RICK - Earnings call transcript Q2 2024 | RCI Hospitality Holdings, Inc.

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Mark Moran

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

Eric Langan

Thank you, Mark, and thanks, everyone, for joining us today. Please turn to Slide 6. Despite the uncertain economy, the core strength of our business enabled us to generate $72.3 million in revenue in the second quarter compared to $71.5 million last year.

$X.XX the noncash expectations. high of totaled non-GAAP EPS near $X.XX end GAAP primarily impairment, reflected EPS While of analyst nightclub last million compared $XX.X segment in The 'XX XQ in with year. revenue million $XX generated Separately, quarter resulting better steady segment, improve in began the a sales sequential in effort on to Bombshells mid-February margins basis. and turn Slide X. to Please

to company. business, allocation To new new potential strategy, planned efforts are concentrating These doing the we on our also subsequent to $XX locations end, upgrading cash and are following We core and developments. committed end stock. our continue the nightclub make million our project back progress further our existing loan. the we this, capital closing quarter, evaluating increased ones bank buying to on of In with developing acquisitions that position grow our to focused by

Now here our on is results. Bradley details to more into go

Bradley Chhay

X segment. to Nightclubs to turn our Please Eric. Slide Thanks, review

Second million food, was quarter of in revenues increased $X.X and to same-store type, offset in By other alcoholic sales XX.X% from X.X%. million $X.X by revenue which increase a increased beverages declines million transition. and and This partially due primarily clubs acquisitions, from XX.X% $X.X million year-over-year. $X.X

reflected However, sales acquired food clubs revenues. service declined service higher and due sales declined X.X%. sales The mix same-store and alcohol from newly to lower

a closed the liquor quarter until Club in call, El early start sales Liquor Club. temporarily during Lubbock, As until A late club Baby our quarter Locas not into in to PT's club Centerfold April. in we open second the in open reformatting the mentioned a new Dolls Paso Chicas didn't they're BYOB reformatted quarter. Abilene,

resulted other in during basis, an the a talk rainy hospitality number days about or companies. severe that to did of close Impairment clubs million was or income had for million as operating partially it compared Bombshells fully tax wage impact or have reflected to XX.X% Although of in and non-GAAP primarily $X Texas or call, $XX inflation. operating million palpartially and it Texas decline margin and sales income $XX.X or million compared revenues period. to had patron [indiscernible]revenues, in closed for insurance January non-GAAP increase we We $XX.X and higher $XX.X revenues didn't on The cold XX.X%. million in weather of a On XX.X%. lower of

the quarter. is of ago higher received because refund insurance reasons why is we a the in One year

with Barch continued mid-March please perform Now in turn Duncan the Slide open. XXXX. the We fifth finished and well. remodeling acquisition The in X. X XXXX to acquisition has in closed clubs on to We mid-June club opened

a basis. and were or approximately same-store of XXX 'XX primarily basis, grown level and decline XXXX. million credit XX.X%. a Revenues marketing operating Locations quarter, fiscal million XX.X% increased more XX.X%. The partially On year points. increase GAAP XX a which million however, revenues On segment. margin ago lower X.X% which same-store in have million sales. our or XXX new offset This or non-GAAP first million income $X.X transactions, expanded has of year-over-year. XXX card by started to on turn operating of management September acquired the Please expanded from basis third full second review reflected revenues Operating purchasing million and to from $X.X operating $X.X million management points and or to a from was income compared decline basis was revenues compared sales in tax, quarter, and and margin As quarter Bombshells a locations. $X.X to or sequential reduced revenues profitability benefited have and $X.X Slide year-over-year acquisition, post reflected in increase was $X.X of a $X.X declined in non-GAAP effective primarily patron basis, methods, RCI X.X% the costs

upper the effort earlier, in As sports the to mid-February management mentioned results. a return reflected This brand to to focus this improve bar. Eric began by on its being core

changes to a make the back increase Some $X.X management, Corporate included others. touching staff million, basis, cutting On cost $X.X and attentive turn wait basis. a million replacing to sure expenses Please key totaled going tables, expenses Slide is XX. among non-GAAP corporate recently the of of the operations basics, on and an million, acquired Burch from $X.X acquisition, billing. and Duncan an with casino and primarily projects results million. new and more increase accounting of clubs professional due Both timing along to $X.X totaled GAAP the level non-GAAP reflected preopening management services GAAP

on puts together expenses This Slide to Please a turn on sequential XX. basis, turn $X.X quarter declined consolidated Please to Slide XX. basis. a Now income segment operating million.

