Tuesday, May 10, 2022
RCI Hospitality Holdings (RICK)
Momentum Continues to Build
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.
Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.
Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
2Q22 Results. Revenue hit a record $63.7 million, up 3.0% sequentially and up 44.6% y-o-y. Omicron cut quarterly revenue by an estimated $2 million. We had projected $65.3 million of revenue. Net income was $11.0 million, or $1.15 per share, compared to $6.1 million, or $0.68 per share last year. We were at $11.6 million, or $1.22 per share.
Club Acquisitions and Growth. RCI just acquired another South Florida club for $16 million, or 4.1x club EBITDA and is under contract to purchase a club in Ft. Worth, TX. In addition, the rebranded Louisiana club was opened in March and the reformatted San Antonio club will open in the third quarter. …
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*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.
