RCI Hospitality Holdings Files 2024 10-K

TL;DR

RCII filed its 2024 10-K. Full year financials out now.

AI Summary

RCI Hospitality Holdings, Inc. filed its 10-K for the fiscal year ending September 30, 2024, reporting on its operations which include gentlemen's clubs and restaurants. The company, formerly known as Ricks Cabaret International Inc., is incorporated in Texas and headquartered in Houston. This filing covers the period from October 1, 2023, to September 30, 2024, and provides financial details for the fiscal years 2024, 2023, and 2022.

Why It Matters

This filing provides investors with a comprehensive overview of RCI Hospitality's financial performance and operational details for the past fiscal year, crucial for investment decisions.

Risk Assessment

Risk Level: medium — The company operates in the adult entertainment and hospitality sectors, which can be subject to regulatory changes and economic sensitivity.

Key Numbers

• 2024 FY — Fiscal Year (Reporting period for the 10-K filing.)
• 2023-09-30 — Previous Fiscal Year End (End date of the prior fiscal year for comparison.)
• 2022-09-30 — Prior Fiscal Year End (End date of the fiscal year before the previous one.)

Key Players & Entities

• RCI HOSPITALITY HOLDINGS, INC. (company) — Filer
• 0000935419 (company) — Central Index Key
• 760458229 (company) — IRS Number
• TX (state) — State of Incorporation
• HOUSTON (location) — Business Address City
• 77066 (location) — Business Address Zip
• RICKS CABARET INTERNATIONAL INC (company) — Former Company Name
• 19950112 (date) — Date of Name Change
• 20240930 (date) — Fiscal Year End
• 20241216 (date) — Filing Date

FAQ

Key Financial Figures

• $0.01 — ange on which registered Common stock, $0.01 par value RICK The Nasdaq Global Market
• $295.6 m — 3, and 2022, consolidated revenues were $295.6 million, $293.8 million, and $267.6 milli
• $293.8 m — solidated revenues were $295.6 million, $293.8 million, and $267.6 million, respectively
• $267.6 m — ere $295.6 million, $293.8 million, and $267.6 million, respectively, generating diluted
• $0 — enerating diluted earnings per share of $0.33, $3.13, and $4.91, respectively. Th
• $3 — ng diluted earnings per share of $0.33, $3.13, and $4.91, respectively. The table
• $4 — earnings per share of $0.33, $3.13, and $4.91, respectively. The table below show
• $5 b — ively have annual revenues in excess of $5 billion, according to the Association of

Filing Documents

• rick-20240930.htm (10-K) — 3433KB
• policyoninsidertrading-ame.htm (EX-19.1) — 33KB
• rick-20240930x10kxex211.htm (EX-21.1) — 125KB
• rick-20240930x10kxex231.htm (EX-23.1) — 3KB
• rick-20240930x10kxex232.htm (EX-23.2) — 3KB
• rick-20240930x10kxex311.htm (EX-31.1) — 10KB
• rick-20240930x10kxex312.htm (EX-31.2) — 10KB
• rick-20240930x10kxex321.htm (EX-32.1) — 6KB
• rick-20240930_g1.jpg (GRAPHIC) — 123KB
• rick-20240930_g2.jpg (GRAPHIC) — 136KB
• rick-20240930_g3.jpg (GRAPHIC) — 303KB
• rick-20240930_g4.jpg (GRAPHIC) — 62KB
• rick-20240930_g5.jpg (GRAPHIC) — 229KB
• 0001628280-24-051384.txt ( ) — 18760KB
• rick-20240930.xsd (EX-101.SCH) — 116KB
• rick-20240930_cal.xml (EX-101.CAL) — 120KB
• rick-20240930_def.xml (EX-101.DEF) — 574KB
• rick-20240930_lab.xml (EX-101.LAB) — 1156KB
• rick-20240930_pre.xml (EX-101.PRE) — 930KB
• rick-20240930_htm.xml (XML) — 2554KB

Business

Business 4 Item 1A.

Risk Factors

Risk Factors 9 Item 1B. Unresolved Staff Comments 22 Item 2.

Properties

Properties 24 Item 3.

