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]

TORONTO, Dec. 13, 2024 (GLOBE NEWSWIRE) -- Rogers Communications (TSX:RCI) (NYSE:RCI) today announced it has received clearance from the Competition Bureau to proceed with the acquisition of Bell's 37.5% stake in Maple Leaf Sports & Entertainment. Rogers and Bell received a "no-action letter" on December 12, 2024, from the Bureau, indicating that the Commissioner of Competition does not intend to challenge Rogers acquisition of Bell's interest in MLSE. The deal is subject to league approvals and approval fr ...

Company Overview - RCI Hospitality Holdings, Inc. is the leading company in the United States for adult nightclubs and sports bars/restaurants with more than 60 locations [1] Brand Presence - The company operates through its subsidiaries and has a diverse range of brands available for consumers [1]

Performance and Market Position - Roger Communications (RCI) shares have dropped 23.4% year to date (YTD), underperforming the Zacks Consumer Discretionary sector's growth of 10.1% and the Zacks Cable Television industry's increase of 0.4% [1] - RCI's underperformance is attributed to stiff competition from TELUS and BCE in the wireless operations and communication cable markets [2] - RCI's cable revenues reduced 1% year over year to $1.97 billion in Q3 2024 due to a decline in the Home Phone and Satellite subscriber base [2] Technological Advancements and Portfolio Expansion - RCI tested DOCSIS 4.0 with Comcast XER modem to increase download speed to four gigabits and upload speed to one gigabit, integrating AI, cloud functions, and data processing capabilities [3] - RCI enhanced the DOCSIS 3.1 platform to develop network resilience and provide stable connectivity with quicker download and upload speeds [4] - RCI partnered with SpaceX to provide emergency alerts via satellite to mobile phones in disaster-affected areas in Canada [4] - RCI inked a strategic agreement to buyout Bell's 37.5% ownership in Maple Leaf Sports & Entertainment (MLSE), becoming the largest owner with a 75% stake, expected to conclude by mid-2025 [5] - RCI partnered with Disney to bring Disney+ to Ignite TV users free of cost and with Warner Bros. Discovery to launch and distribute Discovery channels [6] Financial Guidance and Earnings Estimates - RCI expects total service revenues to grow between 8% and 10% in 2024, with adjusted EBITDA growth in the range of 12-15% [7] - Capital expenditure is expected between C$3.8 billion and C$4 billion, with free cash flow expected in the range of C$2.9-C$3.1 billion [7] - The Zacks Consensus Estimate for RCI's fiscal 2024 revenues is pegged at $14.78 billion, indicating year-over-year growth of 3.33% [8] - The consensus mark for earnings is pegged at $3.55 per share, implying year-over-year growth of 5.34% [8] - The Zacks Consensus Estimate for Q4 fiscal 2024 earnings is pegged at $1.05 per share, indicating year-over-year growth of 20.69% [8] - The consensus mark for Q4 fiscal 2024 revenues is pegged at $3.87 billion, indicating a year-over-year decline of 1.22% [9] - RCI's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, delivering an average surprise of 3.87% [9] Valuation and Market Outlook - RCI shares are currently undervalued, with a Value Score of A and a forward 12-month Price/Earnings (P/E) ratio of 9.23X, lower than the Zacks Consumer Discretionary sector's 19.34X [10] - RCI has a Zacks Rank 3 (Hold), suggesting investors may want to wait for a more favorable entry point [10]

About RCI Hospitality Holdings, Inc. (Nasdaq: RICK) (X: @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 of our brands at www.rcihospitality.com.  Forward-Looking StatementsThis 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, incl ...

Financial Data and Key Metrics Changes - Rogers reported a 2% increase in wireless service revenue year-over-year and a 5% increase in adjusted EBITDA, achieving a wireless margin of 66%, which is an all-time high [9][15][17] - Total service revenue increased by 1% and adjusted EBITDA rose by 6% year-over-year, leading to a consolidated EBITDA margin increase of 230 basis points to 50% [17] - Free cash flow for the quarter was $915 million, up 23% from the prior year, primarily due to higher adjusted EBITDA and lower interest expenses [17] Business Line Data and Key Metrics Changes - Wireless postpaid mobile phone net additions were 101,000, while prepaid net additions were 93,000, contributing to a total of 194,000 net additions for the quarter [14][15] - Retail Internet net additions reached 33,000, an increase of 83% from the previous year, with year-to-date retail Internet net additions totaling 85,000, a 50% increase year-over-year [6][16] - The Sports & Media segment experienced an 11% revenue growth and a 25% increase in adjusted EBITDA for the quarter [10][16] Market Data and Key Metrics Changes - The Canadian market remains competitive, with Rogers maintaining industry-leading market share in wireless and cable [3][5] - The company has seen a decline in roaming revenue year-over-year, which negatively impacted ARPU [67] - The overall Canadian telecommunications market is expected to grow between 4% to 4.5%, despite recent government limitations on foreign students and temporary workers [47][61] Company Strategy and Development Direction - Rogers is focused on maintaining an investment-grade balance sheet while investing in growth across its core businesses [4][20] - The company announced a $7 billion structured equity financing to pay down debt, expecting to reduce its debt leverage ratio to 3.7x by year-end, ahead of the previously communicated target of 4.2x [3][19] - The strategy includes a clear differentiation between the premium 5G brand and the Chatr prepaid brand, which has been effective in driving customer acquisition [5][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate cash from operations and achieve significant cost synergies, projecting $3 billion in free cash flow for 2024 [53] - The competitive environment is expected to remain challenging, particularly in the wireless segment, but the company aims to sustain stable ARPU and continue leading in net additions [23][46] - Management remains optimistic about the long-term growth potential in the Canadian market, despite short-term challenges related to immigration policies [47][61] Other Important Information - The company is advancing its DOCSIS roadmap and has successfully trialed new modem technologies, reinforcing its commitment to innovation [8] - Rogers signed a strategic agreement to acquire Bell's 37.5% stake in Maple Leaf Sports & Entertainment, enhancing its position in the sports and media sector [10][50] Q&A Session Summary Question: Details on structured equity financing and its impact on operations - Management clarified that the transaction involves selling a minority equity interest in a portion of the wireless backhaul transport infrastructure, maintaining full operational control without any leaseback arrangement [22] Question: Competitive environment in wireless and sustainability of stable ARPU - Management acknowledged the competitive nature of the market but emphasized their disciplined promotional strategies and focus on the premium brand to maintain stable ARPU [23][24] Question: Clarification on the minority interest deal and its implications - The minority interest will not affect Rogers' operational control, and the revenue model is based on tiered wholesale rates as data traffic grows [35][36] Question: Future cash flows and the impact of the equity transaction - Management expressed confidence in cash generation from operations and indicated that the structured equity transaction would not significantly impact free cash flow obligations [53][60] Question: Regulatory environment and roaming revenue impact - Management noted a decline in roaming revenue year-over-year and indicated adjustments to their value proposition to increase unique roamers [67]

Investors might want to bet on Rogers Communication (RCI) , as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Indi ...