RCI Hospitality (RICK) 11 May 212021 Q2 Earnings call transcript

Greetings. Welcome to RCI Hospitality Holdings Conference Call and Webcast. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. pleasure RCI. Gary my Investor who now for Relations is to Fishman, introduce handles It

you. Thank

the those For in click beginning listening That you presentation Information those you that Statements of call under from of will on hear of we find Page this you result just results the the the of and you our our that conference is you and to take turn can Forward-Looking materially you to that disclosed want call I differ currently presentation. RCI anticipated. occur Please I Page Company RCI Actual down find of our Harbor the It a developments you also everybody X. website, Statement. Safe direct It the investor receive Company uncertainties. to at use. Info Investor page, on may necessary that explanation to all reminds and posted as update to X. We measurements to will logo. involve disclaim the and risks phone, scroll afterwards. obligation links. non-GAAP information turn remind may Please any

introduce, Hospitality. to pleased President am of Langan, RCI I Now CEO Eric? and Eric

Thank you, Gary.

our To to employed second best Bombshells us these customers, this flow dedicated members hope per continues higher due financial and If increases strong share numbers. of and for steadfast to CFO, situation in profitability. free I’m we Nightclubs the our quarter. pandemic. here and team keep closed, Results earnings pandemic performance X, served Bradley market rebound the you – up thank with reflected COVID cash continued performance Chhay. COVID-XX thank turn improve. quarter had We and teams again, began enabled Once continue another Page flow. and investors. joining We levels trends loyal cash please reported generated their in as our we our us to since a enable you strong us today, to overall After free posted the

today, million clubs of clubs curfews, Minneapolis, in are Bombshells curfew beginning XX many northern have where on our to Nightclubs PM exceeded Restrictive $XX sales we which end. we have As and and have of XX are Bombshells affected clubs April. open. XX Friday. three

starting York, will have hope club New curfew plans we where where and clubs Chicago eliminate May soon. we curfew midnight to lifted the in XX have three we the one be

to about all we are I when to the is grow return and to and review then fronts we’ll our now have that I’ll free Looking the Bradley, working here financial talk data. forward, on wrap Session more cash flow. Question-And-Answer

increase in X% We and $X.XX Non-GAAP Eric, million who Thanks, since quarter a to year year This quarter. first to pandemic the quarter. up total afternoon ago $X.XX. revenues year-over-year compared the the was ago compared second $XX.X year-over-year. of on was began quarter, $X.XX reported a EPS the that’s those tuned XXXX $X.XX, GAAP our March loss in EPS in is good to call. for of

as million $XX.X of had we March cash, at Looking XXst.

year quarter based increased sequential from were up Revenues Page and cash cash in March in locations quarter. demand. quarter basis – XX.X% December consistent and net company’s quarter third quarter. ago the year reflected in the the open rebound. only enough on flow more to Please The on sales million increase open the to X.X%, Second ago and Same-store XX.X X.X% days activities that clubs history. down the from highest qualify of quarters and quarter highest strong more XXXX the a million million, segment $XX from was turn third $X a The free that’s operating to Nightclub continues was X. were

the for quarter, freeze. This XXXX March XX XX quarter December are Texas mid-February open were of open the the period. XX were to full closed open quarter, end. clubs compares clubs the the were open the in and several were quarter period the due by for through most During days XX XX to by end. of XXXX XX when

strong As January closed year, you may and mid-March went recall, clubs local after performance state last in XX pandemic restrictions our all in February when effect. and into

year to to goods bit Other While expenses were proportion XXXX and in little sold of lower Cost segment of service pre-pandemic also was sales margins compared bounced income March XX.X% quarter levels. XX.X% a below due ago, to back of revenues. aggregate declined. operating revenue,

quarter. a continued ago expanded of XX.X% quarter year increased million $XX $X.X increased year-over-year. was turn property a COVID-related margin to a performance X. by expanded XX.X%. million, GAAP segment’s quarter due we $X.X the Same-store million $X XX% the while of from ago $XX.X impairment. Bombshells generated million. million is revenues million. year of segment profitability this to popularity Page million the profitability As operating from X.X%. year’s to from segment Revenue XX.X% moved in second when held-for-sale increased on another since $XX.X performance $XX.X of operating strong the The worth non-GAAP rose to up from This Non-GAAP There quarter, concept. XX.X%. basis, result, to sales to to impairment included Please best an of XX.X% margin Thus, one was

due were increased mid-March. compares quarter This Bombshells ago the During new in closed January nine of to the the open location to to a which existing in XXXX exception Capacity XX% ten from several in days mid-March. when the all freeze. year the and quarter, opened Texas Bombshells XXX% second also late with

and margins XX.X% quarter aggregate lower Other in to higher to income cost of goods. was percentage compared a declined. revenue Second expenses due revenue, sold of segment revenue also XX.X% goods of and of as also Cost performed well. operating

$XXX,XXX few our second turn increase in segment operating X non-GAAP review basis, XX.X%. expanded XX.X% quarter margin result, expanded XX.X%. from a margin On of of from million statement items improved as to consolidated XXX.X% wages XXX.X% revenues, compared from Salaries a and XX.X% million, by to was Please to $X.X to operations. As remaining profitability of of X.X%. GAAP to a year-over-year. profitability an to to $X.X revenues operating non-GAAP increased XX.X% Page

taxes depreciation and believe X.X% savings is initiatives was to revenue quarter. second percentage SBA segment prior a There we pre-tax. Both a of runrate our due end real during of caused due hand, as Interest of However, the million This like XX.X%. our quarter $XXX,XXX Depreciation the to and certain an This ended lower margins, as year and of SG&A software. improved fees X.X% remaining $X.X ago of primarily of were loans. reflected non-operating lower a $X.X from expenses cost these extinguishment paid to one down on year-over-year. amortization with million, expense was also high. audit as quarter. two to the to of benefit compared cash Nightclubs compared of the a million. legal was Please XX.X%, Bombshells $XX.X to and Income full was estate and This a approximately of gain normal X. compared We to and Page fell debt better turn year X.X%. XX%. two was

million. quarter, cash flow sequentially second continued free $X the to recover During to

have continued the pandemic to cash positive began. We flow stay since free

year XX.X% use of September percentage at well $X doing cash. XX. our also XX.X% revenue to end cash declined of cash the We are scheduled percentage in from year this This from sequentially. first measure fiscal now December in flow converting revenues, this was and revenues and to quarter debt It a flow of improved the $X.X and fourth of quarter. as how XX% free it’s a XXXX, million dollars reflected free As extinguishment we million quarter Debt paydowns. XX,

at now years. lowest are almost our two level We in debt

current of debt our $XX.X the Please Page debt. for continued We continue range to pie chart. to million, current in the general At liabilities last X to turn a two be all be for years. on

in the to the at We is by X.X% secured categories since the which see of financing, club Texas XX.X% respective secured applies, is now consists this assets seller listed many and related continued assets business settlement. December of Secured debt This of debt settlement. by of XX. real estate, other control decreases the XX.X% secured by the by club secured to and to represented X.X% by it

debt unsecured X.X% and representing debt one that the costs Occupancy manageability. unsecured to XX.X% SBA in to second at consists remaining turn Please is Page returned of review levels our loan. pre-COVID listed our Our to quarter. XX

a As cost XXXX as This higher compared $X.X ago a a X.X% to in actual million due sales percentage of up strong revenue, cost to percentage reduction were X.X% of to due year of they Occupancy COVID. and was revenues XQ million. to the from in primarily period. $X.X

rate. to continued have our reduce We average interest weighted

fiscal of of year. X.XX% XXXX five second down last from the come the the years second Over this in quarter X.XX% has in that fiscal quarter to

strategic our As is we’ve of estate debt. initiatives real refinancing discussed, our one

