HOUSTON, Dec. 13, 2016 /PRNewswire/ -- RCI Hospitality
Holdings, Inc. (Nasdaq: RICK) today announced results for the
fourth quarter and fiscal year ended September 30, 2016 and its outlook for FY17.
4Q16 vs. 4Q15
- GAAP EPS diluted of $0.04
compared to $0.05.
- 4Q16 included charges, most of which were announced in October,
to eliminate non-performing units, free up capital, and further
improve cash flow.
- Excluding these charges and other items, non-GAAP* EPS diluted
increased to $0.31 from $0.21, reflecting continued improvement in RCI's
performance.
- Total revenues of $33.0 million
compared to $32.8 million.
- Free Cash Flow (FCF)* totaled $3.8
million compared to ($2.1)
million.
FY16 vs. FY15
- GAAP EPS diluted increased to $1.10 compared to $0.90.
- Non-GAAP EPS diluted was $1.32
versus $1.35, reflecting lower
comparisons in the first half of FY16 with a rebound during the
second half.
- Total revenues were nearly level at $134.9 million compared to $135.4 million.
- FCF totaled a record $20.5
million compared to $14.9
million.
Share Buybacks & Cash Dividend
- RCI accelerated its share buyback program in FY16, taking
advantage of its strong FCF to return capital to shareholders,
investing $7.3 million to buy back
747,081 shares, reducing shares outstanding about 5%.
- RCI continued to buy back shares in October and November 2016, acquiring another 68,269 shares
for $0.818 million, reducing shares
outstanding to 9.74 million.
- As previously announced, RCI's 1Q17 $0.03 dividend will be paid December 27, 2016, to holders of record
December 12, 2016.
Conference Call this Afternoon
- A conference call to discuss these results, outlook and related
matters will be held today at 4:30 PM
ET
- Dial In: 877-407-9210 (toll free) or 201-689-8049 (domestic or
international)
- Webcast URL: http://www.investorcalendar.com/event/175483
Meet Management Tonight
Eric Langan, President & CEO,
invites investors to meet management, tour one of the company's top
clubs, and tour its new Hoops Cabaret & Sports Bar.
- When: Tuesday, December 13,
6:00 PM to 8:00 PM ET
- Where: Rick's Cabaret New York, at 50 W. 33rd Street,
New York, NY, between Fifth Avenue
and Broadway
- RSVP: With your contact information to
gary.fishman@anreder.com
CEO Comment
"We ended FY16 in the best shape we've been in, thanks to the
first full year implementation of our disciplined approach to
capital allocation," Mr. Langan said.
"We improved our cash generating ability. We restored same store
and total sales growth and expanded margins on a non-GAAP basis.
Using bank financing at conventional rates, we acquired the Rick's
Cabaret New York real estate, which, along with the acquisition of
the Tootsie's Cabaret Miami real estate in 4Q15, reduced our cost
of occupancy, one of our largest fixed costs. Tootsie's and Rick's
New York are our two largest,
revenue producing clubs.
"Ultimately, we significantly expanded free cash flow to a
record $20.5 million, which included
some tax benefits, and established a baseline run rate of about
$18 million going forward.
"We undertook the largest annual buyback in our history,
reducing shares outstanding by about 5%, to 9.8 million shares. We
also paid off $2.8 million in
convertible debt in FY16 and 1Q17, eliminating 230,000 possible new
shares and 49,000 related warrants expired. On top of that, we
initiated a $0.12 per share annual
dividend, payable $0.03 per
quarter.
"Our cash generation also enabled us to further strengthen our
balance sheet. We refinanced $14.2
million at lower average rates, changed 2017 non-realty
balloons into an amortizing note that balloons in 2022, and lowered
our interest rate going forward. In addition, all of our debt is
now amortizing, and we ended the year with $11.3 million in cash, the highest September 30th position in five
years.
"To further enhance free cash flow, we implemented new, higher
yielding models with the opening of a new nightclub, Hoops Cabaret
and Sports Bar in New York, and
our plans to build three new Bombshells in Houston. In the fourth quarter, we disposed of
all major non-performing businesses, receiving cash and notes,
freeing up capital, and turning non-profitable businesses into
interest income producing notes.
