10 |
0.00 |
0.29 |
0.01 |
|
Settlement of lawsuits |
0.01 |
0.01 |
0.34 |
0.08 |
|
Impairment of assets |
0.28 |
0.18 |
0.35 |
0.18 |
|
Gain on sale of businesses and assets |
(0.01) |
(0.03) |
(0.07) |
(0.07) |
|
Gain on debt extinguishment |
0.00 |
(0.01) |
0.00 |
(0.01) |
|
Unrealized loss on equity securities |
0.00 |
0.00 |
0.00 |
0.00 |
|
Gain on insurance |
0.00 |
(0.01) |
(0.01) |
(0.04) |
|
Stock-based compensation |
0.05 |
0.00 |
0.23 |
0.00 |
|
Net income tax effect |
(0.09) |
(0.03) |
(0.24) |
(0.01) |
|
Non-GAAP diluted earnings per share |
$ 1.30 |
$ 1.60 |
$ 3.80 |
$ 3.89 |
|
Reconciliation of GAAP operating income to non-GAAP operating income |
||||
|
Income from operations |
$ 15,515 |
$ 20,507 |
$ 45,840 |
$ 53,499 |
|
Amortization of intangibles |
918 |
25 |
2,722 |
124 |
|
Settlement of lawsuits |
63 |
132 |
3,183 |
709 |
|
Impairment of assets |
2,631 |
1,722 |
3,293 |
1,722 |
|
Gain on sale of businesses and assets |
(105) |
(266) |
(692) |
(666) |
|
Gain on insurance |
— |
(87) |
(91) |
(408) |
|
Stock-based compensation |
470 |
— |
2,117 |
— |
|
Non-GAAP operating income |
$ 19,492 |
$ 22,033 |
$ 56,372 |
$ 54,980 |
|
Reconciliation of GAAP operating margin to non-GAAP operating margin |
||||
|
Income from operations |
20.1 % |
29.0 % |
21.0 % |
27.3 % |
|
Amortization of intangibles |
1.2 % |
0.0 % |
1.2 % |
0.1 % |
|
Settlement of lawsuits |
0.1 % |
0.2 % |
1.5 % |
0.4 % |
|
Impairment of assets |
3.4 % |
2.4 % |
1.5 % |
0.9 % |
|
Gain on sale of businesses and assets |
(0.1) % |
(0.4) % |
(0.3) % |
(0.3) % |
|
Gain on insurance |
0.0 % |
(0.1) % |
(0.0) % |
(0.2) % |
|
Stock-based compensation |
0.6 % |
0.0 % |
1.0 % |
0.0 % |
|
Non-GAAP operating margin |
25.3 % |
31.2 % |
25.8 % |
28.0 % |
|
Reconciliation of net cash provided by operating activities to free cash flow |
||||
|
Net cash provided by operating activities |
$ 15,320 |
$ 18,893 |
$ 47,004 |
$ 46,754 |
|
Less: Maintenance capital expenditures |
1,064 |
869 |
4,949 |
2,385 |
|
Free cash flow |
$ 14,256 |
$ 18,024 |
$ 42,055 |
$ 44,369 |
|
RCI HOSPITALITY HOLDINGS, INC. |
||||
|
SEGMENT INFORMATION |
||||
|
(in thousands) |
||||
|
For the Three Months Ended |
For the Nine Months Ended |
|||
|
June 30, 2023 |
June 30, 2022 |
June 30, 2023 |
June 30, 2022 |
|
|
Revenues |
||||
|
Nightclubs |
$ 62,449 |
$ 54,684 |
$ 175,805 |
$ 149,639 |
|
Bombshells |
14,397 |
15,789 |
42,143 |
45,893 |
|
Other |
209 |
241 |
592 |
710 |
|
$ 77,055 |
$ 70,714 |
$ 218,540 |
$ 196,242 |
|
|
Income (loss) from operations |
||||
|
Nightclubs |
$ 20,392 |
$ 22,459 |
$ 61,127 |
$ 60,321 |
|
Bombshells |
1,701 |
3,065 |
5,323 |
9,335 |
|
Other |
(300) |
(82) |
(653) |
(159) |
|
Corporate |
(6,278) |
(4,935) |
(19,957) |
(15,998) |
|
$ 15,515 |
$ 20,507 |
$ 45,840 |
$ 53,499 |
|
|
RCI HOSPITALITY HOLDINGS, INC. |
||||||||||
|
NON-GAAP SEGMENT INFORMATION |
||||||||||
|
($ in thousands) |
||||||||||
|
For the Three Months Ended June 30, 2023 |
For the Three Months Ended June 30, 2022 |
|||||||||
|
Nightclubs |
Bombshells |
Other |
Corporate |
Total |
Nightclubs |
Bombshells |
Other |
Corporate |
Total |
|
|
Income (loss) from operations |
$ 20,392 |
$ 1,701 |
$ (300) |
$ (6,278) |
$ 15,515 |
$ 22,459 |
$ 3,065 |
$ (82) |
$ (4,935) |
$ 20,507 |
|
Amortization of intangibles |
624 |
81 |
208 |
5 |
918 |
23 |
1 |
— |
1 |
25 |
|
Settlement of lawsuits |
57 |
6 |
— |
— |
63 |
124 |
8 |
— |
— |
132 |
|
Impairment of assets |
2,631 |
— |
— |
— |
2,631 |
1,072 |
650 |
— |
— |
