PR Newswire
HOUSTON, Dec. 14, 2020 /PRNewswire/ — RCI Hospitality Holdings, Inc. (Nasdaq: RICK) today reported results for the fourth quarter and year ended September 30, 2020 and filed its Form 10-K. Results are not comparable to year-ago periods due to the COVID-19 pandemic, which has caused state and local governments to restrict the opening of locations, occupancy, and operating hours in different ways, at different times.
Eric Langan, President & CEO, said: “4Q20 demonstrated our continued progress managing the effects of COVID-19. This has enabled us to serve our guests, keep our teams employed, generate free cash flow, and retain a healthy amount of cash on the balance sheet. Considering the operating environment, both the Bombshells and Nightclubs segments exceeded our expectations. A huge thanks goes out to our loyal customers, dedicated team members, and steadfast investors. Looking ahead, we’re actively pursuing several club acquisitions. We’re in various stages of site acquisition and development of ‘The Next 10’ Bombshells, and we believe we are well-positioned to benefit from the positive effects COVID-19 vaccines could create for our businesses over the course of FY21 and beyond.”
4Q20 Key Points
- Total revenues of $28.8 million, up 96% from 3Q20 and equal to 64% of 4Q19 revenues
- Record quarterly Bombshells revenues of $15.5 million, up 82% from 3Q20, with record operating margin of 32.7%
- Nightclubs revenues of $13.1 million, up 118% from 3Q20
- Net cash from operating activities of $3.5 million and free cash flow* of $3.4 million
- GAAP EPS (loss) of ($0.31) and non-GAAP EPS of $0.15
- $15.6 million cash and cash equivalents at September 30, 2020
FY20 Key Points
- Total revenues of $132.3 million
- Net cash from operating activities of $15.6 million and free cash flow of $13.5 million
- GAAP EPS (loss) of ($0.66) and non-GAAP EPS of $0.51
- Common shares outstanding at September 30, 2020 of 9.075 million vs. 9.591 million a year ago
1Q21 Update
- Sales for clubs and restaurants are expected to total $35 million to $37 million, assuming no additional closings/restrictions
- Currently, 36 locations open (26 clubs and all 10 Bombshells)
- As of today, RCI has approximately $18 million cash and cash equivalents on hand
Conference Call Tuesday at 9 AM ET
- Live Participant Phone Number: Toll Free 877-407-9210, International 201-689-8049
- Access the live webcast, slides or replay here: https://www.webcaster4.com/Webcast/Page/2209/39008
- Phone replay: Toll Free 877-481-4010, International 919-882-2331, Passcode: 39008
Note
As of the release of this report, we do not know the future extent and duration of the COVID-19 pandemic on our businesses. Lower sales caused by social distancing guidelines could lead to adverse financial results. We are continually monitoring and evaluating the situation and will determine any further measures to be instituted, which could include refinancing several of our debt obligations.
All references to the “company,” “we,” “our,” and similar terms include RCI Hospitality Holdings, Inc. and its subsidiaries, unless the context indicates otherwise.
4Q20 Statement of Operations (All comparisons are to 4Q19)
- Consolidated revenues of $28.8 million compared to $45.2 million. By segment, Bombshells generated $15.5 million compared to $8.5 million, and Nightclubs generated $13.1 million compared to $35.9 million.
- 24 of 48 locations (8 Bombshells and 16 clubs) were open throughout most of the quarter. By period end, 44 locations (all 10 Bombshells and 34 clubs) were open.
- Cost of goods sold was 15.6% vs. 13.8% of revenues due to the change in mix, reflecting a higher proportion of food and a lower proportion of service revenues.
- Salaries and wages were 28.5% vs. 28.0% of revenues, reflecting effective labor cost management in the face of the changing COVID-19 environment.
- SG&A was 41.0% vs. 36.8% of revenues and D&A was 7.4% vs. 5.2%, largely reflecting fixed costs on a lower revenue base, with the effect on SG&A partially offset by cost-cutting.
- Net other charges of $2.0 million, most of which were non-cash, primarily reflected $1.4 million in additional COVID-19 club impairment and a $453K loss primarily related to hurricane damage at a small Louisiana club which is expected to be covered by insurance.
- Bombshells segment had both record setting $5.1 million operating income at a 32.7% margin on a higher level of sales and more consistent occupancy while operating in line with indoor restrictions.
