RCI Reports 3Q22 Results: Total Revenues $70.7M, GAAP EPS $1.48, Non-GAAP EPS $1.60

Rhea-AI Summary

RCI Hospitality Holdings, Inc. (Nasdaq: RICK) reported strong financial results for the third quarter of fiscal 2022, with total revenues of $70.7 million, a 22.2% increase year-over-year. EPS rose 8% to $1.48, while non-GAAP EPS surged 18% to $1.60. Free cash flow reached $18 million, up 39.1% from the previous year. The Nightclubs segment saw a 33.3% revenue increase, generating $54.7 million. Despite Bombshells' slight revenue decline of 1.8%, the overall performance reflects a significant rebound in operations post-COVID. The company also confirmed ongoing share buybacks and expansion activities.

Positive

• Total revenues increased by 22.2% year-over-year to $70.7 million.
• EPS rose to $1.48, an 8% increase.
• Free cash flow reached $18 million, a 39.1% increase from the previous year.
• Nightclubs revenue increased by 33.3%, generating $54.7 million.
• Adjusted EBITDA improved by 20.6% to $24.6 million.

Negative

• Bombshells segment revenue declined by 1.8% compared to an unusually strong 3Q21.
• Operating margin decreased to 29.0% from 32.0% year-over-year.

Twitter Spaces Conference Call at 4:30 PM ET Today; Meet Management at 7 PM ET Tonight

HOUSTON, Aug. 9, 2022 /PRNewswire/ -- RCI Hospitality Holdings, Inc. (Nasdaq: RICK) today reported results and filed its Form 10-Q for the fiscal 2022 third quarter and nine months ended June 30, 2022. 

Summary Financials	3Q22	Change YoY	9M22	Change YoY
Total Revenues	$70.7M	22.2 %	$196.2M	39.9 %
EPS	$1.48	8.0 %	$3.76	20.9 %
Non-GAAP EPS*	$1.60	18.0 %	$3.89	55.5 %
Net Cash from Operating Activities	$18.9M	26.2 %	$46.8M	45.1 %
Free Cash Flow*	$18.0M	39.1 %	$44.4M	60.7 %
Net Income Attributable to RCIHH Common Stockholders	$13.9M	13.0 %	$35.4M	26.4 %
Adjusted EBITDA*	$24.6M	20.6 %	$62.5M	46.5 %
Basic & Diluted Shares	9.390M	4.3 %	9.428M	4.7 %

 

* See "Non-GAAP Financial Measures" below.

 

Status FY22 Share Buybacks**	Repurchased Shares	Cash Used for Repurchase	Average Price Per Share
2Q22	45,643	$2.85M	$62.33
3Q22	168,069	$9.21M	$54.81
Current Quarter to Date as of 8/5/22	42,250	$2.25M	$53.35
Total	255,962	$14.31M	$55.91

 

** No shares repurchased in 1Q22.

Eric Langan, President and CEO of RCI Hospitality Holdings, Inc., said: "RCI's third quarter benefited from higher sales, a continued rebound in Nightclubs service revenues, and a sequential improvement in Bombshells. This resulted in particularly strong free cash flow and adjusted EBITDA. Net cash from operating activities and FCF were further enhanced by receipt of a $2.2 million previously discussed tax refund. We ended 3Q22 with $37.5 million in cash after utilizing more than $12 million for share buybacks for the nine months, the cash portion of the Playmates Club acquisition, and the down payment for the 13th company-owned Bombshells location. To date in 4Q22, we've continued our expansion by acquiring clubs in Odessa, TX and South Florida, and buying back more shares."

