RCI Hospitality (RICK) 6 Aug 212021 Q3 Earnings call transcript

Company Profile

Participants

Gary Fishman	Investor Relations
Eric Langan	President and Chief Executive Officer
Bradley Chhay	Chief Financial Officer
Greg Pendy	Sidoti and Company
Darren McCammon	Cash Flow Kingdom
Doug Weiss	DSW Investment
Adam Wyden	ADW Capital Management
Jason Scherer	Private Investor
Steven Martin	Slater

Call transcript

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Operator

Greetings. Welcome to The RCI Hospitality Holdings Conference Call and Webcast. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation.

As a reminder, this conference is being recorded. pleasure RCI. Gary my Investor who now for Relations is to Fishman, introduce handles It

Gary Fishman

you. Thank

of those anticipated. call Safe For Forward-Looking as non-GAAP click listening That presentation Information you that Statements information of of under beginning will disclaim we on Page find you just X. obligation We materially the the our turn is disclosed Actual to take It can you receive you RCI scroll risks of our result occur Please X at involve down page, find to reminds remind differ Company Information Page and RCI call uncertainties. any you website, the measurements the you of our of you will conference that direct Company results It this to Investor in or the currently all turn a I may those afterwards. to want Harbor the update investor and on explanation necessary hear posted and that I everybody logo. may the to our presentation. links. that and phone, developments Statement. Please to presentation. use. also from

New Lastly New, the tonight area Cabaret to management Manhattan's everyone at meet club. I join number gentleman's X listening like York invite New would Rick's at us to one to York City o'clock to

Empire between Cabaret Avenue State the it’s Hoops at door. sister and tour the West is also club around corner and XX Xth bar can street sports located You Building. Rick’s Broadway XXrd from next

door. Eric [indiscernible] have the an If Langan or RSPV me you at

of Langan, Eric Now I CEO to and am RCI pleased Hospitality. President introduce

Eric Langan

revenues. market nightclub I’m an for total we X, reported revenues on third the please and numbers. Gary. based segment We you, us CFO, quarter our our reported outstanding Chhay. Bradley today, with turn Everyone Thank After performance. Bombshell We record thank here had closed, Page you to joining

We a reported per record share and also strong flow, balance. earnings cash high free cash

members we and always, As team support. their for dedicated investors steadfast customers, thank our loyal

continue Currently We open. of future. the to our of are clubs working all these our in kind Bombshells are and trends XX

We we are in agreement major and initiatives. a acquire XX on growth on related all fronts work our six week, announced also real Last continuing states six to estate properties. the to clubs

these are We Bradley integrate and process the about and will later. to new talk I now closing preparing in of growth more units.

Now here's review Bradley to the financials.

Bradley Chhay

is restrictions. the highest up operating million in $X X. even margin to million Nightclub XXXX that with April quarter roughly we $XX quarter after whole afternoon ago Consolidated pre-pandemic ago quarter the The income the $XX.X reopen third began taxes. XXXX. page paid limited to turn in number May in clubs that revenues, locations and open were $X.XX good also and had June And the Eric. when year Net increases income to compared June of the [$XX] reported tuned fact of year the of two cash and XX. closed year-over-year. XX% We XX total from EPS to in quarter. was Thanks, Bang! who in up quarter million a call. from with That revenues we and company's reflect flow third loss free operating for a from operating to years quarter had were those the the of cash the we XX% a tremendously activities in margin Please record current was all the fiscal into segment $XX.X and was second compared million was from and we and June history million the year $X.XX cash significantly but XX%. ago all quarter, at operating equivalents

this revenues $XX $XX.X expanded quarter million. million. third XX.X% Operating to operating year result, to income a margin rose increased and to As

elimination XX and opened Looking results increased significantly we to rose XX%. XX%, base by versus June, turn up to the the clubs, Similar page northern return income to Please in of Bombshell were this The and year, were the a third increase quarter to primarily the reflected XX We second Bombshell the the additional whole began reopen believe on the in quarter. operating revenue June revenue income loyal of from all restrictions. restrictions this of operating margin margin with higher the confidence. nightclubs, our to Bombshells quarter May clubs segment when segment. the year-over-year. points XXXX locations XX.X have ongoing our whole in closed X; open The current beginning overall operating XX of consumer and margin, in the April that fact all increase our quarters reflects clubs customer general XX.X from second operating quarter northern compared revenues, percentage service at were and the expanded and

result, to income Operating million. As and third year this to increased $X.X rose operating a to million. revenues XX.X% expanded $XX.X quarter margin

the mix, Cost wages, reduced to nightclub this as operations. results expense segment. brand are achieved our a basis in our XX as X. a end a the million page our on balances. did within coming revenues in the our a We primarily attract And three markets, setting pandemic Bombshell cells. operating during percentage except slide net operating included sales and quarter rose increase slightly in higher increased from to things; taxes. to on level higher due income due the and in income guests the non-GAAP and this points as for almost the as before from periods. for SG&A performance expanded XX.X%, XXXX percentage marked before a in more XXXX to third XX operating the the Nightclub XXXX increased as of to provided are items and a recognition these COVID. in of hand a as reflected our lower to segment was and from to tax the consolidated flow. slightly revenues items metrics opposed and And sales EPS of of the both year a XXXX green higher sales third, review accounting we and slide year, for margin cash at such rate income particularly consolidated second similar in They was the salaries change in and much XXXX quarter service change that lower the due Nightclub X showcase $XX.X of began. and significant segment we highlight quarter expenses. on and additional included of consumer page cash line reflected and in XX our of our and X. the This quarter sporting mix consolidated much basis sales segment. we a twice Note taxes current activities income turn presentation. to this on Please by with debt ended total the sales quarter. Interest third by were all elected XXXX that cash income these page Looking and of We Please compared statement lastly, greater third amortization, We primarily In to free note XX.X%. X.X that of or record quarters Bombshell The the turn bigger pre-tax turn revenues to events record December revenues we've and Please confidence. metrics and key depreciation quarter overall towards a from of third for indicators. operations quarter, These due sales revenues segment, third percentage to to Major to improved for proportion typical legal XXXX. much the decreased believe effective Please of

During the to $XX free to quarter sequentially flow cash million. third continued grow

cash percentage sequentially. improved flow sales free a As also of

to of this measure free XX.X% XX.X% and this second downs free property. fiscal was sales declined first the and flow This to ratio the $X.X we're year, of the year, in the quarter XX.X% our quarter XX% use XX Our the We quarter. in for year. pay in sales percentage down $X cash million of last fiscal to third cash in fourth quarter, sold converting sales March how cash. well million to scheduled Debt a reflected dollars related at doing as pay flow

