Core Viewpoint - Rogers Communication (RCI) is anticipated to report a year-over-year increase in earnings despite a decline in revenues for the quarter ending December 2024, with the actual results being crucial for its near-term stock price movement [1][2]. Earnings Expectations - The consensus estimate for quarterly earnings is $0.95 per share, reflecting a year-over-year increase of +9.2%, while revenues are projected to be $3.76 billion, a decrease of 4% from the previous year [3]. - The consensus EPS estimate has been revised down by 2.37% over the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate for Rogers Communication is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +1.80% [10][11]. - However, the company currently holds a Zacks Rank of 4, complicating the prediction of an earnings beat [11]. Historical Performance - In the last reported quarter, Rogers Communication was expected to post earnings of $1.07 per share but delivered $1.04, resulting in a surprise of -2.80% [12]. - Over the past four quarters, the company has exceeded consensus EPS estimates three times [13]. Market Reaction Factors - An earnings beat or miss alone may not dictate stock price movement, as other factors can influence investor sentiment [14]. - While betting on stocks expected to beat earnings can improve success odds, it is essential to consider other influencing factors before making investment decisions [15][16].

Core Viewpoint - RCI Hospitality Holdings, Inc. has successfully acquired Flight Club for a total of $11 million, which includes cash and seller financing, marking a strategic move to enhance its portfolio of high-end clubs [1][2]. Acquisition Details - The acquisition price consists of $3 million in cash, $5 million in seller financing at an 8% interest rate, and $3 million for the associated real estate [1]. - Flight Club is expected to contribute approximately $2 million in annualized adjusted EBITDA to RCI Hospitality's financials [2]. Property and Business Overview - The acquired property spans 10,000 square feet, is located in Inkster, MI, and has been recently renovated to provide upscale entertainment [3]. - The business is well-established and is anticipated to benefit from RCI Hospitality's marketing, purchasing, and operational expertise [3]. Strategic Focus - RCI Hospitality's "Back-to-Basics" approach aims to enhance business conditions and profitability in response to economic challenges, focusing on same-store sales and improving margins [4]. - The company has made significant progress with this plan, including share buybacks and divesting underperforming locations [5]. Future Plans - The company intends to concentrate on its core nightclub businesses and pursue additional acquisitions while improving the performance of existing Bombshells locations [6]. - RCI Hospitality expects to generate over $250 million in free cash flow over the next five years, with plans to allocate half for club acquisitions and debt repayment, and the other half for share buybacks and dividends [7]. Stock Performance - RCI Hospitality's shares have increased by 25.1% over the past three months, outperforming the Zacks Leisure and Recreation Services industry's growth of 7.4% [10]. - The company's consistent progress with its strategic initiatives is driving operational improvements and enhancing shareholder value [10].

Core Points - RCI Hospitality Holdings, Inc. has completed the acquisition of Flight Club, a premier gentlemen's club located in the Detroit market, for a total purchase price of $11.0 million [1][2] - The acquisition consists of $3.0 million in cash, $5.0 million in seller financing at an interest rate of 8.0%, and an additional $3.0 million in cash for associated real estate [2] - The company anticipates that the acquisition will contribute approximately $2.0 million in annualized adjusted EBITDA [2] Company Overview - RCI Hospitality Holdings, Inc. operates more than 60 locations and is recognized as a leading company in the adult nightclub and sports bar-restaurant industry in the United States [3] - The newly acquired Flight Club is a two-story, 10,000-square foot establishment that features upscale entertainment and a five-star kitchen, and is strategically located near major freeways and the Detroit Metro Airport [2][3] - The acquisition aligns with the company's 'Back to Basics' Capital Allocation Plan, which was recently launched [2]

Core Points - Rogers has entered a three-year agreement to be the official Presenting Partner of the Toronto International Film Festival (TIFF) and the People's Choice Award through 2027 [1][2] - The partnership aims to enhance the festival experience, including exclusive content for Canadians and VIP red carpet experiences for Rogers customers [1][3] - TIFF's 50th edition will take place from September 4 to 14, 2025, and will feature celebratory programming and events throughout the year [2][4] Company and Industry Insights - The expanded partnership builds on the success of TIFF '24, which attracted a record-breaking 700,000 attendees and featured numerous prominent filmmakers and stars [2] - TIFF is a not-for-profit cultural organization that generates an annual economic impact of CAD 200 million [6] - Rogers Communications Inc. is publicly traded on the Toronto Stock Exchange (TSX: RCI) and the New York Stock Exchange (NYSE: RCI) [5]

