EX-99.1 2 ex99-1.htm

 

Exhibit 99.1

 

 

RCI Reports Record Fourth Quarter Revenues, Annual Revenues, and Cash Generation

 

HOUSTON—December 14, 2021—RCI Hospitality Holdings, Inc. (Nasdaq: RICK) today reported results for the fiscal 2021 fourth quarter and year ended September 30, 2021, and filed its Form 10-K.

 

4Q21 Highlights   FY21 Highlights
         
● Total revenues of $54.9 million vs. $28.8 million in 4Q20   ● Total revenues of $195.3 million vs. $132.3 million in FY20
● EPS of $0.26 vs. loss per share of $0.31 in 4Q20   ● EPS of $3.37 vs. loss per share of $0.66 in FY20
● Non-GAAP EPS* of $1.58 vs. $0.15 in 4Q20   ● Non-GAAP EPS* of $4.08 vs. $0.51 in FY20
● Net cash from operating activities of $9.8 million and free cash flow* of $8.5 million   ● Net cash from operating activities of $42.0 million and free cash flow* of $36.1 million
● Net income of $2.3 million vs. net loss of $2.9 million in 4Q20   ● Net income of $30.2 million vs. net loss of $6.3 million in FY20
● Adjusted EBITDA* of $17.6 million vs. $4.4 million in 4Q20   ● Adjusted EBITDA* of $60.2 million vs. $22.4 million in FY20
● $35.7 million cash and equivalents at 9/30/21      

 

4Q21 and FY21 included non-cash impairments of $11.9 million and $13.6 million, respectively. While most clubs rebounded significantly throughout the year, the full year contribution from clubs in certain locations with more stringent COVID-19 restrictions did not recover as fast as previously projected.

 

Eric Langan, President and CEO of RCI Hospitality Holdings, Inc., stated: “We ended FY21 with record fourth quarter revenues, annual revenues, and cash generation. A special thanks to our teams for their outstanding performance managing COVID-19 restrictions, reopening challenges earlier in the year, the Delta variant, inflation, and labor issues in the fourth quarter. We’re working full steam ahead on executing our plan for FY22. This includes improving the customer experience at our new club acquisitions, scouting for new clubs to buy, the recent opening of our new company-owned Bombshells Arlington, the upcoming opening of our franchisee-owned Bombshells San Antonio, developing new company-owned and franchised Bombshells locations, and launching our AdmireMe mobile friendly site.”

 

Conference Call Today at 4:30 PM ET

 

●Live Participant Phone: Toll Free 888-506-0062, International 973-528-0011, Passcode: 484746
●Live webcast, slides or replay link: https://www.webcaster4.com/Webcast/Page/2209/43856
●Phone replay: Toll Free 877-481-4010, International 919-882-2331, Passcode: 43856

 

Meet Management Tonight at 6:00 PM ET

 

●Investors are invited to meet management at one of RCI’s top revenue generating clubs
●Rick’s Cabaret New York, 50 W. 33rd Street, New York, NY, between Fifth Avenue and Broadway
●RSVP your contact information to gary.fishman@anreder.com by 5:00 PM ET today

 

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4Q21 Segments

 

●Nightclubs: 4Q21 revenues of $40.3 million, operating margin of 16.1% (43.2% non-GAAP), and income from operations of $6.5 million ($17.4 million non-GAAP), with 36 clubs open the full quarter. Florida clubs did particularly well. Higher-margin service revenues continued to grow. GAAP results included the previously mentioned $11.9 million impairment and a $1.0 million gain on insurance. 4Q21 improved significantly compared to 4Q20 when 16 clubs were open the full quarter and 34 by quarter end, reflecting COVID restrictions. Compared to pre-COVID 4Q19, 4Q21 revenues increased 12% and income from operations increased 4% (58% non-GAAP).
●Bombshells: 4Q21 revenues of $14.4 million, operating margin of 20.8%, and income from operations of $3.0 million. All 10 locations were open the full quarter. This compares to 4Q20 revenues of $15.5 million, operating margin of 33.0%, and income from operations of $5.1 million, when sales benefitted from an unusually strong sports schedule and Bombshells being one of the few venues open in its markets. Compared to pre-COVID 4Q19, revenues increased 69% on 25% more units and operating margin expanded 11.9 percentage points.