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

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

remain turn as million The at to Occupancy of X.XXx XX% higher up of reflect reasonable and inched adjusted XX% our weighted quarter in Slide Second to XX a XX X.XX%. just pie from continue review conversion and we million Debt less and flow and $XX.X fact due $X.X EBITDA sequential EBITDA, debt Recent bit, open basis. continues to to were both interest revenues. XX-month lower reflect for scheduled generating debt paydowns. of flow than average Debt Please to At Slide they declined a projects developing or but improve. occupancy should service rate turn rates at metrics. be a comfort and manageable. we costs. EBITDA Please adjusted chart. of on costs as percentage $X.X cash March X% costs maturities quarter EBITDA begin Adjusted metrics to XX to of remained number of December free Total level our or combination cash revenues. was of debt our EBITDA XX free debt-to-trailing and revenue the adjusted million decline that revenue the X. was

The pay as to slices our of remain quarter. continue of all same percentage the first down We the the share debt. difference license largely

Eric the As completed we $XX cash our mentioned, bank loan. subsequent to quarter, out million

back to turn Now let Eric. me the presentation

Eric Langan

myself strategy. Bradley. rationale do acquisitions, turn to you, mergers Thank buying growth approaches want Slide do club is flow when to free XXXX. reiterate This has that underperforming XX. -- subject centered we several allocation on currently some caused want yield than the organic to employ rebrand please shares cash nonincome starting teams Bombshells on are share Mainly X in am have XX%. is compelling I everything I'm mid-February, to and question to everything sorry, different did our capital Since assets. otherwise. us reiterate is there to refocusing around locations, We to whether our and I evaluating and we more like I back in per our we and of

allocation probably our sure to our the we performance complacent our getting XX. are those strategy. for and on focus little cobidtimes We others. the a Please members ensure our great capital from turn are removing during ROI throughout are times had return I and basics reviews or easy, to members making when performance believe of must Slide fixing team we operations post We we and are awarding doing

We new continue to with X progress make call. our April since projects

club Show is Dallas renamed We Club. Liquor this have received liquor Dallas, and Harlingen, in our a repositioned XTC club, as the of which this into We quarter. BYOB our Chicas being should for license open Texas for liquor conversion license received Locas planned

we gaining Central our to Steakhouse fourth to open Slide quarter. We for since Please free of flow. By the Rick's adjusted our without XX.X% end total growth capital fiscal also rates plans farmed in and of City generated revenues, EBITDA XX.X% cash have our up annual XX. for to compound XX.X% allocation for sticking Cabaret in XXXX, turn

and for their share our dedicated efforts work us shares fully say We our also even thanks our local all for count teams success I'd and possible. like after in hard believe who reduced to and to diluted issued shareholders our all acquisitions. and make

session. Mark here's Q&A start the Now to

Mark Moran

things of To Thank Rick's shareholders. we'd you, analysts [Operator largest some Instructions] Eric, questions like its from and take then off, to start in Bradley.

First up, we have Wainwright. Scott Buck of HC

Scott Buck

give apologies it, you but the Bradley, on other charges a could color statement little in I the in this quarter? income if increase what missed was

Bradley Chhay

You're of $X talking about million had the impairment. impairment worth We charge.

