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RCI Reports 4Q22 Results: Total Revenues $71.4M, GAAP EPS $1.15, Non-GAAP EPS $1.45

RICK

Twitter Spaces Conference Call at 4:30 PM ET Today; Meet Management at 7 PM ET Tonight

HOUSTON, Dec. 14, 2022 /PRNewswire/ -- RCI Hospitality Holdings, Inc. (Nasdaq: RICK) today reported results and filed its Form 10-K for the fiscal 2022 fourth quarter and year ended September 30, 2022.

(PRNewsfoto/RCI Hospitality Holdings, Inc.)

Summary Financials

4Q22

Change YoY

FY22

Change YoY

Total Revenues

$71.4M

29.9 %

$267.6M

37.1 %

EPS

$1.15

342.3 %

$4.91

45.7 %

Non-GAAP EPS*

$1.45

-8.2 %

$5.38

31.9 %

Net Cash from Operating Activities

$17.8M

81.7 %

$64.5M

53.6 %

Free Cash Flow*

$14.5M

71.6 %

$58.9M

63.3 %

Net Income Attributable to RCIHH Common Stockholders

$10.6M

361.4 %

$46.0M

51.8 %

Adjusted EBITDA*

$24.2

37.8 %

$86.7M

44.0 %

Basic & Diluted Shares

9.3M

2.8 %

9.4M

4.2 %

* See "Non-GAAP Financial Measures" below.

Status FY23 Share Buybacks

Repurchased Shares

Cash Used for Repurchase

Average Price Per Share

1Q23 to Date as of 12/9/22**

1,500

$97,530

$65.02

** Remaining stock purchase authorization of $18.8 million.

Eric Langan, President and CEO of RCI Hospitality Holdings, Inc., said: "We had a great FY22 and look forward to a strong FY23. Our nightclub business should see the full year benefit of the 15 acquisitions and two reopenings in FY22; the addition of the FY23 acquisition of Heartbreakers and the pending acquisition of the Baby Dolls and Chicas Locas chains; and other possible acquisitions under consideration. We'll also be developing our exciting new Rick's Cabaret Steakhouse & Casino in Central City, CO. The focus of our Bombshells business will be creating a strong lineup of new company-owned and franchised units in Texas, Alabama, and Colorado that should start opening in FY24. As always, thanks to our loyal and dedicated teams for all their hard work and effort."

Conference Call at 4:30 PM ET Today

Participants need to use Twitter Spaces on their mobile phones to ask questions during the Q&A

Twitter Spaces

Telephone

Webcast, Slides & Replay

https://twitter.com/i/spaces/1PlJQpoNQVaGE

• Hosted by:@RicksCEO,
@ZeroTangoTango, @BradleyChhay,
and@itsmarkmoran

• Toll Free 888-506-0062

• International: 973-528-0011

• Passcode: 847129

https://www.webcaster4.com/Webcast/Page/2209/47126

Meet Management at 7:00 PM ET Tonight

  • Investors are invited to Meet Management at one of RCI's top revenue generating clubs
  • Rick's Cabaret New York, 50 W 33rd St, New York, NY 10001
  • RSVP your contact information to gary.fishman@anreder.com by 5:00 PM ET today

4Q22 Segments

  • Nightclubs: Revenues of $56.6 million, operating margin of 39.7% (41.6% non-GAAP), and operating income of $22.5 million ($23.6 million non-GAAP). The fourth quarter of FY22 was the second period since 1Q20 not affected by COVID. The 15 new club acquisitions in FY22 contributed sales of $14.9 million, high-margin service revenues increased 53.6% year-over-year, and same-store sales increased.1
  • Bombshells: Revenues of $14.0 million, operating margin of 15.5%, and operating income of $2.2 million. The company-owned Arlington, TX, location (opened December 2021) contributed $1.4 million in sales, and same-store sales declined.1 The first full quarter of the franchise-owned San Antonio location (opened late June 2022) contributed more than $0.1 million in royalties and incurred $0.3 million in start-up expenses as per the franchising agreement. Excluding these costs, segment operating margin would have been approximately 18%.

