PR Newswire | May 10, 2021 04:06PM EDT

05/10 15:05 CDT

RCI Reports Strong Increase in 2Q21 EPS and Free Cash Flow HOUSTON, May 10, 2021

HOUSTON, May 10, 2021 /PRNewswire/ -- RCI Hospitality Holdings, Inc. (Nasdaq: RICK) today reported results for the fiscal 2021 second quarter ended March 31, 2021 and filed its Form 10-Q.

Highlights(all comparisons in this news release are 2Q21 vs. 2Q20 unless otherwise noted)

* GAAP EPS of $0.68 compared to ($0.37) * Non-GAAP* EPS of $0.75 compared to $0.47 * GAAP results included a $1.4 million impairment and $431,000 net non-operating gain (both pre-tax) * Net cash from operating activities of $11.0 million and free cash flow* of $9.0 million * $20.2 million cash and cash equivalents on March 31, 2021 * Total revenues of $44.1 million (+9.0%) * Nightclubs segment revenues of $30.8 million with 34.0% operating margin (38.8% non-GAAP) * Bombshells segment revenues of $13.1 million with 23.9% operating margin (24.3% non-GAAP)

Eric Langan, President & CEO, said: "2Q21 reflected a continued rebound in financial performance through the COVID-19 pandemic. Nightclubs had their best overall performance since the pandemic began. Bombshells served up another strong quarter. This enabled us to keep our teams employed and generate higher levels of free cash flow and profitability. Once again, we thank our loyal customers, dedicated team members, and steadfast investors.

"We hope these trends continue as the COVID-19 situation continues to improve. As of today, 36 clubs and 10 Bombshells are open. Nightclubs and Bombshells sales exceeded $18 million in April. Restrictive curfews, which have affected many of our northern clubs, are beginning to end. Minnesota, where we have three clubs, lifted its 11 PM curfew on Friday. New York, where we have three clubs, plans to eliminate its midnight curfew May 31. We hope the curfew in Chicago, where we have one club, will be lifted soon."

Conference Call Today at 4:30 PM ET

* Live Participant Phone Number: Toll Free 877-407-9210, International 201-689-8049 * Access the live webcast, slides or replay here: https://www.webcaster4.com/Webcast/Page/2209/41190 * Phone replay: Toll Free 877-481-4010, International 919-882-2331, Passcode: 41190

Nightclubs Segment

* Revenue was $30.8 million (-1.8%) with same-store sales +3.6%. * Cost of goods sold was 12.3% of segment revenue compared to 11.3% due to a lower proportion of service revenues, while other expenses in aggregate declined. * Segment profitability increased to $10.5 million from $2.3 million. GAAP operating margin expanded to 34.0% from 7.3% in 2Q20. There were $1.4 million and $8.0 million of impairments, respectively, in 2Q21 and 2Q20. * On a non-GAAP basis, profitability increased to $12.0 million (+16.1%) as operating margin expanded to 38.8% from 32.8%. This is the segment's best performance since 2Q20, when the COVID-19 pandemic was declared mid-March 2020. * During 2Q21, 29 of 38 clubs were open for the full quarter and 37 by period-end with 21 closed for several days in mid-February due to the Texas Freeze. Most locations limited occupancy voluntarily or in accordance with coronavirus safety plans. Not all clubs operated at full schedules in line with local government restrictions, although curfews became less restrictive, particularly in March. Currently, two clubs are temporarily closed. * During 2Q20, all 38 clubs were closed in mid-March 2020 as local and state restrictions went into effect.

Bombshells Segment

* Bombshells revenue was $13.1 million (+49.2%) with same-store sales +48.7%. * Cost of goods sold was 22.8% of segment revenue compared to 24.7% due to higher revenue and lower cost of goods, while other expenses in aggregate as a percent of revenues also declined. * Segment profitability increased to $3.1 million (+356.7%). GAAP operating margin expanded to 23.9% from 7.8%. On a non-GAAP basis, profitability increased to $3.2 million (+240.7%) as operating margin expanded to 24.3% from 10.6%. * During 2Q21, all 10 Bombshells were open with the exception of several days due to the Texas Freeze. Capacity increased from 75% to 100% in mid-March. * During 2Q20, the nine existing Bombshells at the start of the quarter and a new location, which opened late January 2020, were closed in mid-March as restrictions went into effect.

