Q4 2019 Earnings Call
Please hold the line the conference call will begin shortly thank you for your patience.
[music].
Greetings and welcome to our <unk> Ultra Galeazzi Holdings conference call and webcast.
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It is now my pleasure to introduce Gary Fishman, who handles investor relations for ARX <unk>. Please go ahead Sir.
Thank you for those of you listening to this call. The phone you can find a presentation on the Rcs website.
The company at Investor Information, just under the RC I logo that will take you to the company in Investor in full page scroll down a little and you'll find all the necessary weeks for this call.
Please turn to slide two.
I want to remind everybody of our safe Harbor statement, it's posted at the beginning of our conference call presentation.
My view that you may hear or see forward looking statements.
Certain piece I heard you eat it actual results may differ materially from those currently anticipated we disclaim any obligation to update information disclosed in this call as a result of developments that occurred after.
Please turn to slide three I also direct you to the explanation non-GAAP measurements that we use and are included in our presentation and news release.
Please turn to slide four.
Our comparable GAAP versions of four charts and tables that we'll be using in todays presentation.
Finally investors can meet management Tonight at Ricks Cabaret, New York from six to eight pm.
To address its 50 West 30, Threerd Street between fits and Broadway asked for me at the co Chuck.
I'm pleased to introduce Eric Langan, President and CEO of RCR hospitality, Eric Thanks, Gary.
Thanks for joining us today.
Oh on the call, our CFO, Phil Marshall and our Comptroller Bradley shape.
Before we start the call I'd like to thank our staff for their hard work and effort they put in to make fiscal 2019, a great year.
Especially like thank our financial team and our new orders for the long hours, they work, including nights and weekends to get our filings on and all of our shareholders who have continued to believe enough.
Please turn to slide five [noise].
However, the market closed we bought our 10-K as I've had expected to do in February.
Reported $181.1 million in total revenue for fiscal 2019, that's up 9.2% year over year and right inline with what we <unk>, but you know in December.
We reported free cash flow of $33.3 million, that's up 43.3% year over year.
Yes, where the year came in at $1.99 gap and $2.31 non gap for the quarter. It came in at five cents gap and 48 cents non-GAAP.
We'd have to fiscal 17 fiscal 18 re auditing in conjunction with the fiscal 19 audit are ours issue unqualified opinion for those statements are for those financial statements. We also resolved for out of five and trying to control issues and are now preparing our first quarter 10-Q for filing later this month.
Looking ahead, we anticipate a strong fit well 20.
We already reported total club and restaurant sales were up 10% in the first quarter and the second quarter. Many of our class benefited from added business associated with the big may find anywhere.
Our two south Florida, Clos benefited from additional business associated with the pro football Championship in February.
We look forward to good College basketball Championship in March in New York, and Houston, and we continue to expect to close our northeast corridor acquisition this quarter.
The new bombshells doing well that includes our newest which opened in January and we expect same store sales and margins to continue to rebound.
In addition, we have about $6.7 million, an access properties under contract to sell and even more that were in the process of marketing.
[noise], please turn to slide six.
Nightclub segment sales were up almost 6% leadership Pittsburgh in Chicago acquisition.
We also had some same store sales growth on top of a very strong fiscal 2018.
Oh, So bombshells total sales were up close to 28% new units more than offset same store sales declines during the first nine months.
GAAP operating profit increased $7 million. This was due to improved performance in night clubs and bombshells and lower other charges. This was partially offset by higher bombshells, preopening costs and higher audit and related legal costs.
On a non-GAAP basis operating profit increased about $1 million.
The key factor with improved performance in nightclub.
[noise] turning to slide seven.
The keeping I'd like to point out is rebound the bombshell same store sales at 19.4% year over year and segment operating margins at 9.3% non gap versus 3.3% a year ago.
Turning to slide eight.
As part of our efforts to fill up access and asset.
We generated total proceeds of more than $8 million and 2019 most of it in cash.
We use that to pay down $5.2 million and related debt and recorded $2.9 million and gain.