Core Insights - Favoritely.com is a new platform designed for the adult club industry, allowing fans to follow entertainers and arrange visits [2][3] - The service has received positive feedback during its initial beta phase in five clubs in Texas [1][2] - Entertainers on the platform retain 80% of their sales and can earn bonuses for recruiting new entertainers [3] Company Overview - RCI Hospitality Holdings, Inc. operates over 60 locations and is a leading company in adult nightclubs and sports bars-restaurants in the U.S. [3] - The platform is free for both users and entertainers, with entertainers setting their own subscription prices, typically around $4-5 per month [2][3] Future Plans - The company plans to expand Favoritely.com to more clubs, entertainers, and fans, aiming to enhance the service further [2]

Core Insights - The article emphasizes the investment philosophy focused on small cap companies, highlighting the importance of identifying mispriced securities through understanding financial drivers and utilizing DCF model valuation [1]. Group 1: Investment Philosophy - The investment approach is not confined to traditional categories such as value, dividend, or growth investing, but rather considers all prospects of a stock to assess risk-to-reward [1]. Group 2: Market Focus - The investment strategy encompasses markets in the US, Canada, and Europe, indicating a broad geographical focus for potential investment opportunities [1].

Company Overview - RCI Hospitality Holdings, Inc. (RICK) provided an update on its business for the first quarter of fiscal 2025, expecting to release results by February 10, 2025, with shares declining 1.3% following the news [1] Revenue Details - RICK reported total sales of $70.9 million in the fiscal first quarter, a decline of 3.3% year over year, while same-store sales rose 2.3% year over year [2] - Sales from Nightclubs amounted to $61.3 million, reflecting a 1.2% year-over-year increase, influenced by the addition of three new and reformatted clubs in Texas and the loss of a club due to a fire in July 2024 [2] Bombshells Performance - Bombshells reported sales of $9.6 million in the latest quarter, marking a year-over-year decline of 24.7%, impacted by the closure of five locations and a significant decline in same-store sales of 7.5% [3] Stock Performance - RICK's shares have lost 46.9% in the past six months, contrasting with the industry's growth of 9.9% [4] Zacks Rank and Comparisons - RICK currently holds a Zacks Rank 5 (Strong Sell), while Lindblad Expeditions Holdings, Inc. (LIND) has a Zacks Rank 1 (Strong Buy) [5] - Other companies in the sector, such as Norwegian Cruise Line Holdings Ltd. (NCLH) and Royal Caribbean Cruises Ltd. (RCL), have shown significant stock performance and positive growth estimates for 2025 [6][7]

Eric Langan, President & CEO of RCI, commented: "We're pleased to report that Nightclubs same-store sales increased year-over-year for the third quarter in a row. The decline in total Bombshells sales primarily reflected the previously announced divestiture and closing of underperforming locations." Club & Restaurant Sales ($ in Millions) 1Q25 Total Sales Total Sales vs. 1Q24 Same-Store Sales vs. 1Q24 Nightclubs $61.3 +1.2 % +3.7 % Bombshells $9.6 -24.7 % -7.5 % Combined $70.9 -3.3 % ...

