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RCI Reports 2Q23 Results: Total Revenues $71.5M, GAAP EPS $0.83, Non-GAAP EPS $1.30

May 10, 2023 4:05 PM

Twitter Spaces Conference Call at 4:30 PM ET Today; Meet Management at 7 PM ET Tonight

HOUSTON, May 10, 2023 /PRNewswire/ -- RCI Hospitality Holdings, Inc. (Nasdaq: RICK) today reported results and filed its Form 10-Q for the fiscal 2023 second quarter ended March 31, 2023.

Summary Financials

2Q23

Change YoY

6M23

Change YoY

Total Revenues

$71.5M

12.3 %

$141.5M

12.7 %

EPS

$0.83

-27.8 %

$1.94

-14.9 %

Non-GAAP EPS*

$1.30

9.2 %

$2.50

9.2 %

Net Cash from Operating Activities

$16.8M

44.8 %

$31.7M

13.7 %

Free Cash Flow*

$14.8M

33.3 %

$27.8M

5.5 %

Net Income Attributable to RCIHH Common Shareholders

$7.7M

-29.4 %

$18.0M

-16.5 %

Adjusted EBITDA*

$21.7M

8.8 %

$42.1M

11.2 %

Weighted Average Basic & Diluted Shares Outstanding

9.3M

-2.4 %

9.2M

-2.1 %

* See "Non-GAAP Financial Measures" below.

Eric Langan, President and CEO of RCI Hospitality Holdings, Inc., said: "We moved ahead on a number of fronts during the second quarter. Revenues grew to $71.5 million, an increase of 12.3% year over year, reflecting both same-store sales and acquisitions. Free cash flow grew 33.3% to $14.8 million or 20.6% of revenues, and adjusted EBITDA rose 8.8% to $21.7 million or 30.3% of revenues."

"We completed our 5-club, Baby Dolls-Chicas Locas acquisition and look forward to optimizing their contribution. On a sequential quarter basis, our Bombshells turnaround program has started to produce results. We also advanced many of our projects involving club acquisition and development, Rick's Cabaret Steakhouse & Casino in Colorado, and new Bombshells. As always, thanks to our loyal and dedicated teams for all their hard work and effort."

Conference Call at 4:30 PM ET Today

Participants need to use Twitter Spaces on their mobile phones to ask questions during the Q&A

Twitter Spaces

Telephone

Webcast, Slides & Replay

  • Toll Free 877-545-0523
  • International: 973-528-0016
  • Passcode: 368166

Meet Management at 7:00 PM ET Tonight

  • Investors are invited to Meet Management at one of RCI's top revenue generating clubs
  • Rick's Cabaret New York, 50 W 33rd St, New York, NY 10001
  • RSVP your contact information to [email protected] by 5:00 PM ET today

2Q23 Segments (Comparisons are to 2Q22 unless indicated otherwise)

  • Nightclubs: Revenues were $57.0 million, an increase of 18.4% compared to $48.2 million. The increase was driven by $6.9 million from acquired and remodeled clubs, and same store sales growth.1 Operating income was $18.0 million or 31.6% of revenues compared to $19.1 million or 39.7%. 2Q23 operating income included $3.1 million legal settlement accrual and $0.7 million non-cash impairment. Non-GAAP operating income was $22.4 million or 39.3% of revenues compared to $19.0 million or 39.5%. On a sequential quarter basis, revenues increased 1.3%, primarily driven by acquisitions, and non-GAAP operating margin declined 1.1 percentage points, primarily reflecting the Baby Dolls and Chicas Locas acquisition, which in two weeks of ownership did not allow for enough time for full operating optimization.
  • Bombshells: Revenues were $14.3 million, a decline of 6.6% compared to $15.3 million in 2Q22, which was the segment's last major peak stimulus/post-Covid quarter. Revenues included $1.3 million from Bombshells San Antonio (acquired February 2023) and Grange Food Hall (acquired December 2022). Same-store sales declined.1 Operating profit was $1.8 million or 12.4% of revenues compared to $3.5 million or 22.6%. 2Q23 operating profit included $0.4 million of accelerated non-cash amortization of Grange food stall leases. Non-GAAP operating profit was $2.2 million or 15.4% of revenues compared to $3.5 million or 22.7%. On a sequential quarter basis, revenues increased 6.6%, primarily driven by acquisitions, and non-GAAP operating margin increased 1.6 percentage points, reflecting the segment's turnaround plan.

