Core Points - RCI Hospitality Holdings, Inc. announced that Bombshells Restaurant & Bar will offer a free entree for veterans on Veterans Day, November 11, 2024, along with a 20% discount on other items for veterans and their families [1][2] - The offer is valid at Bombshells locations in Houston, Dallas, Austin, and San Antonio, with operating hours from 11 AM to 2 AM [1] - To qualify for the free entree and discount, veterans and active service members must present valid military identification [2] Discounts and Offers - Families accompanying veterans and active service members will also receive a 20% discount on entrees and other items on Veterans Day [2] - The free entree and discount do not apply to alcoholic beverages and are not eligible for rain checks, gift cards, or take-out [2] - On any other day of the year, veterans and active service members can receive a 20% discount on all items, excluding alcoholic beverages [3] Company Overview - Bombshells Restaurant & Bar is a military-themed casual dining chain that emphasizes a sports and fun atmosphere, featuring large interiors, outdoor patios, and a vibrant environment [4] - The restaurant offers a scratch kitchen and a diverse menu for lunch, dinner, and late-night dining [4]

Core Insights - RCI Hospitality Holdings, Inc. (RICK) reported a total sales of $72.1 million for Q4 fiscal 2024, reflecting a 2.6% decrease year over year due to external challenges like Hurricane Beryl [2][4] - The company experienced a decline in same-store sales by 1.1% year over year, primarily impacted by temporary closures at key locations [2][3] Q4 Preliminary Revenue Results - Nightclub sales totaled $60.2 million, down 0.5% year over year, affected by Hurricane Beryl causing 10 closure days at three clubs in Houston [3] - Bombshells restaurant sales were reported at $11.9 million, down 12.2% from the previous year, with same-store sales falling 16.2% year over year due to prolonged closures in Houston [4] Other Updates - RICK repurchased 0.17 million shares of common stock for approximately $7.8 million during Q4, with $21 million remaining in stock repurchase authorization [5] - The company plans to expand with six new clubs and restaurants in fiscal 2025, including the reopening of Baby Dolls Fort Worth [6] Valuation and Investment Opportunity - RICK's stock is trading at a 12-month forward P/E ratio of 10.10, significantly lower than the industry average of 17.84, indicating potential undervaluation [7] - The company's focus on enhancing its portfolio and strategic share repurchases suggests a commitment to maximizing shareholder value, making it an attractive investment opportunity [8] Stock Performance - RICK shares have gained 7.7% over the past three months, compared to a 12.4% rise in the industry [9]

Core Viewpoint - RCI Hospitality Holdings, Inc. (RICK) is experiencing operational improvements and enhanced shareholder value due to its Back to Basics business approach and effective capital allocation strategy [1]. Company Performance - Over the past six months, RICK's shares have decreased by 24.4%, while the Zacks Leisure and Recreation Services industry has grown by 12% [2]. - In the last three months, RICK has shown resilience with a share price increase of 6.2% [2]. - The Bombshells segment's low contributions and softer comparisons are concerning, but RICK has managed to maintain its growth trend [3]. Earnings Estimates - The Zacks Consensus Estimate for RICK's fourth-quarter fiscal 2024 earnings indicates a year-over-year growth of 69.6% [4]. - Earnings estimates for fiscal 2025 suggest a significant growth trend of 495.7% [4]. - The company has a VGM Score of B and a Growth Score of A, indicating strong analyst sentiment and solid fundamentals [4]. Strategic Initiatives - The Back to Basics approach aims to enhance business conditions by focusing on same-store sales, improving margins, and rebranding underperforming locations [6]. - RICK is working on several revenue-generating projects expected to contribute to revenues in late 2024 or early 2025, including the Baby Dolls project and multiple Bombshells locations [7]. Capital Allocation Strategy - RICK plans to allocate approximately $200-$250 million of free cash flow over the next five years, with less than 10% targeted for dividends, about 50% for mergers and acquisitions, and approximately 40% for share buybacks [8]. - The company has already increased its quarterly cash dividend by 16.7% to 7 cents, effective September 30, 2024 [9]. Valuation - RICK is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 10.07, which is lower than the industry average of 17.89, indicating a potentially attractive entry point for investors [10]. - The current discounted valuation may not last long, suggesting a favorable outlook for RICK stock [11].

