RCI Announces FY19 Free Cash Flow Target
HOUSTON – December 4, 2018 – RCI Hospitality Holdings, Inc. (Nasdaq: RICK) announced its initial Fiscal 2019 free cash flow target.
As FY19 gets underway, the company is projecting net cash from operating activities of around $29.0 million, less maintenance capital expenditures of around $3.0 million, resulting in free cash flow of approximately $26.0 million. This would represent a 13% increase over RCI's original FCF target for FY18.
"In line with our capital allocation strategy, we will consider repurchasing shares in the open market if the yield on our free cash flow run rate relative to our market cap approaches or exceeds double digits," said Eric Langan, President & CEO of RCI. "With our new free cash flow run rate of $26 million, this would correspond to a share price of approximately $27.00."
RCI plans to discuss the FY19 target with investors today and Wednesday at the LD Micro Main Event conference in Los Angeles and during the company's presentation on Wednesday at 1:00 PM PT (4:00 PM ET). To access the live webcast, slides, and replay, visit http://wsw.com/webcast/ldmicro15/rick/.
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, Miami, Charlotte, Dallas/Ft. Worth, Houston, Minneapolis, St. Louis, and other markets operate under brand names such as Rick‘s Cabaret, XTC, Club Onyx, Vivid Cabaret, Jaguars, Tootsie's Cabaret, and Scarlett's Cabaret. Sports bars/restaurants operate under the brand name Bombshells Restaurant & Bar. Please visit http://www.rcihospitality.com.
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 the risks and uncertainties associated with operating and managing an adult business, the business climates in cities where it operates, the success or lack thereof in launching and building the company's businesses, risks and uncertainties related to cybersecurity, conditions relevant to real estate transactions, and numerous other factors such as laws governing the operation of adult entertainment businesses, competition and dependence on key personnel. The company has no obligation to update or revise the forward-looking statements to reflect the occurrence of future events or circumstances.
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