2Q23 Consolidated (Comparisons are to 2Q22 and % are of total revenues unless indicated otherwise)

  • Cost of goods sold: 12.7% compared to 13.8% and 12.9% in 1Q23. The year-over-year decline primarily reflected a 19.5% increase in high-margin service revenues.
  • Salaries and wages: 27.2% compared to 26.0% and 26.7% in 1Q23. 2Q23 primarily reflected higher minimum wage in many states where RCI clubs operate as well as higher labor costs relating to the newly acquired clubs.
  • SG&A: 30.8% compared to 28.9% and 32.5% in 1Q23. The year-over-year increase reflected FY23 acquisitions that have yet to be fully optimized. The sequential decline reflected the absence of year-end audit expenses in 2Q23.
  • Depreciation and amortization: 5.3% compared to 4.5% and 4.7% in 1Q23. 2Q23 reflected $0.4 million in accelerated one-time, non-cash amortization of Grange food stall leases.
  • Other charges (gains), net: Charges of $3.8 million compared to $7 thousand and a $0.7 million gain in 1Q23. 2Q23 included $3.1 million legal settlement accrual and $0.7 million non-cash impairment charge.
  • Operating margin: 18.8% compared to 26.8% and 24.2% in 1Q23 (non-GAAP of 26.6% compared to 26.9% and 25.6% in 1Q23).
  • Interest expense: 5.1% compared to 4.5% and 5.3% in 1Q23. 2Q23 included the cost of $35.5 million in new debt associated with the mid-March Baby Dolls-Chicas Locas acquisition.
  • Income tax expense: $2.1 million compared to $3.4 million and $3.0 million in 1Q23. The effective tax rate was 21.8% compared to 23.4% and 22.8% in 1Q23.
  • Weighted average shares outstanding: Decreased 2.4% year-over-year due to prior period repurchases. They increased 0.4% sequentially due to 200,000 restricted shares of RCI common stock valued at $16.0 million used in the Baby Dolls-Chicas Locas acquisition.
  • Debt: $245.8 million at 3/31/23 compared to $211.2 million at 12/31/22. The increase primarily reflected $35.5 million in financing for the 5-club Baby Dolls-Chicas Locas acquisition, partially offset by regular paydowns of other debt.

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, (e) settlement of lawsuits, and (f) stock-based compensation. 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) gains or losses on sale of businesses and assets, (d) gains or losses on insurance, (e) unrealized gains or losses on equity securities, (f) settlement of lawsuits, (g) gain on debt extinguishment, (h) stock-based compensation, and (i) the income tax effect of the above-described adjustments. Included in the income tax effect of the above adjustments is the net effect of the non-GAAP provision for income taxes, calculated at 22.3% and 21.8% effective tax rate of the pre-tax non-GAAP income before taxes for the six months ended March 31, 2023 and 2022, 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.
  • 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, (h) settlement of lawsuits, (i) gain on debt extinguishment, and (j) stock-based compensation. 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 our unleveraged performance return on our investments. Adjusted EBITDA is also the target benchmark for our acquisitions of nightclubs.
  • We also use certain 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) (Twitter: @RCIHHinc)

With more than 60 locations, RCI Hospitality Holdings, Inc., through its subsidiaries, is the country's leading company in adult nightclubs and sports bars/restaurants. See all our brands at 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, including, but not limited to, the risks and uncertainties associated with (i) operating and managing an adult entertainment or restaurant 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 or restaurant 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, 2022, 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]

1 See our April 11, 2023 news release on 2Q23 sales for more details.

 

RCI HOSPITALITY HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share, number of shares and percentage data)


















