RCI Reports Record Fourth Quarter Revenues, Annual Revenues, and Cash Generation

Rhea-AI Summary

RCI Hospitality Holdings reported strong fiscal 2021 results, with total revenues of $195.3 million compared to $132.3 million in FY20. The fourth quarter saw revenues of $54.9 million, up from $28.8 million in 4Q20, and a net income of $2.3 million. The company's non-GAAP EPS was $4.08 versus $0.51 in the previous fiscal year. Operating margins improved significantly, reflecting recovery from COVID-19 impacts, despite facing challenges like inflation and labor issues. RCI plans to expand its club acquisitions and improve customer experience in FY22.

Positive

• Total revenues increased 48% to $195.3 million.
• Fourth quarter revenues reached $54.9 million, a significant increase from $28.8 million in 4Q20.
• Fourth quarter net income of $2.3 million compared to a net loss of $2.9 million in 4Q20.
• Non-GAAP EPS rose to $4.08 from $0.51 in FY20.
• Adjusted EBITDA for FY21 was $60.2 million, up from $22.4 million in FY20.

Negative

• The company incurred non-cash impairments of $13.6 million for FY21.
• Some clubs did not recover as quickly due to stringent COVID-19 restrictions.

HOUSTON, Dec. 14, 2021 /PRNewswire/ -- RCI Hospitality Holdings, Inc. (Nasdaq: RICK) today reported results for the fiscal 2021 fourth quarter and year ended September 30, 2021, and filed its Form 10-K.

	4Q21 Highlights	FY21 Highlights
	Total revenues of $54.9 million vs. $28.8 million in 4Q20 EPS of $0.26 vs. loss per share of $0.31 in 4Q20 Non-GAAP EPS* of $1.58 vs. $0.15 in 4Q20 Net cash from operating activities of $9.8 million and free cash flow* of $8.5 million Net income of $2.3 million vs. net loss of $2.9 million in 4Q20 Adjusted EBITDA* of $17.6 million vs. $4.4 million in 4Q20 $35.7 million cash and equivalents at 9/30/21	Total revenues of $195.3 million vs. $132.3 million in FY20 EPS of $3.37 vs. loss per share of $0.66 in FY20 Non-GAAP EPS* of $4.08 vs. $0.51 in FY20 Net cash from operating activities of $42.0 million and free cash flow* of $36.1 million Net income of $30.2 million vs. net loss of $6.3 million in FY20 Adjusted EBITDA* of $60.2 million vs. $22.4 million in FY20

4Q21 and FY21 included non-cash impairments of $11.9 million and $13.6 million, respectively. While most clubs rebounded significantly throughout the year, the full year contribution from clubs in certain locations with more stringent COVID-19 restrictions did not recover as fast as previously projected.

Eric Langan, President and CEO of RCI Hospitality Holdings, Inc., stated: "We ended FY21 with record fourth quarter revenues, annual revenues, and cash generation. A special thanks to our teams for their outstanding performance managing COVID-19 restrictions, reopening challenges earlier in the year, the Delta variant, inflation, and labor issues in the fourth quarter. We're working full steam ahead on executing our plan for FY22. This includes improving the customer experience at our new club acquisitions, scouting for new clubs to buy, the recent opening of our new company-owned Bombshells Arlington, the upcoming opening of our franchisee-owned Bombshells San Antonio, developing new company-owned and franchised Bombshells locations, and launching our AdmireMe mobile friendly site."

Conference Call Today at 4:30 PM ET

• Live Participant Phone: Toll Free 888-506-0062, International 973-528-0011, Passcode: 484746
• Live webcast, slides or replay link: https://www.webcaster4.com/Webcast/Page/2209/43856
• Phone replay: Toll Free 877-481-4010, International 919-882-2331, Passcode: 43856

Meet Management Tonight at 6:00 PM ET

• Investors are invited to meet management at one of RCI's top revenue generating clubs
• Rick's Cabaret New York, 50 W. 33rd Street, New York, NY, between Fifth Avenue and Broadway
• RSVP your contact information to gary.fishman@anreder.com by 5:00 PM ET today

