PR Newswire | Aug 10, 2020 04:06PM EDT

08/10 15:05 CDT

RCI Reports 3Q20 Results; Positive Operating Cash Flow During the Quarter HOUSTON, Aug. 10, 2020

HOUSTON, Aug. 10, 2020 /PRNewswire/ -- RCI Hospitality Holdings, Inc. (Nasdaq: RICK) today reported results for the third quarter ended June 30, 2020 and filed its corresponding Form 10-Q. Results are not comparable to prior periods due to the Covid-19 pandemic. In line with government regulations, all locations remained closed in April, a number reopened in May and June, and some of those had to close temporarily before quarter-end.

Key Points

* Total revenues of $14.7 million with $156 thousand in April, $5.7 million in May, and $8.9 million in June. * Net loss attributable to common shareholders of $5.5 million or $0.60 per share. * Positive operating cash flow. Net cash from operating activities and free cash flow* of $166 thousand. * Cash at June 30, 2020 was $14.8 million and accounts receivable were $5.5 million, including a $3.6 million income tax receivable. * Bombshells restaurants had record two-month revenues in May-June and quarterly segment operating margin of 22.3% that exceeded our FY20 target. * Nightclubs that were able to open performed well considering 3Q20's operating environment. * July revenues totaled $7.6 million. * 31 locations open as of today. * Approximately half of our team members are back at work after extensive furloughs in March. * All open locations follow Covid-19 safety standards for guests and team members, including mandatory mask, social distancing, occupancy and hourly restrictions, as well as closing temporarily for periodic sanitizing. * Though our cash flows are not what we anticipated at the start of FY20, the near-term outlook for our business remains strong, and we expect to generate adequate cash flows from operations over the next 12 months. Please see our 10-Q for further discussion.

Conference Call

A conference call to discuss 3Q20 results, outlook and related matters will be held today at 4:30 PM ET:

* Live Participant Phone Number: Toll Free 877-407-9210, International 201-689-8049 * To access the live webcast, slides or replay, visit: https://www.webcaster4.com/Webcast/Page/2209/36059 * Phone replay: Toll Free 877-481-4010, International 919-882-2331, Passcode: 36059

CEO Comment

Eric Langan, President & CEO, said: "After more than five months, we are more confident in managing how the pandemic is affecting our businesses. By being agile, innovative and acting quickly, we believe we have made the company more resilient.

"We have significantly reduced our cost structure. All payments not deferred were made as required. We have learned how to safely open, close, and reopen locations, and have developed effective ways to serve guests and market our businesses in this new environment. In addition, we have been able to retain our key personnel and rehire many of our valuable team members.

"We have also continued to pursue longer-term strategies. For example, during 3Q20 we sold the second of two excess parcels at Bombshells I-10 in Houston. This significantly reduced our total debt at this location as planned.

"Even with no sales in April, we ended 3Q20 with small but positive operating cash flow, sufficient working capital, and open locations that should provide us with ample staying power. When more locations open, such as our larger Florida and New York units, we believe our new cost structure and marketing should generate noticeably increased cash flow even with Covid-related restrictions.

"Our people have been unbelievable. A special thanks goes out to our team members for making all of this possible."

As of the release of this report, we do not know the extent and duration of the impact of Covid-19 on our businesses due to the uncertainty about the spread of the virus. Lower sales, as caused by social distancing guidelines, could lead to adverse financial results. However, we will continually monitor and evaluate the situation and will determine any further measures to be instituted, including refinancing several of our debt obligations.

3Q20 Statement of Operations (All comparisons are to 3Q19 unless otherwise noted)

* Consolidated revenues of $14.7 million declined 68.7%. Bombshells segment generated revenues of $4.3 million in May and $4.2 million in June. Nightclubs segment generated revenues of $1.3 million in May and $4.7 million in June. * All locations remained closed in April 2020. Following changing regional conditions and government regulations, 11 reopened by May 15, a total of 34 were open by May 31, a total of 40 were open by June 15, and a total of 29 were open at the end of 3Q20. As of today, we have 31 locations open. * Cost of goods was 16.2% of revenues compared to 14.2% due to a higher proportion of food sales. * Salaries and wages and SGA costs declined 48.9%. This reflected cost-cutting and fewer locations open, partially offset by one month of no open locations and new Covid-related safety costs. * Net other charges of $424 thousand compared to a net gain of $172 thousand. 3Q20 reflected $1.0 million in additional Covid-19 impairment and a $608 thousand gain from the sale of real estate, mainly excess property around Bombshells I-10. Most of the $1.9 million sale proceeds paid down related debt. * By segment, Bombshells had a $1.9 million operating profit at a 22.3% margin with a higher level of sales and more consistent occupancy while operating in line with indoor restrictions. * Nightclubs had a $3.1 million operating loss, which included depreciation of $1.5 million and net charges of $363 thousand (both non-cash). * Interest expense was 3.3% lower than a year ago due to debt paydowns prior to and during 3Q20. * Income tax was a $1.4 million benefit compared to a $1.8 million expense. * Weighted average number of common shares outstanding of 9.1 million declined 5.1% due to repurchases prior to 3Q20.

