RCI Reports 3Q20 Results; Positive Operating Cash Flow During the Quarter

Rhea-AI Summary

RCI Hospitality Holdings reported Q3 financial results impacted by the Covid-19 pandemic. Total revenues fell to $14.7 million, with $156,000 in April, $5.7 million in May, and $8.9 million in June. The net loss attributable to shareholders was $5.5 million or $0.60 per share. Despite challenges, the company noted positive operating cash flow of $166,000 and cash reserves of $14.8 million. Bombshells restaurants achieved a 22.3% operating margin. Currently, 31 locations are operational, and July revenues reached $7.6 million.

Positive

• Achieved positive operating cash flow of $166,000 despite revenue decline.
• Bombshells segment reported record revenues in May and June with an operating margin of 22.3%.
• Total cash at June 30, 2020 was $14.8 million, providing a buffer during downturns.
• Current operational locations increased to 31, indicating recovery progress.

Negative

• Total revenues declined by 68.7% compared to prior year.
• Net loss attributable to shareholders was $5.5 million for the quarter.
• Nightclubs segment reported significant operating losses totaling $3.1 million.

HOUSTON, Aug. 10, 2020 /PRNewswire/ -- RCI Hospitality Holdings, Inc. (Nasdaq: RICK) today reported results for the third quarter ended June 30, 2020 and filed its corresponding Form 10-Q. Results are not comparable to prior periods due to the Covid-19 pandemic. In line with government regulations, all locations remained closed in April, a number reopened in May and June, and some of those had to close temporarily before quarter-end.

Key Points

• Total revenues of $14.7 million with $156 thousand in April, $5.7 million in May, and $8.9 million in June.
• Net loss attributable to common shareholders of $5.5 million or $0.60 per share.
• Positive operating cash flow. Net cash from operating activities and free cash flow* of $166 thousand.
• Cash at June 30, 2020 was $14.8 million and accounts receivable were $5.5 million, including a $3.6 million income tax receivable.
• Bombshells restaurants had record two-month revenues in May-June and quarterly segment operating margin of 22.3% that exceeded our FY20 target.
• Nightclubs that were able to open performed well considering 3Q20's operating environment.
• July revenues totaled $7.6 million.
• 31 locations open as of today.
• Approximately half of our team members are back at work after extensive furloughs in March.
• All open locations follow Covid-19 safety standards for guests and team members, including mandatory mask, social distancing, occupancy and hourly restrictions, as well as closing temporarily for periodic sanitizing.
• Though our cash flows are not what we anticipated at the start of FY20, the near-term outlook for our business remains strong, and we expect to generate adequate cash flows from operations over the next 12 months. Please see our 10-Q for further discussion.

Conference Call

A conference call to discuss 3Q20 results, outlook and related matters will be held today at 4:30 PM ET:

• Live Participant Phone Number: Toll Free 877-407-9210, International 201-689-8049
• To access the live webcast, slides or replay, visit: https://www.webcaster4.com/Webcast/Page/2209/36059
• Phone replay: Toll Free 877-481-4010, International 919-882-2331, Passcode: 36059

CEO Comment

Eric Langan, President & CEO, said: "After more than five months, we are more confident in managing how the pandemic is affecting our businesses. By being agile, innovative and acting quickly, we believe we have made the company more resilient.

"We have significantly reduced our cost structure. All payments not deferred were made as required. We have learned how to safely open, close, and reopen locations, and have developed effective ways to serve guests and market our businesses in this new environment. In addition, we have been able to retain our key personnel and rehire many of our valuable team members.

"We have also continued to pursue longer-term strategies. For example, during 3Q20 we sold the second of two excess parcels at Bombshells I-10 in Houston. This significantly reduced our total debt at this location as planned.

"Even with no sales in April, we ended 3Q20 with small but positive operating cash flow, sufficient working capital, and open locations that should provide us with ample staying power. When more locations open, such as our larger Florida and New York units, we believe our new cost structure and marketing should generate noticeably increased cash flow even with Covid-related restrictions.

"Our people have been unbelievable. A special thanks goes out to our team members for making all of this possible."

