RCI Hospitality (RICK) 16 Dec 242024 Q4 Earnings call transcript

Greetings, and welcome to RCI Hospitality Holdings Fourth Quarter 2024 Earnings Conference Call.

You can find the company's presentation on RCI's website. Go to the Investor Relations section. All the links are at the top of the page. Please turn with me to Slide 2 of our presentation. of CEO Moran, Mark Equity Animal. I'm the be host of today. call our I'll coming York New you I'm from City. to today. Langan, Eric President Houston Bradley and Hospitality; RCI and CEO CFO, are Chhay, of in turn Please to me Slide with X. exclusively call this making is on Spaces. X RCI and [Operator being conference Slide recorded. Please will to is me this Instructions] with session A X. question-and-answer follow turn remind our Safe to statement. want I Harbor everybody of

any information from that also explanation of Actual the results uncertainties. in may You Rick's those anticipated. as of risks currently involve a hear update X. turn to or occur developments see and me obligation We call financial this that I non-GAAP disclaim differ to you Slide disclosed afterwards. forward-looking materially to with statements result direct may Please may measures.

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

increased This a second us to first total quarter and due quarter declined you, All Slide are year-over-year Mark, EPS. in a Thank in turn fire sales company sales otherwise lower for Nightclub X. XXXX. was the of -- the comparisons thanks to resulting fiscal everyone. takeaways. half Please sales time and noted. for But unless Fourth a the hurricane Key today, since joining same-store first row.

of provided year-over-year. However, fiscal all reduction increased. shares free year million non-GAAP We 'XX EPS, and X.X% cash activities by a outstanding, ended net operating cash flow with X.XXX

the to capital Turning allocation.

plan. We have officially Back launched our X-year Basics the to

in considerable of quarter made quarter back already have -- plan. fiscal progress shares some this current more continuing XXXX. That the We buy implementing includes in to first

doubled to since initiated fiscal $XXX CAGR strategy the million X%. debt $XXX reduced a rate the closed has our capital than of Denver Revenue grown and to from of significantly Bombshells Hall, we also We underperforming RCI divested end XXXX. discontinued more turn franchising. Please X. X has million, Bombshells-related allocation year at Slide locations, Food

our XX%, a $XX cash from More share XX%. $XX tripled to of importantly, flow free by CAGR million count while has million, fell than more

are have our to achievement. of all partners and who this proud made this of We Thanks possible. employees, entertainers

on Back making through focusing X. our Looking we acquisitions. core the and businesses Operationally, plan strategy. Please to build to ahead, Basics this Slide Nightclub this new means on turn progress our to

Bombshells, means the finishing performance last locations For units existing construction. of improving this and under X

related allocation, includes Under cash allocate Looking most at our XX% XX% capital and $XXX to X of to will more we to next that the generate is expect will debt of years. we of we over repayment since than acquisition acquisition, plan, and our of which share million club buybacks the flow free allocate debt dividends.

targets in Our reducing free less. more This details. fiscal Nightclubs million share business. cash to it per $XX hitting to and turn our would a Slide our X million call count flow doubling are in X.X XXXX million share for where flow is free from in cash core today. Please of or $XXX result revenue, for

and in significant high steady every to underperforming portfolio Currently, in rebrand, in divest locations. will because are entry new business evaluating cash generates call, this are we love flow. margins. or an we anyone For club There clubs and to estimated plus XX% barriers this RCI and reformat operating it we produce our

a return As margins Bombshells, for is our growth. operating segment target for XX% same-store the with to sales

hits run. occasional on million for the base adjusted best and acquisitions, an maybe of clubs Regarding $X buying EBITDA year, club goal a to acquire is our focusing

the real Xx target market estate. value same, Our to and metrics for X the EBITDA business for club remain fair adjusted

deals our combination finance to of bank hand, cash continue with will a financing notes. and on We seller

improves. valuation consider and also if will using stock We our when

X-year returns cash-on-cash continue within We period. a to XXX% X- will to target

if and flexing the of shares, stock anticipate of and buyback we buying as implementing cheap. regular periodically the our a For program particularly plan, the is to buybacks final stock part opposed up

We amount buy significant if expect right. of stock is price to the a

time, is what business the stock our our over of can do this of trading where is view believe capital. a we Given and great use

