RCI Hospitality (RICK) Q2 2025 Earnings Call May 12, 2025 04:30 PM ET Speaker0 Greetings, and welcome to RCI Hospitality Holdings second quarter twenty twenty five earnings conference call. You can find the company's presentation on RCI's website. Go to the Investor Relations section, and all the links are at the top of the page. Please turn with me to Slide two of our presentation. I'm Mark Moran of Equity Animal, and I'll be hosting our call today. I'm coming to you from Washington, D. C. Eric Lange, Pres ...

Building a portfolio of well-managed, high cash-flowing nightclubs and sports-bar restaurants NASDAQ: RICK | 2Q25 Conference Call | May 12, 2025 | www.rcihospitality.com | @RCIHHinc Today's Speakers Eric Langan President & CEO RCI Hospitality Holdings, Inc. @RicksCEO Bradley Chhay Chief Financial Officer RCI Hospitality Holdings, Inc. @BradleyChhay Mark Moran CEO Equity Animal @itsmarkmoran 2 X Spaces Instructions Or 3 • Log in to: X (formerly Twitter) • Select this X Space: https://x.com/i/spaces/1djGXVvkX ...

Financial Results Announcement - RCI Hospitality Holdings, Inc. announced sales at nightclubs and restaurants for the second fiscal quarter ended March 31, 2025[4] - The press release detailing the financial results was issued on April 8, 2025[4] Company Information - The company is listed on the Nasdaq Global Market under the trading symbol RICK[2]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Washington, D.C. 20549 FORM 10-Q Commission File Number: 001-13992 RCI HOSPITALITY HOLDINGS, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) In ...

RCI Hospitality (RICK) shares ended the last trading session 7.8% higher at $39.06. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 18.8% loss over the past four weeks.Following President Trump's announcement to suspend U.S. tariffs on most countries for 90 days, RCI Hospitality shares soared, reflecting renewed investor optimism.This adult nightclub chain is expected to post quarterly earnings of $0.75 per share i ...

Core Viewpoint - RCI Hospitality (RICK) has shown a downtrend recently, losing 6.1% over the past week, but a hammer chart pattern suggests a potential trend reversal as buying interest may be emerging to counteract selling pressure [1][2]. Technical Analysis - The hammer chart pattern indicates a possible bottoming out, suggesting that selling pressure may be subsiding, which is a bullish signal for the stock [2][4]. - A hammer pattern forms when there is a small difference between opening and closing prices, with a long lower wick, indicating that the stock has found support after hitting a new low during a downtrend [3][4]. - The occurrence of a hammer pattern at the bottom of a downtrend signals that bears may have lost control, indicating a potential trend reversal [4]. Fundamental Analysis - There is a strong consensus among Wall Street analysts to raise earnings estimates for RICK, which enhances the stock's prospects for a trend reversal [2][6]. - The consensus EPS estimate for RICK has increased by 14.3% over the last 30 days, indicating analysts' agreement on the company's potential for better earnings than previously predicted [7]. - RICK holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks, which typically outperform the market [8].

Core Viewpoint - RCI Hospitality (RICK) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [3][5]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [3]. Company Performance and Outlook - The upgrade for RCI Hospitality reflects an improvement in the company's underlying business, suggesting that investor sentiment may drive the stock price higher [4]. - For the fiscal year ending September 2025, RCI Hospitality is projected to earn $4.55 per share, representing a 1278.8% increase from the previous year [7]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [6]. - RCI Hospitality's upgrade places it in the top 5% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [9].

Building a portfolio of well-managed, high cash-flowing nightclubs and sports-bar restaurants NASDAQ: RICK | 1Q25 Conference Call | February 10, 2025 | www.rcihospitality.com | @RCIHHinc Today's Speakers Eric Langan President & CEO RCI Hospitality Holdings, Inc. @RicksCEO Bradley Chhay Chief Financial Officer RCI Hospitality Holdings, Inc. @BradleyChhay Mark Moran CEO Equity Animal @itsmarkmoran 2 X Spaces Instructions Or 3 • Log in to: X (formerly Twitter) • Select this X Space: https://x.com/i/spaces/1zqK ...