As of the release of this report, we do not know the extent and duration of the impact of Covid-19 on our businesses due to the uncertainty about the spread of the virus. Lower sales, as caused by social distancing guidelines, could lead to adverse financial results. However, we will continually monitor and evaluate the situation and will determine any further measures to be instituted, including refinancing several of our debt obligations.

3Q20 Statement of Operations (All comparisons are to 3Q19 unless otherwise noted)

• Consolidated revenues of $14.7 million declined 68.7%. Bombshells segment generated revenues of $4.3 million in May and $4.2 million in June. Nightclubs segment generated revenues of $1.3 million in May and $4.7 million in June.
• All locations remained closed in April 2020. Following changing regional conditions and government regulations, 11 reopened by May 15, a total of 34 were open by May 31, a total of 40 were open by June 15, and a total of 29 were open at the end of 3Q20. As of today, we have 31 locations open.
• Cost of goods was 16.2% of revenues compared to 14.2% due to a higher proportion of food sales.
• Salaries and wages and SGA costs declined 48.9%. This reflected cost-cutting and fewer locations open, partially offset by one month of no open locations and new Covid-related safety costs.
• Net other charges of $424 thousand compared to a net gain of $172 thousand. 3Q20 reflected $1.0 million in additional Covid-19 impairment and a $608 thousand gain from the sale of real estate, mainly excess property around Bombshells I-10. Most of the $1.9 million sale proceeds paid down related debt.
• By segment, Bombshells had a $1.9 million operating profit at a 22.3% margin with a higher level of sales and more consistent occupancy while operating in line with indoor restrictions.
• Nightclubs had a $3.1 million operating loss, which included depreciation of $1.5 million and net charges of $363 thousand (both non-cash).
• Interest expense was 3.3% lower than a year ago due to debt paydowns prior to and during 3Q20.
• Income tax was a $1.4 million benefit compared to a $1.8 million expense.
• Weighted average number of common shares outstanding of 9.1 million declined 5.1% due to repurchases prior to 3Q20.

June 30, 2020 Balance Sheet (All comparisons are to March 31, 2020 unless otherwise noted)

• Cash and cash equivalents of $14.8 million compared to $9.8 million.
• Long-term debt of $142.7 million compared to $140.4 million. The increase primarily reflects the addition of a $5.4 million SBA loan partially offset by 3Q20 paydowns of other debt.

*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, (d) settlement of lawsuits, and (e) impairment of assets. 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) gains or losses on sale of businesses and assets, (c) gains or losses on insurance, (d) unrealized gains or losses on equity securities, (e) settlement of lawsuits, (f) impairment of assets, and (g) 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 26.9% and 22.8% effective tax rate of the pre-tax non-GAAP income before taxes for the nine months ended June 30, 2020 and 2019, 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) settlement of lawsuits, and (h) impairment of assets. 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.

Note

All references to the "company," "we," "our," and similar terms include RCI Hospitality Holdings, Inc. and its subsidiaries, unless the context indicates otherwise.

About RCI Hospitality Holdings, Inc. (Nasdaq: RICK)

