RCI Reports 1Q25 Results, Hosts X Spaces Call at 4:30 PM ET Today
Summary Financials (in millions, except EPS)
1Q25
1Q24
Total revenues
$71.5
$73.9
EPS
$1.01
$0.77
Non-GAAP EPS1
$0.80
$0.87
Other gains, net
$(2.2)
$0.0
Net cash provided by operating activities
$13.3
$13.6
Free cash flow1
$12.1
$12.7
Net income attributable to RCIHH common stockholders
$9.0
$7.2
Adjusted EBITDA1
$15.7
$17.5
Weighted average shares used in computing EPS – basic and diluted
8.92
9.37
1 See "Non-GAAP Financial Measures" below.
1Q25 Summary (Comparisons are to the year-ago period unless indicated otherwise)
Eric Langan, President and CEO, said: "Nightclubs total and same-store sales increased, while GAAP and non-GAAP segment operating profit were approximately level with last year, despite the absence of a club due to fire in July. Bombshells total sales declined as expected with the sale/closure of underperforming locations, but GAAP and non-GAAP segment operating profit and margin improved. Consolidated net cash provided by operating activities and free cash flow nearly matched year-ago levels, and we continued to make progress with our Back to Basics 5-Year Capital Allocation Plan."
Back to Basics 5-Year Capital Allocation Plan (FY25-29)
1Q25: Sale/closure of four underperforming Bombshells segment locations, for a total of five since September 2024.
1Q25: Repurchased 66,000 common shares for $3.2 million ($48.76 average per share), with 8,889,000 shares outstanding at December 31, 2024.
2Q25: Acquired Flight Club, the premier gentlemen's club in the Detroit market ($8.0 million for the club and $3.0 million for the real estate). The location is expected to generate an estimated $2.0 million in annualized EBITDA.
2Q25: Opened an 8,500 square-foot Bombshells in downtown Denver.
X Spaces Conference Call at 4:30 PM ET Today
Hosted by RCI President and CEO Eric Langan, CFO Bradley Chhay, and Mark Moran of Equity Animal.
Call link: https://x.com/i/spaces/1zqKVjQVzjLKB (X log in required).
Presentation link: https://www.rcihospitality.com/investor-relations/.
To ask questions: Participants must join the X Space using a mobile device.
To listen only: Participants can access the X Space from a computer.
There will be no other types of telephone or webcast access.
1Q25 Results (Comparisons are to the year-ago period unless indicated otherwise)
Nightclubs segment: Revenues of $61.7 million increased by 1.1%. Sales primarily reflected a 3.7% increase in same-store sales, three new and reformatted clubs in Texas, and the absence of Baby Dolls Fort Worth due to fire in July.2 By type of revenue, food, merchandise and other increased by 8.6%; alcoholic beverages increased by 3.0%; and service declined by 3.7%.
The quarter included a gain of $1.0 million from additional cash insurance proceeds related to the July fire. Operating income was $20.9 million (33.8% of segment revenues) compared to $20.4 million (33.4%). Non-GAAP operating income, which does not include the gain, was $20.6 million (33.4% of segment revenues) compared to $21.0 million (34.3%).
Bombshells segment: Revenues of $9.6 million declined 24.7%. Sales primarily reflected the sale/closure of underperforming locations, a 7.5% decline in SSS, and a full quarter of the Stafford, TX location, which opened in mid-November 2023.2
The quarter included a gain of $1.3 million for a Bombshells that was sold. Operating income was $2.0 million (20.6% of segment revenues) compared to $86,000 (0.7%). Non-GAAP operating income, which does not include the gain, was $642,000 (6.7% of segment revenues) compared to $149,000 (1.2%).
Corporate segment: Expenses totaled $8.8 million (12.3% of total revenues) compared to $7.1 million (9.6%). Non-GAAP expenses totaled $8.4 million (11.7% of total revenues) compared to $6.6 million (9.0%). The increase reflected an expense of approximately $1.7 million to establish a self-insurance reserve.
Other gains, net of $2.2 million within consolidated operations included the fire insurance proceeds and the gain on sale as discussed in the Nightclubs and Bombshells paragraphs above, respectively.