We Based our very believe plan we we million acquisitions. dividend achievable. record, XX. to Since fiscal on planning annually. Please our of and X-player are related Slide track completed turn small also XXXX, club real have estate $XXX is increases

We disciplined have on stayed price.

acquisitions We there's have capital in of We as have operations to pie a chart. the and for financial with we lot grown. able larger our and more improved we've think amounts performance goals, consistent as runway been deploy club illustrated

on year we timing, can't our to X-year or goal acquiring of very XX. average predict achievable a basis. Please we think turn Although, is per the of Slide million EBITDA size $X

rates see can conservative financial you targets based Here, on key our performance. of that past somewhat growth of the some anticipated are

do not also Slide goals. achieve Please XX. to to anticipate turn our increasing We leverage

We growth. considerable X progress plan. made have our generated of on same-store sales business, our already positive have Nightclub In quarters we

underperforming in on Hall Food marketing We discontinued closed working we and sale units. are also divested our business, Denver X as In early estate earlier, the potential have Bombshells I that franchising. are real We mentioned we for acquisitions. and December

fourth dividend to of we share -- to path to and continuing reduce are $XXX In free XX.X% increased buyback allocation our capital share by take the a million first the we our flow count. look quarter, of updated to of we grow Slide revenue, $XX We million increased will strategy. for turn and cash reduce continue capital share addition, our our company is This the XX count. Please program. during our to cash

to Now, for over I'd Bradley the performance presentation fourth like to review the quarter. to turn

otherwise sales of Bombshells RCIHH common to due noted. you, Please largely million. September. income Net and $X to XX. a attributable to EPS at declined amount All was This closures the Thank similar Eric. sale quarter hurricane-related year-over-year San Slide early Antonio in turn $X.XX. shareholders with declined are comparisons Fourth unless

our declined by a EBITDA X.X% $X.X of we This going and sales adjusted Houston and sales declined free through key service lower to increased some alcohol and some million. Please increased were from cash cash to $X due other lower The food, primarily turn closure million, million XX. by Net reflected to Alcoholic declined other reflected growth, other X.X% merchandise Looking changes clubs X.X%, $X.X in other differing Hurricane at Non-GAAP revenues metrics. improve service same-store activities XX increased our club increased X.X%. and provided increased $XXX,XXX. food Beryl days were operating primarily charges Slide area growth higher at Impairment July lineup. that EPS beverage rates and million. $X $X.XX. while and flow revenues. Nightclub and

XX.X% at $X which was turn declined reflected revenues result, a sales partially negatively locations days was lower. Please Hurricane million As higher, Slide San charges income were closure $X.XXX same-store reducing XX. XX decline, non-GAAP affected to by Bombshells This gain debt. $X.X primarily a from million This due higher. operating by reflected was impairments, other Impairments Beryl and Houston while primarily a offset million. million area Antonio-related to in July. $X

accounted fiscal are divestitures operating to sales of even there segment's result, the divested was of Collectively, Bombshells These compared a to the an million. $X.X impairments non-GAAP million. the an first was however, $X.X operating Denver XXXX. quarter XXXX. Hall, though in As events X occurred included loss in $XXX,XXX to million performance. for income anticipated improve locations of and income locations closings these a these were and These compared in million $X.X basis, On that $XX.X Food

a $X.X expenses million Slide gain turn XX. Slide modestly less million in Excluding the collective on on they and and impairment XX. sale, $X.X million. Please in by Please to a increased a to non-GAAP $XX.X $XXX,XXX basis. little lost Corporate turn

slide, we discuss free that the a turn will fourth cash on Slide couple up non-GAAP. slides to wanted are operating operations and equivalents quarter closest which EBITDA, by We cash $XX.X of ended income the coming that, of this provided GAAP which cash have with and advance cash present We are adjusted income. XX. of and flow equivalents million. net Please In to net and

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

amortized remain was is cost year declined should further reasonable a note early average The X.XX%, X ago. percentage and eliminations as throughout San and This of June other and year-over-year. a grow was adjusted XX-month revenues, X% $X.X sales higher in from paydown cash September now adjusted EBITDA scheduled trailing have to year recently and XX was EBITDA Antonio of flow million rate online Debt the to from to anticipated As reflected at XX%. Please third declined only Slide Debt and This was Debt more of XXXX, quarter. from points come fiscal those million X.X% basis manageable. weighted $X.X occupancy was XX. XX% to than locations and and continue maturities Bombshells Playmate Total X% at the of year. to XX. that turn the -- paydowns. decline debt, free similar interest open X.XXx, from

here's Now, Eric.