Building a portfolio of well-managed, high cash-flowing nightclubs and sports-bar restaurants NASDAQ: RICK | 3Q24 Conference Call | August 8, 2024 | www.rcihospitality.com | @RCIHHinc Today's Speakers Eric Langan President & CEO RCI Hospitality Holdings, Inc. @RicksCEO Bradley Chhay Chief Financial Officer RCI Hospitality Holdings, Inc. @BradleyChhay Mark Moran CEO Equity Animal @itsmarkmoran 2 X Spaces Instructions • Log in to: X (formerly Twitter) • Go To: @RicksCEO on X: https://x.com/RicksCEO • Select t ...

Financial Data and Key Metrics - Revenue for Q3 2024 was $76.2 million, with GAAP EPS at a loss of $0.56 per share due to a non-cash impairment of $17.9 million [8] - Non-GAAP EPS was $1.35, and free cash flow reached a year-high of $13.8 million, with EBITDA at $20.1 million [8] - Nightclubs revenue increased by $374,000 year-over-year to $62.8 million, with same-store sales growth of 1.7% [8] - Bombshells revenue declined by 8.7% to $13.1 million, but non-GAAP operating income increased by 89.3% sequentially [10] - Corporate expenses were 9.4% of total revenues year-over-year, consistent with the previous quarter [11] Business Line Performance - Nightclubs achieved record revenues, with alcoholic beverage sales up 4.9%, food and merchandise up 5.1%, and service revenue down 5.3% [9] - Bombshells saw a sequential revenue increase of 2.9%, with margins improving from 5.9% to 10.8% [4][10] - Seven locations were opened, converted, or enhanced during the fiscal year, with seven more in progress [4] Market Performance - Severe weather in Texas and South Florida temporarily impacted club operations, with 10 day closures for Bombshells and 1 for clubs in Q3 [11] - Hurricane Beryl caused 10 day closures for clubs and 26 for Bombshells in Q4 [11] Strategic Direction and Industry Competition - The company is focusing on a "Back to Basics" approach to increase revenues, reduce costs, and expand margins [3] - A five-year strategic plan is being developed, with two pillars: operational efficiency and capital allocation [7] - The company withdrew its Colorado casino license application to focus on projects with more immediate results [4] Management Commentary on Operating Environment and Future Outlook - Management is optimistic about achieving 15% margins for Bombshells, with potential to reach 20% as new stores open [18] - The company is actively pursuing M&A opportunities, with a focus on clubs in the Detroit market [19] - Management is reviewing underperforming locations and may sell or close some to improve overall profitability [18] Other Important Information - The company reduced its share count to less than 9 million through a share buyback program, purchasing 700,000 shares at a 22% discount [5] - A $20 million bank real estate loan was secured, and the share repurchase program was increased by $25 million [4] - The company is rebuilding the Baby Dolls Fort Worth location after a fire and is reviewing all operating units to ensure financial objectives are met [15] Q&A Session Question: Progress on Bombshells margins and restructuring timeline - Management aims for 15% margins, with potential to reach 20% as new stores open in 2025 [18] Question: M&A environment and criteria for club properties - The company is exploring opportunities in the Detroit market and expects acquisitions at closer to 5x multiples [19] Question: Colorado properties and liquidation timeline - The company is in discussions to lease or sell Colorado properties, with an LOI expected soon for one property [20] Question: Impact of potential interest rate declines on refinancing opportunities - No immediate refinancing plans, but the company is monitoring interest rates for future opportunities [21] Question: Cumulative cash invested in Bombshells and casinos - Approximately $6 million in non-income producing properties and $8 million in the Rick's Cabaret Steakhouse [27] Question: Fire at Baby Dolls Fort Worth location - The fire was likely an electrical issue, and the company is already redesigning the property for reopening [29]

RCI Hospitality (RICK) came out with a quarterly loss of $0.56 per share versus the Zacks Consensus Estimate of $0.88. This compares to earnings of $0.96 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -163.64%. A quarter ago, it was expected that this adult nightclub chain would post earnings of $0.81 per share when it actually produced earnings of $0.08, delivering a surprise of -90.12%. Over the last four quarters, the com ...