As I mentioned earlier, we have approximately $6.7 million and three access properties under contract to sell and we have five remaining properties with about $9 million a market value that we plan to either seller lease.
When we close them. This should conclude the effort. We started a few years ago to monetize Oliver <unk> assets and the excess property, we bought around some of our new Bombshells [noise].
[noise], please turn to slide nine.
We're pleased with what we have been seen in the nightclubs and the turnaround that is beginning to happen with bombshells.
We still must work on corporate cost to get the operating leverage we had anticipated several years ago.
That was wouldn't we installed our new enterprise resource planning or or ERP system, we should begin to see some progress on this front and the second half of fiscal 20, that's when auditing and related legal costs should begin to fall on a year over year basis.
Please turn to slide 10.
I covered most of this already regarding acquisitions for physical 20, we are focused on closing and then integrating our northeast corridor acquisition. We've seen a few club opportunities that look promising but the club and the deal must be it are well established parameters to make it attractive enough for us for sale.
Please turn to slide 11.
[noise] I'm pleased to report that with the opening a bombshells 59 in late January we have completed our three year plan to opened six new locations in greater Houston, giving us a total eight stores in and around the city as you can see from this math, we afford locations and the focus areas between the inner and outer loops and four locations in the fastest growing subs.
All of our stores have a good 20 minutes to freeway driving time between them.
Turning to slide 12.
In addition to what we've accomplished in Houston, we have offer we modified our first bombshells in Dallas given to more of today's refine look and feel and more square footage placed on the 10 locations. We now have we continue to believe bombshells should have annualized revenue run rate in the $40 million to $50 million range by the end of fiscal 20.
Our internal targets is margins in the 18% to 21% range as we sell or lease out access property around some of our newer bombshells actually generate additional increases in store traffic as the property is developed.
We have we have we haven't currently picked out any new locations and we are waiting to build up our management teams. After opening six locations in such a short time, we want to evaluate the our ROI on our investment as well [noise].
Please turn to slide 13.
We ended fiscal 2019 with $14 million in cash on hand, as I discussed earlier free cash flow performed well that conversion rate of 18.4% of revenues compared to 14% the year before we started our fiscal free cash flow.
Our focus on free cash flow and capital allocation.
We generated 18 cents every dollar we took in we also outperformed our stated goal of 10% to 15% annual free cash.
And grow the free cash flow per share.
We used some of that out as cash and fiscal 19, and first quarter fiscal 2000 to reduce our diluted weighted average shares outstanding more than 4% since fiscal 2018.
All together since fiscal 2015, we have spent approximately $20 million buying back shares.
[noise] turning to slide 14 for our capital allocation strategy.
We currently operate we're currently operating at a 30 million dollar free cash flow run rate. It represents a 15% increase from our target rate of $26 million in fiscal 2019.
15% growth being more inline with our stated free cash flow goals.
As a result, we've calculated our free cash flow yield graph to show $30 million against our current 9.258 million share count.
Our breakeven price point between buying back shares and focusing all of our excess cash on expansion is now about $32 in other words based on where we are today, we would be comfortable buying back shares up to $32.
To further that effort, we announced on Monday that our board of directors based on our Q1, 25th our financial performance authorized the repurchase of an additional $10 million a common stock that brings our total available funds to approximately $13.8 million that includes the finds remaining from the previous authorization.
[noise] long term debt on slide 15.
Even with the acquisition of clubs in Pittsburgh in Chicago.
And our build out of new Bombshells long term debt was down $3.1 million from June Thirtyth and up only $2.6 million from September Thirtyth 2018.
Please note that going forward due to new Aquas, new accounting regulations, we have to capitalized leases and present them as long term debt that will start in the first fiscal quarter of 2014.
[laughter].
Please turn to slide 16.
As we mentioned on the last call.
Daniel Bank realization dropped $8 million in fiscal 2000. This gives us plenty of room for the new 11 million dollar.