Thank turn Slide you, Bradley. Please XX. to

inspections. We X awaiting Denver have Bombshells is developments. final remaining

and is planned El We Chicas time reopening for are football for X. Paso opening targeting a March championship. professional late and is January finished Locas

are new We sign-off at X electrical in the about Central of Then have waiting construction. City. we weeks Cabaret for more Rick's plan

are through and Interior April We are at to being are weather. bank The we underway loans, through there. I'd free Bombshells both financed targeting Bombshells targeting well bad opening. to Lubbock avoid construction work risk are at stucco opening of is we is an framing April underway an loans flow. rather note in Lubbock a cash like May opening than construction Rowlett and construction targeting Rowlett and current that and

of teams our our waiting the Baby their say engineering Fort of and club you Worth thank like of Dolls burnt I'd possible. our to the to work awaiting who Dolls plans down. we dedicated still believe for hard and for to We that Baby review loyal to are and Fort and all are effort make construction all for and West rebuild our success Worth shareholders our all permits

forward Mark to and what for Now, are questions open I'll concerned. look you to hearing

much, Thank very Eric. you

I'd Scott could to to To on you're Instructions] Scott Buck, questions he is Before if [Operator as available please shareholders. things largest well like we'd speak take to start Buck, I here. like request call if as Rick's from you if continue, off,

you're the anyone if D&D you to we speak with open we please looking like Realty. to D&D and have the We questions. [Operator It's Instructions] audience, I so in add it have there, up not like So, please would away. docket. out will take to this to request Realty, Scott

speak. to unmute have to yourself You

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I got you.

Sorry.

you X pipeline, new about have or to currently X that do After think clubs non-organically? them guys through development in work opening development. you purchasing that organically how construction properties you are or about So, versus under

do do anything Probably because of outside acquisition. this time. to long going of was of suicide. with to we thoughts want a for way open We're get these No. growth very high our I else not --

we anytime think else anything probably building won't start I in our not anything 'XX, to acquisition to don't on for else try in soon. And see anything build 'XX. I growth to we us 'XX. build we're don't strictly stuff and going focus look definitely in if

it on. from I strictly we be decide a for before few will anything this to So, look going at point build to years We're growth else, believe. acquisitions

Thank very Realty. D&D much you

Next have up, Antonio. we

the My out challenges business the question, about interesting that plan? you've model the with on you the X-year XXXX overcome coming of all got top, what with and brand-new being through future excited year an

just justify a our cash I estate locations, we real the some some of with money the do years just visiting It's and as back at the continuing how properties looking looking of to of generating nice then really what's in kind of or has we've the later business, seeing basic some years some X locations just and properties our are where kind originally. take we rebrand, our to trying a through and eliminate again, enough it? That should that thoughts properties and out as due think focused financials, are the at that big sell bought guess, even worth operations, 'XX. our we estate to just real another unit of lot operate digging the to performances core flow just actually to and crazy mere Class should was should plan loans those we've on. use really here to being and the allocation inflation, But strategy of our a in got again on them XXXX really into due it's real a we and of at clubs that we of increased. used value part through increase, much we ago of else our come where something And XX of the saying, lot seeing to back capital estate back some getting value club as going figure are getting we really out high A estate a I some of real the freeway offerings and looking

I that's day. because I that locations hitting last mean, of model And $XXX,XXX taking of that now? Bitcoin something how a the some perspective looking? interesting right. your it with -- business know taking while one is Bitcoin are is Is that you've for All been question. Like that a an

actually because to transaction. see and U.S. New at the we and York go to have Bitcoin look the I'll don't dollars at point is processing. how clubs Miami the much see convert of actually I actually and

I So, see. don't really

So, well. started I we Bitcoin taking I have as in, New Twitter a actually and been how and And very know. at how post out let has and see much going find basically like on look know will what York that can especially I program to do I'll I in special we're But Chicago Miami. everyone think that's in that I integral, see go Bitcoin. in to us. for

suspect And he's these we a show probably are it. not is stock if high of that on great getting I got following anyone prices, more So, Antonio, investing.