Stock Performance - Roger Communications (RCI) shares dropped 17% over the past six months, underperforming the Zacks Consumer Discretionary sector's 16.5% appreciation and the Zacks Cable Television industry's 3.4% return [1] - RCI shares lagged peers like Netflix (NFLX), Apple (AAPL), and Disney (DIS), which appreciated 34.7%, 17.9%, and 13.8%, respectively, in the same period [1] Market Challenges - RCI's subpar performance attributed to intense market competition, declining cable revenues, and macroeconomic uncertainties [2] - Intense competition in the wireless market from major rivals like BCE, TELUS, and Videotron [3] - Struggles in the cable segment to retain customers and compete with other internet service providers, including smaller regional players and emerging technologies [4] - Cable revenues fell 1% year over year in Q3 2024 due to reductions in Home Phone and Satellite subscriber bases [4] - Macroeconomic uncertainties and shifting consumer spending patterns impacting demand for premium services like 5G and high-speed internet [5] Strategic Initiatives - Heavy investments in infrastructure and new technologies, including trials of DOCSIS 4 modems and Wi-Fi 7 routers [6] - Strategic agreement to buy Bell's 37.5% ownership stake in Maple Leaf Sports & Entertainment to bolster long-term prospects [6] Financial Estimates - Full-year 2024 total service revenue growth expected between 8% and 10%, with adjusted EBITDA growth of 12%-15% [7] - Zacks Consensus Estimate for Q4 2024 revenues pegged at $3.8 billion, indicating a year-over-year decline of 2.97% [7] - Consensus mark for Q4 2024 earnings pegged at $1.04 per share, down by a penny over the past 30 days, indicating year-over-year growth of 19.54% [7] - Zacks Consensus Estimate for 2024 revenues pegged at $14.69 billion, indicating year-over-year growth of 2.66% [8] - Consensus mark for 2024 earnings pegged at $3.55 per share, down by a penny over the past 30 days, suggesting year-over-year growth of 5.34% [8] - RCI beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with an average surprise of 3.87% [8] Investor Considerations - RCI's performance reflects significant challenges, including competitive pressure in the wireless market, declining cable revenues, and macroeconomic uncertainties [10] - RCI currently carries a Zacks Rank 5 (Strong Sell) [10]

Financial Performance - Total revenues for 4Q24 were $73.2 million, a decrease from $75.3 million in 4Q23 [1] - EPS for 4Q24 was $0.03, down from $0.23 in 4Q23 [1] - Non-GAAP EPS for 4Q24 increased to $1.63 from $1.11 in 4Q23 [1] - Net cash provided by operating activities in 4Q24 was $15.7 million, up from $12.1 million in 4Q23 [1] - Free cash flow for 4Q24 was $13.2 million, compared to $11.1 million in 4Q23 [1] Operational Highlights - Nightclubs same-store sales increased for the second consecutive quarter, marking the first time since the first half of FY23 [1] - Total company sales declined due to a hurricane and fire, impacting EPS [1] - The company ended FY24 with 8.955 million shares outstanding, a 4.7% decrease year-over-year [1] - Nightclubs segment revenues decreased by 0.5% to $60.6 million in 4Q24, with same-store sales growth of 2.2% [2] - Bombshells segment revenues declined by 12.1% to $11.9 million in 4Q24, with a 16.2% same-store sales decline [2] Capital Allocation and Strategy - The company has grown significantly since initiating its Capital Allocation Strategy at year-end FY15, with revenue more than doubling from $135 million to $296 million, a CAGR of 9% [1] - Free cash flow has more than tripled from $15 million to $48 million, a CAGR of 14%, while the share count fell by 13% [1] - The "Back-to-Basics" strategy for FY25-29 focuses on the Nightclub business, improving Bombshells, and returning more capital to shareholders through buybacks [1] - Capital allocation priorities include 50% for Nightclub acquisitions and 50% for share buybacks & dividends [1] - Financial targets for FY29 include total revenues of $400 million, free cash flow of $75 million, and shares outstanding of 7.5 million [1] Segment Performance - Nightclubs segment operating income was $13.1 million (21.5% of segment revenues) in 4Q24, compared to $12.1 million (19.8%) in 4Q23 [2] - Bombshells segment operating loss was $2.5 million (-21.1% of segment revenues) in 4Q24, compared to operating income of $1.2 million (8.7%) in 4Q23 [2] - Corporate segment expenses totaled $7.1 million (9.7% of total revenues) in 4Q24, compared to $6.8 million (9.0%) in 4Q23 [2] Share Repurchases and Debt - In 4Q24, the company repurchased 174,790 common shares for $7.8 million ($44.81 average per share) [2] - For all of FY24, the company repurchased 442,639 shares for $20.6 million ($46.55 average per share) [2] - Debt was $238.2 million at September 30, 2024, compared to $245.4 million at June 30, 2024, and $239.8 million at September 30, 2023 [2] Non-GAAP Financial Measures - Non-GAAP operating income for 4Q24 was $20.5 million (33.8% of segment revenues) for Nightclubs and $0.7 million (5.9% of segment revenues) for Bombshells [2] - Adjusted EBITDA for 4Q24 was $17.9 million, compared to $20.2 million in 4Q23 [1] - Non-GAAP net income for 4Q24 was $1.63 per diluted share, compared to $1.11 in 4Q23 [1]