RCI Hospitality executives sign new employment contracts

Published 05/09/2024, 21:52
RCI Hospitality executives sign new employment contracts

RCI Hospitality Holdings, Inc. (NASDAQ:RICK) announced today that it has entered into new employment agreements with key executive officers. Eric Langan, the CEO and President, and Travis Reese, the Executive Vice President and Secretary, have both signed new two-year contracts effective since Monday.

The new agreements, which began on September 1, 2024, follow the expiration of the executives' previous contracts on August 31, 2024. Under the terms of the new contracts, Travis Reese will receive an increased annual salary of $575,000. Eric Langan's salary will remain unchanged at $1,700,000.

In addition to their salaries, both executives are eligible for bonuses and will receive standard benefits including expense reimbursement, health benefits, and participation in the company's benefit plans. They will also have access to a company-owned automobile, company-owned aircraft in accordance with corporate policy, and two weeks of paid vacation annually.

The agreements also include confidentiality clauses and non-compete provisions that prevent the executives from competing with RCI Hospitality for a specified period after their contracts end.

In other recent news, RCI Hospitality Holdings has reported a series of significant developments. The company has boosted its quarterly dividend to $0.07 per share, marking a 16.7% increase from the previous quarter.

RCI Hospitality also reported a modest 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 announced the results of its Annual Meeting of Stockholders, which 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. H.C. Wainwright maintained its Buy rating for RCI Hospitality shares and expects substantial revenue growth for the company heading into fiscal year 2025.

The company reported second-quarter fiscal year 2024 revenues of $72.3 million, a slight increase from the same quarter of the previous year. RCI Hospitality also raised $20 million through a real-estate-backed bank loan, intending to invest in more club acquisitions and share buybacks.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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