RCI Hospitality (RICK) 15 Dec 222022 Q4 Earnings call transcript

Company Profile

Participants

Mark Moran	CEO, Equity Animal
Eric Langan	President and CEO
Bradley Chhay	CFO
Scott Buck	H.C. Wainwright
Rob McGuire	Granite Research
Anthony Lebiedzinski	Sidoti
Lynne Collier	Water Tower Research
Adam Wyden	ADW Capital

Call transcript

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Mark Moran

Good afternoon to the earnings call that you all have been waiting for. We're going to go ahead and kick this earnings call off very shortly.

So, just stay tuned while we get everyone necessary into the Space and we will begin momentarily.

While we wait, I want to give a little bit of a shout out to Dean there from RCI.

We have Josh Brooks as well.

the always over great an in raccoon official questions. have is that individual also audience there, Gary money We who asked once We're about more this kick join. we've seconds people going few had off a to XX in

and out. if of of While this is could important data the this get many big Space would as Spaces here came can retweet people we economic everyone in is. be we're We that possible to waiting lot the sitting that as one here going got love a so coming going that off most there

We just Wyden have Adam out joined, David there [Indiscernible].

and ahead Fiscal go RCI Earnings Hospitality Greetings, Fourth kick Let's and XXXX welcome to this off. Call. and Quarter Holdings

Investor you You that down, RCI necessary can find the presentation to and the the links. RCI's information and under will you'll Information logo, on page, take company's and Company company investor the all scroll find click website,

in top Animal, our will I'll and be Mark be company. it two Hospitality of me CEO will of slide of presentation. the be well I'm Space. of available me slide the with Equity of this turn of Moran, tweet that to Additionally, the I'm as CEO CFO Bradley to three. pinned as Chhay, RCI Please Eric Langan, turn call here the today. with host with President to our Please

a to session @RicksCEO Call. this the landline available RCI follow. Twitter call Twitter are This is At Space question, time, in Earnings with and mobile recorded. for On a to a need it's on participate all A is $RICK join being conference go listen-only select can also handle a and on join you If question-and-answer traditional mode. the you'll easy personal listen-only listen-only, in this will you participants the webcasting. through already, device. the computer. call making To ask doing aren't Spaces. Twitter, space Space To so to FYXX Twitter titled

hear forward-looking to this those risks Harbor uncertainties. me remind in that you see or to everyone update obligation currently a disclosed slide call four. occur I may from with afterwards. any Actual our result as differ We please disclaim information of anticipated. Safe involve reminds statements materially It you statement. Now, turn developments to may that want results and that

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at door. If an bullish Eric, for RSVP, you have intern me the or ask

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

Eric Langan

helping flow, couldn't continue metrics making This drive our XXXX, double-digit big in great All fiscal right. percentage to fiscal cash a increase six without you. Thank a for got the this turn our goes growth. EBITDA. look basis. have quarter adjusted we for fiscal slides growth We a you, actually This and great today. a for future members strong for -- team A and Thanks out Year-over-year today's page to strong possible. key on free thanks We Mark. of done had on joining news. fourth fiscal to Please XXXX. forward us it XXXX resulted the to is

possible the Dolls The a and acquired XXXX. pending and year Cabaret under acquisitions the now, been our We'll Baby in acquisition, consideration. so we Rick's’ XX company much this Casino benefit exciting developing new two full and benefit business and agenda of Steakhouse growth clubs are have much working a of of on acquisition other Nightclub larger our XXXX, initiatives. see In Heartbreaker fiscal larger We year's be Colorado. fiscal should the also chains addition of for Chicas re-openings Locas --

company-owned start are franchise coming or coming now, I'll locations and to development. have for these As And fiscal the later. should should the be to that This tell in -- we online of Bradley questions course review back answer here's you Bombshells, financials. more six XXXX. over for

Bradley Chhay

everybody. ones. so Eric this focus I'm afternoon of and good a on big were slide, on million up a XX.X%. for $XX.X going the Total lot Thanks to numbers revenues There's quarter, few

million revenues the were quarter, XX.X%. for up year, For million, up $XXX.X $XX.X flow the was cash Free XX.X%.

free $XX.X $XX.X year, million, EBITDA the Adjusted XX.X%. the up quarter, was up XX.X%. cash For was flow for million

to For was $X.XX. XX.X% EPS also the That's it due down effective the quarter for this million, versus tax the was was XX%. because fact we primarily year-over-year, Non-GAAP that the acquisition. outstanding $XX.X XX.X% rate shares X.X% due our year, last weighted X.X% Lowrie to and average up more year year had

nearly basis. while our again. allocation shareholders. was With We strategy performance, up shares page our outstanding end Please we on non-GAAP at reduced fiscal thank a initiated the XX%. of the record year, grown flow of a capital benefit rate XXXX cash XXXX. our the compound implementing the CAGR you $X.XX, of X.X% weighted at has seven. since annual Free to We continued to fiscal XX%, track For EPS strong strategy our we turn long-term our average

Our free XX% conversion cash to revenues from flow since XX% rate XXXX. of increased

-- not was eight our and XX.X% $XX.X toughest million page years income second XXXX. non-GAAP. Nightclub our Operating was million. $XX.X totaled non-GAAP. had XX.X%, turn GAAP million COVID. fourth We more Please affected also in $XX.X quarter survived to fiscal and The review by XXXX our Revenues in margin Operating quarter. was detail. to another COVID challenge quarter, sequential excellent segment This

up up, in its turn XX.X%. for added $X.X Operating the Arlington, own were million in service in sequentially Our franchise increased reflecting sales Antonio part $XX.X The revenues Same-store opening of San sales. year-over-year income were total and It September. down Operating fourth margin agreements. nine. more Same-store since York, Bombshells strong of the quarter. which also $XX was in held start-up The $X.X period X.X% December segment was sales in and were to than opened the totaled new also acquisitions million. Florida added XXXX, added and during XXth. XX.X%. June million. growth New in as royalties sales million expenses Illinois, $XXX,XXX its sales. high-margin Please page $XXX,XXX quarter, Bombshells but improved in through franchising our incurred in Revenues

million. Cost page All goods revenues the in as our quarter, sold XX expenses, reflected operating about to a XX.X%. mix and toXX.X%. This consolidated target as our operations. higher-margin to year declined turn a margin are of comps fourth otherwise those would been of line service operating profit excluding Please statement of percentage about noted. to ago with review which unless increased of have range revenues been is $X.X of XX%, Now, compared have would

salaries and at Our wages were XX.X%. approximately level

reflected Now, reopened number management SG&A of to was million top This newly This $X.X and and team non-cash executives members. limited per granted relates of compensation. acquired around and to previously stock-based locations share $XXX a XX.X%. options announced

XX% from of cash ago for approximately Excluding revenues ended the the of EBITDA. quarter. year revenues those of free little equivalents of acquisitions for over for offset Both year. to of $X.X for million amortization higher assets XX% the for in XX%, Club the reflected a was about cash on and in our XX% higher cash year of assets XX% and would SG&A exceed acquired stock-based a a of XX% segment non-cash was as been was flow revenues Operating year. and ago. XX% locations. course of million debt cash reflecting to metrics by quarter businesses XX.X%, revenues Nightclub Interest compared in site have year. gain X.X%. and of turn partially flow were performance adjusted expense the $XX million, sale intangible Other newly fourth X.X% XX% Depreciation Bombshells Please on of XX. page the impairment lease the than of X.X%, with year compensation, fourth and amortization the was last year. charges quarter, versus Adjusted and We Free the these $XX.X a the and the fiscal sales a was segment function non-GAAP. margin quarter This for target same EBITDA higher the

to XXth. reflected Cheetah's an The please you turn related the our will, cost, debt XX $XX.X loan used from in at seller was acquisition. page to XXXX and million year-end. metrics. Now, $XXX.X approximately primarily debt if June increase of increase review July Net of financing million That's

X.XX% interest compares fourth a average was weighted quarter the rate five year This years Our X.XX%. to ago, and X.XX% for ago.

our cash $X annual the in range, is million which very with to amortization Our $XX manageable continues million flow.

rate off pay other periodic balloons, convert refinancing seller our and us debt. commercial to bank rate unsecured into to financing lower Now, financing real enables our estate higher

our have our turn X% to within and if debt XXth unencumbered affected range multiple by at dramatically averaged continue chart. be in September again, X% of we can to continued pie well need to And we've sales Please our revenues. X.X% XX costs occupancy We This were look be. when borrow weren't COVID. portfolio to properties to that page