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 our brands at www.rcihospitality.com. Gary Fishman and Steven Anreder at 212-532-3232 or [email protected] and [email protected] SOURCE RCI Hospitality Holdings, Inc. Media & Investor Contacts ...

Don't tell the stock market, but there have been some signs that the economy is beginning to slow down. While it's not a broad-based collapse or anything frightening like that, there are some areas experiencing the pinch. Recently, today's Bear of the Day referenced that pinch in its latest earnings report. It's currently a Zacks Rank #5 (Strong Sell) and we are going to investigate the reasons why. I'm talking about RCI Hospitality (RICK) ). RCI Hospitality Holdings, Inc., through its subsidiaries, engages ...

Financial Data and Key Metrics Changes - The company generated $72.3 million in revenue in the second quarter, compared to $71.5 million last year, reflecting a slight increase [44][30] - GAAP EPS was $0.08, primarily impacted by noncash impairment, while non-GAAP EPS totaled $0.90, near the high end of analyst expectations [44][30] - Corporate expenses totaled $6.8 million, an increase of $0.6 million on a GAAP basis, and $6.3 million on a non-GAAP basis, reflecting more corporate-level management from acquisitions and new projects [30][44] Business Line Data and Key Metrics Changes - The nightclub segment generated $59.4 million in revenue in Q2 '24, up from $57 million last year, driven by a $7.4 million increase from acquisitions [44][30] - Bombshells segment revenues declined by $1.5 million, with operating income down to $0.7 million or 5.5% of revenues compared to $1.8 million or 12.4% [30][46] - Adjusted EBITDA was $17.2 million or 24% of revenues, reflecting a combination of lower service revenue and higher costs [30][44] Market Data and Key Metrics Changes - Same-store sales declined by $2.7 million, while new locations contributed an increase of $1.2 million [46][30] - The company noted a significant impact from severe weather in Texas, which affected operations during January [45][30] - The company is seeing a 15% to 30% decline in revenues from competitors, averaging around 20% declines from their peaks in 2021 and 2022 [64][30] Company Strategy and Development Direction - The company aims to return Bombshells to $60 million in revenue with 15% margins, exploring strategic options such as partnerships or asset sales [4][30] - Focus is on capital allocation strategy, emphasizing mergers and acquisitions, organic growth, and stock buybacks when free cash flow yield exceeds 10% [48][30] - The company is rebranding underperforming clubs to improve performance and is committed to evaluating non-income generating assets [48][30] Management Comments on Operating Environment and Future Outlook - Management acknowledged economic uncertainty and the need to adapt to changing consumer spending habits, noting that people are not spending as much [4][30] - The company is focused on cutting controllable costs and has halted future project costs until a direct opening date is confirmed [10][30] - Management expressed optimism about upcoming sports events boosting traffic and revenue, particularly in markets with active teams [77][30] Other Important Information - The Duncan Burch acquisition has performed well, with revenues growing 23.9% year-over-year and operating margins expanding [29][30] - The company has a cash position of $20 million and used $1.5 million for share buybacks during the second quarter [30][44] - The company is evaluating the potential of divesting certain properties to focus on core business operations [78][30] Q&A Session Summary Question: Can you provide details on the increase in other charges in the income statement this quarter? - The increase was primarily due to an $8 million impairment