4Q22 Consolidated (Comparisons are to 4Q21 and % are of total revenues unless indicated otherwise)

  • Cost of goods sold: 12.9% vs. 14.9% due to the increased mix of higher-margin service revenues of 36.5% vs. 31.0%.
  • Salaries and wages: Approximately level at 25.3% vs. 25.6%.
  • SG&A: 31.3% vs. 27.6%. 4Q22 included increased expenses related to newly acquired and reopened locations. SG&A also included $2.4 million non-cash stock-based compensation related to previously announced $100 per share options granted to a limited number of top executives and management team members. Excluding stock-based compensation, 4Q22 SG&A would have been approximately 28%.
  • Depreciation and amortization: 6.7% vs. 3.7%. 4Q22 reflected non-cash amortization of intangible assets on newly acquired leased locations.
  • Other charges and gains: The Nightclubs segment included a $1.7 million gain on sales of a business and assets in 4Q22 compared to $11.9 million impairment in 4Q21.
  • Operating margin: 25.2% vs. 6.6% (30.0% vs. 28.4% non-GAAP).
  • Interest expense: 4.8% vs. 5.3% reflecting higher sales partially offset by higher debt from club and Bombshells site acquisitions over the course of the year.
  • Income tax:$4.0 million expense compared to $1.6 million benefit. The FY22 effective tax rate was 23.4% vs. 11.7%.
  • Weighted average shares outstanding: Increased 2.8% due to shares issued for clubs acquired in October 2021, partially offset by subsequent share repurchases.
  • Debt:$202.5 million at 9/30/22 compared to $188.0 million at 6/30/22. The increase primarily reflected seller financing used in the July 2022 Cheetah acquisition.

Note

The novel coronavirus (COVID-19) pandemic has disrupted and may continue to disrupt our business, which has and could continue to materially affect our operations, financial condition, and results of operations for an extended period of time. All references to the "company," "we," "our," and similar terms include RCI Hospitality Holdings, Inc., and its subsidiaries, unless the context indicates otherwise.

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) impairment of assets, (c) gains or losses on sale of businesses and assets, (d) gains or losses on insurance, (e) settlement of lawsuits, (f) costs and charges related to debt refinancing, and (g) stock-based compensation. 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) impairment of assets, (c) gains or losses on sale of businesses and assets, (d) gains or losses on insurance, (e) unrealized loss on equity securities, (f) settlement of lawsuits, (g) gain on debt extinguishment, (h) costs and charges related to debt refinancing, (i) stock-based compensation, (j) the income tax effect of the above-described adjustments, and (k) change in deferred tax asset valuation allowance. Included in the income tax effect of the above adjustments is the net effect of the non-GAAP provision for income taxes, calculated at 22.8%, 13.5%, and 26.0% effective tax rate of the pre-tax non-GAAP income before taxes for the 2022, 2021, and 2020, 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, (g) impairment of assets, (h) settlement of lawsuits, (i) gain on debt extinguishment, and (j) stock-based compensation. 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 the unleveraged performance return on our investments. Adjusted EBITDA multiple is also used as a 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.

About RCI Hospitality Holdings, Inc. (Nasdaq: RICK) (Twitter: @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 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, 2022, as well as its other filings with the U.S. Securities and Exchange Commission. 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

1 See our October 11, 2022 news release on 4Q22 sales for more details.

RCI HOSPITALITY HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share, number of shares and percentage data)


















For the Three Months Ended


For the Twelve Months Ended


September 30, 2022


September 30, 2021


September 30, 2022


September 30, 2021


Amount


% of
Revenue


Amount


% of
Revenue


Amount


% of
Revenue


Amount


% of
Revenue

Revenues
















Sales of alcoholic beverages

$ 29,812


41.8 %


$ 23,960


43.6 %


$ 113,316


42.3 %


$ 86,685


44.4 %

Sales of food and merchandise

10,666


14.9 %


10,906


19.9 %


44,294


16.6 %


41,111


21.1 %

Service revenues

26,067


36.5 %


17,019


31.0 %


93,888


35.1 %


55,461


28.4 %

Other

4,833


6.8 %


3,056


5.6 %


16,122


6.0 %


12,001


6.1 %

Total revenues

71,378


100.0 %


54,941


100.0 %


267,620


100.0 %


195,258


100.0 %

Operating expenses
















Cost of goods sold
















Alcoholic beverages sold

5,248


17.6 %


4,270


17.8 %


20,155


17.8 %


15,883


18.3 %

Food and merchandise sold

3,781


35.4 %


3,833


35.1 %


15,537


35.1 %


13,794


33.6 %

Service and other

147


0.5 %


70


0.3 %


317


0.3 %


374


0.6 %

Total cost of goods sold (exclusive of items
shown below)