- Nightclubs segment had a breakeven performance primarily due to the above mentioned $1.9 million in net other charges. On a non-GAAP basis, Nightclubs had a $2.1 million operating profit at a 16.1% margin.
- Interest expense was 3.7% lower due to debt paydowns prior to and during 4Q20.
- Income tax was a $769K expense, which included a non-cash $1.3 million expense for recognizing a deferred tax asset valuation allowance.
September 30, 2020 Balance Sheet (All comparisons are to June 30, 2020)
- Cash and cash equivalents of $15.6 million compared to $14.8 million.
- Debt of $141.4 million compared to $142.7 million.
*Non-GAAP Financial Measures
In addition to our financial information presented in accordance with GAAP, management uses certain non-GAAP financial measures, within the meaning of the SEC Regulation G, to clarify and enhance understanding of past performance and prospects for the future. Generally, a non-GAAP financial measure is a numerical measure of a company’s operating performance, financial position or cash flows that excludes or includes amounts that are included in or excluded from the most directly comparable measure calculated and presented in accordance with GAAP. We monitor non-GAAP financial measures because it describes the operating performance of the Company and helps management and investors gauge our ability to generate cash flow, excluding (or including) some items that management believes are not representative of the ongoing business operations of the Company, but are included in (or excluded from) the most directly comparable measures calculated and presented in accordance with GAAP. Relative to each of the non-GAAP financial measures, we further set forth our rationale as follows:
- Non-GAAP Operating Income and Non-GAAP Operating Margin. We calculate non-GAAP operating income and non-GAAP operating margin by excluding the following items from income from operations and operating margin: (a) amortization of intangibles, (b) impairment of assets, (c) gains or losses on sale of businesses and assets, (d) gains or losses on insurance, and (e) settlement of lawsuits. We believe that excluding these items assists investors in evaluating period-over-period changes in our operating income and operating margin without the impact of items that are not a result of our day-to-day business and operations.
- Non-GAAP Net Income and Non-GAAP Net Income per Diluted Share. We calculate non-GAAP net income and non-GAAP net income per diluted share by excluding or including certain items to net income attributable to RCIHH common stockholders and diluted earnings per share. Adjustment items are: (a) amortization of intangibles, (b) impairment of assets, (c) costs and charges related to debt refinancing, (d) gains or losses on sale of businesses and assets, (e) gains or losses on insurance, (f) unrealized loss on equity securities, (g) settlement of lawsuits, (h) the income tax effect of the above described adjustments, and (i) deferred tax asset valuation allowance. Included in the income tax effect of the above adjustments is the net effect of the non-GAAP provision for income taxes, calculated at 26.0%, 15.5%, and 24.5% effective tax rate of the pre-tax non-GAAP income before taxes for the 2020, 2019, and 2018, respectively, and the GAAP income tax expense (benefit). We believe that excluding and including such items help management and investors better understand our operating activities. The calculated amount for adjustment (h) above in fiscal 2018 was significantly affected by the change in the statutory federal corporate tax rate caused by the Tax Act.
- Adjusted EBITDA. We calculate adjusted EBITDA by excluding the following items from net income attributable to RCIHH common stockholders: (a) depreciation and amortization, (b) income tax expense (benefit), (c) net interest expense, (d) gains or losses on sale of businesses and assets, (e) gains or losses on insurance (f) unrealized gains or losses on equity securities, (g) impairment of assets, and (h) settlement of lawsuits. We believe that adjusting for such items helps management and investors better understand our operating activities. Adjusted EBITDA provides a core operational performance measurement that compares results without the need to adjust for federal, state and local taxes which have considerable variation between domestic jurisdictions. The results are, therefore, without consideration of financing alternatives of capital employed. We use adjusted EBITDA as one guideline to assess the unleveraged performance return on our investments. Adjusted EBITDA multiple is also used as a target benchmark for our acquisitions of nightclubs.
- Management also uses non-GAAP cash flow measures such as free cash flow. Free cash flow is derived from net cash provided by operating activities less maintenance capital expenditures. We use free cash flow as the baseline for the implementation of our capital allocation strategy.