We in lowest are debt two at years. now level almost our

general liability to XX continues at for the years. in two for debt be to current page Please As the range pie chart. turn for last million. our $XX.X current liabilities

it the financing. by applies, settlement. XX.X% assets This This of now Our the than secured the million debt is club amount The XX.X% secured the to respective which and represented X% consists related as secured is by other comptroller is by by listed $X.X by debt secured secured is and seller the real X.X% to estate, total settlement. businesses dollar roughly. less lastly, Texas assets of

in and to that to Please direction. turn our debt one Occupancy $XXX,XXX. right as represented listed unsecured loan trend unsecured X.X% of Our XX SBA continue consists of the page XX.X% by remaining manageability. costs is review to debt

of of sales and current primarily in XX.X% to percentage year higher quarter XXXX. they in quarter the is were the revenue, the This As the quarter in to third compared X.X% a quarter. ago X.X% due third in

weighted average rate. our reduce to continued have interest We

down from to the last this X.XX% fiscal the XXXX years, fiscal in year. Over come third current in third X.XX% it has of the quarter of five quarter

points second the third estate this lower interest of due was is lower rate interest, real weighted Our rate that average rate two primarily paid the down year, in quarter debt. fact than in of to the that the quarter debt higher basis

debt. discussed, As refinancing is our of strategic we've initiatives our one

to bank the of We continue refinance with our rate work interest increase amortization. length to and higher our debt

call let Eric. back to you. me turn Now, the Thank over

Eric Langan

we to investors. If talk will XX continue to Thank page you, to Bradley. everyone turn new

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

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

by clubs at and value. One applying specifically companies three He the generate buying solid that book right cash acquire these and right more generating strategic whether is strategy to and different three estate similar financing, times to the otherwise. actions William with good to XXXX strategies market since studied fiscal to seller allocating cash acquisitions, adjusted that buy line mergers share Outsiders to cash focused We've in to real on in Our clubs of EBITDA effectively do outlined Thorndike. like the course, been markets. five cash. those We there's The using at subject is rationale the other per

to awareness successful grow Bombshells to franchises. organically concept is market Another develop sell to use cash expanding and critical strategy specifically mass, our

Our to least cash XX%. returns of M&A generate on goal in cash annual and to growth is at organic XX%

share per flow buying our more Third back is yield the is on cash when action than shares XX%. free

we Maine. first position the We're open combined intellectual XX our quarter Pre-pandemic established provide agreements our last and clubs the generators. paying Louisville, had market of in are a provide and times week, geographic December, footprint. EBITDA. cash with clubs estate of I During a our time we proven $XX sizable is cash, per EBITDA. adjusted as and our two using that able looking creative is did for. exactly To properties. they good six the valued we $XX.X announced you strategy collective million million locations Portland, a believe be of valuation in dates $XX states. approximately to and definitive paying industry million quality million. collective want share were clubs of additional well There and to Louis which XX,XXX $XX to us. our in licenses are five turn type revenue the million clubs, and expand the on. practices. will related X.XX% We management $XX in expand this in six Denver and tested million million and Locations year our turn tell about. for team also to for of real real to major the clubs results seller is in of And four two retired integrate with news property at past We're acquisition clubs in commercial All to be at believe successes, developments XXXX slide in the are to acquisition adjusted a five Based one. new Please Multiple the borrowed. enhance Payment the XXXX the for $XX form are shares we the cost $XX into position markets, slide purchased a million entry to further will ended will in they be be XX. to with on best Please million estate we our and club's of Indianapolis, value the and in working St. likely Raleigh bank $XX $X.X in release X% we anticipated. our acquire loan that XX. M&A said The $XX million stock $XX.X portion they largest season the in transaction anticipated be They restricted are financing a clubs. the us closing

we admirers. looking The from a content It's to comparable next to formally creators plan Me, first platform and Admire to enables launch their social to And is in launch fiscal only that year. are we post the payment new media receive fans.

properties sale number a have and development. under we is second of The for

for area. working contract Dallas price million. approximately We're estate real sales other on sale the total Please is XX. under turn developments. to properties and three have The Worth in land property also Austin page Fort $X We

to our continuing initiatives. are execute on growth We

continue on We progress refinance make our real to estate debt. our to efforts

surveys the properties XX We final that waiting will title loan. are and on just few on collateral letters commitments a this zoning and on be three

the to in Bombshells We able location is Bombshells in find to Construction San this we at relatively XX potential soon. in hopeful be franchise continuing other close Texas plan first our loan will next underway We're Antonio. Arlington, are locations. first

in currently Austin markets. in several are Dallas on We and properties other negotiations

XX Our over goal next build to locations XX is new the months.

several and groups. We to with are negotiation franchises additional want sign in also

to to other to forward Lastly, acquisitions interested the club of soon. we And owners single opportunities us. we telling with you exploring in about look some talk continue club

our continue as of hospitality we one And what best restaurants and Our larger company continue business. bartenders I our best the our especially from were or companies trading let's believe to and sticking wait into the especially the grow and company, through a that, management us investors believe our to are employees our in our to all lines those all staff you been come. team. and for open reform, truly all accounting, publicly yet clubs that have And much us that with is professionally questions. especially our incredible kitchen the staff, pains ran the the with growing great of make in entertainers, with Operator?

Operator

your gentlemen, and it from Okay, is now Wyden Thank coming Capital. open questions. first from for Instructions] is question the Absolutely. ADW Adam you. floor Ladies [Operator looks like

Adam Wyden

Hey, guys, getting the And on great quarter. congratulations on congratulations [indiscernible].

remember may fascinated the ago took I private years think Troy I when actually have foray mentioned adult to remember you unit out of entertainment of economics. I first kind by the recession. I into I his was industry. always my coming many And company, it the

when wonderful and business guys were obviously great you and a glad value. I'm it's together. managed a two wonderful professionally He's built economic to able get finally do built to business, you a So together find drive can And way organizations it's, business.

And he that saw we obviously very And is issued obviously exciting. shares accretive. transaction super that's the So at $XX.

X.X X We times performance. at EBITDA have like it to

guess these can I that I a buy up more Bombshells. little aren't think sense, to is, that obviously make are and and open going you more not bigger prevailing my So numbers a clubs that aren't sustainable sentiment there issue of bit there's to that but

or half you're to And going somehow EBITDA that get like million cut this something. $XXX it now call in doing is of

comes valuation equity Now, you down club right, in these whether you how don't to getting arsenal. have kind continue your I obviously about as we're about capital cost multi this know, a can want obviously, what how going your an but of to acquisitions, you're speak and unchartered you think, of kind mean, some territory. that of to We because bit, think to you think stuff do little to you

all we you be through So, about I growing We've company? talk call, pains, you comment made can business normal a cost the e confident that company, you how the you you your have I it grow going company. businesses systems want public a what why mean, the will little largely smells see look public public gone bit ability by said, this clearly the company fact in doesn't And you to augmented confidence looks haven't. you And going and like this put conference and real the capital of and on that place a it I company today? gives cost you of a think with trade mean, to be is capital. the to just if are

of kind just think you that about mean from I curious So here. how

Eric Langan

VCG paid remember, XX are have Well, I the we we're have top they very locations to but mean, getting dollar left I for they large XX, think ones locations used We a acquisition. did on locations some locations. do, these rid have debt service needed that off their things were the get focus they've left, debt to to the top sold the do they or to because and underperforming of top

we're top in, come their top we to So cash was which some important us. generating, buying locations, of

recent So paying paying four were some to been times or three we use a and on but deals, force, our is transaction, we've size the of had times able five equity. it this typically, instead

closer I We're at if I think think our them creating to little a on probably we're five, basis. premium. that trailing you we're evaluation, our six getting paying look

will at do to get the we clubs their take our things now think we'll of four and four is over when I we upside of EBITDA much the times going a that picked to paid at year Oh, the closer a look we only end up. from for back we'll this times also go, of some the locations. And able synergies with to day, look improve from be I So those and we think pre-results some to

on So it. that's thoughts my

think trading. crazy real becoming are out we're As days how of far public a the as company, I we of

the I gotten and through audit pains shorts, we've through growing think gotten I we've issues. the think

Now office this then We're to us with and Friedman moving ready grow. corporate XXXX forward shape best been it's XXXX staff our is with year, in. from for the in and

things Our We ERP any clubs the barely calling even office. our the the system we was be won't on even realize attracted all. I team there notice is at now. Everybody's way that goes, the right enough, stress more as now in we'll up management of best won't mean, we far start in us we that we've business. And as that with won't even some that the there's system set

Unidentified Analyst

a question you ask me Let now.

Sorry to able anywhere are how real X%. to effectively you're property depending about you I to you, on think in mean, the buy interrupt estate your if financing lenders you. But financing from it, X%

realistically, real have these businesses Now, operating assets adult estate on entertainment.

to So to extent lender is money lending the to the lending entertainment. basically from rent an you're effectively to able real collect saying we're estate adult that you're that's yourself, you buy

that all they're do the is like I be, the of right? with to underwrite to enough investors trade When of the doing real trade is estate, to to quality businesses of by the going going if debt the effectively the Why So operating debt to you cash capital? mean, stretch imagination they're should similar able this at we is the five? a is okay, investors not are equity these of five, the debt buying flows. if why think is smart say, cost at

Eric Langan

like our than continuing to having July are telling you, is we June. people hard see time said, think a our fluke, I was or better they but improvements. you I'm this We're it's think a think understanding,

Our in great had July northern clubs deals.

all almost hit Chicago bit. little a is time off high. Minneapolis still market York The an New strengthening.

about we -- I almost staff. south retention, XX% And There's the points from other our we're our of an staff. think We've no percentage have almost X-X slowdown think is, of I off from So decline, I normal. don't retained think there's no management we because of Like mean, the XX% same the have didn't total If from that's we that's is nothing. that XXXX. typical why operators have have employees, just spending. In slowdown people I summer COVID. staff they just retain up industry, in COVID reason which the those

Unidentified Analyst

ask let me So question.

But on so about business? in and have systems guess kind the million because, like he calendar in you're getting I of build to the at you kind running you're EBITDA So XXXX, multi out, you a XX done, you but I into the I I And flow all the a I or I probably you economics, rest, all XXX basically see is this but a business to your pro like, flow, corporation that's of of mean, your rating Lowry been you'll you XXX path me, kind everything and mean, starting I'm is like get thing get mean, XXX open. blocks, gets let's didn't at since cash it's say is I've capital. you obviously plus goal to build get EBITDA you a put dollar it you feel if broken before looking it's you're of XXX not getting he company even really mean, I at public through okay, incremental I the about of your think then synergies it you I to record. And the the to mean, if XXX did public, it basically feel the you're a I if money intense cash a the of free costs really run this mean, mean, place plans it's numbers COVID. I quarter, at Lowery, saying Lowry a do run like do if put machine. refinance, XX kind mean, another before XX.X your I building I corporation, save

Eric Langan

mean, I do we this shows Yes, acquisition that can I think that.

compounded. clip XX% to XX% a at grow to is goal Our

Unidentified Analyst

deal. That's organic without

Eric Langan

free next need year, not, $X.XX need cash next you're when XXX do you're million when To XX%, growth million share free the flow doing you per we flow that's growth. doing XXX No cash want year. but $X

Unidentified Analyst

growing XX%, been Okay, guys but you to you -- guys, I XX% have look, without mean,

Eric Langan

Over XX%.

Unidentified Analyst

basically I deal mean, long catering things, guys know bought without time. have is you I some you've Lowry been acquisition. first Look big you done in a the effectively the

this conservative, you mean, But to baseline. acquisitions, So presumably and I Bombshells with your XX% is going to – right? that's could XX% prove I mean,

Eric Langan

people there. and to any scared. live results not our seeing growth, or shouldn't know to dine our coming I our and and I keep talk you people and I in oh, XX% there's in are but are are We're tell everybody's even the off. the I to mean, that's That's for with vaccinated lives. do seeing any they're that What But happy. say, XX%, stick deliver, that's plan, here worried see over to everyday. we're at and not in my my every the XX% seeing do, don't foreseeable normal. worried we shouldn't minimum or not not see Double out head scares minimum, the about clubs COVID day just what pushing wants ready I to check, to or But least future. getting They're I be, restaurants. to goal. they part but under our tried don't I'll that if clubs. keep be if things from that's I everybody about XX they promise it Yes, I really our I snags we're in the we're vaccinated People should XX and not are back getting getting most new That's what cut or

foreseeable we're grow. to that unless That's continue major have, based But future something think changes. I the to going for I and the unforeseen. all build to continue continue we'll data that to foreseeable on see

Unidentified Analyst

Great.

Eric Langan

look, board, nightclubs, strategy think work amount definition, in were and of this And something Well, is own of the company plus as marketing to that growth taken I at to But of and I that traditional of in enormous entertainers a your we've position another obviously only we can Admire franchising adult out combination nightclub guys or what by comes venue with haven't can this this synergies talked conflagration you I seen now we mean, you strategy serves obviously, your in in if XX% which we Admire much and that company, organic we're mention fans. the it would all is for I you're mean, you if between they obviously acquisition is obviously, there's on the minus have didn't there's not I, about. if business. Me, the Bombshells for the of the not have have go your also generation and lead kind Me an it person obviously, playing

unlocking value obviously have I value your that So enterprise, you in intangible super and exciting. is think,

am billion, this can So for billion, is billion EBITDA still that a be but belief that the this look I us XXX market $X $X on $XX in cap.

So look to right guys the obviously, day, built build but the was its you not in corporation. Rome a are taking steps

COVID. other have we conference don't on bought stupid hopefully, when So people asking the flow stuff. through doubled And liquidity we call questions about our cash

Bradley Chhay

course We right. there. stay just think on just we're to to the pushing get All and just away keep got going it. I

Unidentified Analyst

to back. in off stupid. someone Thank to you. I'll else I'm jumps going going hop be ask and call something if the

Operator

Scherer Okay, from your next Orchard question is coming Jason Health. from

Your line is live.

Jason Scherer

you are doing? guys, Hey,

Eric Langan

are How you? Good.

Jason Scherer

just blown on that quick things. expect posted say guys board. Didn't took anything A you numbers Absolutely the want away Just the by my Congratulations. high. away. that to couple I'm breath

First of is all restructuring. What to timeframe the you on debt do think going this? be

Eric Langan

we We we all they're And of of have over bunch very I have slow. been June. company been title Unfortunately overwhelmed. seals, working the out on this added it. turn title a on companies state mean

of started they which in we the us to We're needed product them three survey them got be about of of we've first second about up week case by two surveys, we actually I already requests, end to ago. hoping two the Worst third, stuff just The out soon. got back to down I'm finding weeks June, wrapped We've we've should here the we've go. August. if to There five ago. said, was two weeks comes done. close three told had our But It got like September. completed.

quarter, will I'd of so into guess I but of $XXX waiver definitely the we get million September, the second like of this week get billing. because hard before this First be week day, end to

Jason Scherer

Okay.

is guys is, are give employee of question new have the what XXXX? the other contractors, of to an an The acquisition idea that the us that that mix making you can you you club with independent

Eric Langan

have I lot we no of have I that but mean can idea. I run we mean, it, entertainers. a

employees in Some markets. certain are

Some whatnot. some market, states are the not depends and on

given mean, had is. I I'd if So, I probably in XX,XXX period, we say probably entertainers contract the know don't I'd a to what pre-COVID guess today. number plus have I

Bradley Chhay

of He club any is the XX asking employee model. about

Eric Langan

not have I don't I club. gone into know. deep the XX

in independent I'd the are markets contractors. say that that I on they're think no, based all

Jason Scherer

question Okay, XX board? being think are to you to the them that this probably take on here. is to long do chew guys get you would be next process How through going to start this to going clubs,

Eric Langan

I understand that? don't Which

Jason Scherer

club. the Well, XX

Eric Langan

All the transactions or --

Jason Scherer

mean I will you think be? it long how like Yes.

Eric Langan

start could deals. closing We first

mid maybe clubs seven First very, close say early deal up that as as state There's of on. one could is licensing, XX it'll little could days. very be I'd There quick September, a take earlier. to

to looking transaction. on August, it the November we could So be, be close at final this could so

on through transactions close I'm to September XX, to So in sometime all starting all a of November going to to it's be properties. close guess going XX series and running

Jason Scherer

it. got I

be on February, January, all will probably. March, the So they'll books,

Eric Langan

XX, be the they'll sure. but of in on I quarter for quarter, the for in maybe next in our quarter books quarter first the not all think that whole

Jason Scherer

big this can somebody purchase guys think integration, Okay, or other then the you another with in came club handle purchase a if this, along? purchases, do such like you and

Eric Langan

they and have and don't $XX mean, our happen. million. to going in systems, not say cost systems EBITDA million management XX rebuilding management our picking in to our strong with teams their we goal that making and buy that's That's do to come teach in doing put management the out. management We're from are change We go increase tool to because to want they're go and every I XX operating we're because and put great systems, POS can't location, million if don't cost in out flow. best already this, some not cash control businesses lower the at their bring practices, I we and managers. revenue. to already in you They buy think strong of our want We take up all in Sure. in

current need teams. strong we why management So That's buy we management teams.

Jason Scherer

long little in have Can guys like a works? concept had me long bit how it's the you Admire or out the How about Me? you tell been this

Eric Langan

have we for months wanting with invest we people and near and we stuff come and with and at the a able of wanted which and concept contacting talk more but invest one we her meet in or what had to the the the do process on very in pretty had internet in internet her us real of was their Well, a several them. similar basically groups at to talked looked in to that the clubs We kind to about meet on her or is basically. life clubs more see her the girl learn them, be

I lot that and like lot just for we'll beta a real we to live and club venture own hopefully the the like well real are much and next us, very are at inexpensive so And here their sometime other to a the for it. about launch And the interrogation the the well. the place of mortar that's demand wanted is A XX% customer. nice that circuit followings the girls XXXX. other going other those we're hitting and done. clubs think girls the at and and I goes. inexpensive, I and all program with. around there's of canned do of We're internet will And launching gives material It's the to the are stars I can hopefully And and going think internet the of very thing it's look business cross between club I and and a and kind business was as big businesses it that I the quarter. fantasy takes to brick build in of an see be it world relatively early meet continue stars big and full setup was the It's a build realer in to level than much coming how them websites think you so have call said some something safe it these just people world it's a

is the these other clubs One of to own is of website you something our add stars draw stars them weeks that featuring XX around the for on which things we influencers the big to our big in. go of big the we'll with top do more for people can't girls the we're value and give XX, to going country can that where can some to a we circuit we can,

it dollars. And saying a a we'll think started reach a getting of programming, make beta in lot are I in And and ideas. integrate this to I is And making now have changes, us to think probably just that changes Currently, it million I the process as credit these go website just sense, of start So to out go can we some the about milestones, card here sense. and $XX,XXX but live about talking from we we're there happens. what once of it we total we've think put see those at looking investment like made and the testing, of live our wanted under invested said, a lot this our synergies the lot I to rest makes the soon. processing

Jason Scherer

Got everything's Thank you very much. fantastic.

Eric Langan

you. Thank Okay.

Operator

your Okay, McCammon Darren question Kingdom. from the next coming from Cash is Flow live. is Darren line

Darren McCammon

Hi, guys. It's Darren.

