HOUSTON, Feb. 27, 2020 /PRNewswire/ -- RCI
Hospitality Holdings, Inc. (Nasdaq: RICK) today reported results
for the Fiscal 2020 first quarter ended December 31, 2019 and the filing of its 10-Q.
1Q20 vs.
1Q19
|
• Diluted EPS of
$0.60 compared to $0.65 (1Q19 benefitted from $1.1 million in
pre-tax gains on the sale of non-income producing
assets)
|
• Diluted non-GAAP*
EPS of $0.62 compared to $0.61
|
• Weighted average
shares outstanding fell 391K or 4.0% due to repurchases
|
• Cash rebounded to
$13.2 million at December 31, 2019 after $6.4 million in 1Q20 share
buybacks
|
• Free cash flow
(FCF) totaled $9.3 million (based on net cash provided by operating
activities of $10.3 million, less maintenance capital expenditures
of $1.0 million)
|
• Total revenues of
$48.4 million compared to $44.0 million on 47 and 46 units,
respectively
|
• Bombshells
quarterly revenues hit a record $10.4M as segment margin rebounded
to +15%
|
Conference Call
4:30 PM ET Today
|
• Call to discuss
1Q20 results, outlook and related matters
|
• Live Participant
Phone Number: Toll Free 877-407-9210, International
201-689-8049
|
• To access the live
webcast, slides or replay, visit:
https://www.webcaster4.com/Webcast/Page/2209/33364
|
• Phone Replay: Toll
Free 877-481-4010, International 919-882-2331, Passcode:
33364
|
CEO Comment
"Bombshells revenue, margin and profit continued to grow
noticeably in 1Q20 from new and older locations, despite
pre-opening costs for two new units," said Eric Langan, President & CEO. "Performance
should continue to expand with Bombshells Katy, which opened
mid-1Q20; Bombshells 59 in southwest Houston, which opened mid-2Q20; and the
remodeling and expansion of our first Bombshells, which opened
seven years ago in Dallas.
"Nightclubs maintained their strong contribution as two new
locations – Rick's Cabarets in Chicago and Pittsburgh – made up for two clubs closed part
of the quarter for repairs, and one less selling week during the
high-volume Thanksgiving and Christmas period. Performance has
already begun to pick up appreciably. Scarlett's Cabaret St. Louis
and Rick's Cabaret Odessa have reopened. We have a great sports
calendar in 2Q20 in markets where we have larger clubs, and we
continue to look forward to closing on our Northeast Corridor
acquisition.
"Salaries and wages and SG&A were higher than what we'd like
due to accounting, legal and overtime costs related to our recently
filed 10-K, which included the reaudits of FY 2017 and FY 2018 in
conjunction with the FY 19 audit. While these costs will continue
to be somewhat high in 2Q20, with the 10-K and now the 10-Q filed,
we expect them to subside in the second half and help increase
operating leverage.
"Nonetheless, we continued to move forward in 1Q20 with our
capital allocation strategy. We reduced shares outstanding 4% year
over year, buying back 332,671 shares, for $6.4 million, and still ended the quarter with
$13.2 million of cash compared to
$14.1 million at September 30th. In addition, free cash flow
continues at a run rate of approximately $30
million based on $34 million
in net cash from operating activities less $4 million of maintenance capital
expenditures.
"To increase our financial flexibility, in 1Q20 and 2Q20 we
refinanced $12.2 million of debt,
eliminating $10.8 million of
near-term non-realty balloon payments, to avoid any large near-term
cash needs. This flexibility will be further enhanced when we close
on approximately $6.7 million in
excess properties under contract to sell, and we sell or lease
remaining excess properties with approximately $9 million in market value."
1Q20 REVIEW (All comparisons to 1Q19 unless otherwise
noted)
- Total Revenues: Total revenues of $48.4 million rose $4.4
million or 9.9%. Growth reflected increases of $2.4 million (+13.3%) in alcoholic beverages,
$1.8 million (+30.9%) in food, and
$319K (+11.8%) in other. Service
revenues declined $138K (-0.8%).
Beverage and food reflected strong sales at Bombshells. Service
reflected one less holiday sales week for clubs.
