RCI Reports 4Q24 & FY24 Results, Launches 5-Year Capital Allocation Plan, Hosts 4:30 PM ET X Spaces Call Today

News provided by

RCI Hospitality Holdings, Inc.

Dec 16, 2024, 16:05 ET

HOUSTON, Dec. 16, 2024 /PRNewswire/ -- RCI Hospitality Holdings, Inc. (Nasdaq: RICK) today reported results for the fiscal 2024 fourth quarter and year ended September 30, 2024. The company also filed its Form 10-K today and announced details of its "Back to Basics" Five-Year Capital Allocation Plan.

Summary Financials (in millions except EPS)

4Q24

4Q23

FY24

FY23

Total revenues

$73.2

$75.3

$295.6

$293.8

EPS

$0.03

$0.23

$0.33

$3.13

Non-GAAP EPS1

$1.63

$1.11

$4.72

$4.90

Impairments and other charges, net

$10.1

$9.9

$36.6

$15.6

Net cash provided by operating activities

$15.7

$12.1

$55.9

$59.1

Free cash flow1

$13.2

$11.1

$48.4

$53.2

Net income attributable to RCIHH common stockholders

$0.2

$2.2

$3.0

$29.2

Adjusted EBITDA1

$17.9

$20.2

$72.6

$85.0

Weighted average shares used in computing EPS – basic and diluted

9.01

9.42

9.25

9.34

1 See "Non-GAAP Financial Measures" below

4Q24 Summary (Comparisons are to the year-ago period unless indicated otherwise)

Eric Langan, President and CEO, said: "Nightclubs same-store sales increased for the second quarter in a row, the first time since the first half of FY23, but total company sales declined due to a hurricane and fire, resulting in a lower EPS. However, non-GAAP EPS, net cash provided by operating activities, and free cash flow all increased. We ended FY24 with 8.955 million shares outstanding, down 4.7% year over year, and have continued to buy back shares in the market."

"Back to Basics" FY25-29 Capital Allocation Plan

Mr. Langan continued: "RCI has grown significantly since we initiated our Capital Allocation Strategy at year-end FY15. Revenue has more than doubled, from $135 million to $296 million, a CAGR of 9%. More importantly, free cash flow has more than tripled, from $15 million to $48 million, a CAGR of 14%, while our share count fell by 13%. We are proud of this achievement and thank all employees, entertainers, and partners who made this possible."

"Looking ahead, we plan to build on this track record through a 'Back-to-Basics' strategy. Operationally, this means focusing on our Nightclub business and improving Bombshells. For capital allocation, this means focusing on club acquisitions and returning more capital to shareholders, mainly through buybacks."

Operational

Priorities

Capital Allocation

Priorities (% of FCF)

FY29

Financial Targets

Focus on Existing Nightclubs

Nightclub Acquisitions: 50%

(includes debt repayment)

Total Revenues: $400M

Improve Bombshells

Free Cash Flow: $75M

Acquire New Nightclubs

Share Buybacks & Dividends: 50%

Shares Outstanding: 7.5M

X-Spaces Conference Call at 4:30 PM ET Today

4Q24 Results (Comparisons are to the year-ago period unless indicated otherwise)

Nightclubs segment: Revenues of $60.6 million decreased by 0.5%. Sales reflected 2.2% same-store sales growth, which was negatively impacted by 10 closure days at three Houston area clubs due to the July hurricane. Sales also reflected three new and reformatted clubs, the temporary closing of two clubs, and the transition of two clubs to new formats and/or hours.2

By type of revenue, alcoholic beverages increased by 0.3%; food, merchandise and other increased by 0.9%; and service decreased by 1.7%. The differing growth rates primarily reflected higher alcohol and food, and lower service sales from clubs acquired last year.

The quarter included total impairments and other charges of $6.9 million compared to $8.9 million, resulting in operating income of $13.1 million (21.5% of segment revenues) compared to $12.1 million (19.8%). Non-GAAP operating income was $20.5 million (33.8% of segment revenues) compared to $21.6 million (35.4%). The difference in non-GAAP operating margin reflected minimum wage increases that took effect in July and September 2024 in various locations.

Bombshells segment: Revenues of $11.9 million declined 12.1%. Sales reflected a 16.2% SSS decline, which was negatively impacted by 26 closure days at five Houston area locations due to the July hurricane. New sales from the Stafford location, which opened in November 2023, partially offset the early September 2024 divestiture of the San Antonio location.2

The quarter included total impairments and other charges of $3.2 million compared to $0.2 million, resulting in an operating loss of $2.5 million (-21.1% of segment revenues) compared to income of $1.2 million (8.7%). Non-GAAP operating income was $0.7 million (5.9% of segment revenues) compared to $1.4 million (10.4%). The difference in non-GAAP operating margin reflects lower SSS and weather related closures.