charge [34] Question: What is the status of M&A activities? - The company is negotiating two letters of intent, with one in a negotiation lock due to potential unknown liabilities [34] Question: What strategies are in place to improve service revenue? - Management is focused on returning to basics, enhancing customer service, and rebranding underperforming locations [85][30] Question: How is the company adapting to economic uncertainty? - The company is implementing cost containment measures and adjusting pricing strategies to attract customers [88][30] Question: What are the expectations for the Central City location? - The company plans to open the Rick's Cabaret Steakhouse in Q4, with potential revenue contributions being evaluated [80][30]

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) [2Q24 Financial Summary](index=1&type=section&id=2Q24%20Financial%20Summary) Total revenues slightly increased to $72.3 million in 2Q24, though GAAP EPS fell sharply to $0.08 due to a significant non-cash impairment charge 2Q24 Financial Highlights | Metric (in millions except EPS) | 2Q24 | 2Q23 | 6M24 | 6M23 | | :------------------------------ | :--- | :--- | :--- | :--- | | Total revenues | $72.3 | $71.5 | $146.2 | $141.5 | | EPS | $0.08 | $0.83 | $0.85 | $1.94 | | Non-GAAP EPS | $0.90 | $1.30 | $1.76 | $2.50 | | Net income attributable to RCIHH common stockholders | $0.8 | $7.7 | $8.0 | $18.0 | | Adjusted EBITDA | $17.2 | $21.7 | $34.7 | $42.1 | | Net cash from operating activities | $10.8 | $16.8 | $24.5 | $31.7 | | Free cash flow | $8.8 | $14.8 | $21.5 | $27.8 | - GAAP EPS of **$0.08** primarily reflected **$8.0 million** in non-cash impairment charges[3](index=3&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management highlighted core business strength, revenue growth despite economic uncertainty, and a continued focus on its capital allocation strategy - Total revenues for 2Q24 were **$72.3 million**, an increase from $71.5 million in the prior year[3](index=3&type=chunk) - The Nightclubs segment generated **$59.4 million** in revenue in 2Q24, up from $57.0 million last year[3](index=3&type=chunk) - Efforts to improve the Bombshells segment resulted in **steady sales and better margins** on a sequential quarter basis[3](index=3&type=chunk) - The company is committed to its capital allocation strategy, focusing on core nightclubs, evaluating potential acquisitions, and buying back stock[3](index=3&type=chunk) - Subsequent to the quarter end, RCI increased its cash position by **$20 million** through a planned bank loan[3](index=3&type=chunk) [Company Overview](index=3&type=section&id=Company%20Overview) [About RCI Hospitality Holdings, Inc.](index=3&type=section&id=About%20RCI%20Hospitality%20Holdings%2C%20Inc.) RCI Hospitality Holdings, Inc. is a leading operator of adult nightclubs and sports bars-restaurants with over 60 locations across the United States - RCI Hospitality Holdings, Inc. operates **more than 60 locations**, making it the country's leading company in adult nightclubs and sports bars-restaurants[10](index=10&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) The company's forward-looking statements are subject to numerous risks and uncertainties inherent in its business and operating environment - Forward-looking statements are subject to risks including operating adult entertainment/restaurant businesses, business climates, launch success, cybersecurity, real estate, and COVID-19 impact[11](index=11&type=chunk) [Investor Information](index=1&type=section&id=Investor%20Information) The company provided details for its investor conference call and management meeting held on May 9, 2024 - A conference call and X Spaces event were scheduled for **May 9, 2024**, at 4:30 PM ET, with a management meeting at 7:00 PM ET[4](index=4&type=chunk) - Investors