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Jun 30, 2024

RCI Hospitality Q3 2024 Earnings Report

RCI Hospitality's Q3 2024 results reflected the initial impact of the Back to Basics approach, with nightclubs achieving record revenues and Bombshells showing revenue growth for the second consecutive quarter.

Key Takeaways

RCI Hospitality reported a decrease in total revenues to $76.2 million compared to $77.1 million in the same quarter last year. The company experienced a net loss attributable to RCIHH common stockholders of $5.2 million, or $(0.56) per share, compared to a net income of $9.1 million, or $0.96 per share, in the prior year quarter. Non-GAAP EPS was $1.35 compared to $1.30 in the prior year quarter. Nightclubs achieved record revenues, increasing year over year, on a same-store basis, and from last quarter. Bombshells revenues are now up two quarters in a row.

Implemented Back to Basics approach focusing on increasing revenues and reducing costs.

Nightclubs achieved record revenues, with same-store sales growth.

Bombshells revenues increased for the second consecutive quarter.

Repurchased 202,630 common shares for $9.2 million in 3Q24.

Total Revenue
$76.2M
Previous year: $77.1M
-1.1%
EPS
$1.35
Previous year: $1.3
+3.8%
Gross Profit
$44.7M
Previous year: $45.9M
-2.8%
Cash and Equivalents
$34.9M
Previous year: $23.6M
+48.2%
Free Cash Flow
$13.8M
Previous year: $14.3M
-3.4%
Total Assets
$601M
Previous year: $620M
-3.1%

RCI Hospitality

RCI Hospitality

Forward Guidance

Looking ahead, the company is focused on opening reformatted and new clubs and Bombshells, rebuilding Baby Dolls Fort Worth, reviewing operating units, selling non-income producing real estate, and using cash flow for share buybacks and club acquisitions.

Positive Outlook

  • Opening reformatted and new clubs and Bombshells currently under development.
  • Rebuilding Baby Dolls Fort Worth.
  • Reviewing all operating units to ensure they meet financial objectives.
  • Selling non-income producing real estate to free up more cash and/or reduce debt.
  • Using cash flow to facilitate the buyback of more shares and acquisition of clubs.