 

4Q21 Consolidated (comparisons to 4Q20 and % are of total revenues unless indicated otherwise)

 

●Margin improvements in cost of goods sold (14.9% vs. 15.6%), salaries and wages (25.6% vs. 28.5%), and SG&A (27.6% vs. 41.0%) primarily reflected higher Nightclubs sales and cost-saving initiatives.
●Other charges of $11.9 million included the previously mentioned impairment and $1.0 million from settlement of lawsuits, partially offset by other gains of $1.0 million from insurance.
●Operating margin was 6.6% vs. 0.7%. Non-GAAP operating margin was 28.4% vs. 8.0%.
●Interest expense increased $0.5 million due to costs and charges related to the previously announced debt refinancing, but declined as a percentage of revenues, to 5.3% from 8.4%.
●Income taxes were a benefit of $1.6 million compared to an expense of $0.8 million. Both periods adjusted for the full year tax rate. 4Q21 also included $0.6 million benefit from a change in deferred tax asset valuation allowance.
●Debt was $125.2 million at 9/30/21 compared to $127.6 million at 6/30/21. This reflected scheduled paydowns and a $1.2 million paydown related to a sold property.

 

FY21 vs. FY20

 

●Total revenues increased 48% to $195.3 million, primarily due to a 55% increase in Nightclubs to $137.3 million and a 31% increase in Bombshells to a record $56.6 million.
●Compared to FY20, which was more severely affected by COVID-19 restrictions, most clubs opened to their full capacity and operating hours over the course of FY21, while Bombshells restaurants opened to their full capacity and operating hours as of the first half of March 2021.
●As a result, operating margin expanded to 19.7% from 2.1% of revenues. On a non-GAAP basis, which excludes the previously-mentioned $13.6 million impairment and other charges (gains), operating margin expanded to 26.7% from 10.5% of revenues.

 

Note

 

●As of the release of this report, we do not know the future extent and duration of the impact of COVID-19 on our businesses. We will continually monitor and evaluate our cash flow situation to determine whether any measures need to be instituted.
●All references to the “company,” “we,” “our,” and similar terms include RCI Hospitality Holdings, Inc., and its subsidiaries, unless the context indicates otherwise.

 

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*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, and (e) 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) impairment of assets, (c) costs and charges related to debt refinancing, (d) gains or losses on sale of businesses and assets, (e) gains or losses on insurance, (f) unrealized loss on equity securities, (g) settlement of lawsuits, (h) gain on debt extinguishment, (i) the income tax effect of the above-described adjustments, and (j) 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 13.5%, 26.0%, and 15.5% effective tax rate of the pre-tax non-GAAP income before taxes for the 2021, 2020, and 2019, 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, and (i) gain on debt extinguishment. 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) www.rcihospitality.com

 

With more than 50 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-Fort Worth, Houston, Miami, Minneapolis, Denver, St. Louis, Charlotte, Pittsburgh, Raleigh, Louisville, 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.

 

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 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 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, 2021, 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

 

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RCI HOSPITALITY HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share and percentage data)

 

