RCI Hospitality Holdings, Inc. (NASDAQ:RICK), a company known for its retail eating places, announced the results of its Annual Meeting of Stockholders, which took place on Wednesday. The meeting, held at the company's Bombshells Dallas location in Texas, included the election of six directors, the ratification of the company's independent registered public accounting firm, and the approval of a non-binding advisory resolution on executive compensation.
The elected directors are Eric S. Langan, Travis Reese, Luke Lirot, Yura Barabash, Elaine J. Martin, and Arthur Allan Priaulx. The appointment of Marcum LLP as RCI Hospitality's independent auditor for the fiscal year ending September 30, 2024, was ratified by the shareholders. Additionally, the non-binding advisory resolution on executive compensation was approved.
The detailed voting outcomes revealed that all director nominees were elected with a varying number of for and withheld votes, and there were a significant number of broker non-votes. The ratification of Marcum LLP as the auditor was passed with a substantial majority, as was the resolution on executive compensation, despite a notable number of votes against and abstained.
These results reflect the decisions made by shareholders regarding the governance and oversight of the company. The total shares of common stock outstanding as of the record date, July 3, 2024, were 9,106,807, with 7,348,752 shares present either by proxy or in person at the meeting.
In other recent news, RCI Hospitality Holdings reported a slight 1.1% decrease in combined club and restaurant sales for the third fiscal quarter of 2024, totaling $75.5 million. However, the company's same-store sales showed a significant improvement, with a mere 1.5% drop compared to a larger 8.6% fall in the previous quarter.
RCI Hospitality also announced an additional $25 million to its share repurchase program, signaling management's confidence in the company's intrinsic value.
Despite some operational downtime due to weather-related closures at its Houston-area clubs and restaurants, as well as the decision to withdraw its Colorado gaming license application, the company is expected to experience substantial revenue growth heading into fiscal year 2025, according to H.C. Wainwright.
The firm maintained its Buy rating and a $98 price target for RCI Hospitality shares. In addition, RCI Hospitality reported second-quarter fiscal year 2024 revenues of $72.3 million, a slight increase from the same quarter of the previous year.
Despite a decrease in revenue from the Bombshells segment, the company is actively implementing management changes and cost reductions in this sector.
The company raised $20 million through a real-estate-backed bank loan, intending to invest in more club acquisitions and share buybacks. H.C. Wainwright expects a stronger second half for the fiscal year for RCI Hospitality, with improving club and restaurant trends.
InvestingPro Insights
RCI Hospitality Holdings, Inc. (NASDAQ:RICK) has demonstrated financial metrics that may interest investors following the recent Annual Meeting of Stockholders. According to InvestingPro data, RCI boasts a market capitalization of approximately $414.47 million, with a notable gross profit margin of 84.65% over the last twelve months as of Q3 2024. This impressive margin underscores the company's ability to maintain profitability, which is further supported by their positive revenue growth of 2.66% in the same period.
InvestingPro Tips suggest that RCI's commitment to shareholder returns is evident, as the company has raised its dividend for 5 consecutive years and maintained payments for 9 consecutive years. Furthermore, analysts predict that the company will remain profitable this year, which aligns with the positive sentiment expressed by shareholders at the Annual Meeting. It is also worth noting that the company's stock has experienced significant price movements, indicating a degree of volatility that investors should consider. For those looking to delve deeper into RCI's performance and future outlook, there are additional InvestingPro Tips available at: InvestingPro.
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