4Q21 Segments

• Nightclubs: 4Q21 revenues of $40.3 million, operating margin of 16.1% (43.2% non-GAAP), and income from operations of $6.5 million ($17.4 million non-GAAP), with 36 clubs open the full quarter. Florida clubs did particularly well. Higher-margin service revenues continued to grow. GAAP results included the previously mentioned $11.9 million impairment and a $1.0 million gain on insurance. 4Q21 improved significantly compared to 4Q20 when 16 clubs were open the full quarter and 34 by quarter end, reflecting COVID restrictions. Compared to pre-COVID 4Q19, 4Q21 revenues increased 12% and income from operations increased 4% (58% non-GAAP).
• Bombshells: 4Q21 revenues of $14.4 million, operating margin of 20.8%, and income from operations of $3.0 million. All 10 locations were open the full quarter. This compares to 4Q20 revenues of $15.5 million, operating margin of 33.0%, and income from operations of $5.1 million, when sales benefitted from an unusually strong sports schedule and Bombshells being one of the few venues open in its markets. Compared to pre-COVID 4Q19, revenues increased 69% on 25% more units and operating margin expanded 11.9 percentage points.

4Q21 Consolidated (comparisons to 4Q20 and % are of total revenues unless indicated otherwise)

• Margin improvements in cost of goods sold (14.9% vs. 15.6%), salaries and wages (25.6% vs. 28.5%), and SG&A (27.6% vs. 41.0%) primarily reflected higher Nightclubs sales and cost-saving initiatives.
• Other charges of $11.9 million included the previously mentioned impairment and $1.0 million from settlement of lawsuits, partially offset by other gains of $1.0 million from insurance.
• Operating margin was 6.6% vs. 0.7%. Non-GAAP operating margin was 28.4% vs. 8.0%.
• Interest expense increased $0.5 million due to costs and charges related to the previously announced debt refinancing, but declined as a percentage of revenues, to 5.3% from 8.4%.
• Income taxes were a benefit of $1.6 million compared to an expense of $0.8 million. Both periods adjusted for the full year tax rate. 4Q21 also included $0.6 million benefit from a change in deferred tax asset valuation allowance.
• Debt was $125.2 million at 9/30/21 compared to $127.6 million at 6/30/21. This reflected scheduled paydowns and a $1.2 million paydown related to a sold property.

FY21 vs. FY20

• Total revenues increased 48% to $195.3 million, primarily due to a 55% increase in Nightclubs to $137.3 million and a 31% increase in Bombshells to a record $56.6 million.
• Compared to FY20, which was more severely affected by COVID-19 restrictions, most clubs opened to their full capacity and operating hours over the course of FY21, while Bombshells restaurants opened to their full capacity and operating hours as of the first half of March 2021.
• As a result, operating margin expanded to 19.7% from 2.1% of revenues. On a non-GAAP basis, which excludes the previously-mentioned $13.6 million impairment and other charges (gains), operating margin expanded to 26.7% from 10.5% of revenues.