   For the Three Months Ended September 30,   For the Twelve Months Ended September 30, 
   2021   2020   2021   2020 
   Amount   % of
Revenue		   Amount   % of
Revenue		   Amount   % of
Revenue		   Amount   % of
Revenue		 
Revenues                                
Sales of alcoholic beverages  $23,960    43.6%  $13,795    47.9%  $86,685    44.4%  $59,080    44.6%
Sales of food and merchandise   10,906    19.9%   7,082    24.6%   41,111    21.1%   24,460    18.5%
Service revenues   17,019    31.0%   6,714    23.3%   55,461    28.4%   41,162    31.1%
Other   3,056    5.6%   1,195    4.2%   12,001    6.1%   7,625    5.8%
Total revenues   54,941    100.0%   28,786    100.0%   195,258    100.0%   132,327    100.0%
Operating expenses                                        
Cost of goods sold                                        
Alcoholic beverages sold   4,270    17.8%   2,271    16.5%   15,883    18.3%   11,097    18.8%
Food and merchandise sold   3,833    35.1%   2,167    30.6%   13,794    33.6%   8,141    33.3%
Service and other   70    0.3%   49    0.6%   374    0.6%   197    0.4%
Total cost of goods sold (exclusive of items shown below)   8,173    14.9%   4,487    15.6%   30,051    15.4%   19,435    14.7%
Salaries and wages   14,071    25.6%   8,204    28.5%   50,627    25.9%   39,070    29.5%
Selling, general and administrative   15,141    27.6%   11,803    41.0%   54,608    28.0%   51,692    39.1%
Depreciation and amortization   2,041    3.7%   2,140    7.4%   8,238    4.2%   8,836    6.7%
Other charges (gains), net   11,898    21.7%   1,960    6.8%   13,186    6.8%   10,548    8.0%
Total operating expenses   51,324    93.4%   28,594    99.3%   156,710    80.3%   129,581    97.9%
Income from operations   3,617    6.6%   192    0.7%   38,548    19.7%   2,746    2.1%
Other income (expenses)                                        
Interest expense   (2,913)   -5.3%   (2,408)   -8.4%   (9,992)   -5.1%   (9,811)   -7.4%
Interest income   59    0.1%   61    0.2%   253    0.1%   324    0.2%
Non-operating gains (losses), net   (26)   0.0%   39    0.1%   5,330    2.7%   (64)   0.0%
Income (loss) before income taxes   737    1.3%   (2,116)   -7.4%   34,139    17.5%   (6,805)   -5.1%
Income tax expense (benefit)   (1,551)   -2.8%   769    2.7%   3,989    2.0%   (493)   -0.4%
Net income (loss)   2,288    4.2%   (2,885)   -10.0%   30,150    15.4%   (6,312)   -4.8%
Net loss attributable to noncontrolling interests   12    0.0%   92    0.3%   186    0.1%   227    0.2%
Net income (loss) attributable to RCIHH common shareholders  $2,300    4.2%  $(2,793)   -9.7%  $30,336    15.5%  $(6,085)   -4.6%
                                         
Earnings (loss) per share                                        
Basic and diluted  $0.26        $(0.31)       $3.37        $(0.66)     
                                         
Weighted average shares outstanding                                        
Basic and diluted   9,000         9,124         9,005         9,199      
                                         
Dividends per share  $0.04        $0.03        $0.16        $0.14      

 

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RCI HOSPITALITY HOLDINGS, INC.

NON-GAAP FINANCIAL MEASURES

(in thousands, except per share and percentage data)

 

   For the Three Months   For the Twelve Months 
   Ended September 30,   Ended September 30, 
   2021   2020   2021   2020 
Reconciliation of GAAP net income (loss) to Adjusted EBITDA                    
Net income (loss) attributable to RCIHH common stockholders  $2,300   $(2,793)  $30,336   $(6,085)
Income tax expense (benefit)   (1,551)   769    3,989    (493)
Interest expense, net   2,854    2,347    9,739    9,487 
Settlement of lawsuits   1,069    100    1,349    174 
Impairment of assets   11,940    1,423    13,612    10,615 
Gain on sale of businesses and assets   (67)   (16)   (522)   (661)
Gain on debt extinguishment   -    -    (5,329)   - 
Unrealized loss (gain) on equity securities   26    (39)   84    64 
Loss (gain) on insurance   (1,044)   453    (1,253)   420 
Depreciation and amortization   2,041    2,140    8,238    8,836 
Adjusted EBITDA  $17,568   $4,384   $60,243   $22,357 
                     