Income tax expense was $1.85 million compared to $1.80 million. The effective tax rate was 16.9% compared to 19.9%.
Weighted average shares outstanding of 8.92 million decreased 4.8% due to share buybacks.
Debt was $235.5 million at December 31, 2024, compared to $238.2 million at September 30, 2024. The difference primarily reflected scheduled pay downs.
2 See our January 8, 2025, news release on 1Q25 sales for more details.
Non-GAAP Financial Measures
In addition to our financial information presented in accordance with GAAP, management uses certain non-GAAP financial measures, within the meaning of the SEC Regulation G, to clarify and enhance understanding of past performance and prospects for the future. Generally, a non-GAAP financial measure is a numerical measure of a company's operating performance, financial position or cash flows that excludes or includes amounts that are included in or excluded from the most directly comparable measure calculated and presented in accordance with GAAP. We monitor non-GAAP financial measures because it describes the operating performance of the Company and helps management and investors gauge our ability to generate cash flow, excluding (or including) some items that management believes are not representative of the ongoing business operations of the Company, but are included in (or excluded from) the most directly comparable measures calculated and presented in accordance with GAAP. Relative to each of the non-GAAP financial measures, we further set forth our rationale as follows:
Non-GAAP Operating Income and Non-GAAP Operating Margin. We calculate non-GAAP operating income and non-GAAP operating margin by excluding the following items from income from operations and operating margin: (a) amortization of intangibles, (b) settlement of lawsuits, (c) gains or losses on sale of businesses and assets, (d) gains or losses on insurance, and (e) stock-based compensation. We believe that excluding these items assists investors in evaluating period-over-period changes in our operating income and operating margin without the impact of items that are not a result of our day-to-day business and operations.
Non-GAAP Net Income and Non-GAAP Net Income per Diluted Share. We calculate non-GAAP net income and non-GAAP net income per diluted share by excluding or including certain items to net income or loss attributable to RCIHH common stockholders and diluted earnings per share. Adjustment items are: (a) amortization of intangibles, (b) settlement of lawsuits, (c) gains or losses on sale of businesses and assets, (d) gains or losses on insurance, (e) stock-based compensation, (f) gains or losses on lease termination, and (g) the income tax effect of the above-described adjustments. Included in the income tax effect of the above adjustments is the net effect of the non-GAAP provision for income taxes, calculated at 17.7% and 19.9% effective tax rate of the pre-tax non-GAAP income before taxes for the three months ended December 31, 2024, and 2023, respectively, and the GAAP income tax expense (benefit). We believe that excluding and including such items help management and investors better understand our operating activities.
Adjusted EBITDA. We calculate adjusted EBITDA by excluding the following items from net income or loss attributable to RCIHH common stockholders: (a) depreciation and amortization, (b) income tax expense, (c) net interest expense, (d) settlement of lawsuits, (e) gains or losses on sale of businesses and assets, (f) gains or losses on insurance, (g) stock-based compensation, and (h) gains or losses on lease termination. We believe that adjusting for such items helps management and investors better understand our operating activities. Adjusted EBITDA provides a core operational performance measurement that compares results without the need to adjust for federal, state and local taxes which have considerable variation between domestic jurisdictions. The results are, therefore, without consideration of financing alternatives of capital employed. We use adjusted EBITDA as one guideline to assess our unleveraged performance return on our investments. Adjusted EBITDA is also the target benchmark for our acquisitions of nightclubs.
We also use certain non-GAAP cash flow measures such as free cash flow. Free cash flow is derived from net cash provided by operating activities less maintenance capital expenditures. We use free cash flow as the baseline for the implementation of our capital allocation strategy.
About RCI Hospitality Holdings, Inc. (Nasdaq: RICK) (X: @RCIHHinc)
With more than 60 locations, RCI Hospitality Holdings, Inc., through its subsidiaries, is the country's leading company in adult nightclubs and sports bars-restaurants. See all our brands at www.rcihospitality.com.