were invited to meet management at Rick's Cabaret New York[4](index=4&type=chunk) - Media and investor contacts are Gary Fishman and Steven Anreder[12](index=12&type=chunk) [Detailed 2Q24 Financial Results](index=2&type=section&id=Detailed%202Q24%20Financial%20Results) [Consolidated Performance](index=2&type=section&id=Consolidated%20Performance) Consolidated revenue saw a slight increase, but operating and net income declined significantly due to a large impairment charge and higher interest expense Consolidated Performance Summary | Metric (in thousands) | 2Q24 Amount | 2Q24 % of Revenue | 2Q23 Amount | 2Q23 % of Revenue | | :-------------------- | :---------- | :---------------- | :---------- | :---------------- | | Total revenues | $72,283 | 100.0% | $71,517 | 100.0% | | Income from operations | $4,657 | 6.4% | $13,427 | 18.8% | | Net income | $749 | 1.0% | $7,693 | 10.8% | | Other charges, net | $8,195 | 11.3% | $3,758 | 5.3% | | Interest expense | $(3,999) | (5.5)% | $(3,677) | (5.1)% | | Effective tax rate | 0.7% | —% | 21.8% | 3.0% | - The effective tax rate decreased significantly to **0.7%** in 2Q24 from 21.8% in 2Q23[7](index=7&type=chunk) [Segment Performance](index=2&type=section&id=Segment%20Performance) The Nightclubs segment grew revenue through acquisitions while Bombshells' revenue declined, and corporate expenses rose to support growth initiatives [Nightclubs Segment](index=2&type=section&id=Nightclubs%20Segment) Nightclubs segment revenue increased due to acquisitions, but operating income fell sharply because of an $8.0 million impairment charge Nightclubs Segment Financials | Metric (in millions) | 2Q24 | 2Q23 | | :------------------- | :--- | :--- | | Revenues | $59.4 | $57.0 | | GAAP Operating Income | $11.0 | $18.0 | | GAAP Operating Margin | 18.6% | 31.6% | | Non-GAAP Operating Income | $19.8 | $22.4 | | Non-GAAP Operating Margin | 33.4% | 39.3% | | Impairment | $8.0 | $0.7 | - Revenue increase reflected the benefit of **acquisitions**, which more than offset declines from same-store sales[7](index=7&type=chunk) - Non-GAAP margin decline was primarily due to lower service revenues, wage inflation, and a **doubled Texas patron tax** ($10 per customer)[7](index=7&type=chunk) [Bombshells Segment](index=2&type=section&id=Bombshells%20Segment) The Bombshells segment experienced declines in revenue and profitability, primarily driven by lower same-store sales Bombshells Segment Financials | Metric (in millions) | 2Q24 | 2Q23 | | :------------------- | :--- | :--- | | Revenues | $12.8 | $14.3 | | GAAP Operating Income | $0.7 | $1.8 | | GAAP Operating Margin | 5.5% | 12.4% | | Non-GAAP Operating Income | $0.8 | $2.2 | | Non-GAAP Operating Margin | 5.9% | 15.4% | - Revenue decline reflected **lower same-store sales**, partially offset by increases from FY23 acquisitions and a new location[7](index=7&type=chunk) - The decline in profitability primarily reflected **lower same-store sales**[7](index=7&type=chunk) [Corporate Segment](index=2&type=section&id=Corporate%20Segment) Corporate expenses increased to support recently acquired clubs and new projects, rising as a percentage of total revenues Corporate Segment Expenses | Metric (in millions) | 2Q24 | 2Q23 | | :------------------- | :--- | :--- | | GAAP Expenses | $6.8 | $6.2 | | GAAP % of Total Revenues | 9.4% | 8.6% | | Non-GAAP Expenses | $6.3 | $5.5 | | Non-GAAP % of Total Revenues | 8.8% | 7.7% | - The expense increase primarily reflected more corporate level management, accounting, and professional services due to **recently acquired clubs and new projects**[7](index=7&type=chunk) [Other Financial Metrics](index=2&type=section&id=Other%20Financial%20Metrics) Weighted average shares outstanding increased slightly, while the company continued its share repurchase program and reduced