Legal Proceedings

Legal Proceedings 26 Item 4. Mine Safety Disclosures 26 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 27 Item 6. [Reserved] 29 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 30 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 51 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 52 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 104 Item 9A.

Controls and Procedures

Controls and Procedures 104 Item 9B. Other Information 106 PART III Item 10. Directors, Executive Officers and Corporate Governance 109 Item 11.

Executive Compensation

Executive Compensation 113 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 121 Item 13. Certain Relationships and Related Transactions, and Director Independence 122 Item 14. Principal Accounting Fees and Services 124 PART IV Item 15. Exhibits, Financial Statement Schedules 126 Item 16. Form 10-K Summary 130

Signatures

Signatures 131 3 Table of Contents PART I

BUSINESS

Item 1. BUSINESS. OUR COMPANY RCI Hospitality Holdings, Inc. is a holding company that, through its subsidiaries, engages in businesses that offer live adult entertainment and/or high-quality dining experiences to its guests. Our subsidiaries operated 69 establishments in 13 states as of September 30, 2024. Together with its subsidiaries, RCI Hospitality Holdings, Inc. is collectively referred to as "RCIHH," "RCI," the "Company," "we," "us," or "our" in this report. We also operate a leading business communications company serving the multibillion-dollar adult nightclubs industry. RCIHH was incorporated in the State of Texas in 1994 and became public in 1995. Our fiscal year ends on September 30. References to years 2024, 2023, and 2022 are for fiscal years ended September 30, 2024, 2023, and 2022, respectively. Our fiscal quarters chronologically end on December 31, March 31, June 30 and September 30. OUR BUSINESS Through our subsidiaries, we operate several businesses, which we aggregate for financial reporting purposes into two reportable segments – Nightclubs and Bombshells. Businesses that are not included as Nightclubs or Bombshells are combined as "Other." During fiscal 2024, 2023, and 2022, consolidated revenues were $295.6 million, $293.8 million, and $267.6 million, respectively, generating diluted earnings per share of $0.33, $3.13, and $4.91, respectively. The table below shows the number of Nightclubs and Bombshells open by state as of September 30, 2024: Nightclubs Bombshells (1) Total Arizona 1 — 1 Colorado 5 1 6 Florida 4 — 4 Illinois 5 — 5 Indiana 1 — 1 Kentucky 1 — 1 Louisiana 1 — 1 Maine 1 — 1 Minnesota 3 — 3 New York 4 — 4 North Carolina 2 — 2 Pennsylvania 1 — 1 Texas 27 12 39 56 13 69 (1) Includes one food hall location. 4 Table of Contents Nightclubs Segment Our Nightclubs subsidiaries operate our adult entertainment nightclubs through several brands that target many different demographics of customers by provid

RISK FACTORS

Item 1A. RISK FACTORS. An investment in our common stock involves a high degree of risk. You should carefully consider the risks described below before deciding to purchase shares of our common stock. If any of the events, contingencies, circumstances or conditions described in the risks below actually occurs, our business, financial condition, or results of operations could be seriously harmed. The trading price of our common stock could, in turn, decline and you could lose all or part of your investment. A summary of our risk factors is as follows: Risks related to our business We may deviate from our present capital allocation strategy. We may need additional financing, or our business expansion plans may be significantly limited. There is substantial competition in the nightclub entertainment industry, which may affect our ability to operate profitably or acquire additional clubs. The adult entertainment industry is extremely volatile. Private advocacy group actions targeted at the kind of adult entertainment we offer could result in limitations and our inability to operate in certain locations and negatively impact our business. We rely heavily on information technology in our operations and any material failure, weakness, interruption or breach of security could prevent us from effectively operating our business. We are exposed to risks related to cyber security and protection of confidential information, and failure to protect the integrity and security of payment card or individually identifiable information of our guests and employees or confidential and proprietary information of the Company could damage our reputation and expose us to loss of revenues, increased costs and litigation. Our acquisitions may result in disruptions in our business and diversion of management's attention. The impact of new club or restaurant openings could result in fluctuations in our financial performance. Our ability to grow sales through delivery orders is unce

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View this 10-K filing on SEC EDGAR