Reconciliation of GAAP net income (loss) to non-GAAP net income                    
Net income (loss) attributable to RCIHH common stockholders  $2,300   $(2,793)  $30,336   $(6,085)
Amortization of intangibles   49    147    258    609 
Settlement of lawsuits   1,069    100    1,349    174 
Impairment of assets   11,940    1,423    13,612    10,615 
Gain on sale of businesses and assets   (67)   (16)   (522)   (661)
Gain on debt extinguishment   -    -    (5,329)   - 
Unrealized loss (gain) on equity securities   26    (39)   84    64 
Loss (gain) on insurance   (1,044)   453    (1,253)   420 
Costs and charges related to debt refinancing   694    -    694    - 
Change in deferred tax asset valuation allowance   (632)   1,273    (632)   1,273 
Net income tax effect   (143)   799    (1,845)   (1,700)
Non-GAAP net income  $14,192   $1,347   $36,752   $4,709 
                     
Reconciliation of GAAP diluted earnings (loss) per share to non-GAAP diluted earnings per share                    
Diluted shares   9,000    9,124    9,005    9,199 
GAAP diluted earnings (loss) per share  $0.26   $(0.31)  $3.37   $(0.66)
Amortization of intangibles   0.01    0.02    0.03    0.07 
Settlement of lawsuits   0.12    0.01    0.15    0.02 
Impairment of assets   1.33    0.16    1.51    1.15 
Gain on sale of businesses and assets   (0.01)   (0.00)   (0.06)   (0.07)
Gain on debt extinguishment   -    -    (0.59)   - 
Unrealized loss (gain) on equity securities   0.00    (0.00)   0.01    0.01 
Loss (gain) on insurance   (0.12)   0.05    (0.14)   0.05 
Costs and charges related to debt refinancing   0.08    -    0.08    - 
Change in deferred tax asset valuation allowance   (0.07)   0.14    (0.07)   0.14 
Net income tax effect   (0.02)   0.09    (0.20)   (0.18)
Non-GAAP diluted earnings per share  $1.58   $0.15   $4.08   $0.51 
                     
Reconciliation of GAAP operating income to non-GAAP operating income                    
Income (loss) from operations  $3,617   $192   $38,548   $2,746 
Amortization of intangibles   49    147    258    609 
Settlement of lawsuits   1,069    100    1,349    174 
Impairment of assets   11,940    1,423    13,612    10,615 
Gain on sale of businesses and assets   (67)   (16)   (522)   (661)
Costs and charges related to debt refinancing   57    -    57    - 
Loss (gain) on insurance   (1,044)   453    (1,253)   420 
Non-GAAP operating income  $15,621   $2,299   $52,049   $13,903 
                     
Reconciliation of GAAP operating margin to non-GAAP operating margin                    
GAAP operating margin   6.6%   0.7%   19.7%   2.1%
Amortization of intangibles   0.1%   0.5%   0.1%   0.5%
Settlement of lawsuits   1.9%   0.3%   0.7%   0.1%
Impairment of assets   21.7%   4.9%   7.0%   8.0%
Gain on sale of businesses and assets   -0.1%   -0.1%   -0.3%   -0.5%
Costs and charges related to debt refinancing   0.1%   0.0%   0.0%   0.0%
Loss (gain) on insurance   -1.9%   1.6%   -0.6%   0.3%
Non-GAAP operating margin   28.4%   8.0%   26.7%   10.5%
                     
Reconciliation of net cash provided by operating activities to free cash flow                    
Net cash provided by operating activities  $9,774   $3,485   $41,991   $15,632 
Less: Maintenance capital expenditures   1,299    40    5,907    2,151 
Free cash flow  $8,475   $3,445   $36,084   $13,481 

 

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RCI HOSPITALITY HOLDINGS, INC.

