RCI Reports 2Q22 Results: Total Revenues $63.7M, GAAP EPS $1.15, Non-GAAP EPS $1.19

Rhea-AI Summary

RCI Hospitality Holdings, Inc. (RICK) reported impressive financial results for Q2 2022, with total revenues reaching $63.7 million, a 44.6% year-over-year increase. EPS rose to $1.15, marking a 69.1% increase. Non-GAAP EPS showed even greater growth, hitting $1.19, up 58.0%. The company ended the quarter with $38.1 million in cash, and continued expansion efforts are underway including new acquisitions and Bombshells locations. Conference call scheduled for today at 4:30 PM ET via Twitter Spaces.

Positive

• Total revenues increased by 44.6% YoY to $63.7M in Q2 2022.
• EPS rose 69.1% YoY to $1.15.
• Non-GAAP EPS surged 58.0% YoY to $1.19.
• Net income attributable to common stockholders reached $11.0M, up 79.8% YoY.
• Adjusted EBITDA increased by 46.8% YoY to $19.9M.

Negative

• Interest expenses increased by $500,000 due to higher debt related to acquisitions.
• Operating margin for Bombshells declined to 22.6% from 23.9% YoY.

First Company to Use Twitter Spaces for Earnings Call – Today at 4:30 PM ET

HOUSTON, May 9, 2022 /PRNewswire/ -- RCI Hospitality Holdings, Inc. (Nasdaq: RICK) today reported results and filed its Form 10-Q for the fiscal 2022 second quarter and six months ended March 31, 2022.

 

Summary Financials	2Q22		Change YoY		6M22		Change YoY
Total Revenues	$63.7M		+44.6%		$125.5M		+52.2%
EPS	$1.15		+69.1%		$2.28		+30.3%
Non-GAAP EPS*	$1.19		+58.0%		$2.29		+100.1%
Net Cash from Operating Activities	$11.6M		+5.7%		$27.9M		+61.6%
Free Cash Flow*	$11.1M		+23.3%		$26.3M		+79.8%
Net Income Attributable to RCIHH Common Stockholders	$11.0M		+79.8%		$21.5M		+36.8%
Adjusted EBITDA*	$19.9M		+46.8%		$37.9M		+70.2%
Diluted Shares	9.489M		+5.4%		9.448M		+4.9%

*See "Non-GAAP Financial Measures" below.

Eric Langan, President and CEO of RCI Hospitality Holdings, Inc., stated: "We had an outstanding quarter across the board. We ended the quarter with $38.1 million in cash, and favorable trends are continuing, with total revenues in April exceeding March. Thanks to all our teams for making all of this possible."

Expansion efforts are moving ahead. This includes continuing to improve the performance of clubs acquired in 1Q22, acquiring new ones, harnessing new technology to drive club traffic, and expanding Bombshells. Recent developments:

Nightclubs

• South Florida club acquired last week
• Fort Worth club under contract to buy
• New Rick's Steakhouse & Lounge opened in Miami
• Reformatted club opening soon in San Antonio
• AdmireMe.com social media fan site in full beta
• Tip-N-Strip non-fungible token (NFT) guest benefits program on track to mint in June

Bombshells

• Property acquired for a 12th Bombshells (Houston)
• Two other locations (Dallas and Lubbock, TX) under contract to buy
• Bombshells' first franchisee expected to open its first location in San Antonio this quarter
• Bombshells' second franchisee (announced last week) planning its first location for Huntsville, Alabama

Conference Call Today at 4:30 PM ET
Participants need to use Twitter Spaces on their mobile phones to ask questions during the Q&A

Twitter	Telephone	Webcast
To participate in the RCI 2Q22 Earnings Call Twitter Space, follow @RicksCEO and go to this link: https://twitter.com/i/spaces/1mrGmanekZQGy	Live: Toll Free 888-506-0062, Intl. 973- 528-0011, Passcode: 384318 Replay: Toll Free 877-481-4010, Intl. 919-882-2331, Passcode: 45285	Live webcast, slides & replay: https://www.webcaster4.com/Webcast/Page/2209/45285

 