And unsecured centennial alone that we anticipate using for the northeast quarter acquisition, making that a 100% financed acquisition.
Looking at that three major metrics, we used to monitor debt our maturity schedules continues to be manageable.
Total long term debt to adjusted EBITDA fell 3.1 to 3.1 times at September 32019 from a high of 3.38 times on December 30, Onest 2018.
Occupancy cost for fiscal 19 were 7.8% up a minor amount for the year.
Excuse me on the year before mainly due to interest expense on two new bombshells that were substantially complete but didn't open until fiscal 20.
[noise] going forward, we continue to be focused on running the business.
Looking at night clubs, our priorities are continuing to improve operations.
Finalizing and then integrating our northeast corridor acquisition, and ensuring that any acquisition opportunities that fit our parameters.
Regarding bombshells, our priorities are guiding all the new locations to ensure their success and continuing to grow same store sales and margins at our older units.
In terms of asset management, we would like to close on all of our pending opportunities.
We continue to be focused and we have the financial strength to grow free cash flow per share at least 10% to 15% per share through a combination of buying back shares buying the right clubs in the right markets and of course internal growth.
Now do we have filed our 10-K, we're focused on following our first quarter 10-Q. Later this month with regard to that I'm pleased to report the audit Committee has appointed freedom LLP as the company's independent registered public accounting firm for fiscal 2020.
Operator, let's start with you and I and as always I'm happy to talk with all aspects of the business, but I. Appreciate if you understand I'm limited in what I can say when it comes to certain legal matters.
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One moment, please why would burn for questions.
Our first question comes from Marco Rodriguez with Stonegate Capital Partners. Please go ahead.
Good afternoon, Thanks for taking my questions.
Good afternoon.
I was wondering if maybe you can start off on the night clubs.
Wrapping up here in your prepared comments you were talking about improving operations there for the existing clubs.
Maybe if you can just provide a little extra color as far as out what's sort of improvements you're looking at and are those improvements revenue generating type improvements or there's some sort of operational aspects that might be able to.
Drive margins, a little bit higher with the same revenue base.
It's a little bit both.
Obviously depend on which markets were in some some markets are more competitive than others.
We're working on those things. We're also Oh always working to put a you know more people and more seats. So.
The new a.
Saint Louis club, but after the after the fire the remodel.
We made some some improvements there were also looking at some of our other I would say underperforming class, but just just clubs that we think that can form a little bit better.
And I think about our industry's once all the fixed costs are paid.
Every dollar we do on top of that.
As you know very large incremental margins.
Those dollars and so thats really what we're focused on as we move forward.
Got it and in terms of.
The acquisition landscape for for the night clubs SEC sector.
Obviously, it sounds like a tuck in acquisitions are a little bit more in your lane at least in the near term maybe if you can talk a little bit about the devaluation is that you see out there right now anything sort of interesting that.
My Bill in the front burner versus the backbone in fiscal 2000.
Hi, good to be honest, we're not really out looking.
First off right now, it's they're coming to us sellers are calling us brokers are calling us.
And we're looking at the deals on a deal by deal basis, a and seeing what fits best for US, we're sticking pretty close to our our three times EBITDA.
Especial such situation special licensing Clubber limited competition market are very special hardware, we might to expand closer to four times.
You know, we're just like I said, we're just playing a tight right now.
We've got our growth in for this for this fiscal year.
Over over last year.
On our target growth rate of 10% to 15%.
So we're not a we're not taken big chances, but what we're looking and there's a lot of stuff.
I'm really amazed that at the amount of.
Stuff, we're seeing and people were talking to right now that that are that at least kicking the tires I don't think they're all serious sellers right now.
But I think there kicking the tires kind of trying to evaluate.
And plan for their futures. So it's looking very good for us on a go forward basis.
Very helpful.
And then in terms of the again the night clubs I'm, just kind of give us your thoughts here as well as far as.
Same store sales expectations as we look into fiscal plenty.
The 20 is going to be a little better than 19, because we had Super Bowl in Miami This year.