Corporate segment: Expenses totaled $7.1 million (9.7% of total revenues) compared to $6.8 million (9.0%). Non-GAAP expenses totaled $6.6 million (9.0% of total revenues) compared to $6.3 million (8.4%).

Impairments and other charges, net of $10.1 million within consolidated operations mainly included impairment of $7.0 million related to nine clubs and $5.5 million related to six Bombshells and the food hall, and a $2.3 million net gain from the elimination of debt from the sale of Bombshells San Antonio.

Income tax was a benefit of $0.8 million compared to $0.6 million. The effective tax rate was a benefit of 15.7% in FY24 compared to an expense of 19.0% in FY23.

Weighted average shares outstanding of 9.01 million decreased 4.4% due to share buybacks partially offset by shares issued in the 2Q23 Baby Dolls-Chicas Locas acquisition.

Share Repurchases: In 4Q24, RCI repurchased 174,790 common shares for $7.8 million ($44.81 average per share), resulting in 8,955,000 shares of common stock outstanding and $21.0 million in remaining purchase authorization. For all of FY24, RCI repurchased 442,639 shares for $20.6 million ($46.55 average per share).

Debt was $238.2 million at September 30, 2024 compared to $245.4 million at June 30, 2024 and $239.8 million at September 30, 2023. The June-September 2024 decline primarily reflected elimination of Bombshells San Antonio debt and scheduled pay downs.

2 See our October 8, 2024, news release on 4Q24 sales for more details

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) settlement of lawsuits, (f) gain on debt extinguishment, (g) stock-based compensation, (h) the income tax effect of the above-described adjustments, and (i) change in 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 0.0%, 20.6%, and 22.8% effective tax rate of the pre-tax non-GAAP income before taxes for 2024, 2023, and 2022, respectively, and the GAAP income tax expense. 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, (c) net interest expense, (d) gains or losses on sale of businesses and assets, (e) gains or losses on insurance, (f) impairment of assets, (g) settlement of lawsuits, (h) gain on debt extinguishment, and (i) 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 the unleveraged performance return on our investments. Adjusted EBITDA multiple is also used as a 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, 2024, 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] 

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 Twelve Months Ended


September 30, 2024


September 30, 2023


September 30, 2024


September 30, 2023


Amount


% of Revenue


Amount


% of Revenue


Amount


% of Revenue


Amount


% of Revenue

Revenues
















Sales of alcoholic beverages

$       32,459


44.3 %


$       33,325


44.3 %


$    133,124


45.0 %


$    127,262


43.3 %

Sales of food and merchandise

11,000


15.0 %


11,149


14.8 %


44,606


15.1 %


43,906


14.9 %

Service revenues

24,504


33.5 %


25,661


34.1 %


98,455


33.3 %


103,577


35.3 %

Other

5,271


7.2 %


5,115


6.8 %


19,419


6.6 %


19,045


6.5 %

Total revenues

73,234


100.0 %


75,250


100.0 %


295,604


100.0 %


293,790


100.0 %

Operating expenses
















Cost of goods sold
















Alcoholic beverages sold

5,783


17.8 %


6,155


18.5 %


24,228


18.2 %


23,291


18.3 %

Food and merchandise sold

4,132


37.6 %


4,000


35.9 %


16,360


36.7 %


15,429


35.1 %

Service and other

286


1.0 %


191


0.6 %


397


0.3 %


282


0.2 %

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

10,201


13.9 %


10,346


13.7 %


40,985


13.9 %


39,002


13.3 %

Salaries and wages

20,878


28.5 %


20,818


27.7 %


84,177


28.5 %


79,500


27.1 %

Selling, general and administrative

24,761


33.8 %


24,463


32.5 %


99,672


33.7 %


93,024


31.7 %

Depreciation and amortization

3,757


5.1 %


4,043


5.4 %


15,395


5.2 %


15,151


5.2 %

Impairments and other charges, net

10,118


13.8 %


9,936


13.2 %


36,570


12.4 %


15,629


5.3 %

Total operating expenses

69,715


95.2 %


69,606


92.5 %


276,799


93.6 %


242,306


82.5 %

Income from operations

3,519


4.8 %


5,644


7.5 %


18,805


6.4 %


51,484


17.5 %

Other income (expenses)
















Interest expense

(4,224)


(5.8) %


(4,246)


(5.6) %


(16,679)