9,176


12.9 %


8,173


14.9 %


36,009


13.5 %


30,051


15.4 %

Salaries and wages

18,025


25.3 %


14,071


25.6 %


68,447


25.6 %


50,627


25.9 %

Selling, general and administrative

22,352


31.3 %


15,141


27.6 %


78,847


29.5 %


54,608


28.0 %

Depreciation and amortization

4,755


6.7 %


2,041


3.7 %


12,391


4.6 %


8,238


4.2 %

Other charges (gains), net

(890)


-1.2 %


11,898


21.7 %


467


0.2 %


13,186


6.8 %

Total operating expenses

53,418


74.8 %


51,324


93.4 %


196,161


73.3 %


156,710


80.3 %

Income from operations

17,960


25.2 %


3,617


6.6 %


71,459


26.7 %


38,548


19.7 %

Other income (expenses)
















Interest expense

(3,454)


-4.8 %


(2,913)


-5.3 %


(11,950)


-4.5 %


(9,992)


-5.1 %

Interest income

90


0.1 %


59


0.1 %


411


0.2 %


253


0.1 %

Non-operating gains (losses), net

-


0.0 %


(26)


0.0 %


211


0.1 %


5,330


2.7 %

Income before income taxes

14,596


20.4 %


737


1.3 %


60,131


22.5 %


34,139


17.5 %

Income tax expense (benefit)

4,015


5.6 %


(1,551)


-2.8 %


14,071


5.3 %


3,989


2.0 %

Net income

10,581


14.8 %


2,288


4.2 %


46,060


17.2 %


30,150


15.4 %

Net loss (income) attributable to noncontrolling interests

31


0.0 %


12


0.0 %


(19)


0.0 %


186


0.1 %

Net income attributable to RCIHH common shareholders

$ 10,612


14.9 %


$ 2,300


4.2 %


$ 46,041


17.2 %


$ 30,336


15.5 %

















Earnings per share
















Basic and diluted

$ 1.15




$ 0.26




$ 4.91




$ 3.37



















Weighted average shares outstanding
















Basic and diluted

9,249,864




8,999,910




9,383,445




9,004,744



















Dividends per share

$ 0.05




$ 0.04




$ 0.19




$ 0.16



RCI HOSPITALITY HOLDINGS, INC.

NON-GAAP FINANCIAL MEASURES

(in thousands, except per share and percentage data)










For the Three Months Ended


For the Twelve Months Ended


September 30,


September 30,


September 30,


September 30,


2022


2021


2022


2021

Reconciliation of GAAP net income to Adjusted EBITDA








Net income attributable to RCIHH common stockholders

$ 10,612


$ 2,300


$ 46,041


$ 30,336

Income tax expense

4,015


(1,551)


14,071


3,989

Interest expense, net

3,364


2,854


11,539


9,739

Settlement of lawsuits

708


1,069


1,417


1,349

Impairment of assets

166


11,940


1,888


13,612

Gain on sale of businesses and assets

(1,709)


(67)


(2,375)


(522)

Gain on debt extinguishment

-


-


(138)


(5,329)

Unrealized loss on equity securities

(1)


26


-


84

Gain on insurance

(55)


(1,044)


(463)


(1,253)

Depreciation and amortization

4,755


2,041


12,391


8,238

Stock-based compensation

2,353


-


2,353


-

Adjusted EBITDA

$ 24,208


$ 17,568


$ 86,724


$ 60,243









Reconciliation of GAAP net income to non-GAAP net income








Net income attributable to RCIHH common stockholders

$ 10,612


$ 2,300


$ 46,041


$ 30,336

Amortization of intangibles

1,994


49


2,118


258

Settlement of lawsuits

708


1,069


1,417


1,349

Impairment of assets

166


11,940


1,888


13,612

Gain on sale of businesses and assets

(1,709)