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

Twitter Spaces	Telephone	Webcast, Slides & Replay
Follow @RicksCEO, @ZeroTangoTango, @BradleyChhay, or @itsmarkmoran, and go to: https://twitter.com/i/spaces/1PlJQabdPNqJE	Toll Free 888-506-0062 International: 973-528-0011 Passcode: 353724	https://www.webcaster4.com/Webcast/Page/2209/46217

Meet Management at 7:00 PM ET Tonight

• Investors are invited to Meet Management at one of RCI's top revenue generating clubs
• Rick's Cabaret New York, 50 W 33rd St, New York, NY 10001
• RSVP your contact information to gary.fishman@anreder.com by 5:00 PM ET today

3Q22 Nightclubs Segment

• Nightclubs generated revenues of $54.7 million at an operating margin of 41.1% (42.7% non-GAAP), resulting in segment operating income of $22.5 million ($23.3 million non-GAAP).
• Revenues increased 33.3% compared to 3Q21. Acquisitions contributed $11.8 million of 3Q22 sales. Same-store sales grew 4.8%. High-margin service revenues expanded 50.8% year-over-year. The third quarter was the first period since 1Q20 not affected by COVID.
• Compared to 2Q22, revenues increased 13.5%, non-GAAP operating margin improved 321 basis points, and non-GAAP segment income increased 22.7%, reflecting the continued rebound in Northern clubs and service revenues, and higher margins from acquisitions.

3Q22 Bombshells Segment

• Bombshells generated revenues of $15.8 million at an operating margin of 19.4% (23.6% non-GAAP), resulting in segment operating income of $3.1 million ($3.7 million non-GAAP).
• Revenues declined 1.8% compared to an unusually strong 3Q21, when Bombshells was one of the few bar and restaurant chains open in Texas due to the state of COVID at that time. Otherwise, Bombshells saw typical seasonal trends.
• Compared to 2Q22, revenues increased 3.0%, non-GAAP operating margin improved 94 bps, and non-GAAP segment income increased 7.2%.

3Q22 Consolidated (Comparisons are to 3Q21 and % are of total revenues unless indicated otherwise)

• Cost of goods sold (13.0% vs. 15.3%) reflected the increased sales mix of higher-margin service revenues (36.0% vs. 29.2%).
• Salaries and wages (24.6% vs. 24.0%) and SG&A (27.7% vs. 25.4%) reflected new employees and increased expenses related to new and acquired locations.
• Operating margin was 29.0% vs. 32.0% (31.2% vs. 31.8% non-GAAP).
• Interest expense (4.3% vs. 3.9%) primarily reflected higher debt from FY22 acquisitions.
• Income tax expense was $3.8 million compared to $4.0 million. The effective tax rate was 21.3% vs. 24.4%.
• Weighted average shares outstanding increased 4.3% due to shares issued for clubs acquired in October 2021, partially offset by later share repurchases.
• Debt was $188.0 million at 6/30/22 compared to $178.1 million at 3/31/22. The increase primarily reflected seller financing used in the May 2022 Playmates acquisition.