Forward-Looking Statements
This press release may contain forward-looking statements that involve a number of risks and uncertainties that could cause the Company's actual results to differ materially from those indicated, including, but not limited to, the risks and uncertainties associated with (i) operating and managing an adult entertainment or restaurant business, (ii) the business climates in cities where it operates, (iii) the success or lack thereof in launching and building the Company's businesses, (iv) cyber security, (v) conditions relevant to real estate transactions, and (vi) numerous other factors such as laws governing the operation of adult entertainment or restaurant businesses, competition and dependence on key personnel. For more detailed discussion of such factors and certain risks and uncertainties, see RCI's annual report on Form 10-K for the year ended September 30, 2024, as well as its other filings with the U.S. Securities and Exchange Commission. The Company has no obligation to update or revise the forward-looking statements to reflect the occurrence of future events or circumstances.
RCI HOSPITALITY HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share, number of shares, and percentage data)
For the Three Months Ended
December 31, 2024
December 31, 2023
Amount
% ofRevenue
Amount
% ofRevenue
Revenues
Sales of alcoholic beverages
$
32,188
45.0
%
$
33,316
45.1
%
Sales of food and merchandise
10,106
14.1
%
10,802
14.6
%
Service revenues
24,181
33.8
%
25,119
34.0
%
Other
5,008
7.0
%
4,670
6.3
%
Total revenues
71,483
100.0
%
73,907
100.0
%
Operating expenses
Cost of goods sold
Alcoholic beverages sold
5,846
18.2
%
6,281
18.9
%
Food and merchandise sold
3,563
35.3
%
4,038
37.4
%
Service and other
72
0.2
%
40
0.1
%
Total cost of goods sold (exclusive of items shown below)
9,481
13.3
%
10,359
14.0
%
Salaries and wages
20,564
28.8
%
21,332
28.9
%
Selling, general and administrative
26,207
36.7
%
25,201
34.1
%
Depreciation and amortization
3,569
5.0
%
3,853
5.2
%
Other gains, net
(2,244
)
(3.1
)%
(3
)
—
%
Total operating expenses
57,577
80.5
%
60,742
82.2
%
Income from operations
13,906
19.5
%
13,165
17.8
%
Other income (expenses)
Interest expense
(4,152
)
(5.8
)%
(4,216
)
(5.7
)%
Interest income
179
0.3
%
94
0.1
%
Gain on lease termination
979
1.4
%
—
—
%
Income before income taxes
10,912
15.3
%
9,043
12.2
%
Income tax expense
1,847
2.6
%
1,799
2.4
%
Net income
9,065
12.7
%
7,244
9.8
%
Net income attributable to noncontrolling interests
(41
)
(0.1
)%
(18
)
—
%
Net income attributable to RCIHH common shareholders
$
9,024
12.6
%
$
7,226
9.8
%
Earnings per share
Basic and diluted
$
1.01
$
0.77
Weighted average shares used in computing earnings per share
Basic and diluted
8,920,774
9,367,151
RCI HOSPITALITY HOLDINGS, INC.
