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Sep 30, 2024

RCI Hospitality Q4 2024 Earnings Report

RCI Hospitality reported mixed Q4 2024 results with increased non-GAAP EPS and free cash flow, but a decline in total company sales due to a hurricane and fire.

Key Takeaways

RCI Hospitality Holdings reported a decrease in total revenues for Q4 2024, from $75.3 million to $73.2 million, and a decrease in EPS from $0.23 to $0.03. However, the company saw an increase in non-GAAP EPS from $1.11 to $1.63, and improvements in net cash provided by operating activities and free cash flow. Nightclubs same-store sales increased for the second consecutive quarter, but Bombshells segment revenue declined by 12.1%.

Nightclubs same-store sales increased for the second consecutive quarter.

Total company sales declined due to a hurricane and fire.

Non-GAAP EPS, net cash provided by operating activities, and free cash flow all increased.

RCI repurchased 174,790 common shares for $7.8 million in Q4 2024.

Total Revenue
$73.2M
Previous year: $75.3M
-2.7%
EPS
$1.63
Previous year: $1.11
+46.8%
Gross Profit
$63M
Previous year: $44.1M
+43.0%
Cash and Equivalents
$32.4M
Previous year: $21M
+53.9%
Free Cash Flow
$13.2M
Previous year: $1.66M
+692.8%
Total Assets
$584M
Previous year: $611M
-4.3%

RCI Hospitality

RCI Hospitality

Forward Guidance

RCI Hospitality Holdings plans to focus on its Nightclub business and improve Bombshells, allocating 50% of free cash flow to nightclub acquisitions and debt repayment, and 50% to share buybacks and dividends.

Positive Outlook

  • Focus on existing nightclubs
  • Improve Bombshells
  • Acquire new nightclubs
  • Nightclub Acquisitions: 50% (includes debt repayment)
  • Share Buybacks & Dividends: 50%