- Operating Income: Due to the company's growth and other
factors, operating expenses increased $5.8
million or 17.7%. Cost of goods increased $964K or 16.6%, reflecting a higher amount and
proportion of beverage and food sales. Salaries and wages and
SG&A increased $3.6 million or
13.9% due to more units open, Bombshells pre-opening costs, and
expenses related to RCI's recently filed 10-K. Other gains, net,
declined $1.1 million from 1Q19, when
three non-income producing assets were sold. As a result, GAAP
operating income declined $1.4
million, while non-GAAP operating income fell only
$375K.
- Nightclubs Segment: Revenues increased slightly to
$37.9 million, with 38 units compared
to 39, as sales of new clubs offset clubs closed for part of the
quarter and the shorter holiday selling season. GAAP operating
income declined $1.6 million from
1Q19, which included most of the 1Q19 gains on sales. On a non-GAAP
basis, operating income fell only $440K.
- Bombshells Segment: Revenues of $10.4 million increased 72.1%, with 9 units
compared to 7. Revenues from new units totaled $4.8 million from four Houston area locations—Pearland (opened
April 2018), I-10 (December 2018), Tomball (March
2019), and Katy (October 22,
2019), which experienced a record month for a Bombshells in
November. Same-store sales increased 19.2%. Units also benefitted
from increased traffic as a result of the Houston pro baseball team playing through to
the 7th game of the championship. Operating margin expanded to
15.2% compared to 2.0%. Segment profit jumped to $1.6 million from $119K.
- Other Metrics
-
- Occupancy Costs (rent and interest expense as a percentage of
total revenues) were 7.3% compared to 8.0%. 1Q19 reflected lower
debt at lower average interest rates and increased revenues.
- Cash and Cash Equivalents totaled $13.2
million at December 31, 2019
compared to $14.1 million at
September 30, 2019 and $9.4 million at December
31, 2018.
- Long-Term Debt of $141.8 million
at December 31, 2019 fell
$1.7 million from September 30, 2019 and $11.3 million from December 31, 2018, due to scheduled paydowns and
loan repayments, partially offset by new debt to fund the
Bombshells expansion.
- Operating lease liabilities: We adopted ASC 842, Leases. This
resulted in an increase of $27.3
million in total assets with the recognition of operating
lease right-of-use assets net of the reclassification of deferred
rent liability of $1.2 million, and
an increase in total liabilities with the recognition of
$28.6 million operating lease
liabilities.
- Maintenance Capital Expenditures of $1.0
million increased from $376K
due to remodeling of Bombshells Dallas and upgrading of our two
South Florida clubs in advance of
the pro football championship in 2Q20.
*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) gains or
losses on sale of businesses and assets, (c) gains or losses on
insurance, and (d) settlement of lawsuits. 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) gains or losses on sale of businesses and assets,
(c) gains or losses on insurance, (d) unrealized gains or losses on
equity securities, (e) settlement of lawsuits, and (f) the income
tax effect of the above described adjustments. Included in the
income tax effect of the above adjustments is the net effect of the
non-GAAP provision for income taxes, calculated at 21.8% and 22.2%
effective tax rate of the pre-tax non-GAAP income before taxes for
the quarter ended December 31, 2019
and 2018, respectively, and the GAAP income tax expense (benefit).
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 (benefit), (c) net interest expense, (d) gains or
losses on sale of businesses and assets, (e) gains or losses on
insurance, (f) unrealized gains or losses on equity securities, and
(g) settlement of lawsuits. 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
our unleveraged performance return on our investments. Adjusted
EBITDA is also the target benchmark for our acquisitions of
nightclubs.
- Management also uses 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.
Notes
- Unit counts above 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.
- Planned opening dates are subject to change due to weather,
which could affect construction schedules, and scheduling of final
municipal inspections.
About RCI Hospitality Holdings, Inc. (Nasdaq: RICK)
With more than 40 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, Chicago, Dallas/Ft.
Worth, Houston,
Miami, Minneapolis, St.
Louis, Charlotte, Pittsburgh, and other markets operate under
brand names such as Rick's Cabaret, XTC, Club Onyx, Vivid Cabaret,
Jaguars Club, Tootsie's Cabaret, and Scarlett's Cabaret. Sports
bars/restaurants operate under the brand name Bombshells Restaurant
& Bar. 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, but not limited to, the risks and
uncertainties associated with (i) operating and managing an adult
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) our ability to regain and
maintain compliance with the filing requirements of the SEC and the
Nasdaq Stock Market, and (vii) 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.