June 30, 2020 Balance Sheet (All comparisons are to March 31, 2020 unless otherwise noted)

* Cash and cash equivalents of $14.8 million compared to $9.8 million. * Long-term debt of $142.7 million compared to $140.4 million. The increase primarily reflects the addition of a $5.4 million SBA loan partially offset by 3Q20 paydowns of other debt.

*Non-GAAP Financial Measures

* In addition to our financial information presented in accordance with GAAP, management uses certain non-GAAP financial measures, within the meaning of the SEC Regulation G, to clarify and enhance understanding of past performance and prospects for the future. Generally, a non-GAAP financial measure is a numerical measure of a company's operating performance, financial position or cash flows that excludes or includes amounts that are included in or excluded from the most directly comparable measure calculated and presented in accordance with GAAP. We monitor non-GAAP financial measures because it describes the operating performance of the Company and helps management and investors gauge our ability to generate cash flow, excluding (or including) some items that management believes are not representative of the ongoing business operations of the Company, but are included in (or excluded from) the most directly comparable measures calculated and presented in accordance with GAAP. Relative to each of the non-GAAP financial measures, we further set forth our rationale as follows: * Non-GAAP Operating Income and Non-GAAP Operating Margin. We calculate non-GAAP operating income and non-GAAP operating margin by excluding the following items from income from operations and operating margin: (a) amortization of intangibles, (b) gains or losses on sale of businesses and assets, (c) gains or losses on insurance, (d) settlement of lawsuits, and (e) impairment of assets. We believe that excluding these items assists investors in evaluating period-over-period changes in our operating income and operating margin without the impact of items that are not a result of our day-to-day business and operations. * Non-GAAP Net Income and Non-GAAP Net Income per Diluted Share. We calculate non-GAAP net income and non-GAAP net income per diluted share by excluding or including certain items to net income attributable to RCIHH common stockholders and diluted earnings per share. Adjustment items are: (a) amortization of intangibles, (b) gains or losses on sale of businesses and assets, (c) gains or losses on insurance, (d) unrealized gains or losses on equity securities, (e) settlement of lawsuits, (f) impairment of assets, and (g) the income tax effect of the above described adjustments. Included in the income tax effect of the above adjustments is the net effect of the non-GAAP provision for income taxes, calculated at 26.9% and 22.8% effective tax rate of the pre-tax non-GAAP income before taxes for the nine months ended June 30, 2020 and 2019, respectively, and the GAAP income tax expense (benefit). We believe that excluding and including such items help management and investors better understand our operating activities. * Adjusted EBITDA. We calculate adjusted EBITDA by excluding the following items from net income attributable to RCIHH common stockholders: (a) depreciation and amortization, (b) income tax expense (benefit), (c) net interest expense, (d) gains or losses on sale of businesses and assets, (e) gains or losses on insurance, (f) unrealized gains or losses on equity securities, (g) settlement of lawsuits, and (h) impairment of assets. We believe that adjusting for such items helps management and investors better understand our operating activities. Adjusted EBITDA provides a core operational performance measurement that compares results without the need to adjust for federal, state and local taxes which have considerable variation between domestic jurisdictions. The results are, therefore, without consideration of financing alternatives of capital employed. We use adjusted EBITDA as one guideline to assess our unleveraged performance return on our investments. Adjusted EBITDA is also the target benchmark for our acquisitions of nightclubs. * Management also uses non-GAAP cash flow measures such as free cash flow. Free cash flow is derived from net cash provided by operating activities less maintenance capital expenditures. We use free cash flow as the baseline for the implementation of our capital allocation strategy.

Note

All references to the "company," "we," "our," and similar terms include RCI Hospitality Holdings, Inc. and its subsidiaries, unless the context indicates otherwise.