Meet Management Tonight at 8:00 PM ET

• Investors are invited to meet management at RCI's top revenue generating club
• Tootsie's Cabaret Miami, 150 NW 183rd St., Miami, FL 33169
• To be on the guest list, RSVP your contact information to gary.fishman@anreder.com by 5:00 PM ET today

2Q22 Segments

Nightclubs

• Revenues of $48.2 million increased by 56.5% compared to the prior-year quarter, when COVID-19 related government restrictions were just starting to ease.
• Newly acquired clubs contributed 50% of the $17.4 million increase in segment revenues. Same-store sales growth contributed 20%, and eight northern clubs (not open enough days in 2Q21 to qualify for same-store sales) contributed 30%.
• Operating margin was 39.7% vs. 34.0% in 2Q21 and 39.5% vs. 38.8% non-GAAP. Operating margin expanded primarily due to an 88% year-over-year increase in high-margin service revenues.

Bombshells

• Revenues of $15.3 million increased by 16.7% compared to the prior-year quarter.
• Bombshells Arlington, which opened in December, contributed 85% of the $2.2 million segment revenue increase. Same-store sales growth contributed 14%.
• Operating margin was 22.6% vs. 23.9% in the year ago quarter and 19.0% in the previous quarter, which was negatively affected by Arlington's pre-opening costs without the benefit of a full quarter of sales.

2Q22 Consolidated
Comparisons are to 2Q21 and % are of total revenues unless indicated otherwise

• Cost of goods sold improved (13.8% vs. 15.4%), reflecting the increase in sales mix of higher-margin service revenues (33.8% vs. 26.1%).
• Salaries and wages (26.0% vs. 25.4%) and SG&A (28.9% vs. 28.6%) were approximately level, reflecting new employees from new units and increased variable expenses related to sales in 2Q22.
• Operating margin was 26.8% vs. 22.3% and 26.9% vs. 25.9% non-GAAP.
• Interest expense increased $500,000 primarily due to higher debt related to the 1Q22 acquisitions, but declined to 4.5% from 5.4% of revenues.
• Income tax expense was $3.4 million compared to $1.9 million. The effective tax rate was 23.4% vs. 24.3%.
• Weighted average shares outstanding increased 5.4% due to shares issued for clubs acquired in 1Q22.
• 83,343 shares were bought back in the open market 2Q22 and 3Q22 through May 6, 2022, for $5.2 million, or an average of $62.37 per share.
• Debt was $178.1 million at 3/31/22 compared to $161.9 million at 12/31/21. The increase primarily reflected the January 2022 bank loan secured by real estate, most of which was acquired for cash in acquisitions.

Note
As of the release of this report, we do not know the future extent and duration of the impact of COVID-19 on our businesses. We will continually monitor and evaluate our cash flow situation to determine whether any measures need to be instituted. All references to the "company," "we," "our," and similar terms include RCI Hospitality Holdings, Inc., and its subsidiaries, unless the context indicates otherwise.

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) gains or losses on sale of businesses and assets, (c) gains or losses on insurance, and (d) settlement of lawsuits. 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, and (h) 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 21.8% and 24.2% effective tax rate of the pre-tax non-GAAP income before taxes for the six months ended March 31, 2022 and 2021, 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, and (i) gain on debt extinguishment. 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.
• Management also uses 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) www.rcihospitality.com
With more than 50 units, RCI Hospitality Holdings, Inc., through its subsidiaries, is the country's leading company in adult nightclubs and sports bars/restaurants. Clubs in New York City, Chicago, Dallas-Fort Worth, Houston, Miami, Minneapolis, Denver, St. Louis, Charlotte, Pittsburgh, Raleigh, Louisville, and other markets operate under brand names such as Rick's Cabaret, XTC, Club Onyx, Vivid Cabaret, Jaguars Club, Tootsie's Cabaret, and Scarlett's Cabaret. Sports bars/restaurants operate under the brand name Bombshells Restaurant & Bar.