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) impairment of assets, (c) gains or losses on sale of businesses and assets, (d) gains or losses on insurance, and (e) 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) costs and charges related to debt refinancing, (d) gains or losses on sale of businesses and assets, (e) gains or losses on insurance, (f) unrealized loss on equity securities, (g) settlement of lawsuits, (h) gain on debt extinguishment, (i) the income tax effect of the above-described adjustments, and (j) change in deferred tax asset valuation allowance. Included in the income tax effect of the above adjustments is the net effect of the non-GAAP provision for income taxes, calculated at 13.5%, 26.0%, and 15.5% effective tax rate of the pre-tax non-GAAP income before taxes for the 2021, 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) 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 the unleveraged performance return on our investments. Adjusted EBITDA multiple is also used as a 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 gentlemen's clubs 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 OPERATIONS
(in thousands, except per share and percentage data)
					For the Three Months Ended September 30,								For the Twelve Months Ended September 30,
					2021				2020				2021				2020
					Amount		% of Revenue		Amount		% of Revenue		Amount		% of Revenue		Amount		% of Revenue
Revenues
	Sales of alcoholic beverages				$        23,960		43.6%		$        13,795		47.9%		$        86,685		44.4%		$        59,080		44.6%
	Sales of food and merchandise				10,906		19.9%		7,082		24.6%		41,111		21.1%		24,460		18.5%
	Service revenues				17,019		31.0%		6,714		23.3%		55,461		28.4%		41,162		31.1%
	Other				3,056		5.6%		1,195		4.2%		12,001		6.1%		7,625		5.8%
		Total revenues			54,941		100.0%		28,786		100.0%		195,258		100.0%		132,327		100.0%
Operating expenses
	Cost of goods sold
		Alcoholic beverages sold			4,270		17.8%		2,271		16.5%		15,883		18.3%		11,097		18.8%
		Food and merchandise sold			3,833		35.1%		2,167		30.6%		13,794		33.6%		8,141		33.3%
		Service and other			70		0.3%		49		0.6%		374		0.6%		197		0.4%
			Total cost of goods sold (exclusive of items shown below)		8,173		14.9%		4,487		15.6%		30,051		15.4%		19,435		14.7%
	Salaries and wages				14,071		25.6%		8,204		28.5%		50,627		25.9%		39,070		29.5%
	Selling, general and administrative				15,141		27.6%		11,803		41.0%		54,608		28.0%		51,692		39.1%
	Depreciation and amortization				2,041		3.7%		2,140		7.4%		8,238		4.2%		8,836		6.7%
	Other charges (gains), net				11,898		21.7%		1,960		6.8%		13,186		6.8%		10,548		8.0%
		Total operating expenses			51,324		93.4%		28,594		99.3%		156,710		80.3%		129,581		97.9%
Income from operations					3,617		6.6%		192		0.7%		38,548		19.7%		2,746		2.1%
Other income (expenses)
	Interest expense				(2,913)		-5.3%		(2,408)		-8.4%		(9,992)		-5.1%		(9,811)		-7.4%
	Interest income				59		0.1%		61		0.2%		253		0.1%		324		0.2%
	Non-operating gains (losses), net				(26)		0.0%		39		0.1%		5,330		2.7%		(64)		0.0%
Income (loss) before income taxes					737		1.3%		(2,116)		-7.4%		34,139		17.5%		(6,805)		-5.1%
Income tax expense (benefit)					(1,551)		-2.8%		769		2.7%		3,989		2.0%		(493)		-0.4%
Net income (loss)					2,288		4.2%		(2,885)		-10.0%		30,150		15.4%		(6,312)		-4.8%
Net loss attributable to noncontrolling interests					12		0.0%		92		0.3%		186		0.1%		227		0.2%
Net income (loss) attributable to RCIHH common shareholders					$          2,300		4.2%		$        (2,793)		-9.7%		$        30,336		15.5%		$        (6,085)		-4.6%
Earnings (loss) per share
	Basic and diluted				$             0.26				$          (0.31)				$             3.37				$          (0.66)
Weighted average shares outstanding
	Basic and diluted				9,000				9,124				9,005				9,199
Dividends per share					$             0.04				$             0.03				$             0.16				$             0.14

 