(67)


(2,375)


(522)

Costs and charges related to debt refinancing

-


694


-


694

Gain on debt extinguishment

-


-


(138)


(5,329)

Unrealized loss on equity securities

(1)


26


-


84

Gain on insurance

(55)


(1,044)


(463)


(1,253)

Stock-based compensation

2,353


-


2,353


-

Change in deferred tax asset valuation allowance

-


(632)


343


(632)

Net income tax effect

(670)


(143)


(729)


(1,845)

Non-GAAP net income

$ 13,398


$ 14,192


$ 50,455


$ 36,752









Reconciliation of GAAP diluted earnings per share to non-GAAP diluted earnings per share





Diluted shares

9,249,864


8,999,910


9,383,445


9,004,744

GAAP diluted earnings per share

$ 1.15


$ 0.26


$ 4.91


$ 3.37

Amortization of intangibles

0.22


0.01


0.23


0.03

Settlement of lawsuits

0.08


0.12


0.15


0.15

Impairment of assets

0.02


1.33


0.20


1.51

Gain on sale of businesses and assets

(0.18)


(0.01)


(0.25)


(0.06)

Costs and charges related to debt refinancing

-


0.08


-


0.08

Gain on debt extinguishment

-


-


(0.01)


(0.59)

Unrealized loss on equity securities

(0.00)


0.00


-


0.01

Gain on insurance

(0.01)


(0.12)


(0.05)


(0.14)

Stock-based compensation

0.25


-


0.25


-

Change in deferred tax asset valuation allowance

-


(0.07)


0.04


(0.07)

Net income tax effect

(0.07)


(0.02)


(0.08)


(0.20)

Non-GAAP diluted earnings per share

$ 1.45


$ 1.58


$ 5.38


$ 4.08









Reconciliation of GAAP operating income to non-GAAP operating income







Income from operations

$ 17,960


$ 3,617


$ 71,459


$ 38,548

Amortization of intangibles

1,994


49


2,118


258

Settlement of lawsuits

708


1,069


1,417


1,349

Impairment of assets

166


11,940


1,888


13,612

Gain on sale of businesses and assets

(1,709)


(67)


(2,375)


(522)

Costs and charges related to debt refinancing

-


57


-


57

Gain on insurance

(55)


(1,044)


(463)


(1,253)

Stock-based compensation

2,353


-


2,353


-

Non-GAAP operating income

$ 21,417


$ 15,621


$ 76,397


$ 52,049









Reconciliation of GAAP operating margin to non-GAAP operating margin







GAAP operating margin

25.2 %


6.6 %


26.7 %


19.7 %

Amortization of intangibles

2.8 %


0.1 %


0.8 %


0.1 %

Settlement of lawsuits

1.0 %


1.9 %


0.5 %


0.7 %

Impairment of assets

0.2 %


21.7 %


0.7 %


7.0 %

Gain on sale of businesses and assets

-2.4 %


-0.1 %


-0.9 %


-0.3 %

Costs and charges related to debt refinancing

0.0 %


0.1 %


0.0 %


0.0 %

Gain on insurance

-0.1 %


-1.9 %


-0.2 %


-0.6 %

Stock-based compensation

3.3 %


0.0 %


0.9 %


0.0 %

Non-GAAP operating margin

30.0 %


28.4 %


28.5 %


26.7 %









Reconciliation of net cash provided by operating activities to free cash flow







Net cash provided by operating activities

$ 17,755


$ 9,774


$ 64,509


$ 41,991

Less: Maintenance capital expenditures

3,213


1,299


5,598


5,907

Free cash flow

$ 14,542


$ 8,475


$ 58,911


$ 36,084

RCI HOSPITALITY HOLDINGS, INC.

SEGMENT INFORMATION

(in thousands)










For the Three Months Ended


For the Twelve Months Ended


September 30,


September 30,


September 30,


September 30,


2022


2021


2022


2021

Revenues








Nightclubs

$ 56,612


$ 40,333


$ 206,251


$ 137,348

Bombshells

14,032


14,403


59,925


56,621

Other

734


205


1,444


1,289


$ 71,378


$ 54,941


$ 267,620


$ 195,258









Income (loss) from operations








Nightclubs

$ 22,477


$ 6,502


$ 82,798


$ 43,815

Bombshells

2,169


3,001


11,504


13,264

Other

216


(72)


57


35

Corporate

(6,902)


(5,814)


(22,900)


(18,566)


$ 17,960


$ 3,617


$ 71,459


$ 38,548

RCI HOSPITALITY HOLDINGS, INC.