Scott Buck

or up was quarter seeing ago, the bit curious we hoping it And call The right. a it. has you there? if update of a on to there's a what don't announcing of get I could something. appreciate -- All situation close guys were I just sounded then Okay. changed M&A. hold like I remember Kind that. an if

Eric Langan

LOIs. Bradley. Basically, take X I'll Yes, that, had we

have time. moment very due kind one potential or the indemnification going one forward the to is of it's wouldn't at to negotiation of the that the know at and the I move require liabilities company the told seller. clauses of and We unknown would don't I if other promising. that's in lock a say not this

think We are people it looking buy anyone. at one going because us will eventually, as out come to now figure known though. right these from and liabilities no And to well, back is acquisitions I several other

bought market, way the corporation to order in their that unfortunately, keep that license going to be the they're have in to valid. figure So out. to And particular works existing the has licensing

reasonable. we'll if point getting And say more you're looking So that around other see sellers at the locations country. I here, on. I'd I'm think one at some are goes

out Now whatnot. we worked carry just with of got the and to and of terms cash some get notes

So shortly. we'll figure that out

Scott Buck

I first Eric. guessing quarter give That's or trends mean, anyway. about second second on the if we're a I it quarter update calendar Great. the little Curious probably could first seeing. through quarter you quarter? halfway calendar wondering, helpful, was looks similar you're the to us I'm fairly second, now, the And

Eric Langan

that March important April January, which the quarter. need Well, to to me, be sequentially up May very was beat on can a now and so beat we to our then February June numbers we Yes.

are being our but traveling that customers you all that from of that now. now. don't there, a and games in those Colorado some have we week NBA in was X right markets X We've should The lot modes right first example, out follow May great got markets, of NHL teams for you well. do, know know very for teams I if sports, our playoff to

the stars have Avalanche. playing Dallas We the

in which is getting for we're Dallas Colorado fans and in Colorado, So us. Dallas fans great

as clubs both well as Denver Colorado and Minnesota. have We Timberwolves, Nuggets in and the markets the in plan

well So our both are NHL basically the NBA. doing the Colorado from very locations and

And have as it's you Mavericks the Dallas so well. because

the in. and the are both So mix ranges

hockey And have York New course, the get for basketball been great down well. we has York, we as which of and in So Panthers in New then Florida.

sports lineup. through weakest year, weekend was the weekend basically solid very one we and of we quarter. weekend, all, the weak Last year, of affect between all way in that the believe. have Mother's much Day think Mother's should all Monday, have I So starting tonight basketball basically will X Day games very This because hockey better us I

that. about excited very So

Scott Buck

last, Great. That's can Central helpful. City, timing would then on us give any helpful. in And update if there's be you that

Eric Langan

do than just timing club Other going do can this the to get in unknown. open Well, to we're is everything quarter. we

at take today. So and with will energy and allocation, a that If core even better where in of there, divest continue up in very us the and withdrawing Rick's paying some as that what calculating us doing and where to When decision to refocus I and the for now time would evaluating so, get a may that whether that up license made. investigation been probably last point properties, gave money lot understanding casino third and the at money time some a just this location not obviously, we're I'm back I a money that end we'll investigation property or on focus of our are X there's the out, quarter. of that's on want, we'll gotten from we'll operations information a math and have move the but and the we'll club going business. the time, gaming, all actually very I've line line to basically coming evaluating this continue opened has we instead our the our on the large long right But a party want they've currently new we focus at or we Steakhouse or we're news amount through just week our with a line don't in of instead we of time capital be so, and know And know this all lot they requested new from keep waiting of we forward. of that's all or gaming where have back information steakhouse with yet.

Scott Buck

the appreciate I there. transparency

Mark Moran

have Next of up, Anthony we Sidoti.

Anthony Lebiedzinski

far as services more share revenue down this you improve proportion as strategy Can mix? first, is regards the So your a to X%. of were decline? And a what quarter, details over little revenue as your services your in to

Eric Langan

nail it's the the on in it for About head and aware people million and of new can Dallas, are Dallas right as are ordinances, city you. $X.X litigation. current some some I pass XTC

revenue a.m. close to was That us of the club club. X most X:XX. hours and a Forcing after-hours Did X its at major between of

liquor in. our the rebranded that Club Show to of have now We in process or Dallas license the

will been night a as of conversion Dallas converted the bits think but offsets. there's service we will it is, were There Obviously, That's Miami's most a We open. are little little other Minnesota year. they we're much liquor. And higher New like in declining York clubs. I BYOB it. we of are from The And of a and then are operations, there's some markets major and The the into than there. stories X and of success close of and XTC that Miami part those of have it. rest we clubs was the revenues this majority that's happen here much, big course, part have the year -- last as continued rest the