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 decide 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, (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) 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 21.6% and 24.3% effective tax rate of the pre-tax non-GAAP income before taxes for the nine months ended June 30, 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 60 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, Scarlett's Cabaret, Diamond Cabaret, and PT's Showclub. 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 June 30,								For the Nine Months Ended June 30,
					2022				2021				2022				2021
					Amount		% of Revenue		Amount		% of Revenue		Amount		% of Revenue		Amount		% of Revenue
Revenues
	Sales of alcoholic beverages				$        29,738		42.1 %		$        25,092		43.4 %		$        83,504		42.6 %		$        62,725		44.7 %
	Sales of food and merchandise				11,574		16.4 %		12,058		20.8 %		33,628		17.1 %		30,205		21.5 %
	Service revenues				25,444		36.0 %		16,880		29.2 %		67,821		34.6 %		38,442		27.4 %
	Other				3,958		5.6 %		3,830		6.6 %		11,289		5.8 %		8,945		6.4 %
		Total revenues			70,714		100.0 %		57,860		100.0 %		196,242		100.0 %		140,317		100.0 %
Operating expenses
	Cost of goods sold
		Alcoholic beverages sold			5,177		17.4 %		4,621		18.4 %		14,907		17.9 %		11,613		18.5 %
		Food and merchandise sold			3,959		34.2 %		4,043		33.5 %		11,756		35.0 %		9,961		33.0 %
		Service and other			46		0.2 %		208		1.0 %		170		0.2 %		304		0.6 %
			Total cost of goods sold (exclusive of items shown below)		9,182		13.0 %		8,872		15.3 %		26,833		13.7 %		21,878		15.6 %
	Salaries and wages				17,387		24.6 %		13,870		24.0 %		50,422		25.7 %		36,556		26.1 %
	Selling, general and administrative				19,572		27.7 %		14,697		25.4 %		56,495		28.8 %		39,467		28.1 %
	Depreciation and amortization				2,565		3.6 %		2,057		3.6 %		7,636		3.9 %		6,197		4.4 %
	Other charges (gains), net				1,501		2.1 %		(143)		-0.2 %		1,357		0.7 %		1,288		0.9 %
		Total operating expenses			50,207		71.0 %		39,353		68.0 %		142,743		72.7 %		105,386		75.1 %
Income from operations					20,507		29.0 %		18,507		32.0 %		53,499		27.3 %		34,931		24.9 %
Other income (expenses)
	Interest expense				(3,028)		-4.3 %		(2,281)		-3.9 %		(8,496)		-4.3 %		(7,079)		-5.0 %
	Interest income				103		0.1 %		72		0.1 %		321		0.2 %		194		0.1 %
	Non-operating gains, net				127		0.2 %		9		0.0 %		211		0.1 %		5,356		3.8 %
Income before income taxes					17,709		25.0 %		16,307		28.2 %		45,535		23.2 %		33,402		23.8 %
Income tax expense					3,767		5.3 %		3,986		6.9 %		10,056		5.1 %		5,540		3.9 %
Net income					13,942		19.7 %		12,321		21.3 %		35,479		18.1 %		27,862		19.9 %
Net loss (income) attributable to noncontrolling interests					(40)		-0.1 %		(19)		0.0 %		(50)		0.0 %		174		0.1 %
Net income attributable to RCIHH common shareholders					$        13,902		19.7 %		$        12,302		21.3 %		$        35,429		18.1 %		$        28,036		20.0 %
Earnings per share
	Basic and diluted				$            1.48				$            1.37				$            3.76				$            3.11
Weighted average shares outstanding
	Basic and diluted				9,389,675				8,999,910				9,428,461				9,006,373
Dividends per share					$            0.05				$            0.04				$            0.14				$            0.12

 

