NASDAQ$RICK

RCI Hospitality Holdings Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Reported first quarter of fiscal year 2020 results, showing growth in Bombshells revenue and strong contribution from nightclubs.

RCI Hospitality Holdings reported its first quarter 2020 results, with Bombshells showing noticeable revenue, margin, and profit growth. Nightclubs maintained a strong contribution, offsetting temporary closures and a shorter selling week. The company continued its capital allocation strategy, reducing shares outstanding by 4% year over year.

  • Bombshells revenue, margin, and profit continued to grow from new and older locations.
  • Nightclubs maintained their strong contribution, with new locations offsetting temporary closures.
  • The company reduced shares outstanding by 4% year over year, buying back 332,671 shares for $6.4 million.
  • Refinanced $12.2 million of debt, eliminating $10.8 million of near-term non-realty balloon payments.

Headline financials

Total Revenue

$48.4M

Previous: $44M+9.9%
EPS (adj)

$0.62

Previous: $0.61+1.6%
Capital Expenditures

-$4.06M

Previous: -$7.3M+44.4%
Free Cash Flow

$1.58M

Previous: -$951K+265.7%
Net Income

$5.63M

Previous: $6.34M-11.2%
Operating Income

$9.69M

Previous: $11.1M-13.0%
Gross Profit

$41.6M

Previous: $38.2M+8.9%
Cash & Equivalents

$13.2M

Previous: $9.39M+40.2%
Total Assets

$376M

Previous: $350M+7.6%

Revenue & EPS history

RCI Hospitality · Revenue · Quarterly

$48.4M

Q1 2020+9.9%vs Q1 2019
Beat estimate in 8 of 13 quarters(62%)
ActualEstimate

Revenue by segment

RCI Hospitality · $43.7M total across 2 segments · Q1 2020

  • Nightclubs
    $34.2M
  • Bombshells
    $9.54M

Forward guidance

Company expects performance to continue to expand with new Bombshells locations and the reopening of clubs. Anticipates salaries and wages and SG&A costs to subside in the second half, increasing operating leverage. Aims to increase financial flexibility through debt refinancing and selling excess properties.

Tailwinds

  • Performance should continue to expand with Bombshells Katy, which opened mid-1Q20.
  • Bombshells 59 in southwest Houston, which opened mid-2Q20.
  • Remodeling and expansion of the first Bombshells in Dallas.
  • Scarlett’s Cabaret St. Louis and Rick’s Cabaret Odessa have reopened.
  • Closing on our Northeast Corridor acquisition.

Headwinds

  • Salaries and wages and SG&A were higher than what we’d like due to accounting, legal and overtime costs related to our recently filed 10-K.
  • These costs will continue to be somewhat high in 2Q20.
  • One less selling week during the high-volume Thanksgiving and Christmas period.
  • Two clubs closed part of the quarter for repairs.
  • Conditions relevant to real estate transactions.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+2.7%

Avg return

Earnings day

+1.9%

Avg return

5 days after

+0.1%

Avg return

30 days after

62%

40 / 65 earnings

Positive

+24.7%

Q1 2021

Best reaction

-19.4%

Q1 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.1%-8.1%-5.0%
Q4 2025+7.1%+1.6%+4.4%
Q4 2024+11.4%-4.3%-9.8%
Q3 2025+1.4%+3.4%-3.2%
Q2 2025-2.2%-8.3%-6.0%
Q1 2025-3.7%-2.2%-17.1%
Q3 2024+7.7%+7.6%-4.8%
Q2 2024-5.5%-7.2%-11.2%
Q1 2024-4.9%-5.2%-6.7%
Q4 2023-4.3%-1.8%-5.1%
Q3 2023-1.8%-2.7%-7.3%
Q2 2023-3.8%-3.5%+1.1%
Q1 2023-9.4%-4.4%-10.0%
Q4 2022+6.4%+4.1%+9.3%
Q3 2022+7.7%+15.0%+7.4%
Q2 2022-4.8%-5.8%-8.6%
Q1 2022-2.9%-13.6%-22.0%
Q4 2021+4.6%-3.2%-16.6%
Q3 2021+10.5%+10.2%+3.7%
Q2 2021-1.6%+5.6%-2.4%
Q1 2021+24.7%+18.3%+50.2%
Q4 2020+9.1%+8.8%+19.6%
Q3 2020+19.8%+21.5%+48.0%
Q2 2020-15.0%-22.2%+29.2%
Q1 2020-19.4%-15.2%-57.5%
Q4 2019+6.6%+0.4%-56.0%
Q3 2019+15.1%+23.6%+16.9%
Q2 2019+10.7%+7.1%+6.5%
Q1 2019+5.2%+5.9%-0.1%
Q4 2018+5.9%-5.4%+1.2%
Q3 2018+1.9%+2.1%-4.9%
Q2 2018+7.7%+5.1%+9.2%
Q1 2018+7.1%+4.2%-1.9%
Q4 2017+7.9%+7.5%+4.7%
Q3 2017+10.9%+11.7%+0.1%
Q2 2017+12.0%+13.2%+38.0%
Q1 2017+1.0%+0.2%-6.6%
Q4 2016-0.3%+6.8%+10.0%
Q3 2016+3.4%+3.9%+6.3%
Q2 2016+6.6%
Q1 2016+4.1%
Q4 2015-2.1%
Q3 2015-6.2%
Q2 2015+4.1%
Q1 2015+4.8%
Q4 2014-0.5%
Q3 2014+4.7%
Q2 2014+7.6%
Q1 2014-0.8%
Q4 2013+15.5%
Q3 2013+2.7%
Q2 2013+1.0%
Q1 2013+8.2%
Q4 2012+4.2%
Q2 2010+4.2%
Q3 2012-5.1%
Q2 2012-1.9%
Q1 2011-7.3%
Q1 2012-2.0%
Q2 2011+3.3%
Q4 2011+3.3%
Q4 2009+3.3%
Q3 2010-0.1%
Q3 2011-0.1%
Q4 2010-0.1%

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