SEGMENT INFORMATION

(in thousands)

 

   For the Three Months   For the Twelve Months 
   Ended September 30,   Ended September 30, 
   2021   2020   2021   2020 
Revenues                
Nightclubs  $40,333   $13,134   $137,348   $88,373 
Bombshells   14,403    15,531    56,621    43,215 
Other   205    121    1,289    739 
   $54,941   $28,786   $195,258   $132,327 
                     
Income (loss) from operations                    
Nightclubs  $6,502   $54   $43,815   $13,056 
Bombshells   3,001    5,128    13,264    9,237 
Other   (72)   (191)   35    (614)
General corporate   (5,814)   (4,799)   (18,566)   (18,933)
   $3,617   $192   $38,548   $2,746 

 

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RCI HOSPITALITY HOLDINGS, INC.

NON-GAAP SEGMENT INFORMATION

($ in thousands)

 

   For the Three Months Ended September 30, 2021   For the Three Months Ended September 30, 2020 
   Nightclubs   Bombshells   Other   Corporate   Total   Nightclubs   Bombshells   Other   Corporate   Total 
Income (loss) from operations  $6,502   $3,001   $(72)  $(5,814)  $3,617   $54   $5,128   $(191)  $(4,799)  $192 
Amortization of intangibles   46    3    -    -    49    48    4    96    -    148 
Settlement of lawsuits   38    21    -    1,010    1,069    100    -    -    -    100 
Impairment of assets   11,940    -    -    -    11,940    1,423    -    -    -    1,423 
Costs and charges related to debt refinancing   17    -    -    40    57    -    -    -    -    - 
Loss (gain) on sale of businesses and assets   (82)   16    -    (1)   (67)   (20)   -    -    3    (17)
Loss (gain) on insurance   (1,044)   -    -    -    (1,044)   453    -    -    -    453 
Non-GAAP operating income (loss)  $17,417   $3,041   $(72)  $(4,765)  $15,621   $2,058   $5,132   $(95)  $(4,796)  $2,299 
                                                   
GAAP operating margin   16.1%   20.8%   -35.1%   -10.6%   6.6%   0.4%   33.0%   -157.9%   -16.7%   0.7%
Non-GAAP operating margin   43.2%   21.1%   -35.1%   -8.7%   28.4%   15.7%   33.0%   -78.5%   -16.7%   8.0%

 

   For the Twelve Months Ended September 30, 2021   For the Twelve Months Ended September 30, 2020 
   Nightclubs   Bombshells   Other   Corporate   Total   Nightclubs   Bombshells   Other   Corporate   Total 
Income (loss) from operations  $43,815   $13,264   $35   $(18,566)  $38,548   $13,056   $9,237   $(614)  $(18,933)  $2,746 
Amortization of intangibles   187    14    57    -    258    211    15    383    -    609 
Settlement of lawsuits   275    59    5    1,010    1,349    174    -    -    -    174 
Impairment of assets   13,612    -    -    -    13,612    10,370    245    -    -    10,615 
Costs and charges related to debt refinancing   17    -    -    40    57    -    -    -    -    - 
Loss (gain) on sale of businesses and assets   (580)   72    -    (14)   (522)   (639)   16    -    (38)   (661)
Loss (gain) on insurance   (1,209)   -    -    (44)   (1,253)   433    -    -    (13)   420 
Non-GAAP operating income (loss)  $56,117   $13,409   $97   $(17,574)  $52,049   $23,605   $9,513   $(231)  $(18,984)  $13,903 
                                                   
GAAP operating margin   31.9%   23.4%   2.7%   -9.5%   19.7%   14.8%   21.4%   -83.1%   -14.3%   2.1%
Non-GAAP operating margin   40.9%   23.7%   7.5%   -9.0%   26.7%   26.7%   22.0%   -31.3%   -14.3%   10.5%

 

7
 

 

