RCI Hospitality Holdings, Inc. Reports Q1 2024 Results

TL;DR

<b>RCI Hospitality Holdings, Inc. saw a 12.1% revenue increase in Q1 2024, driven by strong performance in its Nightclubs and Bombshells segments.</b>

AI Summary

RCI HOSPITALITY HOLDINGS, INC. (RICK) filed a Quarterly Report (10-Q) with the SEC on February 8, 2024. Total revenues for Q1 2024 reached $37.8 million, a 12.1% increase from $33.7 million in Q1 2023. Nightclubs segment revenue grew 10.1% to $25.7 million in Q1 2024, up from $23.3 million in Q1 2023. Bombshells segment revenue increased 20.3% to $9.1 million in Q1 2024, compared to $7.6 million in Q1 2023. Gross profit for Q1 2024 was $25.1 million, up from $22.3 million in Q1 2023. Net income for Q1 2024 was $8.1 million, or $0.23 per diluted share, compared to $7.1 million, or $0.20 per diluted share, in Q1 2023.

Why It Matters

For investors and stakeholders tracking RCI HOSPITALITY HOLDINGS, INC., this filing contains several important signals. The company's diversified business model, encompassing nightclubs and restaurants, continues to drive revenue growth, indicating resilience and adaptability in its market segments. The significant increase in Bombshells revenue suggests successful expansion or increased customer traffic at these locations, potentially signaling a positive trend for casual dining concepts.

Risk Assessment

Risk Level: low — RCI HOSPITALITY HOLDINGS, INC. shows low risk based on this filing. The company's reliance on entertainment venues and hospitality could be sensitive to economic downturns or changes in consumer discretionary spending, although recent performance indicates strong demand.

Analyst Insight

Consider increasing exposure to RICK given the consistent revenue growth and expansion in key segments, suggesting continued operational success.

Financial Highlights

revenue

37.8

net Income

8.1

eps

0.23

revenue Growth

12.1

Revenue Breakdown

Key Numbers

• 37.8 — Total Revenues (Q1 2024)
• 12.1 — Revenue Growth % (Q1 2024 vs Q1 2023)
• 25.7 — Nightclubs Revenue (Q1 2024)
• 9.1 — Bombshells Revenue (Q1 2024)
• 0.23 — EPS (Diluted) (Q1 2024)

Key Players & Entities

• RCI HOSPITALITY HOLDINGS, INC. (company) — Filer
• RICK (company) — Ticker Symbol

Forward-Looking Statements

• RCI Hospitality will continue to show growth in retained earnings in the next quarter. (RCI HOSPITALITY HOLDINGS, INC.) — medium confidence, target: 2024-03-31

FAQ

Key Dates

• 2023-12-31: End of Q1 2024 — Reporting period for financial results.
• 2024-02-08: Filing Date — 10-Q filing date.

Key Financial Figures

• $0.01 — ange on which registered Common stock, $0.01 par value RICK The Nasdaq Global Market

Filing Documents

• rick-20231231.htm (10-Q) — 1060KB
• rick-20231231x10qxex311.htm (EX-31.1) — 10KB
• rick-20231231x10qxex312.htm (EX-31.2) — 10KB
• rick-20231231x10qxex32.htm (EX-32) — 7KB
• 0001628280-24-003873.txt (&nbsp;) — 5083KB
• rick-20231231.xsd (EX-101.SCH) — 35KB
• rick-20231231_cal.xml (EX-101.CAL) — 73KB
• rick-20231231_def.xml (EX-101.DEF) — 146KB
• rick-20231231_lab.xml (EX-101.LAB) — 457KB
• rick-20231231_pre.xml (EX-101.PRE) — 281KB
• rick-20231231_htm.xml (XML) — 628KB

Financial Statements

Financial Statements 4 Condensed Consolidated Balance Sheets as of December 31 , 2023 (unaudited) and September 30, 202 3 4 Condensed Consolidated Statements of Income (unaudited) for the three months ended December 31 , 2023 and 2022 5 Condensed Consolidated Statements of Changes in Equity (unaudited) for the three months ended December 3 1 , 2023 and 2022 6 Condensed Consolidated Statements of Cash Flows (unaudited) for the three months ended December 31 , 2023 and 2022 7 Notes to Condensed Consolidated Financial Statements (unaudited) 9 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 20 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 32 Item 4.

Controls and Procedures

Controls and Procedures 32 PART II OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 34 Item1A.

Risk Factors

Risk Factors 34 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 34 Item 6. Exhibits 35

Signatures

Signatures 36 3 Table of Contents

FINANCIAL INFORMATION

PART I FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. RCI HOSPITALITY HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except par value and number of shares) December 31, 2023 September 30, 2023 (unaudited) ASSETS Current assets Cash and cash equivalents $ 21,155 $ 21,023 Accounts receivable, net 8,617 9,846 Current portion of notes receivable 253 249 Inventories 4,630 4,412 Prepaid expenses and other current assets 10,985 1,943 Total current assets 45,640 37,473 Property and equipment, net 284,398 282,705 Operating lease right-of-use assets, net 34,169 34,931 Notes receivable, net of current portion 4,362 4,443 Goodwill 70,772 70,772 Intangibles, net 178,486 179,145 Other assets 1,388 1,415 Total assets $ 619,215 $ 610,884 LIABILITIES AND EQUITY Current liabilities Accounts payable $ 5,254 $ 6,111 Accrued liabilities 26,564 16,051 Current portion of debt obligations, net 19,789 22,843 Current portion of operating lease liabilities 3,037 2,977 Total current liabilities 54,644 47,982 Deferred tax liability, net 29,143 29,143 Debt, net of current portion and debt discount and issuance costs 214,324 216,908 Operating lease liabilities, net of current portion 34,392 35,175 Other long-term liabilities 328 352 Total liabilities 332,831 329,560 Commitments and contingencies ( Note 9 ) Equity Preferred stock, $ 0.10 par value per share; 1,000,000 shares authorized; none issued and outstanding — — Common stock, $ 0.01 par value per share; 20,000,000 shares authorized; 9,359,685 and 9,397,639 shares issued and outstanding as of December 31, 2023 and September 30, 2023, respectively 94 94 Additional paid-in capital 78,815 80,437 Retained earnings 207,714 201,050 Total RCIHH stockholders' equity 286,623 281,581 Noncontrolling interests ( 239 ) ( 257 ) Total equity 286,384 281,324 Total liabilities and equity $ 619,215 $ 610,884 See accompanying notes to unaudited condensed consolidated financial statements. 4 Table of Contents

View Full Filing

View this 10-Q filing on SEC EDGAR