total debt - Weighted average shares outstanding **increased 0.9%** year over year, influenced by shares used in an acquisition, partially offset by subsequent share buybacks[7](index=7&type=chunk) Share Repurchase Activity | Metric | 2Q24 | 6M24 | | :-------------------- | :--- | :--- | | Shares Repurchased | 27,265 | 65,219 | | Value of Repurchases | $1.5M | $3.6M | | Average Price per Share | $56.12 | $55.23 | | Remaining Authorization | $13.0M (as of March 31, 2024) | | Debt Position | Metric | March 31, 2024 | December 31, 2023 | | :----- | :------------- | :---------------- | | Debt | $231.9M | $234.1M | [Non-GAAP Financial Measures](index=2&type=section&id=Non-GAAP%20Financial%20Measures) [Explanation of Non-GAAP Measures](index=2&type=section&id=Explanation%20of%20Non-GAAP%20Measures) The company utilizes Non-GAAP measures like Adjusted EBITDA and Free Cash Flow to offer a clearer view of its core operational performance - Non-GAAP financial measures are used to clarify and enhance understanding of past performance and future prospects by excluding or including amounts not representative of ongoing business operations[6](index=6&type=chunk) - Non-GAAP Operating Income and Margin exclude amortization of intangibles, impairment of assets, settlement of lawsuits, gains/losses on sale of businesses/assets, gains/losses on insurance, and stock-based compensation[8](index=8&type=chunk) - Adjusted EBITDA excludes depreciation and amortization, impairment of assets, income tax expense (benefit), net interest expense, settlement of lawsuits, gains/losses on sale of businesses/assets, gains/losses on insurance, and stock-based compensation[12](index=12&type=chunk) - Free cash flow is derived from net cash provided by operating activities less maintenance capital expenditures and serves as the baseline for capital allocation strategy[12](index=12&type=chunk) [Non-GAAP Reconciliations](index=8&type=section&id=Non-GAAP%20Reconciliations) This section provides detailed reconciliations from GAAP to Non-GAAP metrics, quantifying adjustments for items like asset impairments and amortization [Adjusted EBITDA Reconciliation](index=8&type=section&id=Adjusted%20EBITDA%20Reconciliation) Adjusted EBITDA decreased to $17.2 million in 2Q24 from $21.7 million in 2Q23, with a major adjustment for an $8.0 million asset impairment Reconciliation of Net Income to Adjusted EBITDA | Metric (in thousands) | 2Q24 | 2Q23 | 6M24 | 6M23 | | :-------------------- | :--- | :--- | :--- | :--- | | Net income attributable to RCIHH common stockholders | $774 | $7,732 | $8,000 | $17,970 | | Impairment of assets | $8,033 | $662 | $8,033 | $662 | | Interest expense, net | $3,903 | $3,587 | $8,025 | $7,183 | | Adjusted EBITDA | $17,232 | $21,690 | $34,699 | $42,149 | [Non-GAAP Net Income & EPS Reconciliation](index=8&type=section&id=Non-GAAP%20Net%20Income%20%26%20EPS%20Reconciliation) Non-GAAP diluted EPS was $0.90 in 2Q24, down from $1.30 in the prior year, primarily reflecting adjustments for impairment charges Reconciliation of GAAP to Non-GAAP Net Income & EPS | Metric (in thousands except EPS) | 2Q24 | 2Q23 | 6M24 | 6M23 | | :------------------------------- | :--- | :--- | :--- | :--- | | GAAP diluted earnings per share | $0.08 | $0.83 | $0.85 | $1.94 | | Impairment of assets (per share) | $0.86 | $0.07 | $0.86 | $0.07 | | Non-GAAP diluted earnings per share | $0.90 | $1.30 | $1.76 | $2.50 | | Non-GAAP net income | $8,379 | $12,059 | $16,511 | $23,079 | [Non-GAAP Operating Income & Margin Reconciliation](index=8&type=section&id=Non-GAAP%20Operating%20Income%20%26%20Margin%20Reconciliation) Non-GAAP operating income fell to $14.0 million in 2Q24, with the operating margin contracting to 19.3% from 26.6% in 2Q23 Reconciliation of GAAP to Non-GAAP Operating Income | Metric | 2Q24 | 2Q23 | 6M24 | 6M23 | | :-------------------------------- | :--- | :--- | :--- | :--- | | Income from operations (GAAP) | $4,657 | $13,427 | $17,822 | $30,325 | | Impairment of assets | $8,033 | $662 | $8,033 | $662 | | Non-GAAP operating income | $13,963 | $19,000 | $28,254 | $36,880 | | GAAP operating margin | 6.4% | 18.8% | 12.2% | 21.4% | | Non-GAAP operating margin | 19.3% | 26.6% | 19.3% | 26.1% | [Free Cash Flow Reconciliation](index=10&type=section&id=Free%20Cash%20Flow%20Reconciliation) Free cash flow decreased to $8.8 million in 2Q24 from $14.8 million in the prior-year quarter, driven by lower operating cash flow Reconciliation of Net Cash from Operations to Free Cash Flow | Metric (in thousands) | 2Q24 | 2Q23 | 6M24 | 6M23 | | :-------------------- | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $10,836 | $16,789 | $24,469 | $31,684 | | Less: Maintenance capital expenditures | $2,011 | $2,021 | $2,994 | $3,885 | | Free cash flow | $8,825 | $14,768 | $21,475 | $27,799 | [Non-GAAP Segment Information](index=12&type=section&id=Non-GAAP%20Segment%20Information) Non-GAAP operating margins declined for both the Nightclubs and Bombshells segments compared to the prior-year quarter 2Q24 Non-GAAP Segment Performance | Segment (2Q24, in thousands) | Non-GAAP Operating Income | Non-GAAP Operating Margin | | :--------------------------- | :------------------------ | :------------------------ | | Nightclubs | $19,817 | 33.4% | | Bombshells | $750 | 5.9% | | Corporate | $(6,327) | (8.8)% | 2Q23 Non-GAAP Segment Performance | Segment (2Q23, in thousands) | Non-GAAP Operating Income | Non-GAAP Operating Margin | | :--------------------------- | :------------------------ | :------------------------ | | Nightclubs | $22,390 | 39.3% | | Bombshells | $2,211 | 15.4% | | Corporate | $(5,493) | (7.7)% | [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) The income statement reflects a slight revenue increase but a substantial drop in net income for 2Q24 compared to 2Q23 Income Statement Highlights | Metric (in thousands) | 3 Months Ended Mar 31, 2024 | 3 Months Ended Mar 31, 2023 | 6 Months Ended Mar 31, 2024 | 6 Months Ended Mar 31, 2023 | | :-------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Total revenues | $72,283 | $71,517 | $146,190 | $141,485 | | Income from operations | $4,657 | $13,427 | $17,822 | $30,325 | | Net income | $749 | $7,693 | $7,993 | $17,964 | | Basic and diluted EPS | $0.08 | $0.83 | $0.85 | $1.94 | [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) The balance sheet shows a stable asset base and a slight reduction in total liabilities as of March 31, 2024, compared to fiscal year-end 2023 Balance Sheet Highlights | Metric (in thousands) | March 31, 2024 | September 30, 2023 | March 31, 2023 | | :-------------------- | :------------- | :----------------- | :------------- | | Total assets | $609,893 | $610,884 | $621,131 | | Total liabilities | $324,394 | $329,560 | $345,167 | | Total RCIHH stockholders' equity | $285,763 | $281,581 | $276,081 | | Cash and cash equivalents | $19,973 | $21,023 | $22,784 | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash flow from operations decreased year-over-year, contributing to a net decrease in cash for the first six months of FY24 Cash Flow Highlights | Metric (in thousands) | 3 Months Ended Mar 31, 2024 | 3 Months Ended Mar 31, 2023 | 6 Months Ended Mar 31, 2024 | 6 Months Ended Mar 31, 2023 | | :-------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Net cash provided by operating activities | $10,836 | $16,789 | $24,469 | $31,684 | | Net cash used in investing activities | $(7,606) | $(34,426) | $(12,686) | $(48,076) | | Net cash provided by (used in) financing activities | $(4,412) | $6,313 | $(12,833) | $3,196 | | Net decrease in cash and cash equivalents | $(1,182) | $(11,324) | $(1,050) | $(13,196) |