FALSE000093541900009354192024-08-082024-08-08

United States
Securities and Exchange Commission
Washington, D.C. 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 8, 2024
RCI HOSPITALITY HOLDINGS, INC.
(Exact Name of Registrant as Specified in Its Charter)
Texas001-1399276-0458229
(State or Other Jurisdiction
of Incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)
10737 Cutten Road
Houston, Texas 77066
(Address of Principal Executive Offices, Including Zip Code)
(281) 397-6730
(Issuer’s Telephone Number, Including Area Code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
oWritten communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
oSoliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a -12)
oPre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d -2(b))
oPre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e -4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common stock, $0.01 par valueRICKThe Nasdaq Global Market
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o


ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On August 8, 2024, we issued a press release announcing results for the fiscal quarter ended June 30, 2024, and the filing of our quarterly report on Form 10-Q for that quarter. Also on August 8, 2024, we will hold a conference call to discuss these results and related matters. A copy of the press release is furnished as Exhibit 99.1 to this current report on Form 8-K.
This information shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
 
(d) Exhibits
 
Exhibit Number Description
   
99.1 
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
2

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
RCI HOSPITALITY HOLDINGS, INC.
Date: August 8, 2024By:/s/ Eric Langan
Eric Langan
President and Chief Executive Officer
3

image_0a.jpg
RCI Reports 3Q24 Results; X Spaces Call at 4:30 PM ET Today
HOUSTON—August 8, 2024—RCI Hospitality Holdings, Inc. (Nasdaq: RICK) today reported results for the fiscal 2024 third quarter ended June 30, 2024. The company also filed its Form 10-Q today.
Summary Financials (in millions except EPS)3Q243Q239M249M23
Total revenues$76.2$77.1$222.4$218.5
EPS$(0.56)$0.96$0.30$2.91
Non-GAAP EPS1
$1.35$1.30$3.11$3.80
Other charges, net$18.3$2.6$26.5$5.7
Net cash provided by operating activities
$15.8$15.3$40.2$47.0
Free cash flow1
$13.8$14.3$35.3$42.1
Net income (loss) attributable to RCIHH common stockholders$(5.2)$9.1$2.8$27.1
Adjusted EBITDA1
$20.1$22.7$54.8$64.8
Weighted average shares used in computing EPS – basic and diluted9.28 9.43 9.33 9.31 
1 See “Non-GAAP Financial Measures” below
Share Repurchases
In 3Q24, RCI repurchased 202,630 common shares for $9.2 million (average $45.27 per share). As of August 5, 2024, RCI repurchased an additional 133,244 common shares for $6.0 million (average $44.86 per share), resulting in 8,996,546 shares of common stock outstanding and $22.9 million in remaining purchase authorization.
Eric Langan, President and CEO, said:
"The third quarter reflected the first full quarter of our Back to Basics approach to business and our Capital Allocation Strategy. We are taking aggressive action to increase revenues, reduce costs, and expand margins, concentrating on our club business and buying back stock, all with the goal of increasing free cash flow per share.
"Nightclubs achieved record revenues, increasing year over year, on a same-store basis, and from last quarter. While operating margin was negatively impacted by non-cash impairments, it increased sequentially on a non-GAAP basis.
"Bombshells revenues are now up two quarters in a row. While operating margin was similarly affected by non-cash impairments, it expanded sequentially on a non-GAAP basis. These improvements reflected the new marketing and cost cutting moves implemented mid-February.
"Finally, I’m pleased to report that as of last week we have reached our short-term buyback objective of reducing shares outstanding to less than 9 million. As part of that effort, we bought back a total of 700,000 shares in the open market since February 2022, reducing our share count by the same number used in our big October 2021 and March 2023 acquisitions, and we did it at a 22% discount to the average share price used in those transactions.2
"Looking ahead, we are laser focused on opening our reformatted and new clubs and Bombshells currently under development; rebuilding Baby Dolls Fort Worth as quickly and efficiently as possible; reviewing all operating units to ensure they meet our financial objectives; selling non-income producing real estate to free up more cash and/or reduce debt; and using our cash flow to facilitate the buyback of more shares and acquisition of clubs."