Eric Langan

Darren. Hi

Darren McCammon

to going say was I --

Eric Langan

you are doing buddy? How

Darren McCammon

COVID forward Delta What hand? any going Hey, you are on Good. with given hand? on cash comfortable for cash

Eric Langan

though, look like every invest And have too to little XX now I used think something to have debt XX I'll mean million - we're we're busy period, high, and that likely, still. mean, day to XX, keeping a it hand. I go XX to. or back to maybe, are at than we look. sitting access got over trying on At I I end when I'm the it cash so gets XX. of We've I financing million the XX. it. More

low. going it we're on the actually, EBITDA Our of equity new component this I this ratio, transaction. debts with EBITDA debt even drop think acquisition, to at two because with Even a year to add our is

overly over - not I'm Like too concerned. million probably said XX I million XX much. So is

We're now. million So right in XX cash. generating a XX a over week million million,

Darren McCammon

question guy. sorry, out. I'm Are previous my I'm same and there? the going in the is system as reiterate you going to still

Eric Langan

hear didn't what I sorry. saying. were I'm here. you I'm Yes.

last guy. from Something question about the the

Darren McCammon

question. just I'm of to same Yes. going kind reiterate the

Given do how that pretty big is kind a purchase. of for big really buying before long this integration purchase need can you for you you another consider wondering I'm

Eric Langan

big purchase Considering another today.

working acquisition this November. started remember, started acquisition, to got on in we You this we

months are where documents. definitive to eight we today to So it's taken get get

acquisition, due you I if takes and documents and faster, a process goes So four whatnot. months five take start a larger through go or if lot with another today it to going to is of acquisition There time. on it's diligence only the even it definitive get have to

the like time. bit second time months, documents, was Maybe one have this to ours integrated. be So in by This going is it even a integrated. it'll won't integrate was first We thing's quarter. going acquisition the extra we'll the six we in little I'm six a to work whole like quarter this this of down to definitive months, fully it the is

just systems. our differences teams a the and play, plug. back transferable plug In play training. use a terms, is current Our training are of just and plug management It's systems it's now. to matter basically pilot Everything

to It's It's for handling, basically to lowers the our inventory systems And still stuff. all and going We for costs. costs we're upgrade power then and better to systems teach and just software for buying control are tracking better it. controls, going costs. are their think their our use better I them our how national cash same

the add. value everything So that's goes, we

and when buy period things, we think it's I month to three tops. we so them And six integrate these a

Darren McCammon

I really quarter, I purchase too say like the really color. to fantastic like That's additional purchase. the for thanks great I Okay, just and all the have. questions

Eric Langan

I'm mean, a locations. unbelievable market I market is Yes Denver The excited growth right the in fantastic new now. about very Denver

out a and the markets some great we'll as of of only Raleigh, be I And the location some Carolina Maine, the just do they're the think great able market. that North things state there in to capital those, other club city go only well. in

excited market about we'll well do I going We're management a as team Indianapolis Louisville us. for is the there. good think And to there. be well.

we it together, for all this, enough a hard stuff. the doing So out he it whether it's mean, And we've doing path lays wants just ago, past wouldn't because They think for because a when I to be acquisition know can seller stock other and I to the had them owners good going I time in the equity. big sure. we get with equity deals wanted the do for this. you us put it's This transfers stock couldn't taxes avoid

as benefit upside So our seller well for RCI the tax shareholders. it's creating an a about for and as

Darren McCammon

It makes sense to me.

it also up I purchases. opens other think big

So I think deal, the great congratulations.

Eric Langan

Thank you.

Operator

live. question next Pendy Sidoti. is Okay, from Greg from your the coming Greg is line

Greg Pendy

thanks guys, my Hey, taking for question.

my segment framing are just kind assumption you can thinking to more level numbers as wanting before the kind but, this think normalize, se. I margins, And how, about at they owning route XX% I franchisees sustainable. Bombshells versus are you're probably and real past end the kind things to more they're That's I is they're any even over it and comfort put a the about this probably talking of then how concept, I in when just are shift Just the of ago, get that and the year mean, lease looking this to assuming to of using time, the going XX% place go the saying of given to estate. you fact given all per also that out right more now? learned, but it over was over that, and and you've kind on I'm over mean, what of well concept the you've learned you higher

Eric Langan

looking We at both. were

pre-operating and and knew the costs Bombshells that basing were we just As reopening in we on of $X that everything what costs, numbers units. I far the million were are as all because government,

are closer units, Our units higher. to million or new $X

those rethink higher So to units. margins we the on have

locations. the highly end of at mean, So million unit. a $X $X $X on looked I do expand, as properties whether unit comfortable would we're to got $X.X money that or I've amount $X of We've now. depends units It lot the million at a very units $X if depend right. million to a we million it find me we successful million have day we're and more right to know million the do million on I across mix X.X million it's the to guess couple X so of opening we're real cost million. key that's, units, the picking going same $X.X those right of of units, to I'm we the in build just we

So now. XXX,XXX that building will focused needs That's sales. right focus of stores our week on the traffic a demographics do in very these the we're and

on it's So gone if is what's it from Bombshells some sustainable or now changed. over That's I we mean, changes don't kept months still I I the numbers. long they why not. mix have the we're this. all XX the pandemic remember margins can can restrictions now. the and do I XX% with Why? mean, during want see unbelievable XX I How of haul sustainable maybe do we're that's know, May Is there for XX% the work? on, doing long don't in XX% for we reason going to this opened XX%. to sales numbers, why this or do saying number you you going

a Bombshells town There's going then we're brand places. And for one other go, now. market said, at to When brand going a big market. kind was I focus the of idea. we on the own an in in people mean, market. is unbelievable take is the concept drop we anywhere know point, that that built that And especially going to market, Look, to the Houston that we're in see don't numbers that I reason this name I in think off the I So recognition.

they to build at go And they don't store. talk The concept the do our and spend can sure. I build it's don't think and money range? And and has, people problem the $X people don't they to be building many Bombshell have with a costs Bombshells could going out on restaurants about, that. we've we that's because do well what nature done how them. million, competitive have a if out it that is way what price when build the anybody Anybody it to things

motor So we of spend cash, kind we're have motive don't adult to clubs. going people going amount of cost money money, to I they're throw I have this have have sort think think of an money, concept, to that the the of a of event, we still vendor we while and their on concept.

bombshells. And of successful what niche our been in we've so we I with do think very

Florida. the expanded what And we X%, then And do at XX%. like got out. were Even with to getting the within XXs becoming know first future when end just month XX with And if I some prices stick still if Texas to we'll near crazy. into work. the rent XX%, probably we're to an back And right when hard sorry, well. At love on reality we works, XX% all more that in the I we those back can expand just $X as can't that's the prices a a of I'm really of and Worth As kind I'm them And working $XX they went traps model sales. know. And to that. right of it we It's in markets foot NOIs and it's point and in go the now. their just a we're the And high the I I can't the okay, let's to No, really a demographics just model, literally kidding starts up close And it's we that to that it's we able up go we franchisees we're I getting now. down too. They and to I two building. time. come Maybe day you. talking And moved and week here, from running prices XX. We'll Arizona Dallas can't from we're pay to Florida, were in lease in like, not seems revenues. from sign a were think Fort It need. think And negotiations. looking the going And within $XXX,XXX we we're And everybody went market, their XX, know as well. demographics. to looking teach there. were we're XX in And will market, real went make it we Austin in period, at think New know York down We're franchisees, we week that looking like,

Greg Pendy

a Thanks helpful. lot. very that's Well, Right.