About RCI Hospitality Holdings, Inc. (Nasdaq: RICK)

With more than 40 units, RCI Hospitality Holdings, Inc., through its subsidiaries, is the country's leading company in gentlemen's clubs and sports bars/restaurants. Clubs in New York City, Chicago, Dallas/Ft. Worth, Houston, Miami, Minneapolis, St. Louis, Charlotte, Pittsburgh, and other markets operate under brand names such as Rick's Cabaret, XTC, Club Onyx, Vivid Cabaret, Jaguars Club, Tootsie's Cabaret, and Scarlett's Cabaret. Sports bars/restaurants operate under the brand name Bombshells Restaurant & Bar. Please visit http://www.rcihospitality.com/

Forward-Looking Statements

This press release may contain forward-looking statements that involve a number of risks and uncertainties that could cause the company's actual results to differ materially from those indicated in this press release, including, but not limited to, the risks and uncertainties associated with (i) operating and managing an adult business, (ii) the business climates in cities where it operates, (iii) the success or lack thereof in launching and building the company's businesses, (iv) cyber security, (v) conditions relevant to real estate transactions, (vi) our ability to maintain compliance with the filing requirements of the SEC and the Nasdaq Stock Market, (vii) the impact and uncertainty of the coronavirus pandemic, and (viii) numerous other factors such as laws governing the operation of adult entertainment businesses, competition and dependence on key personnel. For more detailed discussion of such factors and certain risks and uncertainties, see RCI's annual report on Form 10-K for the year ended September 30, 2019 and its latest Form 10-Q as well as its other filings with the U.S. Securities and Exchange Commission. The company has no obligation to update or revise the forward-looking statements to reflect the occurrence of future events or circumstances.

Media & Investor Contacts

Gary Fishman and Steven Anreder at 212-532-3232 or gary.fishman@anreder.com and steven.anreder@anreder.com

RCI HOSPITALITY HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share and percentage data)

For the Three Months Ended June 30, For the Nine Months Ended June 30,

2020 2019 2020 2019

Amount % of Amount % of Amount % of Amount % of Revenue Revenue Revenue Revenue

Revenues

Sales of alcoholic $ 7,623 51.8% $ 19,570 41.6% $ 45,285 43.7% $ 56,366 41.5% beverages

Sales of food and 3,452 23.4% 7,046 15.0% 17,378 16.8% 19,175 14.1% merchandise

Service 2,907 19.7% 17,299 36.8% 34,448 33.3% 51,609 38.0% revenues

Other 739 5.0% 3,112 6.6% 6,430 6.2% 8,726 6.4%

Total 14,721 100.0% 47,027 100.0% 103,541 100.0% 135,876 100.0% revenues

Operatingexpenses

Cost of goods sold

Alcoholic beverages 1,245 16.3% 4,015 20.5% 8,826 19.5% 11,541 20.5% sold

Food and merchandise 1,125 32.6% 2,565 36.4% 5,917 34.0% 6,857 35.8% sold

Service and 20 0.5% 121 0.6% 205 0.5% 307 0.5% other

Total cost of goods sold 2,390 16.2% 6,701 14.2% 14,948 14.4% 18,705 13.8% (exclusive of items shown below)

Salaries and 5,421 36.8% 13,164 28.0% 30,866 29.8% 37,168 27.4% wages

Selling, general and 8,908 60.5% 14,895 31.7% 39,889 38.5% 43,263 31.8% administrative

Depreciation and 2,235 15.2% 2,465 5.2% 6,696 6.5% 6,718 4.9% amortization

Other charges 424 2.9% (172) -0.4% 8,588 8.3% (2,250) -1.7% (gains), net

Total operating 19,378 131.6% 37,053 78.8% 100,987 97.5% 103,604 76.2% expenses

Income (loss) (4,657) -31.6% 9,974 21.2% 2,554 2.5% 32,272 23.8%from operations

Other income(expenses)

Interest (2,459) -16.7% (2,543) -5.4% (7,403) -7.1% (7,709) -5.7% expense

Interest 80 0.5% 92 0.2% 263 0.3% 218 0.2% income

Unrealized gain (loss) on 31 0.2% (38) -0.1% (103) -0.1% (408) -0.3% equity securities

Income (loss)before income (7,005) -47.6% 7,485 15.9% (4,689) -4.5% 24,373 17.9%taxes