Anthony Lebiedzinski

were then and sustainable? the margin And -- the that drove the main Bombshells do you gains sequential think what factors that's at

Eric Langan

the very with it's of put that time Bombshells selling basis. to point, asset, that operating prove outright, this Well, would to whether my work $XX to will revenue we we in numbers. assets we us once us $X it million it's goal selling it's the strategic is on process return whether which bringing part partners to options the with expand or a at of an million in partnership, whether assets return probably can XX% with about at At income margins, hard annualized those

X-month from now, hope least I so. I think that's a at process

a and much as margins drinking it not that maybe little because the difficult issues, earlier. it of Yes, are are I -- that we part will just XX% of think much. is been being have more the believe other has while doable management The revenues as economy people it's not part I spending the and corrected.

management team. changes. made out about is I of be we're We've think changed direction. we've some cost. the And think major that we hiring. our club the need right in that the and for, We've get lowered the lot the some find part of bringing people to been are head in still people in right spots excited to but And motivated doing or concept I that X definitely stores We our in we've markets. certain have teams certain a certain

Anthony Lebiedzinski

Okay. of in number pipeline. And the then you also projects have fed a

So Rick's and Steak... looking as to Cabaret the open you're

Mark Moran

on mute. you're Anthony,

Anthony Lebiedzinski

Okay.

have more started guys I of just pipeline, projects so number Central as saying, the the plans quite wanted a So on the location. for to City a I but in focus you

are you Cabaret gaming. there Steakhouse XQ, even planning to open Rick's is So the no in if

to contribute revenue could gaming if So how about but uncertainty that. and just get we running? about is go ahead? speaking, there, what should the contribution there you that, do revenue that should we then know up you think hypothetically I once And how think with that's if

Eric Langan

that year a out million $X can which we about days clientele We entertainer between million focus to to XX% annually at our have run $XX grow and per is of open would we opened club think -- all was our to week annual. it. as million I on I $X range, itself, base week in and our can the anymore. days about I'm club think at the that We gaming $X in up the XX% start not make week, somewhere a only opening I market, $XXX,XXX up margins. about margins. I base the My million X build and a we like thought X

the gaming, makes to So that's see us months my without we're company. as right of from things said, the sense Central I being X a XX approval. a weighing sense for that There what denial with applied told, what I'm now they're now. that or can away minimum. or licenses X-year I to with doesn't other have X we're a crossing years been Like lot now in City tell at are focus make mark right you for

much our information got probably -- going X we the that's change. And everything weigh the we've We're the months and new -- under better coming not these what Dallas think just relevant are some rebrand can assets anything X action, And open and so. getting a in XX will know. well What know X maybe really And It's so it. that or think face a we of last case don't or material to that do do cheapest earnings said, next to this branded in years be just We're market and did we underperforming of BYOB so that if to -- within years I away, of BYOB locations plan and we XX some to that -- we months. in I ahead will lot we'll so it's Chicos they the know with and just X steakhouse some I everyone in going to away last loss we're have weeks, of concept. like year, what next very of the of to and continue plan like club let will to going obviously, we're or underperforming, out we is do the weeks, on we in the the year there. we me, the in week is focus the don't it's

So our that's kind is. of focus where

us assets. thing think brought the cap really focus Bombshells What for are say close to I happy think that's going clubs we why last now be about quarter fiscal got believe, microscope management had this to on is we existing I -- And first in seen as as to to you've the I that putting as going change. big team, we've to to don't to lock online the and what X back year. forward year by upper we've know. months that got as well, I end being this the that's end We've I'll really Bombshells coming rebrand to the move especially focus our well I I we're 'XX. really one the of mean doing? is a increase of station X.X the sometime guess X of it's

