PR Newswire | Aug 5, 2021 04:05PM EDT

08/05 15:05 CDT

RCI Reports Record Revenues and Free Cash Flow for 3Q21 HOUSTON, Aug. 5, 2021

HOUSTON, Aug. 5, 2021 /PRNewswire/ -- RCI Hospitality Holdings, Inc. (Nasdaq: RICK) today reported results for the fiscal 2021 third quarter ended June 30, 2021, and filed its Form 10-Q.

Highlights 3Q21 vs 3Q20

* Record total revenues of $57.9 million compared to $14.7 million * Record net cash from operating activities of $15.0 million and record free cash flow* of $13.0 million * Record Nightclubs segment revenues of $41.0 million with 44.7% operating margin * Record Bombshells segment revenues of $16.1 million with 27.4% operating margin * Consolidated operating margins of 32.0% * Strong EPS of $1.37 compared to net loss per share of $0.60 * Net income of $12.3 million and adjusted EBITDA* of $20.4 million * $29.1 million cash and cash equivalents at the end of the period

Eric Langan, President and CEO, said: "Both our Nightclubs and Bombshells segments had their best overall performance in company history. Special thanks to our team members for managing the influx of customers at our locations and helping to shatter our sales records while keeping our costs in line. We continue to press ahead with our growth initiatives. Recently we announced an agreement to acquire 11 clubs in six states and related real estate for $88.0 million in stock, cash and debt. In addition, we are seeking out more nightclub acquisitions, developing more Bombshells, and expanding our list of potential Bombshells franchisee locations."

Conference Call Today at 5:00 PM ET

* Live Participant Phone: Toll Free 877-545-0320, International 973-528-0016, Passcode: 417610 * Live webcast, slides or replay link: https://www.webcaster4.com/Webcast/Page/2209/42364 * Phone replay: Toll Free 877-481-4010, International 919-882-2331, Passcode: 42364

Meet Management Tonight at 7:00 PM ET

Investors are invited to meet management at one of RCI's top revenue generating clubs.

* Thursday, August 5, 2021, 7:00 PM to 9:00 PM ET * Rick's Cabaret New York, 50 W. 33rd Street, New York, NY, between Fifth Avenue and Broadway * RSVP your contact information to gary.fishman@anreder.com by 5:00 PM ET today

Nightclubs Segment

* 3Q21 vs 3Q20: Revenues of $41.0 million compared to $6.0 million, an increase of 582.4%. Thirty-six clubs were open all of 3Q21 compared to the year ago quarter, when all clubs were closed the month of April 2020, in line with local and state pandemic regulations, and then in May-June 2020 a limited number began to reopen, but with restrictive curfews and occupancies. 3Q21 operating margin expanded to 44.7% from (50.5%) in 3Q20 due to higher sales and a more favorable sales mix. As a result, segment operating income increased to $18.4 million from a loss of $3.0 million. * 3Q21 vs 2Q21: Revenues of $41.0 million compared to $30.8 million, an increase of 33.3%, reflecting more clubs open on a more consistent basis, the elimination of restrictions on our northern clubs by the beginning of June, and the ongoing return of our loyal customer base, benefitting from increased vaccinations. Operating margin expanded to 44.7% from 34.0% due to higher sales, in particular, a 46.5% increase in service revenues, primarily from northern clubs. As a result, segment operating income increased by 75.3% to $18.4 million from $10.5 million.

Bombshells Segment

* 3Q21 vs 3Q20: Revenues of $16.1 million compared to $8.5 million, an increase of 88.5%. All 10 Bombshells were open during all of 3Q21 compared to the year-ago quarter, when all units were closed the month of April 2020 in line with local and state pandemic regulations and then in May 2020 began to reopen, but with restrictive curfews and limited occupancies. Operating margin expanded to 27.4% from 21.7% due to higher sales. As a result, segment operating income increased by 138.1% to $4.4 million from $1.9 million. * 3Q21 vs 2Q21: Revenues of $16.1 million compared to $13.1 million, an increase of 22.4%, reflecting greater brand recognition, more sports events, and increased consumer confidence. Operating margin expanded to 27.4% from 23.9% due to higher sales. As a result, segment operating income increased by 40.2% to $4.4 million from $3.1 million.