Please assets debt Our by to of by page to turn to. by is debt finance secured XX. and now which respective real-estate unsecured seller applies XX.X% of estate, it clubs, our secured real XX.X% debt. and/or consists by X.X% secured debt the secured other X.X% is

We investors, I'd our so continue allocation to to review capital strategy. like to to time talk new take

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

Thorndike. strategy Outsiders Our in The book, by to William outlined is similar those the

clubs million been three value. to to fiscal XXXX flowing fiscal We is capital in right acquire estate whether these new XX adjusted in and otherwise. is solid to the rationale real deployed times clubs and One at do have use buying three the financing night other XXXX, like the buy we market clubs to specifically acquired year to cash applying at seller actions there existing right markets. in $XXX.X different M&A, strategies EBITDA, five In since subject We with markets. strategic

mass, Another $XX and strategy XXth locations. and million in sell we location capital to property is at XXXX, deployed In develop grown up franchises. Bombshells organically, our specifically critical to awareness, expanding fiscal five open market more buy

second franchisee. also a We signed

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

our cash on back more shares is buy the yield year free $XX.X XXX,XXX million back XX%. the cash Now, when action is than shares. share per deployed XXXX, flow we In third to fiscal buying in

to turn Now, call Eric to our let over plan. the growth me back review

Eric Langan

Dallas Yesterday, January. of Thank consisting $XX.X second largest is This clubs seller clubs estate million in we October and in XX-year and XX and will bought real of agreements in XXX,XXX valued share. upon Chicas Locas, in we Bradley. of Closing their Worth XXXX. you, in announced Doll million, cash, the expected to The Baby three definitive be after acquire and $XX Houston two X% signing Fort per adult the night closing stock markets. price financing, restricted $XX.X $XX of shares acquisition common of at million our

locations will in generate rate $XX million clubs generators. Texas remodeled, as to are being to the turn fifth and family. the the teams some management modeling family from best them $XX us to first welcome increased that $XX million Please is annually. an well-established, the and expect beyond. Once two group and our This to to of the portfolio cash operations our RCI forward RCI and We of year at bringing complete, of and XX. are grow industry They look a is proven to expected locations. classic of the continue well-run to open are of XXXX with EBITDA to their EBITDA enable expansions We expanding million Gentleman's part to in are of before anticipates grow

this Steakhouse three building Rick's one generating in is in foot machines proceeds. $XX we'll more Colorado with XX,XXX year, gross City, for great XXXX, fiscal During slot with Central million legalized in in four-story was Cabaret opportunity billion Rick's on Casino. as and market. Central is bought of than casino the component. We City We a the downtown City towns be a great $X.X a Central club million a $X working a This cash. adjusted available wagered in only see gambling. Last square

dining and slot benefit also Heartbreakers. operate in club fine turn clubs the year acquisition and in from approved machines XX. will tables. We've Our club-related Louisiana. gaming casino clubs plan three of Please and restaurant we sports entertainment, machines to Illinois and openings XXXX made acquisitions XX the last have license first Fiscal license and for a betting. well is Cabaret to as to feature Classic We seven XXX Rick's already for applied as quarter and

We land started. are to acquisitions. also location received Greater getting is We one to building Texas; for at locations continuing other Antonio Houston other we process of start Austin. XX. opening the and in in Please turn has market. Rowlett, building construction Texas, a reformatting permit soon. to and in December a look Texas; Stafford for club that permits should also construction the to We We're Bombshells expect is potential be and San Stafford are in Colorado. and own our XXth, Lubbock, three coming in

We land in is which Greater market. have purchased Colorado, the in Aurora, Denver

begin will January. permitting the We process in

and for Denver of in in targeting also the with the continue Nearly hub that the demographic Silicon market. making millennials year. it's the a tech also diverse to are nickname quarter locations to of Mountain. country of We three We after one it best new another first the in cities brand the more of of this population become a expand want

our expect to receive soon. Alabama Huntsville, their franchise permits very We building in

be each to our Bombshells, now. Florida turn of these we eight other each months open revenue to XX%, and to Illinois develop New diversification, combined breakdown of in Florida, starting for states how Please Texas regional Colorado, to quarter the All clusters and geographic X%, with was XX%, state locations Colorado, the business our will XX%. ready fourth XXXX, Texas, This at and XX York XX. nine and key growth X% including In our from slide areas. by demonstrates exposure

Steakhouse Cabaret Central company. and new in and here's the become City, Aurora cluster Mark. Thanks our five with Denver major the Greater and Rick's area example, in will our our Casino Denver, Bombshells For a for clubs now

Mark Moran

encourage section, start from section. moment move going Thank To our Rick's Space to all Instructions] Eric to retweet a things before you Q&A to Bradley. the this and off, answer anticipated we'd to from and and the very most like much, take to I'd questions get some into into we're analysts, shareholders questions take everyone like able in we of to [Operator audience. be larger then hopefully everyone our

from We Granite have Sidoti. Tower Anthony H.C. of of Scott Research, Wainwright, and from Lynne Water Rob Research,

bring off, up Scott to mic. First let's the

Scott Buck

announcement. afternoon you calendar level Eric, transactions remind leverage. taking comfort my can XXXX beyond good where you for Thank to capacity question. around first, us I'm guys. what is the in is judge Hi, trying additional your yesterday's for

Eric Langan

Yes. my comfort zone. Typically, [Technical Difficulty] is

owned, times, much shows but our that Some analysis of so actually around three. could because push of us historically four closer is real kept to estate we

I ever think the about is highest we've been X.XX times EBITDA.

now, I range. in and guess, So, we're would right the two X.XX

in be still shape good this we at So, pretty point.

Scott Buck

a And helpful. Steakhouse And what's scope on opening. line then what's that's required there's of Casino there Great, kind approval? renovation of the the time timeline and regulatory then on Rick's

Eric Langan

sure. Yes,

well the And or An worth total then as like machines. million figure leases and as for will so. We'll slot actual of it to the updating may around $X million profit doing instead investment table like So, include the machines and million the I of remodeling or own probably $X sharing security million $X.X another our systems be probably that. about stuff of majority $X games. additional

think type So, 'rerunning what licensing point. about months. process is between we The typically. now, in nine investment overall $XX Colorado and we'll can XX XX they at believe be million Right months take about total I some

doing some And -- So, of background state the remodeling this step supposed take XX next soon we're first are and as as the hoping about check. time start build-out open by Those to year. we'll is be to that days. the

we XXth. I'm in license turned with our two. a we or holidays; lose may on week guessing So, November

in at about starts at if it gets out in warming the So, hopefully, feet altitude. sometime because -- area mountain especially back there up cold of out weather the very X,XXX there April,

in to out set for open. we the our most put And I and approved all and So, license buy inspections switch June of and start wait the everything then on temporary to game, end up, hopefully up, of basically construction final set us get can the once quarter flip to is will April, May, all the it get by the be to then allows pre-set-up it think, we license done. a in everything be September get finish

Mark Moran

Fantastic.

be Owners the Rob, Club XXXX up Next to you're Gentleman of Expo. up. going bringing Granite we're Rob star Research. of McGuire the

Rob McGuire

the look Central Eric, Thank in goals can in -- that have might of you, of you long you Mark. and day facility? do you revenue at ramp after City just terms to take terms open EBITDA, one from how

Eric Langan

then bit think settle do to -- well and Yes, about see in That's it in a -- opening where going happening. I the of going mean not we're as I to then all. give anymore, you more we're in deal kid the six $XXX doing to we'll first down be open little group type Central we To an a very approximately machine on And I months. little like up. revenue. think block the typical idea, three we'll very, machine the back a settled is City it's I into Bombshell-like re-ramp new average kind slot

So, that $X over little they billion. machines X,XXX took a in have

that sorry, If we're that, say yes. with in think and XXX you XX%of -- do machines, $XXX we take we come say I could I'm about -- million up

slot like Steakhouse. nightclub to basically that, you $XX of the the And revenue. course, bar casinos as which of we they're I the about and I in the revenue of the of in $XX will really some mean right take of the if in per to basically The million start somewhere million downtown, casinos about of can table of could then, total the one be range Add casino in to million XX%. the XX% there Hopefully, daily area. in which think some typically and kind And and $X margins is machine is door, out -- and town So, over $XXX wagers. start. one's the like $X X% wagers. Hawk, game new Black XX% $XXX put high the as connected million do is we are the old reporting billion in next reality revenue and

