RCI Hospitality (RICK) 15 Dec 202020 Q4 Earnings call transcript

Company Profile

Participants

Eric Langan	executive
Bradley Chhay	executive
Gregory Pendy	analyst
Jeffrey Moore;Burr Oak Capital;Analyst	analyst
Adam Wyden	analyst
Jason Scheurer;Orchard Wealth and Legacy Management;President	analyst
Yaron Naymark	analyst
Steven Martin	analyst

Call transcript

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Operator

Greetings, and welcome to RCI Hospitality Holding Conference Call and Webcast. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce Gary Fishman who handles Investor Relations for RCI.

Gary Fishman

Thank you.

listening our call website. presentation you you the of find can on those to on this phone, For the RCI Company just Information and RCI Click logo. under the Investor you Info take That and the Investor will page. to Company Scroll down all links this for you'll the necessary call. little, a and find

turn next you Actual conference uncertainties. our forward-looking want currently afterwards. or call and It reminds page. Please you to our result may may differ of any risks to those involve that that disclosed see of a results everybody materially to from call anticipated. obligation the statement. occur statements harbor beginning the of that developments hear safe It's as disclaim I remind posted We at in presentation. update information this

Slide you Please non-GAAP X. explanation of use. direct that I the also measurements to we turn to

Langan, introduce CEO pleased Eric RCI I'm President Now Eric? Hospitality. and to of

Eric Langan

I'm CFO, ones hope Thank us you you for Thank safety joining are today. to following continued have and our here pandemic everybody through all get you, and with the that I Chhay. their Gary. recommendations. Bradley loved

After reported closed yesterday, XX. quarter fourth fiscal for market the ending September our year period the and we

progress revenues good our doubled make the to COVID-XX. Nightclub with segments Total and Bombshells continue We the third of particular, in of Bombshells. effects nearly million Both $XX.X dealing from quarter. exceeded expectations,

a EPS we loss activities a we'll from $X.XX a year-end operating non-GAAP On flow million million. and COVID-related additional and $X.X $X.X share. to earned impairments allowance, cash tax of net generated We basis, which per $X.XX was noncash mainly some explain. cash of valuation of due free

$XX around that's club assuming we're have million think XXXX, of Currently, good the open Looking restrictions. revenue come of and considering at spike hand. closings $XX million, quarter quarter to should million all our pretty XX cash first clubs and XX since cases we we've the and We the $XX XX COVID-XX November. or Bombshells first restaurant in on locations no further estimating seen beginning of on in based

proceeding XX the forward, consumer believe could new develop to of are well to the have reap club COVID-XX business. Bombshells, we we Looking actively on with vaccines spending and and plan pursuing acquisitions. positioned We benefits we are our are new our economy,

I'd like Now I'll the then to up. the return Bradley? and over to to wrap turn to Bradley call financials, review

Bradley Chhay

million Thank quarter Eric. $XX.X a to Page Bombshells a you, and margin X. record turn for sales fourth Please for operating at the record XX.X%.

a Sales than locations $X low from really As a more benefited was particular, In record. locations well. to doing are another million, third open basis income result, compared new more yet our operating the on more quarter. consistent

in in college -- pro also pro particular, of sports, from beginning We football. benefited beginning renewed and the college pro of and baseball interest basketball and

services meal new of $XXX,XXX added addition, In revenue. delivery

Operating and to throughout consistent occupancy the income day higher continued a benefited from we indoor more restrictions. level follow of as sales

we end believe a a momentum basketball our and our little seasons be as strong the built weather, the of as and lot will might normal, the well baseball the that to continue at down tone at which, pro While performer. performance new cooler Bombshells of we've a to locations,

restrictions. accordance locations plan. occupancy more on line this reflected Slide entire to continue $XX.X COVID-XX a Bombshells, locations more schedules at for to operated revenues in third X. with million the other from open all quarter to turn Not Nightclub Please the Similar of fourth doubled quarter. limit throughout consistent more than with full quarter. All basis the in safety clubs being

flow in frequent sales of experienced reopened locations Most a hours. newly our and a clubs and continue customers good those open locations, our limitations, operating patrons. opened Given came particular, steadier newly to to younger business back during --

recorded income, at of even. hurricane-related of -- small Louisiana $XXX,XXX which segment mainly due primarily on additional net Club. we our we other Looking small to broke charges losses, $X.X This impairment reflected operating a and million which the recorded

from recovering insurances. anticipate we those However,

basis, going a a XX.X% to see non-GAAP on actually Nightclubs $X.X We're earned that considering on. margin. pleased million On everything

turn review few due was in to fourth of Please percentage remaining our sold Cost quarter items to the in to statement of Page X change revenue operations. a goods of higher the as to wages effective mix, about sales less and held steady and more COVID-XX revenues management continually services. Salaries the environment. of face changing in at of labor mainly revenue food cost XX% due

to by SG&A some was down expense. due fixed as amortization fourth Interest depreciation cost Income costs and to as the revenue tax lower and during $XXX,XXX percentage to well base. debt approximately a expense due paydowns savings. X% as on increase was revenue SG&A prior a of offset quarter. partially was

include this a for valuation allowance. However, did tax a asset million $X.X expense noncash recognizing deferred

currently to turn about please on have And and the with million. Slide $XX.X ended cash $XX X. hand quarter million approximately of We

flow rebounded $X.X free quarter, cash fourth to the During million.

can is our huge you fourth to teams, positive. through COVID-affected and As our quarters, a cash testament far, This businesses, strategies. have so we see, management free flow second, the third, remained our

current our million due $X.X a similar to the million insurance in coverage. year quarter. Otherwise, previously mentioned fell with some on $X about as June current flat payments Having would that, fourth paydowns. all to our annual did June due deferral, liabilities we liabilities said effect the on increased been notes September from effect XX This fourth are of renewal today. XX Debt quarter the Current ago of debt had have current include but liabilities of XX.

debt our club assets; and the clubs XX% decreases financing a for assets is X% estate; other X.X% lastly, all This which listed the turn by related Settlement. our as Debt Secured is categories. to debt secured businesses the by of: $X.X seller secured settlement. XX XX% from Texas small to the Please applies; is consists to in Slide chart. represented of X. of quarter it is by respective secured secured by June and X almost down real the million with debt in Comptroller is that pie Page the

SBA and X.X% XX last loans represented SBA million. XX is of the by unsecured been learned of Our Thursday out our that as we of: listed forgiven consists our loan. Friday, have debt total for $X.X the Last unsecured and a X.X%

Page Please our to XX turn debt manageability. to review

financial we loans As X amortizing reported, fiscal about 'XX, we during give the first non-realty million converted near-term or us to months and/or out-years out moved in -- of to $XX more flexibility. to balloons

continued about this million have quarter, fourth strategy a balloons to the $X.X We realty XX-year note. in converting

lower as around Currently, existing excess excess excess and banks debt refinance we to in X -- term. discussions For Bombshells. be have rate additional with under sell some parcels contract to are have sold for listed longer flexibility, parcel to we financial our and we our of a X

Now the I'd turn to like back Eric. call Thank to you.