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,
		2022		2021		2022		2021
Reconciliation of GAAP net income to Adjusted EBITDA
Net income attributable to RCIHH common stockholders		$      13,902		$      12,302		$      35,429		$      28,036
Income tax expense		3,767		3,986		10,056		5,540
Interest expense, net		2,925		2,209		8,175		6,885
Settlement of lawsuits		132		127		709		280
Impairment of assets		1,722		271		1,722		1,672
Gain on sale of businesses and assets		(266)		(541)		(666)		(455)
Gain on debt extinguishment		(53)		-		(138)		(5,329)
Unrealized loss on equity securities		-		(9)		1		58
Gain on insurance		(87)		-		(408)		(209)
Depreciation and amortization		2,565		2,057		7,636		6,197
Adjusted EBITDA		$      24,607		$      20,402		$      62,516		$      42,675
Reconciliation of GAAP net income to non-GAAP net income
Net income attributable to RCIHH common stockholders		$      13,902		$      12,302		$      35,429		$      28,036
Amortization of intangibles		25		51		124		209
Settlement of lawsuits		132		127		709		280
Impairment of assets		1,722		271		1,722		1,672
Gain on sale of businesses and assets		(266)		(541)		(666)		(455)
Gain on debt extinguishment		(53)		-		(138)		(5,329)
Unrealized loss on equity securities		-		(9)		1		58
Gain on insurance		(87)		-		(408)		(209)
Net income tax effect		(312)		39		(59)		(1,702)
Non-GAAP net income		$      15,063		$      12,240		$      36,714		$      22,560
Reconciliation of GAAP diluted earnings per share to non-GAAP diluted earnings per share
Diluted shares		9,389,675		8,999,910		9,428,461		9,006,373
GAAP diluted earnings per share		$          1.48		$          1.37		$          3.76		$          3.11
Amortization of intangibles		0.00		0.01		0.01		0.02
Settlement of lawsuits		0.01		0.01		0.08		0.03
Impairment of assets		0.18		0.03		0.18		0.19
Gain on sale of businesses and assets		(0.03)		(0.06)		(0.07)		(0.05)
Gain on debt extinguishment		(0.01)		-		(0.01)		(0.59)
Unrealized loss on equity securities		-		(0.00)		0.00		0.01
Gain on insurance		(0.01)		-		(0.04)		(0.02)
Net income tax effect		(0.03)		0.00		(0.01)		(0.19)
Non-GAAP diluted earnings per share		$          1.60		$          1.36		$          3.89		$          2.50
Reconciliation of GAAP operating income to non-GAAP operating income
Income from operations		$      20,507		$      18,507		$      53,499		$      34,931
Amortization of intangibles		25		51		124		209
Settlement of lawsuits		132		127		709		280
Impairment of assets		1,722		271		1,722		1,672
Gain on sale of businesses and assets		(266)		(541)		(666)		(455)
Gain on insurance		(87)		-		(408)		(209)
Non-GAAP operating income		$      22,033		$      18,415		$      54,980		$      36,428
Reconciliation of GAAP operating margin to non-GAAP operating margin
GAAP operating margin		29.0 %		32.0 %		27.3 %		24.9 %
Amortization of intangibles		0.0 %		0.1 %		0.1 %		0.1 %
Settlement of lawsuits		0.2 %		0.2 %		0.4 %		0.2 %
Impairment of assets		2.4 %		0.5 %		0.9 %		1.2 %
Gain on sale of businesses and assets		-0.4 %		-0.9 %		-0.3 %		-0.3 %
Gain on insurance		-0.1 %		0.0 %		-0.2 %		-0.1 %
Non-GAAP operating margin		31.2 %		31.8 %		28.0 %		26.0 %
Reconciliation of net cash provided by operating activities to free cash flow
Net cash provided by operating activities		$      18,893		$      14,971		$      46,754		$      32,217
Less: Maintenance capital expenditures		869		2,017		2,385		4,608
Free cash flow		$      18,024		$      12,954		$      44,369		$      27,609

 

RCI HOSPITALITY HOLDINGS, INC.
SEGMENT INFORMATION
(in thousands)
			For the Three Months				For the Nine Months
			Ended June 30,				Ended June 30,
			2022		2021		2022		2021
Revenues
	Nightclubs		$        54,684		$        41,031		$      149,639		$        97,015
	Bombshells		15,789		16,077		45,893		42,218
	Other		241		752		710		1,084
			$        70,714		$        57,860		$      196,242		$      140,317
Income (loss) from operations
	Nightclubs		$        22,459		$        18,350		$        60,321		$        37,313
	Bombshells		3,065		4,404		9,335		10,263
	Other		(82)		321		(159)		107
	General corporate		(4,935)		(4,568)		(15,998)		(12,752)
			$        20,507		$        18,507		$        53,499		$        34,931

 