1

X-Spaces Conference Call at 4:30 PM ET Today
Hosted by RCI President & CEO Eric Langan, CFO Bradley Chhay, and Mark Moran of Equity Animal
Call link: https://x.com/RicksCEO/status/1821258346877612301 (X log in required)
Presentation link: https://www.rcihospitality.com/investor-relations/
To ask questions during Q&A: Participants must join the X Space using a mobile device
To listen only: Participants can access the X Space from a computer
There will be no other types of telephone or webcast access
3Q24 Results (Comparisons are to the year-ago period unless indicated otherwise)
Nightclubs segment: Revenues of $62.8 million increased by 0.6%, primarily reflecting 1.7% same-store sales growth and two new and reformatted clubs, partially offset by the temporary closing of clubs being reformatted to liquor from BYOB and severe weather in Texas and South Florida.3 By type of revenue, alcoholic beverages increased by 4.9%; food, merchandise and other increased by 5.1%; and service decreased by 5.3%. The differing growth rates primarily reflected a higher alcohol and lower service sales mix from clubs acquired over the past year and a half.
Non-cash impairment totaled $7.6 million compared to $2.6 million, resulting in operating income and margin of $13.6 million and 21.7% of revenues compared to $20.4 million and 32.7%, respectively. Non-GAAP operating income and margin was $21.9 million and 34.9% of revenues compared to $23.6 million and 37.7%, respectively.
Compared to last quarter, revenues increased by 5.8%, and operating margin was 21.7% compared to 18.6%. On a non-GAAP basis, operating margin was 34.9% compared to 33.4%. The non-GAAP margin increase reflected higher sales, including service, and reduced costs.
Bombshells segment: Revenues of $13.1 million declined 8.7%, primarily reflecting a 16.2% decline in SSS and temporary closings due to severe weather in Texas, partially offset by three locations not in SSS (Bombshells in San Antonio and Stafford in Texas and Cherry Creek Food Hall & Brewery in Greenwood Village, CO, with its Bombshells Kitchen).3
Non-cash impairment totaled $10.3 million, resulting in an operating loss and margin of $8.9 million and (67.8)% of revenues compared to income of $1.7 million and 11.8%, respectively. Non-GAAP operating income and margin was $1.4 million and 10.8% of revenues compared to $1.8 million and 12.8%, respectively. The decline in profitability primarily reflected lower SSS.
Compared to last quarter, revenues increased 2.9%, and operating margin was (67.8)% of revenues compared to 5.5%. On a non-GAAP basis, operating margin was 10.8% compared to 5.9%. The revenue and non-GAAP margin increases reflect the first full quarter of changes initiated mid-February 2024.
Corporate segment: Expenses totaled $7.2 million or 9.4% of total revenues compared to $6.3 million and 8.1%, respectively. Non-GAAP expenses totaled $6.4 million or 8.4% of total revenues compared to $5.8 million or 7.5%, respectively. The expense increase primarily reflected additional corporate level management, accounting and professional services due to recently acquired clubs, and new projects. Compared to 2Q24, expenses increased 5.4% and expense margin was flat at 9.4%, and on a non-GAAP basis, 8.4% compared to 8.8%.
Other charges included $7.6 million in goodwill, SOB and leasehold improvements impairment related to six clubs and $10.3 million in operating lease right-of-use asset and leasehold improvements impairment related to five Bombshells.
Income taxes were a benefit of $1.4 million compared to an expense of $2.3 million. The effective income tax rate was 21.5% compared to 20.1%.
Weighted average shares outstanding of 9.28 million decreased 1.6% due to share buybacks partially offset by shares issued in the 2Q23 Baby Dolls-Chicas Locas acquisition.
Debt was $245.4 million at June 30, 2024 compared to $231.9 million at March 31, 2024. The increase reflected a previously announced $20 million bank loan, partially offset by scheduled pay downs.
2 A total of 700,000 shares valued at $46.0 million were used in our big October 2021 (500,000 shares @ $60) and March 2023 acquisitions (200,000 shares @ $80). The first 700,000 shares bought back in the open market since February 2022 after the 2021 acquisition were acquired for $35.9 million (average $51.31 per share). This represents a discount of $10.1 million or 22% of the value of shares used in the two acquisitions.
3 See our July 11, 2024, news release on 3Q24 sales for more details
2

