RCI Reports Record Revenues and Free Cash Flow for 3Q21

Rhea-AI Summary

RCI Hospitality Holdings, Inc. (Nasdaq: RICK) reported record third-quarter results for fiscal 2021, ending June 30. Total revenues reached $57.9 million, a significant increase from $14.7 million in the previous year. Nightclubs segment revenues surged 582.4% to $41.0 million, while Bombshells revenues rose 88.5% to $16.1 million. Net income stood at $12.3 million with an EPS of $1.37. The company announced plans to acquire 11 clubs for $88.0 million, furthering its growth strategy.

Positive

• Record total revenues of $57.9 million, up from $14.7 million year-over-year.
• Record Nightclubs segment revenues of $41.0 million with a 44.7% operating margin.
• Record Bombshells segment revenues of $16.1 million with a 27.4% operating margin.
• Net income of $12.3 million, reflecting strong recovery post-pandemic.
• Strong EPS of $1.37 compared to a net loss per share of $0.60 in Q3 2020.
• Plans to acquire 11 clubs and related real estate for $88.0 million to boost growth.

Negative

• Dependence on continued consumer recovery post-COVID-19 impacts.
• Potential financial risks associated with ongoing pandemic restrictions.

HOUSTON, Aug. 5, 2021 /PRNewswire/ -- RCI Hospitality Holdings, Inc. (Nasdaq: RICK) today reported results for the fiscal 2021 third quarter ended June 30, 2021, and filed its Form 10-Q.

Highlights 3Q21 vs 3Q20

• Record total revenues of $57.9 million compared to $14.7 million
• Record net cash from operating activities of $15.0 million and record free cash flow* of $13.0 million
• Record Nightclubs segment revenues of $41.0 million with 44.7% operating margin
• Record Bombshells segment revenues of $16.1 million with 27.4% operating margin
• Consolidated operating margins of 32.0%
• Strong EPS of $1.37 compared to net loss per share of $0.60
• Net income of $12.3 million and adjusted EBITDA* of $20.4 million
• $29.1 million cash and cash equivalents at the end of the period

Eric Langan, President and CEO, said: "Both our Nightclubs and Bombshells segments had their best overall performance in company history. Special thanks to our team members for managing the influx of customers at our locations and helping to shatter our sales records while keeping our costs in line. We continue to press ahead with our growth initiatives. Recently we announced an agreement to acquire 11 clubs in six states and related real estate for $88.0 million in stock, cash and debt. In addition, we are seeking out more nightclub acquisitions, developing more Bombshells, and expanding our list of potential Bombshells franchisee locations."

Conference Call Today at 5:00 PM ET

• Live Participant Phone: Toll Free 877-545-0320, International 973-528-0016, Passcode: 417610
• Live webcast, slides or replay link: https://www.webcaster4.com/Webcast/Page/2209/42364
• Phone replay: Toll Free 877-481-4010, International 919-882-2331, Passcode: 42364

Meet Management Tonight at 7:00 PM ET

Investors are invited to meet management at one of RCI's top revenue generating clubs.

• Thursday, August 5, 2021, 7:00 PM to 9:00 PM ET
• 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

Nightclubs Segment

• 3Q21 vs 3Q20: Revenues of $41.0 million compared to $6.0 million, an increase of 582.4%. Thirty-six clubs were open all of 3Q21 compared to the year ago quarter, when all clubs were closed the month of April 2020, in line with local and state pandemic regulations, and then in May-June 2020 a limited number began to reopen, but with restrictive curfews and occupancies. 3Q21 operating margin expanded to 44.7% from (50.5%) in 3Q20 due to higher sales and a more favorable sales mix. As a result, segment operating income increased to $18.4 million from a loss of $3.0 million.
• 3Q21 vs 2Q21: Revenues of $41.0 million compared to $30.8 million, an increase of 33.3%, reflecting more clubs open on a more consistent basis, the elimination of restrictions on our northern clubs by the beginning of June, and the ongoing return of our loyal customer base, benefitting from increased vaccinations. Operating margin expanded to 44.7% from 34.0% due to higher sales, in particular, a 46.5% increase in service revenues, primarily from northern clubs. As a result, segment operating income increased by 75.3% to $18.4 million from $10.5 million.