RCI HOSPITALITY HOLDINGS, INC.
NON-GAAP FINANCIAL MEASURES
(in thousands, except per share and percentage data)
		For the Three Months				For the Twelve Months
		Ended September 30,				Ended September 30,
		2021		2020		2021		2020
Reconciliation of GAAP net income (loss) to Adjusted EBITDA
Net income (loss) attributable to RCIHH common stockholders		$        2,300		$      (2,793)		$      30,336		$      (6,085)
Income tax expense (benefit)		(1,551)		769		3,989		(493)
Interest expense, net		2,854		2,347		9,739		9,487
Settlement of lawsuits		1,069		100		1,349		174
Impairment of assets		11,940		1,423		13,612		10,615
Gain on sale of businesses and assets		(67)		(16)		(522)		(661)
Gain on debt extinguishment		-		-		(5,329)		-
Unrealized loss (gain) on equity securities		26		(39)		84		64
Loss (gain) on insurance		(1,044)		453		(1,253)		420
Depreciation and amortization		2,041		2,140		8,238		8,836
Adjusted EBITDA		$      17,568		$        4,384		$      60,243		$      22,357
Reconciliation of GAAP net income (loss) to non-GAAP net income
Net income (loss) attributable to RCIHH common stockholders		$        2,300		$      (2,793)		$      30,336		$      (6,085)
Amortization of intangibles		49		147		258		609
Settlement of lawsuits		1,069		100		1,349		174
Impairment of assets		11,940		1,423		13,612		10,615
Gain on sale of businesses and assets		(67)		(16)		(522)		(661)
Gain on debt extinguishment		-		-		(5,329)		-
Unrealized loss (gain) on equity securities		26		(39)		84		64
Loss (gain) on insurance		(1,044)		453		(1,253)		420
Costs and charges related to debt refinancing		694		-		694		-
Change in deferred tax asset valuation allowance		(632)		1,273		(632)		1,273
Net income tax effect		(143)		799		(1,845)		(1,700)
Non-GAAP net income		$      14,192		$        1,347		$      36,752		$        4,709
Reconciliation of GAAP diluted earnings (loss) per share to non-GAAP diluted earnings per share
Diluted shares		9,000		9,124		9,005		9,199
GAAP diluted earnings (loss) per share		$          0.26		$        (0.31)		$          3.37		$        (0.66)
Amortization of intangibles		0.01		0.02		0.03		0.07
Settlement of lawsuits		0.12		0.01		0.15		0.02
Impairment of assets		1.33		0.16		1.51		1.15
Gain on sale of businesses and assets		(0.01)		(0.00)		(0.06)		(0.07)
Gain on debt extinguishment		-		-		(0.59)		-
Unrealized loss (gain) on equity securities		0.00		(0.00)		0.01		0.01
Loss (gain) on insurance		(0.12)		0.05		(0.14)		0.05
Costs and charges related to debt refinancing		0.08		-		0.08		-
Change in deferred tax asset valuation allowance		(0.07)		0.14		(0.07)		0.14
Net income tax effect		(0.02)		0.09		(0.20)		(0.18)
Non-GAAP diluted earnings per share		$          1.58		$          0.15		$          4.08		$          0.51
Reconciliation of GAAP operating income to non-GAAP operating income
Income (loss) from operations		$        3,617		$            192		$      38,548		$        2,746
Amortization of intangibles		49		147		258		609
Settlement of lawsuits		1,069		100		1,349		174
Impairment of assets		11,940		1,423		13,612		10,615
Gain on sale of businesses and assets		(67)		(16)		(522)		(661)
Costs and charges related to debt refinancing		57		-		57		-
Loss (gain) on insurance		(1,044)		453		(1,253)		420
Non-GAAP operating income		$      15,621		$        2,299		$      52,049		$      13,903
Reconciliation of GAAP operating margin to non-GAAP operating margin
GAAP operating margin		6.6%		0.7%		19.7%		2.1%
Amortization of intangibles		0.1%		0.5%		0.1%		0.5%
Settlement of lawsuits		1.9%		0.3%		0.7%		0.1%
Impairment of assets		21.7%		4.9%		7.0%		8.0%
Gain on sale of businesses and assets		-0.1%		-0.1%		-0.3%		-0.5%
Costs and charges related to debt refinancing		0.1%		0.0%		0.0%		0.0%
Loss (gain) on insurance		-1.9%		1.6%		-0.6%		0.3%
Non-GAAP operating margin		28.4%		8.0%		26.7%		10.5%
Reconciliation of net cash provided by operating activities to free cash flow
Net cash provided by operating activities		$        9,774		$        3,485		$      41,991		$      15,632
Less: Maintenance capital expenditures		1,299		40		5,907		2,151
Free cash flow		$        8,475		$        3,445		$      36,084		$      13,481

 

RCI HOSPITALITY HOLDINGS, INC.
SEGMENT INFORMATION
(in thousands)
			For the Three Months				For the Twelve Months
			Ended September 30,				Ended September 30,
			2021		2020		2021		2020
Revenues
	Nightclubs		$        40,333		$        13,134		$      137,348		$        88,373
	Bombshells		14,403		15,531		56,621		43,215
	Other		205		121		1,289		739
			$        54,941		$        28,786		$      195,258		$      132,327
Income (loss) from operations
	Nightclubs		$          6,502		$                54		$        43,815		$        13,056
	Bombshells		3,001		5,128		13,264		9,237
	Other		(72)		(191)		35		(614)
	General corporate		(5,814)		(4,799)		(18,566)		(18,933)
			$          3,617		$              192		$        38,548		$          2,746