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) settlement of lawsuits, (d) gains or losses on sale of businesses and assets, (e) gains or losses on insurance, 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 or loss attributable to RCIHH common stockholders and diluted earnings per share. Adjustment items are: (a) amortization of intangibles, (b) impairment of assets, (c) settlement of lawsuits, (d) gains or losses on sale of businesses and assets, (e) gains or losses on insurance, (f) stock-based compensation, and (g) 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 11.7% and 21.6% effective tax rate of the pre-tax non-GAAP income before taxes for the nine months ended June 30, 2024 and 2023, 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 or loss attributable to RCIHH common stockholders: (a) depreciation and amortization, (b) impairment of assets, (c) income tax expense (benefit), (d) net interest expense, (e) settlement of lawsuits, (f) gains or losses on sale of businesses and assets, (g) gains or losses on insurance, and (h) 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) (X: @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, 2023, as well as its other filings
3

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 gary.fishman@anreder.com and steven.anreder@anreder.com
4

RCI HOSPITALITY HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share, number of shares, and percentage data)
For the Three Months EndedFor the Nine Months Ended
June 30, 2024June 30, 2023June 30, 2024June 30, 2023
Amount% of RevenueAmount% of RevenueAmount% of RevenueAmount% of Revenue
Revenues
Sales of alcoholic beverages$34,442 45.2 %$34,151 44.3 %$100,665 45.3 %$93,937 43.0 %
Sales of food and merchandise11,736 15.4 %11,405 14.8 %33,606 15.1 %32,757 15.0 %
Service revenues25,268 33.2 %26,663 34.6 %73,951 33.3 %77,916 35.7 %
Other4,734 6.2 %4,836 6.3 %14,148 6.4 %13,930 6.4 %
Total revenues76,180 100.0 %77,055 100.0 %222,370 100.0 %218,540 100.0 %
Operating expenses
Cost of goods sold
Alcoholic beverages sold6,273 18.2 %6,397 18.7 %18,445 18.3 %17,136 18.2 %
Food and merchandise sold4,197 35.8 %4,106 36.0 %12,228 36.4 %11,429 34.9 %
Service and other36 0.1 %26 0.1 %111 0.1 %91 0.1 %
Total cost of goods sold (exclusive of items shown below)10,506 13.8 %10,529 13.7 %30,784 13.8 %28,656 13.1 %
Salaries and wages20,992 27.6 %20,578 26.7 %63,299 28.5 %58,682 26.9 %
Selling, general and administrative25,057 32.9 %23,803 30.9 %74,911 33.7 %68,561 31.4 %
Depreciation and amortization3,901 5.1 %4,041 5.2 %11,638 5.2 %11,108 5.1 %
Other charges, net18,260 24.0 %2,589 3.4 %26,452 11.9 %5,693 2.6 %
Total operating expenses78,716 103.3 %61,540 79.9 %207,084 93.1 %172,700 79.0 %
Income (loss) from operations(2,536)(3.3)%15,515 20.1 %15,286 6.9 %45,840 21.0 %
Other income (expenses)
Interest expense(4,240)(5.6)%(4,316)(5.6)%(12,455)(5.6)%(11,680)(5.3)%
Interest income130 0.2 %87 0.1 %320 0.1 %268 0.1 %
Income (loss) before income taxes(6,646)(8.7)%11,286 14.6 %3,151 1.4 %34,428 15.8 %
Income tax expense (benefit)(1,426)(1.9)%2,269 2.9 %378 0.2 %7,447 3.4 %
Net income (loss)(5,220)(6.9)%9,017 11.7 %2,773 1.2 %26,981 12.3 %
Net loss (income) attributable to noncontrolling interests(13)— %68 0.1 %(6)— %74 — %
Net income (loss) attributable to RCIHH common shareholders$(5,233)(6.9)%$9,085 11.8 %$2,767 1.2 %$27,055 12.4 %
Earnings (loss) per share
Basic and diluted
$(0.56)$0.96 $0.30 $2.91 
Weighted average shares used in computing earnings (loss) per share
Basic and diluted9,278,921 9,430,225 9,332,249 9,308,624 