Consolidated

* Salaries and wages were 25.4% of revenues compared to 30.2%. * SG&A was 28.6% of revenues compared to 35.7%. * The improvements reflected better Nightclubs and Bombshells segment margins, cost-saving initiatives, and lower audit and legal fees as compared to the prior year. * Other charges, net, reflected the above-mentioned impairments in the Nightclubs segment. * Interest expense decreased 3.9% primarily due to lower debt balances. * Non-operating gains of $431,000 pre-tax were primarily due to debt extinguishment of forgiven loans. * Debt was $132.4 million at 3/31/21 compared to $134.8 million at 12/31/20. This reflected regular paydowns and debt extinguishment.

Note

* As of the release of this report, we do not know the future extent and duration of the impact of COVID-19 on our businesses. Lower sales, as caused by local, state and national guidelines, could lead to adverse financial results. However, we will continually monitor and evaluate our cash flow situation and will determine any further measures to be instituted, including refinancing several of our debt obligations. * All references to the "company," "we," "our," and similar terms include RCI Hospitality Holdings, Inc. and its subsidiaries, unless the context indicates otherwise.

*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) impairment of assets, and (e) settlement of lawsuits. 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) impairment of assets, (f) settlement of lawsuits, (g) gain on debt extinguishment, and (h) 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 24.2% and 7.6% effective tax rate of the pre-tax non-GAAP income before taxes for the six months ended March 31, 2021 and 2020, 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) impairment of assets, (h) settlement of lawsuits, and (i) gain on debt extinguishment. 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.

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) the impact of the COVID-19 pandemic, and (vii) 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, 2020 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.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share and percentage data)

For the Three Months Ended March 31, For the Six Months Ended March 31,

2021 2020 2021 2020

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

Revenues

Sales of alcoholic beverages $ 20,273 46.0% $ 16,919 41.9% $ 37,633 45.6% $ 37,662 42.4%

Sales of food and merchandise 9,538 21.6% 6,479 16.0% 18,147 22.0% 13,926 15.7%

Service revenues 11,502 26.1% 14,348 35.5% 21,562 26.1% 31,541 35.5%

Other 2,746 6.2% 2,680 6.6% 5,115 6.2% 5,691 6.4%

Total revenues 44,059 100.0% 40,426 100.0% 82,457 100.0% 88,820 100.0%

Operating expenses

Cost of goods sold

Alcoholic beverages sold 3,730 18.4% 3,435 20.3% 6,992 18.6% 7,581 20.1%

Food and merchandise sold 3,029 31.8% 2,271 35.1% 5,918 32.6% 4,846 34.8%

Service and other 43 0.3% 76 0.4% 96 0.4% 131 0.4%

Total cost of goods sold (exclusive of items shown below) 6,802 15.4% 5,782 14.3% 13,006 15.8% 12,558 14.1%

Salaries and wages 11,200 25.4% 12,222 30.2% 22,686 27.5% 25,445 28.6%

Selling, general and administrative 12,618 28.6% 14,450 35.7% 24,770 30.0% 30,981 34.9%

Depreciation and amortization 2,117 4.8% 2,257 5.6% 4,140 5.0% 4,461 5.0%

Other charges, net 1,481 3.4% 8,190 20.3% 1,431 1.7% 8,164 9.2%

Total operating expenses 34,218 77.7% 42,901 106.1% 66,033 80.1% 81,609 91.9%

Income (loss) from operations 9,841 22.3% (2,475) -6.1% 16,424 19.9% 7,211 8.1%

Other income (expenses)

Interest expense (2,364) -5.4% (2,459) -6.1% (4,798) -5.8% (4,944) -5.6%

Interest income 62 0.1% 85 0.2% 122 0.1% 183 0.2%

Non-operating gains (losses), net 431 1.0% (62) -0.2% 5,347 6.5% (134) -0.2%

Income (loss) before income taxes 7,970 18.1% (4,911) -12.1% 17,095 20.7% 2,316 2.6%