For the Three Months Ended


For the Six Months Ended


March 31, 2023


March 31, 2022


March 31, 2023


March 31, 2022


Amount


% of
Revenue


Amount


% of
Revenue


Amount


% of
Revenue


Amount


% of
Revenue

Revenues
















Sales of alcoholic beverages

$       30,136


42.1 %


$       27,335


42.9 %


$       59,786


42.3 %


$       53,766


42.8 %

Sales of food and merchandise

11,005


15.4 %


11,160


17.5 %


21,352


15.1 %


22,054


17.6 %

Service revenues

25,690


35.9 %


21,501


33.8 %


51,253


36.2 %


42,377


33.8 %

Other

4,686


6.6 %


3,696


5.8 %


9,094


6.4 %


7,331


5.8 %

Total revenues

71,517


100.0 %


63,692


100.0 %


141,485


100.0 %


125,528


100.0 %

Operating expenses
















Cost of goods sold
















Alcoholic beverages sold

5,365


17.8 %


4,896


17.9 %


10,739


18.0 %


9,730


18.1 %

Food and merchandise sold

3,737


34.0 %


3,840


34.4 %


7,323


34.3 %


7,797


35.4 %

Service and other

16


0.1 %


24


0.1 %


65


0.1 %


124


0.2 %

Total cost of goods sold (exclusive of items shown below)

9,118


12.7 %


8,760


13.8 %


18,127


12.8 %


17,651


14.1 %

Salaries and wages

19,428


27.2 %


16,530


26.0 %


38,104


26.9 %


33,035


26.3 %

Selling, general and administrative

22,026


30.8 %


18,437


28.9 %


44,758


31.6 %


36,923


29.4 %

Depreciation and amortization

3,760


5.3 %


2,877


4.5 %


7,067


5.0 %


5,071


4.0 %

Other charges (gains), net

3,758


5.3 %


7


0.0 %


3,104


2.2 %


(144)


-0.1 %

Total operating expenses

58,090


81.2 %


46,611


73.2 %


111,160


78.6 %


92,536


73.7 %

Income from operations

13,427


18.8 %


17,081


26.8 %


30,325


21.4 %


32,992


26.3 %

Other income (expenses)
















Interest expense

(3,677)


-5.1 %


(2,864)


-4.5 %


(7,364)


-5.2 %


(5,468)


-4.4 %

Interest income

90


0.1 %


112


0.2 %


181


0.1 %


218


0.2 %

Non-operating gains, net

-


0.0 %


-


0.0 %


-


0.0 %


84


0.1 %

Income before income taxes

9,840


13.8 %


14,329


22.5 %


23,142


16.4 %


27,826


22.2 %

Income tax expense

2,147


3.0 %


3,356


5.3 %


5,178


3.7 %


6,289


5.0 %

Net income

7,693


10.8 %


10,973


17.2 %


17,964


12.7 %


21,537


17.2 %

Net loss (income) attributable to noncontrolling interests

39


0.1 %


(21)


0.0 %


6


0.0 %


(10)


0.0 %

Net income attributable to RCIHH common shareholders

$         7,732


10.8 %


$       10,952


17.2 %


$       17,970


12.7 %


$       21,527


17.1 %

















Earnings per share
















Basic and diluted

$            0.83




$            1.15




$            1.94




$            2.28



















Weighted average shares outstanding
















Basic and diluted

9,265,781




9,489,085




9,247,824




9,447,854



















Dividends per share

$            0.06




$            0.05




$            0.11




$            0.09



 

 

RCI HOSPITALITY HOLDINGS, INC.

NON-GAAP FINANCIAL MEASURES

(in thousands, except per share and percentage data)










For the Three Months Ended


For the Six Months Ended


March 31,


March 31,


March 31,


March 31,


2023


2022


2023


2022

Reconciliation of GAAP net income to Adjusted EBITDA








Net income attributable to RCIHH common stockholders

$        7,732


$       10,952


$       17,970


$       21,527

Income tax expense 

2,147


3,356


5,178


6,289

Interest expense, net

3,587


2,752


7,183


5,250

Settlement of lawsuits

3,120


385


3,120


577

Impairment of assets

662


-


662


-

Loss (gain) on sale of businesses and assets

3


(58)


(587)


(400)

Gain on debt extinguishment

-


-


-


(85)