About RCI Hospitality Holdings, Inc. (Nasdaq: RICK)
With more than 40 units, RCI Hospitality Holdings, Inc., through its subsidiaries, is the country’s leading company in gentlemen’s clubs and sports bars/restaurants. Clubs in New York City, Chicago, Dallas/Ft. Worth, Houston, Miami, Minneapolis, St. Louis, Charlotte, Pittsburgh, and other markets operate under brand names such as Rick’s Cabaret, XTC, Club Onyx, Vivid Cabaret, Jaguars Club, Tootsie’s Cabaret, and Scarlett’s Cabaret. Sports bars/restaurants operate under the brand name Bombshells Restaurant & Bar. Please visit http://www.rcihospitality.com/
Forward-Looking Statements
This press release may contain forward-looking statements that involve a number of risks and uncertainties that could cause the company’s actual results to differ materially from those indicated in this press release, including, but not limited to, the risks and uncertainties associated with (i) operating and managing an adult business, (ii) the business climates in cities where it operates, (iii) the success or lack thereof in launching and building the company’s businesses, (iv) cyber security, (v) conditions relevant to real estate transactions, (vi) the impact of the COVID-19 pandemic, and (vii) numerous other factors such as laws governing the operation of adult entertainment businesses, competition and dependence on key personnel. For more detailed discussion of such factors and certain risks and uncertainties, see RCI’s annual report on Form 10-K for the year ended September 30, 2020 as well as its other filings with the U.S. Securities and Exchange Commission. The company has no obligation to update or revise the forward-looking statements to reflect the occurrence of future events or circumstances.
Media & Investor Contacts
Gary Fishman and Steven Anreder at 212-532-3232 or [email protected] and [email protected]
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(in thousands, except per share and percentage data) |
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Revenues |
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Sales of alcoholic beverages |
$ 13,795 |
47.9% |
$ 18,774 |
41.6% |
$ 59,080 |
44.6% |
$ 75,140 |
41.5% |
|||||||||||
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Sales of food and merchandise |
7,082 |
24.6% |
6,655 |
14.7% |
24,460 |
18.5% |
25,830 |
14.3% |
|||||||||||
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Service revenues |
6,714 |
23.3% |
16,446 |
36.4% |
41,162 |
31.1% |
68,055 |
37.6% |
|||||||||||
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Other |
1,195 |
4.2% |
3,308 |
7.3% |
7,625 |
5.8% |
12,034 |
6.6% |
|||||||||||
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Total revenues |
28,786 |
100.0% |
45,183 |
100.0% |
132,327 |
100.0% |
181,059 |
100.0% |
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Operating expenses |
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Cost of goods sold |
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Alcoholic beverages sold |
2,271 |
16.5% |
3,762 |
20.0% |
11,097 |
18.8% |
15,303 |
20.4% |
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Food and merchandise sold |
2,154 |
30.4% |
2,199 |
33.0% |
8,071 |
33.0% |
9,056 |
35.1% |
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Service and other |
62 |
0.8% |
271 |
1.4% |
267 |
0.5% |
578 |
0.7% |
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Total cost of goods sold (exclusive of items shown below) |
4,487 |
15.6% |
6,232 |
13.8% |
19,435 |
14.7% |
24,937 |
13.8% |
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Salaries and wages |
8,204 |
28.5% |
12,665 |
28.0% |
39,070 |
29.5% |
49,833 |
27.5% |
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Selling, general and administrative |
11,803 |
41.0% |
16,633 |
36.8% |
51,692 |
39.1% |
59,896 |
33.1% |
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Depreciation and amortization |
2,140 |
7.4% |
2,354 |
5.2% |
8,836 |
6.7% |
9,072 |
5.0% |
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Other charges (gains), net |
1,960 |
6.8% |
4,870 |
10.8% |
10,548 |
8.0% |
2,620 |