Income tax expense (benefit) 1,938 4.4% (1,418) -3.5% 1,554 1.9% 175 0.2%

Net income (loss) 6,032 13.7% (3,493) -8.6% 15,541 18.8% 2,141 2.4%

Net loss attributable to noncontrolling interests 59 0.1% 41 0.1% 193 0.2% 41 0.0%

Net income (loss) attributable to RCIHH common shareholders $ 6,091 13.8% $ (3,452) -8.5% $ 15,734 19.1% $ 2,182 2.5%

Earnings (loss) per share

Basic and diluted $ 0.68 $ (0.37) $ 1.75 $ 0.24

Weighted average shares outstanding

Basic and diluted 9,000 9,225 9,010 9,274

Dividends per share $ 0.04 $ 0.04 $ 0.08 $ 0.07

RCI HOSPITALITY HOLDINGS, INC.

NON-GAAP FINANCIAL MEASURES

(in thousands, except per share and percentage data)

For the Three Months For the Six Months

Ended March 31, Ended March 31,

2021 2020 2021 2020

Reconciliation of GAAP net income (loss) to Adjusted EBITDA

Net income (loss) attributable to RCIHH common stockholders $ 6,091 $ (3,452) $ 15,734 $ 2,182

Income tax expense (benefit) 1,938 (1,418) 1,554 175

Interest expense, net 2,302 2,374 4,676 4,761

Settlement of lawsuits 1 - 153 24

Impairment of assets 1,401 8,210 1,401 8,210

Loss (gain) on sale of businesses and assets 91 (7) 86 (37)

Gain on debt extinguishment (380) - (5,329) -

Unrealized loss on equity securities 34 62 67 134

Gain on insurance (12) (13) (209) (33)

Depreciation and amortization 2,117 2,257 4,140 4,461

Adjusted EBITDA $ 13,583 $ 8,013 $ 22,273 $ 19,877

Reconciliation of GAAP net income (loss) to non-GAAP net income

Net income (loss) attributable to RCIHH common stockholders $ 6,091 $ (3,452) $ 15,734 $ 2,182

Amortization of intangibles 79 157 158 313

Settlement of lawsuits 1 - 153 24

Impairment of assets 1,401 8,210 1,401 8,210

Loss (gain) on sale of businesses and assets 91 (7) 86 (37)

Gain on debt extinguishment (380) - (5,329) -

Unrealized loss on equity securities 34 62 67 134

Gain on insurance (12) (13) (209) (33)

Net income tax effect (522) (633) (1,741) (659)

Non-GAAP net income $ 6,783 $ 4,324 $ 10,320 $ 10,134

Reconciliation of GAAP diluted earnings (loss) per share to non-GAAP dilutedearnings per share

Diluted shares 9,000 9,225 9,010 9,274

GAAP diluted earnings (loss) per share $ 0.68 $ (0.37) $ 1.75 $ 0.24

Amortization of intangibles 0.01 0.02 0.02 0.03

Settlement of lawsuits 0.00 - 0.02 0.00

Impairment of assets 0.16 0.89 0.16 0.89

Loss (gain) on sale of businesses and assets 0.01 (0.00) 0.01 (0.00)

Gain on debt extinguishment (0.04) - (0.59) -

Unrealized loss on equity securities 0.00 0.01 0.01 0.01

Gain on insurance (0.00) (0.00) (0.02) (0.00)

Net income tax effect (0.06) (0.07) (0.19) (0.07)

Non-GAAP diluted earnings per share $ 0.75 $ 0.47 $ 1.15 $ 1.09

Reconciliation of GAAP operating income to non-GAAP operating income

Income (loss) from operations $ 9,841 $ (2,475) $ 16,424 $ 7,211

Amortization of intangibles 79 157 158 313

Settlement of lawsuits 1 - 153 24

Impairment of assets 1,401 8,210 1,401 8,210

Loss (gain) on sale of businesses and assets 91 (7) 86 (37)

Gain on insurance (12) (13) (209) (33)

