PR Newswire
HOUSTON, Feb. 9, 2017
HOUSTON, Feb. 9, 2017 /PRNewswire/ -- RCI Hospitality Holdings, Inc. (Nasdaq: RICK) today announced results for the first fiscal quarter ended December 31, 2016.
1Q17 vs. 1Q16
Share Buybacks & Cash Dividend
Conference Call this Afternoon
CEO Comment
"We're pleased with our 1Q17 results," said Eric Langan, President & CEO. "FCF was up 33.1% year over year in 1Q17, keeping us on track to achieve our initial target of $18 million in FY17.
"FCF was aided by a 19.1% increase in net income on a 0.8% increase in total revenues. GAAP EPS was up 20.0% and non-GAAP EPS, which removes certain items, increased 3.3%.
"Key to our profitability was expanded margins in the Nightclubs, Bombshells and Other segments, in part due to previously disclosed 4Q16 dispositions of underperforming clubs, a restaurant, and our energy drink business.
"While total sales increased slightly, same store sales grew in RCI's two core segments—Nightclubs at 2.8% and Bombshells at 9.6%—reflecting the continued momentum that began in the second half of FY16.
"Nightclubs experienced strong results from units in Minneapolis with the return of the Vikings downtown to their new stadium, and from clubs in New York City and parts of Texas. Higher margin service revenues rose 6.6% year over year, the fourth quarter in a row of improvement.
"Customers continue to be attracted to our Bombshells military themed restaurant/sports bar concept, with our uniformed Bombshells Girls and popular local DJs, where you can have a great time and great food, and hang out with friends or family.
"Occupancy costs, one of our largest fixed expenses, declined as a percentage of revenues due to the 2Q16 acquisition of the Rick's Cabaret New York real estate. The effective tax rate declined as the result of tax planning.
"With our improved profitability, we made some investments that were expensed in order to build a stronger foundation for future growth. This included the ongoing transition to our new ERP system, marketing to support a new club and Bombshells franchising, and accounting and tax experts to advise in tax planning strategies in order to minimize our tax liabilities.
"We continued to buy back shares, enabling us to reduce basic and diluted share counts year over year by 5.1% and 7.7%, respectively. During and subsequent to the quarter, we paid down all remaining convertible debt, including the last $400,000 of a seller-financed note, leaving no more dilutive securities under our current capital structure.
"Our FY17 plan remains the same. Following through with what we started in FY16, we will continue our approach to capital allocation, as evidenced by our ongoing share repurchases. First half sales should continue to benefit from the positive trend developed in the second half of FY16.
"The second half of FY17 should grow from the planned opening of three new Bombshells units and the sale of our first franchises. Margins and FCF generation should expand from our more profitable portfolio of clubs and restaurants, and reduced interest expense as a percent of revenues."
1Q17 Analysis (compares 1Q17 to 1Q16, unless otherwise noted)
Total Revenues
Operating Income & Margin
Nightclubs Segment
Bombshells Segment
Other Metrics
Meet Management Tonight
Eric Langan, President & CEO, invites investors to meet management, tour one of the company's top clubs, and its new Hoops Cabaret & Sports Bar.
*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 items that management believes are not representative of the ongoing business operations of the Company, but are included in 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:
Notes
About RCI Hospitality Holdings, Inc. (Nasdaq: RICK)
With 41 units, RCI Hospitality Holdings, Inc., through its subsidiaries, is the country's leading company in gentlemen's clubs and sports bars/restaurants. Clubs in New York City, Miami, Philadelphia, Charlotte, Dallas/Ft. Worth, Houston, Minneapolis and other cities operate under brand names, such as "Rick's Cabaret," "XTC," "Club Onyx," "Vivid Cabaret," "Jaguars" and "Tootsie's Cabaret." Sports bars/restaurants operate under the brand name "Bombshells." Please visit http://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 in this press release, including the risks and uncertainties associated with operating and managing an adult business, the business climates in cities where it operates, the success or lack thereof in launching and building the company's businesses, risks and uncertainties related to cybersecurity, conditions relevant to real estate transactions, and numerous other factors such as laws governing the operation of adult entertainment businesses, competition and dependence on key personnel. The company has no obligation to update or revise the forward-looking statements to reflect the occurrence of future events or circumstances.
RCI HOSPITALITY HOLDINGS, INC. | ||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||
($ in thousands, except per share data) | ||||||
(unaudited) | ||||||
| | | | | | |
| | | | For the Three Months | ||
| | | | Ended December 31, | ||
| | | | 2016 | | 2015 |
Revenues | | | | | ||
| Sales of alcoholic beverages | | $ 14,375 | | $ 14,597 | |
| Sales of food and merchandise | 4,207 | | 4,334 | ||
| Service revenues | | 13,475 | | 12,641 | |
| Other | | 1,682 | | 1,903 | |
| | Total revenues | | 33,739 | | 33,475 |
Operating expenses | | | | | ||
| Cost of goods sold | | 4,881 | | 5,184 | |
| Salaries and wages | | 9,652 | | 9,357 | |
| Selling, general and administrative | 11,193 | | 10,860 | ||
| Depreciation and amortization | 1,618 | | 1,817 | ||
| Other charges | | 62 | | 540 | |
| | Total operating expenses | | 27,406 | | 27,758 |
Income from operations | | 6,333 | | 5,717 | ||
Other income (expenses) | | | | | ||
| Interest expense | | (2,015) | | (1,915) | |
| Interest income | | 37 | | 4 | |
Income before income taxes | | 4,355 | | 3,806 | ||
Income taxes | | 1,450 | | 1,367 | ||
Net income | | 2,905 | | 2,439 | ||
Less: Net income (loss) attributable to noncontrolling interests | 7 | | (113) | |||
Net income attributable to RCIHH common shareholders Werbung Mehr Nachrichten zur RCI Hospitality Holdings Aktie kostenlos abonnieren
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