RCI HOSPITALITY HOLDINGS, INC.
NON-GAAP SEGMENT INFORMATION
($ in thousands)
		For the Three Months Ended June 30, 2022										For the Three Months Ended June 30, 2021
		Nightclubs		Bombshells		Other		Corporate		Total		Nightclubs		Bombshells		Other		Corporate		Total
Income (loss) from operations		$     22,459		$       3,065		$          (82)		$     (4,935)		$     20,507		$     18,350		$       4,404		$          321		$     (4,568)		$     18,507
Amortization of intangibles		23		1		-		1		25		47		4		-		-		51
Settlement of lawsuits		124		8		-		-		132		123		4		-		-		127
Impairment of assets		1,072		650		-		-		1,722		271		-		-		-		271
Loss (gain) on sale of businesses and assets		(264)		-		-		(2)		(266)		(512)		9		-		(38)		(541)
Gain on insurance		(87)		-		-		-		(87)		-		-		-		-		-
Non-GAAP operating income (loss)		$     23,327		$       3,724		$          (82)		$     (4,936)		$     22,033		$     18,279		$       4,421		$          321		$     (4,606)		$     18,415
GAAP operating margin		41.1 %		19.4 %		-34.0 %		-7.0 %		29.0 %		44.7 %		27.4 %		42.7 %		-7.9 %		32.0 %
Non-GAAP operating margin		42.7 %		23.6 %		-34.0 %		-7.0 %		31.2 %		44.5 %		27.5 %		42.7 %		-8.0 %		31.8 %
		For the Nine Months Ended June 30, 2022										For the Nine Months Ended June 30, 2021
		Nightclubs		Bombshells		Other		Corporate		Total		Nightclubs		Bombshells		Other		Corporate		Total
Income (loss) from operations		$     60,321		$       9,335		$        (159)		$   (15,998)		$     53,499		$     37,313		$     10,263		$          107		$   (12,752)		$     34,931
Amortization of intangibles		117		5		-		2		124		141		11		57		-		209
Settlement of lawsuits		578		18		-		113		709		237		38		5		-		280
Impairment of assets		1,072		650		-		-		1,722		1,672		-		-		-		1,672
Loss (gain) on sale of businesses and assets		(344)		17		-		(339)		(666)		(498)		56		-		(13)		(455)
Gain on insurance		(408)		-		-		-		(408)		(165)		-		-		(44)		(209)
Non-GAAP operating income (loss)		$     61,336		$     10,025		$        (159)		$   (16,222)		$     54,980		$     38,700		$     10,368		$          169		$   (12,809)		$     36,428
GAAP operating margin		40.3 %		20.3 %		-22.4 %		-8.2 %		27.3 %		38.5 %		24.3 %		9.9 %		-9.1 %		24.9 %
Non-GAAP operating margin		41.0 %		21.8 %		-22.4 %		-8.3 %		28.0 %		39.9 %		24.6 %		15.6 %		-9.1 %		26.0 %

 

RCI HOSPITALITY HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
				For the Three Months Ended				For the Nine Months Ended
				June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net income				$                13,942		$                12,321		$                35,479		$                27,862
Adjustments to reconcile net income to net cash
provided by operating activities:
	Depreciation and amortization			2,565		2,057		7,636		6,197
	Deferred income tax benefit			(409)		(430)		(409)		(430)
	Gain on sale of businesses and assets			(574)		(712)		(1,282)		(626)
	Impairment of assets			1,722		271		1,722		1,672
	Unrealized loss on equity securities			-		(9)		1		58
	Amortization of debt discount and issuance costs			63		59		199		160
	Gain on debt extinguishment			-		-		(83)		(5,298)
	Noncash lease expense			487		434		1,725		1,282
	Gain on insurance			(87)		-		(408)		(294)
	Doubtful accounts expense (reversal) on notes receivable			700		36		753		(22)
	Changes in operating assets and liabilities:
		Accounts receivable		2,346		1,172		3,411		4,309
		Inventories		(216)		(76)		(492)		(107)
		Prepaid expenses, other current assets and other assets		2,089		852		(3,271)		2,346
		Accounts payable, accrued and other liabilities		(3,735)		(1,004)		1,773		(4,892)
	Net cash provided by operating activities			18,893		14,971		46,754		32,217
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of businesses and assets				1,701		3,205		4,611		3,213
Proceeds from insurance				30		-		515		294
Proceeds from notes receivable				45		34		127		95
Payments for property and equipment and intangible assets				(3,183)		(4,070)		(17,173)		(10,788)
Acquisition of businesses, net of cash acquired				(5,000)		-		(44,302)		-
	Net cash used in investing activities			(6,407)		(831)		(56,222)		(7,186)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from debt obligations				78		-		35,820		2,176
Payments on debt obligations				(3,424)		(4,868)		(10,714)		(10,845)
Purchase of treasury stock				(9,212)		-		(12,057)		(1,794)
Payment of dividends				(468)		(360)		(1,322)		(1,080)
Payment of loan origination costs				(27)		-		(445)		(25)
	Net cash provided by (used in) financing activities			(13,053)		(5,228)		11,282		(11,568)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS				(567)		8,912		1,814		13,463
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD				38,067		20,156		35,686		15,605
CASH AND CASH EQUIVALENTS AT END OF PERIOD				$                37,500		$                29,068		$                37,500		$                29,068