"During and subsequent to FY16, we made some selective
investments to improve our future prospects. We built and moved
into our new corporate headquarters, and will be phasing in a new
ERP system to create a highly efficient "plug and play" platform,
increasing our scalability. We also named highly experienced
Shannon Glaser to lead Bombshells
franchising. She has already begun introducing us to multi-unit
restaurant franchise operators.
"Our FY17 plan is to follow 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
benefit from the momentum developed in the second half of 2016. The
second half should grow as the new Bombshells units open and we
begin to sell our first franchises. Margins and FCF generation
should benefit from our more profitable portfolio of clubs and
restaurants and reduced interest expense as a percent of
revenues."
October 2016
Announcements
- In October 2016, RCI announced a
series of 4Q16 actions, most of which focused on eliminating all
major non-performing businesses, freeing up capital, and further
increasing free cash flow.
- These actions resulted in (i) the receipt of $8.3 million in cash and interest paying notes
and (ii) net charges in the 4Q16 income statement, totaling
$5.2 million pre-tax, most of which
were non-cash.
- This amount reflects the net effect of the previously announced
sales of two nightclubs and majority of interest in Robust; closing
of a restaurant; and settlement of lawsuits from the last of the
most serious cases remaining from the Indemnity insurance period.
It also includes impairments related to two other properties.
4Q16 Analysis
Total Revenues
- Total revenues of $33.0 million
increased 0.8% from $32.8 million in
4Q15.
- Higher margin service and beverage sales increased 1.4% and
0.7%, respectively, from last year's levels, while food and other
revenues were approximately level with 4Q15.
- This was the fourth quarter in a row where beverage sales were
up year over year, and the first quarter in FY16 where service
revenues increased after narrowing declines in each of the prior
three quarters.
Operating Income & Margin
- Income from operations was $0.9
million, or 2.8% of revenues, compared to $3.2 million, or 9.8%, in 4Q15.
- Both periods included charges, such as litigation and other
one-time settlements, impairment of assets, and gains or losses on
property sales.
- Excluding these items, non-GAAP operating income was
$6.3 million, or 19.0% of sales, up
from $5.3 million, or 16.1%, in
4Q15.
4Q16 Segment Analysis
Nightclubs
- Sales of $27.7 million were level
compared to the year ago quarter, with 38 units in operation in
both periods, although two were sold and others changed at the end
of 4Q16.
- Operating income was $5.4
million, or 19.5% of sales, compared to $4.4 million, or 16.1%, in 4Q15.
- On a non-GAAP basis, operating income was $8.4 million, or 30.2% of sales, compared to
$6.2 million, or 22.5%, in 4Q15.
Bombshells
- Sales of $4.7 million were up
10.5% compared to $4.2 million in the
year ago quarter, with five units in operation in both periods,
although the Webster unit was
closed at the end of 4Q16.
- Operating income, which includes charges for closing
Webster, was a loss of
$0.9 million, or (18.4%) of revenue,
compared to a profit of $0.3 million,
or 6.9%, in 4Q15.
- On a non-GAAP basis, operating income was $0.5 million, or 11.0% of revenue, compared to
$0.6 million, or 14.9%, in 4Q15. 4Q16
non-GAAP includes Webster's
operating losses.
Other Metrics
- Occupancy Costs: Occupancy costs, one of RCI's largest
fixed costs, which the company measures as a combination of rent
plus interest expense, declined to 8.5% of revenues in 4Q16
compared to 9.0% in 4Q15. The decline reflects significantly lower
rent due to the acquisitions of club real estate in New York City in early 2Q16 and of
Miami Gardens in 4Q15.
- Effective Tax Rate: ETR was 20.4% in FY16 compared to
36.5% in FY15. The difference was primarily due to tax credit
carryforwards and the transfer of deferred tax liabilities related
to sold subsidiaries, offset by state income taxes in 2016.
- Adjusted EBITDA & Free Cash Flow (FCF): Adjusted
EBITDA increased 25.7%, to $8.2
million in 4Q16 from $6.5
million in 4Q15. FY16 FCF of $20.5
million included approximately $2.0
million of tax benefits. RCI's initial FY17 FCF target of
$18 million is based on net cash
provided by operating activities of ~$20.5 million less maintenance capital
expenditures of ~$2.5
million.
- Balance Sheet (September 30,
2016 compared to June 30,
2016): Total stockholders' equity decreased to
$130.1 million from $133.5 million primarily due to the sale of the
Robust interest and share buybacks.