Operator

The live? from private is Peter, next coming he investor, your is is a question Peter, line

Unidentified Analyst

old Well, pull me that you've made I'm disappointed out very XX year spreadsheets.

Eric Langan

you do I long been in yes, you since it. guys know, were didn't they I and to, were instrumental pretty you big their it's building were, company. time know, a in public make I But public.

So unfortunately, But not it now. same XXXX. when to that the getting we is, cherry the was company it's I in it tried it reality buy think we're to pick

Unidentified Analyst

really wanted just example of what and agree good said five The I make seeing would you I'm similar these thing. I when strong completely be at a and because clubs let is there clubs saying kinds of to question bunch with very And over market well. these I why tell not you look and some all a you when it's industry. I is dealer They Denver other my and markets. be have leverage be clubs, automobile good. it's to I very model what comment, know a a good of it should wanted you similar the me looking industries, four, I'm whole have when With going

few the one. industry public have You'll in a lot your have in you'll six independence, you have automobile industry, of small, a five or companies

potentially that attractive heirs. have to pass discussions of people will for now if You of less pass taxes on assets new these to kinds they their make it coming

you the make And am made of of basis I I deal people in of that Troy, calling I dealer am a the of a one kind with has deals. on lot be lots So are same thinking there who things industry industry, I'm saying, is wrong? you the to automobile want seeing in to daily your

Eric Langan

weeks, they're them the to if calls We're we so every we're two operate brokers, down I In of to us making am call. type with get we're We're some lots probably lining easy one this Yes. up, road, obviously I but in for pick people talking speak of taking getting to them close the a day, getting talking it don't every we're, in, cherry someone I'm me we're give want at weeks three deal. of We're existing I'm calling some I'm it's emails, calling the, stuff, our know day. them offs looking to clubs. texts, with

four that's that a for you big a with appealing Louis, to to market, of now deal like we us the clubs buy basically, to or St. presence appealing makes of can if three type did and us. like, easier find Denver, So we get that's a the can lot we home where very market own things of us

things rogue call doing in operators, crazy what As to far We're we in in most perfect stuff. problem deal with cause the don't be or officials try local I input the with as we but them, get have a that bad market, and not of so. to industry to every light

Unidentified Analyst

combination was me hope back started, is have leaving Adam the case. that and not thinking, are club segment, a people Bombshells, but in equity It looks faster on that a debt going reasonable could of at you my going using in question I'm I to But a asking to and I'm significantly the now where get to gentleman's than stupid I Adam, point? opportunity grow to

Eric Langan

we the arbitrage. and multiple, stock the start get getting can We

a acquisitions that You remember in today. stock And XX like XXXX. $XXX in $XX stock because the XXXX? had in that's be I in XXXX would equipment stock did we Right. $XX

out I we'll that, capital of cost much will cheap point, like equity. our X%, or or yes, enough. X%, that, absolutely The quicker. At of was becomes we was but something abilities capital using if stock move Apple our like there So the cost that think

borderline for So equity sense it deal, it lot was for makes This me. there's us. was of when a times

the for equity. and I a loan, million five $XX. shares at X big XXX,XXX Here's comes look at we deal, up, we year stock the year said, ahead, back the interest years shares everybody do and okay, stock, we're stays as the well and out back down the XXX,XXX next stock everybody a the this shares comes look We five back, stock at looked I buy whatever. free at at runs that to way

it markets So next equity out. know three this here. there was I we'll thinks right. the there's us integrated start I no deals to what, mean, lot a don't I downside in months, going and that as the over upside, what we find the of All numbers tell think issuing coming of out.

think we buy us, then we'll well, for February the if can a we'll shares it home it's run for just sure. know decide the And interest but then or us market for I And and debt. by rate rewarding it. either isn't was we'll back okay,

Greg Pendy

you. is Well, to run Thanks. Thank a home congratulations. my guess be going and

Eric Langan

have certainly mean, ability hope have the I mean, that capital the build user arbitrage. equity. so. I equity the to would And Yes, we and love we

term is He excited. we'll sweeten to think But in things to really long to $XX equity be long him, of deals, higher. it up we wealth do. with he mean, components financing we'll sweet us were cash shareholder for for separate I the deals. sellers, cash and forward, us. his and a create could sellers. much us the He a thinks to still wants some the is care going when be to is than desk we'll of What wants think, the combined Going know And I give two some the to component worth have stock still got to seller equity take trade and very use term more that lot little he's I cash enough going monthly actually I if Troy flow bit the have companies with him a and of that or it's Steve, the like whole the grow only are for plan. I and deal he's trade and talk

guys, basically So, do hopefully it. he you boy becomes for going everybody look, this is saying, poster how the forward

Unidentified Analyst

it you. Thank will. think I

Operator

is from Weiss Okay, Doug your Douglas, live. the is ESW question next from coming line Investment,

Doug Weiss

Hey, nice quarter.

a see couple questions. Let's

club So fit years groups I'm are How deals. -- these on thinking these theoretically next kind theoretically, could you that of over of be the larger large there about would many five your

Eric Langan

second, sneeze. levels, a there's you put on there's around had it's say I But I to to multiple mean But when timeframe, a quickly Well, will, hard had. operators, want sell. merge one is how and come to with whatever, lots to and There deals us. team, be grow multiple, to or of we'd someone join out we'd company our there the definitely love have or buy, love guys

we're generating. seat driver's think of continues what be the and lot a able lot know we're evolution, do. the respond I start what value back we're going to we're we're of that next of know and And cash in the we to for that think to doing, favorably, flow it's equity we're if the getting for the to to a over us, going it, now I an going three going years, to in the we're we're see

you're going people think I us. That's my to opinion. more join see honest

Doug Weiss

been are think you've how I markets and and? from that many for And sort mean Yes. you've legal a of I there careful, which states geographically about entered. really you work legally

Eric Langan

figure think that we know until out with all anything. and that. how to We're we on there California then I little We not to us, me. intense more used with of it say months regulatory do them. takes once a I Well, to who and at know out a know the them it to least state willing states, scary takes for there for work went in would those is mean, stay If there. that time was could state us. and operators operate the out are

that friendly done, takes environments, it more time, we're it business in But the in done. longer things I much the We're we operate in. are York, pushing New where and keep markets but get and business mean, just We at business get same we majority doing doing Illinois. forward to

market, It's not hate not my any losses fun buy don't the for hate size. fun. grow run afraid as we It's especially continue just to court. I'd I I'm me, So lawsuits. either. to I of get not in and want we But being rather I businesses.