1.4% |
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Total operating expenses |
28,594 |
99.3% |
42,754 |
94.6% |
129,581 |
97.9% |
146,358 |
80.8% |
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Income (loss) from operations |
192 |
0.7% |
2,429 |
5.4% |
2,746 |
2.1% |
34,701 |
19.2% |
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Other income (expenses) |
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Interest expense |
(2,408) |
-8.4% |
(2,500) |
-5.5% |
(9,811) |
-7.4% |
(10,209) |
-5.6% |
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Interest income |
61 |
0.2% |
91 |
0.2% |
324 |
0.2% |
309 |
0.2% |
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Unrealized gain (loss) on equity securities |
39 |
0.1% |
(204) |
-0.5% |
(64) |
0.0% |
(612) |
-0.3% |
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Income (loss) before income taxes |
(2,116) |
-7.4% |
(184) |
-0.4% |
(6,805) |
-5.1% |
24,189 |
13.4% |
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Income tax expense (benefit) |
769 |
2.7% |
(684) |
-1.5% |
(493) |
-0.4% |
3,744 |
2.1% |
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Net income (loss) |
(2,885) |
-10.0% |
500 |
1.1% |
(6,312) |
-4.8% |
20,445 |
11.3% |
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Net loss (income) attributable to noncontrolling interests |
92 |
0.3% |
(42) |
-0.1% |
227 |
0.2% |
(151) |
-0.1% |
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Net income (loss) attributable to RCIHH common shareholders |
$ (2,793) |
-9.7% |
$ 458 |
1.0% |
$ (6,085) |
-4.6% |
$ 20,294 |
11.2% |
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Earnings (loss) per share |
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Basic and diluted |
$ (0.31) |
$ 0.05 |
$ (0.66) |
$ 2.10 |
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Weighted average shares outstanding |
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Basic and diluted |
9,124 |
9,616 |
9,199 |
9,657 |
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Dividends per share |
$ 0.04 |
$ 0.03 |
$ 0.14 |
$ 0.13 |
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(in thousands, except per share and percentage data) |
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Net income (loss) attributable to RCIHH common stockholders |
$ (2,793) |
$ 458 |
$ (6,085) |
$ 20,294 |
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Income tax expense (benefit) |
769 |
(684) |
(493) |
3,744 |
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Interest expense, net |
2,347 |
2,409 |
9,487 |
9,900 |
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Settlement of lawsuits |
100 |
81 |
174 |
225 |
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Impairment of assets |
1,423 |
6,040 |
10,615 |
6,040 |
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Gain on sale of businesses and assets |
(16) |
(390) |
(661) |
(2,877) |
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Unrealized loss (gain) on equity securities |
(39) |
204 |
64 |
612 |
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Loss (gain) on insurance |
453 |
(861) |
420 |
(768) |
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Depreciation and amortization |
2,140 |
2,354 |
8,836 |
9,072 |
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Adjusted EBITDA |
$ 4,384 |
$ 9,611 |
$ 22,357 |
$ 46,242 |
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Net income (loss) attributable to RCIHH common stockholders |
$ (2,793) |
$ 458 |
$ (6,085) |
$ 20,294 |
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Amortization of intangibles |
148 |
150 |
609 |
624 |
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Settlement of lawsuits |
100 |
81 |
174 |
225 |
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Impairment of assets |
1,423 |
6,040 |
10,615 |
6,040 |
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Gain on sale of businesses and assets |
(17) |
(390) |
(661) |
(2,877) |
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Unrealized loss (gain) on equity securities |
(39) |
204 |
64 |
612 |
