NASDAQ$RICK

RCI Hospitality Holdings Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

RCI Hospitality reported a revenue increase driven by nightclub acquisitions but faced same-store sales declines in Bombshells, with overall profitability affected by prior year's high operating leverage.

RCI Hospitality Holdings, Inc. reported a 9.0% year-over-year increase in third quarter revenues, reaching $77.1 million. The company generated $14.3 million in free cash flow and $22.7 million in adjusted EBITDA. EPS was reported at $0.96, while non-GAAP EPS reached $1.30.

  • Total revenues increased by 9.0% year-over-year to $77.1 million.
  • GAAP EPS was $0.96, and Non-GAAP EPS was $1.30.
  • Free cash flow was $14.3 million.
  • The company repurchased 10,440 common shares for $725,423 in 4Q23 to date.

Headline financials

Total Revenue

$77.1M

Previous: $70.7M+9.0%
EPS (adj)

$1.30

Previous: $1.60-18.8%
Capital Expenditures

-$29.9M

Previous: -$17.2M-74.2%
Free Cash Flow

-$20.8M

Previous: -$3.27M-536.9%
Net Income

$9.09M

Previous: $13.9M-34.6%
Operating Income

$15.5M

Previous: $20.5M-24.3%
Gross Profit

$66.5M

Previous: $61.5M+8.1%
Cash & Equivalents

$23.6M

Previous: $37.5M-37.1%
Total Assets

$620M

Previous: $502M+23.5%
Stock-Based Comp

$470K

No prior period

Revenue & EPS history

RCI Hospitality · Revenue · Quarterly

$77.1M

Q3 2023+9%vs Q3 2022
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 anticipates opening a new Bombshells location in Stafford, TX, during 4Q23. For FY24, plans include relaunching a temporarily closed club, opening two new clubs in Fort Worth and Lubbock, TX, and launching three new Bombshells in Lubbock, Rowlett, TX, and downtown Denver. The company also aims to open Rick’s Cabaret Steakhouse & Casino and Bombshells Sports Casino in Central City, CO, while continuing to pursue new club acquisitions.

Tailwinds

  • Opening new Bombshells in Stafford, TX in 4Q23.
  • Relaunching a temporarily closed club in FY24.
  • Opening two new clubs in Fort Worth and Lubbock, TX in FY24.
  • Launching three new Bombshells in Lubbock and Rowlett, TX, and downtown Denver.
  • Aiming to open Rick’s Cabaret Steakhouse & Casino and Bombshells Sports Casino in Central City, CO.

Headwinds

  • Economic uncertainty may impact customer spending.
  • Vacation travel may decrease traffic.
  • Extreme Texas heat may affect performance.
  • Unspecified risks and uncertainties associated with operating and managing adult entertainment or restaurant businesses.
  • Competition and dependence on key personnel.

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 Q3 2023

Historical avgQ3 2023

+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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro