RICK - Earnings call 4 2023 | RCI Hospitality Holdings, Inc.

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Mark Moran

All right.

Let's kick this off. Greetings and welcome to RCI Hospitality Holdings Fourth Quarter and Year-End Fiscal 2023 Earnings Call.

You can find the company's presentation on RCI's website. Click Company and Investor Information under the RCI logo. presentation. to you'll and links.Please find Slide of you scroll info turn take X and down all our will the investor company page, to That the necessary I'm Mark of Moran, Equity CEO Animal. our of host the be call today. I'll I'm and of President RCI Eric CEO here New in with Langan, York Hospitality. to CFO, is turn us from to Chhay X. Bradley Houston.Please coming Slide

listen titled Holdings you doing so @RicksCEO you participate RCI XQ SlideX. on landline call the our Go Call. and only aren't a can a only, already, conference to to safe To Hospitality the Twitter the mobile If webcast. question, personal need Twitter [Operator select listen Instructions] space statement. is and space Rick is to 'XX this computer. making Earnings everybody space you device. turn This being recorded.Please on a remind of in a with Inc harbor for to it through To is RCI Twitter Spaces. ask also call I easy traditional join available to want call join will

statements call hear of that anticipated. involve Rick's obligation I X., may occur to explanation update financial any you turn We the forward-looking in those results that materially of result non-GAAP see or Actual disclaim risks and currently disclosed information to Slide to as may differ a You this uncertainties. from afterwards.Please developments also direct measures.

Ave New a to Rick's of XX to from York Square. one Broadway, Rick's Finally, Eric located area generating New at listening to me the between XXrd top Street clubs. City X in Cabaret, I'd like RCI's o'clock tonight management Xth West at meet and invite in everyone little Herald and join is at York,

CEO the RCI RSVPed haven't us If and Eric, introduce to you for Eric Hospitality. take Langan, President away. door.Now, I'm it of at pleased ask

Eric Langan

Slide turn us for X. Please to you Thank joining today.

than million, of We was sales I XX.X%. line in in X.X% acquisitions. year-ago quarter, with think offset everyone more revenue results quarter fourth a generated what higher mainly same-store of $XX.X the our expecting. than increase decline because are generally of This

negatively were same-store of margins were sales higher impairments. percentage sales. Because However, of also as affected decline, noncash the impacted by results a

earned we solidly on share. result, profitable share.We But earning per $X.XX were and environment. per in are a non-GAAP basis, we $X.XX a a As complex macroeconomic unique operating

as performance of leverage I'm In year's of talented in quarter. of the operating refund strength addition, XX.X%. same-store dedicated the third 'XX resiliency fiscal X% up proud saw fiscal X -- Nightclubs a our cash tax and up proud the million X.X% highest past from compared years. with we've efforts last the also flow in half our XXXX, our second free to and benefited pre-COVID teams Fiscal in Bombshells $X.X am were up I efforts XXXX, In model. our and well of sales as business the had

saw to the second-highest fiscal EBITDA cash in Slide company's flow also of eclipsed X. and We history by XXXX.Please dynamics free only the the unique turn levels of adjusted

made have that progress next. pleased should subsequent growth These process and significant to towards fiscal results this initiatives. produce we are to the to report key and quarter, our in We year during -- begin

to some improve operations. changes We implemented also

XX.X%. on we its adoption back to continue fourth fiscal of cash growth on X. a turn initiatives cash allocation to X Subsequent our strategies to more to into results. increased Slide buy and our moment capital initiatives. be Our into go the to major strong strategy more believe provide plans.Please the to have significant able -- to -- take detail like long-term flow annual quarter, free I'd to compound continued We Since a has implement the XXXX, shares. progress beginning resources more of we year-end basis

Central X our about & excited be to and casinos, Bombshells City, Rick's Colorado Casino. Casino Sports Steakhouse Cabaret continue our we First,

of effort, it of beginning the the At are XX very licensing conclusion the estimated We Colorado on gaming would we state's months, take history. based process. this past awaiting XX to

in the still has timetable. process that with No line license other of applicant indications proceeding. indicate All is gaming ahead are received We us. the

also are licenses to have casinos both form for of permit building We the liquor our for to -- Casino. We we organization. and the Bombshells awaiting begun a began form

we casinos long-term a retained for Rick's building permit deep a in Operations. the & and Director first Casino have Colorado Interior Casino. experience Steakhouse He our has Cabaret quarter, We received market.During simple the of demolition a has significant both continue opportunity. been Based we to cash Using in free and this completed construction anticipate XXXX. we a flow believe has math, on opening this, fiscal all begun. represents

slot is for well XXX games, of machines a as plan X table XX total as and sports to betting. Our

a do slots, to nearby gross City they Looking at Hawk. been averaging they Central $XXX $XXX day in Black per proceeds XX/X the we which Hawk per basis, also. on in have adjusted plan and is higher because day run mainly Black

We have Slide for Street further to X. development I'm Slide as turn on well.Please assembled properties casino additional sorry, Main X.

here. and expenses down, a margins. have Locas to Got quarter have ways location Here revenue acquisition the in acquisition. and are March is that remodeling since contributing come little more growth. operating percentage June, to the which to perform we Dolls-Chicas every a Labor confused The analyzing improved we those And Xth we Baby Sales continues as improve direct of go. finished well.

to X that Baby existing Dolls, We we 'XX. [ are Texas turn will clubs that use us branded be both helping a fiscal club open planning in assets into more ] They chain. own. X major

RCI Lubbock, Ed previously told we Shaun Kevlin Reardon you Director acquisitions Dean focus and time and of club replacement for the on named reported, enable as Assistant new is clubs. Texas. President RCI and of development Management Management more nightclub Director Construction operations of is we underway.As third and we This should in Services Director about The Services. that Anakar,

the sake not buying of clubs. for moving ahead but overpay We full we steam are regard acquisitions, to with more will

have script engaged in be they continue had with club very additional They've XX the We many smaller was that our of little to we've are experiencing. didn't expecting here. bit challenging many XXXX owners.Off acquisitions front I've reserves talked and a But are for what numerous on XX come very us. to operators actively year to discussions a ongoing and we -- over And in that be going had. terms. to us compared months the to I'm next favorable slowdowns to

In Bombshells existing please there. kitchen at suburb major add to Village, excited Slide of I'm food announced that.If our our a you'll to in XX a to So, very program. expansion we Greenwood development of Bombshells Denver, offerings about the hall review food September, successful to our turn

location off November, Hall.In is the of opened relaunched Bombshells a We start. that Cherry Texas, as It is first located have Stafford, Food Creek Houston. great to suburb later in a we This post-COVID.

to other All Downtown on continuing expected new years X more construction experience. Director are 'XX.In the Denver we Operations Bombshells, restaurant of in begin Rowlett Assistant other Lubbock and for multi-unit of our Regarding remodeling XX new hired developments, than site. locations fiscal is and soon open with should a

accelerate strategic sales For value growth. I'm we or maximize Bombshells, all use basically, that currently groups, the -- partial equity the operating private strategic mergers, sale can to asset basically out our all there opportunities of exploring of this and partnerships concept, with --

like We to many that capital, like do. believe to just concept outside that we into Acting capital of more the And our us the casinos, and to opportunities coming flow the profile we I'd focused advantage Slide our of do that with more get XX. to low to keep the operations price I'd capital successful. to you of I up, on shares. have quarter think units be if highly see than that think in we the we rather can because take our too I capital expanding need our XXX XX expansion and company's stock valuation, our allocation free strategy, upon back buy Bombshells.So confidence 'XX turn of our to strong fiscal in first to those continue cash acquisition

also an million per X, stock our they in -- $X.X happy And be million our clubs, for trade 'XX. about cash to continue As price we returns authorization. on common of below remaining cash of value QX fair We in and to detail, and shares at currently I'll purchase of continue we when prioritize approximately results, session. aggressively December of repurchased had here's our opportunistically take high view average $XX.X end and have new materially to back the buy Bradley value.Now more we and to our or shares XX,XXX share while $XX.XX restaurants, developing Q&A, casinos, of this

Bradley Chhay

a alcoholic with corresponding alcohol a steady sales revenue XX.X%; rates and Baby Service beverages been from calculations, Baby and we X%. excluded and million versus increased been this sales notable revenues. included to turn most and acquisition also Chicas-Locas ago.If Chicas-Locas, The Service Dolls, in million sales which direct Slide This reflect non-cash decline as our service quarter from XX.X%; other, the flow. Fourth $X.X review the percentage operating mix non-GAAP quarterly and Dolls, year. Please was same-store to due X.X%. summer Heartbreakers, sales clubs mainly more revenues quarter decrease sales different than higher in $X.X acquired the Post would food $X.X $X.X same-store have service this the same, of a million impairments. benefited revenue the Fourth Eric. items offsetting a XX% declined was XX in XX% slump segment. cash have of have decline. costs from By new revenue, type, coinciding free had acquisitions They in in expenses our $X.X Nightclubs mix in of a primarily growth labor of Thanks, food, year-over-year. more million quarter results and the million shown increased year revenue. Nightclubs the typically lower sales revenue the improvement, to Heartbreakers, the newly in reflected

a Creek San a quarter subject $XXX,XXX. $XX.X tax a quarter Slide This tax segment. was rate with more or again, non-GAAP to Lower GAAP turn result, of impairments.Corporate federal Food Slide compared level for was of Cherry same-store were kitchen.GAAP reflected offset $XXX,XXX. segment, the our million to a non-GAAP fiscal XX.X% to $XX wages our million, revenues that were strategies $XX.X the quarter in acquired and operating in On quarter. insurance and ago turn margin operating million to range in of were and $XXX,XXX. taxes.Please nearly revenues, XX largely income million year have was higher. in with a enabled 'XX the by review than at fourth were non-GAAP at of the calculations, loss operating we've been state the income Hall million to to to profit As expenses last tax $XXX,XXX newly level quarter XX.X%. of profit I a Fourth non-GAAP 'XX challenges also significantly the XX. was and This items year-ago reflected fiscal of revenues.Even to million $X.X income to or year at they 'XX.Please non-GAAP a higher the XX.X%. $X.X legal compared about declined of higher approximately $X income and Bombshells effective effective $X.X XX.X% but remain benefit macroeconomic was revenues $XXX,XXX with higher, was basis, $XXX,XXX to partially sales mainly Please salaries facing, of or million operating and credits second a from excluded the of XX% result rate want Nightclub portion delta million XX. fourth revenues our was profit payment $X.X Operating Slide renamed locations, million the $XX Bombshells the $X.X income per namely increase Antonio in of of income Bombshells since This note X.X% its more typically turn year. In income million offset

COVID the fourth and area. you and Please see quarter as X spikes fiscal turn third of big 'XX out XX. to the third quarter Here, Slide we of came in fiscal we margin the operating the 'XX can of had in

cash with up a of non-GAAP. GAAP that have the will free discuss closest advance In slides look and and on We that, which coming metrics. other are this of equivalents of the to to ended income.Please our with some EBITDA, you which we of flow adjusted present equivalents slide, year wanted key couple $XX XX Slide operating turn are cash to million. cash We at and net

million fourth the to During $X.X used quarter, buy shares. back we

XX% carrying a We credit fell receivable. cards in on our was revenues. of free also ended ago the with in million accounts Saturday. the or from of Adjusted year XX September a XX% million This or sales million receivable from Thursday was quarter, at because $XX.X the flow accounts resulted $X.X $XX.X in This to revenues. our EBITDA quarter year XX% end Saturday increased cash quarter.Fourth of

cash Our revenues.Please more reflect some percentage our of EBITDA turn conversion recent XX metrics. Slide flow a to adjusted rates debt lower of free review and to service

$X with paying. in costs Our rate debt of been little our from what This and declined Weighted to XX, 'XX metric basis since sequential adjusted fiscal comfort quarter line flat X.X%, million club to previously average of EBITDA at scheduled announced the XX, a to new range the primarily modification September increase to stayed adjusted a occupancy of quarter of to October X.Xx, X%.The relatively but unsecured due XX interest our specific. less XX in on XX. Xx. versus in than September level bit be Total maturity debt trailing to inched September was X.XX% have paydowns. to X% reflect up Debt line we debt debt, still comfort June be tables June continues third We our the our at relates acquisition XX% XX-month at debt.

continue As remain reasonable manageable. to see, our you and maturities can

In of we debt, XX leverage to million addition like.Please an October cash debt of real that position our pie if believe we can have chart. rescheduling our estate, we to XX% $XX and our for estimated our turn unencumbered we Slide unsecured

quarter. debt to Our And is it. composition the similar that's third

Eric. turn me let presentation back So, to over the

Eric Langan

we Everything our on to otherwise. Bradley. on shares X Please and We XX. cash capital approaches acquisitions, do per growth there's employ free flow Slide and than whether XX%. centered to is our more around subject to strategy. do allocation turn compelling Thanks, yield share buying organic different back is rationale Mergers

at end driving capital turn to XX% cash allocation All the -- shareholder We have allocation XX% free we the our done Slide to to flow XX. fiscal It with to least a struck XXXX. ] basis.[ by increasing very of have capital goal of our stuck share we compounded -- ultimate annual strategy worked of well. since on is since this stuck has strategy the value per Please

diluted ended basis for growth of adjusted annual to in XX.X% count share rates for time, and flow. We cash annual have have fully generated the compound EBITDA our XX.X% At for XX.X% same total revenues, we like X.X% for million includes more free earnings on the by fiscal than that also with 'XX, shares first compounded for retained $XXX used a and acquisitions.I'd mention we time. reduced

will all of plan. We Cabaret we do. and here's The we loyal for next first years opened teams are effort believe success its to the and be for shareholders make for for setting XX hard their to this be come. strong Rick's without future I the to XX all are demand to The can't Every actions what dedicated There up have our has We very place. continues stick here like a many ago. years. and for need the we of RCI. our bright financial us piece years our success who believe the taking is to thanks possible. special do to you.Now Mark. puzzle and just I'd We work believe

Mark Moran

[Operator shareholders. start to off, from some of take Instructions] Rick's analysts To like larger and things its then questions we'd

Granite of H.C. up Our Rob Research. of away. and Sidoti, Wainwright, X of are analysts Buck first. Anthony Scott Take it you're Scott,

Scott Buck

some here us quarter bit that what softer trends into traffic of kind of kind a little in of today? in spending trends the Eric, if you're quarter. fourth could some and have you dragged first of the Curious those clubs give the color on seeing more --

Eric Langan

psychological we called means know look about people recession the this drags, the are are little I The the numbers, this quarter. I've and mean, in that's especially finder, trends, into comps easier, watch I I yet, some collar still a first spending. ever we've all a blue say. for thing us the Well, a do. what as I'm to perfect that craziest tough becoming at not I seen. see I've crazy the but and It's seen trend of I financials it's easier.

think a think especially I but to We're last little seeing the -- bit, are it's little there lot up is tech of I unsure. in a loosening XX a is cautious layoffs spending, the days XX still people consumer, now.

where of where where for markets clubs some off clubs are but all clubs a -- or it.Our they're other higher-end but think is very well, more bit. higher-end to are in market spend clubs. a the cautious. The I the better they're doing spend So #X the doing we're spending, we They in the still time a little #X are want little #X -- clubs good very, that getting -- top own still they're in or guarantee

I I think see inidicative And that's that. trends. as kind trend, of as far of don't

last the crazy X-week longest X up, down few X past.However, up about seen enough compared trend I've I've really trend up, seeing I'm we I optimistic week for weeks. a think then down, to again week down. what X a may It's weeks And or forward. the that a very going for in then strength trend weeks is in and it's overall we're months the seen unusual

up -- that and sales a lows kind weeks of past, this seemed past I little bit of are kind holiday think us the to I think low party week. the be are picking

very area Saturday, I the York we to So, and having the was And night, New to were basketball week. some little a Tootsie's in in long by And get we bit. the is setting was the Football all especially now, that got this and Miami, week night because Miami line picking a seeing in booth up which Sunday, into Miami Friday packed, week. of down because then good the up is promising. right Monday for incredible, this of stuck was really really night.So, mean for -- have game that the Tootsie's heat storm, And Friday, big the Sunday. rooms clubs we were we course, on was good counter mean, Saturday numbers back. there, starting home with VIP to there I business. couldn't I up was us

is a we're new sluggish. how little a the with X the if going about everything we us X with stay excited even to 'XX our I have be very Bombshells, casinos, So plate forward, new for -- think X new the on things clubs, fantastic year going

Scott Buck

that And on of these timing you I'm color. are any give appreciate conversations? far sense I a curious Great. can potentially How with be announced? then, could when on kind some you Bombshells. And along us strategic something of of

Eric Langan

[indiscernible] we're had working Bradley we'll would some weigh a those on far the it's to all different I together give partial whether more days believe going more with.I'm and probably there we're the out to that what ideas a the find using to of several to I RCI. talking side and We're sale like the for a without we're to we ideas, for capital much all the we've to groups that a bit. have us ago mean out, we're building XX that different to starting a this, additional cash fits strategic And We're to of going out after couple some sure use mean, the with exploring little acquisition what best that talking of too right finish with going assets concept and long-term business with for January, do want we're it have capital we're a that own whether groups put build the start because same opportunities data for we're of to to the expansions has heat those now. opportunities together We've talk things. as to goals the as are some the to company right basically our little with think getting We've timing, of bit. making going for grow make we best us more explore I and and of about is our groups we really said, our out and buy think us I can now. the for of There some cash keep partnership, And time the people to the so say with got requests it's putting talking or think see company. acquisitions. casinos these And flow groups. just groups out it that these up we'll data I floated to would I is we at assets. straight requests, -- that been case.So

Scott Buck

layer And of think some revenue for appreciate Great. that. or you as need should in from we for significant how to Do leverage start spend I'm me. in then of add one start curious, next see have some one initiatives? operating growth OpEx last I year, really these significant some about you to those new to you the business? we should

Eric Langan

CapEx, I'm And about spend? about you CapEx are we're maintenance talking talking sorry. Or

Scott Buck

I'm of support back that talking office about sort heads adding thing. heads,

Eric Langan

don't add additional kind had to the was kind that you I going payroll We're think flat. -- Oh, anything. but from our of kind was of payroll, it we of I of mainly some is acquisition. mean see much -- we're

staffing office, far the that expense of in of don't adding business. the growth additional I As in part a as see lot

the department. growth overall much in faster growth the will I than think be that

Scott Buck

added the Appreciate color, guys. Super.

Mark Moran

Thank much Scott. very you for your questions,

of Anthony, Next take up we Anthony have it away. Sidoti.

Anthony Lebiedzinski

follow-up before. is regards a in heard this question collar previous first not I just on the first, blue the weakness, that the the time So to This in guess, clubs. we've

this think, had you ago. mentioned Eric, about probably a I year

of kind saw and your maybe as you So same blue you're of frame would collar? reference, kind previously is what just clubs blue you of a as like the of curious, clubs percentage group consider that of weakness seeing collar it

Eric Langan

have the the actually mean locations, I'd with have pickup would call to I truck it XX look it. actually crowd. -- I'd working I to crowd, through

is still expensive. expensive. but down, coming are prices gas those Energy are think still I

those still. So of things dealing some they're with

marketplace costs, as the December now just a far for spend. uncertainty see in I from here think a little and right watch November we of sales of some as the there's the forth. little there But and causing Bombshells their overall the and increasing so hesitation that's company to bit As I the

to and I I'm think think some we've with other that even going when It's bottom don't of very don't increase. that see October. loose September the of of bit seen -- in get optimistic a again.But are an the from going will their just, quarters -- to money ever there to people XXXX, be I it. know I I think we're little

to I think to existing costs. and we'll X% growth over go labor back for standard overtime long clubs our X% the normalizing rates definitely period

to and in being our more bring of to some we're So our margins where costs, need back hopefully be. they get to able line

Anthony Lebiedzinski

Understood.

curious, seeing across board? differences just for is same-store you sales just consistent in to it both or then reported out any notable you quarter are call Okay. the Anything the geographic the And that current just your and quarter?

Eric Langan

year. year $XX-plus-million example dream take did in we we ], market, real that, numbers that is million even look X mean, the at the ]. I It's [ was Tootsie's Miami the if problem. month, in been for in inconsistent numbers -- York Miami we XXXX, XXXX [ for has consistent. just think a $XX and at did mean, they're previous couldn't In X change what huge like, bit. market, down I We're next New the you in there. runs with everywhere I clubs the month But pretty off

days, in week.We're Wednesday whether bitcoin numbers a you, killing York, we're XXXX, taking Chicago. $XX the I doing, XXXX. processed, Thursday, of down if bitcoin million, numbers quests we requests up, up crypto we're So, to the for these which in Thursday is tell amount is from still working week not at which it. and Tootsie's, doing actually we're on a like but on bitcoin I dropped this think, on boosted But I'd in even probably $XXX,XXX week from an in getting other really We -- New is X incredible and considerable Wednesday this

if it little us. as So for be that's I bitcoin as strong going is, think nice stays a to boost

I everybody past deal, much us summer went was America, South especially think Europe, think Mexico on I'm be of this in optimistic, out is going than year, vacation because type this the to for last better Caribbean, country. June I that everyone one,

Our from entire that summer. go. that.I not this to going their Everybody to spend suffered out VIPs going think and spread our is over the vacations are year people

as X the many The of or they're like, weeks were because lot for couple they back crowdedness, or it's to of price and They gone weeks. to see of just They've expenses, wanted the I come or there spots, first about there. June the talked go gouging, they X when lines horrible." people. the complain people a "Oh, so exhibits museums tourist

summer more so is year, this to a And think kind be I going this summer. much realistic and of normal a

-- seeing consistency trend. going I quarter, and think the of And I it's just months. this like It's and think the a through a continue quarter, in kind I'm starting hard return of idea have was hangover it now there's of of forward, been expect that's and XXXX stuff. now and it in 'XX was trends real months. really going the just off for certainly weeks, X are weeks, right to mediocre not really very no consistent. next then is the if I And it the 'XX ending right we're of to we'll now, to has 'XX it, have in pre-COVID has X that people returning hoping an what party just hangover. last X, this that more big We'll to weeks, few 'XX a because And kind behavior the think and the case.I at normalized back think we're to I been rush least

So, kind of a hangover, like right.

Anthony Lebiedzinski

Right.

Eric Langan

we're Am I up and go am -- I I right and think get seeing. party now I what again to get tonight, that's going or sick out

Anthony Lebiedzinski

Got it.

then going operations. And also you changes implementing Can done so what should what to forward? expect improve you us talked more and to Okay. give about far you examples you've as some

Eric Langan

a little time and little bit we some more up-and-coming management guys. system, our promoted up Shaun oversight basically Kevlin, Ed's Sure. Dean management more, bringing regional up Well putting a Reardon through opened

With we're XX-plus And that the to experience. -- find basically of of lot seeing Assistant to secret as they're We're hired the markets, starting a Director we've changes. noticing. And -- Bombshells, very we made -- management I'm certain see things years an some of those Operations again in optimistic going and of results sauce normalize. multi-restaurant with some

during now not staff 'XX, making the to some 'XX we're and to up, exuberance having game really our that having of used the got them lazy. think money I of of some to hard. easy gotten have And as and members step work

think really we've bottom that, kind of the basics, in because your office, lots rebuild spending money. make are stepping problems lot got the to worker And we wake that's XX%, service, called to a people they've team And But, reason day, back now there, had to touch office.Our people. guys Hospitality is tables. the just of of think easy of back has their getting been don't It's our XX% I of great, hands are of some kind I XX% some people because like pretty the of I RCI and -- remote company. great, office our know, get club right? and on say, have your company. Holdings, restaurant, people up, to game.I from we've of to a in to lines. we're some because changes that. name had mean it And return a go a every up customer the hospitality that's but are there's our had there's who back There's we've kind shaking to mean I

And I think our to and those months. and our see you're our we ability through continue correcting the top to going that as in fixing we're that. numbers culture X to and move So, next attract forward X, talent

Anthony Lebiedzinski

Got you. you have well. labor costs down mentioned And I as think that also come

Eric Langan

It's getting easier, yes.

Anthony Lebiedzinski

Okay.

Eric Langan

they've I overtime fill to that's problem. of is for Yes, getting people. people mean, kitchen had best our the We're staff some because working another is in easier, down. hardest,

whack. So of out balance a little their work-life got

a on get and normalizing more of we've than that is getting everything is get normalized to growth back basics playing So -- And and standard we're hangover back get cycle The the getting -- business. just our field. just to now our got party over, synced everything over up. back just to the and back get

Anthony Lebiedzinski

Okay.

you high would get that to the operating get things as things you that to type Maybe peak back you levels you think historical can think year, of as had not normalize, like -- of normalize, So bounce can of the back kind margins? say do that XX%s, do I guess? you you that kind but last

Eric Langan

I free flow into XX%'s get can think definitely we on the conversion. cash

will EBITDA may free And bit. yes, be or little X will low XX%. our flow, back XX% that point XX% to normalized I plan. for definitely the get more X But, That's we definitely to closer that adjusted cash margins. be think we a think EBITDA I

Anthony Lebiedzinski

it. Got

Okay. sounds Best a happy of Well, plan. it like all. good luck holidays to and

Eric Langan

Thank Yeah. you.

Mark Moran

Thank you very much, Anthony.

Next up Rob, Granite floor yours. we McGuire Research. have is of the Rob

Robert McGuire

on the you starting Just Baby locations. Dolls Nightclubs, can the on elaborate

these you Are own. the give already more using locations talked us color? you X about assets expansions? can You And cloud the new

Eric Langan

Yes, get we basically have near license our the convert now to there. of approved Texas Abilene, are to going Tye, worked up -- liquor City with

has we So Mark a of we're off right old going that Jaguars IV of the West Baby into purchased to Worth. Dolls then, And the working original Dolls. property converting that's permits plan. We've our building Fort Northwest got in now. course, the And been be on Baby the

club X close Texas another to on there our So pretty location to the taking being of location, where Department been expand that play in kind by one while.And has Transportation build completed. a location for is of acres That getting we lost the the to a to bought spot. a freeway Lubbock course of had

permit well for well we're other of I waiting in couple and XXXX. a whatnot, in and the put get things to water here that the location opened think and we'll

are X the those we've the those So, clubs been that working X are on. --

Robert McGuire

locations? And I'm X Is Chicas Eric. have or Chicas that Locas in still I XXXX that, -- appreciate maybe to this effect missed plans Do or is you that a I of thing? expand curious, the your

Eric Langan

I It we Chicas about about to We're Wednesday was projects We've there Houston, Ed probably we going. doing but what originally type I things or of up well. focus I are a actually more. on sure there.In just XXX some on to there market It that people there, said we're talking think we in so Dallas now maybe night, Chicas, entertainers more got little second property night. a Right now, whether at time were the expand right incredible about, It's kind talking we're these bit he the doing be location was going there not to could possibly now with so going a -- XXXX. the extra X free we're not existing promoted could Wednesday the for do clubs.

