RCI Hospitality Holdings, Inc. (RICK) has reported a 31.72 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $3.76 million, or $0.39 a share in the quarter, compared with $5.50 million, or $0.54 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $3.91 million, or $0.41 a share compared with $3.93 million or $0.39 a share, a year ago.

Revenue during the quarter went up marginally by 0.35 percent to $34.52 million from $34.40 million in the previous year period. Gross margin for the quarter expanded 80 basis points over the previous year period to 85.61 percent. Total expenses were 78.31 percent of quarterly revenues, up from 78.05 percent for the same period last year. That has resulted in a contraction of 26 basis points in operating margin to 21.69 percent.

Operating income for the quarter was $7.49 million, compared with $7.55 million in the previous year period.

However, the adjusted operating income for the quarter stood at $7.66 million compared to $7.80 million in the prior year period. At the same time, adjusted operating margin contracted 50 basis points in the quarter to 22.18 percent from 22.68 percent in the last year period.

"RCI delivered another solid performance, earning $0.41 per share non-GAAP in the second quarter of Fiscal 2017," said Eric Langan, president and chief executive officer. "In addition, we announced the acquisitions in late April of Hollywood Showclub and real estate, for a total of $4.2 million as a low cost entry into the Greater St. Louis market and a foothold in the Midwest. St. Louis is a business and tourist hub, with good convention traffic and great sports teams like the Cardinals in baseball and the Blues in hockey. "Our acquisitions will build upon our original FY17 plan. In addition to our 2Q17 Nightclub and Bombshells units, the second half of FY17 should benefit from the new clubs and Bombshells, our recent club acquisitions, and the possible sale of our first Bombshells franchises."