You on want Monday. throw follow and show a him might see to a

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Mark?

Yes.

actually pull Buck is as a on. speaker? Will them Scott up you

request, on try will Jacob showing to but Scott adding while and not up Jacob is he's bring my I going up Yes, first I'm speaking.

it away. please Jacob, take So

Hello. Do you guys hear me?

Loud and clear.

out perhaps you the And this, you a could on but mentioned I interest is LOIs, up? environment? put the Well, been things has color had couple in like ago guys you M&A give remember that you but yet no some some Great. mean, more quarters Is I of occurred. Geographically, deals heating mentioned from where that objects?

what's of climate. there So, happened just about wondering kind the

of on approvals. they're Well, we're working that phases we licensing for all have waiting We're X right now. different -- in various

get now. And so deals right there operators We're licensing approvals, with those other then also those announced. we'll closed we talking if get out and

deals, is point kicking going get a harder So, to forward will our lot core strictly be stretch more for is We'll and acquisitions. this to parameters lot at growth done. focus looking not we be stay our within and a from tires deals but

move ones the continue 'XX with for past have $XX we 'XX. years some as acquisitions. We're we that the for to going been over assume forward, in acquisition million the I and seeing the in looking So, we'll few some start $XX.X -- million larger acquisition

that and size. probably between we're so look starting lot at of now we're now And price. smaller looking in to A at purchase right much million some are acquisitions million $XX acquisitions $X

a million bit hit and to and year a target $XXX year revenue points free couple little same-store XXXX. but smaller, hope and there a our be XX% flow of by enough our goal our do get then cash So, million will per and we accumulation our to goal achieve of million increase grow $X we $XX of sales added

each closely So, we'll that be monitoring year.

Yes.

currently you evaluating, and in So you're that areas clubs are that those same still operate those the in? currently

We're in are areas, for a same states. make us. Everything little Some in bit those states licensed the mean, same different easier same. the it are states. Obviously, in is quicker states. some in I those

a new probably now. the taking states, couple on is of reasons at right of more couple a little a time looking are on we're ones which We working

hopefully, So quickly get we'll of and a -- through deal the hurdles closed. year after those but first get the relatively

Thank question. you that very much for

are on Buck bringing up. We Scott still working

Take go. it There we Well, to However, this your take Please question. away it we're we for waiting be please. have unmuted. with DJHLS. away,

Yes. Germany. A from shareholder

fire? a ] hurricane So, really your many region which by for are Isn't located there any locations Ian hit where locations operations. hit those you of compensates in your Hurricane insurance or [

the period locations. in If have a we're believe claim a a there's I [indiscernible] closed of of large for yes. destruction or few time, enough we for a enough long

deductibles have that reach also have we to first. We

done all accountants most of that's insurance so the now. adjusters with And the and being

enough payout So, there It may than may some loss point electricity, we insurance didn't on just be or other hurricane business on so not. our those at there do a wasn't have lot the I And some properties from all our other that it. markets. wasn't don't to there than in carry have open. just -- properties couldn't days, we of we information damage

currently Instructions] [Operator question. great go. we Scott, to and There coordinate. Fantastic are trying we

just some You questions. sent

we questions. the -- to H.C. the messaged of consider the would under Buck, bring me Scott plan, is, Back Scott excuse dividend? since And his Eric, Wright increasing So, cannot has first the me, Basics company he one Wainwright,

The is dividend not a use capital. really of tax-efficient

However, I with buy think, do our DRIP like a the do dividends, to do programs, they when starting to them the lot stock the the dividend shareholders and of many like I their of dividends. getting get especially

dividend basis to raise have to annual continue dividend. We an and gradually on we will continue and pay to growth that slowly so continue that our

years X growth basis. dividend constant on an we're think dividend I and payments constant of annualized

us with through return buyback. So, X next the I the being along at majority continuing that see capital years, for our done of least

Fantastic.