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 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 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, 2021, 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 March 31,								For the Six Months Ended March 31,
					2022				2021				2022				2021
					Amount		% of Revenue		Amount		% of Revenue		Amount		% of Revenue		Amount		% of Revenue
Revenues
	Sales of alcoholic beverages				$        27,335		42.9%		$        20,273		46.0%		$        53,766		42.8%		$        37,633		45.6%
	Sales of food and merchandise				11,160		17.5%		9,538		21.6%		22,054		17.6%		18,147		22.0%
	Service revenues				21,501		33.8%		11,502		26.1%		42,377		33.8%		21,562		26.1%
	Other				3,696		5.8%		2,746		6.2%		7,331		5.8%		5,115		6.2%
		Total revenues			63,692		100.0%		44,059		100.0%		125,528		100.0%		82,457		100.0%
Operating expenses
	Cost of goods sold
		Alcoholic beverages sold			4,896		17.9%		3,730		18.4%		9,730		18.1%		6,992		18.6%
		Food and merchandise sold			3,840		34.4%		3,029		31.8%		7,797		35.4%		5,918		32.6%
		Service and other			24		0.1%		43		0.3%		124		0.2%		96		0.4%
			Total cost of goods sold (exclusive of items shown below)		8,760		13.8%		6,802		15.4%		17,651		14.1%		13,006		15.8%
	Salaries and wages				16,530		26.0%		11,200		25.4%		33,035		26.3%		22,686		27.5%
	Selling, general and administrative				18,437		28.9%		12,618		28.6%		36,923		29.4%		24,770		30.0%
	Depreciation and amortization				2,877		4.5%		2,117		4.8%		5,071		4.0%		4,140		5.0%
	Other charges (gains), net				7		0.0%		1,481		3.4%		(144)		-0.1%		1,431		1.7%
		Total operating expenses			46,611		73.2%		34,218		77.7%		92,536		73.7%		66,033		80.1%
Income from operations					17,081		26.8%		9,841		22.3%		32,992		26.3%		16,424		19.9%
Other income (expenses)
	Interest expense				(2,864)		-4.5%		(2,364)		-5.4%		(5,468)		-4.4%		(4,798)		-5.8%
	Interest income				112		0.2%		62		0.1%		218		0.2%		122		0.1%
	Non-operating gains, net				-		0.0%		431		1.0%		84		0.1%		5,347		6.5%
Income before income taxes					14,329		22.5%		7,970		18.1%		27,826		22.2%		17,095		20.7%
Income tax expense					3,356		5.3%		1,938		4.4%		6,289		5.0%		1,554		1.9%
Net income					10,973		17.2%		6,032		13.7%		21,537		17.2%		15,541		18.8%
Net loss (income) attributable to noncontrolling interests					(21)		0.0%		59		0.1%		(10)		0.0%		193		0.2%
Net income attributable to RCIHH common shareholders					$        10,952		17.2%		$          6,091		13.8%		$        21,527		17.1%		$        15,734		19.1%
Earnings per share
	Basic and diluted				$             1.15				$             0.68				$             2.28				$             1.75
Weighted average shares outstanding
	Basic and diluted				9,489,085				8,999,910				9,447,854				9,009,604
Dividends per share					$             0.05				$             0.04				$             0.09				$             0.08

 