X to think simply, drag. focused X.X%, interest it's -- forever, great much. I take open. too got that it I I rates cost a I -- forever, this building much it's and theory, was the the because get taking the carrying had drag. get adding extra us much these guess we so broke are I I money, costs just when we forever was mean, that get versus and X become think we've track. to much. But build time, governments we We've take right very West got ROI now it the And have quicker get trying well on can inspections it's permits and Dolls for now Baby locations. We've of didn't to but corporate location just working, new systems acquisitions X% were to think more from mean rid it the months' put months rates X.X% X%, then no interest

to have reevaluate that. we so And

in we're us do the We lined And of math run the into quick and to all running rest months, these I doing, X out in everything through next track fiscal great and this all have you'll of XXXX. have we plan -- go process And over quarter. to have that's everything the to see on us gets back again. what which the

Anthony Lebiedzinski

Got it.

so you Okay. as get to I sales clubs, some after that then a the rebrand And in of you the will rebranding? lift expectation such what's as you mean, do your

Eric Langan

be some Liquor we've be can the but assuming some may clubs clubs better higher. have those that about rate the only we revenues higher, bottom liquor obviously, to are run converted enough get but we'll more also the the margin sales -- tend margins. ran obviously, should The one total high same, tend far. BYOB because I'm so run, in club really to We've clubs. line models,

to and get So -- that you of I'll [indiscernible] in the Paso that's give as last now Dallas course call. probably converted been FCC more El do of we Harlingen next the the and be we the into as as color week, on able

Mark Moran

we're up, Next McGuire Granite of Rob have to going Research.

Robert McGuire

what's or in discussed liquor a with what club, happen So avoiding Eric, you do move you've regulators? different happening Dallas to BYOB if total a the from But you again. work

Eric Langan

Texas becomes alcohol, yes. for, you and TBC Well, the a new have regulator

Robert McGuire

creates do that easier you general, wondering XTC. you a about I'm Or you you just with avoid if find environment? helping further elaborate what could strategy the that, happening In little -- an

Eric Langan

Dallas they in unconstitutional. that license seemed to manner X:XX if It's They believe place close in come all I just the have clubs and irrelevant. adult decided entertainment at time with it's an

me, close every you If you business. to close need

So far, they judge or they us then with agreed with the disagreed us. us, has with disagreed

The litigation take sit too will we're going that us this. for making And money. forth with with not back long club, so to and any now there

where those. on And will been better. early just market just do Harlingen, -- we markets, consider in and and to avoid BYOB it every markets of believe analysis not chance some have Abilene because ran because and clubs El what since These and still like Paso around take we the XXXXs. much are so we'll But very that as the underperforming converted successful, we we I that other

the market club same. stayed has of the areas the have some and changed the And changed,

take acquired do look, that we believe gone that much didn't But said, these concept. this will we're concept have we the so this before and locations particular we think to we well under X those and very, I this and have El in its acquired Dallas, concept, do our against we've with very this Burch's better able and we run clubs Paso And numbers Duncan and we particular of new especially acquisition, new in clubs, even in XTC it BYOB demographics now its and some Harlingen console. the

Robert McGuire

And about nights. in seeing call then with in to just comment the terms you regards the you of what discount in starting as you the could environment? working in clubs to in uncertainty, you're you traffic last how economic that? adjust uplift talked Wednesday Or you're that's on Monday Are general, on about and this seeing an

Eric Langan

Yes. running are sure. for helping tremendously specials is helping Sports right now. I mean

us plus this I -- last or month. last mean, been a that's big month and in this for quarter and So quarter

getting involved really will more We parties, just finals. is teams see makes through much Obviously, our parties, June think, how end out PIP complacent, much we on and helping. who that I runs being less

you're along, well get the you and results trugging new from in hired sometimes that. some as clubs that as Bombshells, As the complacent. management We we're you seeing don't realize

So on the basics. turning thinking. We're what And track. a just everybody to got back lot of getting that's it's me back

strategy at well, corporate let's 'XX strategy. back it well. the said, the reevaluate I our the to corporate And us. adopted the a this thought assets XXXX I when true very, I restaurants, basics let's again. level? to capital think returning well, allocation like return myself, highly and capital allocation go stayed and we and And we've return was at we to in to we very clubs, the basics to successful basics the for As level? worked well, its basis It XXXX And what are are the

to little And I making easy. was cost we we've for Bombshells. especially quarter, wake-up was go of off at we with a call, We and same-store money level. existing it moved team did of kind long then we last the assets, got on at and We think as became complacent in And we 'XX in the decline existing a kind of immediately wake-up it And were at seen on 'XX. Bombshells, this the as I can't club got into club a say, sales levels. 'XX us. lots members. as some cut