With more than 40 units, RCI Hospitality Holdings, Inc., through its subsidiaries, is the country's leading company in gentlemen's clubs and sports bars/restaurants. Clubs in New York City, Chicago, Dallas/Ft. Worth, Houston, Miami, Minneapolis, St. Louis, Charlotte, Pittsburgh, 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. Please visit http://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 in this press release, 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) our ability to maintain compliance with the filing requirements of the SEC and the Nasdaq Stock Market, (vii) the impact and uncertainty of the coronavirus pandemic, and (viii) 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, 2019 and its latest Form 10-Q 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.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share and percentage data)
					For the Three Months Ended June 30,								For the Nine Months Ended June 30,
					2020				2019				2020				2019
					Amount		% of Revenue		Amount		% of Revenue		Amount		% of Revenue		Amount		% of Revenue
Revenues
	Sales of alcoholic beverages				$          7,623		51.8%		$        19,570		41.6%		$        45,285		43.7%		$        56,366		41.5%
	Sales of food and merchandise				3,452		23.4%		7,046		15.0%		17,378		16.8%		19,175		14.1%
	Service revenues				2,907		19.7%		17,299		36.8%		34,448		33.3%		51,609		38.0%
	Other				739		5.0%		3,112		6.6%		6,430		6.2%		8,726		6.4%
		Total revenues			14,721		100.0%		47,027		100.0%		103,541		100.0%		135,876		100.0%
Operating expenses
	Cost of goods sold
		Alcoholic beverages sold			1,245		16.3%		4,015		20.5%		8,826		19.5%		11,541		20.5%
		Food and merchandise sold			1,125		32.6%		2,565		36.4%		5,917		34.0%		6,857		35.8%
		Service and other			20		0.5%		121		0.6%		205		0.5%		307		0.5%
			Total cost of goods sold (exclusive of items shown below)		2,390		16.2%		6,701		14.2%		14,948		14.4%		18,705		13.8%
	Salaries and wages				5,421		36.8%		13,164		28.0%		30,866		29.8%		37,168		27.4%
	Selling, general and administrative				8,908		60.5%		14,895		31.7%		39,889		38.5%		43,263		31.8%
	Depreciation and amortization				2,235		15.2%		2,465		5.2%		6,696		6.5%		6,718		4.9%
	Other charges (gains), net				424		2.9%		(172)		-0.4%		8,588		8.3%		(2,250)		-1.7%
		Total operating expenses			19,378		131.6%		37,053		78.8%		100,987		97.5%		103,604		76.2%
Income (loss) from operations					(4,657)		-31.6%		9,974		21.2%		2,554		2.5%		32,272		23.8%
Other income (expenses)
	Interest expense				(2,459)		-16.7%		(2,543)		-5.4%		(7,403)		-7.1%		(7,709)		-5.7%
	Interest income				80		0.5%		92		0.2%		263		0.3%		218		0.2%
	Unrealized gain (loss) on equity securities				31		0.2%		(38)		-0.1%		(103)		-0.1%		(408)		-0.3%
Income (loss) before income taxes					(7,005)		-47.6%		7,485		15.9%		(4,689)		-4.5%		24,373		17.9%
Income tax expense (benefit)					(1,437)		-9.8%		1,806		3.8%		(1,262)		-1.2%		5,547		4.1%
Net income (loss)					(5,568)		-37.8%		5,679		12.1%		(3,427)		-3.3%		18,826		13.9%
Net loss (income) attributable to noncontrolling interests					94		0.6%		(41)		-0.1%		135		0.1%		(109)		-0.1%
Net income (loss) attributable to RCIHH common shareholders					$        (5,474)		-37.2%		$           5,638		12.0%		$        (3,292)		-3.2%		$        18,717		13.8%
Earnings (loss) per share
	Basic and diluted				$          (0.60)				$             0.59				$          (0.36)				$            1.94
Weighted average shares outstanding
	Basic and diluted				9,125				9,620				9,224				9,671
Dividends per share					$             0.03				$             0.03				$            0.10				$            0.09

 

 