Unrealized loss on equity securities

-


-


-


1

Gain on insurance

(27)


(320)


(91)


(321)

Stock-based compensation 

706


-


1,647


-

Depreciation and amortization

3,760


2,877


7,067


5,071

Adjusted EBITDA

$     21,690


$       19,944


$       42,149


$       37,909









Reconciliation of GAAP net income  to non-GAAP net income








Net income attributable to RCIHH common stockholders

$        7,732


$       10,952


$       17,970


$       21,527

Amortization of intangibles

1,109


49


1,804


99

Settlement of lawsuits

3,120


385


3,120


577

Impairment of assets

662


-


662


-

Loss (gain) on sale of businesses and assets

3


(58)


(587)


(400)

Gain on debt extinguishment

-


-


-


(85)

Unrealized loss on equity securities

-


-


-


1

Gain on insurance

(27)


(320)


(91)


(321)

Stock-based compensation 

706


-


1,647


-

Net income tax effect

(1,246)


291


(1,446)


253

Non-GAAP net income

$     12,059


$       11,299


$       23,079


$       21,651









Reconciliation of GAAP diluted earnings per share to non-GAAP diluted earnings per share








Diluted shares

9,265,781


9,489,085


9,247,824


9,447,854

GAAP diluted earnings per share

$          0.83


$            1.15


$            1.94


$            2.28

Amortization of intangibles

0.12


0.01


0.20


0.01

Settlement of lawsuits

0.34


0.04


0.34


0.06

Impairment of assets

0.07


-


0.07


-

Loss (gain) on sale of businesses and assets

0.00


(0.01)


(0.06)


(0.04)

Gain on debt extinguishment

-


-


-


(0.01)

Unrealized loss on equity securities

-


-


-


0.00

Gain on insurance

(0.00)


(0.03)


(0.01)


(0.03)

Stock-based compensation 

0.08


-


0.18


-

Net income tax effect

(0.13)


0.03


(0.16)


0.03

Non-GAAP diluted earnings per share

$          1.30


$            1.19


$            2.50


$            2.29









Reconciliation of GAAP operating income to non-GAAP operating income








Income from operations

$     13,427


$       17,081


$       30,325


$       32,992

Amortization of intangibles

1,109


49


1,804


99

Settlement of lawsuits

3,120


385


3,120


577

Impairment of assets

662


-


662


-

Loss (gain) on sale of businesses and assets

3


(58)


(587)


(400)

Gain on insurance

(27)


(320)


(91)


(321)

Stock-based compensation 

706


-


1,647


-

Non-GAAP operating income

$     19,000


$       17,137


$       36,880


$       32,947









Reconciliation of GAAP operating margin to non-GAAP operating margin








GAAP operating margin

18.8 %


26.8 %


21.4 %


26.3 %

Amortization of intangibles

1.6 %


0.1 %


1.3 %


0.1 %

Settlement of lawsuits

4.4 %


0.6 %


2.2 %


0.5 %

Impairment of assets

0.9 %


0.0 %


0.5 %


0.0 %

Loss (gain) on sale of businesses and assets

0.0 %


-0.1 %


-0.4 %


-0.3 %

Gain on insurance

0.0 %


-0.5 %


-0.1 %


-0.3 %

Stock-based compensation 

1.0 %


0.0 %


1.2 %


0.0 %

Non-GAAP operating margin

26.6 %


26.9 %


26.1 %


26.2 %









Reconciliation of net cash provided by operating activities to free cash flow








Net cash provided by operating activities

$     16,789


$       11,597


$       31,684


$       27,861

Less: Maintenance capital expenditures

2,021


518


3,885


1,516

Free cash flow

$     14,768


$       11,079


$       27,799


$       26,345

 

RCI HOSPITALITY HOLDINGS, INC.