*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 some non-recurring items that 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:
- Non-GAAP Operating Income and Non-GAAP Operating Margin.
We exclude from non-GAAP operating income and non-GAAP operating
margin amortization of intangibles, gain on settlement of patron
tax case, gains and losses from asset sales, impairment of assets,
stock-based compensation charges, and litigation and other one-time
legal settlements. 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. While we
were in litigation in the patron tax case, we also included patron
taxes as an exclusion, but after settlement of the case, we no
longer exclude patron taxes from operating income.
- Non-GAAP Net Income and Non-GAAP Net Income per Diluted
Share. We exclude from non-GAAP net income and non-GAAP net
income per diluted share amortization of intangibles, gain on
settlement of patron tax case, income tax expense, impairment
charges, gain/loss on acquisition of controlling interest in
subsidiary, gains and losses from asset sales, stock-based
compensation, litigation and other one-time legal settlements, and
gain on contractual debt reductions, and include the non-GAAP
provision for current and deferred income taxes, calculated as the
tax effect at 35% effective tax rate of the pre-tax non-GAAP income
before taxes, because we believe that excluding such measures helps
management and investors better understand our operating
activities. While we were in litigation in the patron tax case, we
also included patron taxes as an exclusion, but after settlement of
the case, we no longer exclude patron taxes from net income.
- Adjusted EBITDA. We exclude from adjusted EBITDA
depreciation expense, amortization of intangibles, income tax,
interest expense, interest income, gains and losses from asset
sales, litigation and other one-time legal settlements, gain on
settlement of patron tax case, gain/loss on acquisition of
controlling interest in subsidiary, gain on contractual debt
reduction and impairment charges because we believe that adjusting
for such items helps management and investors better understand
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.
- Non-GAAP Cash Flow Measure. We believe our ability to
generate cash from operating activities is one of our fundamental
financial strengths. As a consequence, management also uses certain
non-GAAP cash flow measures such as free cash flows. Free cash flow
is derived from net cash provided by operating activities less
maintenance capital expenditures.
Notes
- Starting with 1Q16, revenues (including prior comparable
periods) are being reported net of sales taxes and other revenue
related taxes from the adoption of new revenue accounting
standards.
- Unit counts are at period end.
- All references to the "company," "we," "our," and similar terms
include RCI Hospitality Holdings, Inc. and its subsidiaries, unless
the context indicates otherwise.
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.
|
CONSOLIDATED
STATEMENTS OF INCOME
|
(in thousands, except
per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months
|
|
For The
Year
|
|
|
|
|
Ended September
30,
|
|
Ended September
30,
|
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
(Audited)
|
Revenues
|
|
|
|
|
|
|
|
|
|
Sales of alcoholic
beverages
|
|
$13,705
|
|
$13,604
|
|
$57,216
|
|
$55,829
|
|
Sales of food and
merchandise
|
|
4,343
|
|
4,372
|
|
17,900
|
|
18,713
|
|
Service
revenues
|
|
12,650
|
|
12,476
|
|
51,276
|
|
53,014
|
|
Other
|
|
2,339
|
|
2,337
|
|
8,468
|
|
7,893
|
|
|
Total
revenues
|
|
33,037
|
|
32,789
|
|
134,860
|
|
135,449
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
4,854
|
|
4,792
|
|
20,546
|
|
20,317
|
|
Salaries and
wages
|
|
9,344
|
|
9,459
|
|
37,457
|
|
37,732
|
|
Selling, general and
administrative
|
|
11,025
|
|
11,777
|
|
43,075
|
|
43,598
|
|
Depreciation and
amortization
|
|
1,705
|
|
1,440
|
|
7,173
|
|
6,894
|
|
Other charges,
net
|
|
5,185
