RCI Reports 2Q25 Results, Hosts X Spaces Call at 4:30 PM ET Today
HOUSTON – May 12, 2025 – RCI Hospitality Holdings, Inc. (Nasdaq: RICK) today reported results for the fiscal 2025 second quarter ended March 31, 2025. The Company also filed its Form 10-Q today.
Summary Financials (in millions, except EPS)
| Metric |
2Q25 |
2Q24 |
6M25 |
6M24 |
| Total revenues |
$65.9 |
$72.3 |
$137.4 |
$146.2 |
| EPS |
$0.36 |
$0.08 |
$1.38 |
$0.85 |
| Non-GAAP EPS |
$0.65 |
$0.90 |
$1.46 |
$1.76 |
| Impairments and other charges (gains), net |
$2.1 |
$8.2 |
$(0.1) |
$8.2 |
| Net cash provided by operating activities |
$8.5 |
$10.8 |
$21.9 |
$24.5 |
| Free cash flow |
$6.9 |
$8.8 |
$19.0 |
$21.5 |
| Net income attributable to RCIHH common stockholders |
$3.2 |
$0.8 |
$12.3 |
$8.0 |
| Adjusted EBITDA |
$14.2 |
$17.2 |
$29.9 |
$34.7 |
| Weighted average shares used in computing EPS – basic and diluted |
8.86 |
9.35 |
8.89 |
9.36 |
2Q25 Summary
Eric Langan, President and CEO, stated: "As previously announced, revenues primarily reflect the sale/divestiture of five underperforming Bombshells segment locations and the effect of severe weather on company same-store sales in January and February, partially offset by improving trends in March. Profitability reflects lower same-store sales, reduced costs from divested units, and lower impairments."
Back to Basics 5-Year Capital Allocation Plan (FY25-29)
- 2Q25: Acquired Flight Club, Detroit's premier gentlemen's club ($8.0 million for club and $3.0 million for real estate).
- 2Q25: Opened Bombshells in Denver, CO, and rebranded/reformatted Chicas Locas in El Paso, TX.
- 2Q25: Repurchased 56,875 common shares for $2.9 million ($50.92 average per share), with 8,832,125 shares outstanding at March 31, 2025.
- 3Q25: Acquired Platinum West of West Columbia, SC ($6.25 million for club and $1.75 million for real estate).
X Spaces Conference Call at 4:30 PM ET Today
- Hosted by RCI President and CEO Eric Langan, CFO Bradley Chhay, and Mark Moran of Equity Animal.
- Call link: https://x.com/i/spaces/1djGXVvkXgkxZ (X log in required).
- Presentation link: https://www.rcihospitality.com/investor-relations/
- Participants must join via mobile device to ask questions; computer access available for listen-only.
- No other telephone or webcast access available.
2Q25 Results
Nightclubs segment: Revenues of $57.5 million declined 3.1%. Same-store sales declined 3.5%, affected by weather in January and February, with absence of Baby Dolls Fort Worth due to fire in July 2024, partially offset by five new and/or reformatted clubs. By revenue type, alcoholic beverages declined 5.3%, service declined 2.9%, and food, merchandise and other increased 2.4%. Impairments totaled $2.0 million versus $8.2 million prior year.
Operating income was $14.6 million (25.4% of segment revenues) compared to $11.0 million (18.6%). Non-GAAP operating income was $17.1 million (29.8% of segment revenues) compared to $19.8 million (33.4%).
Bombshells segment: Revenues of $8.2 million declined 35.6%. Sales reflected the sale/divestiture of five underperforming locations and a 13.4% same-store sales decline, partially offset by two locations not in same-store sales (Stafford, TX, and Denver, CO).
Operating loss was $227,000 (-2.8% of segment revenues) compared to income of $699,000 (5.5%). Non-GAAP operating loss was $67,000 (-0.8% of segment revenues) compared to income of $750,000 (5.9%).
Corporate segment: Expenses totaled $5.5 million (8.4% of total revenues) compared to $6.8 million (9.4%). Non-GAAP expenses totaled $5.4 million (8.2% of total revenues) compared to $6.3 million (8.8%).
Consolidated operations: Impairments and other charges, net totaled $2.1 million compared to $8.2 million. Income tax expense was $1.1 million compared to $5,000, with effective tax rate of 25.1% versus 0.7%. Weighted average shares outstanding of 8.86 million declined 5.2% due to share buybacks.
Debt: $241.5 million at March 31, 2025 compared to $235.5 million at December 31, 2024, reflecting Flight Club acquisition-related debt and Bombshells construction financing, partially offset by scheduled pay downs.
Non-GAAP Financial Measures
Management uses non-GAAP financial measures to clarify operating performance and cash flow generation, excluding items not representative of ongoing operations.
Non-GAAP Operating Income and Operating Margin: Excludes amortization of intangibles, impairment of assets, lawsuit settlements, gains/losses on asset sales, insurance gains/losses, and stock-based compensation, assisting investors in evaluating period-over-period changes without non-operational items.
Non-GAAP Net Income and Diluted EPS: Excludes or includes amortization of intangibles, asset impairment, lawsuit settlements, asset sale gains/losses, insurance gains/losses, stock-based compensation, lease termination gains/losses, and related tax effects, calculated at 18.1% and 18.4% effective tax rates for six months ended March 31, 2025 and 2024 respectively.
Adjusted EBITDA: Excludes depreciation and amortization, asset impairment, income tax, net interest expense, lawsuit settlements, asset sale gains/losses, insurance gains/losses, stock-based compensation, and lease termination gains/losses. Used as core operational performance measurement and acquisition benchmark.
Free Cash Flow: Derived from net cash provided by operating activities less maintenance capital expenditures, serving as baseline for capital allocation strategy.
Forward-Looking Statements
This press release may contain forward-looking statements involving risks and uncertainties that could cause actual results to differ materially, including those associated with operating adult entertainment or restaurant businesses, local business climates, launch success, cyber security, real estate transactions, and laws governing such operations. See RCI's Form 10-K for year ended September 30, 2024, and other SEC filings for detailed discussion of risks. The Company has no obligation to update forward-looking statements.
About RCI Hospitality Holdings, Inc. (Nasdaq: RICK) (Twitter: @RCIHHinc)
With more than 60 locations, RCI Hospitality Holdings, Inc., through its subsidiaries, is the country's leading company in adult nightclubs and sports bars/restaurants. See all our brands at www.rcihospitality.com.
Media & Investor Contacts
Gary Fishman and Michael Wichman at 212-883-0655 or gary.fishman@anreder.com and michael.wichman@anreder.com