And so where that's we're today. at

Mark Moran

[Operator have Martin. Steve Instructions] Next up, we'll

Steven Martin

you're side? So addressed. seeing my you club competition? have the the competition think do from on questions outperforming the most of And you been are What

Eric Langan

side, or owners. the we're probably #X, in markets club talked certain #X We On brand to other competition. in our are most clubs are do some our that of definitely similar lower our club outperforming where to we have I markets competition.

an cater that they're again we're decline, overall, mid-level consumer. in their XX% down consumer. seeing think again, 'XX clubs XX% I XX% a It's to far. to probably off average so in of 'XX now struggle of and for in declines 'XX, from peaks 'XX and down mid-level the majority The

were when one of through few especially And of I made we it's out million, going the making of work we're 'XX, a million. still some there tons making in people we're were of right? $X 'XX going It's type We're us over only million everybody not business making -- when lot the We're business. a to those making just we're still -- that I next were we the going hear ton not of $XX So not of think money in to of money just open. money, we that clubs and out and we just we're and easy was -- and like revenue months. still. same about it's things the XXXX 'XX talked not the free misunderstanding because easy It's I think $XX in not of when

'XX. being with in is Things up, ourselves. money free wage multiple tightened there. There business inflation We're left consumers only seeing much interest in squeezed opened up, the rates out went just Our was so inflation. places

adopt And so that we've it's to had changed and it. to change with and

Steven Martin

Okay. a into put containment to the through that's lot think take measures. do earnings? And in you those to going you've for show cost of How long

Eric Langan

were we're revenues -- that. of but seeing you're about because I made adjusted all got of that these they're any think, are a down, any mean We're I concepts cutting a And that, new much, to EBITDA it think sales the -- or some X.X we seeing of carrying hire basis. down complete. that through think April. continue not end And I not of controllable on through -- on going off some the EBIT the think We give Well, we going cost costs decision costs. management not it day same-store is we're future can't we're I project our We we right new training as now but until ago training as the interest employees. to our weeks so kind said, of

we we'll takes that. we costs. think to we'll those all we're So any opening open we're in going costs a then carry have going X. that And preopening But to when have it carry then we not months, X date, start for but direct --

month cost that we the for to takes XX or on. to get staff, said X open months. extra us very from up staff to store end they open X not to have because set me then it now So carrying an just those open. or wait costs months. It going we're If X and a don't costs it have to little carry me they're ready I for

I what going the know And we back where cut not any we're stuff. of it. to making all all investment strain strategy is so we've ROI of the exactly on capital type is that until this mean,

Mark Moran

up, Wealth, think you're I Next Wealth. mute on Orchid Orchid still. have we'll

Unknown Analyst

people to calling the thing they any on negotiation. that or prices main to right still are I'm just on you significant the with you're these their focusing now you that in, from Obviously, have impact open people holding environment noticed and is

Eric Langan

mean money We've been a trying we're uncertainty. just are been that price starting are things of 'XX to deals, of where COVID later, but normalizing. A at. of really in 'XX. 'XX right have who fluke. I it but a there mean, I and got weeks. was of it supposed their country terms like and close one at of said, we're lot hold they've well. of people been I such was when business to be to of and And There closed we'd are negotiating lot down X wake for closed, was a And years now I then pretty lot a think like would people kind has was, so 'XX, to are unprecedented free coming and to long think on is out time be now normalization And businesses out 'XX, many time that's 'XX thinking X to that. it up to the people period

to don't just like And that I think a there's lot lot adjustment think back on. going think I been us. it's so a normalization. -- getting We're of I I of said, And just

people I Mark at I "You York when think lot And here, City. got time, New guys of a of in this we York of office came the we I as And people to And in in into I the XX, X lot I on?" clubs. or we're got with a back XX here, XX said, well was today as think Everybody's And were City time there'll our what's work. New office numbers that going talking X. most last here, most. complacent. seeing come there companies, his people over here were in be

like like I that know just to think staying I normal. of staying return know I I done So but do of we've playing to think in on I And instead XXXX. be is back going that top we'll this said, means it ahead and what don't yet, catch-up