VIP a there. the little so And room small is

new So putting taking room VIP room existing or building about we're expanding a maybe VIP maybe in more into talking -- a room VIP space. the additional and whole -- expanding club that

there.I talk to hopefully -- time also to discussions site so in get it's with we're of and We're and we to decisions that mess after year, do make know -- what on to kind what want well, well, some we're the really going has So it together when do visit the do going some there. of we also first want free that Ed need exactly so do and we there. there's

that the better a figure probably in going I So, we'll have those by out shortly XX, days. call, XX what the properties. of February next with idea do think we're Maybe to we'll

Robert McGuire

tomorrow, those long if you you open? staff to you get to could ramp a to And and point where Central take license to how then facilities shifting were it Theoretically, would City. a

Eric Langan

Six weeks. just It's the not staff.

up. We everything also to be to have has signed do testing,

It's our everything experienced a you process, weeks. the right. that. Director in guy and done has you approximately in is it's -- X as Colorado put we've get has several in told. our license very hired in-depth we're takes everything pretty up market. it that Management machines, Operations opened He what all And but Casino and Casino pretty definitely once of to and gets It's be your tested, your a So

with what He familiar exactly it. knows very he's So we need to do.

standard We and ready all and procedure operating go. have we'll our put procedure stuff, be full together, plan, to

at the until take early because license we least probably until March open if construction the end April. of we the However, today, would will be still or not April, got

Robert McGuire

Have your time with And casinos. I for then Got of you've us plate to you your got license regards third on property City, can it. with you kind one? a line a that the realize a Or that in X Okay. for third applied lot on Central give property though?

Eric Langan

Sure.

have it gaming again, license licensed We a to as for applied casino. have licenses the

that's with purchased I property or -- continuous additional contingent property. We that mean have

we buildings we off between to depending -- somewhere whatnot. the footage where don't think now we walls on the XX,XXX I I connect feet have know my XX, of -- So, exact the holes the top somewhere square and put the in and head, XXX square if

a X we be coming to else existing of could and entire have else the Street spaces last anyone in basically because We're the between first that the allows us existing lease and -- property. get corridor those the remain vacant some existing now. operations. that keep those actually with clauses a going third large build There to become But protect it's we competition -- that going We're to tenants in keep and there that we we our all with control party Street do our those there -- So to possibly want it property. landlord, Main able vacant what to other in and that existing unless if a we on that's very large open control a could Main our the also would so in very and go decide know open place, somebody casinos casino we -- busy. casinos are then we we would continues to basically put last right competing.So storefronts stay tenants there, are would --

Robert McGuire

question then is mean, their other to Central there parties casinos last Interesting. you are traffic That's are regards to of plans develop Central just increased Main mentioned, just as other to it City, I third sort with or for that there foot own And City? but my operators? Street, by

Eric Langan

with we There Black in X their love be some gaming could sold anywhere garages, I in those hotels, get be XX,XXX We XXX it, room mega-casinos you certainly it definitely is square hopeful sites fantastic Central that call will hope because of to City we'll lot and casino now, and think as Hawk properties casinos, built which at would think some area.I that XXth spots at and on will point, the properties with been the those X,XXX, welcome foot will feeder And of as build for square right those or properties see of operators so. type several it Vegas. top those in XX. are to into hotels, to from that parking up casinos I I bring I developers traffic the would XXX,XXX resort-type X,XXX foot move the Central country looking City. I'm to know to certainly Las and that casino to #X there's we think market a Denver point. that space, it would have is bring new XXX, area

X into drive up fly Denver go the vacation, minutes, the go where drive they hiking, that presence -- people development hour [Audio XX make then minutes we raffting, in of an to and If it's us winter lot ski in of a Main the Denver XX major stay just mountain resorts Street future get could go I white a it there's minutes, there's and for water summer in So within for X just with fishing, them skiing, hour, and Gap] think Las and fantastic and within fly on to them the there. X are Vegas. can main a opportunity

Mark Moran

Instruction] have Rob. we very away. Adam Wyden. Thank take [Operator up, Adam, First you much, it

Adam Wyden

me? hear all guys you Can

Eric Langan

Yes.

Adam Wyden

Okay.

of Generally if for your I out your mean, going sort you're this me, spending that on So and lot out, a analogy you're back think you and to you're hangover. super margins. you on I speaking, money of and coconut about an But tight, analogy, is what as just then figure water. after like night overtime. and crazy hangover sort got of doing like all labor

time sort it, And I product. expect Bombshells down, to them you've but doing you're the you of because if and inflation casinos there's relative about comps actually Now online. like that casinos are is source going sort of margin, margins. and now to has talk the belt mean, more mean, When like and time.But decline, through you I you got we weaker. of I about tighten margins up way down, sort think clubs you of come I your should to is you're the of coming lower do, modestly coming at over can initiatives increase been labor talk night the -tightening the up some least over talk can sort think to some would the about that, think what margin revenue recalibration. it's do of mean, average.

to you can on seen question. bit the aggregate in and go of rationalization the that about the trajectory casino trying of you're So, mean, I'm low little point average than how back of I I would about fixing you've perhaps that? sort high-margin just revenue, -- higher about margin what think see margin thinking a costs of think And and mix. already we the margins based adding historical in sort then would have context had.I I just even mean second a talk

Eric Langan

XX% going margin free I open depend acquisitions to these the as we're for When quarter. I this to we think cash changes on future with when margin obviously, concepts. refer XX%, up flow mean, to returning Yes, margins and is what back I

at for XX%. were the think year, I we

this to of by we that, seasonality it's you -- out February. And and quarter, more I the like out, normalized kind year figure the return here, June that get the talk in this we strange because by think mix, quarter XX-month got think.But is I a rest last hoping a the is seasonality. And to I'm -- horrible to period I'm barometer this single a -- not XXXX really I said, of I So, isn't much month of think this the seasonality. guys hoping strange have the quarter for a -- June I mean should

be partially second quarter. the We will through

So now I talking now suspect of February there pretty today's day now, I'm out what customers based are going to run a, in we'll going. have and on to Jan idea hearing New are decent the based and how what that right January Colorado, on Houston on a from pretty with February seeing to good XX-day be and York. Miami, guests.I've been I'm

spent to I've seen now be on we've a the versus I spent it. consensus of a And what seem time the talking lot more teams. entertainers. time our spent lot of lot so in I the in part spent to is summer. a And optimistic. guests. the talking worst talking right a Customers time is optimistic of the lot time of that they're they getting of staff seeing I of to definitely club, our more were And late what with seeing

