RCI Reports 3Q24 Club & Restaurant Sales & Other Updates
Rhea-AI Summary
RCI Hospitality Holdings (RICK) reported its fiscal third-quarter 2024 sales. Nightclubs saw a 0.7% YoY increase to $62.4 million, driven by a 1.7% same-store sales growth and new club openings. Bombshells experienced an 8.9% YoY decline to $13.1 million due to a 16.2% same-store sales decrease. Total combined sales dipped by 1.1% YoY, totaling $75.5 million. Sequentially, Nightclubs and Bombshells reported sales increases of 5.9% and 2.7%, respectively. RCI also announced a $25 million increase in its share buyback program, the withdrawal of its Colorado casino license applications, and an update on post-Hurricane Beryl operations. CEO Eric Langan emphasized the company's focus on core businesses, cost-cutting, and optimizing locations. RCI opened two new locations in FY24 and is working on five more openings. Full 3Q24 financial results are expected by August 8, 2024.
Positive
- Nightclubs sales increased by 0.7% YoY, totaling $62.4 million.
- Sequential Nightclubs sales grew by 5.9%.
- Positive same-store sales growth of 1.7% in Nightclubs.
- Sequential increase of 2.7% in Bombshells sales.
- RCI's Board authorized an additional $25 million for share buybacks.
Negative
- Bombshells sales declined 8.9% YoY due to a 16.2% drop in same-store sales.
- Total combined sales decreased by 1.1% YoY to $75.5 million.
News Market Reaction – RICK
In the trading session that priced this news, RICK gained 14.59%, reflecting a significant positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Nightclubs: Total sales of
Bombshells: Total sales of
Buyback Authorization: RCI's Board of Directors has authorized increasing the amount available under the company's share repurchase program by
Casino Withdrawal: Applications to operate casinos were formally withdrawn from the Colorado Division of Gaming. Plans are moving ahead in
Beryl Update: After Hurricane Beryl made landfall in the greater
Eric Langan, President & CEO of RCI, commented: "As we said on our last conference call, we are going 'back to basics,' focusing on the core tenets of our capital allocation strategy, to concentrate on our core businesses, generate higher sales, cut costs, optimize underperforming locations, finish projects as fast and efficiently as possible, and buy back shares."
"To that end, we're pleased to report our first quarterly increase in Nightclubs same-store sales since 2Q23 and the initial success of our current club reformatting program. We're also pleased to see Bombshells total sales increase sequentially. This reflects changes initiated mid-February. Clubs and restaurants also benefited from a strong pro sports playoff line-up, partially offset by temporary closures due to severe weather in
"To date in FY24, we have opened two new locations—Bombshells Stafford (TX) in November 2023 and PT's Centerfold in
Club & Restaurant Sales ($ in Millions)
3Q24 | Total Sales | Total Sales vs. 3Q23 | Same-Store Sales vs. 3Q23 |
Nightclubs | +0.7 % | +1.7 % | |
Bombshells | -8.9 % | -16.2 % | |
Combined | -1.1 % | -1.5 % |
9M24 | Total Sales | Total Sales vs. 9M23 | Same-Store Sales vs. 9M23 |
Nightclubs | +4.3 % | -3.6 % | |
Bombshells | -8.0 % | -19.0 % | |
Combined | +1.9 % | -6.5 % |
Notes
- Revenues from non-core operations, such as third-party rents, and revenues from RCI's Other segment, are not included in Nightclubs and Bombshells sales above.
- All references to "RCI Hospitality Holdings, Inc.," "company," "we," "our," and similar terms refer to RCI and/or its subsidiaries, unless the context indicates otherwise.
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 of 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 with the
Media & Investor Contacts
Gary Fishman and Steven Anreder at 212-532-3232 or gary.fishman@anreder.com and steven.anreder@anreder.com
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SOURCE RCI Hospitality Holdings, Inc.