Rci Hospitality Holdings Stock Earnings Reports

RCI reported Q1 results (quarter ended Dec 31) with total revenues of $70.8M, roughly flat year-over-year, driven by stable Nightclub revenues (newer venues offset same-store performance and closures) and lower Bombshells revenue due to divestitures/closures. GAAP net loss was $0.57 per share (vs. $1.01 EPS prior year) driven primarily by noncash pretax charges (~$10.1M this quarter vs. $3.2M gains a year ago). On a non-GAAP basis, they reported $0.74 EPS and Adjusted EBITDA of $15.7M (flat year-over-year), with free cash flow of $6.7M. Cash stood at ~$28.6M after $9.8M of share buybacks in the quarter. Debt rose ~$20.6M primarily from $22M in seller financing related to the ADW transaction, taking debt/TTM EBITDA to 4.86x (4.16x excluding a prior-quarter legal accrual). Management reiterated its 'Back to Basics' five-year capital allocation plan: allocate ~40% of free cash flow to club acquisitions and ~60% to debt reduction/dividends and repurchases, target annual free cash flow per share growth of 10–15%, add roughly $6M adjusted EBITDA per year via acquisitions, and a goal of ~$75M free cash flow and ~$400M revenue by fiscal 2029. They plan to optimize the nightclub portfolio (rebrand/divest underperformers), continue Bombshells revitalization (test concept showing early success in Houston), market ~$31.7M of non-income-producing clubs/real estate to reduce debt, and continue opportunistic buybacks (shares outstanding down ~14.6% since plan start). Management said legal reserves were adequate for the near term, they expect to remain or become current with filings, and emphasized focus on cash generation and margin improvement.