Income taxexpense (1,437) -9.8% 1,806 3.8% (1,262) -1.2% 5,547 4.1%(benefit)

Net income (5,568) -37.8% 5,679 12.1% (3,427) -3.3% 18,826 13.9%(loss)

Net loss(income)attributable to 94 0.6% (41) -0.1% 135 0.1% (109) -0.1%noncontrollinginterests

Net income(loss)attributable to $ (5,474) -37.2% $ 5,638 12.0% $ (3,292) -3.2% $ 18,717 13.8%RCIHH commonshareholders

Earnings (loss)per share

Basic and $ (0.60) $ 0.59 $ (0.36) $ 1.94 diluted

Weightedaverage sharesoutstanding

Basic and 9,125 9,620 9,224 9,671 diluted

Dividends per $ 0.03 $ 0.03 $ 0.10 $ 0.09share

RCI HOSPITALITY HOLDINGS, INC.

NON-GAAP FINANCIAL MEASURES

(in thousands, except per share and percentage data)

For the Three Months For the Nine Months

Ended June 30, Ended June 30,

2020 2019 2020 2019

Reconciliationof GAAP netincome (loss)to AdjustedEBITDA

Net income(loss)attributable $ (5,474) $ 5,638 $ (3,292) $ 18,717to RCIHHcommonshareholders

Income taxexpense (1,437) 1,806 (1,262) 5,547(benefit)

Interest 2,379 2,451 7,140 7,491expense, net

Settlement of 50 - 74 144lawsuits

Impairment of 982 - 9,192 -assets

Gain on saleof businesses (608) (265) (645) (2,487)and assets

Unrealizedloss (gain) on (31) 38 103 408equitysecurities

Loss (gain) on - 93 (33) 93insurance

Depreciationand 2,235 2,465 6,696 6,718amortization

Adjusted $ (1,904) $ 12,226 $ 17,973 $ 36,631EBITDA

Reconciliationof GAAP netincome (loss)to non-GAAP netincome (loss)

Net income(loss)attributable $ (5,474) $ 5,638 $ (3,292) $ 18,717to RCIHHcommonshareholders

Amortization 149 165 462 474of intangibles

Settlement of 50 - 74 144lawsuits

Impairment of 982 - 9,192 -assets

Gain on saleof businesses (608) (265) (645) (2,487)and assets

Unrealizedloss (gain) on (31) 38 103 408equitysecurities

Loss (gain) on - 93 (33) 93insurance

Net income taxeffect (1,840) (6) (2,499) 327including ratechange

Non-GAAP net $ (6,772) $ 5,663 $ 3,362 $ 17,676income (loss)

Reconciliation of GAAP diluted earnings (loss) per share tonon-GAAP diluted earnings (loss) per share

Diluted shares 9,125 9,620 9,224 9,671

GAAP dilutedearnings $ (0.60) $ 0.59 $ (0.36) $ 1.94(loss) pershare

Amortization 0.02 0.02 0.05 0.05of intangibles

Settlement of 0.01 - 0.01 0.01lawsuits

Impairment of 0.11 - 1.00 -assets

Gain on saleof businesses (0.07) (0.03) (0.07) (0.26)and assets

Unrealizedloss on equity (0.00) 0.00 0.01 0.04securities

Loss (gain) on - 0.01 (0.00) 0.01insurance

Net income taxeffect (0.20) (0.00) (0.27) 0.03including ratechange

Non-GAAPdilutedearnings $ (0.74) $ 0.59 $ 0.36 $ 1.83(loss) pershare

Reconciliation of GAAP operatingincome (loss) to non-GAAPoperating income (loss)

Income (loss)from $ (4,657) $ 9,974 $ 2,554 $ 32,272operations

Amortization 149 165 462 474of intangibles

Settlement of 50 - 74 144lawsuits

Impairment of 982 - 9,192 -assets

Gain on saleof businesses (608) (265) (645) (2,487)and assets

Loss (gain) on - 93 (33) 93insurance

Non-GAAPoperating $ (4,084) $ 9,967 $ 11,604 $ 30,496income

Reconciliationof GAAPoperatingmargin tonon-GAAPoperatingmargin

GAAP operating -31.6% 21.2% 2.5% 23.8%margin

Amortization 1.0% 0.4% 0.4% 0.3%of intangibles

Settlement of 0.3% 0.0% 0.1% 0.1%lawsuits

Impairment of 6.7% 0.0% 8.9% 0.0%assets

Gain on saleof businesses -4.1% -0.6% -0.6% -1.8%and assets

Loss (gain) on 0.0% 0.2% 0.0% 0.1%insurance

Non-GAAPoperating -27.7% 21.2% 11.2% 22.4%margin

Reconciliation of net cashprovided by operating activitiesto free cash flow

Net cashprovided by $ 166 $ 7,443 $ 12,147 $ 28,414operatingactivities

Less:Maintenance - 955 2,111 2,072capitalexpenditures

Free cash flow $ 166 $ 6,488 $ 10,036 $ 26,342

RCI HOSPITALITY HOLDINGS, INC.

