RCI Hospitality Holdings, Inc. (NASDAQ:RICK) Q3 2024 Earnings Conference Call August 8, 2024 4:30 PM ET

Company Participants

Mark Moran - Equity Animal
Eric Langan - Chairman, President and CEO
Bradley Chhay - CFO

Conference Call Participants

Scott Buck - H.C. Wainwright
Jason Scheurer – Orchard Wealth Management
Unidentified Analyst -

Mark Moran

Greetings and welcome to RCI Hospitality Holdings' Third Quarter 2024 Earnings Conference Call. You can find the company's presentation on RCI's website. Go to the Investor Relations section. All the necessary links are at the top of the page.

Please turn with me to Slide 2 of our presentation. I'm Mark Moran, CEO of Equity Animal. I'll be the host of our call. I'm coming to you from the Commonwealth of Virginia. Eric Langan, President and CEO of RCI Hospitality, and CFO, Bradley Chhay are in Houston.

Please turn with me to Slide 3. RCI is making this call exclusively on X Spaces. To ask a question, you will need to join the Space with a mobile device. To listen only, you can join the Space on a personal computer. At this time, all participants are in a listen-only mode. A question-and-answer session will follow. This conference call is being recorded.

Please turn with me to Slide 4. I want to remind everybody of our Safe Harbor Statement. You may hear or see forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those currently anticipated. We disclaim any obligation to update information disclosed in this call as a result of developments that occur afterwards.

Please turn with me to Slide 5. I also direct you to the explanation of RICK's non- GAAP financial measures. Now, I'm pleased to introduce Eric Langan, President and CEO of RCI Hospitality. Eric, take it away.

Eric Langan

Thank you. If everyone will turn to Slide 6, I'd like to thank you for joining us today. And we made a lot of progress during the third quarter. It reflects the first full quarter of our Back to Basics approach to our business and our Capital Allocation Strategy. Specifically, we are taking aggressive actions to increase revenues, reduce costs, and expand margins. We're concentrating on our core club business, improving the Bombshells, and buying back shares, all with the goal of increasing free cash flow per share. Yes, we had a lot of impairment that affected our GAAP results in the third quarter, but that was non-cash. The key takeaways are that Nightclubs achieved record revenues with a year-over-year increase in total sales and the first quarter of year-over- year increase in same-store sales since the second quarter of fiscal 2023.