So, I this. somewhere figure in between

we million So, as million total $XX million from $XX to high can $XX $XX million as do in to maybe revenue. to anywhere

have it's You don't enough just too new. --

in there's to Right get we how the keep and there late there See no almost market. see entertainment have can if the now, in it people in We during goes. hours. that

we're market, is going in of We've the a just like you us. an be casino think location. to going advantage great that down which some come a at the be first the our building. It's Right right hill, you're up you're coming I got unbelievable So, entertainment as to fantastic for looking location. parkway,

and we and about looking kind we're million. going. hurdle within only So, in I think Very $XX million puts we -- ranges $X that investment do EBITDA year, a we we risk XX% margin, the know and million in a little do of our of If the which won't until still there $XX get well get those just with total at range. us

as exceed expectations it really of So, and all well. could -- our

Rob McGuire

you. will the in got you Central do then I've circle with of But City? Thank be entertainment in one extent more the what back question, more. and I'll queue think

Eric Langan

through Council We X:X license them start call did not to adult City zoning get was out not It going whatever commission, on gone it, we're approved a commission they Well, entertainment through the vote. the Council. or the planning yet. by it through has passed -- City

in where in will is don't there. know Las -- period or bikini stuff city But at we'll entertainment, that out Vegas, with after if have top to not, eat do thing I not. we'll entertainment circa in there like to that. a where o'clock night find dance The So, like or entertainers no place latex main the has more think a it's having XX hard basically entertainment I almost just if

and are weekends. On market, that the very bars weekends, the they Friday, rooms maybe Sunday, expensive o'clock. there. very, very, very week, much get you weekends, can The very Monday, out cheap snack Saturday, the X in busy hotel some keep slower Thursday, during until you are Tuesday the Sunday, of get on open

wait I especially known, when work, over in we'll the casino get also to as it We'll business, cater they will off the So, to be think more other weekend-driven have business. But think stuff I employees for buses get we become to time, get beginning. and home. more they

come eat So, stay drink and our XX for we're and going day place a we're over going maybe in we probably a can to little hang see to out while get everything. them and is -- with late, hours to open

So, that's our current plan.

Mark Moran

so you And to to Water Co., Tower before bring the Lynn Research up much, of that & ask be encourage Sidoti I like have. speaker to as Thanks to questions of to I'd request accept able any Anthony up a come Rob. may

Next away. please up, Anthony, take it

Anthony Lebiedzinski

question. and for afternoon good Yes, the thank you taking

weeks would get same-store love far of your closing an update for give thus and So, quarter, as clubs Bombshells? current Can you're only that couple quarter. the what terms to Eric, from to traffic you in in or you're given a sales, just take this away I both us the what to seeing you're seeing of as first

Eric Langan

Yes, most tough off we're this customers made I what that customers a our but our at a seeing I basically small it's by the and of being would drop high-margin of time. is collar lower-margin What definitely kind customer, now. blue call spend right up is VIP market a of mean

as of couple have parties that hoping of So, revenue-wise the very of between been as a We'll steady the kind we've an lot the next really. weeks of with and see quarter. we'd now XXrd was previous Christmas how numbers get XXth I kind got so the far or happen increase.

we're think our stay go, of spend, in expectations. well. So, the as analyst close Christmas to how will like. that margins those with bring parties on looks so we'll that what revenue-wise far, And I much But how pretty business be think steady going in hopefully, see higher they I and because

Anthony Lebiedzinski

some And say. of in I even that. for those Thanks Yes. mean, the they in would were margins, non-recurring I Okay. terms excluding mid-teens, operating then of items. Bombshells'

about operating the talked margins think Bombshells. for the in I you've past;

be XX% to range. wanted in them You the

for So, about profitability forward Bombshells? segment we how should going think

Eric Langan

And I as was they'll weakest end, bottom Fourth that's Yes, sure. always if that what XX% it quarter but to our is kind -- quarter basically mature, of worst that in that think said in the we'll our target. I've you XX% to mean, XX%. is always our We're they when quarter. XX% on look quarter, I be come historically.

we'll so December they October, how quarter. And see this look in November,

talking, We we working some more doing drink have on some without changes, margins discount specials higher-margin been where stuff can hitting are the some we much. appetizer specials, or profitability as

that the that is where -- really as we're around media don't basically our marketing, like to that. thing one starting money It's on so And marketing. of social some stuff in starting some traffic. spend driving do collar we're start Bombshells blue about well, to is of we any country more clubs The going

looking that some of different other So, little say would into well. I help some and had with we And partnerships bit Bombshells at a past. things drive a going are that the economy marketing possible we've we're think I as in traffic

we're to in to that going this average going I overall be months XX% And nice can case, do we're do. we do have to the creative But into XX% so and stay up but is I XX% range. And some when range. big that be to events and XX%, XX%, XX%, to the that the we big even XX%. the worst drive have think to -- in the XX% going It's think things

Anthony Lebiedzinski

And queue. I That's before the color. in question helpful All jump my back last then guess right. I very

at Can CapEx money to helpful? certain the other have that a sense Central on maintenance spending CapEx would for be spend a and and fiscal look as will give you very us you you the if XXXX, you be So, number how much initiatives. City some for

Eric Langan

I CapEx we year that the I to a for years. invest want know a don't million really have $XXX number. three next

to our close goal $XXX to the So, get to million. will try be

think the $X change I year I CapEx, yes. I got Maintenance over year $X maintenance million to -- around we $X CapEx, sorry, going was year, don't a last a invested. is CapEx Should this whole I year. million, think. lot $XXX-something last think be million, I'm that's million for same. think

Anthony Lebiedzinski

of luck. best and Thanks it. Got

Eric Langan

All right. Thank you.

Mark Moran

for so question. much Thanks the

bring please Next going Research. to Tower away. from Water up, we Lynne, are it Lynne take

Lynne Collier

question have about additional any there Thank I opportunities just a opportunities? casino you. Colorado. in Are

Eric Langan

mean we've Obviously, I we're casino at. a other looked not there's stuff company.

have have and would some to would be type entertainment, want component a we as up. the We have extra looking has the driving yes, something out at of for versus just to revenue business casino. gaming create a standalone it of we're just force a other would added that gaming to So, restaurant-type that things straight-out business the to definitely be But there.

sure applied Golden that. Colorado of realize, Nugget other people casinos Cripple of have in casino I of $X there. applications, or smaller don't several a about great September just there's what -- some I Fertitta some out I mainly on just I in City to were the that used $XX license are out think in he based think Tilman limits XXXX. in because that recently think, is removed which your for those casino know have they COVID, of have been applications of ball limits, purchased million for. And operators there just behind three applications, one Creek for other the bought that casino being the is I'm on the Central towns opportunities And the

it's So, think I coming.

really with to kind ahead acquisition things. curve to us just did, we're the the think opportunity changes of clubs we in -- gave just of early out out Denver there the of get the there and got I get be because ahead got lucky of and five and the we happen got

That's with market make we're casinos Central City, where along entertainment then So, to over the now. the people back big and right of looking boys at other gaming kind them send out in entertain to with Hawk, and and that them Black opportunities process to Black there we'll hopefully out and entertainment Hawk. then bring bring are let more main the them gaming out thought capital the the

Lynne Collier

to That -- Is one made you be the any change less market? have about colder weather I Colorado. when to Bombshells just adjustments you have Will sounds there are prototype question into in Bombshells go patio. more for a great. there

Eric Langan

in we'll we'll if only the patio. and have type be walls, in now, seeing Right using where whole in What well holds will the need but location. walls. of of like a they patio $XXX,XXX, stuff their up do raises big into stadiums wall some have ROI within glass but we the basically put that. work of We'll design cost folding about patio, wall me, two of Absolutely. don't column. cover you've be of about glass covered. excuse we And about basically the that XX%. still XX-foot the XXX% and -- of cover I build the like kind still it the with know you that more to a up the we'll folds It that the just got the half-foot We'll Minnesota,

Lynne Collier

one draw demographic I the two about new you just of have more Can question. night you bought? the clubs just talk that

Eric Langan

that-- Is brands? two The

Lynne Collier

-- The and Dolls Baby Yes. demographic Chicas Locas?