Eric Langan

to of All has created our COVID-XX company-owned unlike next the other Bombshells the The through the unique right. some proven do Thank a has number well chains. itself casual we month, over X and you, plans double announced concept to pandemic Bradley. Last years. opportunity. compelling dining

them prime difficulties, self-fund new available some have of at They COVID-XX lower had in can has capital the access units. can them first of investment From restaurant or covered XX more easily fiscal Because not inception objectives. and significantly we have cases, and, locations through previously many the lease XXXX, the in prices. cash the than allocation met our cash-on-cash chains so end buy return

allocation units line Fort area. to The where plan months, next know for demographics market, Our Dallas-Fort target market if Houston opportunities; strategy. highway with each The is we Bombshells; the locations Miami and believe is capital the the open we find over X concept. have only structure can the our believe we the have patterns some we XX additional and in we but have new right are are XX big we where of markets We ideal here, so Worth, X the development X. Bombshell's found and Lauderdale well:

have and existing us management restaurant in club all to with also leverage. provide X operating markets additional We

Please XX. to turn Page

lot talking been have of to new investors. We a

review to capital like our allocation I'd strategy. So

growing shareholder very We to free flow are focused value. cash enhance on

equity the generated Outsiders per cash generate Our William and The studied book outlined -- how he to Thorndike. more cash companies allocated by The the strategy similar or to focused on we companies cash. they is in study share those form Included cheap shares, a capital in share. way to compelling of capital free back a per but shares expensive were They one. allocation very also increase not flow buying their was cash but represented realized only if

otherwise. We to rationale XXXX of have fiscal with a to been these strategic since X applying subject, strategies do whether actions, different they're course,

EBITDA, buying acquire first at clubs, good buy cash-flowing markets. Xx mergers the specifically in clubs X to market financing We estate like acquisitions, use right value. at the and seller the right The is to solid and real adjusted clubs

least XX% at cash-on-cash goal to generate annual XX%. is an return of Our to

using Since organically, we sell to when clubs, to to to strategy we expanding see specifically franchises. can't we'd to cash-on-cash XX% cash acquiring our grow XX% and buy a always second critical return. like to develop want, Bombshells least Similar clubs at mass-market awareness is

our stock, per is share yield cash the on than third free back The more buying XX%. our flow is when

pandemic, acquiring indicated $XX provide on same In the million is significant plan but us formula had our call, the resources. our to we million. with cash last $XX exceeds During using hand only shares our if

to basis. increasing per value compounded to annual XX% goal flow ultimate on by is XX% share Our cash free drive a shareholder

XX. Please turn Slide to

We the and in clubs about talking formal fiscal processes to and our people, and created presentation, the systems passed accomplishments. COVID-XX. with flying our reality demonstrated dime as I'd resiliency, our soon new And were We on March like do On to by strength, open XXXX so. unity a as turned began of agility a moment to final collectively our spend through restaurants adversity we to and able page colors.

have important have Bombshells we we the have mainly we value to investment. financial the believe -- our Bombshells last proved is the cash the not COVID-impacted in But COVID-XX-related of been on X more profitable basis, impairments. due And we analysis. During GAAP of been flow-positive, quarters, a which

second it how and it's Bradley restaurant new with lot quarter XX-K our and work to and have Chhay. new been have dedication. 'XX: we we teams During say XX-plus easy all best people in years transitioned my of was also our got a manner. that's our to seen the Ultimately, I through business. and have in in resolved And recognize Qs that culture the I'm the auditors, our this, in SEC position the nightclub third timely seamlessly fiscal hard And our of and situation. industry. and we a to CFO filed With we proud

And I'd Simmons, and like our Marco. James Rafael really some guys at to Watkins, take a especially of members, restaurant thank our team moment Bombshells: to David

country who managers carried unbelievable club team Reardon; management really Anakar, You in closed our for have because their of when all to have going. traveled really them been also other of were do markets we were and the this our been And a us been you regional management. short-staffed Dean markets effort, at out quarters; keep short around in were us, really at open of as it's to guys have and through guys to to and what see company the couple level put able impressive getting we lot help a and

that, let's operator. to the with open And call the Thanks, session. question-and-answer

Operator

first with from question Our Sidoti. Instructions] [Operator Pendy Greg is

Gregory Pendy

first operating probably as might I and the operating us you pre-COVID? different an how puts you what margin, maybe that's My just margin Can question, sustainable. to target on it not Bombshells there takes had about and just than be the know talk XX.X%.

Eric Langan

while been to well, every higher XX%. considered as our day fantastic patios, is of XX% a single shooting X kind X were We unbelievable alcohol That's or basketball Well, was you always just key for sales really -- they games the sales, are day, had rate. for think our the much It which what us bubble. helped in know outdoor our of margin. our going weather, we success we were

been lot little I seeing think We're seeing that like little regional. lot lot sports I them A with long restaurants, for bars but -- around of of what a think on of small of older are down. very that. have return things aren't that time a I'm -- neighborhood like chains a lot a closings, close we'll reopening,

think million Restaurant like, or restaurants had I closed, the of I if and chains was $X closures. have this a they're Association continues. lot expecting to that's maybe XXX,XXX more over up

because margins we a at It's think we as XX% I to our little point maybe could the But what don't be mean new is. XX% just higher, don't be hard I know to move normal really know XX% forward. I believe we'll to that again. just XX% this below So

for higher I But a think it. of it little I the will be foreseeable future part the that's think key anyway.

Gregory Pendy

of us of Great. you been any just bit outside that reasonable there just has that give sellers color you in you you're more what's what broad-based? the on do on think can little And or you M&A guys? you just transactions seeing But environment can -- bit comments maybe post-COVID, then buyer kind a become -- -- made, of little or just that a

Eric Langan

think I X pretty X with. to mean I begin is reasonable to

reasonable. really when So you I reasonable, don't more more think say it's

I there's there that want sellers become older out little tired desperate. think of want and maybe more a a the industry or few get out to exposed. don't they're because They to be they're

rationally to these have operate locations. You

that's it. I of So part think

we as of guys selling now and guys going are well, -- faces, stock is We're lot continues more seeing with their really a a much locations -- us club to talking to a our with right deals. it should give make our And in that's our just performing we're yield to the to lot perform lot I going, okay, maybe of considering COVID? the about then stock even didn't say, like And if past better, of now. I worth really gets opportunity talk said, new what my to

things So continue looking right that's kind we're at see think to going that. I And now. of the we're to

have We people. lot a in believe where we're to going May, to convention more I talk a

Gregory Pendy

big then of maybe some And and color of marquee you final know us Perfect. closings on New at the of one is any one. there clubs, updated and us kind But your types York, I restrictions a keep those Miami, gave of there. key clubs? lot just openings

Eric Langan

again yesterday. New closed has Yes. Well, York

close York just let week about yesterday We schools to indefinitely. -- New the don't a -- again closed they'll only for so. knows or open. when for decide who They us

maybe open pretty So get we'll lucky and soon. get

closures. curfew I don't other dealing Minneapolis, dealing closed, Miami-Dade in know we're with. markets if In more been XX. that's to through curfews In County to or We're and into has that Florida, check a I we're not. going I'm think still extended with now December have that.

of hear things. next couple I some the the in But days, think that. of are on probably we'll those kind news

Chicago closed. market been has

a a weeks got or very again. of of short Got think very, I we've opened period couple something. time, for closed

protocols. people get time. work employees have and keep do again. It's doing do we're are we We markets very to for And work back sad then and working. off don't we're after really best we they're well in. And markets and social off We're limiting following So get the months, they our have very It's our in. that for difficult And Christmas being X our when to that operate just safety some can how back doing to occupancies know long. to X months. doing We're distancing. work we now our for

transferred They're in meeting their areas not are where lot being wear businesses. saying New a said people things, cases found small in these the that -- we their don't and read yesterday even masks, came -- of of their tracing out XX% COVID York household,

-- wear the for to they'll They're in it's you little these you that think comfortable I distance are forced They're your social and get home, a forced be. people safer realize masks. hoping have own when to that versus place businesses to So different. something the I'm

businesses had to in sue and working with stay on All sue successful court We've but, our couple and cities. It's had time, the of living keep earning working same Hate flourishing. to we'll resort. keep other Any got we've So some keep We've nothing our to paying we've a It's We'll it. do. like a to and questions? at to We've counties a right. their pushing. employees being bills that. been sue and last we'd had in keep fairly open, the to states. places

Gregory Pendy

That's it. on Congratulations No. a environment. tough

Eric Langan

you did say, I'm sorry. What Bradley?

Bradley Chhay

I on to point first to question comment, a just the the wanted add Bombshells. first

that also the our margin. extreme Just Katy and in newest terms they instrumental our of revenue was operating earlier they're opened best-performing locations, part to of XXXX. stores And fiscal to wanted add Bombshells Bombshells XX and in margin because that

Operator

Jeff with Oak is question [Operator from Moore Burr Instructions] Capital. Our next

Jeffrey Moore;Burr Oak Capital;Analyst

looking and accelerating -- and with see, just to openings club go an of where kind not kind in X As do and now, say, reopenings Bombshells guys scenario, or what from acquisitions average you where be repurchases it's terms of forever quarters out, hope happen? of taking you have reopenings share to

Eric Langan

mean, be be I everything I is back everything Well, with in quarters, think think to to X the vaccine, open. is I going going --

to get going occupancies strong August. and pretty June, July, reopenings openings, And to whatnot, I going we're March think normal we're I definitely think through pretty see by May.

I months fiscal process ground going the running that. us our XX, building to on So get all to XX going is different end now. of these in on we're by Bombshells which 'XX, open, up, We're if be like Bombshells city September depending cylinders. we're remodels, going. to can Everything anywhere from X the is think Typically, take of the things permitting, to from doing be

can of we far at second So next one not locations X location, the off. in I a see least think quarters, opening; those

are also here stores the a a one couple hopefully, open maybe We're their those get forward franchisees both of of doing even with. we're ground-up a get And that months. versus in next and The that been build. one we'll with we're pushing ones soon talking looking X -- very up signed of at talking we've to remodel

That's could a Bombshells. it quicker. little for the So be

X, and those X at get close probably, For next acquisitions. up quarters, at and multiple the in We'll everything club looking least of possibly side, running. acquisitions I mean the we're X

get mean run going-forward and rate, can I club in to integrated in it these acquisitions depends maybe on well them maybe even revenue, the systems. $XXX-plus going -- into just be million over think quickly I how more. a I on revenue we're million we $XXX

Jeffrey Moore;Burr Oak Capital;Analyst

share about to then? by What what you would repurchases? then And have like Okay. done

Eric Langan

have don't a We share on goal repurchases.

Our share is simple. real repurchase

We have excess cash.

amount safety we call a million we we And cash on that -- that the $XX COVID don't put or any excess cash then that for we $XX what and time have our a location We We back buy stock. which something shutdowns, is whatever, cash our of to into, increased have hand. or Bombshells ran but that in million with I've have reserve, net. to it while,

bought can I you shares back last that see we about think quarter. XX,XXX

or XX, days a we -- And X of the XX, on those just was shares the immediately were and because X it last days we cash, X days, didn't it going to yes, we into X were XX, days last of that -- of sitting All our XX, quarter have X rebuilt maybe we ton bought days put the -- over before that's in we would of are and it. have reserves, anything quarter.

So said, "Okay. we

back buy Let's stock."

look have we so. we When you'll through the at to back you net this safety shares see what stock provided that continue now quarter. XX% outstanding. X,XXX,XXX on cash do stock, continue our And have no If buy free to back over XX-K, will is forward continue of our we we stock buy And immediate we will we going of the and consider to use it, excess flow. for yield in cash

Jeffrey Moore;Burr Oak Capital;Analyst

Bombshells. the been then bringing Okay. Has one partner? or third-party last essentially any a progress question in And strategic valuation with regarding there

Eric Langan

to terms. not it. everything been this But just on it. slow very us basis. may not. expectations in If going We're we're build brand to mean at But real kind we on do meantime, we regardless. evaluate depend as-it-comes There It's could no the continue with I continue We're in a going or time. we're the other going letting have to growth it to to no, pursue one early the to down. talks We're hasn't we the way we a going something, on take to very, in or that, may partner want of that.

Jeffrey Moore;Burr Oak Capital;Analyst

Okay. guys. Great quarter,

Eric Langan

Thanks. Yes..

Operator

Our next Adam Wyden is question ADW from with Capital.

Adam Wyden

me? you can hear Guys,

Eric Langan

Yes.

Adam Wyden

this tickled environment. in that capital spent forward years, capital shareholder think, as to I you the and that this But see investment be really SEC the it remarkable. XX that said, and you It's you relates to -- would have. last crap, it's unparalleled like guys strategy. well, you're a of Eric, I'm lot look, last looking adherence really to -- team as kind It's allocation rally of advice it things really And be audit company March, bankers the the And "level years did or of the to largest the waiting in consistent the believe from to or a you've ever a X testament you clearly whether company, depths find an allocation. through just this I'm demonstrated I bad up." ways would pretty to

as That short the being said, is been. look, ever company this I high it's as in think interest

against clearly, are people betting there So you.

You Bombshells basically novo. built this de concept

a totally Now with or agree whether get you you. I can third-party partner not,

you XX% do. or it. in If lie; going and return or people that. then do these like invest At -- XX% of can a Bombshells numbers, it's it's you And a don't type RICK, sale if to someone's can a unlevered to look, capital spin-out pay not something at numbers inside of for some point,

particularly I'm not nervous. So

You for enough, -- are asking do going to margins operating XX% your autograph. be nobody's for people long

margin. Wild days, In look go back XX% fact, if location early level Buffalo Wings, easily they were in their at you achieved and

they even doing a go on they and You were estate. at didn't can own consolidated basis, look what actually real their

talk but could to don't settle you I to as think in numbers XXs. think -- one it's the the the possible, don't underwrite XX, of -- unrealistic a that about definitely obviously, no wants high So around art I but

mean, running rent I your guys you margins. remember, think I these are through

you're benefiting and building the fact way. that you're and the location out the it sub-parceling getting those to obviously numbers buying from that So land,

Club little math previous look sound more $XX And have want kind of pre-COVID, burdened and back is you or an myself from you is the costs go even But still building I obviously, don't been still million But all to the -- like more. again. horse the dead a incremental. when clean a bit what you doing philosophical, were your the I've over business This maybe doing. But bit at you those and of audit over repeat more my is up cost EBITDA, And a structure. used question Bombshells by I are little to doing acquisitions to you've SEC. and were And that. about was opportunity incremental.

You've refinances. done some

say million doing So cash. in myself, were of an I bump without $XX you I of $XX I Bombshells. look that free mean, at before $XX to the was opening stock million easy, to even eyelid. And kind this and million

I So I think equity about think the the look types with like, and bit mean, done about mean out you. that are I Great at take Canadian, and when private private of this at that I market it thing capital, underneath buy there to cost of chomping has Apollo would all firms really be what

look, at like all control shareholders, trading that it's or so very with stocks of $XX at things I hard $XX the and end protect know of types offer $XX. And the turn you've day, to the away but got a to

the like $XX. stock at obviously You

shares your XXX,XXX Can to would on average. the public private to valuation? what market call and public buying about were bridge You talk initiatives me I there you in

going financials talk about threw flying these all you COVID Now with you tests at all that but we can you. and passed you, colors. They those things had the against before

a work in offer public play, put a ways a COVID You're first to is the I equity make private kind rebound for money I'm generating for I'm if thing cash. of I would RICK. to and mean the do firm looking

you. make do after expensive you that? too go you way How to that is it for them defense play the So think against you about

Eric Langan

forward. equity our have in the really when pushing We time remember, to industry, talked just And run think stock. But buy to lot past. you to We guys have got us stock keep to our it's you a don't about it. we of buy -- private the

have manage it. You to

that have it's organization. size something our of and people doing -- something, So the there lot especially experience not of that there's a out

the out You there's Maybe our out this there possibly at and our large. X operators even, many operate that could there not of private look industry. companies sector size other in too

minor in, could tricks but outside cash so make bring people And the opinion. understand they affect trade, to can my quickly really the they your that some you Now don't flow is will speak. of mistakes

If time, same kind figured at But smartest guy. think I'm the out, the the of room. in I'm say I never I guy never don't a

as -- plenty So they about that about we it? of we especially when about there wanted We to. is it was much mean this when somebody when company? high the And I crazy, Why stock I underlying $X can do could our always as Bombshells and and whole estate out think don't figure our just $XX. as people there's think Sure. really down alone. our concept buy values probably real out other -- doesn't it if think think is

the the the clubs: licenses locked X York, -- clubs markets. flow. in Miami, this clubs still X clubs X in Minnesota, mean individual our I in company up X you or mean X I And on of or that took think, based in major in there's if cash value of a lot I our Miami New of now Chicago, hidden value value, certain

So...

Adam Wyden

I math quite Yes. [indiscernible]. is my I mean what that's mean kind of simple.

pretend because the learn the and did to Bombshells Look, capital about Now you operator think run I your don't ever to opportunity your this and unlevered okay, at isn't that, can your out do on buy sub when stuff Xx that buying own -- at franchise. myself, look, own. obviously, we could stores. say That and thing you parcel up and the an and this XX%, EBITDA. can fine. This Bombshells, talk I at that's I as investment -- stock open then than look can maybe an XX%, is that XX% it being job of If allocation all it, even I said, you return, a we make I argument company-owned If real can better estate, a a right?

is the million market But doing, I a simple math $XXX I'm cap. mean, you're right,

got $XXX net You've in debt. million

non-cross-collateralized property-level of -- mortgages. which You've got

to -- another million, you doing $XX real $XX You're probably call, unencumbered what million non-income-producing I right? would have estate,

look right? I It's got So underlevered. in this at myself like, net thing's okay, $X.XX and debt,

to let's relates you're think against of Your million mean of term retail buying EBITDA, for of a that's kind EPVs But kind which too COVID. at $XX be I million $XX hard growing the I that's kind in an it basically to $XXX as normalized, I concept say mean, Xx. could near million the restaurant conservative beat.

is so doing mean really you stock I'd at I to at Bombshells. it $XX? but get it get And I mean buying got -- I do I mean, $XX, look, that seems about trading $XX. totally with out. like acquisitions sense this the I shares doing mean thinking question wrong? the am like the I at Bombshells, it spread club this like makes thing totally only the have how But justify I I point, back becomes, and

Eric Langan

you that, and XX%. give or acquisitions owner debt going way that going of of what from done free XX% to take flow. -- look or cash their in XX% we all We're to that or Owner of to to remember, flow. We're going I'd we is back you going go say, keep get debt, but got X free to debt in give -- have We're free cash is Well, been flow. holder -- owner. on look the free to XX% this it. We're it, going say And is say the the and flow going XXXX do holders. cash is this okay, We're -- of this cash XX we manage XXX% we've basically club we club to well, making amount. to at the we right? We're go we at going and our and to

and how the of managing how the It's to and own, locations. Scarlett we we're done couple we've So how get upside. Chicago. we basically did XXX% Pittsburgh. a of It's other It's we did

buy cash company's those operate and and them, And owners in really go used flow successful but what been cash the pay increasing But of not to generating as regardless still in their of our of business to actually we the with industry does, cash only the pay in, financing, our us. club don't our ability flow our actually use reputation reputation very successful out to we club free our actually side there increasing we And acquisitions. We have businesses. for them. that's been the the of flow ability very the well. -- the and We've

which with then put roll us able get put rates up. We real cash or we our debt some due, through investors financing, our our as weren't to longer-term or if time, been of able other other into we it portfolios to balloons But interest time whatnot, it. that able lower wouldn't far, short-term estate in, existing come to so and -- roll and balloons go some most been do we've forward every to force

So...

Adam Wyden

synergy of creating you're is what lower charging basically, saying at think net assets So club what you're multiples you for? than you're the

Eric Langan

Exactly. Yes. Yes.

Adam Wyden

moat can God's right. brand you, Well, here, sure, look, buy the come from I'll back deals stock your you X.Xx do to fund All and mean, builds and it and It's EBITDA pretty and work I it builds this quit hedge and mouth can impressive. if look, you going Eric. a for I'll billion I to be my mean, is $XX company. under

It's is forward company. this to largest recognition be you to not. the in seeing and market business is guys look, So there, because shareholder And looking up, happy I'm pretty performance the the level impressive. I'm

know else So us the we how of can be please helpful let step way. next

Eric Langan

Appreciate it. right. everything, Adam. All Thanks for

Operator

[Operator Jason question Orchard next Scheurer with is Instructions] Our Wealth. from

Jason Scheurer;Orchard Wealth and Legacy Management;President

what everything might time-wise though. like wanted terms was I'd Great interest How at you the hear clarification, to quarter. together the do savings restructuring think are debt rates? had you and low and -- guys a some record much like how bundle be? get better And these going. you could in cost I that looking rate of

Eric Langan

Sure.

had Our It We K We current the to We're financials. to goal out. million. get have depends. had XX. close before is trying to $XXX February

have to cash positive flow, show We whatnot.

to filed. bank basically last the we night everything we just after sent So

start to forward. probably moving soon. appraisals We'll we're not. appraisal the working are on A some lot have to the We're going get financed, properties so were already And updates. of

We package survey up. that. may surveys full our of ahead few wrapped the couple Phase be a environmental Most get to done, should have whole on done, speed But may that a pushing now be K get of environmentals to we'll to basically We have the studies current. is get get. X

weeks is, XX So February now. XX what, from

we'll news time the Q. hopefully, we file So have some the by next

Jason Scheurer;Orchard Wealth and Legacy Management;President

what any new can in rates give as Okay. -- you be range-wise? of And idea then the terms might me to

Eric Langan

going real #X, be take, Slide in and X% to debt. the will in VIP blush to probably the We'll if basically, $XX.X you we're current million, going unsecured Well, at look in XX.X We're it's to seller estate. million be notes, X.XX%. X.X% range. going there. to the all the But be obviously, That rolled be all in take in rolled rolling That will there.

It's your million even actually -- to going your anymore. $XXX million. so And be that's $XXX not will basically be that

we some think down of I paid it.

something like probably now, million $XXX it's that. So like

are all out, the on in will lower level. The what that's the have on we'll to right the either do. depending appraisals. us we'll in cash to appraisers bank let amount And at $X the going to come pull So or million going depend

Our paying service new And sorry, on $XXX,XXX that $X,XXX,XXX we current a when month. do payment, will is $X,XXX,XXX. be -- debt the I'm we

under in to going about cash for or debt -- $X year. $XXX,XXX a year about we're $X So million service month save just a outlay million a

get the SBA we're on to debt. it's that we have other it -- forgiven significant working pending. And done. debt. still loan of They're the -- loans waiting million other now. assets been controller's has but We'll up will now, unsecured we've have We'll And learned, $X.X we and one as we're give payments top And there, So X. we'll have on rolled the the all of that hear payment instead have there. right this we basically these very basically all us have

get good what for very see And happens we So all on with us that a those. done. that go-forward we'll basis be should get -- once

Jason Scheurer;Orchard Wealth and Legacy Management;President

questions. industry of couple A

you're for... of operators. to you started some would May guy conference for business years the how just -- are many the big with percentage XX And that ago dealing by target you are speaking basically of that and groups the What have people? clubs in one, clubs like with these owned going guys you're First them this of

Eric Langan

that basically there's that one person people. there's usually, one entity. where control by like X I deals investors. deals, one owned occasional control smaller Well, are But dealing usually, or the group clubs, a with we're stuff not But in they're controlled the He of or guy dealing -- that. have believe, guy of partners with. group There's may one just a it's we're majority dealing of We're with. equal

Jason Scheurer;Orchard Wealth and Legacy Management;President

I was a say, people Like footprint you structure instead to the maybe the Yes. bombshell having COVID thing capacity? guys at the a that rated have higher then now, -- of had in you can with have overall so let's Okay. any the maybe get mean just restaurant, XXX design other with you discussions with architectural XXX. increase like

ideally new these Just say, in only capacity operate the around intended. case originally is But "Well, at capacity." and guys XX% like what turn with XX% XX% of you design you can the

Eric Langan

Bombshells The no to have typical requirements people occupancy is interior patios of already. The XXX outdoors. XXX they're because

already don't we -- really need So we extremely have large restaurants.

a large get is been big able you're that's key been place our of people to not so success think to seems are that in. each other. top our on I sitting that The the but restaurants have busy,

are XX our to put standard Darden we of because X,XXX people people put foot square people and indoors plus to or -- get XXX all still or you're restaurant everybody go locations, feet can in you you indoor, indoor our X foot tables X,XXX together. be Brink still When and outdoor, At square to -- XXX X,XXX there, the X,XXX starting square close apart. foot

So it's been really good for us.

number social distancing. no enforce there's while we do patios, occupancy, Our

the around You restaurant can't bars. walk the or

bar and the areas -- can't You stuff.

seated. have You to be

to gear have have your up. You

I to of think And have mask have I they a that's and little guests. to We've created sense that's need security they why And that's come our on. for back. why I able do locations, that. You think think been those like your

Jason Scheurer;Orchard Wealth and Legacy Management;President

guys an stuff other your assuming of compared overall costs to as franchisees a prospective than as that much any are pitching out about liquor to higher to overall and the like us most then And sales relative I'm whole. thing, the other right? I guess Is are Bombshells that, so the ones industry too, concept. the there, food you When just

