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Dec 31, 2019
RCI Hospitality Q1 2020 Earnings Report
Reported first quarter of fiscal year 2020 results, showing growth in Bombshells revenue and strong contribution from nightclubs.
Key Takeaways
RCI Hospitality Holdings reported its first quarter 2020 results, with Bombshells showing noticeable revenue, margin, and profit growth. Nightclubs maintained a strong contribution, offsetting temporary closures and a shorter selling week. The company continued its capital allocation strategy, reducing shares outstanding by 4% year over year.
Bombshells revenue, margin, and profit continued to grow from new and older locations.
Nightclubs maintained their strong contribution, with new locations offsetting temporary closures.
The company reduced shares outstanding by 4% year over year, buying back 332,671 shares for $6.4 million.
Refinanced $12.2 million of debt, eliminating $10.8 million of near-term non-realty balloon payments.
Revenue by Segment
Forward Guidance
Company expects performance to continue to expand with new Bombshells locations and the reopening of clubs. Anticipates salaries and wages and SG&A costs to subside in the second half, increasing operating leverage. Aims to increase financial flexibility through debt refinancing and selling excess properties.
Positive Outlook
- Performance should continue to expand with Bombshells Katy, which opened mid-1Q20.
- Bombshells 59 in southwest Houston, which opened mid-2Q20.
- Remodeling and expansion of the first Bombshells in Dallas.
- Scarlett’s Cabaret St. Louis and Rick’s Cabaret Odessa have reopened.
- Closing on our Northeast Corridor acquisition.
Challenges Ahead
- Salaries and wages and SG&A were higher than what we’d like due to accounting, legal and overtime costs related to our recently filed 10-K.
- These costs will continue to be somewhat high in 2Q20.
- One less selling week during the high-volume Thanksgiving and Christmas period.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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