Our eliminating interest by objective million debt years reducing objective – of is $X.X currently coming our is another X.X to due annually. over $X.X million and the expense include objectives eliminate our balloon

Now let me you. back over Eric. call Thank turn the

turn Slide to Please Bradley. XX. Thanks,

talk to of to continue new We a lot investors.

to review allocation capital strategy. So, our I’d like

Our value annual on share a XX% XX% increasing basis. shareholder goal compounded to cash by is to drive free per flow

generate in companies is on those William the cash allocating I to per to studied share Outsiders, spoke generating Thorndike strategy cash the and who to outlined book focus similar Our The cash. that author recently that more

to XXXX fiscal whether different actions, is these other to applying otherwise. strategic of been have with do there We subject, course, since rational three strategies

times The and markets. solid market to clubs buying four to the first acquisitions, in right using is acquire seller adjusted at real buy the financing clubs We right cash estate mergers EBITDA, at flowing like specifically value. the good, three and

to to acquiring Our and want, cash returns we to least XX% our goal we of expanding returns. strategy Bombshells can’t grow cash-on-cash clubs market clubs, specifically see organically, like generate awareness using to critical second we to XX% at is least always Since cash-on-cash when is to franchises. develop to Similar XX% to mass sell buy at annual XX%.

the The yield share is when is back flow on XX%. third per than shares, our free more buying cash

in and $X.X December XX. the cost XX,XXX we Page common retired million. turn stock Please approximately purchased shares During quarter to first at of approximately ended

continued capital are in to on grow strategy We free allocation order our flow. to cash execute

underway We Antonio. to at on our Texas Arlington, Construction real plan and term next our our and some is location lower is interest refinance into rate, unsecured San make continue and at our debt. increase estate franchisees efforts in estate ten real Bombshells first progress our to goal to in our higher debt convert debt

continuing potential franchisees. company-owned We on due other locations do to are and diligences

ten XX sign build next is subsidiary-owned the goal locations additional Our franchisees. over new months and

interested are Session. Operator? We exploring With forward at XX to the industry that, in club through the X convention May opportunities looking Question-And-Answer May Miami. in X owners open also EXPO, let’s

question first with from Greg Our ahead. Pendy Instructions] go [Operator comes Please Sidoti.

into dig to taking questions. salaries for my the is question Thanks I want first Hey. and My wages. just

you mentioned, think at – in I obviously to a difficulty might Obviously, big people to it’s of come finding topic there XX.X%. work. they came be back

explain over well us now through? mean, of you And what in salaries you creep of expected And XX%. so immediately? up the why you XX% that forward? in couple going headwind a that to it quarters? of likely metric back to can the And quarter? going walk what on and is that wages? back that' this to said right Is or is is So, did kind can to kind the next normalization be going to But you environment pathway I is get

couple I There is a forward. going a be will it little of headwind reasons. think

think did why I so First have quarter, did let’s very well so we employees. this well your start we loyal quarter? with we this question because first

very Our employees increased it. through worked rapidly our revenues and

lot hit. when COVID froze revenue We or staff. We – froze of a of have wages kind

our a of lot a employees are right lot and corporate now, teams, not? little We lot below staff our a of are probably what market. of people, reviewing We management a

are have So that to step up. we going to

little it a react So, say of over next for the and bit couple quarter-by-quarter to what are on quickly quarters, need maybe I how to see you would going depending return, do. we three, we increase

now. of little right a bit short also some in places are We

be of But I extra trying are very make employment it’s they done market that to we difficult, the because to work, right hire. to in employees, the are very current think and It successful, willing loyalty sure helping. now. that’s difficult what do company our of to is put So to is willing a needs the

well, we for are us they need because recruiting so, staff. they And as out

So, I problems. don’t any see long-term

have the – going competitive short-term deal. are definitely have had and at we it’s I very to to lock unlock being marketplace think think taking look for and that salary I last have cap us of in to – of employees we’ve taken care the But care XX look that our the and we months.

think sure going our this we’ve So It And a why and this, and going process I last that’s make not be for quarter. to was years norm. people going need is typical new through XX.X% next is to to – we I seen is when that are going average quarter the XX%. be is understand about to the the five be – we

back get we’ll think to. I

I competitive that stay think order at we have in be level to marketplace. the in to

about Are that’s getting know be we then, on how helpful. the to kind should to mean, people midnight just because about are incremental caps And in kind you is big just be a That’s going I Minnesota, New Or lifting going Okay. York understand, is people How curfew? the business business that to I more the to positive? clubs? thinking of drive? the mean, going it? trying much

were To XX% an last you in us. the other killing lifted our give of curfews in typically business are curfews four of the night. idea, states, the we when The hours did

problem business, York, of just the are getting not up about prime And maybe cities full And closed So are XX% X open is, biggest still the AM are the that are to down, but X main we the have but until can in we markets else. you New AM. we open in where gone. little they bit someplace we In talking go business. is

go midnight, in in X City, New example, – close For the whether York morning. Clock it. bridge we At you the o across

go to customer place. they at So They what someplace that happens our XX:XX night, go come normally at don’t the just else. would is out

So, numbers back now, to I very Their think increasing of To putting right be and in going a us. year-over-year. numbers, are about kind normal it’s to for month ago think opened I regular big actually Pittsburgh returning hours. to

increase, Minneapolis are see in best normal May. had at we night I in New a Friday hours. night, of being going the open huge in that ages are think we end York to just we’ve started a by

are you take revenues. $XX,XXX our you talking between New I million York in April, about week and somewhere think between in week it’s $X.X per Chicago if sales. clubs, million Minneapolis, $XXX,XXX a and $XX the And in

we May kind as of - of than likely where are headed can roll are more of August, the end we see You June, and through September. we July, end

a exuberance. slowdown. and haven’t So, I really if – that I think call even it consumer – we like, seen

the house want was. spend now. point, a out increase they We going there we than They a And be right all now. after gap seen knows? decrease but contagious So want people are to like of now. right out and stay out. I time out Who out of week seeing Like COVID more we around to when? they week money party addictive is and be and out the it more are is seeing said, to have being and far, that continued run to It’s are People not and just having and at getting good some increase. is going in

know. that of I cap consumer kind really until just don’t out, exuberance So,

if checks? just kind color driving you Okay. trying any on just of maybe to ballooned? margins just was more I just Is that can – of there of real margins just Bombshells, sense kind better that? just and one am kind of at what the a trying conceptual that get quickly, to And understand the then something average

I of of that’s fewer what . world seeing. ballooned busy hours we think And average lot we number really just and the think a I are are and is people - I increased. the of checks have busy number don’t think we that that

Okay.

it’ you think So, … traffic-driven and

but, there champagne, and few drinks, the traffic-driven. get the coming we definitely a mean big go I ticket, where upstairs drinks. few It’s average some spend out you in, it’s it’s and is time, or and as been hang one up go have this is drink Bombshells customer clubs there I’ve like spenders It’s a It’s maybe a times. traffic. VIP place have you well two if traffic-driven. we

volume to $X tickets. $X, But it Bombshells really have driving right something, to something that’s might do just up it. of ticket of a a pure now. it’s or So, It’s with number $XX it’s

That’s helpful. Thanks a lot.

bet. You

question Naymark Capital. Next with X ahead. Please go Yaron Main

Hey guys. Awesome quarter.

a but out? reopen which open lot I question you I a mean hard want restaurants, like the the sustainable been internalize in the know commentary. I that once where but is to trying I do strength, I you all a bit think am don’t on of bars follow-up and that. eventually have how it’s them think levels Texas, little local on to if Bombshells much of Just already I this you all would I do streaking it what not, think mean, know,

They are in open Texas.

fourth I consistent the think last quarters quarter with year. $XX the we two And have in very been of last peaked million.