Eric Langan

meet a a couple place. meet-and-greet X drinks from the to XX-year-old drinks guests it appetizers call I are they mix. bring Well, right, really here. of the live lot appetizers. up convert. in. typically high-end -- We're to and our going the It's are they're and bars sell going that to greet of more to when a.m., We XX to afterwards. cheaper than It's to We because more going kind because that we XX- go grab p.m. DJs are that's We're

of a out head they're the drinks. grab going hungry, to a they're of then orders, going. them where so couple couple some And appetizer might be going they're to to of night And for

in going each late to hours. go come other, they that's for has at come going meet going are to success A group up. to end They're night of They in. staying to to And key key to real Bombshells, guys else. the Our those been up to leave girls get They're a morning. meet they success someplace when never and But up. Bombshells in. else. They X:XX someplace They place. and group head been they meet still head a another

of margins, night. our because do And the the newest late-night that hours correctly concept that selling very that, stores you especially out that's our you like we can X said, on And far X have well very with We on extremely appetizers, late the the focused doing you're extremely, as very you're done see that well margins. We higher drinks it. it built numbers really build I high-margin solid high-margin beginning. Because we where like selling locations -- reap high reward in you're is and -- and well. where, said, from of started the

Jason Scheurer;Orchard Wealth and Legacy Management;President

between whole customers of the one the just crowd. breakdown What coming politically and men thing into correct say Bombshells dispel the then is you would to women? last And the

Eric Langan

it Bombshells at in night, certain mean, there's men, and times then say the I'd more and in where late -- is probably could we're evening XX% locations. the women rest I in women, than probably I been -- I've mean mixed. XX% men be

Jason Scheurer;Orchard Wealth and Legacy Management;President

the just -- things the politically little correct hear world. are like those in to I I

Eric Langan

kind hours. That's business, maybe. flare I slow Peaks, and that's p.m.s mean, lunch problem think And Twin from helps. our that's as a X I X our is, Peaks. night, or -- That's us Hooters to to those to we Hooters that from to business of Well, we Yes. associate where comes move everybody kind -- where move we as the have of with are little for Twin dinner and dinner, is of our of XX% or tries while and late

I want a Because in, the this want, I this they because -- to cater want our rocks But are right? menus or beer female-friendly. what menus Oh, whiskey drink or all mean on I -- females, right? our of they large know menu want basically, of don't -- very of whatever. all scotch, on guys or our guys go our -- our drinks all I

drink. want a The don't come They they know they want big want. a fruity in, females one They drink. that which

And been so and they it's different worked the have all -- drinks menu, very these it's very, well. on

Same food. our with

we've everything male-centric I what make to Hooters feel or menu. away Twin done And if you have we you go call, at everybody a a chickens. salads much Peaks, we and do seafoods much, And crowd, everything wraps different into they welcome. to very, have menu, male-centric basically If menu different and our to from that and and that where look stay larger caters

menus and hats. They army a hats. fold put little on up We that the have army Kids them. games make on have kids little

into what our that I lot, get restaurant thrown we're don't family-friendly. I So think very mean I not that's but very category concept just is. -- We're we female-friendly. We're know a

and small a think place concept restaurant. out fun, wants and they uniforms have a go fun experience and key, just girls have boring the right? we we the at it's a the real because that's of it to -- part our I very and make but because a Nobody have

to to if you going want Now it's eat, go not dining. to you're go just -- eat I'm not experience. going an It's -- casual

to go going Chipotle. to You're

to go to going Payway. You're

You're dining going deals. casual go to fast, to quick, these

about about. food. But It's experience, and just what if go have you're not the going Bombshells experience, to an the out that's is

Jason Scheurer;Orchard Wealth and Legacy Management;President

things quarter, right. All forward just great. That's a especially to the It's Bombshells expansion. doing, I'm fantastic looking you're the with and

Eric Langan

you. Thank Yes.

Operator

Our Naymark Capital. Main next X Yaron question with is from

Yaron Naymark

with and Wyden I April, think second of and X did. earlier your the I cash to in managing as quarter. said was managed well crisis. on I Adam comfortable strong every guys you in as a were days March still if you Congrats through through guys to remember ask terms that everything balance you you you calling

Eric Langan

won't it. was the sure going It pretty are got like, moment That exact came to were do go right lie. going what in at needed okay, money I I to -- close when on to We just opened down -- them things actually were Bombshells. the were we of million were weren't on. we opening at hand -- the we we cash supposed PPP think what time. we around here. mean $X to we because were X. here? We to we We we hearing scary We didn't from I were be all tight. open

going And so know going if do. at know a X. didn't We even were come. few how were customs a to open We didn't time. we open to tried going they We're to to

And so...

Yaron Naymark

Yes. on Yes. Congrats through. getting

Eric Langan

Yes. Thanks.

Yaron Naymark

mean a with mid-cap a of moat, a strong have at I combination, wide think an rare have a incredibly small- land I that like guys business to company in especially has and it's you return management of really deploy guys you a capital team, insider the with to that valuation capital at have rates shown low with redeploy ability guys and at. can ownership the with great you

only it's I trifecta. excited So shareholder. be a to thing... think I'm The a

Eric Langan

low working valuation. cure what That's We're going that to we're on.

Yaron Naymark

guys selling don't guys you Yes. Exactly. you I Adam the have with The think hope because is on a... only disagree thing for $XX company I I consider even

Eric Langan

we It's the put new us just give not and we've of a Bradley We has software and used created, together wouldn't. the systems to get. teams take information a for to that us give just in mean can And with it just at that this to in accounting the access that weeks sell amazing. that I'm to click We Bradley us Bradley put it's put it immediate looking built now to company. button. machine to -- the I that

this and information I the mean, -- different have teams may of how get systems things, they accounting it I story. without and the the side that's created to on And that a ability mean been

not best. may best had had possibly that a always have it do But could time was we But the data, decisions without so data the going correct have what difference. at their can management made the data, been big not on and Our much. always we on,

Yaron Naymark

Yes.

is, it's club debt, the that the on times, So you have the fund properties. you do of fact and question when you I lot mortgages seller mean, a touched earlier note on acquisitions, with main I them whether

tweak clearly, it on And took to most then those are the build-outs. and the And on a Bombshells, you and find on equity infinite. returns right right recent while the which so returns the locations the basically

on But extraordinary. are also like the returns Bombshells

given share out at can't you cash going excess especially to have at capital flow fact get XX%. cash hear you're so just of growing the targets great XX%, free going guys guys per be you flow -- you're you sounds have I it if per wondering And to I'm free these that think -- guys to long-term why growing Bombshells there XX% mean you franchisees you that said side. the to on share

get acquisitions you a And be infinite scenario you other capital don't guys where potentially your building know, doing the could ROE. Bombshells something. you're club are you I or where you own on into earning, paid have Bombshells capital putting their people So are XX% on the ROEs The are that. in with side

those grow reinvesting cash cash percent of your XX%, infinity or taking like you're at at why free if can't per So types and share flow rates? it

