In This Article:
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Revenue: $296 million for fiscal year 2024, up from $135 million in 2015.
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Free Cash Flow: Increased to $48 million, up from $15 million in 2015.
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Shares Outstanding: 8.955 million, a reduction of 4.7% year-over-year.
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Non-GAAP EPS: Increased by $1.63.
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Net Cash Provided by Operating Activities: Increased by $3.5 million.
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Adjusted EBITDA: Declined by $2.3 million.
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Nightclub Same-Store Sales Growth: 2.2% increase.
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Bombshells Same-Store Sales Decline: 16.2% decrease.
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Cash and Cash Equivalents: $32.4 million at the end of the fourth quarter.
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Debt Reduction: $7.2 million decline from June 30.
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Average Interest Rate: 6.67%.
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Total Occupancy Cost: 8%, down from 8.1% year-over-year.
Release Date: December 16, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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RCI Hospitality Holdings Inc (NASDAQ:RICK) reported an increase in nightclub sales for the second consecutive quarter, marking a positive trend in their core business.
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The company successfully reduced its share count by 4.7% year-over-year, enhancing shareholder value.
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RCI Hospitality Holdings Inc (NASDAQ:RICK) launched a 'back to the basics' five-year plan, focusing on core nightclub businesses and acquisitions, aiming for $400 million in revenue and $75 million in free cash flow by fiscal 2029.
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The company plans to allocate 50% of its projected $250 million free cash flow over the next five years to club acquisitions and debt repayment, and the other 50% to share buybacks and dividends.
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RCI Hospitality Holdings Inc (NASDAQ:RICK) has shown significant growth since 2015, with revenue more than doubling and free cash flow more than tripling, demonstrating effective capital allocation and operational strategies.
Negative Points
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Total company sales declined due to a hurricane and a fire, impacting earnings per share negatively.
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Bombshells segment experienced a 16.2% decline in same-store sales, affected by multiple closure days due to a hurricane.
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The company faced impairments and other charges totaling $12.5 million in the current quarter, impacting financial results.
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RCI Hospitality Holdings Inc (NASDAQ:RICK) divested underperforming Bombshells locations and closed the Denver Food Hall, indicating challenges in these segments.
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Corporate expenses increased modestly, adding pressure to the company's overall cost structure.
Q & A Highlights
Q: After completing the current pipeline of properties under construction, how does RCI Hospitality plan to approach development versus acquisitions? A: Eric Langan, CEO, stated that after completing the current projects, the company plans to focus strictly on growth through acquisitions rather than building new properties. They do not anticipate starting new builds in 2025 or 2026.