I said where talking are what’s we Bombshells numbers, with at the some Then that’s of think I I the of team. the been in looking on. I’ve am at. management kind going

we is this where think at I are now.

much normal be that I slow But reason out for people Will I do it or see now, this in think a right XX for think we we if now. from will quarter XX at. did I the going months, I is we did much of the I brand the it guess, I it that big XX,XX, pretty the don’t to next, in slowdown bit? as know little are last something. is range year. stopping quarters this that maybe think for here. something. But right probably don’t that fourth down to any the

pretty now. sustainable right XX think is I

it. Got

it looking some revenue. seasonality. is at annualize I $XXX,XXX of lifting so that… But New there April about runrating restrictions million you I a number and you if I probably talking are Minnesota, just know business in you So, mean, that’s and if plus like take you for or York were the $XXX the kind add or mean you the Chicago,

Well, there week, we $XXX is million we mean, say could million very week, to be think, I million $XXX million is a something. $X I to close a mean, I $X safe.

I think is say And if possible. out question said I $XXX million $XXX runrate. running. want on everything of the I $XXX open wouldn’t it’s million, is you million and a

now what spend big revenue. Minneapolis so remember, and clubs. are And the right That’s New we VIP got you today, service are seeing York to

where missing So, all revenue that’s comes see service now, right from. the you it

gets spike and margin see So, back I when we seeing up in some that’s the York, are up and service of this revenue Chicago open expansion, as well. in if spike New think we Minneapolis

seeing Florida, looking last week. it’s was in mean, it numbers, are just We these crazy I $XXX,XXX through I

So, it’s we they mean, big but spending guess open doing right. I are week, it numbers. if million everything some $X and close I down at If and out $X million are XX%, and is people slowing pretty we are us, are next at are XX% point. are week it point, a heavy some a now. we still this that don’t close money. down down XX huge I to going year two a in at numbers to months. confident. is a going to a see I be mean, very – maybe But year anytime for just XX be And that’s from we still the next years

could doing and/or use potentially $XX CapEx cash And amount how I the guys $XX are massive, flow, Bombshells. mean going you of more acquisition million, in I you I typically which acquisitions free mean, million generating even be $XX numbers million, the a free so if even $XX million massive debt that that flow flow at acquire XX, trading acquire basis, million you than or decent growth if mean, you I flow, you $XXX of deploying numbers. of are seller $XX end are financing, assuming cash to free XX much I revenue cash mean, I closer $XX much deploy capital? mean, that to mean, you or those them, are generating a… club are plus doing are be to could higher you are free million I you mean, of – at million but cash pre-pandemic you the to you million if numbers. maybe On some doing are

have done club do of at pay say where are right it. couple the go Who five, We right to five the times to That’s you are of to big and five five how boys now interested? of are to We’ve right go Multi boys. we times, going we and are knows? We the three going now, we you to two never mean, that. to acquisition. – are instead we to buy one I big we guys may going to big got give boys, times. a We’ve

say interested. not they So, are I can’t

think are to they interested. I going be

that number think good to resist. very, is someone to I going very be for call

pay maybe have higher this we at to right it. We gotten model end come on about set a guys we are market much. guys of a this EXPO to We about can’t I can talked right we prices. to about. to, the EXPO plan a close some going and the that we – close talked now. of week year I XXXX, We’ve I start that are wrapping the up really these talk things to we got on go We affecting that starting to In times. bit meeting second to now. to little am there got got couple of we’ve multiple really And Without a we mean, when meet couple it. and month of see at in couple meetings pushed, o the it of going We June.

I we we to move see forward. think are what that’s probably going as

right We acquisition are the going only. to put

with obviously, Our terms. going that. But see times acquisition, going be in is to X we I X some make that would a to range. are right the times acquisition for to prepared typical think we But X, stay offer

going $XX that. going going cash to be, million, much it’s going right, to million, larger are to do to using we going it’s we have start more cash, to are and to because a see $XX are You be cash million the $XX downpayments,

looking? club track. big Yes. on in at? other you with single are Are back I looking And there is M&A pipeline Boston mean, single clubs cities any how the

of think it deal. to before. guys they sitting until for a in we’ve right going I it the I the problem we the million have have oh, cash. never time, but now problem off figure It’s partners right for even not stuff the about is and Boston But not two love think. to I we open. is now past my point deal of We’ve said, and large focus and just and can’t in out looking that you that do at through price. real up excuse building the right we several Because even cash next that’s a said, mean, ton at bank. are they talked single probably the with off, large I do generating truly. going to be to are down me. relationship have hey make the we the me, to no cash. cash pretty thinking we got $XX it’s on Not at I’ve acquisition a at up you got right. find there on ton we book months, are But what I again. with before like, land go But acquisition. this can me is need three same a that that the I cash. are acquisition. on club with had like off, clubs to a other a some What We’ve the there needle moves, have to are

from out definitely hopefully, I’ll at And the to going we to But somebody listen go are start be acquisition. and big start of call. guys tomorrow definitely maybe large are and and aggressive we interested. kicking one that’s going right call very looking, So, finding interested a get others tires the

Yes.

the guys. timing, how you takes? refi long think typically priority it do high for you think On know a it’s you I I mean,

we Wednesday, different pay – get Well, committee for shoulder. going to a which at the without need hope our dividend to get we we away, any are dividends, the last will two coverage terms letter in I they that because at the letter, on don’t company our debt somebody they’ll agreement commitment a be us can to returns that our once acquisition ratios these two we’ll get we on things terms I freedom that risk is the want those are which And overlooking two allow on somewhat, commitment any think dividend hopefully time. negotiating - large we are

two the once probably and commitment that think three we sign day So, the weeks later. can items approved, to are terms the we kind we agree fixed, day I of I those if we think letter get close can the

close on clean everything upon gets of Wednesday, might first if we So, probably we the June, guess.

Correct.

And awesome. Okay, then, for last me. one

On tax latest the the give forgot on I us there? on in can you patient And Texas it. going what’s

for today, tax You finalized that until going paying do guys so it’s it’s stopped it paying now? or or to breach you guys

a on the past. We again big the did sheet under We protest. want don’t up balance build liability like to are we in paying

paying on on setting right the protest at So the the case we climate the ruling. waiting between case under is – right is are now, and if back court a

have sit just to basically. and we’ll wait So,

per that is then? much year quarter how And per

go know to COVID a $X quarter, but million and don’t I maybe really closed in look. it I had gosh, so million fluctuates things because I – my mean, year. been back it’s to off much head, I time. with and $X.X guess of opened I have the Oh, just have top don’t a

A year?

X,XX,XXX A And quarter now is. right it year, a is where about yes.