We've got some other sporting events that are I think going to be pretty good for us, including the MB All star game in Chicago.
Which is going to help that location.
There's a couple of big Feis may fights that if that have happened.
I think there are helping sales and hopefully there'll be some more of those as well.
You know as we get through the basketball season, what we'll see how some of our local teams are doing there for playoffs and whatnot.
But overall, we're very excited about the about the prospects of 2020 for the clubs.
Got it and last quick question, if I might on the Bombshells side I'm. Just wondering if you can maybe talk a little bit more as far as framing that opportunity there. There's obviously been.
Quite a different.
A lot different strategic direction changes, if you will firm up from our potential franchise model to a regional model to.
Just a focus on on Texas at the moment and I understand in your prepared comments you're.
You are looking to add some more people some more head count to that just kind of give us your thoughts as far as what you are sort of expecting for that particular business in the fiscal 20, what might be sort of the plans.
Longer term and then any sort of expectations that you might be able to talk about in terms of same store sales for bombshells would be would be helpful.
Yes.
It's been a learning curve us with bombshells.
Something we started out we knew that we knew the bar side of the business, we weren't as familiar with the food side of the business.
Yes.
Learning curves with our location choosing in the beginning where we we did those that store in Webster that didn't work out of course as a relocation.
I think we've learned from all those things.
Things weve been studying and learning the market better.
We put the horse in front of that are the bug in front of horse. When we worked on franchising, we start a little too soon.
Now the real time, I think we will start seeing and franchise interest as we reach from what I've seen the path most of our franchise that we study little more most franchises start out when they're based companies are between 50 and 100 million in revenue.
We're going to be in that.
Pretty close out right now or we may need to add a few more few more locations.
Maybe in 21 or 22, even.
To get to get the franchising really going on we havent talked with more franchisees.
We have in the past.
So we're getting more interest as as it continues to grow.
So that is definitely going to be part of our plan in the future the franchise locations.
But I don't think it'll stop us from from company owned stores either at will.
If we can get the margins that we think we're going to hit and with the bank financing that we're doing the cash on cash returns are just too high.
On these bombshells, what we're going to wait we're going to prove it all out over the next probably the next two quarters.
You'll see it as we move through the end of March and then through the June quarter, I think we're gonna see some some pretty impressive numbers coming out of the bombshells.
Based on the new stores openings and some of the numbers the new stores are doing.
We figured out the primary locations, we're getting the traffic counts were realizing.
What complimentary other restaurants, we'd like to have around us.
Yes, basically complement our business and add to our add to our business.
And I think we're getting pretty good at it and I think that will start showing the numbers as we.
Report our.
October to December numbers here at the end of this month and then in May when we report the January to March numbers, and then definitely by August I think you're going to see the trends.
A much more positive light for the bombshells.
Got it thanks, a lot I really appreciate your time.
Yes. Thank you.
[laughter] once again, if you have a question. Please press Star then one on your telephone.
Our next question is from Darrin Mckennon with cash flow Kingdom. Please go ahead.
Hey, guys.
Okay, you're not going to be able answers I got to ask it either you talked about the FCC instigation.
Oh, we're continuing to cooperate that's what I can tell you.
Okay.
Ongoing work, we're continuing to cooperate we cooperated from day, one and we'll continue to cooperate.
Fair enough.
On free on your free cash flow guidance.
I'm kind of curious why you're using 30 million for your free cash flow.
Well.
On your charge your buyback chart when you actually did 33 already.
Well, we have some we have some tailwinds last year.
Including some some tax benefit.
From last year that I don't know for sure. We're gonna have this year. So what we did and we're not really giving guidance. What we're telling you as this is our run rate.
Currently the $30 million is our current run rate.
Based on all things being the same for from from today forward well, we figure will do about $30 million and free cash flow for the year.
As as we get more financial data through the first quarter second quarter.
Maybe subject to change and at some point, we may actually give guidance our target of some kind.
But at this point, we're just not a position really to give any type of target or guidance or anything. We're just we just wanted to make sure that.