(5.6) %


(15,926)


(5.4) %

Interest income

162


0.2 %


120


0.2 %


482


0.2 %


388


0.1 %

Income before income taxes

(543)


(0.7) %


1,518


2.0 %


2,608


0.9 %


35,946


12.2 %

Income tax expense (benefit)

(788)


(1.1) %


(601)


(0.8) %


(410)


(0.1) %


6,846


2.3 %

Net income

245


0.3 %


2,119


2.8 %


3,018


1.0 %


29,100


9.9 %

Net loss (income) attributable to
noncontrolling interests

(1)


— %


72


0.1 %


(7)


— %


146


— %

Net income attributable to RCIHH
common shareholders

$            244


0.3 %


$         2,191


2.9 %


$         3,011


1.0 %


$       29,246


10.0 %

















Earnings per share
















Basic and diluted

$           0.03




$           0.23




$           0.33




$           3.13



















Weighted average shares used in
computing earnings per share
















Basic and diluted

9,006,014




9,417,166




9,250,245




9,335,983



RCI HOSPITALITY HOLDINGS, INC.

SEGMENT INFORMATION

(in thousands)










For the Three Months Ended


For the Twelve Months Ended


September 30, 2024


September 30, 2023


September 30, 2024


September 30, 2023

Revenues








Nightclubs

$             60,636


$             60,943


$           243,864


$           236,748

Bombshells

11,937


13,580


50,578


55,723

Other

661


727


1,162


1,319


$             73,234


$             75,250


$           295,604


$           293,790









Income (loss) from operations








Nightclubs

$             13,064


$             12,060


$             58,094


$             73,187

Bombshells

(2,517)


1,179


(10,646)


6,502

Other

58


(793)


(523)


(1,446)

Corporate

(7,086)


(6,802)


(28,120)


(26,759)


$               3,519


$               5,644


$             18,805


$             51,484

RCI HOSPITALITY HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)










For the Three Months Ended


For the Twelve Months Ended


September 30, 2024


September 30, 2023


September 30, 2024


September 30, 2023

CASH FLOWS FROM OPERATING ACTIVITIES








Net income

$                  245


$               2,119


$               3,018


$             29,100

Adjustments to reconcile net income to net cash provided by operating
activities:








Depreciation and amortization

3,757


4,043


15,395


15,151

Impairment of assets

12,553


9,336


38,517


12,629

Deferred income tax benefit

(31)


(991)


(6,450)


(1,781)

Loss (gain) on sale of businesses and assets

(2,331)


2


(2,215)


(870)

Amortization and writeoff of debt discount and issuance costs

146


162


608


615

Doubtful accounts expense on notes receivable

(22)


—


—


—

Loss (gain) on insurance

(522)


14


(522)


(77)

Noncash lease expense

662


752


2,980


2,978

Stock-based compensation

470


471


1,882


2,588

Changes in operating assets and liabilities, net of business
acquisitions:








Receivables

1,231


(3,863)


4,283


(2,383)

Inventories

(97)


98


(309)


177

Prepaid expenses, other current, and other assets

1,063


3,236


(2,421)


(366)

Accounts payable, accrued, and other liabilities

(1,473)


(3,253)


1,118


1,369

Net cash provided by operating activities

15,651


12,126


55,884


59,130

CASH FLOWS FROM INVESTING ACTIVITIES








Proceeds from sale of businesses and assets

19


1,434


1,969


4,245

Proceeds from insurance

1,367


(5)


1,367


86

Proceeds from notes receivable

70


59


249


229

Payments for property and equipment and intangible assets

(5,381)


(9,265)


(24,600)


(40,384)

Acquisition of businesses, net of cash acquired

—


—


—


(29,000)

Net cash used in investing activities

(3,925)


(7,777)


(21,015)


(64,824)

CASH FLOWS FROM FINANCING ACTIVITIES








Proceeds from debt obligations

—


—


22,657


11,595

Payments on debt obligations

(5,864)


(4,219)


(23,001)


(15,650)

Purchase of treasury stock

(7,831)


(2,125)


(20,606)


(2,223)

Payment of dividends

(628)


(566)


(2,302)


(2,146)

Payment of loan origination costs

—


—


(290)


(239)

Share in return of investment by noncontrolling partner

—


—


—


(600)

Net cash used in financing activities

(14,323)


(6,910)


(23,542)


(9,263)

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

(2,597)


(2,561)


11,327


(14,957)

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD

34,947


23,584


21,023


35,980

CASH AND CASH EQUIVALENTS AT END OF PERIOD

$             32,350


$             21,023


$             32,350


$             21,023

RCI HOSPITALITY HOLDINGS, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands)