Consolidated 3Q21 vs 3Q20

* Cost of goods sold declined to 15.3% of total revenues from 16.2% due to higher sales and the change in sales mix, in particular, an increase in service revenues to 29.2% from 19.7% of total revenues. * Salaries and wages declined to 24.0% of revenues from 36.8%, SG&A improved to 25.4% from 60.5%, and depreciation and amortization decreased to 3.6% from 15.2%. * The improvements reflected higher Nightclubs and Bombshells sales and margins, cost-saving initiatives, and lower SG&A expenses relative to sales as compared to the prior year. * Operating margin was 32.0% compared to (31.6%) in 3Q20 and 22.3% in 2Q21. * Interest expense decreased 7.2% primarily due to lower debt balances. * The effective tax rate was an expense of 24.4% compared to a benefit of 20.5%. * Debt was $127.6 million at 6/30/21 compared to $132.4 million at 3/31/21. This reflected scheduled paydowns and a $2.0 million paydown related to a sold property.

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. Closures and operating restrictions, as caused by local, state and national 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. * 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 24.3% and 26.9% effective tax rate of the pre-tax non-GAAP income before taxes for the nine months ended June 30, 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 June 30, For the Nine Months Ended June 30,

2021 2020 2021 2020

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

Revenues

Sales of alcoholic $ 25,092 43.4% $ 7,623 51.8% $ 62,725 44.7% $ 45,285 43.7% beverages

Sales of food and 12,058 20.8% 3,452 23.4% 30,205 21.5% 17,378 16.8% merchandise

Service revenues 16,880 29.2% 2,907 19.7% 38,442 27.4% 34,448 33.3%

Other 3,830 6.6% 739 5.0% 8,945 6.4% 6,430 6.2%

Total revenues 57,860 100.0% 14,721 100.0% 140,317 100.0% 103,541 100.0%

Operating expenses

Cost of goods sold

Alcoholic 4,621 18.4% 1,245 16.3% 11,613 18.5% 8,826 19.5% beverages sold

Food and 4,043 33.5% 1,128 32.7% 9,961 33.0% 5,974 34.4% merchandise sold

Service and other 208 1.0% 17 0.5% 304 0.6% 148 0.4%

Total cost of goods sold (exclusive of 8,872 15.3% 2,390 16.2% 21,878 15.6% 14,948 14.4% items shown below)

Salaries and wages 13,870 24.0% 5,421 36.8% 36,556 26.1% 30,866 29.8%

Selling, general 14,697 25.4% 8,908 60.5% 39,467 28.1% 39,889 38.5% and administrative

Depreciation and 2,057 3.6% 2,235 15.2% 6,197 4.4% 6,696 6.5% amortization

Other charges, net (143) -0.2% 424 2.9% 1,288 0.9% 8,588 8.3%

Total operating 39,353 68.0% 19,378 131.6% 105,386 75.1% 100,987 97.5% expenses

Income (loss) from 18,507 32.0% (4,657) -31.6% 34,931 24.9% 2,554 2.5%operations

Other income(expenses)

Interest expense (2,281) -3.9% (2,459) -16.7% (7,079) -5.0% (7,403) -7.1%

Interest income 72 0.1% 80 0.5% 194 0.1% 263 0.3%

Non-operating gains (losses), 9 0.0% 31 0.2% 5,356 3.8% (103) -0.1% net

Income (loss) 16,307 28.2% (7,005) -47.6% 33,402 23.8% (4,689) -4.5%before income taxes

Income tax expense 3,986 6.9% (1,437) -9.8% 5,540 3.9% (1,262) -1.2%(benefit)

Net income (loss) 12,321 21.3% (5,568) -37.8% 27,862 19.9% (3,427) -3.3%

Net lossattributable to (19) 0.0% 94 0.6% 174 0.1% 135 0.1%noncontrollinginterests