Bombshells Segment

• 3Q21 vs 3Q20: Revenues of $16.1 million compared to $8.5 million, an increase of 88.5%. All 10 Bombshells were open during all of 3Q21 compared to the year-ago quarter, when all units were closed the month of April 2020 in line with local and state pandemic regulations and then in May 2020 began to reopen, but with restrictive curfews and limited occupancies. Operating margin expanded to 27.4% from 21.7% due to higher sales. As a result, segment operating income increased by 138.1% to $4.4 million from $1.9 million.
• 3Q21 vs 2Q21: Revenues of $16.1 million compared to $13.1 million, an increase of 22.4%, reflecting greater brand recognition, more sports events, and increased consumer confidence. Operating margin expanded to 27.4% from 23.9% due to higher sales. As a result, segment operating income increased by 40.2% to $4.4 million from $3.1 million.

Consolidated 3Q21 vs 3Q20

• Cost of goods sold declined to 15.3% of total revenues from 16.2% due to higher sales and the change in sales mix, in particular, an increase in service revenues to 29.2% from 19.7% of total revenues.
• Salaries and wages declined to 24.0% of revenues from 36.8%, SG&A improved to 25.4% from 60.5%, and depreciation and amortization decreased to 3.6% from 15.2%.
• The improvements reflected higher Nightclubs and Bombshells sales and margins, cost-saving initiatives, and lower SG&A expenses relative to sales as compared to the prior year.
• Operating margin was 32.0% compared to (31.6%) in 3Q20 and 22.3% in 2Q21.
• Interest expense decreased 7.2% primarily due to lower debt balances.
• The effective tax rate was an expense of 24.4% compared to a benefit of 20.5%.
• Debt was $127.6 million at 6/30/21 compared to $132.4 million at 3/31/21. This reflected scheduled paydowns and a $2.0 million paydown related to a sold property.

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. Closures and operating restrictions, as caused by local, state and national 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.
• 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) impairment of assets, 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) gains or losses on sale of businesses and assets, (c) gains or losses on insurance, (d) unrealized gains or losses on equity securities, (e) impairment of assets, (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 24.3% and 26.9% effective tax rate of the pre-tax non-GAAP income before taxes for the nine months ended June 30, 2021 and 2020, 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)

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) 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, 2020, 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 June 30,								For the Nine Months Ended June 30,
				2021				2020				2021				2020
				Amount		% of Revenue		Amount		% of Revenue		Amount		% of Revenue		Amount		% of Revenue
Revenues
	Sales of alcoholic beverages			$  25,092		43.4%		$   7,623		51.8%		$  62,725		44.7%		$  45,285		43.7%
	Sales of food and merchandise			12,058		20.8%		3,452		23.4%		30,205		21.5%		17,378		16.8%
	Service revenues			16,880		29.2%		2,907		19.7%		38,442		27.4%		34,448		33.3%
	Other			3,830		6.6%		739		5.0%		8,945		6.4%		6,430		6.2%
		Total revenues		57,860		100.0%		14,721		100.0%		140,317		100.0%		103,541		100.0%
Operating expenses
	Cost of goods sold
		Alcoholic beverages sold		4,621		18.4%		1,245		16.3%		11,613		18.5%		8,826		19.5%
		Food and merchandise sold		4,043		33.5%		1,128		32.7%		9,961		33.0%		5,974		34.4%
		Service and other		208		1.0%		17		0.5%		304		0.6%		148		0.4%
			Total cost of goods sold (exclusive of items shown below)	8,872		15.3%		2,390		16.2%		21,878		15.6%		14,948		14.4%
	Salaries and wages			13,870		24.0%		5,421		36.8%		36,556		26.1%		30,866		29.8%
	Selling, general and administrative			14,697		25.4%		8,908		60.5%		39,467		28.1%		39,889		38.5%
	Depreciation and amortization			2,057		3.6%		2,235		15.2%		6,197		4.4%		6,696		6.5%
	Other charges, net			(143)		-0.2%		424		2.9%		1,288		0.9%		8,588		8.3%
		Total operating expenses		39,353		68.0%		19,378		131.6%		105,386		75.1%		100,987		97.5%
Income (loss) from operations				18,507		32.0%		(4,657)		-31.6%		34,931		24.9%		2,554		2.5%
Other income (expenses)
	Interest expense			(2,281)		-3.9%		(2,459)		-16.7%		(7,079)		-5.0%		(7,403)		-7.1%
	Interest income			72		0.1%		80		0.5%		194		0.1%		263		0.3%
	Non-operating gains (losses), net			9		0.0%		31		0.2%		5,356		3.8%		(103)		-0.1%
Income (loss) before income taxes				16,307		28.2%		(7,005)		-47.6%		33,402		23.8%		(4,689)		-4.5%
Income tax expense (benefit)				3,986		6.9%		(1,437)		-9.8%		5,540		3.9%		(1,262)		-1.2%
Net income (loss)				12,321		21.3%		(5,568)		-37.8%		27,862		19.9%		(3,427)		-3.3%
Net loss attributable to noncontrolling interests				(19)		0.0%		94		0.6%		174		0.1%		135		0.1%
Net income (loss) attributable to RCIHH common shareholders				$  12,302		21.3%		$ (5,474)		-37.2%		$  28,036		20.0%		$  (3,292)		-3.2%
Earnings (loss) per share
	Basic and diluted			$      1.37				$   (0.60)				$      3.11				$    (0.36)
Weighted average shares outstanding
	Basic and diluted			9,000				9,125				9,006				9,224
Dividends per share				$      0.04				$      0.03				$      0.12				$      0.10