5

RCI HOSPITALITY HOLDINGS, INC.
SEGMENT INFORMATION
(in thousands)
For the Three Months EndedFor the Nine Months Ended
June 30, 2024June 30, 2023June 30, 2024June 30, 2023
Revenues
Nightclubs$62,823 $62,449 $183,228 $175,805 
Bombshells13,139 14,397 38,641 42,143 
Other218 209 501 592 
$76,180 $77,055 $222,370 $218,540 
Income (loss) from operations
Nightclubs$13,640 $20,392 $45,030 $61,127 
Bombshells(8,914)1,701 (8,129)5,323 
Other(108)(300)(581)(653)
Corporate(7,154)(6,278)(21,034)(19,957)
$(2,536)$15,515 $15,286 $45,840 

6

RCI HOSPITALITY HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
For the Three Months EndedFor the Nine Months Ended
June 30, 2024June 30, 2023June 30, 2024June 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)$(5,220)$9,017 $2,773 $26,981 
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization3,901 4,041 11,638 11,108 
Impairment of assets17,931 2,631 25,964 3,293 
Deferred income tax benefit(4,508)(790)(6,419)(790)
Loss (gain) on sale of businesses and assets79 (183)116 (872)
Amortization and writeoff of debt discount and issuance costs150 162 462 453 
Doubtful accounts expense on notes receivable— — 22 — 
Gain on insurance— — — (91)
Noncash lease expense783 763 2,318 2,226 
Stock-based compensation471 470 1,412 2,117 
Changes in operating assets and liabilities, net of business acquisitions:
Accounts receivable1,985 772 3,052 1,480 
Inventories(70)— (212)79 
Prepaid expenses, other current, and other assets2,936 2,103 (3,484)(3,602)
Accounts payable, accrued, and other liabilities(2,674)(3,666)2,591 4,622 
Net cash provided by operating activities15,764 15,320 40,233 47,004 
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of businesses and assets1,950 1 1,950 2,811 
Proceeds from insurance— — — 91 
Proceeds from notes receivable63 57 179 170 
Payments for property and equipment and intangible assets(6,417)(9,029)(19,219)(31,119)
Acquisition of businesses, net of cash acquired— — — (29,000)
Net cash used in investing activities(4,404)(8,971)(17,090)(57,047)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from debt obligations20,000 — 22,657 11,595 
Payments on debt obligations(6,507)(4,950)(17,137)(11,431)
Purchase of treasury stock(9,173)— (12,775)(98)
Payment of dividends(552)(565)(1,674)(1,580)
Payment of loan origination costs(154)(34)(290)(239)
Share in return of investment by noncontrolling partner— — — (600)
Net cash provided by (used in) financing activities3,614 (5,549)(9,219)(2,353)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS14,974 800 13,924 (12,396)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD19,973 22,784 21,023 35,980 
CASH AND CASH EQUIVALENTS AT END OF PERIOD$34,947 $23,584 $34,947 $23,584 
7

RCI HOSPITALITY HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
June 30, 2024September 30, 2023June 30, 2023
ASSETS
Current assets
Cash and cash equivalents$34,947 $21,023 $23,584 
Accounts receivable, net6,794 9,846 7,433 
Current portion of notes receivable263 249 244 
Inventories4,624 4,412 4,571 
Prepaid expenses and other current assets5,457 1,943 5,028 
Total current assets52,085 37,473 40,860 
Property and equipment, net283,834 282,705 277,530 
Operating lease right-of-use assets, net26,880 34,931 35,683 
Notes receivable, net of current portion4,228 4,443 4,507 
Goodwill61,911 70,772 78,684 
Intangibles, net170,709 179,145 181,262 
Other assets1,342 1,415 1,581 
Total assets$600,989 $610,884 $620,107 
LIABILITIES AND EQUITY
Current liabilities
Accounts payable$5,519 $6,111 $7,762 
Accrued liabilities20,155 16,051 17,732 
Current portion of debt obligations, net28,889 22,843 23,824 
Current portion of operating lease liabilities3,161 2,977 2,923 
Total current liabilities57,724 47,982 52,241 
Deferred tax liability, net22,724 29,143 30,146 
Debt, net of current portion and debt discount and issuance costs216,511 216,908 219,999 
Operating lease liabilities, net of current portion32,779 35,175 35,941 
Other long-term liabilities318 352 355 
Total liabilities330,056 329,560 338,682 
Commitments and contingencies
Equity
Preferred stock— — — 
Common stock91 94 94 
Additional paid-in capital68,950 80,437 82,091 
Retained earnings202,143 201,050 199,425 
Total RCIHH stockholders' equity271,184 281,581 281,610 
Noncontrolling interests(251)(257)(185)
Total equity270,933 281,324 281,425 
Total liabilities and equity$600,989 $610,884 $620,107 