Net income (loss)attributable to $ 12,302 21.3% $ (5,474) -37.2% $ 28,036 20.0% $ (3,292) -3.2%RCIHH commonshareholders

Earnings (loss) pershare

Basic and diluted $ 1.37 $ (0.60) $ 3.11 $ (0.36)

Weighted averageshares outstanding

Basic and diluted 9,000 9,125 9,006 9,224

Dividends per share $ 0.04 $ 0.03 $ 0.12 $ 0.10

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,

2021 2020 2021 2020

Reconciliation of GAAP netincome (loss) to AdjustedEBITDA

Net income (loss)attributable to RCIHH common $ 12,302 $ (5,474) $ 28,036 $ (3,292)stockholders

Income tax expense (benefit) 3,986 (1,437) 5,540 (1,262)

Interest expense, net 2,209 2,379 6,885 7,140

Settlement of lawsuits 127 50 280 74

Impairment of assets 271 982 1,672 9,192

Gain on sale of businesses (541) (608) (455) (645)and assets

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

Unrealized loss (gain) on (9) (31) 58 103equity securities

Gain on insurance - - (209) (33)

Depreciation and 2,057 2,235 6,197 6,696amortization

Adjusted EBITDA $ 20,402 $ (1,904) $ 42,675 $ 17,973

Reconciliation of GAAP netincome (loss) to non-GAAPnet income

Net income (loss)attributable to RCIHH common $ 12,302 $ (5,474) $ 28,036 $ (3,292)stockholders

Amortization of intangibles 51 149 209 462

Settlement of lawsuits 127 50 280 74

Impairment of assets 271 982 1,672 9,192

Gain on sale of businesses (541) (608) (455) (645)and assets

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

Unrealized loss (gain) on (9) (31) 58 103equity securities

Gain on insurance - - (209) (33)

Net income tax effect 39 (1,840) (1,702) (2,499)

Non-GAAP net income $ 12,240 $ (6,772) $ 22,560 $ 3,362

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

Diluted shares 9,000 9,125 9,006 9,224

GAAP diluted earnings (loss) $ 1.37 $ (0.60) $ 3.11 $ (0.36)per share

Amortization of intangibles 0.01 0.02 0.02 0.05

Settlement of lawsuits 0.01 0.01 0.03 0.01

Impairment of assets 0.03 0.11 0.19 1.00

Gain on sale of businesses (0.06) (0.07) (0.05) (0.07)and assets

Gain on debt extinguishment - - (0.59) -

Unrealized loss (gain) on (0.00) (0.00) 0.01 0.01equity securities

Gain on insurance - - (0.02) (0.00)

Net income tax effect 0.00 (0.20) (0.19) (0.27)

Non-GAAP diluted earnings $ 1.36 $ (0.74) $ 2.50 $ 0.36per share

Reconciliation of GAAP operating incometo non-GAAP operating income

Income (loss) from $ 18,507 $ (4,657) $ 34,931 $ 2,554operations

Amortization of intangibles 51 149 209 462

Settlement of lawsuits 127 50 280 74

Impairment of assets 271 982 1,672 9,192

Gain on sale of businesses (541) (608) (455) (645)and assets

Gain on insurance - - (209) (33)

Non-GAAP operating income $ 18,415 $ (4,084) $ 36,428 $ 11,604

Reconciliation of GAAP operating marginto non-GAAP operating margin

GAAP operating margin 32.0% -31.6% 24.9% 2.5%

Amortization of intangibles 0.1% 1.0% 0.1% 0.4%

Settlement of lawsuits 0.2% 0.3% 0.2% 0.1%

Impairment of assets 0.5% 6.7% 1.2% 8.9%

Gain on sale of businesses -0.9% -4.1% -0.3% -0.6%and assets

Gain on insurance 0.0% 0.0% -0.1% 0.0%

Non-GAAP operating margin 31.8% -27.7% 26.0% 11.2%

Reconciliation of net cash provided byoperating activities to free cash flow

Net cash provided by $ 14,971 $ 166 $ 32,217 $ 12,147operating activities

Less: Maintenance capital 2,017 - 4,608 2,111expenditures

Free cash flow $ 12,954 $ 166 $ 27,609 $ 10,036

RCI HOSPITALITY HOLDINGS, INC.