Our investors understood our current run rate.
Okay. So when you say run rating, mostly taking Q4 numbers or.
Yeah, we're taking 2019 numbers and taking our projections for.
For 2020, a little bit with the some of the new stores that are opening and fan all things being equal without the tailwinds without the tax benefits tailwind from the AG changes in working capital and whatnot that that are run rates about $30 million.
Okay.
I saw your SGN any was up about 1.5 million this quarter over last quarter.
Is that something I should expect to continue or is that one time because of audit et cetera.
I think we'll see a little revenue in the first and second quarter of this year and then I'll start declining.
In the in the second half of 2020 as were.
Through with some of the legal expenses regarding.
The internal investigation the FCC stuff.
There are the re audit three years financials those types of thing Theres a lot of additional.
Legal and accounting cost in our numbers.
That I think.
Hopefully, we'll start winding down as we get into the second half the year.
Okay.
You gave US 14 million in cash and September can you give us an update on them.
I have it.
Today sorry.
[laughter] can't blame me for trying.
Okay. Last question is blackout are you guys in blackout until you report so theres a number quarter.
I don't know were quote unquote in black out, but we will yeah, we will not be buying any stock in the open market.
Until at least three days after we get our we get our financial that.
So the December quarter financials.
Yeah, what will be later this month.
Okay. That's all I got thanks, guys.
Alright, thank you.
Our next question is from your own Newmarket with one main capital. Please go ahead.
Hey, guys congrats on getting the K filed.
I guess first question I sense. Thank you guys are pulling back on some of that bombshells locations should we see reported capex this year.
Down closer to what Europe, you define as maintenance Capex and at your run rate of 30 million.
Free cash flow I guess should we actually see.
30 million of cash flow from flat.
Okay.
I think youre going to see the numbers get closer but.
Keep in mind as we buy new acquisitions some of that investing capex. We may have some investing capex that will that we're going there.
If we were too.
Towards the end of the year by additional properties.
Or whatnot and make some additional investment.
Of course, depending on what our stock price is doing.
That would that would affect it but yeah I think you're.
All things being if we Didnt know expansion, yes. It would they would be the same number right that we'd have no investment capex, we only have basically stock buybacks or our cash we continue to build on the balance sheet. So the numbers would be the Sam I don't I don't look at investment Capex as.
As a cost of the company that that's the redeployment of the of the of the free cash flow that we generated for the year.
That's why we only your maintenance capex as as a deduction for free cash flow because if we didnt know further investment the cash would just build up in the company and therefore, we generated that free cash flow and so well maintenance capex is that money, we actually spent on maintenance or repairs of existing assets and that's why we deduct that from our operating income.
Right right, Okay that makes sense.
The other question I had was I guess.
Ladies and Chen with your new Auditor and.
Given all that.
Changes in technology and procedures you guys have implemented.
Recently do you feel like you have.
Im checks in place now the catch any of these future.
Disclosure requirements for they.
Thanks again.
On the disclosure so absolutely I mean, there were no financial.
Really nothing significantly financial or or material on any kind of financial numbers, our financials have always been solid.
Some of the disclosure stopped we didn't know what we Didnt know a you know we hired what we thought was a big six from top from that was going to.
Bring us into the you know to the 2020 and grow with US. Unfortunately, that's not that's not what happened.
I will say with Friedman, they're tough hard, but their fair and we've been able to.
I think create a very good working relationship between.
Their staff in our staff and.
Our management team and our management team.
And I look forward to getting through fiscal 2020, now and continue to see the you know the relationship evolve.
We hired a.
Third Party internal review company, who really helped us get all of our systems in place and put everything to get rid of four out of the five material weaknesses, the remaining through weaknesses and financial controls and reporting as you because we had some disclosure issues that we missed.
As you know from the August 8-K.
We're still working through most of that.
In order to remove a material weakness you have to have 12 full month of no issues.