what in do, have, to still our are living the we looking competes also friendly do exact concerts, grandfathered And very And, much we're multiple so and all They complimentary, can locations. we have money where they're is don't where sporting going our we they have competition. only rock love while for we in competitive. that with competition problem but industry entertainment, some events, other spend their people facets to locked are some business choose money. of spend, environments, so of We limited course, industry,

So competitive we as issues well. have those

Doug Weiss

remind just what to are are me currently reopen? going that whether you Can and clubs the are those closed two

Eric Langan

believe waiting San is Sure. Antonio, the we Texas, San we're in actual settlement have with I papers. for Antonio, One

mess. we're a with have and believe we've COVID forth. we've won, was had big the been the We've where said to battles they in we of to lawsuit want didn't we open. illegally be end and them. I closed club we've gone day, back that We the They lost We a closed At during court our right be open.

that by it's casinos. process four Charles from in hurricane one weeks location and new that the and So a the a the Lake right got as basically think October And be Lake the We're of And is could I six as mean as a been by in well. city. other we've for us South that to under format building done Louisiana, probably but name. open I'm is the structured the that early hit in that club hurricane one took is, deal win gets hoping building. area We've the actually that Charles I new rebuilding out. reopen

So.

Doug Weiss

of million those kind dollar? Are

Eric Langan

XXX,XXX about is profit in Antonio see, Let's year. a probably

head probably - I know XXX,XXX far, in but So same don’t the at my top of that XXX,XXX, range.

numbers them $ of million easy two quarter the So, for together two, X,XXX,XXX, purposes.

Douglas Weiss

the you've the that? the were mid-XXs. margin And operating highest Is Okay. on had that Fuqua in ever club

Eric Langan

higher a Second on in highest, Bradley's there Page margins I on chart, Bradley It's were think was can. believe, XX, or quarter XX. I

Douglas Weiss

XX. December I got it, Yes,

Eric Langan

Yes.

Douglas Weiss

that or? Is sustainable

Eric Langan

overnight. do know. I you like dropping don’t guys, I'm July. not, mean, it I don’t things I see in off we're down

a think one But I run up decline, our it'll be the we all to wherever. pattern, million size gradual with year extra not then and And effects doesn’t now our it in three change typically overall quarter a we there it a way go brings getting that the large bowl that in to. beat of X%. it and enough and The a lot $XX drops, to with had Was and used go again, one do trace back back We're the at a XXXX, numbers back the big it, think to the events. club the of solid we of quarters effect is single eight to. we sporting or one has with it six lot industry of don’t now you whole used then like can right. seasonality the week club, events but just million, but four soup like with next? X% if quarters do those have sporting for then our company numbers If suitable $X cities an they that

we're moving have keep forward going it. we've think to I to while to monitor just So, just

slip much at we're XX% up clubs seeing summer the overall northern in seeing not we're the a now some XX%. slowdown right are X% clubs it. the but of to typical South, As In XX% of X%

some is where we're changes, I the we're something it coming changes it's losing So, right basically there. as a gain, Unless zero down slowing we're it, economy here don’t see now. have gaining it's peoples -- overall or that

think out gained market we I we've coming of prepared. COVID because were share

up, Our and staff management job. are management an did Dean, Ed they teams unbelievable

want bills. to manager work keep work. managers, a to making I reopening. getting back in teams, Wasn’t of them to We with start local their we great focus pay to our general Because managers staff back never with everybody work. want money, we're regional we did job just getting and people as when their the hard general Our their could. as

with back care to figure and taking our get to Let's then out how make work money, we'll right? everybody staff of

Douglas Weiss

Yes.

Eric Langan

to our occupancies thing. can back thing, We we what We'll We we make have. how we'll much to just guys. get right everybody's the do open, all locked the have. with the tired get. do want business of XX% got say do of business business making all occupancies, I figure just our by double staff these knows, thing money we back we that what and to clubs work work. want talk, it's Who we kind to to Get right money when in out, call right our our we XX% do we How and we make the guys

Douglas Weiss

Yes.

Eric Langan

all because these We have on a of stand had about on hate fun to to and like not not get places making we're from been We want them and time. where -- Right. we all We've line. the we money building in, on from. to standing more, want them our the we've are line. standing people everywhere come It's get But get them line. And we to in a oh lines. good sudden we excited door we've people up had waiting all go people lined want in it,

those staff just So, think turning our that into revenues. and done meeting we're I a needs job has of fantastic

done people, needed to the the all to do, there I My work. our do back staff customers coming back. basically in say quarter register ask and can them, me and was this I'll are put out you if seen coming it's well dollars do customers say inside put you keep the how keep the did cash did all my be went I mean what how to it. people you happy, people You've

continue and I entertainment money value them. create customers to they continue and customers' spend we're long at think businesses. happy value, to our They're fill needs our as meet to well going as continuing and we our for to keep come

Douglas Weiss

Yes.

Eric Langan

staff them things slow to seminars. quits know And we're will happy where everybody's down having week, So, staff members talk We're New our also do we're doing. XXX don’t from now. I I day, their doing don’t And about every we Orleans ecstatic convention about in I country right mean next everybody's a the around our why pretty job. bringing to I

I've of have that days everybody know We excited then travelling doing. everybody's seminars time. long I going to we're the been it, around look and and and about to it's coming country been New again talking so seeing I forward And guys and Orleans basically and two club every training to be to a

in May with opening in this convention year clubs and to our EXPO we stuff we We a opening two-day August we was do doing up. August and couldn’t back every have so started too to seminar, in take We our normally by really wait busy the were so. Miami Vegas just own were new staffs,

Douglas Weiss

well back you Uh-huh. to soon. Well congrats great, again and

Eric Langan

Yes, thank you. Alright.

Operator

Steven, Steven [Operator your live. from The is Slater. from next Martin question Instructions] coming line's

Steven Martin

Hi.

Eric Langan

Hi, Steve.

