RCI Reports 4Q24 & FY24 Results, Launches 5-Year Capital Allocation Plan, Hosts 4:30 PM ET X Spaces Call Today

About this update from Rci Hospitality Holdings, Inc.

HOUSTON , Dec. 16, 2024 /PRNewswire/ -- RCI Hospitality Holdings, Inc. (Nasdaq: RICK) today reported results for the fiscal 2024 fourth quarter and year ended September 30, 2024 . The company also filed its Form 10-K today and announced details of its "Back to Basics" Five-Year Capital Allocation Plan. Summary Financials (in millions except EPS) 4Q24 4Q23 FY24 FY23 Total revenues $73.2 $75.3 $295.6 $293.8 EPS $0.03 $0.23 $0.33 $3.13 Non-GAAP EPS1 $1.63 $1.11 $4.72 $4.90 Impairments and other charges, net $10.1 $9.9 $36.6 $15.6 Net cash provided by operating activities $15.7 $12.1 $55.9 $59.1 Free cash flow1 $13.2 $11.1 $48.4 $53.2 Net income attributable to RCIHH common stockholders $0.2 $2.2 $3.0 $29.2 Adjusted EBITDA1 $17.9 $20.2 $72.6 $85.0 Weighted average shares used in computing EPS – basic and diluted 9.01 9.42 9.25 9.34 1 See "Non-GAAP Financial Measures" below 4Q24 Summary (Comparisons are to the year-ago period unless indicated otherwise) Eric Langan , President and CEO, said: "Nightclubs same-store sales increased for the second quarter in a row, the first time since the first half of FY23, but total company sales declined due to a hurricane and fire, resulting in a lower EPS. However, non-GAAP EPS, net cash provided by operating activities, and free cash flow all increased. We ended FY24 with 8.955 million shares outstanding, down 4.7% year over year, and have continued to buy back shares in the market." "Back to Basics" FY25-29 Capital Allocation Plan Mr. Langan continued: "RCI has grown significantly since we initiated our Capital Allocation Strategy at year-end FY15. Revenue has more than doubled, from $135 million to $296 million , a CAGR of 9%. More importantly, free cash flow has more than tripled, from $15 million to $48 million , a CAGR of 14%, while our share count fell by 13%. We are proud of this achievement and thank all employees, entertainers, and partners who made this possible." "Looking ahead, we plan to build on this track record through a 'Back-to-Basics' strategy. Operationally, this means focusing on our Nightclub business and improving Bombshells. For capital allocation, this means focusing on club acquisitions and returning more capital to shareholders, mainly through buybacks." Operational Priorities Capital Allocation Priorities (% of FCF) FY29 Financial Targets Focus on Existing Nightclubs Nightclub Acquisitions: 50% (includes debt repayment) Total Revenues: $400M Improve Bombshells Free Cash Flow: $75M Acquire New Nightclubs Share Buybacks & Dividends: 50% Shares Outstanding: 7.5M X-Spaces Conference Call at 4:30 PM ET Today Hosted by RCI President & CEO Eric Langan , CFO Bradley Chhay , and Mark Moran of Equity Animal Call link: https://x.com/i/spaces/1DXGydpRRRLKM (X log in required) Presentation link: https://www.rcihospitality.com/investor-relations/ To ask questions: Participants must join the X Space using a mobile device To listen only: Participants can access the X Space from a computer There will be no other types of telephone or webcast access 4Q24 Results (Comparisons are to the year-ago period unless indicated otherwise) Nightclubs segment: Revenues of $60.6 million decreased by 0.5%. Sales reflected 2.2% same-store sales growth, which was negatively impacted by 10 closure days at three Houston area clubs due to the July hurricane. Sales also reflected three new and reformatted clubs, the temporary closing of two clubs, and the transition of two clubs to new formats and/or hours.2 By type of revenue, alcoholic beverages increased by 0.3%; food, merchandise and other increased by 0.9%; and service decreased by 1.7%. The differing growth rates primarily reflected higher alcohol and food, and lower service sales from clubs acquired last year. The quarter included total impairments and other charges of $6.9 million compared to $8.9 million , resulting in operating income of $13.1 million (21.5% of segment revenues) compared to $12.1 million (19.8%). Non-GAAP operating income was $20.5 million (33.8% of segment revenues) compared to $21.6 million (35.4%). The difference in non-GAAP operating margin reflected minimum wage increases that took effect in July and September 2024 in various locations. Bombshells segment: Revenues of $11.9 million declined 12.1%. Sales reflected a 16.2% SSS decline, which was negatively impacted by 26 closure days at five Houston area locations due to the July hurricane. New sales from the Stafford location, which opened in November 2023 , partially offset the early September 2024 divestiture of the San Antonio location.2 The quarter included total impairments and other charges of $3.2 million compared to $0.2 million , resulting in an operating loss of $2.5 million (-21.1% of segment revenues) compared to income of $1.2 million (8.7%). Non-GAAP operating income was $0.7 million (5.9% of segment revenues) compared to $1.4 million (10.4%). The difference in non-GAAP operating margin reflects lower SSS and weather related closures. Corporate segment: Expenses totaled $7.1 million (9.7% of total revenues) compared to $6.8 million (9.0%). Non-GAAP expenses totaled $6.6 million (9.0% of total revenues) compared to $6.3 million (8.4%). Impairments and other charges, net of $10.1 million within consolidated operations mainly included impairment of $7.0 million related to nine clubs and $5.5 million related to six Bombshells and the food hall, and a $2.3 million net gain from the elimination of debt from the sale of Bombshells San Antonio. Income tax was a benefit of $0.8 million compared to $0.6 million . The effective tax rate was a benefit of 15.7% in FY24 compared to an expense of 19.0% in FY23. Weighted average shares outstanding of 9.01 million decreased 4.4% due to share buybacks partially offset by shares issued in the 2Q23 Baby Dolls-Chicas Locas acquisition. Share Repurchases: In 4Q24, RCI repurchased 174,790 common shares for $7.8 million ( $44.81 average per share), resulting in 8,955,000 shares of common stock outstanding and $21.0 million in remaining purchase authorization. For all of FY24, RCI repurchased 442,639 shares for $20.6 million ( $46.55 average per share). Debt was $238.2 million at September 30, 2024 compared to $245.4 million at June 30, 2024 and $239.8 million at September 30, 2023 . The June- September 2024 decline primarily reflected elimination of Bombshells San Antonio debt and scheduled pay downs. 2 See our October 8, 2024 , news release on 4Q24 sales for more details Non-GAAP Financial Measures In addition to our financial information presented in accordance with GAAP, management uses certain non-GAAP financial measures, within the meaning of the SEC Regulation G, to clarify and enhance understanding of past performance and prospects for the future. Generally, a non-GAAP financial measure is a numerical measure of a company's operating performance, financial position or cash flows that excludes or includes amounts that are included in or excluded from the most directly comparable measure calculated and presented in accordance with GAAP. We monitor non-GAAP financial measures because it describes the operating performance of the Company and helps management and investors gauge our ability to generate cash flow, excluding (or including) some items that management believes are not representative of the ongoing business operations of the Company, but are included in (or excluded from) the most directly comparable measures calculated and presented in accordance with GAAP. Relative to each of the non-GAAP financial measures, we further set forth our rationale as follows: Non-GAAP Operating Income and Non-GAAP Operating Margin. We calculate non-GAAP operating income and non-GAAP operating margin by excluding the following items from income from operations and operating margin: (a) amortization of intangibles, (b) impairment of assets, (c) gains or losses on sale of businesses and assets, (d) gains or losses on insurance, (e) settlement of lawsuits, and (f) stock-based compensation. We believe that excluding these items assists investors in evaluating