September 30, 2024


September 30, 2023

ASSETS




Current assets




Cash and cash equivalents

$             32,350


$             21,023

Receivables, net

5,563


9,846

Current portion of notes receivable

269


249

Inventories

4,676


4,412

Prepaid expenses and other current assets

4,427


1,943

Total current assets

47,285


37,473

Property and equipment, net

280,075


282,705

Operating lease right-of-use assets, net

26,231


34,931

Notes receivable, net of current portion

4,174


4,443

Goodwill

61,911


70,772

Intangibles, net

163,461


179,145

Other assets

1,227


1,415

Total assets

$           584,364


$           610,884





LIABILITIES AND EQUITY




Current liabilities




Accounts payable

$               5,637


$               6,111

Accrued liabilities

20,280


16,051

Current portion of debt obligations, net

18,871


22,843

Current portion of operating lease liabilities

3,290


2,977

Total current liabilities

48,078


47,982

Deferred tax liability, net

22,693


29,143

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

219,326


216,908

Operating lease liabilities, net of current portion

30,759


35,175

Other long-term liabilities

398


352

Total liabilities

321,254


329,560





Commitments and contingencies








Equity




Preferred stock

—


—

Common stock

90


94

Additional paid-in capital

61,511


80,437

Retained earnings

201,759


201,050

Total RCIHH stockholders' equity

263,360


281,581

Noncontrolling interests

(250)


(257)

Total equity

263,110


281,324

Total liabilities and equity

$           584,364


$           610,884

RCI HOSPITALITY HOLDINGS, INC.

NON-GAAP FINANCIAL MEASURES

(in thousands, except per share and percentage data)










For the Three Months Ended


For the Twelve Months Ended


September 30, 2024


September 30, 2023


September 30, 2024


September 30, 2023

Reconciliation of GAAP net income to Adjusted EBITDA








Net income attributable to RCIHH common stockholders

$                 244


$              2,191


$              3,011


$            29,246

Income tax expense (benefit)

(788)


(601)


(410)


6,846

Interest expense, net

4,062


4,126


16,197


15,538

Depreciation and amortization

3,757


4,043


15,395


15,151

Impairment of assets

12,553


9,336


38,517


12,629

Settlement of lawsuits

212


576


520


3,759

Loss (gain) on sale of businesses and assets

(2,320)


10


(2,140)


(682)

Loss (gain) on insurance

(327)


14


(327)


(77)

Stock-based compensation

470


471


1,882


2,588

Adjusted EBITDA

$            17,863


$            20,166


$            72,645


$            84,998









Reconciliation of GAAP net income to non-GAAP net income








Net income attributable to RCIHH common stockholders

$                 244


$              2,191


$              3,011


$            29,246

Amortization of intangibles

597


806


2,494


3,528

Impairment of assets

12,553


9,336


38,517


12,629

Settlement of lawsuits

212


576


520


3,759

Stock-based compensation

470


471


1,882


2,588

Loss (gain) on sale of businesses and assets

(2,320)


10


(2,140)


(682)

Loss (gain) on insurance

(327)


14


(327)


(77)

Change in deferred tax asset valuation allowance

143


(176)


143


(176)

Net income tax effect

3,065


(2,810)


(410)


(5,068)

Non-GAAP net income

$            14,637


$            10,418


$            43,690


$            45,747









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








Diluted shares

9,006,014


9,417,166


9,250,245


9,335,983

GAAP diluted earnings per share

$                0.03


$                0.23


$                0.33


$                3.13

Amortization of intangibles

0.07


0.09


0.27


0.38

Impairment of assets

1.39


0.99


4.16


1.35

Settlement of lawsuits

0.02


0.06


0.06


0.40

Stock-based compensation

0.05


0.05


0.20


0.28

Loss (gain) on sale of businesses and assets

(0.26)


—


(0.23)


(0.07)

Loss (gain) on insurance

(0.04)


—


(0.04)


(0.01)

Change in deferred tax asset valuation allowance

0.02


(0.02)


0.02


(0.02)

Net income tax effect

0.34


(0.30)


(0.04)


(0.54)

Non-GAAP diluted earnings per share

$                1.63


$                1.11


$                4.72


$                4.90









Reconciliation of GAAP operating income to non-GAAP operating income








Income from operations

$              3,519


$              5,644


$            18,805


$            51,484

Amortization of intangibles

597


806


2,494


3,528

Impairment of assets

12,553


9,336


38,517


12,629

Settlement of lawsuits

212


576


520


3,759

Loss (gain) on sale of businesses and assets

(2,320)