So I'm, hoping we get through 2020 with no issues. We do have a you know a chief compliance officer, we have disclosure committee now that read as reviewing.
You know multi the transactions every quarter to make sure that that we don't that we've missed anything going forward.
So I think we're in a better shape, we're much better understanding of what's required I think that was the biggest thing I can we didnt know what we didn't know.
So right.
And I got the last question I'm actually is.
So can you guys generate 30 million free cash flow this year.
And you have a bunch that's it for all these asset sales earmarked.
And if you end up selling not only the ones.
The ones that I guess, our for sale now.
Theory are you able to deploy you have some debt amortization payments, but in theory, you should be able to deploy either for debt pay down or for growth more than $30 million is there between debt pay down and either buybacks or growth Capex is under way to think about it.
I'd have to look at everything, but probably closer to the $24 million to $25 million range with the current sales we could it have to pay down debt. Some of the properties have debt against them, we have to pay down some of the debt.
Got it gets on debt pay down.
Capital deployment, and then between debt Paydown and growth investments.
Oh, Yeah, we'll have an I'll have.
I think we'd have more than $30 million. We include the debt Paydown, Yeah, I mean, procure we're going to 30 million plus you have remember all the other stuff shows up below the in operating income line for the on the asset sales that goes into other so it's below the line so.
That's not really included in our free cash flow numbers.
I know that are out of the 6.7 million I know one properties owned free and clear, which will not us about two point.
One $6 million in cash.
That's scheduled to close March 17.
While the other properties there is a small loan on where I know, we're going to get some cash side on how much.
Maybe.
Four to 600000 and the other property.
I don't remember enough on I know, there's a small loan on it as well I just don't know.
What what's left because that was a property.
Where we sold one of the pieces already so I have to see what's left on that loan.
Got it perfect. Thank you.
Yes. Thank you.
For any further questions. Please press Star then one on your telephone.
Next question is from Adam Mikkelsen with Cooper capital. Please go ahead.
Yes, Hi, Eric.
Adam area, yes, good earlier.
I'm good.
So my question is really just a follow up to that last one that.
If you use the proceeds from these asset sales and you've got some mandated debt pay down.
Are you being able to redraw that under your existing bank facilities, along the lines like if you're reducing debt does that then increase your availability for other uses.
I think certainly I mean, obviously don't have an actual line of credit so to speak.
But we've been able so far anything we've asked the bank.
For we've been able to get.
We do have some small regional banks and taxes that we basically have paid off in full.
With some of these.
Some of these refinances.
So yeah I mean.
I haven't really look to borrow money other than when we need it.
And we've been able to and so far we've been able to get money anytime we meet it.
I think that the reality is.
We'll go back down to about three times.
Uh huh.
Debt to EBITDA I think that the reality is because we own so much of our real estate that as long as we don't go over four times I think we're pretty.
Pretty safe.
Borrowing for us, especially if we're borrowing add additional EBITDA.
So that's kind of where weve.
If you look we went after about 3.38 and then even if it's up a little bit the ratios down and that's because we added.
We were able to add additional EBITDA, that's bringing that down.
As we move into the full year and we have the two new bombshells actually contributing.
Both those milestones by the way, where our most expensive units to date.
They are both very very prime a like they're probably.
Always hear the always say the 1% of 1% I think these are both in the in the top 10% of the 1%.
When it comes to locations.
Both stores are performing very very well two of our best opening stores ever.
And I think they're both going to continue to do very very well there both in very very high traffic areas there.
Ones next to the top.
Location for two other major changes their top performing in their chains.
I think it's going to be our top performing and the bombshells chain as well and the newest location that we just opened his.
On the busiest freeway and Houston and a super busy intersection there isn't construction going on north of us that may affect us for.
A little while.
But it won't matter I mean, we're we're it's actually helping us because were we'd probably too busy at certain times without it right now so right right very excited about them.
So with with this borrowing base Eric.
Like on the this northeast acquisition, where you are able to just have no money down.
Hey, how are you able to go in for a variety of banks and kind of.