Unknown Analyst

mean overall I'm just you to all sell numbers the for out of things are a you the assuming you years is been guys And cream it, going feel along of on in you And normal what years, number what we get you still previous and were you're have like I growing you a X take terms -- sell of this those from of different? like anything or previous the, ice bump. of my heat wave, ice have kind of doing. noticing the you lot temperatures, I assumption had like historical COVID just about let's call trend cream. lines to certain line are are you're -- before when roll of the years back a kind I for

Eric Langan

that that for doing seeing mean is compare have I breathing downtown there, are better. Gergely you certain the major we're numbers Rick's, pretty markets. and I a in you they Savill changes mean, that up while. Yes. When shape. in 'XX, good while, again. market only have dragging TW affected 'XX had it but we was for much into had Minnesota issue you the to Minneapolis not seen The COVID, time. in a had I'm But life we hadn't a club in long

that, turn. is finally So I'm going optimistic market that to

back turning as York the to is New offices. return people

have I'm And very 'XX $XX.X took was they in Florida in I million problem there. XXXX, optimistic $XX.X million incredible, -- highest never year right? biggest So mean million ever 'XX. was then gross. or you just did or $XX.X the to we is The

and -- year, change. last think change XX or then I and So XX

So basis quarterly that's same-store big swing on change a a $X is million for a sales.

Unknown Analyst

are in X any be doing that be those ago? the any to to Are now, aggressive have you're obviously, right negotiations But sounds out you're shares obviously, deals -- buybacks moment. cash aggressive It's present mean, years by for you're XXX,XXX anything prepared not. to it where you guys at at going you comes or it influx like to when put that the to your chart of going least not stuff. close be I on at have back and you big you to -- the the and because balance When or should you get close $XX sheet with

Eric Langan

on I I'm us being like to would back X more aggressive million total that. shares little thinking a under outstanding. terms get

market Today aggressively XXX,XXX went about depending closed aggressive. best... I call, that shares at attorneys the -- is made a after that can can XK whenever I Is the should what back closed data relevant buy is we what or decided our the on there. on when loan I today... here I Tuesday, we don't -- XK that out we talking is last that. week, out, the make all to with for some tell went over getting sure like I'd this pretty I on remind out I thought price -- us. you know opportunity closed little So Thursday, wait until after Bradley?

casinos probably to X a -- know. to you stock. tell a stick least We the can of we we'll not single back safe I will harbor. a safe amount start buy day. We more don't never I in the probably if we a may stick buyback next over limbo, may buy in harbor maximum under with kind -- probably for Now weeks, moderate buying at we'll

safe We harbor will SEC buybacks. the for stick provision our to

Unknown Analyst

that what's number approximately? And

Eric Langan

stock so of XX% the it a volume because local average daily had used to we we as management I use little long broker. actually worry about to

or an period. Now investment volume period bank daily buybacks. XX% we use do the of XX-day know. XX over don't I days, our to XX-day average a actually some

Unknown Analyst

XX,XXX take It's X,XXX like to. to what shares is could you

Eric Langan

that, last it's than I to looked. think I'd higher I shares, a -- little I I have mean can time get up I XX,XXX comes ask mean, it but to to I think,

Unknown Analyst

Right. But to back enough you more $XXX,XXX. cash take than have

Eric Langan

that over when We'll I cheap, it's me for stock could does. the I I loan. We've so period, these $XXX,XXX aggressive. -- that. use just stock closed day day used that now at just seen mean -- buy back that would We I wash [indiscernible] mean buy to the casual consider be we a when approved it amount. over that a have will XX what I from do consider don't be the $XX buyback Board $XX bought -- we matter and we're million it's it But very when get run, nice XX. super over and to too X at will see long mean I of XX. I in -- the or it price yes, obviously, some well, can at the years go $XXX,XXX out cash setting I And was stock. out, aggressive. it million out cost whole It I some average And a stock won't all and in in us. or bought now. we the prices, for a before. X-year

Unknown Analyst

I mean, you X Well, got deals.