RCI HOSPITALITY HOLDINGS, INC.
NON-GAAP FINANCIAL MEASURES
(in thousands, except per share and percentage data)
		For the Three Months				For the Six Months
		Ended March 31,				Ended March 31,
		2022		2021		2022		2021
Reconciliation of GAAP net income (loss) to Adjusted EBITDA
Net income attributable to RCIHH common stockholders		$      10,952		$        6,091		$      21,527		$      15,734
Income tax expense (benefit)		3,356		1,938		6,289		1,554
Interest expense, net		2,752		2,302		5,250		4,676
Settlement of lawsuits		385		1		577		153
Impairment of assets		-		1,401		-		1,401
Loss (gain) on sale of businesses and assets		(58)		91		(400)		86
Gain on debt extinguishment		-		(380)		(85)		(5,329)
Unrealized loss on equity securities		-		34		1		67
Gain on insurance		(320)		(12)		(321)		(209)
Depreciation and amortization		2,877		2,117		5,071		4,140
Adjusted EBITDA		$      19,944		$      13,583		$      37,909		$      22,273
Reconciliation of GAAP net income (loss) to non-GAAP net income
Net income attributable to RCIHH common stockholders		$      10,952		$        6,091		$      21,527		$      15,734
Amortization of intangibles		49		79		99		158
Settlement of lawsuits		385		1		577		153
Impairment of assets		-		1,401		-		1,401
Loss (gain) on sale of businesses and assets		(58)		91		(400)		86
Gain on debt extinguishment		-		(380)		(85)		(5,329)
Unrealized loss on equity securities		-		34		1		67
Gain on insurance		(320)		(12)		(321)		(209)
Net income tax effect		291		(522)		253		(1,741)
Non-GAAP net income		$      11,299		$        6,783		$      21,651		$      10,320
Reconciliation of GAAP diluted earnings (loss) per share to non-GAAP diluted earnings per share
Diluted shares		9,489,085		8,999,910		9,447,854		9,009,604
GAAP diluted earnings per share		$          1.15		$          0.68		$          2.28		$          1.75
Amortization of intangibles		0.01		0.01		0.01		0.02
Settlement of lawsuits		0.04		0.00		0.06		0.02
Impairment of assets		-		0.16		-		0.16
Loss (gain) on sale of businesses and assets		(0.01)		0.01		(0.04)		0.01
Gain on debt extinguishment		-		(0.04)		(0.01)		(0.59)
Unrealized loss on equity securities		-		0.00		0.00		0.01
Gain on insurance		(0.03)		(0.00)		(0.03)		(0.02)
Net income tax effect		0.03		(0.06)		0.03		(0.19)
Non-GAAP diluted earnings per share		$          1.19		$          0.75		$          2.29		$          1.15
Reconciliation of GAAP operating income to non-GAAP operating income
Income (loss) from operations		$      17,081		$        9,841		$      32,992		$      16,424
Amortization of intangibles		49		79		99		158
Settlement of lawsuits		385		1		577		153
Impairment of assets		-		1,401		-		1,401
Loss (gain) on sale of businesses and assets		(58)		91		(400)		86
Gain on insurance		(320)		(12)		(321)		(209)
Non-GAAP operating income		$      17,137		$      11,401		$      32,947		$      18,013
Reconciliation of GAAP operating margin to non-GAAP operating margin
GAAP operating margin		26.8%		22.3%		26.3%		19.9%
Amortization of intangibles		0.1%		0.2%		0.1%		0.2%
Settlement of lawsuits		0.6%		0.0%		0.5%		0.2%
Impairment of assets		0.0%		3.2%		0.0%		1.7%
Loss (gain) on sale of businesses and assets		-0.1%		0.2%		-0.3%		0.1%
Gain on insurance		-0.5%		0.0%		-0.3%		-0.3%
Non-GAAP operating margin		26.9%		25.9%		26.2%		21.8%
Reconciliation of net cash provided by operating activities to free cash flow
Net cash provided by operating activities		$      11,597		$      10,972		$      27,861		$      17,246
Less: Maintenance capital expenditures		518		1,986		1,516		2,591
Free cash flow		$      11,079		$        8,986		$      26,345		$      14,655

 

 

RCI HOSPITALITY HOLDINGS, INC.
SEGMENT INFORMATION
(in thousands)
			For the Three Months				For the Six Months
			Ended March 31,				Ended March 31,
			2022		2021		2022		2021
Revenues
	Nightclubs		$        48,174		$        30,787		$        94,955		$        55,984
	Bombshells		15,333		13,135		30,104		26,141
	Other		185		137		469		332
			$        63,692		$        44,059		$      125,528		$        82,457
Income (loss) from operations
	Nightclubs		$        19,126		$        10,468		$        37,862		$        18,963
	Bombshells		3,468		3,142		6,270		5,859
	Other		(34)		(139)		(77)		(214)
	General corporate		(5,479)		(3,630)		(11,063)		(8,184)
			$        17,081		$          9,841		$        32,992		$        16,424

 

 

