RCI Hospitality (NASDAQ:RICK) Announces Quarterly Earnings Results

RCI Hospitality (NASDAQ:RICK) posted its earnings results on Thursday. The restaurant operator reported $0.90 EPS for the quarter, FiscalAI reports. The company had revenue of $73.94 million during the quarter. RCI Hospitality had a negative return on equity of 2.61% and a negative net margin of 2.31%.

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 Price Performance

RICK traded up $0.04 on Friday, reaching $26.28. The company had a trading volume of 506 shares, compared to its average volume of 60,606. The company has a market capitalization of $200.78 million, a P/E ratio of -33.69 and a beta of 0.76. The company has a current ratio of 0.55, a quick ratio of 0.49 and a debt-to-equity ratio of 0.93. The company has a fifty day moving average of $26.43 and a 200-day moving average of $24.76. RCI Hospitality has a one year low of $20.76 and a one year high of $38.25.

RCI Hospitality Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Monday, June 15th were paid a dividend of $0.08 per share. This represents a $0.32 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date was Monday, June 15th. RCI Hospitality’s payout ratio is currently -41.03%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Brighton Jones LLC bought a new stake in RCI Hospitality during the fourth quarter worth approximately $211,000. AQR Capital Management LLC boosted its stake in RCI Hospitality by 12.8% during the 1st quarter. AQR Capital Management LLC now owns 25,938 shares of the restaurant operator’s stock valued at $1,114,000 after purchasing an additional 2,934 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in shares of RCI Hospitality by 4.9% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 4,979 shares of the restaurant operator’s stock valued at $214,000 after purchasing an additional 234 shares during the period. Invesco Ltd. increased its position in shares of RCI Hospitality by 4.5% during the 2nd quarter. Invesco Ltd. now owns 12,523 shares of the restaurant operator’s stock valued at $477,000 after purchasing an additional 536 shares during the period. Finally, Marshall Wace LLP raised its stake in shares of RCI Hospitality by 324.7% in the 2nd quarter. Marshall Wace LLP now owns 23,087 shares of the restaurant operator’s stock worth $880,000 after buying an additional 17,651 shares in the last quarter. 53.82% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

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

About RCI Hospitality

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.