Great Alright. comment. guys. the Thank all me. for That’s you. Keep job

you. Thank

Please ADW with Abenaim Jonathan go question ahead. Next Capital.

changing. market looking sort obviously help And this guys blockbuster pipeline? to own, mean, sellside going what annualize to a are this just of but XXXX. at quarter. if us flow, terms lot the gains has you I with Do mom about with year? of pops is M&A? And spoke this I about how on your in just think in you consensus you double about XX thinking think what free M&A doing our now free coming can job good be cash you I are in know and you cash that’s would the doing cash Yes, year more And of sellside two be years. than

I I to very they’ll are months think next to a going don’t get passed XX be big. the mid-term tax election. the prior think gains capital

So, the of and planning yes, you a year. bit time. guys interested this we – have in on But, think five whether next need to you to little sell years, I figuring if are selling out very three are

in can these if to they lock your gains now you capital going be tax are rate rates So, lower raised. at

certain mean, capital that are deals amount, I in consensus is dollar have there think will maybe going the whenever a be, much are going and gains the with parties all raise there a is I amount looking to we be pretty they that capital dollar over to interest. both a tax are more getting we on at, gains

And out in to talking with we’ll are acquisitions weeks sure. know year club I now. I just think a are a this as we there for four lot I’ll – year three the more have We big putting people. say, we next to

downpayment of We are us $XX multi-club of if we spreading million million, a a are looking everybody scare And very it with $XX we bunch the you doesn’t for that brokers need were with acquisition. spreading cash.

to access talk the and the enough on cash, the cash can We to are cash. get building We so, us. come sitting

and few we’ll a to talked get the next four have I think said, calls like more I So, weeks. over I

how on me And the just one going RCI Bombshells? parties family And interested M&A, for expressed any – last company? be, taking it. from stock are the franchisee would in then interest Got have with them then, in franchise and joining conversations and in on of

buy, we Nobody talked that XX, now XX are wouldn’t on is I which some it’s Bombshells it’s everybody people have XX everybody when we issued wants I have working XX fine club XX, at We right and that equity. two owners know a to about issue wants because at stock. whatever. don’t wants we Because when or now. or

have We equity deal very because be with to the comfortable still that equity is we cheap. think is still,

going of idea think move better we to a to out May kind and get going through are we are as open. We with I June much lay in everything

kind of – thought more we a September had It now setting down least a XX bit, have million we confident. more Bombshells a July, idea $XX the little good by I am that little getting could two So month a a a hopefully, here – slowed down but I of of runrate. this quarters slow we and are then where did will quarter, runrate. after at big bit. quarter, a row, a in

would I they slow down, slow not busier. they getting slowing and are or Florida would thought down maybe Texas So, down just are

will don’t month And to so, I numbers don’t stay the I maybe am forever, XX XX the getting continue period. numbers confident very to for on know, just And high this kind I inflation to its in of hard But point past are right because kick It’s so it’s see recovery, that in. it’s we early seeing right. early, also an not? now, what – that

We are to I going have think, gone inflation, chicken wage up tremendously. has some

shortages you going I – are to I certain see, seeing mean. are think we catch shortages, market up

got June, $XX steady have completely huge Minneapolis all get Wednesday stay up huge, think a I kind On does projecting surprise. open so we can gave was a Friday, afternoon, But ends, deal three from day that a million XX June and us now, we York you have New no a the of business. for on forward. out, when a That’s the we safely curfew, of taking in in the New to May build can In said, window is out came April, say this back they forward. part starting open. York the a bag. So, XX, curfew time it’s when when time weeks we’ve If million revenue going right May, to we project going the where June $XX we mean hart can typically like

So numbers. We people to bit Because to make so right? build what got in. of We’ve did the ahead are – get locations time, I ahead weeks – to so that now we calls. back call taking of of will up, time got no to three a got employees get to location that take those little typically pre-‘XX

to beating So, know, XXXX can weeks can we we because bring think all in, we night have XXXX. bring we back we to outgrowing numbers girls customers, market what like the New within again. are XX In advertised June party X doing in three start days York, were up the hey – I you

and they will the want. York very think so, I And happen New maybe numbers quickly

you million quarter, right, we’ve to hits few this we million, we’d least But a got it If I – the work seen generation bit. cash it’s little are a everything of XX.X%, could cash short-term So, spend, flow at before. free IT little cash got it free we for at a of be through look if higher there there. and generate a flow could – a $XX higher of maybe the lot up like kind the free things mean, little definitely be on $XX on we’ve never that percentage cash flow generation We flow. goes if

quarter May. have get I record we flow season, September our we October will and then the to in quarter think cash free July to probably prime this

be it months So, a good for year sure. next for XX the months, could XX very

much. Very you exciting. Thank very

you. Thank

[Operator go Please with next Cash Instructions] Our from question Flow Darren McCammon ahead. comes Kingdom.

quarter strong allocation capital Congrats excellent capital years. for management and few guys. and the Hi on another last really

job. You’ve done great a

following now. just game of keep We the program. the right the name That’s

if it Well, and book think, me dialed you ever Austin a then I chance, got and for I get mean, the thank too. you

You got it.

Okay.

this about we’ve sort million point you cash program, guidance? Are analysts flow prepared talked by flow are at lot cash free And us a et number a some hearing to cetera. $XX here. of So, give free of we

like I what next I April, you months. confident the tell three very said, and mean, am now, May I can I think for June right I in

August, carry season. we through July, prime September will I it and had then our think

service of goes XX% to if continue line a revenues, that percentage the could everything If XX.X% be top So, get – to a we increase I XX%. and see higher. a to that we mean, is to this to little higher revenues, went it’s going to month bit you it’s On if right, lot number. it XX.X%, increase continue

we So, can we season, now. the October, looking then I that said, continues, we we had into prime This next the kind we point. I get, don’t our you some at at I increases. continue had are exuberance October through, like I May do don’t are ranges is if guidance. you the give just think those right our the math. carries want prime I will to consumer quarter, we that we of And can’t really But how season where And – But peak high know. for tell see to us.

Bombshells I if the restaurants peak, third think, of But in is peak last I the get think kind or our basically in calendar quarter there, fiscal this we’ll quarter new now, fourth it. average I take fourth the quarter of year.

X.X on You unit per are a basically year, $XX average. talking million about million

are Some higher. much of units our top

numbers. doing on gang, another and up open of weekend Arlington early home open late or we we well. location And working company-owned get the we September made year, to mean, big When going units location the we other looking. as are this of I – couple of a aren’t Some the the that the late early idea, to September, - open first we locations, locations as for a August, are are plan

We trying estate I are to locations. right real not the shopping right now out in hurry. and find am a

I sorry, sit I with to think, I you cost. am to because the and a the not I if right to investments hurry, only kill the two. need returns. spend return apologize got locations, We make overall to it. in once bank the hurry, going right to me and we month am It’s we the or can cash am can need we on you hurry, want but to to hurry, going – get It the want not I going right for

the rolled the bank. haven’t in that’s cash We

generating at We very now. are quarter million. right the ended with rate $XX over We a rapid cash

of the we are think end million. I to $XX close at April

get about I don’t the at quarter $XX the them now. $XX work. at And keep go that’s set But with that right the start cash of we payment it. and invest right into at we enough rate, in from here, million find up. all think don’t keep million on mean, just the we’ll wait having getting We see million capital instead to we this try right And We we’ll put and anymore. million $XX if I and we’ll find I we anything deal think we’ll we’ll are for million or pound And Business $XX just we to hand. start continue extra is them the do announced. or $XX cash a finding it we grow. think, solid every to need to if deal. cash end cash right. we willing I day, deals need – right to we

to am guess, of forward the going low seeing end. But It’s expectation. now I cash like a end used flow my at in Okay. share low point funny. really of I be minimum $X Well, from looking of I view, mean, the looking as the that things. It per it’s and

You are correct? talking quarter, about per

per Yes, quarter.

