RCI Hospitality (NASDAQ:RICK) Issues Quarterly Earnings Results

RCI Hospitality (NASDAQ:RICK) issued its quarterly earnings results on Thursday. The restaurant operator reported $0.74 earnings per share for the quarter, FiscalAI reports. The business had revenue of $70.83 million for the quarter. RCI Hospitality had a return on equity of 4.05% and a net margin of 3.87%.

Here are the key takeaways from RCI Hospitality’s conference call:

• GAAP loss of $0.57 per share and a year‑over‑year decline in pre‑tax income driven by $10.1M of net charges (including a $9.9M non‑operating charge), though non‑GAAP EPS was $0.74 and Adjusted EBITDA remained at $15.7M.
• Operationally Nightclubs showed stability with service revenues up 6.7% and sequential same‑store sales improvement, while a Bombshells test in Houston drove a 3.6% sales gain and is being rolled out to other locations.
• Management reiterated a 5‑year capital plan (allocate ~40% of FCF to acquisitions, 60% to buybacks/debt/dividends), has repurchased >1M shares year‑to‑date, raised the buyback program by $20M, and targets materially higher free cash flow per share by 2029.
• Leverage increased due to ~$22M of seller financing from the ADW deal (debt/TTM EBITDA ~4.86x or 4.16x ex‑legal accrual); management is marketing ~$31.7M of small clubs/real estate (with ~$16.2M debt) to raise cash and cut carrying costs.
• The quarter was burdened by higher legal, insurance and delayed‑filing related costs; management says reserves cover the next ~12 months but ongoing legal uncertainty (New York matter) remains a potential downside risk.

RCI Hospitality Stock Performance

Shares of RICK traded down $1.05 during trading hours on Friday, reaching $25.35. 32,120 shares of the company traded hands, compared to its average volume of 40,885. The company has a quick ratio of 0.73, a current ratio of 0.81 and a debt-to-equity ratio of 0.82. The business has a fifty day moving average price of $23.73 and a 200-day moving average price of $24.23. RCI Hospitality has a 12-month low of $20.76 and a 12-month high of $47.00. The stock has a market capitalization of $195.45 million, a P/E ratio of -66.71 and a beta of 0.76.

RCI Hospitality Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, March 31st. Shareholders of record on Monday, March 16th were issued a $0.08 dividend. This is an increase from RCI Hospitality’s previous quarterly dividend of $0.07. This represents a $0.32 dividend on an annualized basis and a dividend yield of 1.3%. The ex-dividend date of this dividend was Monday, March 16th. RCI Hospitality’s dividend payout ratio is -84.21%.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the company. Steel Partners Holdings L.P. acquired a new stake in shares of RCI Hospitality during the fourth quarter worth about $7,459,000. Two Sigma Investments LP increased its holdings in RCI Hospitality by 1,375.2% in the 3rd quarter. Two Sigma Investments LP now owns 79,320 shares of the restaurant operator’s stock worth $2,420,000 after buying an additional 73,943 shares during the period. Qube Research & Technologies Ltd purchased a new position in RCI Hospitality during the 3rd quarter worth approximately $1,043,000. AQR Capital Management LLC raised its position in RCI Hospitality by 30.1% during the 4th quarter. AQR Capital Management LLC now owns 99,461 shares of the restaurant operator’s stock worth $2,371,000 after buying an additional 23,015 shares during the last quarter. Finally, GSA Capital Partners LLP purchased a new stake in shares of RCI Hospitality in the 3rd quarter valued at $686,000. 53.82% of the stock is owned by institutional investors and hedge funds.

About RCI Hospitality

RCI Hospitality Holdings, Inc operates as a diversified hospitality and entertainment company focused on the ownership and operation of adult nightclubs and themed sports bars throughout the United States and select international markets. The company’s U.S. Nightclub segment includes venues branded as Rick’s Cabaret, Club Onyx and various other upscale adult entertainment clubs, offering private dance experiences, VIP services and live performances. Its Restaurant & Bar segment operates Bombshells, a brunch-themed sports bar chain featuring chef-driven menus, craft cocktails and game-day viewing in a military-inspired setting.

In addition to its brick-and-mortar venues, RCI Hospitality deploys proprietary digital platforms for talent recruitment, training and scheduling, helping to streamline operations and drive customer engagement.