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Dec 31, 2024
RCI Hospitality Q1 2025 Earnings Report
RCI Hospitality Holdings, Inc. reported a decrease in total revenues but an increase in net income and operating income for the first quarter of fiscal year 2025.
Key Takeaways
RCI Hospitality Holdings, Inc. experienced a slight decrease in total revenues by 3.3% to $71.483 million compared to the prior year, primarily due to closed locations. However, the company saw a significant increase in net income by 24.9% to $9.024 million and operating income by 5.6% to $13.906 million. Diluted EPS also rose to $1.01 from $0.77 in the comparable prior-year quarter.
Total revenues decreased by 3.3% to $71.483 million, primarily due to the impact of closed locations, partially offset by new locations and same-store sales growth.
Net income attributable to RCIHH common stockholders increased by 24.9% to $9.024 million.
Operating income increased by 5.6% to $13.906 million, with the consolidated operating margin improving to 19.5%.
Diluted earnings per share increased to $1.01 from $0.77 in the comparable prior-year quarter.
RCI Hospitality
RCI Hospitality
RCI Hospitality Revenue by Segment
RCI Hospitality Revenue by Geographic Location
Revenue by Segment
Nightclubs Revenue
CapyFin.comBombshells Revenue
CapyFin.comOther Revenue
CapyFin.comRevenue by Geographic Location
United States Revenue
CapyFin.com Forward Guidance
RCI Hospitality Holdings, Inc. expects to generate adequate cash flows from operations for the next 12 months and continues to pursue growth organically and through acquisitions, with a focus on diversifying operations.
Positive Outlook
- Expects to generate adequate cash flows from operations for the next 12 months.
- Continues to grow organically and through careful entry into markets with high growth potential.
- Growth strategy includes acquiring existing units and opening new units after market analysis.
- Developing new club concepts consistent with management and marketing skills.
- Diversifying operations with Bombshells units that do not require SOB licenses.
Challenges Ahead
- No assurance of obtaining additional financing on reasonable terms in the future.
- Inability to obtain additional financing could have an adverse effect on growth strategy.
- Payments for expected losses from self-insurance programs are expected to be volatile until a trust is fully established.
- Uncertainties caused by near-term macro environment, including commodity and labor inflation, and contractual debt and lease obligations.
- No unused credit facilities, so no guarantee that additional liquidity will be readily available or on favorable terms.
Revenue & Expenses
Visualization of income flow from segment revenue to net income