RCI Hospitality ( (RICK) ) has released its Q4 earnings. Here is a breakdown of the information RCI Hospitality presented to its investors.
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RCI Hospitality Holdings, Inc. operates over 60 locations and is a leader in the adult nightclub and sports bar-restaurant industry in the United States. The company recently released its fourth quarter and full-year 2024 financial results, along with announcing a ‘Back-to-Basics’ Five-Year Capital Allocation Plan.
The company’s FY24 results showed a slight increase in total revenues to $295.6 million compared to $293.8 million in FY23, despite challenges from weather-related closures. However, EPS saw a significant drop from $3.13 to $0.33. Notably, non-GAAP EPS increased to $4.72 from $4.90, showing resilience in operational metrics. The company also maintained strong free cash flow at $48.4 million, although adjusted EBITDA decreased to $72.6 million from $85.0 million.
RCI’s ‘Back-to-Basics’ strategy focuses on strengthening its nightclub segment and enhancing its Bombshells chain. The plan emphasizes capital allocation towards nightclub acquisitions and shareholder returns through buybacks. The company aims to achieve $400 million in total revenue and $75 million in free cash flow by FY29, alongside reducing shares outstanding to 7.5 million.
The management remains optimistic about future growth, leveraging its strategic initiatives to navigate current challenges and capitalize on opportunities in the nightclub and restaurant sectors. With continued focus on acquisitions and shareholder value, RCI is poised to build on its past successes.