RCI HOSPITALITY HOLDINGS, INC.
NON-GAAP FINANCIAL MEASURES
(in thousands, except per share and percentage data)
		For the Three Months				For the Nine Months
		Ended June 30,				Ended June 30,
		2020		2019		2020		2019
Reconciliation of GAAP net income (loss) to Adjusted EBITDA
Net income (loss) attributable to RCIHH common shareholders		$      (5,474)		$        5,638		$      (3,292)		$      18,717
Income tax expense (benefit)		(1,437)		1,806		(1,262)		5,547
Interest expense, net		2,379		2,451		7,140		7,491
Settlement of lawsuits		50		-		74		144
Impairment of assets		982		-		9,192		-
Gain on sale of businesses and assets		(608)		(265)		(645)		(2,487)
Unrealized loss (gain) on equity securities		(31)		38		103		408
Loss (gain) on insurance		-		93		(33)		93
Depreciation and amortization		2,235		2,465		6,696		6,718
Adjusted EBITDA		$      (1,904)		$      12,226		$      17,973		$      36,631
Reconciliation of GAAP net income (loss) to non-GAAP net income (loss)
Net income (loss) attributable to RCIHH common shareholders		$      (5,474)		$        5,638		$      (3,292)		$      18,717
Amortization of intangibles		149		165		462		474
Settlement of lawsuits		50		-		74		144
Impairment of assets		982		-		9,192		-
Gain on sale of businesses and assets		(608)		(265)		(645)		(2,487)
Unrealized loss (gain) on equity securities		(31)		38		103		408
Loss (gain) on insurance		-		93		(33)		93
Net income tax effect including rate change		(1,840)		(6)		(2,499)		327
Non-GAAP net income (loss)		$      (6,772)		$        5,663		$        3,362		$      17,676
Reconciliation of GAAP diluted earnings (loss) per share to non-GAAP diluted earnings (loss) per share
Diluted shares		9,125		9,620		9,224		9,671
GAAP diluted earnings (loss) per share		$        (0.60)		$          0.59		$        (0.36)		$          1.94
Amortization of intangibles		0.02		0.02		0.05		0.05
Settlement of lawsuits		0.01		-		0.01		0.01
Impairment of assets		0.11		-		1.00		-
Gain on sale of businesses and assets		(0.07)		(0.03)		(0.07)		(0.26)
Unrealized loss on equity securities		(0.00)		0.00		0.01		0.04
Loss (gain) on insurance		-		0.01		(0.00)		0.01
Net income tax effect including rate change		(0.20)		(0.00)		(0.27)		0.03
Non-GAAP diluted earnings (loss) per share		$        (0.74)		$          0.59		$          0.36		$          1.83
Reconciliation of GAAP operating income (loss) to non-GAAP operating income (loss)
Income (loss) from operations		$      (4,657)		$        9,974		$        2,554		$      32,272
Amortization of intangibles		149		165		462		474
Settlement of lawsuits		50		-		74		144
Impairment of assets		982		-		9,192		-
Gain on sale of businesses and assets		(608)		(265)		(645)		(2,487)
Loss (gain) on insurance		-		93		(33)		93
Non-GAAP operating income		$      (4,084)		$        9,967		$      11,604		$      30,496
Reconciliation of GAAP operating margin to non-GAAP operating margin
GAAP operating margin		-31.6%		21.2%		2.5%		23.8%
Amortization of intangibles		1.0%		0.4%		0.4%		0.3%
Settlement of lawsuits		0.3%		0.0%		0.1%		0.1%
Impairment of assets		6.7%		0.0%		8.9%		0.0%
Gain on sale of businesses and assets		-4.1%		-0.6%		-0.6%		-1.8%
Loss (gain) on insurance		0.0%		0.2%		0.0%		0.1%
Non-GAAP operating margin		-27.7%		21.2%		11.2%		22.4%
Reconciliation of net cash provided by operating activities to free cash flow
Net cash provided by operating activities		$            166		$        7,443		$      12,147		$      28,414
Less: Maintenance capital expenditures		-		955		2,111		2,072
Free cash flow		$            166		$        6,488		$      10,036		$      26,342

 

 

RCI HOSPITALITY HOLDINGS, INC.
SEGMENT INFORMATION
(in thousands)
			For the Three Months				For the Nine Months
			Ended June 30,				Ended June 30,
			2020		2019		2020		2019
Revenues
	Nightclubs		$          6,013		$        37,889		$        75,239		$      112,664
	Bombshells		8,531		8,755		27,684		22,295
	Other		177		383		618		917
			$        14,721		$        47,027		$      103,541		$      135,876
Income (loss) from operations
	Nightclubs		$        (3,088)		$        14,034		$        13,002		$        44,499
	Bombshells		1,903		686		4,166		1,543
	Other		(95)		(111)		(480)		(406)
	General corporate		(3,377)		(4,635)		(14,134)		(13,364)
			$        (4,657)		$          9,974		$          2,554		$        32,272

 

 