SEGMENT INFORMATION

(in thousands)

For the Three Months For the Nine Months

Ended June 30, Ended June 30,

2021 2020 2021 2020

Revenues

Nightclubs $ 41,031 $ 6,013 $ 97,015 $ 75,239

Bombshells 16,077 8,531 42,218 27,684

Other 752 177 1,084 618

$ 57,860 $ 14,721 $ 140,317 $ 103,541

Income (loss) from operations

Nightclubs $ 18,350 $ (3,038) $ 37,313 $ 13,002

Bombshells 4,404 1,850 10,263 4,109

Other 321 (92) 107 (423)

General corporate (4,568) (3,377) (12,752) (14,134)

$ 18,507 $ (4,657) $ 34,931 $ 2,554

RCI HOSPITALITY HOLDINGS, INC.

NON-GAAP SEGMENT INFORMATION

($ in thousands)

For the Three Months Ended June 30, 2021 For the Three Months Ended June 30, 2020

Nightclubs Bombshells Other Corporate Total Nightclubs Bombshells Other Corporate Total

Income(loss) from $ 18,350 $ 4,404 $ 321 $ (4,568) $ 18,507 $ (3,038) $ 1,850 $ (92) $ (3,377) $ (4,657)operations

Amortizationof 47 4 - - 51 49 3 96 - 148intangibles

Settlement 123 4 - - 127 50 - - - 50of lawsuits

Impairment 271 - - - 271 982 - - - 982of assets

Loss (gain)on sale of (512) 9 - (38) (541) (619) 16 - (4) (607)businessesand assets

Gain on - - - - - - - - - -insurance

Non-GAAPoperating $ 18,279 $ 4,421 $ 321 $ (4,606) $ 18,415 $ (2,576) $ 1,869 $ 4 $ (3,381) $ (4,084)income(loss)

GAAPoperating 44.7% 27.4% 42.7% -7.9% 32.0% -50.5% 21.7% -52.0% -22.9% -31.6%margin

Non-GAAPoperating 44.5% 27.5% 42.7% -8.0% 31.8% -42.8% 21.9% 2.3% -23.0% -27.7%margin

For the Nine Months Ended June 30, 2021 For the Nine Months Ended June 30, 2020

Nightclubs Bombshells Other Corporate Total Nightclubs Bombshells Other Corporate Total

Income(loss) from $ 37,313 $ 10,263 $ 107 $ (12,752) $ 34,931 $ 13,002 $ 4,109 $ (423) $ (14,134) $ 2,554operations

Amortizationof 141 11 57 - 209 163 11 287 - 461intangibles

Settlement 237 38 5 - 280 74 - - - 74of lawsuits

Impairment 1,672 - - - 1,672 8,947 245 - - 9,192of assets

Loss (gain)on sale of (498) 56 - (13) (455) (619) 16 - (41) (644)businessesand assets

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

Non-GAAPoperating $ 38,700 $ 10,368 $ 169 $ (12,809) $ 36,428 $ 21,547 $ 4,381 $ (136) $ (14,188) $ 11,604income(loss)

GAAPoperating 38.5% 24.3% 9.9% -9.1% 24.9% 17.3% 14.8% -68.4% -13.7% 2.5%margin

Non-GAAPoperating 39.9% 24.6% 15.6% -9.1% 26.0% 28.6% 15.8% -22.0% -13.7% 11.2%margin

RCI HOSPITALITY HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

For the Three Months Ended For the Nine Months Ended

June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020

CASH FLOWS FROMOPERATING ACTIVITIES

Net income (loss) $ 12,321 $ (5,568) $ 27,862 $ (3,427)

Adjustments toreconcile net income(loss) to net cashprovided byoperatingactivities:

Depreciation and 2,057 2,235 6,197 6,696 amortization

Deferred income tax (430) (362) (430) (1,517) benefit

Gain on sale of businesses and (712) (713) (626) (749) assets

Impairment of 271 982 1,672 9,192 assets

Unrealized loss (gain) on equity (9) (31) 58 103 securities

Amortization of debt discount and 59 65 160 194 issuance costs

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

Noncash lease 434 419 1,282 1,244 expense

Gain on insurance - - (294) (33)

Doubtful accounts expense (reversal) 36 495 (22) 495 on notes receivable

Changes in operating assets and liabilities:

Accounts 1,172 (1,970) 4,309 (53) receivable

Inventories (76) 108 (107) (29)

Prepaid expenses, other current 852 2,102 2,346 4,942 assets and other assets

Accounts payable, accrued and other (1,004) 2,404 (4,892) (4,911) liabilities

Net cash provided by operating 14,971 166 32,217 12,147 activities

CASH FLOWS FROMINVESTING ACTIVITIES

Proceeds from saleof businesses and 3,205 1,936 3,213 2,041assets

Proceeds from - - 294 945insurance

Proceeds from notes 34 1,152 95 1,555receivable

Payments forproperty and (4,070) (242) (10,788) (5,565)equipment andintangible assets

Net cash provided by (used in) (831) 2,846 (7,186) (1,024) investing activities

CASH FLOWS FROMFINANCING ACTIVITIES

Proceeds from debt - 5,623 2,176 6,503obligations

Payments on debt (4,868) (3,392) (10,845) (7,489)obligations

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

Payment of dividends (360) (273) (1,080) (920)

Payment of loan - - (25) -origination costs

Distribution tononcontrolling - - - (31)interests

Net cash provided by (used in) (5,228) 1,958 (11,568) (10,425) financing activities

NET INCREASE IN CASH 8,912 4,970 13,463 698AND CASH EQUIVALENTS

CASH AND CASHEQUIVALENTS AT 20,156 9,825 15,605 14,097BEGINNING OF PERIOD

CASH AND CASHEQUIVALENTS AT END $ 29,068 $ 14,795 $ 29,068 $ 14,795OF PERIOD

RCI HOSPITALITY HOLDINGS, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands)

June 30, September 30, June 30,

2021 2020 2020

ASSETS

Current assets

Cash and cash equivalents $ 29,068 $ 15,605 $ 14,795

Accounts receivable, net 2,458 6,767 6,648

Current portion of notes receivable 217 201 219

Inventories 2,479 2,372 2,627

Prepaid expenses and other current assets 4,062 6,488 3,167

Assets held for sale 4,887 - 2,013

Total current assets 43,171 31,433 29,469

Property and equipment, net 178,087 181,383 181,960

Operating lease right-of-use assets, net 24,481 25,546 25,962

Notes receivable, net of current portion 2,819 2,908 2,896

Goodwill 45,440 45,686 47,109

Intangibles, net 73,019 73,077 73,224

Other assets 922 900 873

Total assets $ 367,939 $ 360,933 $ 361,493

LIABILITIES AND EQUITY

Current liabilities

Accounts payable $ 4,909 $ 4,799 $ 3,955

Accrued liabilities 11,738 14,573 10,286

Current portion of long-term debt, net 13,695 16,304 17,249

Current portion of operating lease liabilities 1,720 1,628 1,586

Total current liabilities 32,062 37,304 33,076

Deferred tax liability, net 19,960 20,390 20,141

Long-term debt, net of current portion and debt 113,908 125,131 125,487discount and issuance costs

Operating lease liabilities, net of current portion 24,360 25,439 25,863

Other long-term liabilities 354 362 372

Total liabilities 190,644 208,626 204,939

Commitments and contingencies

Equity

Preferred stock - - -

Common stock 90 91 91

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

Retained earnings 127,753 100,797 103,956

Total RCIHH stockholders' equity 177,883 152,721 156,876

Noncontrolling interests (588) (414) (322)

Total equity 177,295 152,307 156,554

Total liabilities and equity $ 367,939 $ 360,933 $ 361,493

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SOURCE RCI Hospitality Holdings, Inc.