period-over-period changes in our operating income and operating margin without the impact of items that are not a result of our day-to-day business and operations. Non-GAAP Net Income and Non-GAAP Net Income per Diluted Share. We calculate non-GAAP net income and non-GAAP net income per diluted share by excluding or including certain items to net income attributable to RCIHH common stockholders and diluted earnings per share. Adjustment items are: (a) amortization of intangibles, (b) impairment of assets, (c) gains or losses on sale of businesses and assets, (d) gains or losses on insurance, (e) settlement of lawsuits, (f) gain on debt extinguishment, (g) stock-based compensation, (h) the income tax effect of the above-described adjustments, and (i) change in deferred tax asset valuation allowance. Included in the income tax effect of the above adjustments is the net effect of the non-GAAP provision for income taxes, calculated at 0.0%, 20.6%, and 22.8% effective tax rate of the pre-tax non-GAAP income before taxes for 2024, 2023, and 2022, respectively, and the GAAP income tax expense. We believe that excluding and including such items help management and investors better understand our operating activities. Adjusted EBITDA. We calculate adjusted EBITDA by excluding the following items from net income attributable to RCIHH common stockholders: (a) depreciation and amortization, (b) income tax expense, (c) net interest expense, (d) gains or losses on sale of businesses and assets, (e) gains or losses on insurance, (f) impairment of assets, (g) settlement of lawsuits, (h) gain on debt extinguishment, and (i) stock-based compensation. We believe that adjusting for such items helps management and investors better understand our operating activities. Adjusted EBITDA provides a core operational performance measurement that compares results without the need to adjust for federal, state and local taxes which have considerable variation between domestic jurisdictions. The results are, therefore, without consideration of financing alternatives of capital employed. We use adjusted EBITDA as one guideline to assess the unleveraged performance return on our investments. Adjusted EBITDA multiple is also used as a target benchmark for our acquisitions of nightclubs. We also use certain non-GAAP cash flow measures such as free cash flow. Free cash flow is derived from net cash provided by operating activities less maintenance capital expenditures. We use free cash flow as the baseline for the implementation of our capital allocation strategy. About RCI Hospitality Holdings, Inc. (Nasdaq: RICK) (X: @RCIHHinc ) With more than 60 locations, RCI Hospitality Holdings, Inc. , through its subsidiaries, is the country's leading company in adult nightclubs and sports bars-restaurants. See all our brands at www.rcihospitality.com . Forward-Looking Statements This press release may contain forward-looking statements that involve a number of risks and uncertainties that could cause the company's actual results to differ materially from those indicated, including, but not limited to, the risks and uncertainties associated with (i) operating and managing an adult entertainment or restaurant business, (ii) the business climates in cities where it operates, (iii) the success or lack thereof in launching and building the company's businesses, (iv) cyber security, (v) conditions relevant to real estate transactions, (vi) the impact of the COVID-19 pandemic, and (vii) numerous other factors such as laws governing the operation of adult entertainment or restaurant businesses, competition and dependence on key personnel. For more detailed discussion of such factors and certain risks and uncertainties, see RCI's annual report on Form 10-K for the year ended September 30, 2024 , as well as its other filings with the U.S. Securities and Exchange Commission . The company has no obligation to update or revise the forward-looking statements to reflect the occurrence of future events or circumstances. Media & Investor Contacts Gary Fishman and Steven Anreder at 212-532-3232 or [email protected] and [email protected] RCI HOSPITALITY HOLDINGS, INC. CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share, number of shares, and percentage data) For the Three Months Ended For the Twelve Months Ended September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 Amount % of Revenue Amount % of Revenue Amount % of Revenue Amount % of Revenue Revenues Sales of alcoholic beverages $ 32,459 44.3 % $ 33,325 44.3 % $ 133,124 45.0 % $ 127,262 43.3 % Sales of food and merchandise 11,000 15.0 % 11,149 14.8 % 44,606 15.1 % 43,906 14.9 % Service revenues 24,504 33.5 % 25,661 34.1 % 98,455 33.3 % 103,577 35.3 % Other 5,271 7.2 % 5,115 6.8 % 19,419 6.6 % 19,045 6.5 % Total revenues 73,234 100.0 % 75,250 100.0 % 295,604 100.0 % 293,790 100.0 % Operating expenses Cost of goods sold Alcoholic beverages sold 5,783 17.8 % 6,155 18.5 % 24,228 18.2 % 23,291 18.3 % Food and merchandise sold 4,132 37.6 % 4,000 35.9 % 16,360 36.7 % 15,429 35.1 % Service and other 286 1.0 % 191 0.6 % 397 0.3 % 282 0.2 % Total cost of goods sold (exclusive of items shown below) 10,201 13.9 % 10,346 13.7 % 40,985 13.9 % 39,002 13.3 % Salaries and wages 20,878 28.5 % 20,818 27.7 % 84,177 28.5 % 79,500 27.1 % Selling, general and administrative 24,761 33.8 % 24,463 32.5 % 99,672 33.7 % 93,024 31.7 % Depreciation and amortization 3,757 5.1 % 4,043 5.4 % 15,395 5.2 % 15,151 5.2 % Impairments and other charges, net 10,118 13.8 % 9,936 13.2 % 36,570 12.4 % 15,629 5.3 % Total operating expenses 69,715 95.2 % 69,606 92.5 % 276,799 93.6 % 242,306 82.5 % Income from operations 3,519 4.8 % 5,644 7.5 % 18,805 6.4 % 51,484 17.5 % Other income (expenses) Interest expense (4,224) (5.8) % (4,246) (5.6) % (16,679) (5.6) % (15,926) (5.4) % Interest income 162 0.2 % 120 0.2 % 482 0.2 % 388 0.1 % Income before income taxes (543) (0.7) % 1,518 2.0 % 2,608 0.9 % 35,946 12.2 % Income tax expense (benefit) (788) (1.1) % (601) (0.8) % (410) (0.1) % 6,846 2.3 % Net income 245 0.3 % 2,119 2.8 % 3,018 1.0 % 29,100 9.9 % Net loss (income) attributable to noncontrolling interests (1) — % 72 0.1 % (7) — % 146 — % Net income attributable to RCIHH common shareholders $ 244 0.3 % $ 2,191 2.9 % $ 3,011 1.0 % $ 29,246 10.0 % Earnings per share Basic and diluted $ 0.03 $ 0.23 $ 0.33 $ 3.13 Weighted average shares used in computing earnings per share Basic and diluted 9,006,014 9,417,166 9,250,245 9,335,983 RCI HOSPITALITY HOLDINGS, INC. SEGMENT INFORMATION (in thousands) For the Three Months Ended For the Twelve Months Ended September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 Revenues Nightclubs $ 60,636 $ 60,943 $ 243,864 $ 236,748 Bombshells 11,937 13,580 50,578 55,723 Other 661 727 1,162 1,319 $ 73,234 $ 75,250 $ 295,604 $ 293,790 Income (loss) from operations Nightclubs $ 13,064 $ 12,060 $ 58,094 $ 73,187 Bombshells (2,517) 1,179 (10,646) 6,502 Other 58 (793) (523) (1,446) Corporate (7,086) (6,802) (28,120) (26,759) $ 3,519 $ 5,644 $ 18,805 $ 51,484 RCI HOSPITALITY HOLDINGS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) For the Three Months Ended For the Twelve Months Ended September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 245 $ 2,119 $ 3,018 $ 29,100 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 3,757 4,043 15,395 15,151 Impairment of assets 12,553 9,336 38,517 12,629 Deferred income tax benefit (31) (991) (6,450) (1,781) Loss (gain) on sale of businesses and assets (2,331) 2 (2,215) (870) Amortization and writeoff of debt discount and issuance costs 146 162 608 615 Doubtful accounts expense on notes receivable (22) — — — Loss (gain) on insurance (522) 14 (522) (77) Noncash lease expense 662 752 2,980 2,978 Stock-based compensation 470 471 1,882 2,588 Changes in operating assets and liabilities, net of business acquisitions: Receivables 1,231 (3,863) 4,283 (2,383) Inventories (97) 98 (309) 177 Prepaid expenses, other current, and other assets 1,063 3,236 (2,421) (366) Accounts payable, accrued, and other liabilities (1,473) (3,253) 1,118 1,369 Net cash provided by operating activities 15,651 12,126 55,884 59,130 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of businesses and assets 19 