10


(2,140)


(682)

Loss (gain) on insurance

(327)


14


(327)


(77)

Stock-based compensation

470


471


1,882


2,588

Non-GAAP operating income

$            14,704


$            16,857


$            59,751


$            73,229









Reconciliation of GAAP operating margin to non-GAAP operating margin








GAAP operating margin

4.8 %


7.5 %


6.4 %


17.5 %

Amortization of intangibles

0.8 %


1.1 %


0.8 %


1.2 %

Impairment of assets

17.1 %


12.4 %


13.0 %


4.3 %

Settlement of lawsuits

0.3 %


0.8 %


0.2 %


1.3 %

Loss (gain) on sale of businesses and assets

(3.2) %


— %


(0.7) %


(0.2) %

Loss (gain) on insurance

(0.4) %


— %


(0.1) %


— %

Stock-based compensation

0.6 %


0.6 %


0.6 %


0.9 %

Non-GAAP operating margin

20.1 %


22.4 %


20.2 %


24.9 %









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








Net cash provided by operating activities

$            15,651


$            12,126


$            55,884


$            59,130

Less: Maintenance capital expenditures

2,483


1,005


7,463


5,954

Free cash flow

$            13,168


$            11,121


$            48,421


$            53,176

RCI HOSPITALITY HOLDINGS, INC.

NON-GAAP SEGMENT INFORMATION

($ in thousands)






















For the Three Months Ended September 30, 2024


For the Three Months Ended September 30, 2023


Nightclubs


Bombshells


Other


Corporate


Total


Nightclubs


Bombshells


Other


Corporate


Total

Income (loss) from operations

$    13,064


$    (2,517)


$           58


$    (7,086)


$      3,519


$    12,060


$      1,179


$       (793)


$    (6,802)


$      5,644

Amortization of intangibles

576


11


—


10


597


617


30


155


4


806

Impairment of assets

7,039


5,514


—


—


12,553


8,522


—


814


—


9,336

Settlement of lawsuits

157


25


—


30


212


378


198


—


—


576

Stock-based compensation

—


—


—


470


470


—


—


—


471


471

Loss (gain) on sale of businesses and assets

14


(2,332)


—


(2)


(2,320)


—


11


—


(1)


10

Loss (gain) on insurance

(327)


—


—


—


(327)


—


—


—


14


14

Non-GAAP operating income (loss)

$    20,523


$         701


$           58


$    (6,578)


$    14,704


$    21,577


$      1,418


$         176


$    (6,314)


$    16,857





















GAAP operating margin

21.5 %


(21.1) %


8.8 %


(9.7) %


4.8 %


19.8 %


8.7 %


(109.1) %


(9.0) %


7.5 %

Non-GAAP operating margin

33.8 %


5.9 %


8.8 %


(9.0) %


20.1 %


35.4 %


10.4 %


24.2 %


(8.4) %


22.4 %






















For the Twelve Months Ended September 30, 2024


For the Twelve Months Ended September 30, 2023


Nightclubs


Bombshells


Other


Corporate


Total


Nightclubs


Bombshells


Other


Corporate


Total

Income (loss) from operations

$    58,094


$  (10,646)


$       (523)


$  (28,120)


$    18,805


$    73,187


$      6,502


$    (1,446)


$  (26,759)


$    51,484

Amortization of intangibles

2,334


137


—


23


2,494


2,497


530


484


17


3,528

Impairment of assets

22,691


15,826


—


—


38,517


11,815


—


814


—


12,629

Settlement of lawsuits

465


25


—


30


520


3,552


207


—


—


3,759

Stock-based compensation

—


—


—


1,882


1,882


—


—


—


2,588


2,588

Loss (gain) on sale of businesses and assets

(56)


(2,322)


—


238


(2,140)


(734)


77


—


(25)


(682)

Gain on insurance

(327)


—


—


—


(327)


(48)


—


—


(29)


(77)

Non-GAAP operating income (loss)

$    83,201


$      3,020


$       (523)


$  (25,947)


$    59,751


$    90,269


$      7,316


$       (148)


$  (24,208)


$    73,229





















GAAP operating margin

23.8 %


(21.0) %


(45.0) %


(9.5) %


6.4 %


30.9 %


11.7 %


(109.6) %


(9.1) %


17.5 %

Non-GAAP operating margin

34.1 %


6.0 %


(45.0) %


(8.8) %


20.2 %


38.1 %


13.1 %


(11.2) %


(8.2) %


24.9 %

SOURCE RCI Hospitality Holdings, Inc.