RCI HOSPITALITY HOLDINGS, INC.
NON-GAAP SEGMENT INFORMATION
($ in thousands)
		For the Three Months Ended March 31, 2022										For the Three Months Ended March 31, 2021
		Nightclubs		Bombshells		Other		Corporate		Total		Nightclubs		Bombshells		Other		Corporate		Total
Income (loss) from operations		$     19,126		$       3,468		$           (34)		$     (5,479)		$     17,081		$     10,468		$       3,142		$        (139)		$     (3,630)		$       9,841
Amortization of intangibles		47		1		-		1		49		47		3		29		-		79
Settlement of lawsuits		277		-		-		108		385		(4)		-		5		-		1
Impairment of assets		-		-		-		-		-		1,401		-		-		-		1,401
Loss (gain) on sale of businesses and assets		(125)		4		-		63		(58)		14		47		-		30		91
Gain on insurance		(320)		-		-		-		(320)		32		-		-		(44)		(12)
Non-GAAP operating income (loss)		$     19,005		$       3,473		$           (34)		$     (5,307)		$     17,137		$     11,958		$       3,192		$        (105)		$     (3,644)		$     11,401
GAAP operating margin		39.7%		22.6%		-18.4%		-8.6%		26.8%		34.0%		23.9%		-101.5%		-8.2%		22.3%
Non-GAAP operating margin		39.5%		22.7%		-18.4%		-8.3%		26.9%		38.8%		24.3%		-76.6%		-8.3%		25.9%
		For the Six Months Ended March 31, 2022										For the Six Months Ended March 31, 2021
		Nightclubs		Bombshells		Other		Corporate		Total		Nightclubs		Bombshells		Other		Corporate		Total
Income (loss) from operations		$     37,862		$       6,270		$           (77)		$  (11,063)		$     32,992		$     18,963		$       5,859		$        (214)		$     (8,184)		$     16,424
Amortization of intangibles		94		4		-		1		99		94		7		57		-		158
Settlement of lawsuits		454		10		-		113		577		114		34		5		-		153
Impairment of assets		-		-		-		-		-		1,401		-		-		-		1,401
Loss (gain) on sale of businesses and assets		(80)		17		-		(337)		(400)		14		47		-		25		86
Gain on insurance		(321)		-		-		-		(321)		(165)		-		-		(44)		(209)
Non-GAAP operating income (loss)		$     38,009		$       6,301		$           (77)		$  (11,286)		$     32,947		$     20,421		$       5,947		$        (152)		$     (8,203)		$     18,013
GAAP operating margin		39.9%		20.8%		-16.4%		-8.8%		26.3%		33.9%		22.4%		-64.5%		-9.9%		19.9%
Non-GAAP operating margin		40.0%		20.9%		-16.4%		-9.0%		26.2%		36.5%		22.7%		-45.8%		-9.9%		21.8%

 

 

RCI HOSPITALITY HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
				For the Three Months Ended				For the Six Months Ended
				March 31, 2022		March 31, 2021		March 31, 2022		March 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net income				$                 10,973		$                   6,032		$                 21,537		$                 15,541
Adjustments to reconcile net income to net cash
provided by operating activities:
	Depreciation and amortization			2,877		2,117		5,071		4,140
	Loss (gain) on sale of businesses and assets			(185)		91		(708)		86
	Impairment of assets			-		1,401		-		1,401
	Unrealized loss on equity securities			-		34		1		67
	Amortization of debt discount and issuance costs			85		50		136		101
	Gain on debt extinguishment			-		(378)		(83)		(5,298)
	Noncash lease expense			609		427		1,238		848
	Gain on insurance			(321)		(44)		(321)		(294)
	Doubtful accounts expense (reversal) on notes receivable			36		35		53		(58)
	Changes in operating assets and liabilities:
		Accounts receivable		(279)		1,704		1,065		3,137
		Inventories		169		(9)		(276)		(31)
		Prepaid expenses, other current assets and other assets		1,159		369		(5,360)		1,494
		Accounts payable, accrued and other liabilities		(3,526)		(857)		5,508		(3,888)
	Net cash provided by operating activities			11,597		10,972		27,861		17,246
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of businesses and assets				2,107		8		2,910		8
Proceeds from insurance				300		44		485		294
Proceeds from notes receivable				48		35		82		61
Payments for property and equipment and intangible assets				(4,140)		(5,429)		(13,990)		(6,718)
Acquisition of businesses, net of cash acquired				-		-		(39,302)		-
	Net cash used in investing activities			(1,685)		(5,342)		(49,815)		(6,355)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from debt obligations				18,740		2,176		35,742		2,176
Payments on debt obligations				(4,802)		(4,232)		(7,290)		(5,977)
Purchase of treasury stock				(2,845)		-		(2,845)		(1,794)
Payment of dividends				(474)		(360)		(854)		(720)
Payment of loan origination costs				(418)		(25)		(418)		(25)
	Net cash provided by (used in) financing activities			10,201		(2,441)		24,335		(6,340)
NET INCREASE IN CASH AND CASH EQUIVALENTS				20,113		3,189		2,381		4,551
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD				17,954		16,967		35,686		15,605
CASH AND CASH EQUIVALENTS AT END OF PERIOD				$                 38,067		$                 20,156		$                 38,067		$                 20,156