Media & Investor Contacts
Gary Fishman and Steven Anreder at 212-532-3232 or
gary.fishman@anreder.com and steven.anreder@anreder.com
RCI HOSPITALITY
HOLDINGS, INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
(in thousands, except
per share and percentage data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended December 31,
|
|
|
|
|
|
2019
|
|
2018
|
|
|
|
|
|
Amount
|
|
% of
Revenue
|
|
Amount
|
|
% of
Revenue
|
Revenues
|
|
|
|
|
|
|
|
|
|
Sales of alcoholic
beverages
|
|
$
20,743
|
|
42.9%
|
|
$
18,310
|
|
41.6%
|
|
Sales of food and
merchandise
|
|
7,447
|
|
15.4%
|
|
5,690
|
|
12.9%
|
|
Service
revenues
|
|
17,193
|
|
35.5%
|
|
17,331
|
|
39.4%
|
|
Other
|
|
3,011
|
|
6.2%
|
|
2,692
|
|
6.1%
|
|
|
Total
revenues
|
|
48,394
|
|
100.0%
|
|
44,023
|
|
100.0%
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
|
|
|
|
|
|
|
|
|
Alcoholic beverages
sold
|
|
4,146
|
|
20.0%
|
|
3,736
|
|
20.4%
|
|
|
Food and merchandise
sold
|
|
2,553
|
|
34.3%
|
|
1,984
|
|
34.9%
|
|
|
Service and
other
|
|
77
|
|
0.4%
|
|
92
|
|
0.5%
|
|
|
|
Total cost of goods
sold (exclusive of items shown below)
|
|
6,776
|
|
14.0%
|
|
5,812
|
|
13.2%
|
|
Salaries and
wages
|
|
13,223
|
|
27.3%
|
|
12,096
|
|
27.5%
|
|
Selling, general and
administrative
|
|
16,531
|
|
34.2%
|
|
14,027
|
|
31.9%
|
|
Depreciation and
amortization
|
|
2,204
|
|
4.6%
|
|
2,053
|
|
4.7%
|
|
Other gains,
net
|
|
(26)
|
|
-0.1%
|
|
(1,097)
|
|
-2.5%
|
|
|
Total operating
expenses
|
|
38,708
|
|
80.0%
|
|
32,891
|
|
74.7%
|
Income from
operations
|
|
9,686
|
|
20.0%
|
|
11,132
|
|
25.3%
|
Other income
(expenses)
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(2,485)
|
|
-5.1%
|
|
(2,521)
|
|
-5.7%
|
|
Interest
income
|
|
98
|
|
0.2%
|
|
51
|
|
0.1%
|
|
Non-operating
loss
|
|
(72)
|
|
-0.1%
|
|
(447)
|
|
-1.0%
|
Income before income
taxes
|
|
7,227
|
|
14.9%
|
|
8,215
|
|
18.7%
|
Income tax
expense
|
|
1,593
|
|
3.3%
|
|
1,811
|
|
4.1%
|
Net income
|
|
5,634
|
|
11.6%
|
|
6,404
|
|
14.5%
|
Net income
attributable to noncontrolling interests
|
|
-
|
|
0.0%
|
|
(60)
|
|
-0.1%
|
Net income
attributable to RCIHH common shareholders
|
|
$
5,634
|
|
11.6%
|
|
$
6,344
|
|
14.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
$
0.60
|
|
|
|
$
0.65
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
9,322
|
|
|
|
9,713
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends per
share
|
|
$
0.03
|
|
|
|
$
0.03
|
|
|
RCI HOSPITALITY
HOLDINGS, INC.