Non-GAAP operating income $ 11,401 $ 5,872 $ 18,013 $ 15,688

Reconciliation of GAAP operating margin to non-GAAP operating margin

GAAP operating margin 22.3% -6.1% 19.9% 8.1%

Amortization of intangibles 0.2% 0.4% 0.2% 0.4%

Settlement of lawsuits 0.0% 0.0% 0.2% 0.0%

Impairment of assets 3.2% 20.3% 1.7% 9.2%

Loss (gain) on sale of businesses and assets 0.2% 0.0% 0.1% 0.0%

Gain on insurance 0.0% 0.0% -0.3% 0.0%

Non-GAAP operating margin 25.9% 14.5% 21.8% 17.7%

Reconciliation of net cash provided by operating activities to free cash flow

Net cash provided by operating activities $ 10,972 $ 1,708 $ 17,246 $ 11,981

Less: Maintenance capital expenditures 1,986 1,090 2,591 2,111

Free cash flow $ 8,986 $ 618 $ 14,655 $ 9,870

RCI HOSPITALITY HOLDINGS, INC.

SEGMENT INFORMATION

(in thousands)

For the Three Months For the Six Months

Ended March 31, Ended March 31,

2021 2020 2021 2020

Revenues

Nightclubs $ 30,787 $ 31,367 $ 55,984 $ 69,226

Bombshells 13,135 8,803 26,141 19,153

Other 137 256 332 441

$ 44,059 $ 40,426 $ 82,457 $ 88,820

Income (loss) from operations

Nightclubs $ 10,468 $ 2,284 $ 18,963 $ 16,040

Bombshells 3,142 688 5,859 2,259

Other (139) (146) (214) (331)

General corporate (3,630) (5,301) (8,184) (10,757)

$ 9,841 $ (2,475) $ 16,424 $ 7,211

RCI HOSPITALITY HOLDINGS, INC.

NON-GAAP SEGMENT INFORMATION

($ in thousands)

For the Three Months Ended March 31, 2021 For the Three Months Ended March 31, 2020

Nightclubs Bombshells Other Corporate Total Nightclubs Bombshells Other Corporate Total

Income (loss) from operations $ 10,468 $ 3,142 $ (139) $ (3,630) $ 9,841 $ 2,284 $ 688 $ (146) $ (5,301) $ (2,475)

Amortization of intangibles 47 3 29 - 79 57 4 96 - 157

Settlement of lawsuits (4) - 5 - 1 - - - - -

Impairment of assets 1,401 - - - 1,401 7,965 245 - - 8,210

Loss (gain) on sale of businesses and assets 14 47 - 30 91 (3) - - (4) (7)

Loss (gain) on insurance 32 - - (44) (12) - - - (13) (13)

Non-GAAP operating income (loss) $ 11,958 $ 3,192 $ (105) $ (3,644) $ 11,401 $ 10,303 $ 937 $ (50) $ (5,318) $ 5,872

GAAP operating margin 34.0% 23.9% -101.5% -8.2% 22.3% 7.3% 7.8% -57.0% -13.1% -6.1%

Non-GAAP operating margin 38.8% 24.3% -76.6% -8.3% 25.9% 32.8% 10.6% -19.5% -13.2% 14.5%

For the Six Months Ended March 31, 2021 For the Six Months Ended March 31, 2020

Nightclubs Bombshells Other Corporate Total Nightclubs Bombshells Other Corporate Total

Income (loss) from operations $ 18,963 $ 5,859 $ (214) $ (8,184) $ 16,424 $ 16,040 $ 2,259 $ (331) $ (10,757) $ 7,211

Amortization of intangibles 94 7 57 - 158 114 8 191 - 313

Settlement of lawsuits 114 34 5 - 153 24 - - - 24

Impairment of assets 1,401 - - - 1,401 7,965 245 - - 8,210

Loss (gain) on sale of businesses and assets 14 47 - 25 86 - - - (37) (37)

Gain on insurance (165) - - (44) (209) (20) - - (13) (33)

Non-GAAP operating income (loss) $ 20,421 $ 5,947 $ (152) $ (8,203) $ 18,013 $ 24,123 $ 2,512 $ (140) $ (10,807) $ 15,688

GAAP operating margin 33.9% 22.4% -64.5% -9.9% 19.9% 23.2% 11.8% -75.1% -12.1% 8.1%

Non-GAAP operating margin 36.5% 22.7% -45.8% -9.9% 21.8% 34.8% 13.1% -31.7% -12.2% 17.7%