NON-GAAP SEGMENT INFORMATION

($ in thousands)






















For the Three Months Ended September 30, 2022


For the Three Months Ended September 30, 2021


Nightclubs


Bombshells


Other


Corporate


Total


Nightclubs


Bombshells


Other


Corporate


Total

Income (loss) from operations

$ 22,477


$ 2,169


$ 216


$ (6,902)


$ 17,960


$ 6,502


$ 3,001


$ (72)


$ (5,814)


$ 3,617

Amortization of intangibles

1,925


1


61


7


1,994


46


3


-


-


49

Stock-based compensation

-


-


-


2,353


2,353


-


-


-


-


-

Settlement of lawsuits

709


-


-


(1)


708


38


21


-


1,010


1,069

Costs and charges related to debt refinancing

-


-


-


-


-


17


-


-


40


57

Impairment of assets

166


-


-


-


166


11,940


-


-


-


11,940

Loss (gain) on sale of businesses and assets

(1,666)


-


-


(43)


(1,709)


(82)


16


-


(1)


(67)

Gain on insurance

(55)


-


-


-


(55)


(1,044)


-


-


-


(1,044)

Non-GAAP operating income (loss)

$ 23,556


$ 2,170


$ 277


$ (4,586)


$ 21,417


$ 17,417


$ 3,041


$ (72)


$ (4,765)


$ 15,621





















GAAP operating margin

39.7 %


15.5 %


29.4 %


-9.7 %


25.2 %


16.1 %


20.8 %


-35.1 %


-10.6 %


6.6 %

Non-GAAP operating margin

41.6 %


15.5 %


37.7 %


-6.4 %


30.0 %


43.2 %


21.1 %


-35.1 %


-8.7 %


28.4 %










































For the Twelve Months Ended September 30, 2022


For the Twelve Months Ended September 30, 2021


Nightclubs


Bombshells


Other


Corporate


Total


Nightclubs


Bombshells


Other


Corporate


Total

Income (loss) from operations

$ 82,798


$ 11,504


$ 57


$ (22,900)


$ 71,459


$ 43,815


$ 13,264


$ 35


$ (18,566)


$ 38,548

Amortization of intangibles

2,042


6


61


9


2,118


187


14


57


-


258

Stock-based compensation

-


-


-


2,353


2,353


-


-


-


-


-

Settlement of lawsuits

1,287


18


-


112


1,417


275


59


5


1,010


1,349

Costs and charges related to debt refinancing

-


-


-


-


-


17


-


-


40


57

Impairment of assets

1,238


650


-


-


1,888


13,612


-


-


-


13,612

Loss (gain) on sale of businesses and assets

(2,010)


17


-


(382)


(2,375)


(580)


72


-


(14)


(522)

Gain on insurance

(463)


-


-


-


(463)


(1,209)


-


-


(44)


(1,253)

Non-GAAP operating income (loss)

$ 84,892


$ 12,195


$ 118


$ (20,808)


$ 76,397


$ 56,117


$ 13,409


$ 97


$ (17,574)


$ 52,049





















GAAP operating margin

40.1 %


19.2 %


3.9 %


-8.6 %


26.7 %


31.9 %


23.4 %


2.7 %


-9.5 %


19.7 %

Non-GAAP operating margin

41.2 %


20.4 %


8.2 %


-7.8 %


28.5 %


40.9 %


23.7 %


7.5 %


-9.0 %


26.7 %

RCI HOSPITALITY HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)










For the Three Months Ended


For the Twelve Months Ended


September 30,
2022


September 30,
2021


September 30,
2022


September 30,
2021

CASH FLOWS FROM OPERATING ACTIVITIES








Net income

$ 10,581


$ 2,288


$ 46,060


$ 30,150

Adjustments to reconcile net income to net cash








provided by operating activities:








Depreciation and amortization

4,755


2,041


12,391


8,238

Deferred income tax benefit

3,489


(823)


