RCI Hospitality (RICK)
Solid 1Q22 Sets the Table for Fiscal 2022
RCI Hospitality Holdings, Inc. through its subsidiaries owns and operates establishments that offer live adult entertainment, restaurant, and/or bar operations. The company also owns and operates a communication company serving the adult nightclubs industry. RCI’s operating business segments includes Nightclubs and Bombshells restaurants and bars. It operates nightclubs through the following brands: Rick’s Cabaret, Vivid Cabaret, Tootsie’s Cabaret, Club Onyx, and Jaguars Club. In the restaurants segment, the company is building a chain of Bombshells Restaurants and Sports Bars in Dallas, Austin, and Houston, Texas.
Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.
Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.
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1Q22 Results. Revenue came in at $61.8 million, net income at $10.6 million, or $1.12 per share, and adjusted EBITDA at $18 million. In the year ago quarter, RCI reported revenue of $38.4 million, net income of $9.6 million, or $1.07 per share, and adjusted EBITDA of $8.7 million. We had forecast revenue of $61.5 million, net income of $10.3 million, or $1.09 per share, and adjusted EBIDA of $18.3 million.
Nightclubs. A combination of the acquired locations and ongoing improvement at existing clubs resulted in revenue of $46.8 million, up 85.7%. The new clubs contributed $6.3 million to the top-line. Ongoing rebound in high margin service revenue resulted in segment operating margin of 40.1%, up from 33.7% last year …
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*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.