Eric Langan

our at great. XX%, grow XX% I if we're XX% cap to if I look years about started Good say XX%. But since we everybody oh. job." and and Well, everybody you XX% says, goes, X XX%, averaging If say strategy, the grow "Oh, allocation

-- at XX%. to reality I I we And after need year But we just right? years the is have some we may every year, mean that year, realistic do single goal, a sure, And little move goal think and XX% is a is we to reasonable as difficult. XX%. And to a overachieve, overachieve that's forward. why think hopefully, continue we'll to want more I we

we're in significant big back that. I to a going see return as -- to thrown see as reopen think right But we wrench has COVID Obviously, going a 'XX soon everything, still up, of and we're be And rate we've going that's 'XX run with versus to 'XX numbers or our increase say, because what run rate 'XX our managed how was. our COVID. through well in,

Yaron Naymark

Yes. know post-COVID. every these way year generate taking I all can't don't in like that. higher reinvesting even I in get and back grow cash you your theory, it year even -- mean like I'm don't mean baseline, are I that, thinking guys why pre-COVID, at if projects XX% once you than that you're not returns every into your

Eric Langan

million And left. another X a note, we year Bombshells Bombshells, service debt, almost we may, as now get they service. than that's in -- if a is even -- want say X our saving could debt That's -- new we million for cash debt more manageable layouts won't debt high-interest it us right with long-term acquisition. to any high-interest possible do $X pay club I but -- We more is have off $X

to more more by use growing thing to put operations. buying is cash either only with back the but have -- our our So or we'll operations, stock do buy

Yaron Naymark

And probably if do cash. both enough you generate

mean I sounds XX% XX% it the So overpromise, underdeliver target. is like to

Eric Langan

better our try what that's definitely XX% mean don't of course, that's want mean And want for we XX%. to we can. do of That's short certain. do. I don't we always, like I -- to we fall to to to we'd -- when

Yaron Naymark

Right.

-- what think X signed And And do are you Okay. just of question of on and these is them. them gave of color kind along could There's some you? second That's on you then some far last franchisees. more of the you color getting the likelihood give How helpful. my one here?

Eric Langan

fast next I've this up there, know other of hoping once one, their and We're think it other them. have that that quarter, that. prepared I first not think, one, our very From guys first once they your well crazy. do I kind I kind -- definitely, you of rolled first up. I'm signed by pretty quarter, -- heard we'll if operators from for sign got for It franchisee

because COVID. it just little think a will slower I us be of for

pick think end year. up we'll really the probably of at fiscal right I this that

October, even maybe in that's next or September start August, we'll lot quarter, interest really think July, in seeing I in going a the November, more summer, Bombshells. this December, when So

of could locations isn't longer. of Well, until we I a Texas with Florida to market. tell military show yes, the could take know couple and just open that's the going -- in and open work another up small try concept." and if that, And guys. thing. this Texas think market to this this lot It's I just our hey, up It we don't Because get military "Look, concept is part the from but it not works I I take everything, in a it's of or once the them, what that our a piece.

And to even I pieces, be the why came I together, in very honest think puzzle just created put it's all see it successful. with I all beautiful so well. can't we're just these little and pieces and very, concept you, explain little together, full this the and working we

We'll items, soon So some everything new menu the Bombshells that another with and change take out keep doing focusing we'll put selling so it. important keep brand keep on aren't that growing are things items going awesome for well to here the fresh. and keep it. We're

well fun keeping the and and that's it it's think been worked And fresh it. reinventing out And exciting. constantly real We're key. We're I just constantly for us.

Operator

with is question next Martin Steven Slater from Management Capital Our

Steven Martin

for you day, hard sentiments was never that gauge. to rose quite what been guys. bad this to were I guys you would team I the know the through the if that was what given didn't I very hours a that crisis or be, the job to enough to through occasion. was how know so period, having was that in the confidence knew the But crisis, great you going shareholder I tough open, was it previous a going you environment. talked you any management guys a a there have done to Having closed, but manage could it staffing on while, callers than had echo how of be, a more be

Eric Langan

certainly n Thank tried. you. We

Steven Martin

the of I'm and I'd to while achieve callers' A previous just couple controlled wanted question growth than that cash of growing target. I that. for intelligent to flow supportive things. growth say reckless growth, about ridiculous some One, all -- rather see

great on have I'd basis, You a of controlled see job a love to and guys to rationalizing, that. growing continue done

Eric Langan

Yes.

that Steve. debt-to-EBITDA We and up, stock nothing and ratios. I look wait. the we capital for allocation And we the let sit, price a is back And look than I because mean slide. fit everything deal. -- we see our those mean we mode. to and and which different -- the wait what think us our I do grade all back we XXXX strategy. to that's look cash you We We just if we everything. we And just at deal from the take and to much fifth we buy make We -- -- simple it it's of always different mean, math, at metrics, total let go while metrics go much we to have mode, you'll cash cheap, we build allocation is each the deeper these or right? and slides, capital each generate. strategy, our these has in We simplify it right here internally, stock, call at our for look just the-do-nothing and back guys and we I at

the deal. happy the because current with is that's system We're at to meet a our to without stretched. growing systems, make that find systems, mistakes. all. is have, stress. to limit going key keep when to systems: No our systems in on we quite no wants system We're be without hurry That's ways to cash always a everything. pushed No to we accounting We our stress management internal to any everything the real be to be stressing systems, don't the do like flow goals undue able we taking seem and to

that that worth And over the cost not mistake growth. at day, it. us XX in end X learned -- the it's from just And years X of the the we've of last can years X,

So we like and to take it steady. nice, slow

Steven Martin

appreciate that. next Well, led And for you into I question actually my Bradley.

year look next your the savings the X be X X think to cost or club that got did on to ability a G&A and or -- start X might you incremental grow years when at if to were cost you X a know, X overhead I place restaurants would or you reduction over you what during clubs again, or do you've margin? don't or out systems X some in grow, acquisitions? it pandemic, and you the X the What the and Now

Bradley Chhay

going. I back these normalized Sorry. I has don't fact trimmed data we margins, exactly an But to lot in it's a that the we're know that we last X kind direction not anomaly. just fat and skewed to yet, quarters, on come take is myself expect and off that mute. we our of this Hey, the of that sure year's we're on. given know

want normalized until get with the information. right? couple of open hard at about to don't get it's the staffing, very it's occupancy, hours, right worth normal a back to hard very at to say. say at it, of you that quarters margins we with I give right everything our So because can't I

Steven Martin

the Bradley, restaurant side, and to the expenses G&A. margins overhead units grow side control and corporate corporate the add and less I about ability your more but divisional addressing more the retail was