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Loss (gain) on insurance |
453 |
(861) |
420 |
(768) |
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Valuation allowance |
1,273 |
– |
1,273 |
– |
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Net income tax effect |
799 |
212 |
(1,700) |
(580) |
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Non-GAAP net income |
$ 1,347 |
$ 5,894 |
$ 4,709 |
$ 23,570 |
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Diluted shares |
9,124 |
9,616 |
9,199 |
9,657 |
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GAAP diluted earnings (loss) per share |
$ (0.31) |
$ 0.05 |
$ (0.66) |
$ 2.10 |
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Amortization of intangibles |
0.02 |
0.02 |
0.07 |
0.06 |
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Settlement of lawsuits |
0.01 |
0.01 |
0.02 |
0.02 |
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Impairment of assets |
0.16 |
0.63 |
1.15 |
0.63 |
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Gain on sale of businesses and assets |
(0.00) |
(0.04) |
(0.07) |
(0.30) |
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Unrealized loss (gain) on equity securities |
(0.00) |
0.02 |
0.01 |
0.06 |
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Loss (gain) on insurance |
0.05 |
(0.09) |
0.05 |
(0.08) |
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Valuation allowance |
0.14 |
– |
0.14 |
– |
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Net income tax effect |
0.09 |
0.02 |
(0.18) |
(0.06) |
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Non-GAAP diluted earnings per share |
$ 0.15 |
$ 0.61 |
$ 0.51 |
$ 2.44 |
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Income from operations |
$ 192 |
$ 2,429 |
$ 2,746 |
$ 34,701 |
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Amortization of intangibles |
148 |
150 |
609 |
624 |
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Settlement of lawsuits |
100 |
81 |
174 |
225 |
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Impairment of assets |
1,423 |
6,040 |
10,615 |
6,040 |
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Gain on sale of businesses and assets |
(17) |
(390) |
(661) |
(2,877) |
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Loss (gain) on insurance |
453 |
(861) |
420 |
(768) |
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Non-GAAP operating income |
$ 2,299 |
$ 7,449 |
$ 13,903 |
$ 37,945 |
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GAAP operating margin |
0.7% |
5.4% |
2.1% |
19.2% |
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Amortization of intangibles |
0.5% |
0.3% |
0.5% |
0.3% |
||||
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Settlement of lawsuits |
0.3% |
0.2% |
0.1% |
0.1% |
||||
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Impairment of assets |
4.9% |
13.4% |
8.0% |
3.3% |
||||
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Gain on sale of businesses and assets |
-0.1% |
-0.9% |
-0.5% |
-1.6% |
||||
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Loss (gain) on insurance |
1.6% |
-1.9% |
0.3% |
-0.4% |
||||
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Non-GAAP operating margin |
8.0% |
16.5% |
10.5% |
21.0% |
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Net cash provided by operating activities |
$ 3,485 |
$ 7,641 |
$ 15,632 |
$ 37,174 |
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Less: Maintenance capital expenditures |
40 |
1,786 |
2,151 |
3,858 |
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Free cash flow |
$ 3,445 |
$ 5,855 |
$ 13,481 |
$ 33,316 |
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(in thousands) |
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Revenues |
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Nightclubs |
$ 13,134 |
$ 35,942 |
$ 88,373 |
$ 148,606 |
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Bombshells |
15,531 |
8,533 |
43,215 |
30,828 |
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Other |
121 |
708 |
739 |
1,625 |
|||||
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$ 28,786 |
$ 45,183 |