1,722 |
|
Loss (gain) on sale of businesses and assets |
(153) |
50 |
— |
(2) |
(105) |
(264) |
— |
— |
(2) |
(266) |
|
Gain on insurance |
— |
— |
— |
— |
— |
(87) |
— |
— |
— |
(87) |
|
Stock-based compensation |
— |
— |
— |
470 |
470 |
— |
— |
— |
— |
— |
|
Non-GAAP operating income (loss) |
$ 23,551 |
$ 1,838 |
$ (92) |
$ (5,805) |
$ 19,492 |
$ 23,327 |
$ 3,724 |
$ (82) |
$ (4,936) |
$ 22,033 |
|
GAAP operating margin |
32.7 % |
11.8 % |
(143.5) % |
(8.1) % |
20.1 % |
41.1 % |
19.4 % |
(34.0) % |
(7.0) % |
29.0 % |
|
Non-GAAP operating margin |
37.7 % |
12.8 % |
(44.0) % |
(7.5) % |
25.3 % |
42.7 % |
23.6 % |
(34.0) % |
(7.0) % |
31.2 % |
|
For the Nine Months Ended June 30, 2023 |
For the Nine Months Ended June 30, 2022 |
|||||||||
|
Nightclubs |
Bombshells |
Other |
Corporate |
Total |
Nightclubs |
Bombshells |
Other |
Corporate |
Total |
|
|
Income (loss) from operations |
$ 61,127 |
$ 5,323 |
$ (653) |
$ (19,957) |
$ 45,840 |
$ 60,321 |
$ 9,335 |
$ (159) |
$ (15,998) |
$ 53,499 |
|
Amortization of intangibles |
1,880 |
500 |
329 |
13 |
2,722 |
117 |
5 |
— |
2 |
124 |
|
Settlement of lawsuits |
3,174 |
9 |
— |
— |
3,183 |
578 |
18 |
— |
113 |
709 |
|
Impairment of assets |
3,293 |
— |
— |
— |
3,293 |
1,072 |
650 |
— |
— |
1,722 |
|
Loss (gain) on sale of businesses and assets |
(734) |
66 |
— |
(24) |
(692) |
(344) |
17 |
— |
(339) |
(666) |
|
Gain on insurance |
(48) |
— |
— |
(43) |
(91) |
(408) |
— |
— |
— |
(408) |
|
Stock-based compensation |
— |
— |
— |
2,117 |
2,117 |
— |
— |
— |
— |
— |
|
Non-GAAP operating income (loss) |
$ 68,692 |
$ 5,898 |
$ (324) |
$ (17,894) |
$ 56,372 |
$ 61,336 |
$ 10,025 |
$ (159) |
$ (16,222) |
$ 54,980 |
|
GAAP operating margin |
34.8 % |
12.6 % |
(110.3) % |
(9.1) % |
21.0 % |
40.3 % |
20.3 % |
(22.4) % |
(8.2) % |
27.3 % |
|
Non-GAAP operating margin |
39.1 % |
14.0 % |
(54.7) % |
(8.2) % |
25.8 % |
41.0 % |
21.8 % |
(22.4) % |
(8.3) % |
28.0 % |
|
RCI HOSPITALITY HOLDINGS, INC. |
||||
|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||
|
(in thousands) |
||||
|
For the Three Months Ended |
For the Nine Months Ended |
|||
|
June 30, 2023 |
June 30, 2022 |
June 30, 2023 |
June 30, 2022 |
|
|
CASH FLOWS FROM OPERATING ACTIVITIES |
||||
|
Net income |
$ 9,017 |
$ 13,942 |
$ 26,981 |
$ 35,479 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
||||
|
Depreciation and amortization |
4,041 |
2,565 |
11,108 |
7,636 |
|
Impairment of assets |
2,631 |
1,722 |
3,293 |
1,722 |
|
Deferred income tax benefit |
(790) |
(409) |
(790) |
(409) |
|
Stock-based compensation |
470 |
— |
2,117 |
— |
|
Loss (gain) on sale of businesses and assets |
(183) |
(574) |
(872) |
(1,282) |
|
Unrealized loss on equity securities |
— |
— |
— |
1 |
|
Amortization of debt discount and issuance costs |
162 |
63 |
453 |
199 |
|
Gain on debt extinguishment |
— |
— |
— |
(83) |
|
Noncash lease expense |
763 |
487 |
2,226 |
1,725 |
|
Gain on insurance |
— |
(87) |
(91) |
(408) |
|
Doubtful accounts expense on notes receivable |
— |
700 |
— |
753 |
|
Changes in operating assets and liabilities: |
||||
|
Accounts receivable |
772 |
2,346 |
1,480 |
3,411 |
|
Inventories |
— |
(216) |
79 |
(492) |
|
Prepaid expenses, other current and other assets |
2,103 |
2,089 |
(3,602) |
(3,271) |
|
Accounts payable, accrued and other liabilities |
(3,666) |
(3,735) |
4,622 |
1,773 |
|
Net cash provided by operating activities |
15,320 |
18,893 |
47,004 |
46,754 |
|
CASH FLOWS FROM INVESTING ACTIVITIES |
||||
|
Proceeds from sale of businesses and assets |
1 |
1,701 |
2,811 |
4,611 |
|
Proceeds from insurance |
— |
30 |
91 |
515 |
|
Proceeds from notes receivable |
57 |
45 |
170 |
127 |
|
Payments for property and equipment and intangible assets |
(9,029) |
(3,183) |
(29,919) |
(17,173) |
|
Acquisition of businesses, net of cash acquired |
— |
(5,000) |
(30,200) |
(44,302) |
|
Net cash used in investing activities |
(8,971) |
(6,407) |
(57,047) |
(56,222) |
|
CASH FLOWS FROM FINANCING ACTIVITIES |
||||
|
Proceeds from debt obligations |
— |
78 |
11,595 |
35,820 |
|
Payments on debt obligations |
(4,950) |
(3,424) |
(11,431) |
(10,714) |
|
Purchase of treasury stock |
— |
(9,212) |
(98) |
(12,057) |
|
Payment of dividends |
(565) |
(468) |
(1,580) |
(1,322) |
|
Payment of loan origination costs |
(34) |
(27) |
(239) |
(445) |
|
Share in return of investment by noncontrolling partner |
— |
— |
(600) |
— |
|
Net cash provided by (used in) financing activities |
(5,549) |
(13,053) |
(2,353) |
11,282 |
|
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
800 |
(567) |
(12,396) |
1,814 |
|
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD |
22,784 |
38,067 |
35,980 |
35,686 |
|
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
$ 23,584 |
$ 37,500 |
$ 23,584 |
$ 37,500 |
|
RCI HOSPITALITY HOLDINGS, INC. |
|||
|
CONSOLIDATED BALANCE SHEETS |
|||
|
(in thousands) |
|||
|
June 30, 2023 |
September 30, 2022 |
June 30, 2022 |
|
|
ASSETS |
|||
|
Current assets |
|||
|
Cash and cash equivalents |
$ 23,584 |
$ 35,980 |
$ 37,500 |
|
Accounts receivable, net |
7,433 |
8,510 |
3,955 |
|
Current portion of notes receivable |
244 |
230 |
226 |
|
Inventories |
4,571 |
3,893 |
3,749 |
|
Prepaid expenses and other current assets |
5,028 |
1,499 |
4,475 |
|
Assets held for sale |
— |
1,049 |
6,989 |
|
Total current assets |
40,860 |
51,161 |
56,894 |
|
Property and equipment, net |
277,530 |
224,615 |
208,710 |
|
Operating lease right-of-use assets, net |
35,683 |
37,048 |
37,753 |
|
Notes receivable, net of current portion |
4,507 |
4,691 |
4,750 |
|
Goodwill |
78,684 |
67,767 |
61,399 |
|
Intangibles, net |
181,262 |
144,049 |
130,585 |
|
Other assets |
1,581 |
1,407 |
2,088 |
|
Total assets |
$ 620,107 |
$ 530,738 |
$ 502,179 |
|
LIABILITIES AND EQUITY |
|||
|
Current liabilities |
|||
|
Accounts payable |
$ 7,762 |
$ 5,482 |
$ 5,767 |
|
Accrued liabilities |
17,732 |
11,328 |
12,888 |
|
Current portion of debt obligations, net |
23,824 |
11,896 |
12,295 |
|
Current portion of operating lease liabilities |
2,923 |
2,795 |
2,730 |
|
Total current liabilities |
52,241 |
31,501 |
33,680 |
|
Deferred tax liability, net |
30,146 |
30,562 |
24,074 |
|
Debt, net of current portion and debt discount and issuance costs |
219,999 |
190,567 |
175,670 |
|
Operating lease liabilities, net of current portion |
35,941 |
36,001 |
36,719 |
|
Other long-term liabilities |
355 |
349 |
351 |
|
Total liabilities |
338,682 |
288,980 |
270,494 |
|
Commitments and contingencies |
|||
|
Equity |
|||
|
Preferred stock |
— |
— |
— |
|
Common stock |
94 |
92 |
93 |
|
Additional paid-in capital |
82,091 |
67,227 |
68,342 |
|
Retained earnings |
199,425 |
173,950 |
163,800 |
|
Total RCIHH stockholders’ equity |
281,610 |
241,269 |
232,235 |
|
Noncontrolling interests |
(185) |
489 |
(550) |
|
Total equity |
281,425 |
241,758 |
231,685 |
|
Total liabilities and equity |
$ 620,107 |
$ 530,738 |
$ 502,179 |
SOURCE RCI Hospitality Holdings, Inc.
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