Get based pricing from them or do you just go to centennial and that seems to increase the amount there that you've already how does that work in terms of being able to.
Directionally deals with with with CRM Anita.
As you know I'm relationship Guy and we have a great relationship was centennial.
As long as their fair and I believe you know when you start talking about 7% unsecured money in 5.5% 20 are amortizing real estate debt money. That's that's what we're getting quoted another bank side. It I wouldn't say, we we didnt like officially shopping I mean, I unofficially made some phone calls just to see makes for their rates are in line with what.
Being offered from other banks.
And they always have been a they're easy they're easy for us to work with Weve, because we've done so many deals with them now.
We do have other banks that are interested.
Right now.
And maybe doing a big refinance package for us our next big refinanced pack will happen in November of 20.
When the Chicago in Pittsburgh.
Properties become two years old.
Because we'll we want it would probably want to pay those those owners off and refinanced most of the bombshells, though have been operating for.
Between 12, and 24 months, so we'll take all those properties and just combine them all into a single a real estate loan like we did back in 2017.
Well look to see what type of equity we can pull out at that point, which should give us another little war chest for acquisitions or or stock buybacks mainland stock doing and.
And I think will be set again to basically rebuild over the next.
Here for three years and.
Hopefully bill to reload and do it again.
Great. Thanks, that's all for me.
Thank you.
Our next question is from Steven Martin with Slater. Please go ahead.
Hi, guys.
Hey, I know earlier in the call you talked about the Super Bowl and you may fights that have occurred can you give us some idea of what what those me either to the clubs the restaurants or both and does it matter where they're located or.
Hometeam is for whatever.
I don't know yet.
Go ahead.
Yes, they may I mean, as a matter where it may take slate because people lifetime favorably.
And what the pay per view it was speak for bombshells in we show it.
I want to say we.
The Mcgregor fight was shown it nine teen locations.
I'd like to check go back and check to make sure but.
So it's significant for us and it's also significant for the some of the case, we don't show it out because there after hours clubs. So they wouldn't want to go to show the fight because nobody knows that club until after the Faisel.
But more people are out that night clubs get more bit because people were already out.
So thats been good for us.
You know what would the football championship game.
We had what I consider the two best possible scenarios based on our two best things based on the scenarios out there on on fan base is and dollar and whatnot.
Kansas City fell out of 78000 seat stadium, when it's 40 below zero.
You know that there's some dedicated fans.
We've seen a really nice bump at both of the the Florida clubs.
Up a considerable amount over the previous year.
So.
No definitely help our February numbers I'd, just bombshells, so Houston didn't make it to the Super Bowl did bombshells biggest you do have can rest 10 restaurants in Texas did bombshells see a good bump from the Super Bowl.
We did on the Super Bowl.
For the playoffs.
And our actually getting some interest on the X. I fell right now where some people are coming in and watching the exit for games for openings will see the opening weekend.
So that looks promising for us and that'll be that'd be new revenue.
That brings people in on Saturdays and Sundays that after news that during the season that mark coming last year. So hopefully that will help us some comps as well as our comps as well.
Right I guess for the ensuing double A's last year, you had the finals and this year you have the two regional fine Q2 of the four regional.
Yeah, I think we might see a little drop in April because rent vinyls last were in April.
And the the games this year in New York in a in Houston will all began in March so.
Well should help our March numbers, a little bit.
It makes it a little job in April, but I'm, not really concerned with it it wasn't a it wasn't a huge bump. It was it definitely was a bump in in Minneapolis, but other than that.
Well huge bumper plays out so shouldn't shouldnt have that much effect in April.
Okay. Thanks, a lot.
Thank you.
Are there any final question. This is the last chance for questions. Thank you.
There are no further questions registered at this time I would like to turn the conference back over to management for any closing remarks.
Hi, This is Gary. Thank you Eric we've included a few supplemental slides in our appendix.
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This concludes today's conference call you may disconnect. Your lines at this time, thank you for participating and have a pleasant day.
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