8

RCI HOSPITALITY HOLDINGS, INC.
NON-GAAP FINANCIAL MEASURES
(in thousands, except per share and percentage data)
For the Three Months EndedFor the Nine Months Ended
June 30, 2024June 30, 2023June 30, 2024June 30, 2023
Reconciliation of GAAP net income (loss) to Adjusted EBITDA
Net income (loss) attributable to RCIHH common stockholders$(5,233)$9,085 $2,767 $27,055 
Income tax expense (benefit)(1,426)2,269 378 7,447 
Interest expense, net4,110 4,229 12,135 11,412 
Depreciation and amortization3,901 4,041 11,638 11,108 
Impairment of assets17,931 2,631 25,964 3,293 
Settlement of lawsuits141 63 308 3,183 
Loss (gain) on sale of businesses and assets188 (105)180 (692)
Gain on insurance— — — (91)
Stock-based compensation471 470 1,412 2,117 
Adjusted EBITDA$20,083 $22,683 $54,782 $64,832 
Reconciliation of GAAP net income (loss) to non-GAAP net income
Net income (loss) attributable to RCIHH common stockholders$(5,233)$9,085 $2,767 $27,055 
Amortization of intangibles598 918 1,897 2,722 
Impairment of assets17,931 2,631 25,964 3,293 
Settlement of lawsuits141 63 308 3,183 
Stock-based compensation471 470 1,412 2,117 
Loss (gain) on sale of businesses and assets188 (105)180 (692)
Gain on insurance— — — (91)
Net income tax effect(1,554)(812)(3,475)(2,258)
Non-GAAP net income$12,542 $12,250 $29,053 $35,329 
Reconciliation of GAAP diluted earnings (loss) per share to non-GAAP diluted earnings per share
Diluted shares9,278,921 9,430,225 9,332,249 9,308,624 
GAAP diluted earnings (loss) per share$(0.56)$0.96 $0.30 $2.91 
Amortization of intangibles0.06 0.10 0.20 0.29 
Impairment of assets1.93 0.28 2.78 0.35 
Settlement of lawsuits0.02 0.01 0.03 0.34 
Stock-based compensation0.05 0.05 0.15 0.23 
Loss (gain) on sale of businesses and assets0.02 (0.01)0.02 (0.07)
Gain on insurance0.00 0.00 0.00 (0.01)
Net income tax effect(0.17)(0.09)(0.37)(0.24)
Non-GAAP diluted earnings per share$1.35 $1.30 $3.11 $3.80 
Reconciliation of GAAP operating income (loss) to non-GAAP operating income
Income (loss) from operations$(2,536)$15,515 $15,286 $45,840 
Amortization of intangibles598 918 1,897 2,722 
Impairment of assets17,931 2,631 25,964 3,293 
Settlement of lawsuits141 63 308 3,183 
Loss (gain) on sale of businesses and assets188 (105)180 (692)
Gain on insurance— — — (91)
Stock-based compensation471 470 1,412 2,117 
Non-GAAP operating income$16,793 $19,492 $45,047 $56,372 
9

Reconciliation of GAAP operating margin to non-GAAP operating margin
Income (loss) from operations(3.3)%20.1 %6.9 %21.0 %
Amortization of intangibles0.8 %1.2 %0.9 %1.2 %
Impairment of assets23.5 %3.4 %11.7 %1.5 %
Settlement of lawsuits0.2 %0.1 %0.1 %1.5 %
Loss (gain) on sale of businesses and assets0.2 %(0.1)%0.1 %(0.3)%
Gain on insurance0.0 %0.0 %0.0 %0.0 %
Stock-based compensation0.6 %0.6 %0.6 %1.0 %
Non-GAAP operating margin22.0 %25.3 %20.3 %25.8 %
Reconciliation of net cash provided by operating activities to free cash flow
Net cash provided by operating activities$15,764 $15,320 $40,233 $47,004 
Less: Maintenance capital expenditures1,986 1,064 4,980 4,949 
Free cash flow$13,778 $14,256 $35,253 $42,055 
10