|
NON-GAAP FINANCIAL
MEASURES
|
(in thousands, except
per share and percentage data)
|
|
|
|
|
|
|
|
For the Three
Months
|
|
|
Ended December
31,
|
|
|
2019
|
|
2018
|
Reconciliation of
GAAP net income to Adjusted EBITDA
|
|
|
|
|
Net income
attributable to RCIHH common shareholders
|
|
$
5,634
|
|
$
6,344
|
Income tax expense
(benefit)
|
|
1,593
|
|
1,811
|
Interest expense,
net
|
|
2,387
|
|
2,470
|
Settlement of
lawsuits
|
|
24
|
|
60
|
Gain on sale of
businesses and assets
|
|
(30)
|
|
(1,157)
|
Unrealized loss on
equity securities
|
|
72
|
|
447
|
Gain on
insurance
|
|
(20)
|
|
-
|
Depreciation and
amortization
|
|
2,204
|
|
2,053
|
Adjusted
EBITDA
|
|
$
11,864
|
|
$
12,028
|
|
|
|
|
|
Reconciliation of
GAAP net income to non-GAAP net income
|
|
|
|
|
Net income
attributable to RCIHH common shareholders
|
|
$
5,634
|
|
$
6,344
|
Amortization of
intangibles
|
|
156
|
|
156
|
Settlement of
lawsuits
|
|
24
|
|
60
|
Gain on sale of
businesses and assets
|
|
(30)
|
|
(1,157)
|
Unrealized loss on
equity securities
|
|
72
|
|
447
|
Gain on
insurance
|
|
(20)
|
|
-
|
Net income tax effect
of adjustments above
|
|
(26)
|
|
110
|
Non-GAAP net
income
|
|
$
5,810
|
|
$
5,960
|
|
|
|
|
|
Reconciliation of
GAAP diluted earnings per share to non-GAAP diluted earnings per
share
|
|
|
|
|
Diluted
shares
|
|
9,322
|
|
9,713
|
GAAP diluted earnings
per share
|
|
$
0.60
|
|
$
0.65
|
Amortization of
intangibles
|
|
0.02
|
|
0.02
|
Settlement of
lawsuits
|
|
0.00
|
|
0.01
|
Gain on sale of
businesses and assets
|
|
(0.00)
|
|
(0.12)
|
Unrealized loss on
equity securities
|
|
0.01
|
|
0.05
|
Gain on
insurance
|
|
(0.00)
|
|
-
|
Net income tax effect
of adjustments above
|
|
(0.00)
|
|
0.01
|
Non-GAAP diluted
earnings per share
|
|
$
0.62
|
|
$
0.61
|
|
|
|
|
|
Reconciliation of
GAAP operating income to non-GAAP operating income
|
|
|
|
|
Income from
operations
|
|
$
9,686
|
|
$
11,132
|
Amortization of
intangibles
|
|
156
|
|
156
|
Settlement of
lawsuits
|
|
24
|
|
60
|
Gain on sale of
businesses and assets
|
|
(30)
|
|
(1,157)
|
Gain on
insurance
|
|
(20)
|
|
-
|
Non-GAAP operating
income
|
|
$
9,816
|
|
$
10,191
|
|
|
|
|
|
Reconciliation of
GAAP operating margin to non-GAAP operating margin
|
|
|
|
|
GAAP operating
margin
|
|
20.0%
|
|
25.3%
|
Amortization of
intangibles
|
|
0.3%
|
|
0.4%
|
Settlement of
lawsuits
|
|
0.0%
|
|
0.1%
|
Gain on sale of
businesses and assets
|
|
-0.1%
|
|
-2.6%
|
Gain on
insurance
|
|
0.0%
|
|
0.0%
|
Non-GAAP operating
margin
|
|
20.3%
|
|
23.1%
|
|
|
|
|
|
Reconciliation of
net cash provided by operating activities to free cash
flow
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
10,273
|
|
$
11,452
|
Less: Maintenance
capital expenditures
|
|
1,021
|
|
376
|
Free cash
flow
|
|
$
9,252
|
|
$
11,076
|
RCI HOSPITALITY
HOLDINGS, INC.
|
SEGMENT
INFORMATION
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
For the Three
Months
|
|
|
|
Ended December
31,
|
|
|
|
2019
|
|
2018
|
Revenues
|
|
|
|
|
|
Nightclubs
|
|
$
37,859
|
|
$
37,728
|
|
Bombshells
|
|
10,350
|
|
6,013
|
|
Other
|
|
185
|
|
282
|
|
|
|
$
48,394
|
|
$
44,023
|
|
|
|
|
|
|
Income (loss) from
operations
|
|
|
|
|
|
Nightclubs
|
|
$
13,776
|
|
$
15,387
|
|
Bombshells
|
|
1,573
|
|
119
|
|
Other
|
|
(207)
|
|
(119)
|
|
General
corporate
|
|
(5,456)
|
|
(4,255)
|
|
|
|
$
9,686
|
|
$
11,132
|
RCI HOSPITALITY
HOLDINGS, INC.