SEGMENT INFORMATION

(in thousands)










For the Three Months Ended


For the Six Months Ended


March 31,


March 31,


March 31,


March 31,


2023


2022


2023


2022

Revenues








Nightclubs

$  57,031


$  48,174


$  113,356


$    94,955

Bombshells

14,315


15,333


27,746


30,104

Other

171


185


383


469


$  71,517


$  63,692


$  141,485


$  125,528









Income (loss) from operations








Nightclubs

$  17,995


$  19,126


$    40,735


$    37,862

Bombshells

1,775


3,468


3,622


6,270

Other

(168)


(34)


(353)


(77)

Corporate

(6,175)


(5,479)


(13,679)


(11,063)


$  13,427


$  17,081


$    30,325


$    32,992

 

 

RCI HOSPITALITY HOLDINGS, INC.

NON-GAAP SEGMENT INFORMATION

($ in thousands)






















For the Three Months Ended March 31, 2023


For the Three Months Ended March 31, 2022


Nightclubs


Bombshells


Other


Corporate


Total


Nightclubs


Bombshells


Other


Corporate


Total

Income (loss) from operations

$        17,995


$            1,775


$    (168)


$       (6,175)


$     13,427


$        19,126


$            3,468


$      (34)


$       (5,479)


$     17,081

Amortization of intangibles

628


417


60


4


1,109


47


1


-


1


49

Settlement of lawsuits

3,117


3


-


-


3,120


277


-


-


108


385

Impairment of assets

662


-


-


-


662


-


-


-


-


-

Loss (gain) on sale of businesses and assets

(12)


16


-


(1)


3


(125)


4


-


63


(58)

Gain on insurance

-


-


-


(27)


(27)


(320)


-


-


-


(320)

Stock-based compensation 

-


-


-


706


706


-


-


-


-


-

Non-GAAP operating income (loss)

$        22,390


$            2,211


$    (108)


$       (5,493)


$     19,000


$        19,005


$            3,473


$      (34)


$       (5,307)


$     17,137





















GAAP operating margin

31.6 %


12.4 %


-98.2 %


-8.6 %


18.8 %


39.7 %


22.6 %


-18.4 %


-8.6 %


26.8 %

Non-GAAP operating margin

39.3 %


15.4 %


-63.2 %


-7.7 %


26.6 %


39.5 %


22.7 %


-18.4 %


-8.3 %


26.9 %










































For the Six Months Ended March 31, 2023


For the Six Months Ended March 31, 2022


Nightclubs


Bombshells


Other


Corporate


Total


Nightclubs


Bombshells


Other


Corporate


Total

Income (loss) from operations

$        40,735


$            3,622


$    (353)


$     (13,679)


$     30,325


$        37,862


$            6,270


$      (77)


$     (11,063)


$     32,992

Amortization of intangibles

1,256


419


121


8


1,804


94


4


-


1


99

Settlement of lawsuits

3,117


3


-


-


3,120


454


10


-


113


577

Impairment of assets

662


-


-


-


662


-


-


-


-


-

Loss (gain) on sale of businesses and assets

(581)


16


-


(22)


(587)


(80)


17


-


(337)


(400)

Gain on insurance

(48)


-


-


(43)


(91)


(321)


-


-


-


(321)

Stock-based compensation 

-


-


-


1,647


1,647


-


-


-


-


-

Non-GAAP operating income (loss)

$        45,141


$            4,060


$    (232)


$     (12,089)


$     36,880


$        38,009


$            6,301


$      (77)


$     (11,286)


$     32,947





















GAAP operating margin

35.9 %


13.1 %


-92.2 %


-9.7 %


21.4 %


39.9 %


20.8 %


-16.4 %


-8.8 %


26.3 %

Non-GAAP operating margin

39.8 %


14.6 %


-60.6 %


-8.5 %


26.1 %


40.0 %


20.9 %


-16.4 %


-9.0 %


26.2 %

 

 

RCI HOSPITALITY HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)










For the Three Months Ended


For the Six Months Ended


March 31, 2023


March 31, 2022


March 31, 2023


March 31, 2022

CASH FLOWS FROM OPERATING ACTIVITIES








Net income

$           7,693


$        10,973


$        17,964


$        21,537

Adjustments to reconcile net income to net cash








provided by operating activities:








Depreciation and amortization

3,760


2,877


7,067


5,071

Stock-based compensation

706


-


1,647


-

Gain on sale of businesses and assets

(3)


(185)


(689)


(708)