 

 

RCI HOSPITALITY HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
					March 31,		September 30,		March 31,
					2022		2021		2021
ASSETS
Current assets
	Cash and cash equivalents				$                38,067		$                35,686		$                20,156
	Accounts receivable, net				6,262		7,570		3,630
	Current portion of notes receivable				292		220		214
	Inventories				3,361		2,659		2,403
	Prepaid expenses and other current assets				6,880		1,928		5,020
	Assets held for sale				6,126		4,887		7,382
		Total current assets			60,988		52,950		38,805
Property and equipment, net					203,434		175,952		175,153
Operating lease right-of-use assets, net					36,180		24,308		24,698
Notes receivable, net of current portion					5,411		2,839		2,892
Goodwill					54,484		39,379		45,686
Intangibles, net					125,284		67,824		73,070
Other assets					1,771		1,367		806
			Total assets		$             487,552		$             364,619		$             361,110
LIABILITIES AND EQUITY
Current liabilities
	Accounts payable				$                  6,255		$                  4,408		$                  4,021
	Accrued liabilities				15,576		10,403		12,321
	Current portion of long-term debt, net				11,177		6,434		16,380
	Current portion of operating lease liabilities				2,306		1,780		1,692
		Total current liabilities			35,314		23,025		34,414
Deferred tax liability, net					22,040		19,137		20,390
Debt, net of current portion and debt discount and issuance costs					166,903		118,734		116,032
Operating lease liabilities, net of current portion					35,517		24,150		24,583
Other long-term liabilities					355		350		357
		Total liabilities			260,129		185,396		195,776
Commitments and contingencies
Equity
	Preferred stock				-		-		-
	Common stock				94		90		90
	Additional paid-in capital				77,553		50,040		50,040
	Retained earnings				150,366		129,693		115,811
		Total RCIHH stockholders' equity			228,013		179,823		165,941
	Noncontrolling interests				(590)		(600)		(607)
		Total equity			227,423		179,223		165,334
			Total liabilities and equity		$             487,552		$             364,619		$             361,110

 

 

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SOURCE RCI Hospitality Holdings, Inc.

FAQ

What were RCI Hospitality Holdings' Q2 2022 revenues and growth?

RCI Hospitality Holdings reported total revenues of $63.7 million for Q2 2022, a 44.6% increase year-over-year.

How much did RICK's earnings per share (EPS) grow in Q2 2022?

RICK's EPS grew by 69.1% year-over-year to $1.15 in Q2 2022.

What are the company's future expansion plans?

RCI Hospitality is focused on acquiring new clubs, improving existing ones, and expanding Bombshells locations.

When is the earnings call for RCI Hospitality Holdings?

The earnings call is scheduled for today at 4:30 PM ET via Twitter Spaces.

What was RICK's net income in Q2 2022?

RCI Hospitality's net income attributable to common stockholders was $11.0 million, reflecting a 79.8% increase year-over-year.