3,080


(1,253)

Gain on sale of businesses and assets

(1,688)


(88)


(2,970)


(714)

Impairment of assets

166


11,940


1,888


13,612

Unrealized loss (gain) on equity securities

(1)


26


-


84

Amortization of debt discount and issuance costs

115


151


314


311

Gain on debt extinguishment

-


-


(83)


(5,298)

Stock-based compensation

2,353


-


2,353


-

Noncash lease expense

882


447


2,607


1,729

Gain on insurance

(55)


(1,043)


(463)


(1,337)

Doubtful accounts expense (reversal) on notes receivable

-


(58)


753


(80)

Changes in operating assets and liabilities:








Accounts receivable

(3,586)


(5,078)


(175)


(769)

Inventories

(62)


(180)


(554)


(287)

Prepaid expenses, other current assets and other assets

3,658


1,774


387


4,120

Accounts payable, accrued and other liabilities

(2,852)


(1,623)


(1,079)


(6,515)

Net cash provided by operating activities

17,755


9,774


64,509


41,991

CASH FLOWS FROM INVESTING ACTIVITIES








Proceeds from sale of businesses and assets

6,058


2,202


10,669


5,415

Proceeds from insurance

133


858


648


1,152

Proceeds from notes receivable

55


35


182


130

Payments for property and equipment and intangible assets

(6,830)


(2,723)


(24,003)


(13,511)

Acquisition of businesses, net of cash acquired

(10,991)


-


(55,293)


-

Net cash provided by (used in) investing activities

(11,575)


372


(67,797)


(6,814)

CASH FLOWS FROM FINANCING ACTIVITIES








Proceeds from debt obligations

-


36,314


35,820


38,490

Payments on debt obligations

(4,180)


(38,333)


(14,894)


(49,178)

Purchase of treasury stock

(3,040)


-


(15,097)


(1,794)

Payment of dividends

(462)


(360)


(1,784)


(1,440)

Payment of loan origination costs

(18)


(1,149)


(463)


(1,174)

Net cash provided by (used in) financing activities

(7,700)


(3,528)


3,582


(15,096)

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

(1,520)


6,618


294


20,081

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD

37,500


29,068


35,686


15,605

CASH AND CASH EQUIVALENTS AT END OF PERIOD

$ 35,980


$ 35,686


$ 35,980


$ 35,686

RCI HOSPITALITY HOLDINGS, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands)






September 30,


September 30,


2022


2021

ASSETS




Current assets




Cash and cash equivalents

$ 35,980


$ 35,686

Accounts receivable, net

8,510


7,570

Current portion of notes receivable

230


220

Inventories

3,893


2,659

Prepaid expenses and other current assets

1,499


1,928

Assets held for sale

1,049


4,887

Total current assets

51,161


52,950

Property and equipment, net

224,615


175,952

Operating lease right-of-use assets, net

37,048


24,308

Notes receivable, net of current portion

4,691


2,839

Goodwill

67,767


39,379

Intangibles, net

144,049


67,824

Other assets

1,407


1,367

Total assets

$ 530,738


$ 364,619





LIABILITIES AND EQUITY




Current liabilities




Accounts payable

$ 5,482


$ 4,408

Accrued liabilities

11,328


10,403

Current portion of long-term debt, net

11,896


6,434

Current portion of operating lease liabilities

2,795


1,780

Total current liabilities

31,501


23,025

Deferred tax liability, net

30,562


19,137

Long-term debt, net of current portion and debt discount and issuance costs

190,567


118,734

Operating lease liabilities, net of current portion

36,001


24,150

Other long-term liabilities

349


350

Total liabilities

288,980


185,396





Commitments and contingencies








Equity




Preferred stock

-


-

Common stock

92


90

Additional paid-in capital

67,227


50,040

Retained earnings

173,950


129,693

Total RCIHH stockholders' equity

241,269


179,823

Noncontrolling interests

489


(600)

Total equity

241,758


179,223

Total liabilities and equity

$ 530,738


$ 364,619

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/rci-reports-4q22-results-total-revenues-71-4m-gaap-eps-1-15--non-gaap-eps-1-45--301703407.html

SOURCE RCI Hospitality Holdings, Inc.



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