RCI HOSPITALITY HOLDINGS, INC.
NON-GAAP SEGMENT INFORMATION
($ in thousands)
		For the Three Months Ended June 30, 2020										For the Three Months Ended June 30, 2019
		Nightclubs		Bombshells		Other		Corporate		Total		Nightclubs		Bombshells		Other		Corporate		Total
Income (loss) from operations		$     (3,088)		$       1,903		$           (95)		$     (3,377)		$     (4,657)		$     14,034		$           686		$        (111)		$     (4,635)		$       9,974
Amortization of intangibles		49		3		96		-		148		-		-		-		165		165
Settlement of lawsuits		50		-		-		-		50		-		-		-		-		-
Impairment of assets		982		-		-		-		982		-		-		-		-		-
Loss (gain) on sale of businesses and assets		(619)		16		-		(4)		(607)		(260)		-		-		(5)		(265)
Loss (gain) on insurance		-		-		-		-		-		93		-		-		-		93
Non-GAAP operating income (loss)		$     (2,626)		$       1,922		$               1		$     (3,381)		$     (4,084)		$     13,867		$           686		$        (111)		$     (4,475)		$       9,967
GAAP operating margin		-51.4%		22.3%		-53.7%		-22.9%		-31.6%		37.0%		7.8%		-29.0%		-9.9%		21.2%
Non-GAAP operating margin		-43.7%		22.5%		0.6%		-23.0%		-27.7%		36.6%		7.8%		-29.0%		-9.5%		21.2%
		For the Nine Months Ended June 30, 2020										For the Nine Months Ended June 30, 2019
		Nightclubs		Bombshells		Other		Corporate		Total		Nightclubs		Bombshells		Other		Corporate		Total
Income (loss) from operations		$     13,002		$       4,166		$        (480)		$  (14,134)		$       2,554		$     44,499		$       1,543		$        (406)		$  (13,364)		$     32,272
Amortization of intangibles		163		11		287		-		461		-		-		-		474		474
Settlement of lawsuits		74		-		-		-		74		129		3		-		12		144
Impairment of assets		8,947		245		-		-		9,192		-		-		-		-		-
Loss (gain) on sale of businesses and assets		(619)		16		-		(41)		(644)		(2,412)		1		-		(76)		(2,487)
Loss (gain) on insurance		(20)		-		-		(13)		(33)		93		-		-		-		93
Non-GAAP operating income (loss)		$     21,547		$       4,438		$        (193)		$  (14,188)		$     11,604		$     42,309		$       1,547		$        (406)		$  (12,954)		$     30,496
GAAP operating margin		17.3%		15.0%		-77.7%		-13.7%		2.5%		39.5%		6.9%		-44.3%		-9.8%		23.8%
Non-GAAP operating margin		28.6%		16.0%		-31.2%		-13.7%		11.2%		37.6%		6.9%		-44.3%		-9.5%		22.4%

 

 

RCI HOSPITALITY HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
				For the Three Months Ended				For the Nine Months Ended
				June 30, 2020		June 30, 2019		June 30, 2020		June 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)				$                 (5,568)		$                   5,679		$                 (3,427)		$                 18,826
Adjustments to reconcile net income (loss) to net cash
provided by operating activities:
	Depreciation and amortization			2,235		2,465		6,696		6,718
	Deferred income tax expense (benefit)			(362)		106		(1,517)		1,237
	Gain on sale of businesses and assets			(713)		(507)		(749)		(2,704)
	Impairment of assets			982		-		9,192		-
	Unrealized loss (gain) on equity securities			(31)		38		103		408
	Amortization of debt discount and issuance costs			65		74		194		276
	Deferred rent expense			-		47		-		236
	Noncash lease expense			419		-		1,244		-
	Loss (gain) on insurance			-		93		(33)		93
	Doubtful accounts expense on notes receivable			495		-		495		-
	Changes in operating assets and liabilities:
		Accounts receivable		(1,970)		578		(53)		2,305
		Inventories		108		95		(29)		(87)
		Prepaid expenses, other current assets and other assets		2,102		649		4,942		4,199
		Accounts payable, accrued and other liabilities		2,404		(1,874)		(4,911)		(3,093)
	Net cash provided by operating activities			166		7,443		12,147		28,414
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of businesses and assets				1,936		2,240		2,041		5,106
Proceeds from insurance				-		-		945		-
Proceeds from notes receivable				1,152		39		1,555		107
Issuance of note receivable				-		-		-		(420)
Payments for property and equipment and intangible assets				(242)		(2,999)		(5,565)		(16,901)
Acquisition of businesses, net of cash acquired				-		-		-		(13,500)
	Net cash provided by (used in) investing activities			2,846		(720)		(1,024)		(25,608)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from debt obligations				5,623		2,034		6,503		12,330
Payments on debt obligations				(3,392)		(5,347)		(7,489)		(18,634)
Purchase of treasury stock				-		(403)		(8,488)		(2,364)
Payment of dividends				(273)		(285)		(920)		(867)
Payment of loan origination costs				-		-		-		(20)
Distribution to noncontrolling interests				-		(21)		(31)		(21)
	Net provided by (cash used) in financing activities			1,958		(4,022)		(10,425)		(9,576)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS				4,970		2,701		698		(6,770)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD				9,825		8,255		14,097		17,726
CASH AND CASH EQUIVALENTS AT END OF PERIOD				$                 14,795		$                 10,956		$                 14,795		$                 10,956