Scott purchased an Bombshells of is, sale for and value what the to so And Denver which additional has potential question, was real him estate Food understand values? the Hall closed

million Denver Food for Hall. $X.X the

Bombshells on we leased weren't wasn't All rent to viable most just their why continue we decided that try and of which were third to divested is to economically locations operate it those. -- they the increases, just

As combined. lost million fiscal 'XX, out, units those Bradley pointed for $X.X

So, own on. locations, forward, the decided core we of that move we property those focus on to rid get locations just the

closed own one that have we property are because numbers close that that location We a was the we to on left unit increasing it.

well. it on a it it, going are then not, I'd point that seeing we of unit that X.X land estate that than have it on and some have that. the sold at bit of if go keep does divest We the may as to other the we'll And development. unit an on requirements money additional if then meeting we more starts built we sit margin way build our building property So, acres all than property actually around there. we're look. That on because it increase And and that buy the to little we any we part in off paid sitting don't XX.X-acre for money was the open. that to sell real

plus property. we are on that already So,

decision we'll probably make around just not to months, as So, if well. have X or turned can X that see next we a in we'll the to get that on

shareholders. that. are, up And one a to those Fantastic. Thanks we bring speak so from before much if what larger of about asking I Eric, could have And to he impairments [ the specifically ], you is our that. and Camelway question submitted for me

that? you your do Bradley, want to handle of kind It's expertise.

of are impairments write-offs intangible basically of license, of SOB either goodwill doing They an the the stem basically value accelerated The flows such against various analysis assets sets discounted cash future from book of assets. assets, the or as FF&E.

quarter, this in we fiscal we the year, current $XX.X had for million. So, And had million. $XX.X

like increasing of free increasing, driving us from in this Mark, -- me, impairments. lot to these is resulting so my understanding, flow rates because the and the are of down that and I'd flow rates cash and correct free Bradley, interest of a discounted cash value

So, the operations or the non-cash. they're is cash free at really all of don't all. the affect it reality all And they flow at

Yes, Eric. they at cash don't correct, That's the affect flow free all.

[Operator it much Fantastic, that. away. Instructions] take guys. appreciate Very please Camelway,

There's going traffic. There's of a a going on. activity on. Any and area, and agriculture work. Phoenix? in really of traffic I It's Yuma plans restaurants of your lot Any of industry of Yuma. there's expanding like Yuma beyond billion opening plans $X.X a lot a lot County

have at restaurants into can far if any were restaurants, nightclub have existing we operations mean on. additional well in the new this than point plans building as find U.S. X no at I I market this But construction of opening them the any any time. now that no, buy other in desire already as right we we don't we'll

Bradley, [Operator Thanks so Unless there's that or anything or to much, like else you'd Eric. opine about. on Eric Instructions] promulgate

one request now. We away. it take Wyden, please have Adam

up? This You is Adam Wyden. it Did me? you open hear guys guys

got you. I Yes.

of terms what I I balance the non-income-producing much selling few the a those you think into being sort first I of the property of save about much the sheet is that balance at was of you're Did down another all? on is expenses? monetizing assets in by Perfect. much selling EBITDA from value estate? guys call. I'm talked that's you and got cash and EBITDA guys dragged planning value taxes on the not the could real operating sheet and sort and you're the how call. sorry, part questions. this how you the of Have framework on And pieces how real monetizing planning estate you and the missed that for on go on the

I up the up this but have about, Pearland put of in into in site the head, well, acres Denver the to in food Bombshells additional for it build top -- XX really, sale, Grange Pearland. my go in we that call we we've sale, hall probably didn't plus the the now next have XX for

We that the to We at that -- good million million of have in to estate with to value. the that properties going one try Central some of in sell, City prices. probably very we're real casino most been to neighborhood people of meeting we've bought $XX $XX

have dollars don't pursuing And that thousands near in we of head, estate far whatnot. but actively don't and real as XXXX. in my But top moving property in it. costs, the that between amount of insurance know a it's of carrying the taxes, off of are hundreds as So, anywhere I considerable

about around expect ones in ones Did it. opening you guys Got good XXXX but talk down where expectations up know to if you've sort the this, now has get and X the missed Bombshells of about a got of sort of, don't your the now -- you've I margins bad margins talk I ones? you closed that new did you're of you Sort of X you're out anymore, margin gotten and Bombshells like going ones Bombshells do are I have sense bad and in to you settle think building generation where rid for changed 'XX X beyond? but the know not that open? you

And exact seeing have start number, we But on units. we Bombshells will an can't targeting margins. their what the core but XX% new looking the now if those there, ones and to we actually are right is growth. Without we returning do I real progress, sales can at same-store else don't get with Yes. open the