Yes.

just I want sure, yes. okay, make Okay. to

and over year looking That’s our a XX used million which plus at low the be a forecast pre-COVID to end… now

January we March and it. not and We the It good and million up is, are $XX I about month month, back back was bring back way Minneapolis through right would solid April back first online. running February now be then the definitely to end that okay. this would bringing was online. Right New the early was quarter after April, a because low things are York

know point May don’t Chicago in it to are at June I am don’t through I closed this I online keep they bring Scarborough XX. believe. think some in they keeping a politician. can closed going I We XX. quarter not But are

there. the thinking So I behind don’t out their know of judging the times. by But way is they rest the are what country,

those as will very it well. So especially, clubs back our clubs, generating open New big profitable revenue be And York are and clubs.

three six months. will don’t I So, numbers at to off to the slipping add next the for that to the continue least current numbers. see

for next bring the So, if X.X range six the the to months normal online. is those existing clubs other we three for stuff, new

XXX,XXX. there $X.X is add XXX,XXX, they million. to think by I XXX,XXX mop in maybe XXX,XXX And our –

decent week pretty $X.X million and per numbers. generate those going to some are still cash million $X.X at We are

Okay.

a is one of anything than quarters came just Roadhouse ever. biggest more this Just off also comment of Texas its else, but

food and So you hard only in stuff. selling that are the are guy not restaurant

Texas new up them friend a very looking that’s great are actually for for been got different And next very well that now now closely. doing has in reason. stores. location really right building fix Texas high We Roadhouse. at to I’ve properties they following their us right are as very We’ve two exact

hopefully So closed – haven’t the I have been of today. email But under call. the by the busy one very because I by another we’ve for next one on that’s working property have to of should checked to of my of day we – are it under back I putting to that am it end the their very to kind right am excited them contract contract, end door hopefully, of locations locations the day. the close

it. on working definitely So,

Good. hear to that. Glad

lines, a cash you large know you frankly. out guess, cash there shares say you and there would hanging is chunk in and up or along I potential floating to do it, there. shares So, I with about any a anything more where consider they the cash progress in a to be but or… I or bigger And both lot using selling to to all problem know talk use them find what nice and to those have very persons a

to, we and yes. If the at need right price,

look looking return. at for Debt acquisitions this of possible We cash already the are have would going on We the hand. or equity put not cost anything doesn’t nothing Obviously, it in us get cost and that have do it. are be we – we be do, It capital our we point. We we last can look, find. would cheap is for cheapest – are any when already we we next work, we anything. to

then? this as issuing on going we cost to what don’t we’ll does, go you am equity. calculate and - multiple, go depending Now not? okay, of to and $XX equity of heavily my against – in that going then issue yes, still those do only to about going against guys, to But we be the a are am we some it’s chartered what moves debt much things price I you debt XX, equity do are up that’s sudden, equity not put am excited what equity. Well, the the I stock if we especially and cash talking the because to to of going that, forward, equity ran with runs I at to charts, issue. think our I But consider flow I to thing about if what different our be to going to we calculations might I want are the are or going $XX to XXX, if don’t going out worth up. was we do very something smart we to all build and using run and We a points. have how – the value,

Well, Understand. you one point this for I just put my qualification view. of on from

get need it. equity to You you issue when don’t

you You so. equity Right. The when is to out you loves get there market issue issue are you not when meeting you don’t them, equity, need when it.

love they us If give and that will How them some. is that?

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– are had lines, we purchase about. those we what major a very along if know but you in talking So,

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we would block leak and in Equity agreement yes, out definitely. consider, our or

Okay.

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Okay. Are been? going there on or there there have any talks

now. are right a lots There of

we thing. the we We is now. in a with - the new right our groups tax monthly I I where There now, changing, the that, a million of smaller our people solid are done operators. having there. time some and to equity with now are of ability with That’s – if want get to year out think payment large lot with is Right lot the $X is about the talking really use are borrow talking equity note with groups. interest where cash law going is that, ability, almost refinance this cost. to cash is and to when additional we save without fund additional cash,

money. that have we So

we against that next are to possible. million XX flow it’s to be that same it’s $X large mean, I with, lot have sure. that, I use more So means cash at towards do we XX days. more going days. acquisition. of mean, It could sense make the do to borrow to we can buy, And a money for something a working

acquisition point. months our do I year, or say, the by end in definitely next before we’ll year sizable have that a definitely I of locked agreements before our the – we’ll six very in would think fiscal definitive next I think something first in quarter

Okay.

goal happen, I that make My sure. goal. is I can for my don’t but Whether it know,

Okay.

makes cash, as So, as soaking to that dividend than paying of me. best other choice. sense increase say no up a I with would agree I means far other you token the

opportunities the should Now you you And although with gets the but…. token you because a growing do other have. dividend, it just on

increase, a We to we look just issue. I need the – would time dividend We December think or would be one March. did at first

consecutive that we kind five got of for – were reviewing on I growth now. we’ve But dividend it’s going years think earlier.

understand flow another another irrelevant in but going to screaming. there be, yes, screams. is overall some So, the here, We opinion some cash it opinion the keeps

this point it’s XXXX. are We’ve not need don’t think got got out, where it aren’t a as raise. we we at So, we’ve X,X need with it to to rolling the We you something even fiscal do in months December either, about looking $X.XX dividend increase XXXX it. did right, until we

So, a about we’ve think got to that. year

guys some Okay. certainly. are any a want know, you them there made of kind on it? of you welcome But off then, And financing. And those don’t might your debt, to that seller want I deal you to you of pay some or and got there

Texas. one about paying against the assets. million. not are it single Everything we that we off else a consolidate other debt one except It off note. into this paying consolidated note The assets $XXX only is early. in There against be point. at will that everyone down. for debt, We’ve When seller paid was other The been loan will be

on a So, while. working for we’ve been it

That’s through. to go going

letter our committee few going on with they to this Wednesday. Well, comments last are to the

we’ll weeks on from Their the can we we get agreement done. is are think Wednesday. if is So, working four board, terms. bank’s Three on weeks, very quickly. are everything s the All terms price done, final I with move

Okay.

basically we right what we loans. XX the can’t is did to hands just then, are we don’t similar we final do. a to If we to going get we’ve not something interested to we retire we put will do on are forward can forward the we what it have and then we can negotiating that’s to those agreement wait. very just got that, are altogether. If It’s – that on which basis. And terms going come terms, got willing now to We’ve or and alone on move It’s quickly.

talk about at inflation, What there? are more then, supplies? a inflation, but wage inflation can Okay. bit And and you drinks not little look of also just you kind

no The beauty is is now codes. have menus. Everything right QRS we

XX wings. and we prices to a prices So, are can in give you next if our pound raise idea, But $XXX menu chicken It raised, now is to $XX told week. going our minutes. are $XXX we it’s XX of box an was for chicken

the stay cost things seeing. that ahead our of so ketchup are So, inflation be you We as a of there it’s a up. go wheat planned kind will of ketchup we we to was and ketchup are We a because ton is it’s time. zero, But going got are our ordered getting be word up ready sea those steady. goods see But really to fodders bit. effect overall, – can not pretty an of little

decided just and just It’s new been properly knowing getting you whatever And easier phone go and things need enough. Again of meeting We is It to norm. cost and them. able actually Everybody after again. want. the their manage menus phones on back it. doing now. have used to A, really a you then we just correct menus. their That so and So, may and interesting we’ve everything really We don’t ready advertise about is menu never staff, phone can were be fast of just them. everybody a to to menus print with has we the the and may way it’s stuff that with reacting that,

with made may XXX% that very sure, So, stay that. we yet, Not it but us. for simple

on those also display something have the chart TVs that. or video do that of Or people phones could like You for one a don’t a

Those we there, Yes. – that are are so. good matter, doesn’t

Okay.