 

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,
	2021		2020		2021		2020
Reconciliation of GAAP net income (loss) to Adjusted EBITDA
Net income (loss) attributable to RCIHH common stockholders	$  12,302		$ (5,474)		$  28,036		$  (3,292)
Income tax expense (benefit)	3,986		(1,437)		5,540		(1,262)
Interest expense, net	2,209		2,379		6,885		7,140
Settlement of lawsuits	127		50		280		74
Impairment of assets	271		982		1,672		9,192
Gain on sale of businesses and assets	(541)		(608)		(455)		(645)
Gain on debt extinguishment	-		-		(5,329)		-
Unrealized loss (gain) on equity securities	(9)		(31)		58		103
Gain on insurance	-		-		(209)		(33)
Depreciation and amortization	2,057		2,235		6,197		6,696
Adjusted EBITDA	$  20,402		$ (1,904)		$  42,675		$  17,973
Reconciliation of GAAP net income (loss) to non-GAAP net income
Net income (loss) attributable to RCIHH common stockholders	$  12,302		$ (5,474)		$  28,036		$  (3,292)
Amortization of intangibles	51		149		209		462
Settlement of lawsuits	127		50		280		74
Impairment of assets	271		982		1,672		9,192
Gain on sale of businesses and assets	(541)		(608)		(455)		(645)
Gain on debt extinguishment	-		-		(5,329)		-
Unrealized loss (gain) on equity securities	(9)		(31)		58		103
Gain on insurance	-		-		(209)		(33)
Net income tax effect	39		(1,840)		(1,702)		(2,499)
Non-GAAP net income	$  12,240		$ (6,772)		$  22,560		$    3,362
Reconciliation of GAAP diluted earnings (loss) per share to non-GAAP diluted earnings per share
Diluted shares	9,000		9,125		9,006		9,224
GAAP diluted earnings (loss) per share	$      1.37		$   (0.60)		$      3.11		$    (0.36)
Amortization of intangibles	0.01		0.02		0.02		0.05
Settlement of lawsuits	0.01		0.01		0.03		0.01
Impairment of assets	0.03		0.11		0.19		1.00
Gain on sale of businesses and assets	(0.06)		(0.07)		(0.05)		(0.07)
Gain on debt extinguishment	-		-		(0.59)		-
Unrealized loss (gain) on equity securities	(0.00)		(0.00)		0.01		0.01
Gain on insurance	-		-		(0.02)		(0.00)
Net income tax effect	0.00		(0.20)		(0.19)		(0.27)
Non-GAAP diluted earnings per share	$      1.36		$   (0.74)		$      2.50		$      0.36
Reconciliation of GAAP operating income to non-GAAP operating income
Income (loss) from operations	$  18,507		$ (4,657)		$  34,931		$    2,554
Amortization of intangibles	51		149		209		462
Settlement of lawsuits	127		50		280		74
Impairment of assets	271		982		1,672		9,192
Gain on sale of businesses and assets	(541)		(608)		(455)		(645)
Gain on insurance	-		-		(209)		(33)
Non-GAAP operating income	$  18,415		$ (4,084)		$  36,428		$  11,604
Reconciliation of GAAP operating margin to non-GAAP operating margin
GAAP operating margin	32.0%		-31.6%		24.9%		2.5%
Amortization of intangibles	0.1%		1.0%		0.1%		0.4%
Settlement of lawsuits	0.2%		0.3%		0.2%		0.1%
Impairment of assets	0.5%		6.7%		1.2%		8.9%
Gain on sale of businesses and assets	-0.9%		-4.1%		-0.3%		-0.6%
Gain on insurance	0.0%		0.0%		-0.1%		0.0%
Non-GAAP operating margin	31.8%		-27.7%		26.0%		11.2%
Reconciliation of net cash provided by operating activities to free cash flow
Net cash provided by operating activities	$  14,971		$       166		$  32,217		$  12,147
Less: Maintenance capital expenditures	2,017		-		4,608		2,111
Free cash flow	$  12,954		$       166		$  27,609		$  10,036

