RCI Hospitality (NASDAQ:RICK) Posts Earnings Results

RCI Hospitality (NASDAQ:RICK) released its quarterly earnings data on Thursday. The restaurant operator reported $0.90 EPS for the quarter, FiscalAI reports. RCI Hospitality had a negative return on equity of 1.73% and a negative net margin of 1.48%.The business had revenue of $73.94 million during the quarter.

Here are the key takeaways from RCI Hospitality’s conference call:

• Third-quarter profitability improved: Revenue rose 4% to $73.9 million, net income attributable to shareholders increased 57% to $6.4 million, and adjusted EBITDA grew 10% to $16.9 million.
• Bombshells showed a significant turnaround: Revenue increased 25.4% to $10.8 million, while operating income rose to $759,000 from $67,000 as management shifted the concept toward a higher-margin, bar-oriented model and improved late-night traffic.
• RCI accelerated debt reduction: The company paid down $8.6 million of debt during the quarter and expects nearly $25 million of debt reduction over the recent period, while refinancing some obligations to lower interest costs and extend maturities.
• Management expects sports-driven traffic to support results through the fall and winter, citing football, basketball, hockey, baseball and planned game-watching promotions; it also indicated Bombshells’ July performance was improving.
• Share repurchases were temporarily paused while the company prioritized debt repayment and acquisition preparation, although management hopes to resume buybacks around the start of the next fiscal year. Commercial real estate market conditions are also slowing planned property sales, and management declined to discuss the details of the New York legal case beyond reiterating the not-guilty pleas.

RCI Hospitality Trading Up 7.0%

Shares of RICK traded up $1.83 during trading hours on Friday, reaching $28.07. The stock had a trading volume of 101,071 shares, compared to its average volume of 35,514. The company has a market cap of $214.45 million, a P/E ratio of -68.46 and a beta of 0.76. RCI Hospitality has a 52 week low of $20.76 and a 52 week high of $38.25. The company has a quick ratio of 0.49, a current ratio of 0.55 and a debt-to-equity ratio of 0.93. The firm has a 50-day moving average of $26.48 and a 200 day moving average of $24.78.

RCI Hospitality Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Monday, June 15th were given a $0.08 dividend. The ex-dividend date was Monday, June 15th. This represents a $0.32 dividend on an annualized basis and a dividend yield of 1.1%. RCI Hospitality’s dividend payout ratio is currently -41.03%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. BNP Paribas Financial Markets raised its position in shares of RCI Hospitality by 62.0% during the second quarter. BNP Paribas Financial Markets now owns 847 shares of the restaurant operator’s stock worth $32,000 after purchasing an additional 324 shares during the period. State of Alaska Department of Revenue acquired a new position in shares of RCI Hospitality in the 4th quarter valued at approximately $54,000. State of Wyoming bought a new stake in RCI Hospitality during the 4th quarter worth approximately $67,000. Copeland Capital Management LLC increased its stake in RCI Hospitality by 122.0% during the 1st quarter. Copeland Capital Management LLC now owns 3,305 shares of the restaurant operator’s stock worth $75,000 after purchasing an additional 1,816 shares in the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. acquired a new stake in RCI Hospitality during the 3rd quarter worth approximately $115,000. 53.82% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Separately, Weiss Ratings restated a “sell (d)” rating on shares of RCI Hospitality in a research report on Wednesday, June 3rd. One equities research analyst has rated the stock with a Sell rating, Based on data from MarketBeat, the stock presently has an average rating of “Sell”.

RCI Hospitality Company Profile

RCI Hospitality Holdings, Inc operates as a diversified hospitality and entertainment company focused on the ownership and operation of adult nightclubs and themed sports bars throughout the United States and select international markets. The company’s U.S. Nightclub segment includes venues branded as Rick’s Cabaret, Club Onyx and various other upscale adult entertainment clubs, offering private dance experiences, VIP services and live performances. Its Restaurant & Bar segment operates Bombshells, a brunch-themed sports bar chain featuring chef-driven menus, craft cocktails and game-day viewing in a military-inspired setting.

In addition to its brick-and-mortar venues, RCI Hospitality deploys proprietary digital platforms for talent recruitment, training and scheduling, helping to streamline operations and drive customer engagement.