News to Track: RCI Hospitality Holdings (NASDAQ:RICK)

RCI Hospitality Holdings (NASDAQ:RICK) spotted trading -62.76% off 52-week high price. On the other end, the stock has been noted 58.74% away from the low price over the last 52-weeks. The stock changed 5.50% to recent value of $10.35. The stock transacted 193545 shares during most recent day however it has an average volume of 132.52K shares. The company has 9.67M of outstanding shares and 7.98M shares were floated in the market.

On April 9, 2020, RCI Hospitality Holdings (NASDAQ:RICK) declared sales for its Nightclubs and Bombshells restaurants for the Fiscal 2020 second quarter ended March 31, 2020. The company also provided an update regarding its response to the coronavirus situation.

Eric Langan, President & CEO, said, Total and same-store sales were up 11.8% and 5.3%, respectively, through the first 10 weeks of 2Q20 until mid-March, when concern about COVID-19 caused declines at our club and restaurant subsidiaries. Following state and local mandates regarding bars and restaurants, our subsidiaries closed all locations in the third week of March to protect guests, staff, entertainers, and our communities. As a result, we are no longer operating at our earlier FY20 $30 million free cash flow run rate and will provide an update later this year. However, due to strong sales during the first 10 weeks of 2Q20 and our subsidiaries’ ability to begin reducing costs, we believe we ended March with sufficient working capital on hand to fund operations into July without additional borrowings.

COVID-19 Update

Starting mid-March, RCI and its subsidiaries have focused on implementing significant cost-savings and other measures such as: (i) furloughing more than 1,900 employees; (ii) reducing pay of the approximately 100 remaining employees to 75% of previous levels with plans to drop to 50% should closings last through the end of May; (iii) obtaining three-month payment deferrals from both of our major lenders and deferral agreements with others and some of our landlords in the small number of locations where subsidiaries pay rent; (iv) reducing or eliminating nearly all areas of discretionary spending; and (v) filing for business interruption insurance claims.

Its earnings per share (EPS) expected to touch remained 59.80% for this year while earning per share for the next 5-years is expected to reach at 40.00%. RICK has a gross margin of 58.50% and an operating margin of 17.90% while its profit margin remained 10.00% for the last 12 months.

According to the most recent quarter its current ratio was 0.9 that represents company’s ability to meet its current financial obligations. The price moved ahead of 9.58% from the mean of 20 days, -36.39% from mean of 50 days SMA and performed -41.75% from mean of 200 days price. Company’s performance for the week was 20.63%, -21.83% for month and YTD performance remained -49.51%.

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