|
|
2,119
|
|
5,761
|
|
6,030
|
|
|
Total operating
expenses
|
|
32,113
|
|
29,587
|
|
114,012
|
|
114,571
|
Income from
operations
|
|
924
|
|
3,202
|
|
20,848
|
|
20,878
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expenses)
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
127
|
|
(24)
|
|
131
|
|
15
|
|
Interest
expense
|
|
(2,064)
|
|
(1,937)
|
|
(7,982)
|
|
(6,969)
|
|
Non-operating
gains
|
|
-
|
|
(348)
|
|
-
|
|
229
|
Income before income
taxes
|
|
(1,013)
|
|
893
|
|
12,997
|
|
14,153
|
Income tax expense
(benefit)
|
|
(989)
|
|
141
|
|
2,657
|
|
5,164
|
Net income
(loss)
|
|
(24)
|
|
752
|
|
10,340
|
|
8,989
|
Less: Net income
(loss) attributable to noncontrolling interests
|
|
(403)
|
|
226
|
|
(749)
|
|
(323)
|
Net income
attributable to RCIHH common shareholders
|
|
$
379
|
|
$
526
|
|
$ 11,089
|
|
$
9,312
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to RCIHH shareholders
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$0.04
|
|
$0.05
|
|
$1.12
|
|
$0.90
|
|
Diluted
|
|
$0.04
|
|
$0.05
|
|
$1.10
|
|
$0.90
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding
|
|
|
|
|
|
|
|
|
|
Basic
|
|
9,839
|
|
10,363
|
|
9,941
|
|
10,359
|
|
Diluted
|
|
9,840
|
|
10,363
|
|
10,229
|
|
10,406
|
|
|
|
|
|
|
|
|
|
|
|
Dividends per
share
|
|
$0.03
|
|
$0.00
|
|
$0.09
|
|
$0.00
|
RCI HOSPITALITY
HOLDINGS, INC.
|
SEGMENT
INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months
|
|
For The
Year
|
|
|
Ended September
30,
|
|
Ended September
30,
|
(in
thousands)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business segment
sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
Nightclubs
|
|
$
|
27,669
|
|
$
|
27,686
|
|
$
|
113,941
|
|
$
|
115,493
|
Bombshells
|
|
|
4,677
|
|
|
4,232
|
|
|
18,690
|
|
|
17,639
|
Other
|
|
|
691
|
|
|
871
|
|
|
2,229
|
|
|
2,317
|
|
|
$
|
33,037
|
|
$
|
32,789
|
|
$
|
134,860
|
|
$
|
135,449
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business segment
operating income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
Nightclubs
|
|
$
|
5,383
|
|
$
|
4,444
|
|
$
|
33,227
|
|
$
|
30,444
|
Bombshells
|
|
|
(859)
|
|
|
293
|
|
|
1,291
|
|
|
1,773
|
Other
|
|
|
(496)
|
|
|
74
|
|
|
(2,650)
|
|
|
(1,921)
|
General
corporate
|
|
|
(3,104)
|
|
|
(1,609)
|
|
|
(11,020)
|
|
|
(9,418)
|
|
|
$
|
924
|
|
$
|
3,202
|
|
$
|
20,848
|
|
$
|
20,878
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business segment
operating margin:
|
|
|
|
|
|
|
|
|
|
|
|
|
Nightclubs
|
|
|
19.5%
|
|
|
16.1%
|
|
|
29.2%
|
|
|
26.4%
|
Bombshells
|
|
|
-18.4%
|
|
|
6.9%
|
|
|
6.9%
|
|
|
10.1%
|
Other
|
|
|
-71.8%
|
|
|
8.5%
|
|
|
-118.9%
|
|
|
-82.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Nightclubs GAAP operating income to non-GAAP operating income
|
|
|
|
|
|
|
|
|
|
|
|
|
Nightclubs operating
income
|
|
$
|
5,383
|
|
$
|
4,444
|
|
$
|
33,227
|
|
$
|
30,444
|
Impairment of
assets
|
|
|
2,092
|
|
|
347
|
|
|
2,092
|
|
|
1,705
|
Litigation and other
one-time settlements
|
|
|
1,140
|
|
|
1,124
|
|
|
1,881
|
|
|
11,684
|
Gain on settlement of
Patron tax case
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(8,167)
|
Loss (gain) on
disposition of assets
|
|
|
(256)
|
|
|
312
|
|
|
(421)
|
|
|
472
|
Nightclubs non-GAAP
operating income
|
|
$
|
8,359
|
|
$
|
6,227
|
|
$
|
36,779
|
|
$
|
36,138
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nightclubs
non-GAAP operating margin
|
|
|
30.2%
|
|
|
22.5%
|
|
|
32.3%
|
|
|
31.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Bombshells GAAP operating income to non-GAAP operating income
|
|
|
|
|
|
|
|
|
|
|
|
|
Bombshells operating
income
|
|
$
|
(859)
|
|
$
|
293
|
|
$
|
1,291
|
|
$
|
1,773
|
Loss on disposition
of assets
|
|
|
1,374
|
|
|
336
|
|
|
1,374
|
|
|
336
|
Bombshells non-GAAP
operating income
|
|
$
|
515
|
|
$
|
629
|
|
$
|
2,665
|
|
$
|
2,109
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bombshells
non-GAAP operating margin
|
|
|
11.0%
|
|
|
14.9%
|
|
|
14.3%
|
|
|
12.0%
|
RCI HOSPITALITY
HOLDINGS, INC.