|
NON-GAAP SEGMENT
INFORMATION
|
($ in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended December 31, 2019
|
|
For the Three
Months Ended December 31, 2018
|
|
|
Nightclubs
|
|
Bombshells
|
|
Other
|
|
Corporate
|
|
Total
|
|
Nightclubs
|
|
Bombshells
|
|
Other
|
|
Corporate
|
|
Total
|
Income (loss) from
operations
|
|
$
13,776
|
|
$
1,573
|
|
$
(207)
|
|
$ (5,456)
|
|
$
9,686
|
|
$
15,387
|
|
$
119
|
|
$ (119)
|
|
$ (4,255)
|
|
$
11,132
|
Amortization of
intangibles
|
|
57
|
|
4
|
|
95
|
|
-
|
|
156
|
|
-
|
|
-
|
|
-
|
|
156
|
|
156
|
Settlement of
lawsuits
|
|
24
|
|
-
|
|
-
|
|
-
|
|
24
|
|
45
|
|
3
|
|
-
|
|
12
|
|
60
|
Gain on sale of
businesses and assets
|
|
3
|
|
-
|
|
-
|
|
(33)
|
|
(30)
|
|
(1,152)
|
|
-
|
|
(5)
|
|
-
|
|
(1,157)
|
Gain on
insurance
|
|
(20)
|
|
-
|
|
-
|
|
-
|
|
(20)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Non-GAAP operating
income (loss)
|
|
$
13,840
|
|
$
1,577
|
|
$
(112)
|
|
$ (5,489)
|
|
$
9,816
|
|
$
14,280
|
|
$
122
|
|
$ (124)
|
|
$ (4,087)
|
|
$
10,191
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
margin
|
|
36.4%
|
|
15.2%
|
|
-111.9%
|
|
-11.3%
|
|
20.0%
|
|
40.8%
|
|
2.0%
|
|
-42.2%
|
|
-9.7%
|
|
25.3%
|
Non-GAAP operating
margin
|
|
36.6%
|
|
15.2%
|
|
-60.5%
|
|
-11.3%
|
|
20.3%
|
|
37.8%
|
|
2.0%
|
|
-44.0%
|
|
-9.3%
|
|
23.1%
|
RCI HOSPITALITY
HOLDINGS, INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
|
|
|
December 31,
2019
|
|
December 31,
2018
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
Net income
|
|
$
5,634
|
|
$
6,404
|
Adjustments to
reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
Depreciation and
amortization
|
|
2,204
|
|
2,053
|
|
Deferred tax expense
(credit)
|
|
(150)
|
|
458
|
|
Gain on sale of
businesses and assets
|
|
(30)
|
|
(1,176)
|
|
Unrealized loss on
equity securities
|
|
72
|
|
447
|
|
Amortization of debt
discount and issuance costs
|
|
61
|
|
95
|
|
Deferred rent
expense
|
|
-
|
|
142
|
|
Noncash lease
expense
|
|
329
|
|
-
|
|
Gain on
insurance
|
|
(20)
|
|
-
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
Accounts
receivable
|
|
2,345
|
|
1,723
|
|
|
Inventories
|
|
(141)
|
|
(163)
|
|
|
Prepaid expenses,
other current assets and other assets
|
|
1,565
|
|
1,939
|
|
|
Accounts payable,
accrued and other liabilities
|
|
(1,596)
|
|
(470)
|
|
Net cash provided by
operating activities
|
|
10,273
|
|
11,452
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
Proceeds from sale of
businesses and assets
|
|
51
|
|
1,245
|
Proceeds from
insurance
|
|
932
|
|
-
|
Proceeds from notes
receivable
|
|
357
|
|
32
|
Additions to property
and equipment
|
|
(4,058)
|
|
(7,295)
|
Acquisition of
businesses, net of cash acquired
|
|
-
|
|
(13,500)
|
|
Net cash used in
investing activities
|
|
(2,718)
|
|
(19,518)
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
Proceeds from