So specials. things. that's changes in We've We've some changes adjusted said, made and we've We've certain changed there. of made very some promising.Like some personnel. here I We've things. our raised prices

what of of the type keep and and we specials of deal, a have our more week is to see Mondays solid. Wednesdays recession which typical in a starting to Our to become are do day

could on our things through are on the change depending we and mix to And as right we'll we pushing or we future, going happening projection be think far would those what higher. XX%, margins So do in XX% -- we think just I XX%, whether yes, of do.But what now. the what buy the be, keep as it's

Adam Wyden

that least when what at or use a I at, I you seeds, right, to my year, when deleverage, of year, know cash use call, was you to acquired this lot is, cash have but big look buyback you of your don't also sort And you. can't land. Right. basically on a plant if or mean the mentioned you this this sense I

sounds you're more probably you've all you more this you're carrying than year, it you because would bought debt land, carried so at debt And developing. carry this like or otherwise least

running at corresponding least higher both got from expense perspective, without of from of that sort and the sort You've P&L an higher OpEx OpEx and leverage revenue. through interest a

relative I as on free that that your margin an flow cash And sort would first of right? that flow because money $X I assets staffing, OpEx that, would at like $X free you've been And year. mean, right, without right the think so wasn't cash an basically think perspective, expense that that in on carrying to you're nonincome-producing for carrying example, like or perspective, there's would that's free that think been million, against line, and or revenue whatever.So But income-producing. -- Bombshells relative flow Bombshells from like I your been for least that 'XX sort that million, right? There's help also EBITDA 'XX, from up, opened, million, interest against income do because And both -- a to I could revenue add would you basically just would of $XX -- OpEx that, the cash -- corresponding margin you go it.

of sort expense this be 'XX, of mean, mismatch. in should of of sort right? income have you So sort that versus sort reversing I that

Eric Langan

I ] additional $X that can those of XXXX In cut estimate up, open less down can [ we you. to somewhere that revenue. I things million than would add quick kind and carrying million. a that example $X for XXXX hopefully, as half we costs and are between of

depending June, could I open. years. pretty similar very biggest So margins yes, to We have haven't could just processing the open. any April, don't a margins with open that when the in said don't issued point, to in We XX% maybe way X The at judge we when we're to why XX% in on comfortable state saying we we going And is open of is, getting XX% could back we're back license those when just September. casino -- problem it's will that's open -- applications?They overall [indiscernible] to know to we I'm 'XX. XXXX, those that

license think. they surely I get to issued, those would want So

Adam Wyden

Could you them know both liquor things don't restaurant bar, sort casino the how Bombshells you as waiting those longer, that open going? venues get open use sort the can up if in to the -- has mean for mean that as [ have stuff? just ahead mean, for I can if a license even taking while April basically be mean Or built, is buildings -- worked. of the club of is of I sort appropriate you're working entertainment sort you have But casino? wouldn't of and and them April, sports -- reason, locations of not you strip possibility the was ]? opened wait in then them things the you whatever venues the I I that it Or like the until I gaming

Eric Langan

whether I I'd operate wait to But club May, we're especially generating open place senseless at that. gaming whether like the start think of yes, the some just are at we're operations or until to we'll point, decisions those wait right? just open bleed, approved. stop sit getting property agenda, our and very, what that in built-out gaming gaming, just do ready depend I without with from well would June because our all with not. on the and to it go very revenue there becomes of guess kind licenses April, licenses for guess market. the and in gaming, our it other I'm going will I make with some point, side will mean to liquor feedback up on the of to And that be I

it's difficult. to us.It's for too definitely the get If the up and drive in prime get to though weather people into an and ends, But we the the something in unpredictable the to that's definitely just season in that's winter it's the So there option season want roads open or get winter. the the the if sense going the early very ends season skiing gauge after going harder when make move to and mountains we because summer wintertime, with to not.

the So rather I in open would summer. definitely

regard May take that's definite probably call, something we'll But we'll have into So by place. to that most in question. that something [ the answer ]

Adam Wyden

done But construction through should be the god-willing April.

commission the a there gaming right? have could construction mean like can you're things quickly that is that So open control. is you or right, these I April if moves May, -- part because moving, you shot by that your

Eric Langan

optimistic. is May April, think I

we being I I XXXX. you my to July think of for more in That's I I process. thought kind first got license November open remember, pessimistic. August, September mean realistic. we got the is of think is And XXXX. think do probably June, could

XX or So right it's -- months months going over with XX XX.X been now. on about months

and I to we So the where when XX licenses by that idea get you when May a approved have of we're going we at to I get hope would to talking you when May, those months, you're -- mean are definite latest. get

Adam Wyden

the They you city want Right. they you revenue they've And money. the want I all behind bonds the rest. there. got is and mean, because

that So is everybody it's not you anyone board. like is against on working

Eric Langan

there was is Clark I the only the working at giving room against heard we If Travis for haven't missed of end the the are, City had know us, the was perfect other I've than he the day we the year. room the in I city year to one go the positive. who that in I that. don't one other when think speech, the been anybody was X. attendance council anything they only hasn't very meeting. missed It's Travis and any. like every

meeting. at So every had somebody we've

in online, there. a son made city negative are not of city's last $XXX,XXX the up meeting moved about is are We're can you to in yes, that that town. in We're town. meeting. the you He's We meetings see We're can City very And some made venues, town. town. My watch the investments tax but committed our personal has very the success itself. was other there. budget I some city in active that that the revenue. for needs budget Central -- The investments and the investments And XXXX. making just

Gaming be and of is the vacant. these city.We going getting of of to that as these up issued as have early very Department need us the XX% and licenses, casinos State Colorado -- this city operating fronts in other Central to store process well applied City aren't and open so that to get the important so X that licenses licenses for get And very, the

Adam Wyden

my and mean Noble, Noble I looking was ago. Good. results, guess going summers this not at say At would at question. be I back X I is summer Last I'd notes, it guess summer, I last last

was I July 'XX. think it

obviously, You capital owners was the talked RCI of your question is allocated year. are god allocate There's million death, for I -- we add of since I Can because of guess and other wounded. a you that $XX a of man acquisition. the of $XXX I haven't a M&A sort getting guess million And $XX you years. X competitors year. years. of announced months to -- over EBITDA, Can get we really sort year million sort X small plans -- the businesses sort $XXX million the the next is. about pipeline can about looks what one not what's the now... sort and been sort plan you XDs, a any on. XX how million right? think think, regardless of is to million back going forget $XX So of allocation $XX joke added But EBITDA, the this an laughs, goal, XDs it's year of have how talk even you [ your of And sort of normal ] that I have divorce, or cadence would million, And about is $XX to of and talk $XX X a sell the I million, the about