|
NON-GAAP FINANCIAL
MEASURES*
|
|
|
|
|
|
|
|
|
|
|
|
For The Three
Months
|
|
For The
Year
|
|
|
Ended September
30,
|
|
Ended September
30,
|
($ in thousands,
except per share data)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
Reconciliation of
GAAP net income to Adjusted EBITDA
|
|
|
|
|
|
|
|
|
GAAP net
income
|
|
$
379
|
|
$
526
|
|
$
11,089
|
|
$
9,312
|
Income tax expense
(benefit)
|
|
(989)
|
|
141
|
|
2,657
|
|
5,164
|
Interest expense and
income
|
|
1,937
|
|
1,961
|
|
7,851
|
|
6,954
|
Litigation and other
one-time settlements
|
|
1,140
|
|
1,124
|
|
1,881
|
|
11,684
|
Gain on settlement of
patron tax case
|
|
-
|
|
-
|
|
-
|
|
(8,167)
|
Impairment of
assets
|
|
4,317
|
|
347
|
|
4,317
|
|
1,705
|
Loss (gain) on sale
of property
|
|
(272)
|
|
648
|
|
(437)
|
|
808
|
Depreciation and
amortization
|
|
1,705
|
|
1,440
|
|
7,173
|
|
6,894
|
Loss (gain) on
acquisition of controlling interest in subsidiary
|
|
-
|
|
348
|
|
-
|
|
(229)
|
Adjusted
EBITDA
|
|
$
8,217
|
|
$
6,535
|
|
$
34,531
|
|
$ 34,125
|
|
|
|
|
|
|
|
|
|
Reconciliation of
GAAP net income (loss) to non-GAAP net income
|
|
|
|
|
|
|
|
|
GAAP net
income
|
|
$
379
|
|
$
526
|
|
$
11,089
|
|
$
9,312
|
Amortization of
intangibles
|
|
169
|
|
(154)
|
|
752
|
|
737
|
Stock-based
compensation
|
|
-
|
|
120
|
|
360
|
|
480
|
Litigation and other
one-time settlements
|
|
1,140
|
|
1,124
|
|
1,881
|
|
11,684
|
Gain on settlement of
patron tax case
|
|
-
|
|
-
|
|
-
|
|
(8,167)
|
Impairment of
assets
|
|
4,317
|
|
347
|
|
4,317
|
|
1,705
|
Income tax expense
(benefit)
|
|
(989)
|
|
141
|
|
2,657
|
|
5,164
|
Loss (gain) on sale
of property
|
|
(272)
|
|
648
|
|
(437)
|
|
808
|
Loss (gain) on
acquisition of controlling interest in subsidiary
|
|
-
|
|
348
|
|
-
|
|
(229)
|
Non-GAAP provision
for income taxes
|
|
(1,729)
|
|
(928)
|
|
(7,217)
|
|
(7,523)
|
Non-GAAP net
income
|
|
$
3,015
|
|
$
2,172
|
|
$
13,402
|
|
$ 13,971
|
|
|
|
|
|
|
|
|
|
Reconciliation of
GAAP diluted net income per
share to non-GAAP diluted net income per share
|
|
|
|
|
|
|
|
|
Fully diluted
shares
|
|
9,840
|
|
10,363
|
|
10,229
|
|
10,406
|
GAAP net
income
|
|
$
0.04
|
|
$
0.05
|
|
$
1.10
|
|
$
0.90
|
Amortization of
intangibles
|
|
0.02
|
|
(0.01)
|
|
0.07
|
|
0.07
|
Stock-based
compensation
|
|
-
|
|
0.01
|
|
0.04
|
|
0.05
|
Litigation and other
one-time settlements
|
|
0.12
|
|
0.11
|
|
0.18
|
|
1.12
|
Gain on settlement of
patron tax case
|
|
-
|
|
-
|
|
-
|
|
(0.78)
|
Impairment of
assets
|
|
0.44
|
|
0.03
|
|
0.42
|
|
0.16
|
Income tax expense
(benefit)
|
|
(0.10)
|
|
0.01
|
|
0.26
|
|
0.50
|
Loss (gain) on sale
of property
|
|
(0.03)
|
|
0.06
|