RCI HOSPITALITY HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

   For the Three Months Ended   For the Twelve Months Ended 
   September 30,
2021		   September 30,
2020		   September 30,
2021		   September 30,
2020		 
CASH FLOWS FROM OPERATING ACTIVITIES                    
Net income (loss)  $2,288   $(2,885)  $30,150   $(6,312)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:                    
Depreciation and amortization   2,041    2,140    8,238    8,836 
Deferred income tax expense (benefit)   (823)   249    (1,253)   (1,268)
Gain on sale of businesses and assets   (88)   (28)   (714)   (777)
Impairment of assets   11,940    1,423    13,612    10,615 
Unrealized loss (gain) on equity securities   26    (39)   84    64 
Amortization and write-off of debt discount and issuance costs   151    42    311    236 
Gain on debt extinguishment   -    -    (5,298)   - 
Noncash lease expense   447    416    1,729    1,660 
Loss (gain) on insurance   (1,043)   629    (1,337)   596 
Doubtful accounts expense (reversal) on notes receivable   (58)   107    (80)   602 
Changes in operating assets and liabilities:                    
Accounts receivable   (5,078)   (241)   (769)   (294)
Inventories   (180)   255    (287)   226 
Prepaid expenses, other current assets, and other assets   1,774    (3,309)   4,120    1,633 
Accounts payable, accrued, and other liabilities   (1,623)   4,726    (6,515)   (185)
Net cash provided by operating activities   9,774    3,485    41,991    15,632 
CASH FLOWS FROM INVESTING ACTIVITIES                    
Proceeds from sale of businesses and assets   2,202    180    5,415    2,221 
Proceeds from insurance   858    -    1,152    945 
Proceeds from notes receivable   35    21    130    1,576 
Payments for property and equipment and intangible assets   (2,723)   (171)   (13,511)   (5,736)
Net cash provided by (used in) investing activities   372    30    (6,814)   (994)
CASH FLOWS FROM FINANCING ACTIVITIES                    
Proceeds from debt obligations   36,314    -    38,490    6,503 
Payments on debt obligations   (38,333)   (1,343)   (49,178)   (8,832)
Purchase of treasury stock   -    (996)   (1,794)   (9,484)
Payment of dividends   (360)   (366)   (1,440)   (1,286)
Payment of loan origination costs   (1,174)   -    (1,174)   - 
Distribution to noncontrolling interests   -    -    -    (31)
Net cash used in financing activities   (3,553)   (2,705)   (15,096)   (13,130)
NET INCREASE IN CASH AND CASH EQUIVALENTS   6,593    810    20,081    1,508 
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD   29,093    14,795    15,605    14,097 
CASH AND CASH EQUIVALENTS AT END OF PERIOD  $35,686   $15,605   $35,686   $15,605 

 

8
 

 

RCI HOSPITALITY HOLDINGS, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands)

   September 30,   September 30, 
   2021   2020 
ASSETS          
Current assets          
Cash and cash equivalents  $35,686   $15,605 
Accounts receivable, net   7,570    6,767 
Current portion of notes receivable   220    201 
Inventories   2,659    2,372 
Prepaid expenses and other current assets   1,928    6,488 
Assets held for sale   4,887    - 
Total current assets   52,950    31,433 
Property and equipment, net   175,952    181,383 
Operating lease right-of-use assets, net   24,308    25,546 
Notes receivable, net of current portion   2,839    2,908 
Goodwill   39,379    45,686 
Intangibles, net   67,824    73,077 
Other assets   1,367    900 
Total assets  $364,619   $360,933 
           
LIABILITIES AND EQUITY          
Current liabilities          
Accounts payable  $4,408   $4,799 
Accrued liabilities   10,403    14,573 
Current portion of long-term debt, net   6,434    16,304 
Current portion of operating lease liabilities   1,780    1,628 
Total current liabilities   23,025    37,304 
Deferred tax liability, net   19,137    20,390 
Long-term debt, net of current portion and debt discount and issuance costs   118,734    125,131 
Operating lease liabilities, net of current portion   24,150    25,439 
Other long-term liabilities   350    362 
Total liabilities   185,396    208,626 
           
Commitments and contingencies          
           
Equity          
Preferred stock   -    - 
Common stock   90    91 
Additional paid-in capital   50,040    51,833 
Retained earnings   129,693    100,797 
Total RCIHH stockholders’ equity   179,823    152,721 
Noncontrolling interests   (600)   (414)
Total equity   179,223    152,307 
Total liabilities and equity  $364,619   $360,933 

 

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