Close

Q4 and Fiscal Year 2024 Earnings Conference Call

Press Release Presentation X Spaces (must be signed into X)
Minimum 15 minutes delayed.
RICK (NASDAQ)
$ 00.00
Change
  
Daily Volume
276,009
More Information
u
Open
$
Close
$
Daily High
$
Daily Low
$
52-Week-High
$
52-Week-Low
$

Numbers at a Glance

For the 12-months ended September 30, 2024

$ 295.6 MM
Total Revenues
$ 55.9 MM
Net Cash Provided by Operating Activities
$ 48.4 MM
Free Cash Flow
$ 0.33
EPS
$ 4.72
Non-GAAP EPS
69
Locations
13
States

Compelling Investment Thesis

Investors are attracted to our high operating margins, strong cash flows, and high barriers to entry in the adult nightclub business

This provides us with the resources to acquire more clubs and buy back shares in order to grow free cash flow per share. We manage RCI like long-term owners. We believe growth of free cash flow per share is the primary driver of long-term value. Our goal is to increase free cash flow per share at least 10-15% on a compound annual basis.

Our capital allocation strategy, which was implemented at the end of Fiscal 2015, provides us with disciplined guidelines on how we should grow free cash flow per share

As part of our FY25-29 plan, we are targeting 50% of free cash flow to acquire nightclubs and pay debt and 50% to buy back shares and increase dividends.

We may deviate from this strategy if other strategic rationale warrants. We calculate free cash flow per share as net cash flows from operating activities less maintenance capital expenditures divided by average shares outstanding.

Based on our capital allocation strategy, we will consider:

  • Acquiring clubs targeting 100% cash on cash return in 3-5 years absent strategic rationale to do otherwise.
  • Disposing underperforming assets to free up capital for more productive use
  • Buying back our own stock if the after-tax yield on free cash flow per share is more than 10%
  • Paying down our most expensive debt if it makes sense on a tax-adjusted basis or there is an otherwise strategic rationale

Our capital allocation strategy has proven highly effective

From fiscal 2019 through fiscal 2024, excluding noncash and certain nonrecurring items, our non-GAAP diluted earnings per share improved at a CAGR of 14.1%, net cash provided by operating activities improved at a CAGR of 8.5%, and free cash flow improved at a CAGR of 7.8%.

News

January 16, 2025 |9:00 am EST

RCI's Favoritely.com Social Media Site Successful in First Phase of Beta Rollout

January 08, 2025 |9:00 am EST

RCI Reports 1Q25 Club & Restaurant Sales

December 16, 2024 |4:05 pm EST

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

Feature Presentation