Steven Martin

got I on late. little a

just already So, tell you've answered, I'm questions me. if asking

future. that What your corporate Your you're your add and Bombshells overhead, going going in clubs corporate ability near how is to and XX overhead another is affect to leverage? to the

Eric Langan

and internally I house we but we've -- rates the training on us. corporate bit adding for as We've staff working in kind already LOI. already already But acquisition. In need the of the since had costs Part have already we're office are let we really stuff more build my buy so this a for little we've we more far we've staffed work staff think based we and already don’t to we as more to know for we system, yes, now signed known going on integrated, once us basically they’re people them want system kept don’t ERP We our going actually our we to now. word, fully need over became ERP go. build everybody can but stuff, to have and

Steven Martin

you're for and add whole saying a of So, that a you lot not staff? grow can while

Eric Langan

person revenue some at account. a a we point. key may Yes, I may add mean, new need to another We have

are there your management upper as buy upper as far we those anyway XX,XXX basically one all have to you'd already well locations. as add have employees, about management, more regional I we them. add But most continue one as here talking we of but you're staff, think clubs We may

margin increase make added incremental not the so these to cost expense. efficiency, bring acquisition, on savings. the to the that's it's We're we So, going from what new really table as

Steven Martin

anything volume the or with et respect alcohol costs change added Will Okay. the new or costs to cetera? clubs insurance, of food

Eric Langan

can. mean, going large we distributors where cost a savings we on lower coca buying liquor will I to it. we're our doesn’t from Anyway beer use from accounts and national cola somewhere

no Some choice have buy on. markets some those but local savings you to get you passed have markets

to I you what discuss what certain he's do that. in all process us. of marketing, know is director And continue Ed So, that's been that. can is can't in has of been alcohol working all some in to to our markets on we'll our working and part work this working with do they of providers do for services

Steven Martin

Well, Alright. congratulations on quarter. super a

Eric Langan

you. Thank

Operator

next Adam from The question Wyden Okay. is ADW. coming from

--. Your

Adam Wyden

have with. step gains state tax a mean, second I with that that few to that I'd the I prognosis know to for last you trying one vehemently that is I dialogue another people and was the look part agree knew don’t which I night, to I guy I well other Steve in such one the for so, get having actually last states. usually who is agree on disagree with conference definitely the are were sell him I know in have a part I in. cap

guys infrastructure that to But the a) going assured one sell to of definitely b) operate business So, who preps be is of two want people a to the cost there's services clubs. their have don’t is flip in universe think side you. I most to

the it's in guys these like should not a to almost lot the equity be it a) really component private aren’t they're the I so, ESG want they b) platform. is to sell and a it there's less maybe place ordinary to reality they are multiple or gains if on can to they reality conscious earnings capital then income, conscious is should lower. substantially today's be mean, place the be because XX, XX their the gains go to less is going if And cant of because of from capital their

better capital. good name is of like you place your in you negotiation actually the mean, analogy was on right. $XX hell whatever puts or do I a So, because which paid it was right. a spot I with his think I obviously across million one, where million the Steve think I Troy $XX equity, mean, I for disagree was

to It's don’t $XX it, capital six as million love one. shares of your whatever the up for interest $XX you buy get your XXX,XXX said you basically EBITDA sitting reason still if that whatever times easily will a debt if it, So, analogy. you XXX,XXX. like cost think and could or stocks million you I back about and

past business. we what a talked maybe getting think may the that was I'm is don’t in about I have at about I huge think what guy and in who's I Michigan Steve there concerned that we know got

in you're all to there business stock larger I going you're able those, it's are going order some begin and going just in higher that larger more mean multiples than the them larger, not require numbers to convince by I and be need definition Troy acquire to be think business to to with debt capital are and with. to

think these So, just with things except the buy no don’t have for leverage one these you clubs care what relative you, opportunity anyone the I I I what I think alternative. an I smaller else one, really is agree Steve but enormous because no one negotiating says. I to mean right for Because actually buying can

at I mean, XX it are about that back think a all pay guys this went can buy not comment price XXXX. them capital, and and across we little guys still gotten EBITDA. and made time integrate You team mean I concerned only I you the But I you XX are what a really times after We the and like and the am trading looked, not. or

I XXX and maybe are the So, in XXX not you're think EBITDA. math trading but in XXXX, we did that you XXX were times XX the you the about event as stock a multiple the trading

not transaction, shares concerned but a equity assets was to you two those we mean, "well, more relative using killer I markets do raised." like a next somewhat maybe, think really unless was months more. deal the who it I a a company thinking to people said mean, the equity and once credit only times Right, can price. knocked mean of actually lot third start like I the is percentage perception. so I to But bought of getting trying huge as someone find kind kind or be a substantial or the Troy out So a) incremental at told and are and me to are very me at have XX to said capital. either its offices at owns levels get EBITDA company, cost the of worth minus me farfetched plus was move which risk go XX And And we about stock to this that going months the I I understand out someone of the I and you're buying about business it stories would of stock be took of don’t equity it. up. these obviously

comfortable during it's I COVID And things think a with performed that tune you define returns this want demand built might growth I you broadly proper guys capital sense important in low company's what is more risk to that think have a promoted of investors is thought substantially but of kind profile, lower that we higher being it, get did however company. many cost than that clearly lower it have of now can were and now. enterprise,

-- obviously leave I'll you you And so, this. with I

some you've very it's to think over to to got position. next Obviously around cash hyper what I XX do. tuned here, the critical a) based XX you're your months that capital stock obviously

You're paying --. zero back a

Eric Langan

That's easy part, right.

Adam Wyden

What?

Eric Langan

easy back That job. stocks our my part. I said that's the part part. is are of easy Buying

Adam Wyden

we one most know mean call. is it, growth do conference and Fidelity to talking these it's of think asset I that these large it's people your algorithm, the conference the just large RICK fits companies I of to profile and these got got we T the same mean, deliver institutional about yet base of Price like you got your consistently managers it that we on if mean, can the Eric, find calls kind a get results. firms But same of of algorithm are clubby Yes. Rowe these I guys cast right. characters, way, Steve, Adam, and

of part do you're of just the time go think to but my continue liaison what I going to doing So, continue I strategy you mean XX% your kind forward advice of is I to hunting. to

And point that have call got it impressive to your in you've get so, guys we conference see I'd you capital a love arsenal. where cost suit. maybe the on have Bombshells And results, that to follow it. can your in of was was brainchild, believe while knockout next someone reason I success, real kind admire But me, a to that obviously a no

these going to are assets. people point some Me, hopefully at So, have before I'm to XX-years-old. value

again and So, thank time I'll done. be you for the

Eric Langan

Alright, Adam. thanks

Operator

remaining questions Gary turn in now to no We to Fishman queue. for have like I'd back closing [Operator call Instructions] the remarks.

Gary Fishman

you, And Eric and Thank operator. thank Bradley. you

between us you X:XX Rick's tonight can XX Cabaret Broadway. o' clock joined Avenue who've those X New For management at in XXrd at Fifth and York from Street, late, meet West to

Virtual Sidoti Thursday an next a our event or participation you Company at If we'll the is RSVP, virtual August door. The be for you'd Eric calendars XXth, XXXs. ask me on have Conference Investor our at & are doing

is Eastern the you. restaurants. presentation news and one investors. Eric, night. stay issue our at company is PM visit Bradley, please with our or Our healthy. of And safe, behalf and XX:XX a Stay On professional free clubs Registration for release Good of always, We'll subsidiaries: the retail Time. as details. Thank

Operator

conference today's conclude call. does This gentlemen. and ladies you, Thank

a for your wonderful this your phone time. have lines You day. participation. disconnect at Thank you, may And

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