Eric Langan

Locas Sure. girls, Chicas Obviously, the crazy Hispanic-based. is translation. a it's very It's

that. in seeing nice markets It's it. explain Those the And it's to hard Dolls Baby so for three are very is then And traditional. really clubs very actually Hispanic-based. without

Gentlemen's how would strip anything very -- a a So, -- very that's class middle of be Club, club. Texas if -- call based. kind it's That's I it

and classical there's there. rock just building, to played easiest it. Dallas a country The think explain is -- of the ceilings great Baby high early music Dolls way it's and large XXs, more there's a I atmosphere. music, a super XXs, lot very So, fun XXs, very XXXXs And

Lynne Collier

you, Thank Eric.

you. Thank good. I'm think I

Mark Moran

saying, see Lynne. Fantastic. fan I'm a Eric, Dolls, I so Thank happy that much, of was And to you Baby very so acquisition. you were as big

to things. moment want take Now, a to do two I

made that us I so we recently. to this to of example would First Space and to you to be to people retweet everyone had retweet encourage do like so a XXs now consultant the and like ask off, bring to can for get many we'll hand floor who able question, up. who like follow here would possible random as your we would the I this as a raising to to nice to space would you by of be open aware encourage everyone and

the bring Hey, Adam you're to shareholder going on ADW it Capital. mute. from largest First RCI, Adam, Adam of take away. Wyden off, we're

Adam Wyden

now? me you hear Can

Mark Moran

can you We now. hear

Adam Wyden

out a I'm Okay, me driving seen March analysts and the to door doesn't of I [Indiscernible] still go the stock. a Well, going my and sell my I'm anymore, company Wow, harrowing that in was great. three bankrupt he I should and me with years. telling lines remember been and shareholder. work it's the the happy bonehead XXXX,

Doll and it's bar. of did guys raise and And an me special sort look, look, the knows you thought that to Playmates. Cheetah bar. knows and you've Lowrie of run got the anyone who have raise sort you So, also was now trying and amazing Baby I continued been to I'm

back, which of Lowrie. this of you sort point sort So, is the I had question of with side sort

ago. He the a You that. sort time took you long business a wanted private, of got

You'd integrated. Lowrie's money. making

of doing Now, you EBITDA. next to very business. mean, other I so I know big energy about thing? are that mean the platform We groups but a very, XX, you much XX and this I the got you this the XX, got and thing? guy. of next have there build are the What's know sort invested get [Indiscernible] mean, casino, scale. like the I what's time obviously with

getting by are of sort taking you're Now, the the paper. sellers marketplace, affirmation

businesses. got payments to this cash You've make flow now down on

cash generated mean next that of and from I M&As sort size level we internally of group of You And a of these and sort in fund club can EBITDA of cash used share terms unsecured --where money. now million flow. component $X, share, you to of free getting cash this building sort years I with that a of and flow. to M&A $X, whatever free $XXX three $XX, mean, corporation? save the of $XX have are

Eric Langan

talking mean out lot a with lot there. of there's a We're I acquisitions owners. of

lot some are the been really meet time. doing Some with I small, I've this ready sell. a for are large. owners. long It's to of seller about being a

go. with to Some a not to let sell, they're say they can just tell want after that but meeting or ready while, I

been guys years running for these their XX these of babies. clubs Some have and

XX the convincing sell, for opportunities. they that are, of see there some done see family difficult we've the the employees and them. of is they up have And ahead retiring. RCI we better it's think you're very our other deal concerned where them with for the themselves, joining and staff of people. as worked with done it's some and are for around. to in even they're those them with past And convincing the but it's and in and that become years. but deals now go with been course, them They they're moved make coming they better club the I them versus people make and part the and this ranks The for have do RCI have your So, decision Lowrie selling [ to that well with up sure for studio of and Those to it more final opportunities that the XX want and moved and

and have to at. some Baby management actually a continue that's and know our XX%-plus team our especially Dolls. rate. people because team. least accelerated we growth want but And about team to don't as think XX% lose to did that want want we management types starting team we there. here, period is us Typically, It at effect. to We those we're the stay we'll I -- that we worried I of a very where to for to XX% definitely and we've bring grow, to pushing they're need then their they grow we're see have in that with goal don't at to because revamp management management team great management three-year

Casino. working Steakhouse sizes up the in the But with I bag. stuff, is the much all we're with lining We're still new XXXX been new talking hard very with new growth We've of on the also think Rick's operators Bombshells, XXXX's acquisitions. $X million, guys million with million, million Cabaret are talking pretty $XX and that $XX $X lot smaller we're right of million, EBITDA there's $X out now million, deals A that lot $XX guys guys of between. in $X a EBITDA million, $X to deals on million with there. from

And reach so of some to them. out we're trying to

are Some the out continue reaching we'll of grow them and find deals and as need right to us, them so. we to

Adam Wyden

absent a model, I from under per companies will Yes, XX% don't be I growing XX% our mean, look, you at any saying cash many earnings yield share here, I compounding XX%. M&A know mean or guys a -- over incremental about that trading very flow are I on mean, XX%. free cash

sort on think returns you're to they people very stuff, is some rates business $XX of and how investment. four finance this our next good really I mean, some good. you it in you EBITDA, it. the mean, at I envelope But of buying And of and which I and because obviously, you're not are, question, So, of the think we've sort math I about stock know me buying don't understand the million, based way million are back brings times on incredible participation is a my $XX sort back I of said casino. done online states. of talking concessions There's roughly size the

slot you if machines. have about a think don't just -- guys you If casino, you

of sort know back look liquor. could I -- new a on and you of to color give high single-digits. some I I more you're can here, thing little the the games, low like you map color if it's mean know mean, on meaningful. little probably casino industry, returns the $XX bit probably is people million this bit for can the -- but as could and I or mean $XX casino returns, guys create outcomes? so a us have of little around bit to you I the table be But have million, to what really, want Can the end, new casino? it? sharpen your expectations I as a it's EBITDA high on this sort You early, mean the more of you're you pencil much be don't folks. can range envelope have give success you really you and

Eric Langan

that $XX mean to really $XX as million really we I on $XX revenue. slot got $XX was adjust as million of we've most. to telling, I that's as is range average Yes, depends play what And much the million -- of in of going if Scott, revenue, to to it up kind our million

Adam Wyden

just That's gaming. not the not gaming just That's liquor and that's right? other liquor, stuff. the That's

Eric Langan

that's Well, slot element. just a

Adam Wyden

Yes, slot. slot. Per

Eric Langan

the because but We're just to And The I -- I for mean, discounted me side, free away it gaming. this don't think I -- it club will is to reality there's for rest time really the have club give is enough the the liquor. not cheaper liquor, have just see of liquor impossible side. be going we'll is --

to were because a than would liquor not well. see to and cheaper So, be will the as come you trying we're girls, gamble in prices and club be entice typical in only the really, come

But now team plenty and a plenty well do right? a experts we'll together how at complement there's point And our the it and negotiations people that know of on that. spending a be setup, model. as out right very, and of beauty it think way consult all got not great will out, There's and there very do those and setups bringing things. that -- we've in that lot but figure only the our not of there We're to and of our -- experts. types with other around learn we There's do casino have that is will with we're us it -- to it's So, opportunities well. not business the fill and of to there be got casino a what with components system new out a firm there excitement it's that, on industry, but out get and of planned We've put some got some I out time we'll some in it well. that I

the So, and huge the anymore rewards. I a to potential is it's part, outweighs It's not a us. going go. don't investment a that's investment know well small where small $XX million risk for

think them, them. have -- know always hard And you because to said, are to so difficult don't can't --have time right? we we time It's I acquisitions look,

opportunities for grow can And so we're time areas to looking and expand closing. the always where we in

growth growth are keep our Casino. business So, maybe therefore, land consistent if have this to mean, see we depending with XX% We Basically, can our we if we to the can excited even now see like XXXX. of can can The ourXX% business, openings. on and And dip can we frequency Lowrie's an like let and our acquisition successful and or acquisitions, maybe with open I then done, we new we I'm six never in -- acquisitions XX% Steakhouse below new we get XX% and acquisition, the combined growth growth. know rates. about we Bombshells, higher can can't planned very built growth this we size well, and open

kind XXXX. really boost growth built in, So, is to any growth Our is in do going we right? acquisition of

them. I open that growth just even they two we've didn't even that we in locations factors I XXXX. them XX openings. until of mean -- we the had bought XXXX, COVID we got only bought, some especially months They XX some been bought out Lowrie The than of great didn't that. think come up September from less when of

seeing five or had was have for hitting had still we're we very month we that. first up picked time the five months, market, we in and with then had very March difficult you different actually stuff the huge we first those revenues, so COVID step-up Lowrie's and a six -- had markets bothering a unbelievable And and months, job in in clubs and it you so May. the In because difficult

comps those move going in nice XX on growth those clubs well we're So, as February, easy with we've locations March. same-store sales growth new January, acquisition to And I some really got into the in. now they think coming pretty year-over-year as as see

the XXXX growth. XXXX, go we'll XXXX acquisitions there, the I of charts be on And think depending our is be growth end focusing how basically, on XXXX So, XXXX. just could by growth in off

in of really be some we'll paid going be get to an we'll too, million airplane got be here I another sell I off of that -- that that got of on We selling, that's probably three we've So, some probably the assets of land in next we the quarter selling and raw got quarter rid debt. take said, plus as years debt next about growth. million $X debt think can they'll there. solid -- we we're $XXX We've some

drop million the $X not level million less, So, amortization. probably our from $X we'll debt is about just normal about counting

saying our Even we're I'm right only is Xx in you we're say try you that's if debt million even manageable. now, ratio. only at to EBITDA at -- very EBITDA, So, $XXX know if EBITDA but of I $XXX million run say debt rate $XXX still million debt

flow million we've can $X at million another right $XXX least cash So, now. got generating in a we over debt well We're week on. in take

at do is give this So, big we And I do think take than back that another the worth and deal be then line, of to I put XX, new would deal of acquisitions I coming I that. us more $XX even course, don't these stock think EBITDA deals. these component just No, equity more at -- now work. that because to once on buying any we million going don't power the all for with

and to equity need could But we an to them it And million, deal they use market And if another have -- that at deals in $XXX $XXX $XX deal or the up price, use for get that's -- so million. next use to can maybe gives we price million, probably we deal if we the an multiples guess but I is the we to component maybe immediate in $XXX right cash. and well. us. next million, and at the at price, we that just buy debt the as wouldn't the

plenty two As cash at generating debt that least I acquisitions years for and there's this to we're the of year you, to make next just to with. use showed of plenty runway,