So, what about alcohol inflation?

alcohol much really of now. seen haven’t stay, right that, We

a supply. like, they’ll big about is it’s Everything no up. be but back they’ll am of creates things, worried there will their tendency ramp back. – is demand The it I get not deal. other not But beauty get that. that, can’t than You

my a lot. Thanks Okay. That’s question. last

Alright. Thanks, Darren.

ahead. Adam question, Wilk Management. go with Next Greystone Please Capital

or mean, potentially looking interesting a so, a like A to do, Hey on good my are $XX lot you of really few kind the really the acquisition. I ask, you like to that M&A end huge in guys. that if talking you ago something the discussion correctly? going toward questions great. But potentially? is what And taking Did guess, environment a downside Is questions. a is pipeline? like million coming. are million potential about downpayment or about Thanks minutes at my sort looking is – guess, here most guys the I putting my questions are of can which deals the $XX where for are like I of of which on down down this of acquiring I a hear and huge you looking of mentioned something that bulk deal is I asked are

put down Yes, to that be, I will think XX%. typically, XX%

in the it of think appetite. So,

pay our So, million would I what million we Because think $XXX is enough EBITDA that A, place, like need. that one, for want systems to and IT system ready $XX is the do to comfortable we in number we put range. be I clubs an it. acquisition in our to enough that’s

that ready of an staff for is easily acquisition absorb kind size. Our of

over up what another, X on give is footprint, are of will we look it at the acquisition. staff our taking more cost more we then year to it it will amount Look in Look put one, a it might pricing oh to our them x future in scale. money the it and the I give need better expand and tweak in it we’ve our do saved. – that’s economies key get four us points, go, what wow! in it’s it, taking they’ve we’ve national with be put Look points a we’ll done. much of locations, but put And a and after we points, it savings And deal on at the size. full for later, fewer location we’ve look paid single two, operations to with revenue than like – of that large they’ve And than on which on – us seen not And us like, make us will Pittsburgh in few three may we only dollars, the think that year was clubs ran going Chicago, a less we Somewhere return markets originally EBITDA pick six between We’ll beginning. where able it had. the it actually – last significant the the XX to locations. real would And we recently on multiple, our growth. of a a at gives numbers, in It in already. got little size

paid more. X.XX the there one some only in it And like Pittsburgh so, in but favor. and two issues about times afterwards or X.XX point had actually the we in wasn’t So, our was we year. exact, was a to first just only for example, the Right, worked be – that in can’t times Pittsburgh, out I remember we

single us. was we we market new in more as where think location. buy profitable sometimes, I easier where a to forward be just curve locations for little start us. get going and these want the I whole got It you for go well. it’s better as That’s new and to looking and market to a move much do a We will it with a multi-club market learning

understand. Thanks. I Right.

coming savings so like was from are from, where that potentially mentioned be the what helpful. Thanks. you So, coming cost or

like places like from acquisitions, even markets, is to like country clusters will… imagine because one many looking just or can’t doing this the multi-unit you over there you I have is can’t when just That clubs are single or aside different or you all I that said. you – at look, so, the of And two numbers

it the club for a sure. mean, million million well operators right. money five at just ten these time, Yes, $X for we and work. These are we or out to and – All can there. It’s and I do easier multi-operator and buy individual going clubs. ten and sure. are do be it’s multi-club it’s amount to go same both try of and just we lot a multi-club or will just put I looking have one then of out out But we will the all buy to we at $X single throw, we be ways. mean, are go

are payment. what my going in days, doors on I We pound in old, it. XX call in payment was door-to-door pound Back knock a I right doors, and That’s years when Knock sales. old now.

don’t of the appreciate very am know Right. sort why of would do person Yes. are to the I And why I thinking confused ask the things. you these I it’s money way about about – spending again, raise previous into continues lowest is absolutely that talk was to you’ve capital need need or no like mentioned, cost the of me, kind but. equity. about There the

appreciate about you not I keep but more flow, thinking paying that. buy us, can happen. guess, stock, them. want I more are more I without – Not going flow, for more that’s problem, want they they how much we so No think to they everybody,

and know XXXX I I – all in back days with – like, the am made way in into all those that. no have done XXXX, what? it’s We those I mistakes you learned XXXX

equity Our gold. is

for We pay ways things. have to other

pay mean, it. right. the going at that stay valuable, we them. And look for We I that’s are equity to how will just

I it. Thanks great Thanks. me. job. love I again. it Yes. it and to appreciate That’s for hear

Thank you.

DSW go Investment. ahead. Weiss Please Next question with Doug

Hey, ask little thanks. wanted Bombshells I about a bit just to more.

obviously wondered accelerating siloed that, Specifically, well. of side, on the if if of possibility of And terms expansion. was if in club the have sort I was curious play a case, dependent the in you enough that’s mean, And I – can on if expansion of there in M&A things your Bombshells you that lot go rollout the that. of run wondered I continue if the I things to but

We find Miami we to We if were to definitely trying to can trying are accelerate right Bombshells expansion very locations. heavily. the going the

Yorkers New now. on the market all with that Florida found have We right to is fire have that that moved

locations. it. out of got calling goes down Something vacant had They bought are right by crazy. It’s Chick-fil-A. calls we now. us, We XX property there absolutely One underneath getting on start two market, on from the

condo is storey center in XX, now at project eight a entire looking property, building down a Another it. developer buying condominium on the retail

us are a and give that. can lease want we they So, so, do like, three year we

having fairly done. in to market. So we we one are issues are have certain We the that property we difficulties to have are do at Miami are not we get getting going going whether one that

right I Texas, it on a back we am are yet, West Arlington know We because love And a location to have want in it, mention sighed in. there. have but don’t location my because, we contract suburb Dallas We’ve don’t in getting the now. we to come got A, working I I going the it. email.

and another right we as are So, at looking well. now, location Houston

franchisees we well. – of So, we talking as with outside two are of at out Texas are looking that

years as far thought as the other What’s markets? of to Las ago? beginning look a at you think mentioned I Vegas And couple

For Bombshells?

Yes.

point markets in we market concerned is, kind in just seeing about we we working at probably are in what’s there don’t the if first. the few heavily. couple on At in for we of of end next talking there if the weeks very the we in That’s get But fact, Phoenix, we with some on that’s future don’t company-owned available will up stores Phoenix one right properties franchisee head Phoenix there to of down the solid Miami refamiliarize and going ourselves been marketplace, that now. and are something we’ve a

just Okay. that is the that quarter sale, for housekeeping – to? from the land I came And balance questions. first couple What’s think this of related The sheet. I

signed are Those contracts. Yes.

held way So, into though asset sale. of sale property, move we’ll for we if can’t the it. it or for The put lease an Even assets the gap will lease land lease. works, held that you sale, you don’t it’s

basically Friday. everything So lease three One properties under Friday. closed contract. for it’s We the sale One day had under contract. put we or until have closed

one left, is properties we a million. least, $X.XX have So, two, two at

property property $X.XX There their taking I a $XXX,XXX We getting will million downpayment. on sell and we are that balloon $X project there to million. was a property or do finance the they going the remodel the year construction about on are five for on

have I for transaction who and feasibility under fee. cash XX or the have a days days the close million a contract put then worthy on $X.XX they to left XX we they property have think about Another extend monthly they all XX – to feasibility if

And just follow-up. a then, Okay.

able If the back some to are many claim? of past some payments, of your to recover you how retroactively you trying years were

Right The just that. I forward. will have the what want we for. no pushing to rest going point. it all paying work now, lawyers idea really That’s stop we at of are this

motivation Our got it going big is it’s paying forward.