RCI HOSPITALITY HOLDINGS, INC.
NON-GAAP SEGMENT INFORMATION
($ in thousands)
For the Three Months Ended June 30, 2024For the Three Months Ended June 30, 2023
NightclubsBombshellsOtherCorporateTotalNightclubsBombshellsOtherCorporateTotal
Income (loss) from operations$13,640 $(8,914)$(108)$(7,154)$(2,536)$20,392 $1,701 $(300)$(6,278)$15,515 
Amortization of intangibles578 16 — 4 598 624 81 208 5 918 
Impairment of assets7,619 10,312 — — 17,931 2,631 — — — 2,631 
Settlement of lawsuits141 — — — 141 57 6 — — 63 
Stock-based compensation— — — 471 471 — — — 470 470 
Loss (gain) on sale of businesses and assets(76)6 — 258 188 (153)50 — (2)(105)
Gain on insurance— — — — — — — — — — 
Non-GAAP operating income (loss)$21,902 $1,420 $(108)$(6,421)$16,793 $23,551 $1,838 $(92)$(5,805)$19,492 
GAAP operating margin21.7 %(67.8)%(49.5)%(9.4)%(3.3)%32.7 %11.8 %(143.5)%(8.1)%20.1 %
Non-GAAP operating margin34.9 %10.8 %(49.5)%(8.4)%22.0 %37.7 %12.8 %(44.0)%(7.5)%25.3 %
For the Nine Months Ended June 30, 2024For the Nine Months Ended June 30, 2023
NightclubsBombshellsOtherCorporateTotalNightclubsBombshellsOtherCorporateTotal
Income (loss) from operations$45,030 $(8,129)$(581)$(21,034)$15,286 $61,127 $5,323 $(653)$(19,957)$45,840 
Amortization of intangibles1,758 126 — 13 1,897 1,880 500 329 13 2,722 
Impairment of assets15,652 10,312 — — 25,964 3,293 — — — 3,293 
Settlement of lawsuits308 — — — 308 3,174 9 — — 3,183 
Stock-based compensation— — — 1,412 1,412 — — — 2,117 2,117 
Loss (gain) on sale of businesses and assets(70)10 — 240 180 (734)66 — (24)(692)
Gain on insurance— — — — — (48)— — (43)(91)
Non-GAAP operating income (loss)$62,678 $2,319 $(581)$(19,369)$45,047 $68,692 $5,898 $(324)$(17,894)$56,372 
GAAP operating margin24.6 %(21.0)%(116.0)%(9.5)%6.9 %34.8 %12.6 %(110.3)%(9.1)%21.0 %
Non-GAAP operating margin34.2 %6.0 %(116.0)%(8.7)%20.3 %39.1 %14.0 %(54.7)%(8.2)%25.8 %
11
v3.24.2.u1
Cover
Aug. 08, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Aug. 08, 2024
Entity Registrant Name RCI HOSPITALITY HOLDINGS, INC.
Entity Incorporation, State or Country Code TX
Entity File Number 001-13992
Entity Tax Identification Number 76-0458229
Entity Address, Address Line One 10737 Cutten Road
Entity Address, City or Town Houston
Entity Address, State or Province TX
Entity Address, Postal Zip Code 77066
City Area Code 281
Local Phone Number 397-6730
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common stock, $0.01 par value
Trading Symbol RICK
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Amendment Flag false
Entity Central Index Key 0000935419
RCI Hospitality (NASDAQ:RICK)
Historical Stock Chart
From Oct 2024 to Nov 2024 Click Here for more RCI Hospitality Charts.
RCI Hospitality (NASDAQ:RICK)
Historical Stock Chart
From Nov 2023 to Nov 2024 Click Here for more RCI Hospitality Charts.