Adam Wyden

of getting IT of I is getting the the that part sort with what infrastructure. costs us mean about and SEC mentioned attracted were a on I something this and reporting I of behind right Yes, and time public the company broadly are you lot is that investment you of you you. to mean, mean -- of sort most IT spending early stuff the the and

so you casino of G&A. for super brand. about look, sort in have continue this right, were concurrent not and amount on I able because only the you're flow also without the this mean flow, the to Scarlett And growth boosting to So, extent casino obviously, was high it Scarlett because I purposes, to mean XX% opportunity I your the us So, monetize high going the your of revenue, sort so also interesting another and XX% with to returns you for right? last And look, we're revenue cash of of IT, to intents sort nonrevenue-generating were the is rate excited really increase your concurrent that. bring any really corporate in legacy interesting. you free I to can And of free Florida, very sort to part And of disproportionate cash to and year mean, degree, function, it. you as G&A growth think invested -- monetize had all And corporate monetize avenue provides the [Technical were to your Rick's margin incremental and that brand same guess, capital, fact that's you're a Colorado. same year? at you you those for super that adding adding of I Difficulty] costs was

Mark Moran

please for take much question. next, a so Thanks to Adam. we're that, up going [Indiscernible] [Indiscernible] it bring And to ask away.

Unidentified Analyst

through, for much Is giving floor. my the so you coming me sound thank Hi, okay?

Mark Moran

sounding You're great.

Unidentified Analyst

Great.

from find allocation? and the as sharp clubs screening patterns reduction Twitter is matches that with little extent the of clubs But kind there very at anything customer in locations find saying Maybe bit what noticed any speak your pronounced, examples. one happy decisions follow-up would a and some seeing I Obviously, working who work did behavior seeing if capital searching influence these that girls spend, such pass avoid in in anecdotal But I that is to might recession I you that on based just more are noticed that I how, also few have on how you're evidence process. change there's you are your that would a at. on and if some but part your from it locations on. time, that. have of to -- in they if So, became I'm are only few the kind saying you that they're you could it's a dancers people of of they that know, any here people your don't gradually

Eric Langan

let No, for you. me answer that

I clubs basically, some we It's blue And good been then -- two we have week some of our weeks then off blue collar had issues. minor the good have have collar So, sporadic. and here, weeks. then it's two have very and watching two weeks an

clubs higher-end or been clubs well. VIP have very, doing very Our

that for that, growing months very the the credit Chicago, I entertainers. Tootsie's three-month then spend and deal on in money credit I can I Miami, right? compare increases. to that seeing the well. their on and basically spend, and York, three still card New we're card did goes ran what are prior sales a doing example, we is to see And

are are Maybe having out you're clubs. other are here they that know mean struggling girls these girls region don't the say, would we some are. maybe there affected where definitely for try they're certain that feel reasons and or in other regions I -- different need I the the are I regions. than to I being So, in, there.

a are think California. in them I lot of

especially California some what spend to think very like isn't it slowdown come had girls our sense in issues markets our have Vegas [Indiscernible]. complained I'm so and clubs. said, makes is those that that this markets talking it from markets, in to in spend And from of some some And Las what visits California-driven weekends, I those come that on and the used maybe in has a little They bit some be. customer California I seeing Vegas off-spend, some to basically from and I'm there's hearing. customer

Somebody echo got there. me

Sorry.

that's basically And what so so I've far. seen

question another got You you said?

Unidentified Analyst

much, Eric. you Thank so yes. Yes,

full problem? much I they're of that entertainers is And around other new the that on project is needle trying I projects. like yet. Miami, to your of social being to create to a life an so think kind know, the the through if were gather I in Do which it sort kind more sure The not between some another the case moving either could of a of both with threaten NFT the project, -- gather don't of of believe and sort too of like hack or be NFT -- reputation, in case able have safety interact you an my and -- some I them media. But introduce for thing, could damage focused me question -- elements Miami, it you was occurred those called of circle kind I'm of don't guess interact security And real that projects they of could if that potentially risk in I I example, to know some there by guess I was it easily customers. entertainer's of making contactable in if

Eric Langan

-- we the there basically, go. mean, I

Okay.

Sorry.

The any what risk Sorry, not other any was more telling not there. Their business them much. basically the at. information is just private work it's entertainers other they out club echo deal too than any still Basically, information. than other private. getting They're or are

-- risk far as cards. mean, I we credit that the on As hacking have

employee on data. risk that have We

can in lot issues to Weave keep with, war And we with programmers have. follow of risk, of final any any group. other course, product a a we'll have Ukraine the risk actually different think going very that -- of to features push those the have bugs the issue. just until Ukraine the site dysfunctioning, ready We you We don't liability to spend actually carry working place everything and and became else. isn't we and out. there do you some I need and use get those everything have at small that an it safe. you did But other for insurance we There's in invested projects. the hopefully, get exactly spend your site you answer on based and not think It's do the either the It's layout investments, there's being everything not and switched that our you than add. point page want the the market site that and information money we're question, any dollars. the we any the to don't it to can products to marketing get But I -- guidelines, those the site. I to on We're really to way worked mean, there's want it's

Unidentified Analyst

really helpful. That's Thanks.

on it's your of just the of wish negative achievements. be on could some ask questions, risk great, generally, you And kind It to factors. interesting But two things focus I luck. that best sorry seems but to the to of congratulations be and all going

Mark Moran

out the Thanks Dr. Patel so is I the questions. to in give much a [Indiscernible]. We to special appreciate audience. want shout Parik who

reception thing idea no that of you as And retweet these to is to a limited have Dr. design for of I going what tonight items years sending be We I'd at giving mention by that custom graphic encourage like this in, lessons, additionally, well. designed out hoodie some We're everyone be Parik wanted going and Patel. space. but to love Rick was we the doctorate took to Bradley Chhay, we're addition who few one it. to a

up, Next take please we away. it Shen [ph]. Johnny Johnny, have

Unidentified Analyst

are How Can Mark. me? I you thanks okay? in guys? you hear Am Hey coming

Mark Moran

clear. Loud and

Unidentified Analyst

Beautiful. All right.

how of like we of to kind -- about have it? kind give at, at kind looking very idea the looking you roughly, square want roughly you I is foot currently be re-modeled, to you've you if just be one awesome when it's plans. CapEx believe. you this an you add, the just we expect a of to an big going nice of like what got in about Chicas kind then two as quarter Baby So, of one so you Can what it? can, more are know however guys being to roughly got -- And kind me Locas, to speed expansion end of that about I deal, under thing? talk like all thing, envision you Dolls, are location an And Nice I ask again. you looking do are this Just time. rough of you the kind budget couple I'm questions XXXX XXXX many of

Eric Langan

EBITDA I'm really actually to remodeled. at I I'm sorry, is It Basically, forgot on just being this club contributing time. mute. the isn't open as

it capacity. at a to but very reopen opened ready to going -- capacity in limited is So -- They're at full done, is the remodel a basically moment. the they're

full open So, closing. capacity, probably right after

space entire going the extra We're so location, building. little that are or a the as had warehouse at expand the it extra concept. clubs some the no pre-COVID one And actually be they and adding CapEx needs on to have far to -- do As remodel, new there two finish space CapEx will did not not -- club be and expansions that because the post-COVID of space reopen very basically be we the they empty remodel. a They club other then remodeled. would expand to partial would did -- but that actually the open

So, building. two the we'd concepts have same in

expensive. so be And would space that more

do $X run a that's And get say $X CapEx the it probably and million, million. max. of a in and would $XX this two, $X at the I million I we back about you're that between expenditure lot, think open $X million. that million all to limited $X the but up capacity between Not million so add EBITDA, rate $XX -- to you add total maybe and million to $X club it's is probably think million I get

$X $XX million to million million. gave $X pretty easy gave mean million myself I When think range, I I $XX million think to say do $XX $XX a mean, myself million is a So, so do. we I to I I can and back range. build to of on one the that's would XX-day all to that's existing. the pretty remodel probably almost Probably months, of within out. club remodel XX the XXX-day months build, actual it XX operations. months the I get much nine to first I

So, that I hope your question. answered

Unidentified Analyst

to it. those why items see didn't that's And the can go I I Yes, beautiful. compared very on mean you acquisition. are small in depth

Or deal? land? The think So, like that's is of kind lay so exclusive separate the cool. including a of XX.X that is of is that

Eric Langan

it's property. No, the sector the the land, company, ATMs intellectual clubs, That that includes That's ATM company is the all the the includes and land. everything.