$ 132,327 |
$ 181,059 |
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Income (loss) from operations |
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Nightclubs |
$ 116 |
$ 6,225 |
$ 13,118 |
$ 50,724 |
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Bombshells |
5,079 |
764 |
9,245 |
2,307 |
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Other |
(204) |
97 |
(684) |
(309) |
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General corporate |
(4,799) |
(4,657) |
(18,933) |
(18,021) |
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$ 192 |
$ 2,429 |
$ 2,746 |
$ 34,701 |
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($ in thousands) |
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Income (loss) from operations |
$ 116 |
$ 5,079 |
$ (204) |
$ (4,799) |
$ 192 |
$ 6,225 |
$ 764 |
$ 97 |
$ (4,657) |
$ 2,429 |
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Amortization of intangibles |
48 |
4 |
96 |
– |
148 |
– |
– |
– |
150 |
150 |
||||||||||
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Settlement of lawsuits |
100 |
– |
– |
– |
100 |
40 |
– |
– |
41 |
81 |
||||||||||
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Impairment of assets |
1,423 |
– |
– |
– |
1,423 |
5,920 |
– |
– |
120 |
6,040 |
||||||||||
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Loss (gain) on sale of businesses and assets |
(20) |
– |
– |
3 |
(17) |
(446) |
26 |
– |
30 |
(390) |
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Loss (gain) on insurance |
453 |
– |
– |
– |
453 |
(747) |
– |
– |
(114) |
(861) |
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Non-GAAP operating income (loss) |
$ 2,120 |
$ 5,083 |
$ (108) |
$ (4,796) |
$ 2,299 |
$ 10,992 |
$ 790 |
$ 97 |
$ (4,430) |
$ 7,449 |
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GAAP operating margin |
0.9% |
32.7% |
-168.6% |
-16.7% |
0.7% |
17.3% |
9.0% |
13.7% |
-10.3% |
5.4% |
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Non-GAAP operating margin |
16.1% |
32.7% |
-89.3% |
-16.7% |
8.0% |
30.6% |
9.3% |
13.7% |
-9.8% |
16.5% |
||||||||||
|
|
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Income (loss) from operations |
$ 13,118 |
$ 9,245 |
$ (684) |
$ (18,933) |
$ 2,746 |
$ 50,724 |
$ 2,307 |
$ (309) |
$ (18,021) |
$ 34,701 |
||||||||||
|
Amortization of intangibles |
211 |
15 |
383 |
– |
609 |
– |
– |
– |
624 |
624 |
||||||||||
|
Settlement of lawsuits |
174 |
– |
– |
– |
174 |
169 |
3 |
– |
53 |
225 |
||||||||||
|
Impairment of assets |
10,370 |
245 |
– |
– |
10,615 |
5,920 |
– |
– |
120 |
6,040 |
||||||||||
|
Loss (gain) on sale of businesses and assets |
(639) |
16 |
– |
(38) |
(661) |
(2,858) |
27 |
– |
(46) |
(2,877) |
||||||||||
|
Loss (gain) on insurance |
433 |
– |
– |
(13) |
420 |
(654) |
– |
– |
(114) |
(768) |
||||||||||
|
Non-GAAP operating income (loss) |
$ 23,667 |
$ 9,521 |
$ (301) |
$ (18,984) |
$ 13,903 |
$ 53,301 |
$ 2,337 |
$ (309) |
$ (17,384) |
$ 37,945 |
||||||||||
|
GAAP operating margin |
14.8% |
21.4% |
-92.6% |
-14.3% |
2.1% |
34.1% |
7.5% |
-19.0% |
-10.0% |
19.2% |
||||||||||
|
Non-GAAP operating margin |
26.8% |
22.0% |
-40.7% |
-14.3% |
10.5% |
35.9% |
7.6% |
-19.0% |
-9.6% |
21.0% |
||||||||||
|
|
||||||||||
|
|
||||||||||
|
(in thousands) |
||||||||||
|
|
|
|||||||||
|
|
|
|
|
|||||||
|
CASH FLOWS FROM OPERATING ACTIVITIES |
||||||||||
|
Net income (loss) |
$ (2,885) |
$ 500 |
$ (6,312) |
$ 20,445 |
||||||
|
Adjustments to reconcile net income (loss) to net cash |
||||||||||
|
provided by operating activities: |
||||||||||
|
Depreciation and amortization |
2,140 |
2,354 |
8,836 |
9,072 |
||||||
|
Deferred income tax expense (benefit) |
249 |
(416) |
(1,268) |
821 |
||||||
|
Gain on sale of businesses and assets |
(28) |
(262) |
(777) |
(2,966) |
||||||
|
Impairment of assets |
1,423 |
6,040 |
10,615 |
6,040 |
||||||
|
Unrealized loss (gain) on equity securities |
(39) |
204 |
64 |
612 |
||||||
|
Amortization of debt discount and issuance costs |
42 |
58 |
236 |
334 |
||||||
|
Deferred rent expense |
– |
46 |
– |
282 |
||||||
|
Noncash lease expense |
416 |
– |
1,660 |
– |
||||||
|
Loss (gain) on insurance |
629 |