I because going down left, rents drags good changes be been we've whatnot locations really in not single stores we at do teams to on in If quarter. some managers strengthened the that December digits, positive We've at in the doing. and units. think quarter, this have need some this We've at also managers. we're made management teams. We're XX% that the biggest eliminated not stores high close and focused least our very we of XX%, the up some and those what to bad able to build our with were

management were able those to the I'm out the difficult definitely optimistic. of We're now. close that and the we teams, strong So, all we space in sort right kept basically teams moving units right build people direction. we But as through a is space

sales single day. about the bankrupt few every had If going operated we except And new news, percentage is location the sales our very, our can that things We're late well. it making focused it it -- years sales alcohol on party a We're a margins our formula very the as focused on about out back. night. Everybody as increasing there's and and each just making complaining we for again hopefully, of at find fun, strong. read restaurants total XX first these very you magic we that and for that are very papers, there, get

now. next months, well for So, if well what we'll get what right way and a idea or on targets is of we're not. us the very progress X over shooting XX% we're our for But our I are working is and done good we've think

Yes.

the guys So a -- together, which again, pretty if buybacks, mean dividends less straightforward. XX%. just at put guys acquisitions, have XX% I'm than you you I is that looking I'm deck thing, XX%

low. have -- pretty when periods time of I time know, periods There comps obviously, -- lumpy. you high, when have they're been there do guys straightforward. that's been of So I Is mean, they're the have

to on the locations, pretty new got strip rebounding X, to It you you You obviously, the guys that mean gets X seem XX, you nicely Bombshells I to Grange, got you clubs. XX closed be used is -- be then the smaller. once ones. to going be

You obviously...

And San as we well. Antonio sold

Yes. No, with and it to XX and new opening. ones went XX the you I X but know, you Grange then down then got was the

So, you'll will to be different. be the composition back XX, but

not or XX. XX I'm sure.

-- I I'm confused... I think don't it's XX.

do a But at -- Nightclub to sort the point, as business. sales, to as percentage is you not of huge the not of your percentage be this with have is you're comping of percentage that larger have of -- think Do can be a of in a more positively, Bombshells still And the to X% business. -- M&A, you're sort going can Nightclubs I business? X% you And to there you will of the comps back you back get doing mean now. I sort it. into going

to going to or this there Bombshells be of flat, sort close is it hopefully year. on You're Nightclubs.

business, to there is lot Bombshells of we there opened. the just whatever, are Is can the at like comps a Maybe of the the resurgence maybe a for what a I comp from get You'll back mean, total that that unrealistic to get X% a term? you a those if resurgence. And basis percent. a bit a lift have and do long guys X% Hopefully, macro. taxes get company think to little impossible? suffering. you of it's on you I can think for doing on few are ones tips and Trump new as medium-sized said, sort get you we restaurants mean small,

think think. I mean growth like I X-year And are, well to higher. course, going then plan does spending side. things not affect mean here, plan. would do for in to U.S., the government think I'm I just and on well, overall U.S. little if money they well. there's spend impossible. a X-year on lot a we our of I of I a the see would this If in U.S.-based, will shooting it's rate drastically. it's minimum cuts for work see the I foreign-based X% it the the if And as economy where much the government they're over more more depending they're we more right now opposite

putting just watching cards every we're really dealt short-term costs, money and that if we with our one X the core we think some the say, money are And I on through I X of in we labor, been where that XXXX higher and now much window fifth to and got it's we've chopping tied on in at, maybe going need it and you whether our watching and call cards, because up got where and places We've we capital focused equity? return we at revenues a -- trends What's wait make clubs the table the those playing my make with sell places I'm markets. equity what's that return have very some it's plays and is focused or by right capital, -- whether So, able it we're especially out. ROI everything how about can a pricing, how or lay and asset? business improvements I'm month, okay, on we -- been else -- cuts financials Bombshells security it's right very use finding as the going have on increase on to adjustments staying looking hard whether margins see to on and and to very someplace the more -- and very, those get and this asset's dealing look all and through the rapidly our left. there we best very all and we're hard not? look we just out some much adjusting adjust, eyes, are asset Bombshells there things. Like leaving to with those things found make our everything said, We've if were maybe we've to now I block

other adjustments, I'm with got locations some small me may maybe those private you those another X now locations buyers us we've X, X or for made surprise made they're how right just as over that go see us to that's talking those X few list and So, see changes. months may locations. We've X us. on you sell a X, properties for And see next use -- thing some very the very generating sale we're focused -- from We'll on. smaller put if enough? I into put to we call sales our effort machine our behind resources Or our high put our that of it that larger our of the resources energy money Is location. machine best the business? a club could in return make that's we is the to $XXX,XXX, people and a side is making worth on time, -- and more And it those still or million basically, $X

on pretty a there's really a everything, about much basis trying lot weekly we're So, get to talking that so. basically things to and of