Mark Moran

And followers. real vein his the Thanks newsletter [Indiscernible] And Fantastic. that Jesse one you same for up number check on going so next. with to Seeking we're out Jesse writes XX,XXX in to much estate, I to would encourage question. profile. of bring Alpha REIT

on You've had some Rick. great threads

take Jesse it away. So,

Unidentified Analyst

I great talked mind, a Mark. said. your I'll of Congrats considerably previously the question quite flow that had updating as but your about Eric, grown have since much, cash it? you it. then, asked in buyback I the appreciate threshold very buybacks, has ask you quarter. figure but the you on Thank you've this $XX for thought Johnny about

Eric Langan

have because you probably going building we're great of soon, I haven't we wait can -- to look again above well buying January we to haven't opportunities, the free until things XX% such at It is so. have flow right something see, or after yield. now, XXth and as the cash of

at. feel this where kind for get close, Let's we're acquisition a get of

just I recession maybe what some inflation seeing and a -- cash because and a their don't their and like if get less demographic see not it by going types with Let's is. frivolous to demographic a know income. prices or disposable of things gas deeper call I'm recession to getting recession. or food little is this slowdown. those more affected high seeing I'm any certain a even And I don't really economic

started little And so is visit blue just less little at a we're they're maybe it maybe West up. they're I could collar Christmas end a yet. know And getting what what bit little a they're -- to it of maybe just I when Club don't know don't But or school tightening then and tomorrow, is level. bit, spend in coming the

I just maybe which And was I to back -- situation. by expected. The maybe demographic economy X.X and and with We March, is But problem normal. or pending. think things raced current the today, February, so the Fed that's don't get that go know, worse. they just

think and a don't numbers down economy the back slowed has we customer we we'll this at a people But little inflation back at I economy little normalized seen. hopefully, our I come to it's -- peaked so but And bit, either. have like bit. where the can our money, high-end said, our And believe that in they not down obviously, free a least clubs. get not to So, that remains doesn't get expensive see inflation it's at anything affecting spend point, all high-end do be high-end can't more

So kind a and make to revenues to make plan. them our to reason maybe have of keep less That's the come people, some for back visit, in shifts discount but in line watch. a those them little same maybe we expensive and bring We'll and just give time. the at margins

Unidentified Analyst

Thank you. it. Got

you many into their right pushing club right you the go suffer the have opportunities from to Could growth that now a that rates? acquisition it driving why recession declining perhaps that? lot all now? interest the rising Do of so talks this that forces would front, a club the of high we uncertainty, it's one the clubs sell On you the think say is some of this recession, inflation, acquisition to a be before try and owners

Eric Langan

I Sure it I in was was mean is. that would that's do I and what situation. them, if I

higher large also like But and ours diversity you'll we've the these about I geographic multiple. that see, risk as a things moving have a think we're to versus we small times is four company you operations when -- have. the

a ourselves giving XX% basically we're So, cushion anyway.

continue out we're end, working that out through to think and doesn't figure we things it's matter And company. this a these well So, for I at long-term us. it as push really because the

I We're as in next that doing have which future. fantastic to through We've part and through the ROI. taking our risk economic equity will acquisitions tremendous cycle in be the gotten, it's cash we two financing using better And minimal growth. turns, seller we're even this it in then the three going last been these think, company, and now reread I has, just deals, we'll years; at great with those good can. very for and the the as think I of think, then for words

Unidentified Analyst

Sounds good. Thank That’s all I very much. you had.

Mark Moran

call, as you DTT to away. head Capital we Hunter, up so of much, take Advisors. Long/Short Thank SPX And going I'm Thompson of into Jesse. bring Hunter please our this XXth Fantastic. it minute [ph]

Unidentified Analyst

specific on quarter. just you're of appreciate seeing to in Thanks, that clubs? the see color hear call-outs the Love spending habits strength and the we to consumer? around the you said, can within qualitative customer hear your follow-up your Mark. wondering any And quick demographics. really Do of any congrats more your Hey much regarding kind if That Eric, on not shifts a view on then a recession that.

you see the XQ? Regarding do grading this linearity Thanks. in trend quarter,

Eric Langan

we We have inconsistent. are slowdown it's we like a XX% little little next I X It's now, will will bit I -- a mean be right consistent up is off be X%. not what the of week a bit. seeing a said, slowdown. and

at There year. the I nuts most demographics, of right last and geographic little at it's party certain a at because our we're all. important seeing high-end changed if their like things slowdown in any. not have money But was a much non-issue us. affected groups much are I I that kind were year-over-year not now, think base, the factors is of numbers it's for year. free so are People So, habits bag all, there is now. And certain said, look many mixed a customer Others are last so diversity, still What with not right changing there bit.

months, teams into not social we And business from last do our like on sequentially on basis numbers last see a a it up a the businesses. Like for step need t six -- more that. stripping. have are How we're And markets of doing so changes. we're to we and XX seeing marketing, we're what said, a in are sequential But adjusting I'm maybe weeks. to are? guy, presence. We the basis. we weekly adjusting. numbers Our our up bring things step seeing certain sequential numbers the media declining then do it while We our We the I

so affect think saying we our entertainers those will right those much share I'm as when But they're watching our of are of market, seeing just saying get certain we're And the figure there how to the to share I not are they if I so out us. things and if now, the see earlier why making to continue market any better declines. money -- aware things. of closely that's guy I'm mean,

how should we've so And I second it your question, And that's covered what was down. have sorry, I'm wrote that.

Unidentified Analyst

quarter. the was linearity asking about in I just

So, see through that did going things QX? are you

Eric Langan

I have see expect don't. have yesterday starting and increasing right And shoppers over we these we'll parties, November the And starting December to in now. parties the yesterday fact, is through really that actually how I big and for XXrd, there's shop a while by come that. club go that and think lot Christmas a like and drinks of and lot then there's out of parties, little the few I a stuff a for

of a lot days, next we'll think did so next so the So, And much very that Hopefully, we big been the off nine I up Friday on only that over we it. we're week. to seeing I days. data we're great. Saturday, has set the we'll have think minutely. a even This how it for and far that's week not off notice that, And going eight and are see goes was week been was week really

Unidentified Analyst

it questions. That’s me. Thanks. for the taking Appreciate

Eric Langan

Thank you.

Mark Moran

questions. We appreciate much the Hunter. so Thanks

going to [Indiscernible] we're up, Europe. Orchard Next bring

go. You have to unmute. There we

Unidentified Analyst

couple universe to that in? thinking the be understand of a things that think which just you the pretty candidates of or Hey guys clubs, I There's XXX the up ever new at. like you to about a yourself you guys, of about live Can X,XXX out want from club ground that's just kind just are see of way get things. would world looking much the or opening actually you

Eric Langan

license that mean for looking and to for be is ground-up very that. I a do I Bombshells now. by deal really I granted, to Texas the forte say, cash at able Lubbock, we have our our model I'm right sure but that making It's and exactly but we down to another we're forte the as I I'm side don't builds. buying doing building We cash gave that now, ground-up to far our not are it's were of intimate bought through what opportunity right practices, some very because the able we really on we're not and something ground-up do across where best or I Texas, But it not it might time. us club over was do the our develops or far We'll flow our I'm definitely it's highway us it's mean do new state there, of property move away well the in stronger expand we areas something but our building domain, acres through build consider type our from see flow, the and club, saying but not the five economics, close we I or we time. highways, wouldn't, works at. is, how town whatever, national really through this existing taken deal mean licensing right? just unit not normally guy. on never that there's couldn't probably buying do. never things power that into say could as the very, a But

And to risk thought location very us and somebody economically was great with minimal us. we the to viable that a was was grant

current chance. that take time build fit might model But new business we quotes. it think just to our doesn't I the really at

Unidentified Analyst

Okay.

to buyback would return deal anything make and I'm your be because that the is at that's to assuming I'm this I'm of in did you So, point, February. looking the update $XX price your basically current forward saying overall what going in rate below cheaper.

bringing going what comfort in? think is, cash cash your thing increased guys given are you other The level the be is to you new do that

Eric Langan

it we've where get been to to million. $XX I we've million our keeping cash to mean put trying work been under closer $XX we

pay $XX And million and deal. I $XX bought of probably $XX $XX properties. $XX think we our on a of going minimum side, put we we're we million and I think or out Obviously, to this million. to want between million couple million minimum the

But stuff $XX little other we're got some expenditure. check; we're we're got week. think a think in some have taking million We've million. I a looking right around I a over We've $X CapEx at I now.

