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Dec 31, 2023
RCI Hospitality Q1 2024 Earnings Report
RCI Hospitality's Q1 2024 results reflected a mix of nightclub performance aligned with expectations and Bombshells underperformance, with strategic actions underway to enhance growth and shareholder value.
Key Takeaways
RCI Hospitality Holdings reported Q1 2024 revenues of $73.9 million, up from $70.0 million in Q1 2023. EPS was $0.77 compared to $1.11, and Non-GAAP EPS was $0.87 compared to $1.19. The company is focusing on growth plans, including new casinos, clubs, and restaurants, along with strategic share repurchases.
Total revenues increased to $73.9 million from $70.0 million year-over-year.
Nightclubs segment revenues rose to $61.0 million, driven by new acquisitions and remodels, offsetting same-store sales decline.
Bombshells segment revenues decreased to $12.7 million, impacted by lower same-store sales.
Share repurchases totaled 37,954 shares for $2.1 million, with $14.6 million remaining in stock repurchase authorization.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
RCI Hospitality is focused on growth through new ventures and strategic capital allocation, but faces potential challenges in Bombshells performance and general business risks.
Positive Outlook
- Progress with growth plans based on opening new casinos, clubs and restaurants.
- Acquiring more clubs to expand the company's footprint.
- Buying back shares when appropriate to enhance shareholder value.
- Completing an approximately $20 million cash-out bank loan.
- Utilizing an estimated $30 million of unencumbered real estate.
Challenges Ahead
- Macro uncertainty negatively affecting same-store sales.
- Bombshells segment not performing as well as expected.
- Considering options to improve Bombshells performance, including potentially seeking an operational partner or selling the business.
- Risks and uncertainties associated with operating and managing adult entertainment or restaurant business.
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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