SEGMENT INFORMATION

(in thousands)

For the Three Months For the Nine Months

Ended June 30, Ended June 30,

2020 2019 2020 2019

Revenues

Nightclubs $ 6,013 $ 37,889 $ 75,239 $ 112,664

Bombshells 8,531 8,755 27,684 22,295

Other 177 383 618 917

$ 14,721 $ 47,027 $ 103,541 $ 135,876

Income(loss) fromoperations

Nightclubs $ (3,088) $ 14,034 $ 13,002 $ 44,499

Bombshells 1,903 686 4,166 1,543

Other (95) (111) (480) (406)

General (3,377) (4,635) (14,134) (13,364) corporate

$ (4,657) $ 9,974 $ 2,554 $ 32,272

RCI HOSPITALITY HOLDINGS, INC.

NON-GAAP SEGMENT INFORMATION

($ in thousands)

For the Three Months Ended June 30, 2020 For the Three Months Ended June 30, 2019

Nightclubs Bombshells Other Corporate Total Nightclubs Bombshells Other Corporate Total

Income(loss) from $ (3,088) $ 1,903 $ (95) $ (3,377) $ (4,657) $ 14,034 $ 686 $ (111) $ (4,635) $ 9,974operations

Amortizationof 49 3 96 - 148 - - - 165 165intangibles

Settlement 50 - - - 50 - - - - -of lawsuits

Impairment 982 - - - 982 - - - - -of assets

Loss (gain)on sale of (619) 16 - (4) (607) (260) - - (5) (265)businessesand assets

Loss (gain) - - - - - 93 - - - 93on insurance

Non-GAAPoperating $ (2,626) $ 1,922 $ 1 $ (3,381) $ (4,084) $ 13,867 $ 686 $ (111) $ (4,475) $ 9,967income(loss)

GAAPoperating -51.4% 22.3% -53.7% -22.9% -31.6% 37.0% 7.8% -29.0% -9.9% 21.2%margin

Non-GAAPoperating -43.7% 22.5% 0.6% -23.0% -27.7% 36.6% 7.8% -29.0% -9.5% 21.2%margin

For the Nine Months Ended June 30, 2020 For the Nine Months Ended June 30, 2019

Nightclubs Bombshells Other Corporate Total Nightclubs Bombshells Other Corporate Total

Income(loss) from $ 13,002 $ 4,166 $ (480) $ (14,134) $ 2,554 $ 44,499 $ 1,543 $ (406) $ (13,364) $ 32,272operations

Amortizationof 163 11 287 - 461 - - - 474 474intangibles

Settlement 74 - - - 74 129 3 - 12 144of lawsuits

Impairment 8,947 245 - - 9,192 - - - - -of assets

Loss (gain)on sale of (619) 16 - (41) (644) (2,412) 1 - (76) (2,487)businessesand assets

Loss (gain) (20) - - (13) (33) 93 - - - 93on insurance

Non-GAAPoperating $ 21,547 $ 4,438 $ (193) $ (14,188) $ 11,604 $ 42,309 $ 1,547 $ (406) $ (12,954) $ 30,496income(loss)

GAAPoperating 17.3% 15.0% -77.7% -13.7% 2.5% 39.5% 6.9% -44.3% -9.8% 23.8%margin

Non-GAAPoperating 28.6% 16.0% -31.2% -13.7% 11.2% 37.6% 6.9% -44.3% -9.5% 22.4%margin

RCI HOSPITALITY HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

For the Three Months Ended For the Nine Months Ended

June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019

CASH FLOWSFROM OPERATINGACTIVITIES

Net income $ (5,568) $ 5,679 $ (3,427) $ 18,826(loss)

Adjustments toreconcile netincome (loss)to net cash

provided byoperatingactivities:

Depreciation and 2,235 2,465 6,696 6,718 amortization

Deferred income tax (362) 106 (1,517) 1,237 expense (benefit)

