RCI Reports 4Q24 & FY24 Results, Launches 5-Year Capital Allocation Plan, Hosts 4:30 PM ET X Spaces Call Today

Core Insights - The company reported a decline in total revenues for 4Q24, with revenues of $73.2 million compared to $75.3 million in 4Q23, despite an increase in same-store sales for nightclubs [1][2] - Non-GAAP EPS increased to $1.63 in 4Q24 from $1.11 in 4Q23, indicating improved operational performance despite challenges [1][2] - The company plans to implement a "Back-to-Basics" capital allocation strategy focusing on nightclub acquisitions and returning capital to shareholders through buybacks [1][2] Financial Performance - Total revenues for FY24 were $295.6 million, slightly up from $293.8 million in FY23 [1] - Net income attributable to common stockholders decreased to $0.2 million in 4Q24 from $2.2 million in 4Q23, reflecting operational challenges [1][2] - Free cash flow increased to $13.2 million in 4Q24 from $11.1 million in 4Q23, demonstrating improved cash generation [1][2] Segment Analysis - Nightclubs segment revenues were $60.6 million, a slight decrease of 0.5%, with a same-store sales growth of 2.2% impacted by closures due to a hurricane [2] - Bombshells segment revenues declined by 12.1% to $11.9 million, with a significant same-store sales decline of 16.2% due to weather-related closures [2] - The corporate segment expenses increased to $7.1 million, reflecting higher operational costs [2] Capital Allocation Strategy - The company aims to allocate 50% of free cash flow towards nightclub acquisitions and the other 50% towards share buybacks and dividends [1][2] - The financial targets for FY29 include total revenues of $400 million and free cash flow of $75 million, with a goal to reduce shares outstanding to 7.5 million [1][2] Share Repurchase and Debt Management - In 4Q24, the company repurchased 174,790 shares for $7.8 million, reducing the total shares outstanding to 8.955 million [2] - Total debt decreased to $238.2 million as of September 30, 2024, down from $245.4 million at June 30, 2024, primarily due to debt elimination from the sale of Bombshells San Antonio [2]