NASDAQ$RICK

RCI Hospitality Holdings Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

RCI Hospitality's Q1 2024 results reflected a mix of nightclub performance aligned with expectations and Bombshells underperformance, with strategic actions underway to enhance growth and shareholder value.

RCI Hospitality Holdings reported Q1 2024 revenues of $73.9 million, up from $70.0 million in Q1 2023. EPS was $0.77 compared to $1.11, and Non-GAAP EPS was $0.87 compared to $1.19. The company is focusing on growth plans, including new casinos, clubs, and restaurants, along with strategic share repurchases.

  • Total revenues increased to $73.9 million from $70.0 million year-over-year.
  • Nightclubs segment revenues rose to $61.0 million, driven by new acquisitions and remodels, offsetting same-store sales decline.
  • Bombshells segment revenues decreased to $12.7 million, impacted by lower same-store sales.
  • Share repurchases totaled 37,954 shares for $2.1 million, with $14.6 million remaining in stock repurchase authorization.

Headline financials

Total Revenue

$73.9M

Previous: $70M+5.6%
EPS (adj)

$0.87

Previous: $1.19-26.9%
GAAP Operating Margin

17.8%

No prior period
Total OpEx % of Revenue

82.2%

No prior period
COGS % of Revenue

14.0%

No prior period
Salaries & Wages % of Revenue

28.9%

No prior period
Effective Tax Rate

19.9%

No prior period
Capital Expenditures

-$5.14M

Previous: -$12.6M+59.1%
Net Income

$7.24M

Previous: $10.2M-29.2%
Operating Income

$13.2M

Previous: $16.9M-22.1%
Gross Profit

$42.2M

Previous: $61M-30.7%
Stock-Based Comp

$470K

Previous: $941K-50.1%

Revenue & EPS history

RCI Hospitality · Revenue · Quarterly

$73.9M

Q1 2024+5.6%vs Q1 2023
Beat estimate in 10 of 14 quarters(71%)
ActualEstimate

Revenue by segment

RCI Hospitality · $76.8M total across 2 segments · Q3 2023

  • Nightclubs
    $62.4M+14.2%
  • Bombshells
    $14.4M-8.8%

Forward guidance

RCI Hospitality is focused on growth through new ventures and strategic capital allocation, but faces potential challenges in Bombshells performance and general business risks.

Tailwinds

  • Progress with growth plans based on opening new casinos, clubs and restaurants.
  • Acquiring more clubs to expand the company's footprint.
  • Buying back shares when appropriate to enhance shareholder value.
  • Completing an approximately $20 million cash-out bank loan.
  • Utilizing an estimated $30 million of unencumbered real estate.

Headwinds

  • Macro uncertainty negatively affecting same-store sales.
  • Bombshells segment not performing as well as expected.
  • Considering options to improve Bombshells performance, including potentially seeking an operational partner or selling the business.
  • Risks and uncertainties associated with operating and managing adult entertainment or restaurant business.
  • Impact of the COVID-19 pandemic.

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 2024

Historical avgQ1 2024

+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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