And line of it $XX a really after going to what first -- have bank, at we back we bring may We out. of million year this to the of So, try credit fast. line with $X million of line the million builds credit a may the credit. $X that used look

But past. interest all our possible. So, I returns money debt. case. we trying keep we manageable any rates that as still when it market not the don't our borrow the to trying we're we as spread. and out we're have only deal. though bought when debt think XX% bank money our bad making today interest so, high the because so what X%, -- X%, sell money no Staying did so -- keep really the XX% to still in away money. deals do finance do expensive these is are of from it's bad we're borrow low were the double as to on just standpoint, it's XX% at rates Not to But debt, so the in to or bank unsecured but rates we've as a expensive for Even the from it XX% The new want worst had debt us we with do

be our So, weighted off under that once average think pay back we X%. XX% I debt, probably will

we're it pay but could. Yes. hurry to So, back, we not

Unidentified Analyst

long did, five And just club one other thing. Can you process ago like begin? you give how really me just deal the an idea this that of did seriously

Eric Langan

the Typically, time start the it's months and out the amongst involved done. got and these on we to the legal these six talking what is we the principles things. Then taken permitting. But stuff then you've get work lawyers from time get

now, right XX the process, at we're So, it days. about permitting was

XXth, XX, that. January signed us somewhere we XXth, like which around on there deal January something the So the put from days would XX

I think that dates probably likely point. most the this at closing was

Unidentified Analyst

mean club, I like sometime look, make seller this like to hey, saying, or basically around sell let's was June, But I'd my happen. the May

Eric Langan

Yes, And of from them timing would the than look then in buy call example, the at I deal, got them rest said, I I seriously lots tried XX time to varies. then mean, if buy I charm. really to to was mean, XXXX, That it less time's we we mean for yes, a and it's states, mean, I say, the we just deal, finally in got like the third days. -- tried XXXX, BCG with done deal licensing. the done XX just, I the you

if you've the got example, was a time XX The a other from and willing deal first three like, That club thing negotiation, the entire can the of for days. Heartbreakers was, do we probably months look, I the we owned transaction. XX less entire seller, mean than the time days of was met

complexity of dollar the the amounts, the types varies those and deal, things. this of So, really

Unidentified Analyst

that just are the you would with able that if you guys way recession any and at my just And is now, it at some mean, are guys all completely going new general you that to consensus of have I Well, clubs anything mean anything because keep the slowdown happens. in offset things clubs sales, cheaper. time, same adding same-store doesn't right sort even buying buy

Eric Langan

buy But think I risk not And been am downside today, downside think I stocks. I Yes, kind I other look and of right investor, thesis is well, outweighs risk, risk and right? my limited you risk, an this an was risk, if I'm very I downside interested. And That's If right? now. companies what's in always my what's RCI your at downside you investor my thought stock other with risk have my my always upside my if And downside right? process.

the stock, back buying certain levels. at us got stock You

be You've club same-store said, much should more us, a especially at turndown have drop if in the sales, would for got very than unbelievable that. EBITDA like not be even XX% you which level, -- high we the

in -- through ways We to during costs, still but grow control things, line, know find to right We're COVID, keep we we our going margins keep faster. going our to We which have it. we to how do would did cost grow up. those all we're

we less happen. just -- of a year in same than did So, slip, flow that period, from I free to months now earning us ago I see out six that the cash don't is

Unidentified Analyst

now of right S the You're growth. curve in with part the advanced the

Unidentified Analyst

Thanks again guys.

Eric Langan

Thank you,

Mark Moran

question. the Fantastic. Thanks for

Next [Indiscernible]. up, we're to going bring

You're up.

Unidentified Analyst

through Eric with Adam guys and recent I I over Thanks, quarter looked on post the club and wins mean great congrats yesterday. acquisitions. it team, Mark. the chatted you and also

the it of about Lowrie's there. great. acquisitions. It's year, sense training over for closed. a maybe deal the some teams out some think and equity be makes would Looks a management the rest to have a returns lay of year been to to time it like going integrated back lot there. I that Obviously, since little takes the just I staff a question get a

see growth the for how today? guys there are efficiencies in clubs room Lowrie's Lowrie's clubs operating You revenue more or the or

Eric Langan

year at Yes, year. I a full the operations a and had previous mean, month give month of kind that you of first look we statistic November a was I this

to month So two was in the with with locations of basically, into going operations clubs. rest about best over it's all the I that XX% And to those -- increase. were Lowrie's we're worst were the think I year-over-year the our year-over-year X.XX% Typically, XXth mid-XXs. December. location, the And think growth location XXs

we've very what So, growth done. year-over-year good

to continuing move I we as certain of forward. still are we're growing clubs think those see

So, we'll at the see nice get you're think growth in some the line. million see our to $XX But when scale that. made seemed end top price more you'll out I the going right it of of we And acquisitions. that

think you're line right normally from going more year, four deals. including As to it's and this a come that our real we the with in these see those we I half clubs on four, in EBITDA see times estate

very the to us acquisition it's long So, over nice going for a be haul.

Unidentified Analyst

mind will four business, efficiencies how the and love the at I get in things great. then Yes, times you be five times.

probably growth. and that something organic Do into? appetite mainly the allocations color operational a like is buybacks, for said And you a guys Thanks City everything. you the expand year, see obviously then just buying if before on the you good? Lowrie's. you'd opportunity. to the I an one and guys about and out, capital tell you as early XX fully with think that's guys guess, So, of But can months space licensing have great. know on question, clubs more results that are I Central Bombshells on

Eric Langan

day, then the business, business. restaurant the in cash in The flow this, in in business. I'm if club not not know, wheelhouse create results flow or years for free of that are -- going, buy cash strip can free the cash end flow have absolutely, I've now I'm think right? to you The the don't And real not said I several mean, as I it's estate within market we the of our in I business. at I'm fix they call them. our I again. in, play clubs, into they plug you amounts and right? our people are them, at If Seems simple. good break, pretty slot we're our somebody, large back we're in getting to our at One operate, of through buildings. of they machines in marketing and don't free the them You is thing easy people entertainment is work. good very trick there them very plug and pretty operations, I'm getting

had is entertainment So, and good of and -- to I have the and a where then in where pretty business. to you fun drinks our are waitress and want right have Bombshells food the of out And atmosphere wheel very part come DJs and we music think and the people goodtime. good house drink and eat the trade it's hang we a similar and

it to adding I -- we're factor, do going it. similar very entertainment think to another is we're just component regard going it's take the and in the we're casino just that way business is our to is

it we'll some that if we'll look I find states do very So, it what, to success. can I don't now. know, form I and success with There's, with we think if right. gaming of XX we mean think definitely require expand then do well, I

So, everybody well with place thing, and we a they're everybody and in little go a from the bit small that than a in with same can big market it. very we over else and with all least states transform come the just do is do and small there's casinos traditionally, different doing something can exactly

Central I we we provided a can in that think going definitely go-forward look City. successful would be on as basis, at

Unidentified Analyst

That's a for that, some people on business Congrats but have guys get for you a get you were love to to don't your flow today, come need I an it to trying that I results in it to at guys on York opportunity. great. little open critical be missed make and It like sounds question. grand in know City, we I'll time, able that experience on Central but first a yet, like New so you you. when thanks great of hoodie cash to next not the ask see on Maybe to quote. area in free a quote again chance I out

Eric Langan

you. Thank great. Sounds

Mark Moran

We'll to when we a for then. make see you you sure sweatshirt bring

our shout in themselves, out we who's next bring to audience. the out congratulating VCs Now, two up and askers, final before question I want

make in of a let's I and think a bring speaking invested Rick, value themselves Wyden investors to Rick congratulating deep needs question. for those for follow-up account investors, someone to Adam in up