XX, at XX. shares You got at you got got -- you shares

So on cash. anything right now return is net

Eric Langan

The bought we Next XXX,XXX XX, we're they assets. performing estate, that I were Both we flow. acquisitions are nder real bought better the price those on. shares much bought we bought real mean benefiting, them than on cash -- right? of

XX%. from right. I we up Burch mean increased X.X see bought of mean, to a changes ago. where ago, you change I Duncan that's XX% revenues, it So margins the year big at years A

Unknown Analyst

land could do parcels what you still and stuff. you a you have did selling... have be to of the like sell and amount you you here, portfolio can with or clubs the with things, worth huge of sell of Bombshells, off? places a Do any over these real next I'm obviously of lot off last property assuming right on And it'd that you estate doesn't possibly when the ancillary like, that number in could like now. obviously, guys And -- then stuff years that terms you just had good,

Eric Langan

million property one On have million on I a we worth. for $X just a a cost -- that a we basis, believe down $X cost cost basis, about base on market turned basis. On it's

Unknown Analyst

for you And that? pay what did

Eric Langan

today, ago the was of foot land $XX got piece But today, broker I on $XX land ago the this we to year, I bought The closing. million X the zoned we for There's that our $X.XX Bombshells we would when basically, that city that I estate the CX any It somebody big parcels got just output We've a $XX X property use. walk at for we contingent area. $XX $X use worth corner. intersection probably a about XX to came within said, Friday I think lot that. prime Texas a a Houston, X giant $XX a closer viable was know I'd probably price commercial I property the X-mile on opposite Aurora zone. It's regulators in is it foot price that it it's which $XX of a closer property for in according piece for that petitioned believe expect about is shop fast commercial, be was is I a not it. If have Bombshells develop to to weeks, bought million, X into real basically a take basically for X years to radius property recently property if to of on prime a a turned market I years foot, highways. about going about have -- the an million in major around Pro at left. offered million. acres. largest talked of and about maybe. that X.X because is pretty about Bass It a the -- I we're for up special got in in we is next on today. contract rezone it hopefully it of wasn't broker the which sale. foot.

because sell planned pieces the started into where it in the so originally we to was there shopping around valuable. then, So is property, we changed look, sell develop if that a got the and value large light that's other business, zone, us and RCI And when the probably got that -- and to probably created became bought of let's mini property very that this had up basically park, industrial out park, really just it. a development and I course, all industrial

'XX. get like in point -- think, X So we'll lined I'd everything and some fiscal to get XXXX to XXXX -- months really. like by -- get actually really everything everything the or XXXX we're now our X we next strategy at like I'd it months sold, up to the line in our like next I I'd because in or XXXX did get and X, October back K to with

Unknown Analyst

at current I'm allocation And meeting capital is buying anything that your these Okay. strategy? levels assuming you're

Eric Langan

don't strategy. we bought period I have everything allocation is invested. think our we capital I anything think met

some I we time made mistake estimation mistake, was if of to think any open.

we'll carrying our line increasing. costs crazy. casino I this is think I on be be time getting still we'll carrying think are these strategy additional because maybe And so therefore, except And with the for ropes costs capital case within everything

investment maybe on properties, of wise, the got math our ranges fine. on will But be within the everything capital allocation but X XX%, month, unit, investment I fall cash on on Bombshells of we've still. still return return hope the we'll instead think that So to else, still Cash XX% weigh very strategy. we the is

Unknown Analyst

buy by can't stock. We clubs

Mark Moran

as ask Bradley who very as and much, you those questions. all well Eric Thank

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

have Eric thank or me If you night. good at ask and Bradley, have the for door. you, our a subsidiaries, RSVPed, Eric, and an the behalf company On of

great As restaurants always, please have a visit clubs one or and time. of our

RCI Hospitality (RICK) 9 May 242024 Q2 Earnings call transcript