Gain on sale of businesses (713) (507) (749) (2,704) and assets

Impairment of 982 - 9,192 - assets

Unrealized loss (gain) (31) 38 103 408 on equity securities

Amortization of debt discount and 65 74 194 276 issuance costs

Deferred rent - 47 - 236 expense

Noncash lease 419 - 1,244 - expense

Loss (gain) - 93 (33) 93 on insurance

Doubtful accounts expense on 495 - 495 - notes receivable

Changes in operating assets and liabilities:

Accounts (1,970) 578 (53) 2,305 receivable

Inventories 108 95 (29) (87)

Prepaid expenses, other 2,102 649 4,942 4,199 current assets and other assets

Accounts payable, accrued and 2,404 (1,874) (4,911) (3,093) other liabilities

Net cash provided by 166 7,443 12,147 28,414 operating activities

CASH FLOWSFROM INVESTINGACTIVITIES

Proceeds fromsale of 1,936 2,240 2,041 5,106businesses andassets

Proceeds from - - 945 -insurance

Proceeds fromnotes 1,152 39 1,555 107receivable

Issuance ofnote - - - (420)receivable

Payments forproperty andequipment and (242) (2,999) (5,565) (16,901)intangibleassets

Acquisition ofbusinesses, - - - (13,500)net of cashacquired

Net cash provided by (used in) 2,846 (720) (1,024) (25,608) investing activities

CASH FLOWSFROM FINANCINGACTIVITIES

Proceeds fromdebt 5,623 2,034 6,503 12,330obligations

Payments ondebt (3,392) (5,347) (7,489) (18,634)obligations

Purchase of - (403) (8,488) (2,364)treasury stock

Payment of (273) (285) (920) (867)dividends

Payment ofloan - - - (20)originationcosts

Distributionto - (21) (31) (21)noncontrollinginterests

Net provided by (cash used) in 1,958 (4,022) (10,425) (9,576) financing activities

NET INCREASE(DECREASE) IN 4,970 2,701 698 (6,770)CASH AND CASHEQUIVALENTS

CASH AND CASHEQUIVALENTS AT 9,825 8,255 14,097 17,726BEGINNING OFPERIOD

CASH AND CASHEQUIVALENTS AT $ 14,795 $ 10,956 $ 14,795 $ 10,956END OF PERIOD

RCI HOSPITALITY HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

June 30, September 30, June 30,

2020 2019 2019

ASSETS

Current assets

Cash and cash $ 14,795 $ 14,097 $ 10,956 equivalents

Accounts 5,529 6,289 5,001 receivable, net

Current portion of 219 954 1,152 notes receivable

Inventories 2,627 2,598 2,502

Prepaid insurance 1,415 5,446 896

Other current 1,752 2,521 2,090 assets

Assets held for 2,013 2,866 - sale

Total current 28,350 34,771 22,597 assets

Property and 181,960 183,956 191,493equipment, net

Operating leaseright-of-use 25,962 - -assets, net

Notes receivable,net of current 2,896 4,211 3,810portion

Goodwill 47,109 53,630 55,271

Intangibles, net 73,224 75,951 76,285

Other assets 873 1,118 1,422

Total assets $ 360,374 $ 353,637 $ 350,878

LIABILITIES ANDEQUITY

Current liabilities

Accounts payable $ 3,955 $ 3,810 $ 2,544

Accrued 10,286 14,644 9,117 liabilities

Current portion of long-term debt, 17,249 15,754 16,374 net

Current portion of operating lease 1,586 - - liabilities

Total current 33,076 34,208 28,035 liabilities

Deferred tax 20,141 21,658 22,076liability, net

Long-term debt, netof current portion 125,487 127,774 130,205and debt discountand issuance costs

Operating leaseliabilities, net of 25,863 - -current portion

Other long-term 372 1,696 1,656liabilities

Total 204,939 185,336 181,972 liabilities

Commitments andcontingencies

Equity

Preferred stock - - -

Common stock 91 96 96

Additional paid-in 52,829 61,312 61,849 capital

Retained earnings 102,837 107,049 106,976

Total RCIHH stockholders' 155,757 168,457 168,921 equity

Noncontrolling (322) (156) (15) interests

Total equity 155,435 168,301 168,906

Total liabilities $ 360,374 $ 353,637 $ 350,878 and equity

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SOURCE RCI Hospitality Holdings, Inc.