 

RCI HOSPITALITY HOLDINGS, INC.
SEGMENT INFORMATION
(in thousands)
		For the Three Months				For the Nine Months
		Ended June 30,				Ended June 30,
		2021		2020		2021		2020
Revenues
	Nightclubs	$  41,031		$    6,013		$    97,015		$    75,239
	Bombshells	16,077		8,531		42,218		27,684
	Other	752		177		1,084		618
		$  57,860		$  14,721		$  140,317		$  103,541
Income (loss) from operations
	Nightclubs	$  18,350		$  (3,038)		$    37,313		$    13,002
	Bombshells	4,404		1,850		10,263		4,109
	Other	321		(92)		107		(423)
	General corporate	(4,568)		(3,377)		(12,752)		(14,134)
		$  18,507		$  (4,657)		$    34,931		$      2,554

 

RCI HOSPITALITY HOLDINGS, INC.
NON-GAAP SEGMENT INFORMATION
($ in thousands)
	For the Three Months Ended June 30, 2021										For the Three Months Ended June 30, 2020
	Nightclubs		Bombshells		Other		Corporate		Total		Nightclubs		Bombshells		Other		Corporate		Total
Income (loss) from operations	$  18,350		$    4,404		$  321		$   (4,568)		$  18,507		$  (3,038)		$    1,850		$   (92)		$   (3,377)		$  (4,657)
Amortization of intangibles	47		4		-		-		51		49		3		96		-		148
Settlement of lawsuits	123		4		-		-		127		50		-		-		-		50
Impairment of assets	271		-		-		-		271		982		-		-		-		982
Loss (gain) on sale of businesses and assets	(512)		9		-		(38)		(541)		(619)		16		-		(4)		(607)
Gain on insurance	-		-		-		-		-		-		-		-		-		-
Non-GAAP operating income (loss)	$  18,279		$    4,421		$  321		$   (4,606)		$  18,415		$  (2,576)		$    1,869		$        4		$   (3,381)		$  (4,084)
GAAP operating margin	44.7%		27.4%		42.7%		-7.9%		32.0%		-50.5%		21.7%		-52.0%		-22.9%		-31.6%
Non-GAAP operating margin	44.5%		27.5%		42.7%		-8.0%		31.8%		-42.8%		21.9%		2.3%		-23.0%		-27.7%
	For the Nine Months Ended June 30, 2021										For the Nine Months Ended June 30, 2020
	Nightclubs		Bombshells		Other		Corporate		Total		Nightclubs		Bombshells		Other		Corporate		Total
Income (loss) from operations	$  37,313		$  10,263		$  107		$ (12,752)		$  34,931		$  13,002		$    4,109		$ (423)		$ (14,134)		$    2,554
Amortization of intangibles	141		11		57		-		209		163		11		287		-		461
Settlement of lawsuits	237		38		5		-		280		74		-		-		-		74
Impairment of assets	1,672		-		-		-		1,672		8,947		245		-		-		9,192
Loss (gain) on sale of businesses and assets	(498)		56		-		(13)		(455)		(619)		16		-		(41)		(644)
Gain on insurance	(165)		-		-		(44)		(209)		(20)		-		-		(13)		(33)
Non-GAAP operating income (loss)	$  38,700		$  10,368		$  169		$ (12,809)		$  36,428		$  21,547		$    4,381		$ (136)		$ (14,188)		$  11,604
GAAP operating margin	38.5%		24.3%		9.9%		-9.1%		24.9%		17.3%		14.8%		-68.4%		-13.7%		2.5%
Non-GAAP operating margin	39.9%		24.6%		15.6%		-9.1%		26.0%		28.6%		15.8%		-22.0%		-13.7%		11.2%

 