Financial Data and Key Metrics Changes - In Q1 2025, total sales for the Nightclub segment increased, while Bombshells segment sales declined due to the closure of underperforming locations [9][10] - Net income attributed to common shareholders was $9.0 million, with GAAP EPS at $1.01 and non-GAAP EPS at $0.80 [13][14] - Net cash provided by operating activities was $13.3 million, and free cash flow was $12.1 million, nearly matching year-ago levels [10][16] - Adjusted EBITDA was reported at $15.7 million [16] Business Line Data and Key Metrics Changes - Nightclub revenues increased by $0.7 million or 1.1%, driven by a 3.7% increase in same-store sales and the addition of three new or reformatted clubs [17][19] - Bombshells revenues declined by $3.1 million or 24.7%, attributed to the closure of five underperforming locations and a 7.5% decline in same-store sales [20][21] - Operating income for Nightclubs was $20.9 million with a margin of 33.8%, while Bombshells saw an operating income increase to $1.9 million with a margin of 20.6% [19][21] Market Data and Key Metrics Changes - The company reported no weather-related closures for Nightclubs and Bombshells during Q1, but faced 14 days of closures for Nightclubs and seven days for Bombshells in the second quarter [22][23] - The weighted average interest rate on debt was 6.65%, slightly up from 6.61% a year ago [24] Company Strategy and Development Direction - The company aims to allocate 40% of capital to club acquisitions and 60% to share buybacks, dividends, and debt repayment, targeting a 10% to 15% annual growth in free cash flow per share [26][27] - The focus remains on improving the performance of existing Bombshells locations, with a near-term target of 15% operating margins and returning to same-store sales growth [29] - The company anticipates generating over $250 million in free cash over the next five years and plans to buy back a significant amount of stock [30][31] Management's Comments on Operating Environment and Future Outlook - Management noted that while the two largest contributors to revenue were down, many midsize clubs showed improvement, indicating a shift towards increasing customer volume [50][51] - The company is confident in its pricing power to maintain margins and aims for a steady same-store sales growth of around 3% as part of its five-year plan [52][53] - There are plans to address approximately $23 million to $28 million in non-income producing assets to enhance cash flow [53][54] Other Important Information - The company sold or closed four underperforming locations in the Bombshells segment during the first quarter, totaling five closures since September 2024 [10][11] - The acquisition of the Flight Club in Detroit for $8 million is expected to generate about $2 million in annually adjusted EBITDA [11][12] Q&A Session All Questions and Answers Question: Is the $1.7 million for the self-insurance reserve a cash expense or non-cash? - Management clarified that it is a one-time non-cash expense related to self-insurance setup [35][36] Question: Can the EBITDA margins for the Detroit club improve over time? - Management indicated it is too early to tell but expressed optimism for better performance as operations stabilize [40][41] Question: Are there any residual cash outlays for the closed Bombshells locations? - Management stated there are no current cash outlays, although there is a lawsuit from a landlord [44][45] Question: What is the outlook for the operating environment in early 2025? - Management noted mixed performance, with larger clubs down slightly but midsize clubs performing better, indicating a focus on increasing customer volume [49][50]

Company Performance - RCI Hospitality reported quarterly earnings of $1.01 per share, exceeding the Zacks Consensus Estimate of $0.52 per share, and up from $0.77 per share a year ago, representing an earnings surprise of 94.23% [1] - The company posted revenues of $71.48 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.51%, but down from $73.91 million year-over-year [2] - Over the last four quarters, RCI Hospitality has surpassed consensus revenue estimates four times, but has only beaten EPS estimates once [2] Stock Outlook - RCI Hospitality shares have declined approximately 9.6% since the beginning of the year, contrasting with the S&P 500's gain of 2.5% [3] - The current consensus EPS estimate for the upcoming quarter is $0.72 on revenues of $71.73 million, and for the current fiscal year, it is $3.98 on revenues of $302.52 million [7] - The estimate revisions trend for RCI Hospitality is currently unfavorable, resulting in a Zacks Rank 5 (Strong Sell), indicating expected underperformance in the near future [6] Industry Context - The Leisure and Recreation Services industry, to which RCI Hospitality belongs, is currently ranked in the top 32% of over 250 Zacks industries, suggesting a favorable industry outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact RCI Hospitality's stock performance [5]