Eric Langan

March. $XX.X when XX anything added major back the only to months for say a closed us. those We back. people of one, Well, do about days. had close wait people called We're else. looking been list that we before in be going on X a calling a million acquisition, We we long fair. March, we're We We've market acquisition big in a to we always

head Xx about have because think XXXX was us numbers. to numbers now people bought Birch those they're right at we increased sell at all that they [ unrealistic the numbers. incredible when their -- in X.X valuation know Some X.Xx year. We ] an excuse to going their me, XXXX We've clubs

bring markets. talking at "Well, look I'll at XX% right happen." current we're numbers, Xx about XX% want it, to you but to want we're probably want or if to your you at I to now.If in and we're we'll that, around to XXXX you want coming looking for current. to So buy look going I at in get because be -- numbers. to said, are to mean I'll down matter or That's And XX% Xx Xx, a I even are, you they're but in, us. decline of those want 'XX Xx And my those is it's there's on Xx your up you the going them we from well, -- And XX% Xx Xx come no be around can pay pay going was not I much XX% you operators going I talked if do Well, Xx down pay numbers. down less I about right those numbers. that's How now. reality overall. [indiscernible] based I've it numbers, to to how than good on XX%, what certain to seeing so we're like,

Christmas trails months. getting so it's allocation guy the It's it going But going day move Unfortunately, It's with us. once we're the yes, up to next couple sometimes, then I but But aggressive if to for strategy, if some we're have going going purchase I and of the wouldn't doesn't consistent they're to them. day, long wait. kind just mean acquisitions we and where things we I to a sell work, want right capital And pretty changes, more end locations.So they changes, we don't I reestablished at guys at little company. than like announced we close we've sell And wait think just the in at overpay. we I forward, some we're in have because be to to if then coming right to feedback is know I then the longer may think us, to now. or math expect in to couple we're next that math, I if -- it We're now wouldn't obviously, surprised not what go all I to starts, aggressive. has best of few looking going can the fifth weeks, when it, several don't the do are get now be stuff we'd multiple, that's pick. right The the get with looking overpay few and line, we once of more other the anything opportunities in next And I work. fall I to And to. we're if at. of the different grade so up, a think a that where positive to more don't we're we market end the don't want of

we do. what [indiscernible] So

Adam Wyden

like, would and from can and for equity, like your something worth. can so building, you sold don't to sell know, it's I strip alternative Because you And the you you we you sell right? if need I mean but right? manager. Can can Is you So through I a club.And right, click what coming It's to be scenario double other of this, about -- X.Xx that's because you I down, really the building had your cap he there? equivalent and can idea look, EBITDA at for or to or of can the you club go also club can like manager, that's pay $X that. strip as the does club, EBITDA, of seller you I -- are and million, people like $XX $X I is the there's like $XX mean, own let's I'm strip X.Xx someone club, take million or what manager, we've that sales, the $X club, Xx the think sell rent a the million, is, the right?" for a a It's that sell you but something, going a could about still say where more it in [ seller, right, only $XXX,XXX you to, at estate. million ] think going right? mean a That of it is talked which or EBITDA statement that's options, $XX building the see for flow million, $X or right, the even but pass selling try is your you you're okay, right? X your you but and like And club. strip the so operate don't like a it, something. for then were to cash but lose million it's like something like know like able real building, and million $X right? clubs willing But you That's to on million they you don't the you important person finance yes, estate have strip the for here's really interest when $XX $XX buy own like be sellers, these is who's paying if think raise buying you and million. strip million about to else buying "Hey, hear like, real than this, the I and or all and building it I last rates just the like strip have A, unrealistic for

So it's like for like... -- don't I me

Eric Langan

running incredible of And We're that Future real real estate some that's value. transactions. these in development That's appraisals. got has why up we deal. picking the clubs. keep we just the buying I estate we're why mean,

We cash the of process now right cash can together much out to get. a putting So we're in we how see want loan.

So that we them for. we cash now. We're that right had purchased the paid getting properties appraised all all we

to moves can we the pull we're in so January, want serious figure acquisitions. looking fast. And $XX-plus we million at in everything cash since pretty make like go can out to So early some property. we have Playmates ready We

for came $X.X $X $X I back million came it. waiting just for ]. million.We're We even casino 'XX come gotten we've much in. properties at than at and and appraisal just million But and basically, early 'XX. X in are think we that we as paid for change so back for bought deals the properties the Scarlett's higher paid The in what we paid those building, the all appraisals 'XX far [ the in

a we was and in the need want to when it an $XX appraised million $XX property move to out loan we pull million $XX.X that York I came of New million, pull had so to optimistic very back pull million and it's back the I'm appraisal bad value we $X.X cash in out property XXXX about because a think. COVID. total existing and So It's appraisal at the

$X cash own So able out only the we about only of pull We're $X million building. to million.

able new $XX million out think to the it. about I $XX -- going comes be million we're in, pull appraisal presumably of about to when

property So new we'll $X loans. extra that refinancing into and an it take York by up the million New pulling

weighing we're So right all these things now.

sorting have it. hearing, acquisitions really we'll options to and need is of much available on said, find us, do pieces. the to We're a There's I'm everybody right So It's shareholders right?Everything our at right to to things the get puzzle. different just listened look we're actually capital repeat. price, kind what simple.I've about us and our doing, to cash Like out there. We're less All on so it's put to through to we you now. is do going have right I for capital doing and keep club strategy, the more keep rinse, work, returns allocation cash guys build continue wash, and Bombshells. options

to away, they I've our I ourselves space. can there them of they with won't look grow beauty And explore really And rid to I opportunities concept will there to in I in Bombshells it see want through at X it from a what it, don't as faster some been the it I we've think smart give to away some it how know, smart talked really out going they don't about we're value. but it going done growth accelerate figure margins, and part money that's we'll and ourselves. of to are talking the -- understand, our months, I shareholders stuff, of to and a reap to big out, and we've it's infinite than part cash-on-cash positive we've pretty to but it. we're get other there. pace strategic little but of is it business I And okay, people said, believe feedback it. give that They to may we the the pretty how we grow have if done, we're capital it cash people a with making we're figure much for I it. it getting and X, so just but off our The restaurant that through out out put take share may of very it, people's some on other like And Bombshells take people.Sure, will returns, of risk

figure always listen me learning, me time always So It I those takes digest. it I'm to you to are -- I'm but listening. do out getting method there. but think don't the are things takes listen, Adam, just and we're what know to I best and I -- sometimes, these do time

So there you go.