|
(0.04)
|
|
0.08
|
Loss (gain) on
acquisition of controlling interest in subsidiary
|
|
-
|
|
0.03
|
|
-
|
|
(0.02)
|
Non-GAAP provision
for income taxes
|
|
(0.18)
|
|
(0.09)
|
|
(0.71)
|
|
(0.71)
|
Non-GAAP diluted net
income per share
|
|
$
0.31
|
|
$
0.21
|
|
$
1.32
|
|
$
1.35
|
|
|
|
|
|
|
|
|
|
Reconciliation of
GAAP operating income to non-GAAP operating income
|
|
|
|
|
|
|
|
|
GAAP operating
income
|
|
$
924
|
|
$
3,202
|
|
$
20,848
|
|
$ 20,878
|
Amortization of
intangibles
|
|
169
|
|
(154)
|
|
752
|
|
737
|
Stock-based
compensation
|
|
-
|
|
120
|
|
360
|
|
480
|
Litigation and other
one-time settlements
|
|
1,140
|
|
1,124
|
|
1,881
|
|
11,684
|
Gain on settlement of
patron tax case
|
|
-
|
|
-
|
|
-
|
|
(8,167)
|
Impairment of
assets
|
|
4,317
|
|
347
|
|
4,317
|
|
1,705
|
Loss (gain) on sale
of property
|
|
(272)
|
|
648
|
|
(437)
|
|
808
|
Non-GAAP operating
income
|
|
$
6,278
|
|
$
5,287
|
|
$
27,721
|
|
$ 28,125
|
|
|
|
|
|
|
|
|
|
Reconciliation of
GAAP operating margin to non-GAAP operating margin
|
|
|
|
|
|
|
|
|
GAAP operating
income
|
|
2.8%
|
|
9.8%
|
|
15.5%
|
|
15.4%
|
Amortization of
intangibles
|
|
0.5%
|
|
-0.5%
|
|
0.6%
|
|
0.5%
|
Stock-based
compensation
|
|
0.0%
|
|
0.4%
|
|
0.3%
|
|
0.4%
|
Litigation and other
one-time settlements
|
|
3.5%
|
|
3.4%
|
|
1.4%
|
|
8.6%
|
Gain on settlement of
patron tax case
|
|
0.0%
|
|
0.0%
|
|
0.0%
|
|
-6.0%
|
Impairment of
assets
|
|
13.1%
|
|
1.1%
|
|
3.2%
|
|
1.3%
|
Loss (gain) on sale
of property
|
|
-0.8%
|
|
2.0%
|
|
-0.3%
|
|
0.6%
|
Non-GAAP operating
margin
|
|
19.0%
|
|
16.1%
|
|
20.6%
|
|
20.8%
|
|
|
|
|
|
|
|
|
|
Reconciliation of
GAAP net cash provided by operating activities to
non-GAAP free cash flow
|
|
|
|
|
|
|
|
|
Net cash provided by
(used in) operating activities
|
|
$
4,533
|
|
$ (1,916)
|
|
$
23,031
|
|
$ 16,364
|
Less: Maintenance
capital expenditures
|
|
730
|
|
184
|
|
2,518
|
|
1,475
|
Free cash
flow
|
|
$
3,803
|
|
$ (2,100)
|
|
$
20,513
|
|
$ 14,889
|
* For FY16 periods,
we excluded pre-opening and acquisitions costs, which were
previously included, and have included gain/loss on sale of
controlling interest in subsidiary, which were previously excluded,
in our adjustments for non-GAAP financial performance measures,
since we believe that these are recurring cash operating expenses
that are necessary to operate our business. We have appropriately
included or excluded the same items from prior year comparable
non-GAAP financial performance measures.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/rci-reports-4q16-and-fy16-results-and-fy17-outlook-300377577.html
SOURCE RCI Hospitality Holdings, Inc.