 

 

RCI HOSPITALITY HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
					June 30,		September 30,		June 30,
					2020		2019		2019
ASSETS
Current assets
	Cash and cash equivalents				$                14,795		$                14,097		$                10,956
	Accounts receivable, net				5,529		6,289		5,001
	Current portion of notes receivable				219		954		1,152
	Inventories				2,627		2,598		2,502
	Prepaid insurance				1,415		5,446		896
	Other current assets				1,752		2,521		2,090
	Assets held for sale				2,013		2,866		-
		Total current assets			28,350		34,771		22,597
Property and equipment, net					181,960		183,956		191,493
Operating lease right-of-use assets, net					25,962		-		-
Notes receivable, net of current portion					2,896		4,211		3,810
Goodwill					47,109		53,630		55,271
Intangibles, net					73,224		75,951		76,285
Other assets					873		1,118		1,422
			Total assets		$              360,374		$              353,637		$              350,878
LIABILITIES AND EQUITY
Current liabilities
	Accounts payable				$                  3,955		$                  3,810		$                  2,544
	Accrued liabilities				10,286		14,644		9,117
	Current portion of long-term debt, net				17,249		15,754		16,374
	Current portion of operating lease liabilities				1,586		-		-
		Total current liabilities			33,076		34,208		28,035
Deferred tax liability, net					20,141		21,658		22,076
Long-term debt, net of current portion and debt discount and issuance costs					125,487		127,774		130,205
Operating lease liabilities, net of current portion					25,863		-		-
Other long-term liabilities					372		1,696		1,656
		Total liabilities			204,939		185,336		181,972
Commitments and contingencies
Equity
	Preferred stock				-		-		-
	Common stock				91		96		96
	Additional paid-in capital				52,829		61,312		61,849
	Retained earnings				102,837		107,049		106,976
		Total RCIHH stockholders' equity			155,757		168,457		168,921
	Noncontrolling interests				(322)		(156)		(15)
		Total equity			155,435		168,301		168,906
			Total liabilities and equity		$             360,374		$             353,637		$             350,878

 

 

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SOURCE RCI Hospitality Holdings, Inc.

FAQ

What are RCI Hospitality Holdings' revenues for Q3 2020?

RCI Hospitality Holdings reported total revenues of $14.7 million for the third quarter ended June 30, 2020.

What was the net loss for RCI Hospitality in Q3 2020?

The net loss attributable to common shareholders in Q3 2020 was $5.5 million, or $0.60 per share.

How did Bombshells perform in Q3 2020?

Bombshells restaurants achieved record revenues in May and June, with a quarterly operating margin of 22.3%.

What was the cash position of RCI Hospitality as of June 30, 2020?

As of June 30, 2020, RCI Hospitality Holdings had cash and cash equivalents of $14.8 million.

How many locations did RCI Hospitality have open as of the latest report?

As of the report, RCI Hospitality had 31 locations open.