Got it.

alright. Thank Thanks. you. Okay,

Thank you.

ahead. Capital. Wyden question Next Please with ADW Adam go

Eric. Hey,

little But here. won’t I a disappoint. am late I Sorry

dichotomy, runrate to numbers XXX% guess, flow the know, envelope close I I parts different is. look deprecation just there evaluation something everybody the I was loss other okay, about am to flow, large maintenance money say, one just because in else getting I very, capital the this thing to to So, terms like, at I real have no private doing mean, the cash perhaps to you of the actually what why can doing am the it’s And be are equity free I getting at remarkable, and my able a of this can bit but of the guys stuff I it. reason know market coverage am to I a I versus that capital effectively invested part they of numbers big of guess, or your are that Nightclubs. like tax is equity I got are Bombshells the very of I look tax math back to plus keep mean, of been the understand when people I look doing, forwards keep our the their of in subsidiary the this refinance, But guys York I to or I part think level or use which on the being multiple and to the in these things the don’t or back it into of at Minnesota, raising you’ve the I at call, we cash anywhere estate. want buy up carry But double and of and kind business. doing question and New but my performance to nightclub I people pay is you pay and don’t look I these is what but coming, thing curfews in tax and on want willing coming some in coming is, some I these that’s the I choice look do we ascribe are in number, of little gain kind this later getting and part out in coming and you mean, throwing necessarily I that because, of so, sellside seems is not are maybe to our company state. early and XXX at back that look talking is acquirer trying EBITDA there, And

level look, everyone mean, much. the pre-XX hasn’t it at up it’s look says, much look, all So, been and oh, trajectory. institutional inorganic I investors, longer return get we look, look of kind accelerate of And starting I institutional research next I growth great. to are at the were think of and that we so so capital, mean, terms the in I coverage, – guess, I I total do you But you sponsorship. how where about cost can

have I first be we going acquisition. to the That’s think a lot the attention. reality is more big get to

are put flow to out cash numbers. the to continue We going

wakeup we of like, call, April, of you up. and a May, of forward I oh, a that that money We most stuff rolling the is see was kind see We definitive the $X see we this million is of number. made think big coming We kind back. And quarter quarter out. this we how in are setting kind terms. is A, think I get some flow move get March. June, really this as documents. acquisitions we get But cash

relationship some we order hopefully that these out today understand need But are banking of out we Because, time. the And going it if equity we we it’s investment time and mean, was is, with there some I not the us they build or interested is there raise some in are them of to you need a bank. am going your that’s worth with where so equity. guys up when relationship Because a it us. think to going I going to when need think The in I to to their worth spin banks. This them happen. even up only I – and is for mean, when investment cheap don’t I and to deal at wake need I a money call raise it for banks that equity. to want, this us are I problem though to never bankers are to sell point using make now other listen

you in am it’s But like not. at cheap you did think, out a not asking taught throwing and you back day, are in people I it’s math, interested the a and $XX, equity you equity. not oh, invest, when issuing And it’s and You me ask why because about any said, equity. yes, high. you am I

profitable that $XX And Only we are almost million where is doing now revenues is in and plus quarter. XX XX% more so point that our as the deal million are $XX free in roll all So, get getting and in Alright, which maybe are and end million and up now are$XX We I was XX XX.X% margin quarter in New million we we plus forward, million, margin our stock we say that can Minnesota get increases selling the $XX cash quarter. much flow, more from we free we $XX service let’s we cash a mean… up flow. $XX as $XX flow moves million. know York some between Chicago cash it million and this quarter. a at and fully. York we at next New free I am not is opened my in when the we

number so. the is think I higher,

and I surprised I get number And know of the I I you’ve just think know do. it. lately. been you right, me – you you’ve high because is

is question right? point, business inflection feel I guess, had the an like is, every I like has

Right.

You’ve you drill, got can are that Bombshells people calling accept. to

TAM money, I don’t in as XXX market think they necessarily a like, of XXX participate and restaurants are clubs wants can individuals you EBITDA, tell got fragmented. there about at it’s I unreasonable business right? EBITDA. children to all the sunsetting But their but United not because and many in past position. the the I strip the we’ve Nightclubs or the don’t you building a you night are that to from a far know look, anything businesses, very upside, And run like have putting is of talked sell stopping the know you I there think I in don’t States, I very, mean, are take and have You government I if clubs mean, right? why to look, don’t to your it’s that - there mean, aside, I how in think You

that I went… Definitely Like to out much said, we there buy.

mention are are good that sell of B, more you bigger – the means somebody get, the The though, are become you from because A, is they their solution or you going you can probable stop, stable capital to take more they so, to going business, you, that actually Not are a safe, they who you’ll will right? selling right? flexible to they to are the as And because likely a to steward like likely be what’s what

of the I or in I missed this are it the pitching six we but next, call, people. as could think think different within could said, months. days, I to but XX are I think, next said couple now a the I We it on probably, XX And like be definitely you be days,

down two a are larger I one, that ago, I able talk I a years them, to year but we are guys couldn’t mean, but more a realistic, I goal are towards. the pushing talk now $XX talk going years these talk ago go guys. was want acquisition. ago, I that’s to three didn’t all to are larger are go could to things of to even what go maybe and place to out going land, afford million $XX talking didn’t cash weren’t I million and We And debt $XX you of our who the have financing we the bank I million. existing going to couldn’t and raise equity. just the needed million or to And $XX the I real that’s and estate. us these We in yet. type them. guy or issue for reasons these or mentioned to

position with to we cash. So, I up we million just, a mean, weren’t in $XX in come million $XX or

of Now million going. the we June cash we the our in could have are end rate on by $XX own books at

position. a So, been This we first time in just now. the position a is – we we’ve in are

we at Now knock there, the are out doors.

be Well, yourself believe wealth look, Rockstar’s EBITDA companies. biz. to firmly a invest creation generational didn’t want invest this CEO be wealth $XXX for I and to myself. million I opportunity with who to generational I a both this build for

And in of get online, story organic marketplace that of becomes that this the such sooner all opportunity the us. reality can sooner pervasive a sooner can and cost so, our the the we we the becomes capital for accelerate

that because think and numbers. So, emphasis that on what we you great I on both the going could this look, are we place forward these I on everyone hope the great else are building, business execution call this and know I be.

you other need we think what the know world are around I people to doing.

thing. we viable can make a that So,

a on congratulations great So, quarter.

mean, stuff. and of is have obviously, at XX think a it’s you combined, look, continue buying times. X, X real markets execute I on X am but But capital businesses hate the clubs to and we cost continuously testament of sooner, building, can EBITDA and all obviously with or the at the to I way are EBITDA. with the execution. need of x I what excellence up XX, mother to to operational your haters load going estate real current the are the and this we XX discount frustrated

like going do look but you’ve to love much jabs, in that, capital, to haymakers. keep are jabs, I as got as the so, forward And the order the I to punching. have obviously, but I to we And

lending So, start I look can getting forward haymakers. a to to where us point we

That’s one in months. next I to six want goal. lend the the

So, one get six big we we in got are months. going find to what the a to next That’s done.