Adam Wyden

occurred such while XXs, at he's it and to is on, at allocator. It said, million. talented It is with years was $XXX really Eric in taken know, you He's yield. time. a was from of trades Hey. texting them somebody interesting. I Rick $X to capital million long really just But get a the going his they me, been early EBITDA good to a it's XX call

head, $XX in what number $XXX sort you my at sort You obviously like other is. have of million done of, million what had pre-COVID. are I

you're of three as would doing. on put we company can would you you of be of it minimum here Twitter. the over XX% for you is you might quantum does and about at your scope what next, sort And what of power the seat Like it obviously, for for is that the $XXX like what just sort sort million. XX be to years, the earnings Does of to helpful but $XXX be cost of plan I million because you sort and higher all front of going billion? How it, backlog understand I you you of that to is building next maybe might I how And of trades sort at? and look for explain terms of doubled really So, based to the row million for to really -- of relates this growth investors million multiple capital big think trade on sort in XX%, and expectation Maybe years, have helpful sort of $X of annualized sort are helpful your the say, sort what the of obviously look I to here what thing? sort to it I helpful grow XX the on the And the -- talk if the you investors years to trying think $XX XX? of be of you're you well, sort the of that but $XXX think it make people to should to sort five said, it sort we million? more to mean call like the $XXX it, should a like from other establishing

Eric Langan

They were we after first Everything -- days months France. Orleans. there. in being turned a The his money. We gain from comes took over Orleans was club about I vacation $XX,XXX mean, driver I a $XX,XXX merged running club club, I bartending, clubs. the did with the clubs. had to valet Rick right. literally when New month had it, thinking, talk written XXXX all not no sometimes. making I club was that I'm I took gone a job on was was for into founder Houston operator I $XX,XXX team doorperson. the down first three like in XX my moved of He month And public was front years, Houston public three there. my to loss the I a to there. was back didn't the you club, When security. was was turned original think making team New had I running like XXXX the I Minnesota, to company, evolve went left, sent a -- running Well, in back -- back went in I team I I great to me a to to about XX great. strip the bartender. experience. was I a the months, the clubs.

we owner. that okay, didn't I'm comes us. over worked in So, tries he that. had to clubs basically we I out, seven so had company when back clubs when of the says, and he while him I'm that I money, we a And charge up to club says, were thing a came was think was bought taking He now no so he that and $XX,XXX that, were him girl he month got capital, charge. course, says, the first left, when for He loan well, He says, we was decide is call can goes, And $X.XX -- would about it's stock of basically, that cost were out let $XX owner. calls little Manager Robert, let Eric. making okay, I It's buying bit owner. net month. bunch yes, public no company, bruise you And door back, talk me an to losing running banks door. public from to had because a she out the I'm $XXX,XXX company. the the am he no, through in we and banks went going, cover manager company. he really him ego to somebody. here me public he on still work call us get up. we're I to how We says, to a stock me in Work through She even is of a a owner fire XXXX. going I we'll the had won't hold the I'm you? the Everybody help a says, Robert, over And and ended

We first allocation accounts barely could few bank a cash XXXX big process. got in company. really we our because way So, in We [ph] XX%. we've we got million growing so us. growing, doing deals real rate XXXX, any -- XXXX estate which -- stock the existing there's capital, when at we loan, our all did consolidation we're our $XX checking we right? now get got we paying using kept strategy; capital that that loan, no were We grew our banks, capital kept a XXXX capital, through got XX% we for like couldn't use Then solidified financing flow years for cap on was equity we learned

past -- look are So, going. We done we we the that. actually, bank five XXXX today what years financing. we what do? everything I We since since in to can where last mean and with we got say, got we've got you built

a we market up, assets, we're of stock the licensers rewarding that more even bring that more the multiple Market quality us. moved get couldn't have that great has it private buy given public the thought to on about stock buying around before. market able in opportunities and and can buy arbitrage turn are great for into cheaper we Now, opportunities, of is the and our has us clubs, line more those quality the and us. on up coming those the And properties company,

look we're -- acquisitions adult a Alcoholic of are the to Dallas, Texas great in Commission -- the is you at Beverage in go Dolls you that those Texas been-- making can the club and Baby has state If the see that's

Adam Wyden

Sorry Mark's think getting But to you. I tired. interrupt

greet. your I think to you to and do guys meet need to Rick's get

I I'm years is it to think million you here $X what getting took $XXX million. to at from XX get

and got it now, the Dean don't and great you the of and operational. was machine Ed I'm like now and I it pounds. you're machine, you're -- XX of bigger order years the and machine really I -- all built seven somewhere machine but put big the XX How of you've magnitude? But a that hungry. how Darcy, can guys, and I'm machine can you capital machine sort the this machine. feeding much we much given of in was these hungry. five how hungry Josh too, allocation really you to all Some and -- Bradley these years? food spent next lost I've over know because we like building make the

Eric Langan

is of gone accidental I done know and we've our mean, capital my stages, we've allocation total goal mean What what can domination, in world right, -- I from we're linear entering growth business. strategy. we everybody's size the a right? goal don't is because growth I is. our that

other make If look of a that -- we're to see million did been curve $XX acquisition acquisitions. $XX you're an you $X of a up. down At that And starting able XX in generated a million casino couldn’t year, -- But kind in We're time we on the those last we We $X if doing five We the $XX.X million piece acquisitions, it's even locations. with by six payment the million steady build these time to pieces an to a million starting -- a XXXX, doing of property bought we payment. we're build to where did $X it dream big at doing bought to property also from We it's XXXX. same of growth, we Bombshells steakhouse on. million over and because in And a it's we're multiple right, acquisition. started, the you -- days. of look years, the XX last but and acquisition finish, was kind acquisition. days bought curve, time, looking

going day we're have said we we the to much as cash. So started,

strategy and have we in putting deals. is of make do the sure allocation to the we formula over we the sheet, will on use. And the XX drop in we to beauty fifth with more the this. knowledge than cash million XX didn't had our math have our the balance later, we're started acquisitions. time that That's $X that make capital we acquisition, the our to after cash we spent power we and today So, close right that kind the have the have that just days actually days by But grade we earlier past we of

can fast can close as we grow, deals, fast how deals as them. and manage So, we the find

ever now them what our the money with now We've acquisitions And go got [Indiscernible]. other versus of would send club, end to that good company still and don't to takeovers at it of used those involved But of systems weakest to ask in the we Ed anything guys of buy a we're really you is link think guys time. part capital out starting. management to strongest it's me now be our getting right people, strongest you that's our company kept couple started a teams, and But were really it, we don't take a -- because still our been. part probably link. We -- you at our and and our We be. can our that Ed weakest have have been a day, club. lot got it's actually stronger I If And -- have and than put in to the manage and our is these And -- buy we going now manager. regional our of weakest and as even things still, to myself fast. link

know have PR it. manager get now operate at the system is we're This these. the a have we got to to okay, bar way We security This things how go. to got way in. these put is to to knows, how up. I our is I know needs set -- regional the how be to system. We This to get the going

can -- mean to it at the XX first year we that Adam, million put million $XXX next to to over we're the next growth it ago goes, work, $XXX months years. see keep Maybe and three over the in going. to work work sure. we So, process. and next but see the XX $XXX the I for put much how three I in wanted us put XX that we're And getting into growth hopefully, that years the you to told months well faster took next I I million exponential think that a

Adam Wyden

that simple basically a are many of that this and mundane Watsco in growth There have great or or very of people a and M&A offered lot whether on companies organic capital allocation conference strategy PoolCorp companies I'm sure it's simple many, call followed have companies. sort

of you join again. can that and So, high you'll group, highest if company. be sort you team Thank in

Mark Moran

Adam, eat. team Josh, ready Eric, of Ed, Adam's for to you XX are to tonight. all He's world question. the Rick's phenomenal rest right. so and David, Dean, Bradley, great leading looking charge the much, starts domination. the the domination, And hungry. pounds. and He's speaking down phenomenal Thank we're of All world it

Broadway, meet at For RCI's those top XXrd can of X o'clock at you Square. New XX who late, Rick's Rick's located clubs. West at York, us tonight is management one of from and revenue-generating in a Herald Fifth Avenue you joined Cabaret little Street between

behalf using Langan well If for RSVP'd, an of night. door. subsidiaries, I and Bradley, P.M. thank you own will company be the have ask Eric allocation our as you or capital good and after my as busy X at me strategy the On Eric,

clubs one to please Bombshells Restaurants As always, or visit of have fun. our

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