1,434 1,969 4,245 Proceeds from insurance 1,367 (5) 1,367 86 Proceeds from notes receivable 70 59 249 229 Payments for property and equipment and intangible assets (5,381) (9,265) (24,600) (40,384) Acquisition of businesses, net of cash acquired — — — (29,000) Net cash used in investing activities (3,925) (7,777) (21,015) (64,824) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from debt obligations — — 22,657 11,595 Payments on debt obligations (5,864) (4,219) (23,001) (15,650) Purchase of treasury stock (7,831) (2,125) (20,606) (2,223) Payment of dividends (628) (566) (2,302) (2,146) Payment of loan origination costs — — (290) (239) Share in return of investment by noncontrolling partner — — — (600) Net cash used in financing activities (14,323) (6,910) (23,542) (9,263) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (2,597) (2,561) 11,327 (14,957) CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 34,947 23,584 21,023 35,980 CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 32,350 $ 21,023 $ 32,350 $ 21,023 RCI HOSPITALITY HOLDINGS, INC. CONSOLIDATED BALANCE SHEETS (in thousands) September 30, 2024 September 30, 2023 ASSETS Current assets Cash and cash equivalents $ 32,350 $ 21,023 Receivables, net 5,563 9,846 Current portion of notes receivable 269 249 Inventories 4,676 4,412 Prepaid expenses and other current assets 4,427 1,943 Total current assets 47,285 37,473 Property and equipment, net 280,075 282,705 Operating lease right-of-use assets, net 26,231 34,931 Notes receivable, net of current portion 4,174 4,443 Goodwill 61,911 70,772 Intangibles, net 163,461 179,145 Other assets 1,227 1,415 Total assets $ 584,364 $ 610,884 LIABILITIES AND EQUITY Current liabilities Accounts payable $ 5,637 $ 6,111 Accrued liabilities 20,280 16,051 Current portion of debt obligations, net 18,871 22,843 Current portion of operating lease liabilities 3,290 2,977 Total current liabilities 48,078 47,982 Deferred tax liability, net 22,693 29,143 Debt, net of current portion and debt discount and issuance costs 219,326 216,908 Operating lease liabilities, net of current portion 30,759 35,175 Other long-term liabilities 398 352 Total liabilities 321,254 329,560 Commitments and contingencies Equity Preferred stock — — Common stock 90 94 Additional paid-in capital 61,511 80,437 Retained earnings 201,759 201,050 Total RCIHH stockholders' equity 263,360 281,581 Noncontrolling interests (250) (257) Total equity 263,110 281,324 Total liabilities and equity $ 584,364 $ 610,884 RCI HOSPITALITY HOLDINGS, INC. NON-GAAP FINANCIAL MEASURES (in thousands, except per share and percentage data) For the Three Months Ended For the Twelve Months Ended September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 Reconciliation of GAAP net income to Adjusted EBITDA Net income attributable to RCIHH common stockholders $ 244 $ 2,191 $ 3,011 $ 29,246 Income tax expense (benefit) (788) (601) (410) 6,846 Interest expense, net 4,062 4,126 16,197 15,538 Depreciation and amortization 3,757 4,043 15,395 15,151 Impairment of assets 12,553 9,336 38,517 12,629 Settlement of lawsuits 212 576 520 3,759 Loss (gain) on sale of businesses and assets (2,320) 10 (2,140) (682) Loss (gain) on insurance (327) 14 (327) (77) Stock-based compensation 470 471 1,882 2,588 Adjusted EBITDA $ 17,863 $ 20,166 $ 72,645 $ 84,998 Reconciliation of GAAP net income to non-GAAP net income Net income attributable to RCIHH common stockholders $ 244 $ 2,191 $ 3,011 $ 29,246 Amortization of intangibles 597 806 2,494 3,528 Impairment of assets 12,553 9,336 38,517 12,629 Settlement of lawsuits 212 576 520 3,759 Stock-based compensation 470 471 1,882 2,588 Loss (gain) on sale of businesses and assets (2,320) 10 (2,140) (682) Loss (gain) on insurance (327) 14 (327) (77) Change in deferred tax asset valuation allowance 143 (176) 143 (176) Net income tax effect 3,065 (2,810) (410) (5,068) Non-GAAP net income $ 14,637 $ 10,418 $ 43,690 $ 45,747 Reconciliation of GAAP diluted earnings per share to non-GAAP diluted earnings per share Diluted shares 9,006,014 9,417,166 9,250,245 9,335,983 GAAP diluted earnings per share $ 0.03 $ 0.23 $ 0.33 $ 3.13 Amortization of intangibles 0.07 0.09 0.27 0.38 Impairment of assets 1.39 0.99 4.16 1.35 Settlement of lawsuits 0.02 0.06 0.06 0.40 Stock-based compensation 0.05 0.05 0.20 0.28 Loss (gain) on sale of businesses and assets (0.26) — (0.23) (0.07) Loss (gain) on insurance (0.04) — (0.04) (0.01) Change in deferred tax asset valuation allowance 0.02 (0.02) 0.02 (0.02) Net income tax effect 0.34 (0.30) (0.04) (0.54) Non-GAAP diluted earnings per share $ 1.63 $ 1.11 $ 4.72 $ 4.90 Reconciliation of GAAP operating income to non-GAAP operating income Income from operations $ 3,519 $ 5,644 $ 18,805 $ 51,484 Amortization of intangibles 597 806 2,494 3,528 Impairment of assets 12,553 9,336 38,517 12,629 Settlement of lawsuits 212 576 520 3,759 Loss (gain) on sale of businesses and assets (2,320) 10 (2,140) (682) Loss (gain) on insurance (327) 14 (327) (77) Stock-based compensation 470 471 1,882 2,588 Non-GAAP operating income $ 14,704 $ 16,857 $ 59,751 $ 73,229 Reconciliation of GAAP operating margin to non-GAAP operating margin GAAP operating margin 4.8 % 7.5 % 6.4 % 17.5 % Amortization of intangibles 0.8 % 1.1 % 0.8 % 1.2 % Impairment of assets 17.1 % 12.4 % 13.0 % 4.3 % Settlement of lawsuits 0.3 % 0.8 % 0.2 % 1.3 % Loss (gain) on sale of businesses and assets (3.2) % — % (0.7) % (0.2) % Loss (gain) on insurance (0.4) % — % (0.1) % — % Stock-based compensation 0.6 % 0.6 % 0.6 % 0.9 % Non-GAAP operating margin 20.1 % 22.4 % 20.2 % 24.9 % Reconciliation of net cash provided by operating activities to free cash flow Net cash provided by operating activities $ 15,651 $ 12,126 $ 55,884 $ 59,130 Less: Maintenance capital expenditures 2,483 1,005 7,463 5,954 Free cash flow $ 13,168 $ 11,121 $ 48,421 $ 53,176 RCI HOSPITALITY HOLDINGS, INC. NON-GAAP SEGMENT INFORMATION ($ in thousands) For the Three Months Ended September 30, 2024 For the Three Months Ended September 30, 2023 Nightclubs Bombshells Other Corporate Total Nightclubs Bombshells Other Corporate Total Income (loss) from operations $ 13,064 $ (2,517) $ 58 $ (7,086) $ 3,519 $ 12,060 $ 1,179 $ (793) $ (6,802) $ 5,644 Amortization of intangibles 576 11 — 10 597 617 30 155 4 806 Impairment of assets 7,039 5,514 — — 12,553 8,522 — 814 — 9,336 Settlement of lawsuits 157 25 — 30 212 378 198 — — 576 Stock-based compensation — — — 470 470 — — — 471 471 Loss (gain) on sale of businesses and assets 14 (2,332) — (2) (2,320) — 11 — (1) 10 Loss (gain) on insurance (327) — — — (327) — — — 14 14 Non-GAAP operating income (loss) $ 20,523 $ 701 $ 58 $ (6,578) $ 14,704 $ 21,577 $ 1,418 $ 176 $ (6,314) $ 16,857 GAAP operating margin 21.5 % (21.1) % 8.8 % (9.7) % 4.8 % 19.8 % 8.7 % (109.1) % (9.0) % 7.5 % Non-GAAP operating margin 33.8 % 5.9 % 8.8 % (9.0) % 20.1 % 35.4 % 10.4 % 24.2 % (8.4) % 22.4 % For the Twelve Months Ended September 30, 2024 For the Twelve Months Ended September 30, 2023 Nightclubs Bombshells Other Corporate Total Nightclubs Bombshells Other Corporate Total Income (loss) from operations $ 58,094 $ (10,646) $ (523) $ (28,120) $ 18,805 $ 73,187 $ 6,502 $ (1,446) $ (26,759) $ 51,484 Amortization of intangibles 2,334 137 — 23 2,494 2,497 530 484 17 3,528 Impairment of assets 22,691 15,826 — — 38,517 11,815 — 814 — 12,629 Settlement of lawsuits 465 25 — 30 520 3,552 207 — — 3,759 Stock-based compensation — — — 1,882 1,882 — — — 2,588 2,588 Loss (gain) on sale of businesses and assets (56) (2,322) — 238 (2,140) (734) 77 — (25) (682) Gain on insurance (327) — — — (327) (48) — — (29) (77) Non-GAAP operating income (loss) $ 83,201 $ 3,020 $ (523) $ (25,947) $ 59,751 $ 90,269 $ 7,316 $ (148) $ (24,208) $ 73,229 GAAP operating margin 23.8 % (21.0) % (45.0) % (9.5) % 6.4 % 30.9 % 11.7 % (109.6) % (9.1) % 17.5 % Non-GAAP operating margin 34.1 % 6.0 % (45.0) % (8.8) % 20.2 % 38.1 % 13.1 % (11.2) % (8.2) % 24.9 % View original content to download multimedia: https://www.prnewswire.com/news-releases/rci-reports-4q24--fy24-results-launches-5-year-capital-allocation-plan-hosts-430-pm-et-x-spaces-call-today-302332966.html SOURCE RCI Hospitality Holdings, Inc.

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