Impairment of assets

662


0


662


0

Unrealized loss on equity securities

-


-


-


1

Amortization of debt discount and issuance costs

147


85


291


136

Gain on debt extinguishment

-


-


-


(83)

Noncash lease expense

744


609


1,463


1,238

Gain on insurance

(27)


(321)


(91)


(321)

Doubtful accounts expense on notes receivable

-


36


-


53

Changes in operating assets and liabilities:








Accounts receivable

(739)


(279)


708


1,065

Inventories

173


169


79


(276)

Prepaid expenses, other current assets and other assets

1,503


1,159


(5,705)


(5,360)

Accounts payable, accrued and other liabilities

2,170


(3,526)


8,288


5,508

Net cash provided by operating activities

16,789


11,597


31,684


27,861

CASH FLOWS FROM INVESTING ACTIVITIES








Proceeds from sale of businesses and assets

26


2,107


2,810


2,910

Proceeds from insurance

27


300


91


485

Proceeds from notes receivable

58


48


113


82

Payments for property and equipment and intangible assets

(8,337)


(4,140)


(20,890)


(13,990)

Acquisition of businesses, net of cash acquired

(26,200)


-


(30,200)


(39,302)

Net cash used in investing activities

(34,426)


(1,685)


(48,076)


(49,815)

CASH FLOWS FROM FINANCING ACTIVITIES








Proceeds from debt obligations

10,095


18,740


11,595


35,742

Payments on debt obligations

(3,120)


(4,802)


(6,481)


(7,290)

Purchase of treasury stock

-


(2,845)


(98)


(2,845)

Payment of dividends

(553)


(474)


(1,015)


(854)

Payment of loan origination costs

(109)


(418)


(205)


(418)

Share in return of investment by noncontrolling partner

-


-


(600)


-

Net cash provided by financing activities

6,313


10,201


3,196


24,335

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

(11,324)


20,113


(13,196)


2,381

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD

34,108


17,954


35,980


35,686

CASH AND CASH EQUIVALENTS AT END OF PERIOD

$        22,784


$        38,067


$        22,784


$        38,067

 

 

RCI HOSPITALITY HOLDINGS, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands)








March 31,


September 30,


March 31,


2023


2022


2022

ASSETS






Current assets






Cash and cash equivalents

$    22,784


$       35,980


$    38,067

Accounts receivable, net

6,755


8,510


6,262

Current portion of notes receivable

239


230


292

Inventories

4,571


3,893


3,361

Prepaid expenses and other current assets

6,870


1,499


6,880

Assets held for sale

-


1,049


6,126

Total current assets

41,219


51,161


60,988

Property and equipment, net

295,861


224,615


203,434

Operating lease right-of-use assets, net

37,244


37,048


36,180

Notes receivable, net of current portion

4,569


4,691


5,411

Goodwill

84,051


67,767


54,484

Intangibles, net

156,331


144,049


125,284

Other assets

1,856


1,407


1,771

Total assets

$  621,131


$     530,738


$  487,552







LIABILITIES AND EQUITY






Current liabilities






Accounts payable

$      7,743


$         5,482


$      6,255

Accrued liabilities

20,958


11,328


15,576

Current portion of debt, net

21,016


11,896


11,177

Current portion of operating lease liabilities

2,951


2,795


2,306

Total current liabilities

52,668


31,501


35,314

Deferred tax liability, net

30,936


30,562


22,040

Debt, net of current portion and debt discount and issuance costs

224,751


190,567


166,903

Operating lease liabilities, net of current portion

36,429


36,001


35,517

Other long-term liabilities

383


349


355

Total liabilities

345,167


288,980


260,129







Commitments and contingencies












Equity






Preferred stock

-


-


-

Common stock

94


92


94

Additional paid-in capital

85,082


67,227


77,553

Retained earnings

190,905


173,950


150,366

Total RCIHH stockholders' equity

276,081


241,269


228,013

Noncontrolling interests

(117)


489


(590)

Total equity

275,964


241,758


227,423

Total liabilities and equity

$  621,131


$     530,738


$  487,552

 

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SOURCE RCI Hospitality Holdings, Inc.