(381) |
596 |
(288) |
||||||
|
Doubtful accounts expense on notes receivable |
107 |
– |
602 |
– |
||||||
|
Changes in operating assets and liabilities: |
||||||||||
|
Accounts receivable |
(241) |
(1,848) |
(294) |
457 |
||||||
|
Inventories |
255 |
(129) |
226 |
(216) |
||||||
|
Prepaid expenses, other current assets and other assets |
(3,309) |
(4,880) |
1,633 |
(681) |
||||||
|
Accounts payable, accrued and other liabilities |
4,726 |
6,355 |
(185) |
3,262 |
||||||
|
Net cash provided by operating activities |
3,485 |
7,641 |
15,632 |
37,174 |
||||||
|
CASH FLOWS FROM INVESTING ACTIVITIES |
||||||||||
|
Proceeds from sale of businesses and assets |
180 |
2,117 |
2,221 |
7,223 |
||||||
|
Proceeds from insurance |
– |
100 |
945 |
100 |
||||||
|
Proceeds from notes receivable |
21 |
51 |
1,576 |
158 |
||||||
|
Issuance of note receivable |
– |
– |
– |
(420) |
||||||
|
Payments for property and equipment and intangible assets |
(171) |
(3,807) |
(5,736) |
(20,708) |
||||||
|
Acquisition of businesses, net of cash acquired |
– |
– |
– |
(13,500) |
||||||
|
Net cash provided by (used in) investing activities |
30 |
(1,539) |
(994) |
(27,147) |
||||||
|
CASH FLOWS FROM FINANCING ACTIVITIES |
||||||||||
|
Proceeds from debt obligations |
– |
1,181 |
6,503 |
13,511 |
||||||
|
Payments on debt obligations |
(1,343) |
(4,290) |
(8,832) |
(22,924) |
||||||
|
Purchase of treasury stock |
(996) |
(537) |
(9,484) |
(2,901) |
||||||
|
Payment of dividends |
(366) |
(385) |
(1,286) |
(1,252) |
||||||
|
Payment of loan origination costs |
– |
– |
– |
(20) |
||||||
|
Distribution to noncontrolling interests |
– |
(49) |
(31) |
(70) |
||||||
|
Net cash used in financing activities |
(2,705) |
(4,080) |
(13,130) |
(13,656) |
||||||
|
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
810 |
2,022 |
1,508 |
(3,629) |
||||||
|
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD |
14,795 |
10,956 |
14,097 |
17,726 |
||||||
|
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
$ 15,605 |
$ 12,978 |
$ 15,605 |
$ 14,097 |
||||||
|
|
|||||||
|
|
|||||||
|
(in thousands) |
|||||||
|
|
|
||||||
|
|
|
||||||
|
ASSETS |
|||||||
|
Current assets |
|||||||
|
Cash and cash equivalents |
$ 15,605 |
$ 14,097 |
|||||
|
Accounts receivable, net |
6,767 |
7,408 |
|||||
|
Current portion of notes receivable |
201 |
954 |
|||||
|
Inventories |
2,372 |
2,598 |
|||||
|
Prepaid insurance |
4,884 |
5,446 |
|||||
|
Other current assets |
1,604 |
2,521 |
|||||
|
Assets held for sale |
– |
2,866 |
|||||
|
Total current assets |
31,433 |
35,890 |
|||||
|
Property and equipment, net |
181,383 |
183,956 |
|||||
|
Operating lease right-of-use assets, net |
25,546 |
– |
|||||
|
Notes receivable, net of current portion |
2,908 |
4,211 |
|||||
|
Goodwill |
45,686 |
53,630 |
|||||
|
Intangibles, net |
73,077 |
75,951 |
|||||
|
Other assets |
900 |
1,118 |
|||||
|
Total assets |
$ 360,933 |
$ 354,756 |
|||||
|
LIABILITIES AND EQUITY |
|||||||
|
Current liabilities |
|||||||
|
Accounts payable |
$ 4,799 |
$ 3,810 |
|||||
|
Accrued liabilities |
14,573 |
14,644 |
|||||
|
Current portion of long-term debt, net |
16,304 |
15,754 |
|||||
|
Current portion of operating lease liabilities |
1,628 |
– |
|||||
|
Total current liabilities |
37,304 |
34,208 |
|||||
|
Deferred tax liability, net |
20,390 |
21,658 |
|||||
|
Long-term debt, net of current portion and debt discount and issuance costs |
125,131 |
127,774 |
|||||
|
Operating lease liabilities, net of current portion |
25,439 |
– |
|||||
|
Other long-term liabilities |
362 |
1,696 |
|||||
|
Total liabilities |
208,626 |
185,336 |
|||||
|
Commitments and contingencies |
|||||||
|
Equity |
|||||||
|
Preferred stock |
– |
– |
|||||
|
Common stock |
91 |
96 |
|||||
|
Additional paid-in capital |
51,833 |
61,312 |
|||||
|
Retained earnings |
100,797 |
108,168 |
|||||
|
Total RCIHH stockholders’ equity |
152,721 |
169,576 |
|||||
|
Noncontrolling interests |
(414) |
(156) |
|||||
|
Total equity |
152,307 |
169,420 |
|||||
|
Total liabilities and equity |
$ 360,933 |
$ 354,756 |
|||||
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SOURCE RCI Hospitality Holdings, Inc.
