RCI Reports 3Q24 Results; X Spaces Call at 4:30 PM ET Today

Core Viewpoint - The company reported mixed financial results for the third quarter of 2024, with a decline in total revenues and net income, but improvements in certain operational metrics and a focus on capital allocation strategies aimed at increasing free cash flow per share. Financial Performance - Total revenues for 3Q24 were $76.2 million, a decrease of 1.2% from $77.1 million in 3Q23 [1] - Net loss attributable to common stockholders was $(5.2) million, compared to a profit of $9.1 million in the same quarter last year [1] - Non-GAAP EPS for 3Q24 was $1.35, slightly up from $1.30 in 3Q23 [1] - Adjusted EBITDA for 3Q24 was $20.1 million, down from $22.7 million in 3Q23 [1] Segment Performance - Nightclubs segment revenues increased by 0.6% year-over-year to $62.8 million, driven by a 1.7% same-store sales growth [4] - Bombshells segment revenues declined by 8.7% to $13.1 million, primarily due to a 16.2% decline in same-store sales [7] - Non-cash impairments in the Bombshells segment totaled $10.3 million, leading to an operating loss of $(8.9) million [7] Operational Strategies - The company is implementing a "Back to Basics" approach, focusing on increasing revenues, reducing costs, and expanding margins [2] - Share repurchases totaled 202,630 shares for $9.2 million in 3Q24, with a remaining purchase authorization of $22.9 million [1] - The company aims to open new and reformatted clubs while reviewing all operating units to ensure they meet financial objectives [4] Cash Flow and Capital Allocation - Net cash provided by operating activities was $15.8 million in 3Q24, compared to $15.3 million in 3Q23 [1] - Free cash flow for 3Q24 was $13.8 million, slightly down from $14.3 million in the same quarter last year [1] - The company plans to use cash flow to facilitate further share buybacks and acquisitions of clubs [4]