RCI Hospitality Holdings, Inc. (NASDAQ:RICK) Q1 2023 Earnings Call Transcript

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Q €“ Unidentified Analyst: Yes. I mean look again I don’t know what you’re doing as it relates to your online gaming or sports betting, but I suspect if you’re working with a national partner you’re getting a deal that’s sort of minimum guarantee and some capacity. And again I don’t know but if you’re getting a minimum guarantee on your sort of sports betting or online gambling, I suspect that that in some ways is probably covering a lot of your sort of upfront investment for the thing altogether. So, again I sort of like don’t know the exact numbers, but I suspect that between your online gaming and sports betting, if you’re working with a national partner you’ll have some sort of minimum guarantee and that will cover some part of your investment hopefully all of it.

So, again, I sort of look back and I say to myself I don’t know why we spent two hours or now we’re talking about Bombshells when this casino nightclub strip club thing could be 25%, 30% of EBITDA, it could be doing four times the amount of EBIT that all of Bombshells is doing. So — and not to mention Baby Dolls alone at maturity is $15 million of EBITDA. That’s double. That one acquisition is double the amount of Bombshells. So, look I obviously hope that Bombshells margins go up, but I think the major takeaway for us and all of this is that if you do the casino and it does well, it’s triple the amount of EBIT as Bombshells. If you do one more Baby Dolls, it’s double the amount of EBIT as Bombshells yet somehow the entire sell-side analyst community spent the first hour talking about Bombshells.

So, look it’s exciting this casino and obviously, we’d love to see more Baby Dolls and that’s it for me. Thank you.

Eric Langan: Thanks Adam. Appreciate it.

Mark Moran: Thank you so much for that question Adam. Phenomenal actually more than one question, plural. Next up we’re going to bring Ticker History — actually let’s bring up StockMKTNewz Evan. Evan, please the floor is yours.

Unidentified Analyst: Yes, I appreciate you let me get a question here. Fantastic quarter. I’m also a really big fan of the Rick’s CEO account, the person hosting the space. So, first of all everyone down below make sure you’re following the account. And that’s kind of where I want to dig into my question. We’re doing this on Twitter Spaces. You’re very active on social media. I would love to hear a little bit more about how your use of social media has helped the company, helped the stock? Anything in general, but really how you’ve seen your use of social media Twitter Space is kind of helping Rick’s?

Eric Langan: Sure. I’ll tell you what it’s done. It’s been amazing. We’ve been able to communicate directly with not only end users of our product, investors in our company, potential investors, critics it’s — to me it’s so engaging. I just love the immediate feedback. I can post something. I can ask questions. I can do hypotheticals. I can just be goofy if I want to. It’s just — it’s a great — it’s just it’s a great tool, I would say with Twitter. One of the main things I would say that what has Twitter done for our shareholder base. We started out — I have to go back and pull the exact numbers, I don’t know but it’s 6,000 — between 6,000 and 7,000 shareholders on our name list finish the owners list. And I think now we’re getting close to 9,000.

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