SEGMENT INFORMATION
(in thousands)
For the Three Months Ended
December 31,2024
December 31,2023
Revenues
Nightclubs
$
61,724
$
61,033
Bombshells
9,587
12,731
Other
172
143
$
71,483
$
73,907
Income (loss) from operations
Nightclubs
$
20,882
$
20,369
Bombshells
1,971
86
Other
(171
)
(196
)
Corporate
(8,776
)
(7,094
)
$
13,906
$
13,165
RCI HOSPITALITY HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
For the Three Months Ended
December 31,2024
December 31,2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income
$
9,065
$
7,244
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
3,569
3,853
Deferred income tax benefit
(389
)
—
Gain on sale of businesses and assets
(1,463
)
(3
)
Amortization and writeoff of debt discount and issuance costs
63
163
Doubtful accounts expense on notes receivable
—
22
Gain on insurance
(1,150
)
—
Noncash lease expense
658
762
Stock-based compensation
470
470
Changes in operating assets and liabilities, net of business acquisitions:
Receivables
2,373
1,229
Inventories
(4
)
(218
)
Prepaid expenses, other current, and other assets
(598
)
(9,029
)
Accounts payable, accrued, and other liabilities
750
9,140
Net cash provided by operating activities
13,344
13,633
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of businesses and assets
129
—
Proceeds from insurance
1,150
—
Proceeds from notes receivable
71
55
Payments for property and equipment and intangible assets
(5,754
)
(5,135
)
Net cash used in investing activities
(4,404
)
(5,080
)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from debt obligations
2,963
701
Payments on debt obligations
(5,694
)
(6,352
)
Purchase of treasury stock
(3,218
)
(2,072
)
Payment of dividends
(623
)
(562
)
Payment of loan origination costs
—
(136
)
Net cash used in financing activities
(6,572
)
(8,421
)
NET INCREASE IN CASH AND CASH EQUIVALENTS
2,368
132
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
32,350
21,023
CASH AND CASH EQUIVALENTS AT END OF PERIOD
$
34,718
$
21,155
RCI HOSPITALITY HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
December 31,2024
September 30,2024
ASSETS
Current assets
Cash and cash equivalents
$
34,718
$
32,350
Receivables, net
3,519
5,832
Inventories
4,640
4,676
Prepaid expenses and other current assets
4,226
4,427
Total current assets
47,103
47,285
Property and equipment, net
282,621
280,075
Operating lease right-of-use assets, net
25,573
26,231
Notes receivable, net of current portion
4,103
4,174
Goodwill
61,911
61,911
Intangibles, net
162,881
163,461
Other assets
2,026
1,227
Total assets
$
586,218
$
584,364
LIABILITIES AND EQUITY
Current liabilities
Accounts payable
$
5,010
$
5,637
Accrued liabilities
20,514
20,280
Current portion of debt obligations, net
17,788
18,871
Current portion of operating lease liabilities
3,008
3,290
Total current liabilities
46,320
48,078
Deferred tax liability, net
22,304
22,693
Debt, net of current portion and debt discount and issuance costs
217,741
219,326
Operating lease liabilities, net of current portion
27,471
30,759
Other long-term liabilities
3,611
398
Total liabilities
317,447
321,254
Commitments and contingencies
Equity
Preferred stock
—
—
Common stock
89
90
Additional paid-in capital
58,731
61,511
Retained earnings
210,160
201,759
Total RCIHH stockholders' equity
268,980
263,360
Noncontrolling interests
(209
)
(250
)
Total equity
268,771
263,110
Total liabilities and equity
$
586,218
$
584,364
RCI HOSPITALITY HOLDINGS, INC.
NON-GAAP FINANCIAL MEASURES
(in thousands, except per share and percentage data)
For the Three Months Ended
December 31,2024
December 31,2023
Reconciliation of GAAP net income to Adjusted EBITDA
Net income attributable to RCIHH common stockholders
$
9,024
$
7,226
Income tax expense (benefit)
1,847
1,799
Interest expense, net
3,973
4,122
Depreciation and amortization
3,569
3,853
Settlement of lawsuits
179
—
Gain on sale of businesses and assets
(1,406
)
(3
)
Gain on insurance
(1,017
)
—
Stock-based compensation
470
470
Gain on lease termination
(979