 

RCI HOSPITALITY HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
					June 30,		September 30,		June 30,
					2022		2021		2021
ASSETS
Current assets
	Cash and cash equivalents				$               37,500		$               35,686		$               29,068
	Accounts receivable, net				3,955		7,570		2,458
	Current portion of notes receivable				226		220		217
	Inventories				3,749		2,659		2,479
	Prepaid expenses and other current assets				4,475		1,928		4,062
	Assets held for sale				6,989		4,887		4,887
		Total current assets			56,894		52,950		43,171
Property and equipment, net					208,710		175,952		178,087
Operating lease right-of-use assets, net					37,753		24,308		24,481
Notes receivable, net of current portion					4,750		2,839		2,819
Goodwill					61,399		39,379		45,440
Intangibles, net					130,585		67,824		73,019
Other assets					2,088		1,367		922
			Total assets		$             502,179		$             364,619		$             367,939
LIABILITIES AND EQUITY
Current liabilities
	Accounts payable				$                 5,767		$                 4,408		$                 4,909
	Accrued liabilities				12,888		10,403		11,738
	Current portion of debt obligations, net				12,295		6,434		13,695
	Current portion of operating lease liabilities				2,730		1,780		1,720
		Total current liabilities			33,680		23,025		32,062
Deferred tax liability, net					24,074		19,137		19,960
Debt, net of current portion and debt discount and issuance costs					175,670		118,734		113,908
Operating lease liabilities, net of current portion					36,719		24,150		24,360
Other long-term liabilities					351		350		354
		Total liabilities			270,494		185,396		190,644
Commitments and contingencies
Equity
	Preferred stock				-		-		-
	Common stock				93		90		90
	Additional paid-in capital				68,342		50,040		50,040
	Retained earnings				163,800		129,693		127,753
		Total RCIHH stockholders' equity			232,235		179,823		177,883
	Noncontrolling interests				(550)		(600)		(588)
		Total equity			231,685		179,223		177,295
			Total liabilities and equity		$             502,179		$             364,619		$             367,939

 

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SOURCE RCI Hospitality Holdings, Inc.

FAQ

What were RICK's total revenues for the third quarter of 2022?

RCI Hospitality Holdings reported total revenues of $70.7 million for the third quarter of 2022.

How much did RICK's EPS increase in Q3 2022?

RICK's EPS increased by 8% to $1.48 in Q3 2022.

What is the free cash flow reported by RICK for Q3 2022?

RCI Hospitality Holdings reported free cash flow of $18 million for Q3 2022.

How did the Nightclubs segment perform in Q3 2022?

The Nightclubs segment generated revenues of $54.7 million, a 33.3% increase year-over-year.

Did RICK repurchase shares during Q3 2022?

Yes, RCI Hospitality purchased 168,069 shares at an average price of $54.81 in Q3 2022.