long-term debt
|
|
318
|
|
5,652
|
Payments on long-term
debt
|
|
(2,081)
|
|
(5,279)
|
Purchase of treasury
stock
|
|
(6,441)
|
|
(355)
|
Payment of
dividends
|
|
(279)
|
|
(291)
|
Distribution to
noncontrolling interests
|
|
(10)
|
|
-
|
|
Net cash used in
financing activities
|
|
(8,493)
|
|
(273)
|
NET DECREASE IN CASH
AND CASH EQUIVALENTS
|
|
(938)
|
|
(8,339)
|
CASH AND CASH
EQUIVALENTS AT BEGINNING OF PERIOD
|
|
14,097
|
|
17,726
|
CASH AND CASH
EQUIVALENTS AT END OF PERIOD
|
|
$
13,159
|
|
$
9,387
|
RCI HOSPITALITY
HOLDINGS, INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
|
|
|
|
2019
|
|
2019
|
|
2018
|
ASSETS
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
13,159
|
|
$
14,097
|
|
$
9,387
|
|
Accounts receivable,
net
|
|
3,131
|
|
6,289
|
|
5,583
|
|
Current portion of
notes receivable
|
|
659
|
|
954
|
|
-
|
|
Inventories
|
|
2,739
|
|
2,598
|
|
2,578
|
|
Prepaid
insurance
|
|
4,150
|
|
5,446
|
|
3,603
|
|
Other current
assets
|
|
2,236
|
|
2,521
|
|
1,560
|
|
Assets held for
sale
|
|
4,825
|
|
2,866
|
|
2,356
|
|
|
Total current
assets
|
|
30,899
|
|
34,771
|
|
25,067
|
Property and
equipment, net
|
|
183,657
|
|
183,956
|
|
187,502
|
Operating lease
right-of-use assets
|
|
26,981
|
|
-
|
|
-
|
Notes receivable, net
of current portion
|
|
4,149
|
|
4,211
|
|
3,467
|
Goodwill
|
|
53,630
|
|
53,630
|
|
54,731
|
Intangibles,
net
|
|
75,795
|
|
75,951
|
|
77,289
|
Other
assets
|
|
1,062
|
|
1,118
|
|
1,466
|
|
|
|
Total
assets
|
|
$
376,173
|
|
$
353,637
|
|
$
349,522
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
3,202
|
|
$
3,810
|
|
$
2,357
|
|
Accrued
liabilities
|
|
13,759
|
|
14,644
|
|
11,940
|
|
Current portion of
long-term debt
|
|
14,898
|
|
15,754
|
|
14,898
|
|
Current portion of
operating lease liabilities
|
|
1,521
|
|
-
|
|
-
|
|
|
Total current
liabilities
|
|
33,380
|
|
34,208
|
|
29,195
|
Deferred tax
liability, net
|
|
21,508
|
|
21,658
|
|
21,473
|
Long-term debt, net
of current portion and debt discount and issuance costs
|
|
126,928
|
|
127,774
|
|
138,197
|
Operating lease
liabilities, net of current portion
|
|
26,745
|
|
-
|
|
-
|
Other long-term
liabilities
|
|
407
|
|
1,696
|
|
1,567
|
|
|
Total
liabilities
|
|
208,968
|
|
185,336
|
|
190,432
|
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
Preferred
stock
|
|
-
|
|
-
|
|
-
|
|
Common
stock
|
|
93
|
|
96
|
|
97
|
|
Additional paid-in
capital
|
|
54,874
|
|
61,312
|
|
63,857
|
|
Retained
earnings
|
|
112,404
|
|
107,049
|
|
95,179
|
|
|
Total RCIHH
stockholders' equity
|
|
167,371
|
|
168,457
|
|
159,133
|
|
Noncontrolling
interests
|
|
(166)
|
|
(156)
|
|
(43)
|
|
|
Total
equity
|
|
167,205
|
|
168,301
|
|
159,090
|
|
|
|
Total liabilities and
equity
|
|
$
376,173
|
|
$
353,637
|
|
$
349,522
|
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SOURCE RCI Hospitality Holdings, Inc.