XXXX go you about CapEx close renovations. -- talk Did to back lot you've how would you Bombshells and on is the your Like level, casinos mean CapEx and in guys the it. like your to CapEx you expect I -- right? your the your for to you been maintenance guys and normal a -- the spending

$X.X million at and packages remodels. year. entirely AC X roof did the plus a million last we expense $X.X or about considerable We Tootsie's, new which multiple did hit We was

lot last a was CapEx maintenance So, year. higher

forecast I I we'll little -- there, million under. close I a pretty maybe even think to for XXXX. get we'll at $X think back in think we're And come

money Right. If probably be from has of spent on And the if I million I'm right? of deviation M&A, capital would Bombshells, it, like about $X most if the right? just only CapEx, maintenance backing think been into

CapEx, total that's Yes, not so. CapEx, maintenance

already, saying. I'm last look Bombshells have you mean, no? estate, been you real if at least They've already is did the or for probably open. spent you done, did that, -- going can Lubbock, what money most if you saying Well, lot I the casino at Denver tell, you -- the years, what you've so out mostly Rowlett been spent, of has like bought the got been you Bombshells going spent. to that's this, few that's spending capital the I'm be the a Bombshells on more been from no? like mostly door has I do

No.

is this week. said inspections believe both I inspections. Denver had final As call we getting the Bombshells, all done. earlier, on I We're

store hopefully, week, on liquor this Thursday. done. then the be And will X is then scheduled we week, more We Friday for that have I and believe the have inspections following the final inspection

we will other more start-up So, but I there's costs sales spend the not much start-up we mean right? startups, money in to immediate by than have costs, open. always be offset January as

costs XXnd that January. the somewhere And the with store open XXst any most start-up or X. of on to January of be So, luck, start will able we'll

other locations those most of financed bank that will construction offset costs be second will the quarter, quarter all 'XX. be The the fiscal for X in now. are which So, of

company locations. no actual from on there's the cash So, out going those

Right. pretty for this be point But is a big my down CapEx. will step that like

If cash do to So, year. M&A, to projects. these going no buy don't back back a had in also you're of I about stock shows next you're know you no up, you you talked up, M&A at if if to the bought M&A have going have but cash lot levels. flow to but And shows 'XX,

stays real have guys would going to the no the I if you stock war $XX you stock here, If and buyback, be back if CapEx think, a going on million you're of have pretty there's to going buy door mean the no? down, chest right? pretty M&A, going I big to the active are estate out

portion We debt had. day. to paid we $X XX% some have of we back stock. active off, including moment a of are amount a We cash going single extra at considerable set that we cap every did big about stop get debt have worth We that a did the of -- and million additional buying don't we're

We regular to -- total X down. Xx. we want basis, very our That's have our buying under only on on I debt debt-to-EBITDA bringing So, but to working been a Xx, also been back under target stock our get our not always to without far basis. most a because on load Xx as we it's high. at too Xx real but a of estate stretching can our keep debt know like of we related, go

you're But I a... mean, you year. under I don't next Xx -- have should again, on

a look was I think trailing, at which so, end September of too. the X.XXx When we XX. at

definitely are working that. we So, on

don't I including balance $XXX but I June, you as -- of front debt, of have and of had sheet mean million September leases me, the not in as cash. $XX million Yes.