RCI HOSPITALITY HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
			For the Three Months Ended				For the Nine Months Ended
			June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)			$     12,321		$     (5,568)		$     27,862		$     (3,427)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
	Depreciation and amortization		2,057		2,235		6,197		6,696
	Deferred income tax benefit		(430)		(362)		(430)		(1,517)
	Gain on sale of businesses and assets		(712)		(713)		(626)		(749)
	Impairment of assets		271		982		1,672		9,192
	Unrealized loss (gain) on equity securities		(9)		(31)		58		103
	Amortization of debt discount and issuance costs		59		65		160		194
	Gain on debt extinguishment		-		-		(5,298)		-
	Noncash lease expense		434		419		1,282		1,244
	Gain on insurance		-		-		(294)		(33)
	Doubtful accounts expense (reversal) on notes receivable		36		495		(22)		495
	Changes in operating assets and liabilities:
		Accounts receivable	1,172		(1,970)		4,309		(53)
		Inventories	(76)		108		(107)		(29)
		Prepaid expenses, other current assets and other assets	852		2,102		2,346		4,942
		Accounts payable, accrued and other liabilities	(1,004)		2,404		(4,892)		(4,911)
	Net cash provided by operating activities		14,971		166		32,217		12,147
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of businesses and assets			3,205		1,936		3,213		2,041
Proceeds from insurance			-		-		294		945
Proceeds from notes receivable			34		1,152		95		1,555
Payments for property and equipment and intangible assets			(4,070)		(242)		(10,788)		(5,565)
	Net cash provided by (used in) investing activities		(831)		2,846		(7,186)		(1,024)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from debt obligations			-		5,623		2,176		6,503
Payments on debt obligations			(4,868)		(3,392)		(10,845)		(7,489)
Purchase of treasury stock			-		-		(1,794)		(8,488)
Payment of dividends			(360)		(273)		(1,080)		(920)
Payment of loan origination costs			-		-		(25)		-
Distribution to noncontrolling interests			-		-		-		(31)
	Net cash provided by (used in) financing activities		(5,228)		1,958		(11,568)		(10,425)
NET INCREASE IN CASH AND CASH EQUIVALENTS			8,912		4,970		13,463		698
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD			20,156		9,825		15,605		14,097
CASH AND CASH EQUIVALENTS AT END OF PERIOD			$     29,068		$     14,795		$     29,068		$     14,795

 

RCI HOSPITALITY HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
				June 30,		September 30,		June 30,
				2021		2020		2020
ASSETS
Current assets
	Cash and cash equivalents			$    29,068		$       15,605		$    14,795
	Accounts receivable, net			2,458		6,767		6,648
	Current portion of notes receivable			217		201		219
	Inventories			2,479		2,372		2,627
	Prepaid expenses and other current assets			4,062		6,488		3,167
	Assets held for sale			4,887		-		2,013
		Total current assets		43,171		31,433		29,469
Property and equipment, net				178,087		181,383		181,960
Operating lease right-of-use assets, net				24,481		25,546		25,962
Notes receivable, net of current portion				2,819		2,908		2,896
Goodwill				45,440		45,686		47,109
Intangibles, net				73,019		73,077		73,224
Other assets				922		900		873
			Total assets	$  367,939		$     360,933		$  361,493
LIABILITIES AND EQUITY
Current liabilities
	Accounts payable			$      4,909		$         4,799		$      3,955
	Accrued liabilities			11,738		14,573		10,286
	Current portion of long-term debt, net			13,695		16,304		17,249
	Current portion of operating lease liabilities			1,720		1,628		1,586
		Total current liabilities		32,062		37,304		33,076
Deferred tax liability, net				19,960		20,390		20,141
Long-term debt, net of current portion and debt discount and issuance costs				113,908		125,131		125,487
Operating lease liabilities, net of current portion				24,360		25,439		25,863
Other long-term liabilities				354		362		372
		Total liabilities		190,644		208,626		204,939
Commitments and contingencies
Equity
	Preferred stock			-		-		-
	Common stock			90		91		91
	Additional paid-in capital			50,040		51,833		52,829
	Retained earnings			127,753		100,797		103,956
		Total RCIHH stockholders' equity		177,883		152,721		156,876
	Noncontrolling interests			(588)		(414)		(322)
		Total equity		177,295		152,307		156,554
			Total liabilities and equity	$  367,939		$     360,933		$  361,493

 

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SOURCE RCI Hospitality Holdings, Inc.

FAQ

What were RICK's third-quarter revenues for fiscal 2021?

RCI Hospitality Holdings reported total revenues of $57.9 million for Q3 2021.

How did RICK's net income for Q3 2021 compare to Q3 2020?

Net income for Q3 2021 was $12.3 million, a turnaround from a net loss of $0.6 million in Q3 2020.

What is the operating margin for RICK's Nightclubs segment in Q3 2021?

The Nightclubs segment achieved an operating margin of 44.7% in Q3 2021.

How much cash does RICK hold as of June 30, 2021?

RCI Hospitality Holdings had $29.1 million in cash and cash equivalents as of June 30, 2021.

What acquisition strategy is RICK pursuing?

RCI Hospitality Holdings plans to acquire 11 clubs across six states for $88.0 million.