RCI HOSPITALITY HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

For the Three Months Ended For the Six Months Ended

March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020

CASH FLOWS FROM OPERATING ACTIVITIES

Net income (loss) $ 6,032 $ (3,493) $ 15,541 $ 2,141

Adjustments to reconcile net income (loss) to net cash

provided by operating activities:

Depreciation and amortization 2,117 2,257 4,140 4,461

Deferred income tax benefit - (1,005) - (1,155)

Loss (gain) on sale of businesses and assets 91 (6) 86 (36)

Impairment of assets 1,401 8,210 1,401 8,210

Unrealized loss on equity securities 34 62 67 134

Amortization of debt discount and issuance costs 50 68 101 129

Gain on debt extinguishment (378) - (5,298) -

Noncash lease expense 427 496 848 825

Gain on insurance (44) (13) (294) (33)

Doubtful accounts expense (reversal) on notes receivable 35 - (58) -

Changes in operating assets and liabilities:

Accounts receivable 1,704 (428) 3,137 1,917

Inventories (9) 4 (31) (137)

Prepaid expenses, other current assets and other assets 369 1,275 1,494 2,840

Accounts payable, accrued and other liabilities (857) (5,719) (3,888) (7,315)

Net cash provided by operating activities 10,972 1,708 17,246 11,981

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds from sale of businesses and assets 8 54 8 105

Proceeds from insurance 44 13 294 945

Proceeds from notes receivable 35 46 61 403

Payments for property and equipment and intangible assets (5,429) (1,265) (6,718) (5,323)

Net cash used in investing activities (5,342) (1,152) (6,355) (3,870)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from debt obligations 2,176 562 2,176 880

Payments on debt obligations (4,232) (2,016) (5,977) (4,097)

Purchase of treasury stock - (2,047) (1,794) (8,488)

Payment of dividends (360) (368) (720) (647)

Payment of loan origination costs (25) - (25) -

Distribution to noncontrolling interests - (21) - (31)

Net cash used in financing activities (2,441) (3,890) (6,340) (12,383)

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 3,189 (3,334) 4,551 (4,272)

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 16,967 13,159 15,605 14,097

CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 20,156 $ 9,825 $ 20,156 $ 9,825

RCI HOSPITALITY HOLDINGS, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands)

March 31, September 30, March 31,

2021 2020 2020

ASSETS

Current assets

Cash and cash equivalents $ 20,156 $ 15,605 $ 9,825

Accounts receivable, net 3,630 6,767 4,678

Current portion of notes receivable 214 201 675

Inventories 2,403 2,372 2,735

Prepaid expenses and other current assets 5,020 6,488 5,148

Assets held for sale 7,382 - 4,825

Total current assets 38,805 31,433 27,886

Property and equipment, net 175,153 181,383 182,234

Operating lease right-of-use assets, net 24,698 25,546 26,485

Notes receivable, net of current portion 2,892 2,908 4,087

Goodwill 45,686 45,686 47,109

Intangibles, net 73,070 73,077 74,251

Other assets 806 900 963

Total assets $ 361,110 $ 360,933 $ 363,015

LIABILITIES AND EQUITY

Current liabilities

Accounts payable $ 4,021 $ 4,799 $ 2,805

Accrued liabilities 12,321 14,573 8,671

Current portion of long-term debt, net 16,380 16,304 14,771

Current portion of operating lease liabilities 1,692 1,628 1,552

Total current liabilities 34,414 37,304 27,799

Deferred tax liability, net 20,390 20,390 20,503

Long-term debt, net of current portion and debt discount and issuance costs 116,032 125,131 125,669

Operating lease liabilities, net of current portion 24,583 25,439 26,275

Other long-term liabilities 357 362 374

Total liabilities 195,776 208,626 200,620

Commitments and contingencies

Equity

Preferred stock - - -

Common stock 90 91 91

Additional paid-in capital 50,040 51,833 52,829

Retained earnings 115,811 100,797 109,703

Total RCIHH stockholders' equity 165,941 152,721 162,623

Noncontrolling interests (607) (414) (228)

Total equity 165,334 152,307 162,395

Total liabilities and equity $ 361,110 $ 360,933 $ 363,015

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SOURCE RCI Hospitality Holdings, Inc.