debt in million $X.X quarter. back the paid We

how have much cash you $XX have, you you And have -- like million? --

and $XX close end change at $XX we're probably of now. the to million right the million quarter, but pretty yes,

million, less but more estimate the lot $XX take on assets say, for I if if a suspect $XXX If going by EBITDA divided $XXX than $XXX million So, you're these got all million consensus $XXX I'm your doing my even that. number, online, do have million, Bloomberg million you is you just million. But $XX to coming did to the I consensus is right? were guys math, we what --

million, -- comp if think $XXX your up $XXX you of I these to things can cost Bloomberg terms on unrealistic if next that in could were if So, X%, I you're $XXX be right? -- take do you there's doing million million number, I mean, is impossible. it's almost Nightclubs mean And Nightclubs, not positively divided the this -- And could could that's I It's you some think million the EBITDA by again, you of to you that's and of not EBITDA, on EBITDA comp running in all and probably I on assets if mean, X.Xx year. sales, get X% other be $XX that XXXX. you're the doing cuts.

mean, I that consensus you'd even in did you'd that number the But just you be mean, is yes, the at Xx. million I $XX X.Xx. if know. I scenario, mean, be don't I So

hard look at got think making look the don't up. assets. at It's know, the is EBITDA, non-income-producing like estate, of of your the to $XX it's you're real unfair I the sort that's I if not going of me if to And it's that have to going debt million you estate, selling million or think these your leverage I leverage the in context assumption down. make real sell is for you any you like, because then you $XX EBITDA real go not would estate,

EBITDA, one If example, casino, it's for So, City, all sheet none whatever, balance the sort a let's right? or got makes EBITDA, debt of got all right, that of estate from you've you're it's million the the you've casino, the on now. not the of Central for casino but dynamic, the in -- say real $X

saying. Now I'm it's a Nightclub. But what

completion. construction as we these mean, mean, course. all Of open yes, locations, I I the very near is

the property paid bank that a on look loans $X left these X the draw things. the types already all be so to I'd to annually, ready might open, Bombshells what's real all owned, carrying for of loans, the little of most draw estate the million insurances, -- majority, yes, is on I yes, at bit bank might that have say out, those the go be being go left there there to the the more. up to -- costs So of taxes locations for getting are But are all but all

EBITDA Xx. the revenue drop going So, X.XX from to and all is to help drops to that below all help that is in going definitely

make a to -- and really I major say. a don't to to if be like in do is okay, the already to to not comes I not acquisition, that's a want as trying because debt. we want acquisition our push going acquisition up with major making at I X.Xx, to I'm can't go I us I'm norms of high, and very 'XX higher, I I'm want I'm within did the to if to saying concerned. well, acquisition then So, have I'm X.Xx And But maybe not it have so. because to to push with March I'm if to don't go, we what close to I X.Xx, that this because concerned I'm want still room to Xx.

Adam. the questions, Thanks Fantastic. so thank for Eric, you much, and

have will circle you back any if furthers. We

for Next from Eric. our is who comes on question an another shareholders asking Favoritely, larger one update of

launched. it's mean I

You It's can site. go favoritely.com. on the

are We girls. adding

members. were represented beta. have other I entertainers staff and I everybody last we're believe about still -- the with X think I had being days we XX in now on talked site the to clubs we ago, time that

we locations see to to add do continue site. we of hoping we increase that as I'm ready get out So, launch the additional full a and

Wonderful.

from another that trends business color the Now who just last question shareholder give to this had any was that seeing. I submitted on you're current

weekends. big Obviously, then with had had the was X on fantastic. mean, strong, and fight fights Saturday. the Friday X the surprising. around I we Paul We which fight weekend was Every was on was November UFC Tyson-Jake big strong holidays,

a started off a that that So being weekend November. Sunday. December December little of the great great, a slow was X weekend, with third

had not guess strong. just decent a what through looking I November, a being bit percentage very what However, consider have a trends the I not few trends this with have been decent October, We say, we're necessarily as I points for, little little number sales. from bit much, weekend some the the was weekend seeing first pretty off, I second through week should been. But I'm would December, up think past

are January weeks So into weak big and last hopefully, kickoff. get And continue -- March will a that a Madness we I March. and phase the for think of we'll is of us X the December. of February, have through then weeks couple end of go we kind

weekends Madness. course, have Sundays X X X in again. have March of And and Saturdays we'll So with hopefully, a March we really big

be continue as move it as forward. we -- we to move interesting So, will

of have a Fantastic. appreciate and or our or great have time. of that, Hanukkah, to Christmas, Thank celebrate New Take Eric, everyone restaurants one Please thank clubs fun. you so you care call. a behalf On have much and for the subsidiaries, just good our night. Eric. the We company visit this to Bradley, and Kwanzaa, joining Year's