and EBITDA Well, lend we real a stock. haymakers need need a to for of we haymaker XXX

with find at not you to ability impressed and more. look, I going leave I biggest we’ll kind always talk I anywhere. market am shareholder. I the So, forward your some But of am am trying that your accelerate to and to I’ll plan. to truly people execute look realization Alright? more

Alright. Appreciated. Adam, Thanks,

Please ahead. private go [Indiscernible] Next question investor.

guess, and the Hey like, of a have lot guys. out I everyone up answered. that fact else how thing in as only coming been of really industries versus this are the inflationary clean already I in is, Is that’s up is and The these of this somebody alcohol about chicken. of we the that pointing just going I different across much a than to brought have what like it how from. are says where is that’s because much affect - discussion. service? it board is, percentage question that questions be out this the is really box really in mean, about for But past, The like terms the to not really Texas other as business pressures up than talking at there, looking have just you the no really are money going lines is how Roadhouse much we being might now your

we Yes. have I mean, food.

get to missed our point our those X%, cash box That’s cash to be Minneapolis I can with for is, revenues going about a are that is the down And XX% to as shrink back is or We watch how I at that’s business because am and be costs, When yes. back better that chicken this strip company . and our and have monitor back margins The flow affects real up a not flow you we is is And I all it and XX%, everything our creep about margins, we think our what again, we revenue. I X%, online XX% oh, online they everything the Chicago think, and company the see that is to of those things. coming for know, anything they online. they running and can’t look I service at Adam well or people are that’s concerned X%. excited this was, but XX% happens the say, excited that very reality margins. up and is of it’s can because back why wings, be when New to talking used am that wait days well is York margin. you be you

he You furniture that’s it of some money, this the and brand a $XX,XXX, to is are that. going new calculating me, goods dollars I’ve sales got new and I to free some hundreds coming it’s $XX,XXX, hour always pay VIP can associated, on from And we certainly benefit has room just me call That’s cost for whether revenue because service tax which VIP room in cost going per it rentals. because the of entire generate remodel I a no carpet. in

like thing time. and that. lot quarter on club share. I redone mean, your Thanks for bucks me you it if great. acquisition is leave about we I the main that that’s the guys Well, guess, another well you it debt just get this I’ll seems had and and a at big can are our a for XXX way

Alright. Thank you.

investor. Next ahead. question [Indiscernible] go private Please

are I with Are the you are on you restrictions back, and maybe things just with question seeing growth rate some way are getting back? diminishing you data XXX% had that you mentioned wondering come the just sales XXXX on had maintaining occupancy Or you some – itself? that rate getting on was return taking lower occupancy. that? I occupancy XXX% Hey. against seeing the in last like XX%, quick the and Miami, a dialogue like had quarter,

you’ve is seeing the In And million as to the – over occupancy. aXXX% said, numbers, back are in and we at see Texas to you as seen revenue April. in we’ve XXX%, $XX are April, big quarter, yes, I Florida back XXX%. south last in we think

As the up, going numbers occupancies the are up. going are

how now over confident six numbers three going to we or months. down, went been I the that the the that really call at happened next maybe as up And thinking will I’ve months, do more far all. the the as when but that next four So, cautious go much I I over am has very three we’re I not to numbers was last in was not cautious occupancy am the in believe months trends. to it get my I saying XX like see XX talking starts a I are I it two but patterns can trend, when months. months I the me like thinking But I trend three gives fee six trend think the when that a we a And gaining that’s start real. that’s to months the where – months confidence of is I then trend have seen really now we’ve nine I Bombshells and numbers. fee as

big, a nice the a two steady is of revenue Bombshells quarter month $XX which from ten have period then row six we’ve big million We here stores. now, quarters the in this is in seen and

a stuff know weeks where Until going very problem. extended June are range. be have five, that with I said like enough because don’t think have don’t the data. we quarter. just being. that’s up and see ran next I only of be hours no through up on open Bombshells going I confident, over April to get think very we we am six we in all – occupancies. the numbers we higher something to as September this time I do range, way and I at something consistent consistently go I curfews, in or changes, prime it in we can – is think I And consistency for the are and through season. less very that say, I Then runs from May I those I more the our Nightclubs

numbers we around slows little normalize okay, to even exuberance normalized are down now this consumer the going higher think is here. bit or The could start we I go seeing a growth a maybe and level but are get this. going to and going and stay like have idea we from at go going week. we to we off And that per We number start data. we’ll quarter-to-quarter x more as

Bombshells, with the I you on from are comfortable but, just mean, to million XXX% in like they you I went Yes, they XX% Okay. – way March. figure, $XX said mean,

growth So would the it going be a then? than seems covered mean, at least your $XX forward March I February. you bit losses behind in in million probably like more your doing – little like,

operations the they for they shooting the before very locations Mother’s around with sure still Saturday didn’t We did know record very is big which they break we know very, a very a that was – Canelo number a at where fight. record guys make and I for. it be weekend, still the the might. fight figure off the that it got which have email happen, I I we But that But and our country showed Day, us. has were we the total fight a the did they is the for a record sales from five, night, – for profitable Saturday weekend been a us because didn’t Saturday

is I mean, really too right purposely flowing gear that’s guess, we everything sometime everything perfect. Everything I now. at So Well is going goes where just – now. are when right

and are running back guess, up those as revenues following. and it. York, laagered I New service cities Appreciate are Okay.

cash is push the see to increase. with continue should got for. what to flow stick right we we’ve That now and And

Okay. I appreciate it. Thanks.

you. Thank

[Operator from go with Please Instructions] Pendy ahead. comes Sidoti. question Next Greg

Hey guys.

about on guidance Just CapEx? one it? us quick on reasons final sized as to How got the obviously, for a you of give right it think one. little the bit obvious lean Can Just downturn. just you

Just, spend is of there coming? any kind will be that pent-up

spend. not we going It’s typically, we’ve $X to that that, next to raise in expanding million. are would really a million I say It’s six locations. couple bit of be a I that little I $X think probably the the pent-up months. been would saying

$X expanding going the we say probably months. $X.X to over probably we maybe were spend know So let’s $X I now. another say, million – I or we are right going say are million, striptease million six next to another to

to going to are We footage some square VIP the add room. upstairs

private going there. space VIP offices more are We a convert upstairs into to some

San Antonio. club one a our a Antonio liquor San of redoing are high-end and in converting We clubs club BOYB in into

froze some damage, The of is say, damage. a We closed had ice So actually I’d damage spend will flood in. ice be flood let rope there. or The there lot the pipes. pipes

So you are some to see going there. expense

CapEx I Now, comes But separate think some insurance. don’t line. I do be in through in, maintenance and think of so. we insurance reimbursed that will a

So, we on but not, how going by be are insurance the don’t offset that a know we flow, free of way, have that. to cash you some are washes or I of will there that – CapEx, that’s question. our But some Bradley a doing gain that

to maintenance expense as going well. CapEx, some So to that’s add

some and think had three damaged, there two were more in I at that affected. were will where were the that clubs larger damaged I claims club this – affected fixed expensed were side be we will that locations larger nine of probably the Bombshells clubs or quarter, insurance But are think the already be affected. the Bombshells and and

Thanks. Helpful. Okay.

the Thank you. to for would like I turn Gary Fishman over remarks. to floor closing

company And Stay visit Thank please Thank you. and Eric Stay Bradley, our Eric, healthy. of behalf thank subsidiaries, the good our and you of safe. you, clubs one and all restaurants. or night. Bradley. On as always,

This teleconference. concludes today’s

may lines for You and disconnect your time, this at your you thank participation.