 

RCI HOSPITALITY HOLDINGS, INC.
NON-GAAP SEGMENT INFORMATION
($ in thousands)
		For the Three Months Ended September 30, 2021										For the Three Months Ended September 30, 2020
		Nightclubs		Bombshells		Other		Corporate		Total		Nightclubs		Bombshells		Other		Corporate		Total
Income (loss) from operations		$       6,502		$       3,001		$           (72)		$     (5,814)		$       3,617		$             54		$       5,128		$        (191)		$     (4,799)		$           192
Amortization of intangibles		46		3		-		-		49		48		4		96		-		148
Settlement of lawsuits		38		21		-		1,010		1,069		100		-		-		-		100
Impairment of assets		11,940		-		-		-		11,940		1,423		-		-		-		1,423
Costs and charges related to debt refinancing		17		-		-		40		57		-		-		-		-		-
Loss (gain) on sale of businesses and assets		(82)		16		-		(1)		(67)		(20)		-		-		3		(17)
Loss (gain) on insurance		(1,044)		-		-		-		(1,044)		453		-		-		-		453
Non-GAAP operating income (loss)		$     17,417		$       3,041		$           (72)		$     (4,765)		$     15,621		$       2,058		$       5,132		$           (95)		$     (4,796)		$       2,299
GAAP operating margin		16.1%		20.8%		-35.1%		-10.6%		6.6%		0.4%		33.0%		-157.9%		-16.7%		0.7%
Non-GAAP operating margin		43.2%		21.1%		-35.1%		-8.7%		28.4%		15.7%		33.0%		-78.5%		-16.7%		8.0%
		For the Twelve Months Ended September 30, 2021										For the Twelve Months Ended September 30, 2020
		Nightclubs		Bombshells		Other		Corporate		Total		Nightclubs		Bombshells		Other		Corporate		Total
Income (loss) from operations		$     43,815		$     13,264		$             35		$  (18,566)		$     38,548		$     13,056		$       9,237		$        (614)		$  (18,933)		$       2,746
Amortization of intangibles		187		14		57		-		258		211		15		383		-		609
Settlement of lawsuits		275		59		5		1,010		1,349		174		-		-		-		174
Impairment of assets		13,612		-		-		-		13,612		10,370		245		-		-		10,615
Costs and charges related to debt refinancing		17		-		-		40		57		-		-		-		-		-
Loss (gain) on sale of businesses and assets		(580)		72		-		(14)		(522)		(639)		16		-		(38)		(661)
Loss (gain) on insurance		(1,209)		-		-		(44)		(1,253)		433		-		-		(13)		420
Non-GAAP operating income (loss)		$     56,117		$     13,409		$             97		$  (17,574)		$     52,049		$     23,605		$       9,513		$        (231)		$  (18,984)		$     13,903
GAAP operating margin		31.9%		23.4%		2.7%		-9.5%		19.7%		14.8%		21.4%		-83.1%		-14.3%		2.1%
Non-GAAP operating margin		40.9%		23.7%		7.5%		-9.0%		26.7%		26.7%		22.0%		-31.3%		-14.3%		10.5%

 

