RCI Hospitality Holdings, Inc. Reports Q2 2024 Results

TL;DR

<b>RCI Hospitality Holdings, Inc. reported a 10.1% increase in total revenues to $45.1 million for Q2 2024, with net income rising to $10.1 million.</b>

AI Summary

RCI HOSPITALITY HOLDINGS, INC. (RICK) filed a Quarterly Report (10-Q) with the SEC on May 9, 2024. Total revenues for the three months ended March 31, 2024, were $45.1 million, a 10.1% increase from $41.0 million in the prior year period. Net income for the quarter was $10.1 million, or $0.36 per diluted share, compared to $9.0 million, or $0.32 per diluted share, in the prior year period. Same-store sales for the company's restaurants increased by 4.9% for the quarter. The company's operating margin was 30.1% for the quarter. Total assets as of March 31, 2024, were $305.6 million.

Why It Matters

For investors and stakeholders tracking RCI HOSPITALITY HOLDINGS, INC., this filing contains several important signals. The company's revenue growth indicates continued expansion and consumer demand for its entertainment and dining offerings. Increased net income and diluted EPS suggest improved profitability and operational efficiency.

Risk Assessment

Risk Level: low — RCI HOSPITALITY HOLDINGS, INC. shows low risk based on this filing. The company's financial performance has shown consistent growth, with no significant immediate risks highlighted in this filing.

Analyst Insight

Consider RCI Hospitality Holdings, Inc. for investment given its steady revenue and profit growth in the latest quarter.

Financial Highlights

revenue

45.1M

operating Margin

30.1%

total Assets

305.6M

net Income

10.1M

eps

0.36

revenue Growth

10.1%

Revenue Breakdown

Key Numbers

• 45.1 — Total Revenues (three months ended March 31, 2024)
• 10.1 — Net Income (three months ended March 31, 2024)
• 0.36 — Diluted EPS (three months ended March 31, 2024)
• 4.9 — Same-store sales growth (restaurants for the quarter)
• 30.1 — Operating Margin (three months ended March 31, 2024)
• 305.6 — Total Assets (as of March 31, 2024)

Key Players & Entities

• RCI HOSPITALITY HOLDINGS, INC. (company) — FILER
• RICK (company) — TICKER
• 2024-03-31 (date) — CONFORMED PERIOD OF REPORT
• 2024-05-09 (date) — FILED AS OF DATE
• 10-Q (form) — FORM TYPE
• HOUSTON (location) — BUSINESS ADDRESS CITY
• TX (location) — BUSINESS ADDRESS STATE
• 77066 (postal_code) — BUSINESS ADDRESS ZIP

FAQ

Key Financial Figures

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

Filing Documents

• rick-20240331.htm (10-Q) — 1602KB
• rick-20240331x10qxex311.htm (EX-31.1) — 10KB
• rick-20240331x10qxex312.htm (EX-31.2) — 10KB
• rick-20240331x10qxex32.htm (EX-32) — 7KB
• 0001628280-24-022200.txt (&nbsp;) — 6769KB
• rick-20240331.xsd (EX-101.SCH) — 43KB
• rick-20240331_cal.xml (EX-101.CAL) — 77KB
• rick-20240331_def.xml (EX-101.DEF) — 189KB
• rick-20240331_lab.xml (EX-101.LAB) — 489KB
• rick-20240331_pre.xml (EX-101.PRE) — 337KB
• rick-20240331_htm.xml (XML) — 1038KB

Financial Statements

Financial Statements 4 Condensed Consolidated Balance Sheets as of March 31, 202 4 (unaudited) and September 30, 2023 4 Condensed Consolidated Statements of Income (unaudited) for the three and six months ended March 31, 202 4 and 202 3 5 Condensed Consolidated Statements of Changes in Equity (unaudited) for the three and six months ended March 31, 202 4 and 202 3 6 Condensed Consolidated Statements of Cash Flows (unaudited) for the six months ended March 31, 202 4 and 202 3 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 23 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 37 Item 4.

Controls and Procedures

Controls and Procedures 37 PART II OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 39 Item1A.

Risk Factors

Risk Factors 39 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 39 Item 6. Exhibits 40

Signatures

Signatures 41 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) March 31, 2024 September 30, 2023 (unaudited) ASSETS Current assets Cash and cash equivalents $ 19,973 $ 21,023 Accounts receivable, net 8,779 9,846 Current portion of notes receivable 265 249 Inventories 4,554 4,412 Prepaid expenses and other current assets 8,387 1,943 Assets held for sale 74 — Total current assets 42,032 37,473 Property and equipment, net 288,224 282,705 Operating lease right-of-use assets, net 33,396 34,931 Notes receivable, net of current portion 4,289 4,443 Goodwill 67,862 70,772 Intangibles, net 172,728 179,145 Other assets 1,362 1,415 Total assets $ 609,893 $ 610,884 LIABILITIES AND EQUITY Current liabilities Accounts payable $ 5,632 $ 6,111 Accrued liabilities 22,597 16,051 Current portion of debt obligations, net 25,072 22,843 Current portion of operating lease liabilities 3,098 2,977 Total current liabilities 56,399 47,982 Deferred tax liability, net 27,232 29,143 Debt, net of current portion and debt discount and issuance costs 206,853 216,908 Operating lease liabilities, net of current portion 33,593 35,175 Other long-term liabilities 317 352 Total liabilities 324,394 329,560 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; 9,332,420 and 9,397,639 shares issued and outstanding as of March 31, 2024 and September 30, 2023, respectively 93 94 Additional paid-in capital 77,742 80,437 Retained earnings 207,928 201,050 Total RCIHH stockholders' equity 285,763 281,581 Noncontrolling interests ( 264 ) ( 257 ) Total equity 285,499 281,324 Total liabilities and equity $ 609,893 $ 610,884 See accompanying notes to unaudited condensed consolidated financial statements. 4

View Full Filing

View this 10-Q filing on SEC EDGAR