Bradley Chhay

we're of of we're we our control The to plan. that during as is work When for with our level. much willing doing in negotiate lot insurance to can discounts to reduce that that salaries fixed can. terms different our information always them We're and wages, press with in corporate COVID we What that or we with at are plan vendors stressed, cost, best our markets, seeing the the overhead And companies learned is SG&A the and whatnot even with them. us. as to a to work and That's possible. opportunities control

Steven Martin

headcount? And what about

Bradley Chhay

grow. leveraged to lot our systems I of expect the basically are A now. headcount to revenue per continue

We have lot automation of a in.

corporate bridge we our artificial centers, to between here and to would couple environment. gap use whenever -- a data AI before, our and So have and of our I lot systems accurately had quickly add how do I X profit or the continuing X and really to of intelligence A there. fast, headcount we're into get

keep headcount automate, revenue a our So we if continue manage per at continue -- and our continue as we'll salaries and headcount margins to growing reasonable per to wages, expect rate. to we I

Operator

take We Wyden with to are from one ADW going final Capital. follow-up Adam

Adam Wyden

me Adam I thing if said, clarify Twitter. be triple-digit X Yaron's of just want X our easy the to do would $XX." Bombshells. mean, that's out why is imagination On selling to, can pencil look, I for would a -- before actually. an this it advocate I guys things, today, really I stock stock on using it you on "Well, can on and he want comments,

firm, public offer, States You step destiny. that all What and and of right? fund infinite this and or why I and he's all sharply freaking about by private if like a Aaron is means Wyden shares And in is equity you public blah, out that $XX. make great you're don't in get a these is Renaissance sell and saying no buy And am blah, bunch blah, the indicating that for and citizens black know If I this I'm Adam United these being should there, both blah. I'm markets one things it. blah, hedge and or So manifest something, right, get you shares. the Apollo can't business. the SEC moving of This of is going these people and I'm why some on the why I country and a I'm a one want contacting of out up, telling stock I guys, country go is and, the us a if buying and I'm --

Great Apollo sell should company. $XX. You mean, look the I what's Canadian the fueling is Gaming. to happened at

of I that saying front implying them. opportunities. pretty like that companies that's you've see means can Now company-owned I COVID I mean mean Wild don't this a Chipotle, was unbelievable. done I Wings, XXX-unit of mean there Buffalo then no patsy, incredible. am mean, in by the have the no. some just you're I'm Lollapalooza of I freak, I unbridled coming f***. types these -- EBITDA and aren't do XXX out of of what lot I franchise that value

no I want saying, I mean by at sell sell buy it I $XX. million it $XXX. to I'm, I at didn't shares And so look, like because means, to X wanted

-- not guy," So on it's math cream do basic MBA rises. who's I can't why if just you So saying, believe to I'm of of a said, I lie, that Numbers opportunity. want it, I you City? And the someone be How saying, able me I that. I Cream York a this smart scope in wanted do, to to just got a us can was say a do you don't That's value Google Harvard and like like folks. to just was you New and to going that look, to the I crop. answer saying. however want some people "Look, And it? see, obvious to get fifth get -- was want don't what -- can grade say who -- rises then to I full that. is become

you a roughly month And And was the analysis That said in end December. flow of in was, you have my then the a you coming had I in savings. exiting question refinance in XXXX. that not free mentioned other cash $XXX,XXX

can cash at a even XX So multiple. as free about as of $X I flow that's million tell, far

an right? a that's return growing a maps. flow if can I you acceptable and most XX% a year cash at a we should trade we argue at X, trade investors. Now you're X, total free for at why mean on return That's bucket XX%

I cash will and it and much growth do any really doesn't this So $XXX easily that I more. does think you XX that's At free $X a thing can multiple, I mean tell flow, why of at discount stock, Bombshells.

to get my I $XXX. how that's So

that's share -- opportunity, if to in someone if mean, multiple, multiple, I refinance outstanding. alone, listening I relates That's that million what the that? were $X.X, don't was as than But in to less you believe $X XX a mean at It's shares actually a at the a X is I a little even share. -- anybody. constant call, fraction well that mean mean as it stock that's of our lap. wouldn't know, refinance. falls completely I don't of just the expect ludicrous. million I about just it's on I their XX%. a conference mean share almost didn't company $X I go really I this as I that. up some equity follow to by think I $X $XX

than do a to anything other phone You don't call. make have

Eric Langan

Well, right we'll it. That's just we all do keep now. can pushing

we're confused else if doing But that, But I very what other market in February, by says, up. do. anyone's market. to is that. we mean about okay. we think That's the -- than catch accurate. That's going just the worry keep close loan Don't -- what Buffett will that's everything just not December, I right? just the will

business, Just run catch your will the and market up.

and So sitting catch just to waiting the we're market for up.

X million it. meantime, from share amount. XX.X and of We've a advantage the now back sitting of XXXX 'XX, taking on K. million our of almost we're reserve fully we're in or And our in So as diluted the shares filing taken down we're the basically under count

even generating may So if we can reopened, continue everything get whatnot, with these to shares cash outstanding. flow keep less until closedowns have we we and

the 'XX. focused into is just just move we're -- fiscal that on right we're operations -- keep of seeing. of going on locations a bank right we side working And open. focusing some plan the now, the know get started. We're and I said closing couple that with forward. working be we'll real are locations day-to-day now, moving those our on these to adding financing on estate we're we new on And I Bombshells you're as

Adam Wyden

guys machine I are this and great well-oiled And think on a doing job, Well, like good. sounds sounds got Eric, you tremendous look, the it call. Bradley you've going. And

forward I rather later. So plaques triple to and so many look things than in more digits -- sooner hopefully, -- these special of

Eric Langan

was were it crazy. to said you when Well, going right. thought All go to you I $XX,

Now $XXX, get keep us we as "Okay. just it, I'm keep mean just this think We'll you're thing rolling I keeps you'll long doing and I as producing. there." saying, saying

staying been it appreciate And that that the what keep shareholders they you now stock I side in pushing the as keep you. all up, had out. us you're growing to the for We've up goes we've on of going here with that's -- and had the as So right sell we're the soon really And past. trade.

So it. we appreciate

Operator

to reached over back it remarks. We would management to for the turn have end our question-and-answer I of closing session. like

Gary Fishman

and you. Eric, season you and our subsidiaries, and year. wishes new thank investors thank questions. Have best our you, Thank Eric, your great Bradley, the for company holiday and to a all happy a for behalf On of day,

one visit restaurants. stay clubs our as an or always, of safe, please Stay And as always. healthy,

Operator

Thank conference. you. today's This does conclude

You may pleasant have time, a this at disconnect and day. your lines

Gary Fishman

you. Thank

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