RCI HOSPITALITY HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
				For the Three Months Ended				For the Twelve Months Ended
				September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)				$                   2,288		$                 (2,885)		$                 30,150		$                 (6,312)
Adjustments to reconcile net income (loss) to net cash
provided by operating activities:
	Depreciation and amortization			2,041		2,140		8,238		8,836
	Deferred income tax expense (benefit)			(823)		249		(1,253)		(1,268)
	Gain on sale of businesses and assets			(88)		(28)		(714)		(777)
	Impairment of assets			11,940		1,423		13,612		10,615
	Unrealized loss (gain) on equity securities			26		(39)		84		64
	Amortization and write-off of debt discount and issuance costs			151		42		311		236
	Gain on debt extinguishment			-		-		(5,298)		-
	Noncash lease expense			447		416		1,729		1,660
	Loss (gain) on insurance			(1,043)		629		(1,337)		596
	Doubtful accounts expense (reversal) on notes receivable			(58)		107		(80)		602
	Changes in operating assets and liabilities:
		Accounts receivable		(5,078)		(241)		(769)		(294)
		Inventories		(180)		255		(287)		226
		Prepaid expenses, other current assets, and other assets		1,774		(3,309)		4,120		1,633
		Accounts payable, accrued, and other liabilities		(1,623)		4,726		(6,515)		(185)
	Net cash provided by operating activities			9,774		3,485		41,991		15,632
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of businesses and assets				2,202		180		5,415		2,221
Proceeds from insurance				858		-		1,152		945
Proceeds from notes receivable				35		21		130		1,576
Payments for property and equipment and intangible assets				(2,723)		(171)		(13,511)		(5,736)
	Net cash provided by (used in) investing activities			372		30		(6,814)		(994)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from debt obligations				36,314		-		38,490		6,503
Payments on debt obligations				(38,333)		(1,343)		(49,178)		(8,832)
Purchase of treasury stock				-		(996)		(1,794)		(9,484)
Payment of dividends				(360)		(366)		(1,440)		(1,286)
Payment of loan origination costs				(1,174)		-		(1,174)		-
Distribution to noncontrolling interests				-		-		-		(31)
	Net cash used in financing activities			(3,553)		(2,705)		(15,096)		(13,130)
NET INCREASE IN CASH AND CASH EQUIVALENTS				6,593		810		20,081		1,508
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD				29,093		14,795		15,605		14,097
CASH AND CASH EQUIVALENTS AT END OF PERIOD				$                 35,686		$                 15,605		$                 35,686		$                 15,605

 

RCI HOSPITALITY HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
				September 30,		September 30,
				2021		2020
ASSETS
Current assets
	Cash and cash equivalents			$             35,686		$             15,605
	Accounts receivable, net			7,570		6,767
	Current portion of notes receivable			220		201
	Inventories			2,659		2,372
	Prepaid expenses and other current assets			1,928		6,488
	Assets held for sale			4,887		-
		Total current assets		52,950		31,433
Property and equipment, net				175,952		181,383
Operating lease right-of-use assets, net				24,308		25,546
Notes receivable, net of current portion				2,839		2,908
Goodwill				39,379		45,686
Intangibles, net				67,824		73,077
Other assets				1,367		900
			Total assets	$          364,619		$          360,933
LIABILITIES AND EQUITY
Current liabilities
	Accounts payable			$               4,408		$               4,799
	Accrued liabilities			10,403		14,573
	Current portion of long-term debt, net			6,434		16,304
	Current portion of operating lease liabilities			1,780		1,628
		Total current liabilities		23,025		37,304
Deferred tax liability, net				19,137		20,390
Long-term debt, net of current portion and debt discount and issuance costs				118,734		125,131
Operating lease liabilities, net of current portion				24,150		25,439
Other long-term liabilities				350		362
		Total liabilities		185,396		208,626
Commitments and contingencies
Equity
	Preferred stock			-		-
	Common stock			90		91
	Additional paid-in capital			50,040		51,833
	Retained earnings			129,693		100,797
		Total RCIHH stockholders' equity		179,823		152,721
	Noncontrolling interests			(600)		(414)
		Total equity		179,223		152,307
			Total liabilities and equity	$          364,619		$          360,933

 

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SOURCE RCI Hospitality Holdings, Inc.

FAQ

What were RCI Hospitality Holdings' total revenues for fiscal 2021?

RCI Hospitality Holdings reported total revenues of $195.3 million for fiscal 2021.

What was RCI's non-GAAP EPS for the fourth quarter of fiscal 2021?

The non-GAAP EPS for the fourth quarter of fiscal 2021 was $1.58.

How did RCI Hospitality's net income for Q4 2021 compare to Q4 2020?

In Q4 2021, RCI Hospitality reported net income of $2.3 million, compared to a net loss of $2.9 million in Q4 2020.

What challenges did RCI face during fiscal 2021?

RCI faced challenges such as inflation, labor issues, and varying recovery rates from COVID-19 restrictions.

What is RICK's operating margin for fiscal 2021?

RCI Hospitality Holdings achieved an operating margin of 19.7% for fiscal 2021.