Mark Moran

to questions, hand to to questions Adam. raise I'd your in encourage and much please for audience you you your so Thank front. the we'll Fantastic. the with like anyone bring

Next on Please Hey, are Wealth. I it mute. think take away. we have Orchid up, you Wealth, Orchid

Eric Langan

Jason? still, muted you Are

Unknown Analyst

it. You got about now? now? me Got How

Mark Moran

got you. sir. Yes I

Unknown Analyst

money more get and Colorado it will think much How you up to going? take guys

Eric Langan

Once open. on again when depends we

Unknown Analyst

got now? I right much How you in? I much think yourself I this to But mean need? Yes. what more just do do

Eric Langan

-- I we're on I'm we going depending things. April, between we're put or to all, going a few be $X another spend and -- to going in machines put and million $XX we're million, to on other think $X put going so in, about probably All to now do could what million.

of I buying but some some that's think all of we're our the including that relationships got million, because new vendors these I we is think, in. over He's about $XX million, $XX companies. brought our and machines or manager great budget, ops guy with

machines We've terms have to got him. casino.So had same available after neat but starting before the only monthly we're start we some start does paying until to pretty us maybe and pretty some us and get making or we XX good pay so deals for them. XX open the to we And months already we as cash, for it for have we and to -- hired deals are money didn't months, that

new new trust operator, as they As operators much. don't a

market. in do companies stronger much He's good do that it. about they in market. that So But they known a very casino -- him. very these are well operator know He's

-- so very April, like from nice optimistic to question And $X about million offers million companies to these that, May, answer I we're said, some $X getting of million guess. now between $X is your some my and and I'm

Unknown Analyst

Okay. you to guys don't resubmit And get it one. properties, for just to each X you then license, all your clarify, applies to when have

Eric Langan

they may all but Gaming, that license some understanding licenses We've be The source. can't X. the the that. already have Department that same operators, will it's believe approve X be coming X, I not submitted of we're the Colorado is the [indiscernible] if for but have my they live that call actual, once is be all all same go approve the individual. the I the XXX% I'm all approved, company, same so sure let's capital there formalities. of one, it approved, But from

all the their all to So setup, and all to procedures, operating their walk inspections. through each has casino testing, do they have do all their

understanding for actually if be you You have same go those get to pass actual then the live. for independent all approval Those will should to all think I'm processes sure. all correctly. to X be it But that, the the start at time, I

Unknown Analyst

agreements for your license, you get talking you about? when that then people guys you looking And online have partnership already were are the Okay. that

Eric Langan

we We with groups. talking different do, been have and

-- they think another takes license issue their license I issued XX to because everything then application, for obviously, do going them be being -- contingent it the have we'll is we that. on to then takes days to have have which a

Unknown Analyst

another like to not it's get it's But X application, going be their months. Okay. they

Eric Langan

not should be. It

Unknown Analyst

Okay.

Eric Langan

of Department Gaming, to up to the it's it's up But not me.

Unknown Analyst

Right.

from Okay. They've anything somewhere. haven't else. and on interviews heard all you come haven't completed their to a back desk just it's right? and wanted So anything The and you stuff them, sitting gaming people

Eric Langan

I'm sorry.

Unknown Analyst

said -- I

Eric Langan

[indiscernible]

Unknown Analyst

anything said done I haven't your come back to the for they is -- else. interviews. They've you

You've given them all your...

Eric Langan

They From dumps, data moving what is back good. with That January the what given they -- starts have come times multiple know which I understand, forward. multiple we've means us call inspections. early processes we on-site

going and some will they be current visiting our So locations. of

We no which clue have ones.

go, they'll that have We no And January. clue we when early what but will start in know believe is. I budget the

they it's we I have provide to to spend because had know So [indiscernible] money it.

Unknown Analyst

Got it.

to them you. You investigate pay

Eric Langan

think have expect And on everything do can do funds, quickly limits back that But that because rules go to which them. and what for will do. relatively look the there's in they site is that. I once whole But basically, investigation done. point, get the inspections, be additional them the ask else I I I they I to Yes. don't I they know before at are. to think think it

be want to issues. suspect any that into site there'll something So doing real the find don't I look while unless they inspections, other they

Unknown Analyst

question the an partnership, then Okay. my typically for on now some And agreement of stuff share? work? do does these when ] you based online revenue cash [ is How guys that give upfront last just or you

Eric Langan

more a Both. the if They percentage. is than then minimums us percentage us take is minimum cash and They we the give percentage. upfront. minimum guaranteed more us and guaranteed percentage, guaranteed to give they give the it's if And -- take going the we're the

Unknown Analyst

-- a places pair the like in the pay XX-year for from investment partnership online could for share? almost So with way, weird you these entire that this you over revenue theoretically period may whoever a

Eric Langan

yes. Typically,

Unknown Analyst

Okay.

So is for just is going like the all how intents you're and back. to get quickly purposes, your this money question

everything get can partner back the back years the revenue machines it you -- You're with or and else, online in XX from going into. from to it get an

Eric Langan

out the business against wants Unlike casino they business. the in strip model that buildings everybody borrow and of a there's can don't -- borrow Could pull that's be, flow. and there do can against how cash much because once question, your club, to right? of queue to I borrow how companies. actually loan you to anybody the mean winning. -- And is the would yes. we I much out we're independent operating, actual and hand, because it's get big the all like used then Everybody a it, casino raise Well, can you Okay. business that's able we totally and mean the of getting lenders open the else ask mean casino lot can when against to to please machines, cash I in money you you're you will different. is If here. they be borrow

Mark Moran

the Adam, bring audience you're Hey, out please questions, in it else and Adam. if there Adam, you to raise with hand, will there's your the up anyone we and away. back front. take

You on mute. you mute. are on Wyden, are Mr.

you'd to with feel Adviser yourself? and Adviser, to to Payments away Payments payments you are If your it like going up can unmute free unmute now. question. We chat. Payments take please bring

Unknown Analyst

your could hoping I building essentially earnings couple of breakdown. I've what on services processing RCI. and we're have pay there can out. think guys and it and you it -- posted just a $X.XX X% of last offer whole Appreciate share wholesale you all call I months, kind a costs I distance the a chance payments the from wondering. been I interchange watching to can to guys my I the do. essentially you're just to per wanted want I essentially way to buybacks. basically reduce you just I over love for that everything find a really paydown, expansion, you just Essentially, you transaction eliminate just guys to guys. was towards to processor, we pay debt apply

Eric Langan

that. to you who person handles Yes. travis@rcihh.com. I mean, would e-mail I'm I the tell not

Unknown Analyst

Perfect.

Eric Langan

run he if I out see basically I it and does our at know be competitive process makes to when credit know year happy we'd a send don't a we so look does he sense. cards, least bidding but We once it once year. this take a at or it and

Unknown Analyst

Eric. Thanks, Okay.

travis@rcihh.com. it's So

Eric Langan

Yes.

members stuff there. his rcihh.com can find to you I can't website, you think go and on if So the all it, are just our and e-mail click contact Board

Mark Moran

Eric you and who this to afternoon. so much everyone as asked Thank Bradley a as question well

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RCI Hospitality (RICK) 14 Dec 232023 Q4 Earnings call transcript