)
—
Adjusted EBITDA
$
15,660
$
17,467
Reconciliation of GAAP net income to non-GAAP net income
Net income attributable to RCIHH common stockholders
$
9,024
$
7,226
Amortization of intangibles
580
659
Settlement of lawsuits
179
—
Stock-based compensation
470
470
Gain on sale of businesses and assets
(1,406
)
(3
)
Gain on insurance
(1,017
)
—
Gain on lease termination
(979
)
—
Net income tax effect
310
(220
)
Non-GAAP net income
$
7,161
$
8,132
Reconciliation of GAAP diluted earnings per share to non-GAAP diluted earnings per share
Diluted shares
8,920,774
9,367,151
GAAP diluted earnings per share
$
1.01
$
0.77
Amortization of intangibles
0.07
0.07
Settlement of lawsuits
0.02
0.00
Stock-based compensation
0.05
0.05
Gain on sale of businesses and assets
(0.16
)
0.00
Gain on insurance
(0.11
)
0.00
Gain on lease termination
(0.11
)
0.00
Net income tax effect
0.03
(0.02
)
Non-GAAP diluted earnings per share
$
0.80
$
0.87
Reconciliation of GAAP operating income to non-GAAP operating income
Income from operations
$
13,906
$
13,165
Amortization of intangibles
580
659
Settlement of lawsuits
179
—
Stock-based compensation
470
470
Gain on sale of businesses and assets
(1,406
)
(3
)
Gain on insurance
(1,017
)
—
Non-GAAP operating income
$
12,712
$
14,291
Reconciliation of GAAP operating margin to non-GAAP operating margin
GAAP operating margin
19.5
%
17.8
%
Amortization of intangibles
0.8
%
0.9
%
Settlement of lawsuits
0.3
%
0.0
%
Stock-based compensation
0.7
%
0.6
%
Gain on sale of businesses and assets
(2.0
)%
0.0
%
Gain on insurance
(1.4
)%
0.0
%
Non-GAAP operating margin
17.8
%
19.3
%
Reconciliation of net cash provided by operating activities to free cash flow
Net cash provided by operating activities
$
13,344
$
13,633
Less: Maintenance capital expenditures
1,276
983
Free cash flow
$
12,068
$
12,650
RCI HOSPITALITY HOLDINGS, INC.
NON-GAAP SEGMENT INFORMATION
($ in thousands)
For the Three Months Ended December 31, 2024
Nightclubs
Bombshells
Other
Corporate
Total
Income (loss) from operations
$
20,882
$
1,971
$
(171
)
$
(8,776
)
$
13,906
Amortization of intangibles
574
1
—
5
580
Settlement of lawsuits
179
—
—
—
179
Stock-based compensation
—
—
—
470
470
Loss (gain) on sale of businesses and assets
16
(1,330
)
—
(92
)
(1,406
)
Gain on insurance
(1,017
)
—
—
—
(1,017
)
Non-GAAP operating income (loss)
$
20,634
$
642
$
(171
)
$
(8,393
)
$
12,712
GAAP operating margin
33.8
%
20.6
%
(99.4
)%
(12.3
)%
19.5
%
Non-GAAP operating margin
33.4
%
6.7
%
(99.4
)%
(11.7
)%
17.8
%
For the Three Months Ended December 31, 2023
Nightclubs
Bombshells
Other
Corporate
Total
Income (loss) from operations
$
20,369
$
86
$
(196
)
$
(7,094
)
$
13,165
Amortization of intangibles
591
63
—
5
659
Stock-based compensation
—
—
—
470
470
Gain on sale of businesses and assets
(1
)
—
—
(2
)
(3
)
Non-GAAP operating income (loss)
$
20,959
$
149
$
(196
)
$
(6,621
)
$
14,291
GAAP operating margin
33.4
%
0.7
%
(137.1
)%
(9.6
)%
17.8
%
Non-GAAP operating margin
34.3
%
1.2
%
(137.1
)%
(9.0
)%
19.3
%
View source version on businesswire.com: https://www.businesswire.com/news/home/20250208891367/en/
Contacts
Media & Investor Contacts Gary Fishman and Steven Anreder at 212-532-3232 or gary.fishman@anreder.com and steven.anreder@anreder.com.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Wire
a few seconds ago
- Business Wire
Phase II of 156-Unit Affordable Housing Community Begins Construction in Līhu‘e, Kaua‘i for Low-Income Families
LĪHU'E, Hawaii--(BUSINESS WIRE)--Hunt Capital Partners, in partnership with Mark Development and ʻIkenākea Development, announced the closing of Uahi Ridge Phase II, a three-story garden-style affordable housing community in Līhu'e, Kaua'i. Phase II adds 60 one-, two-, and three-bedroom affordable rental homes to its 96 units that are already under construction under Phase I, offering a total of 154 affordable homes for families and two manager's units. Phase I closed in August of 2024. 'With construction now underway, we look forward to the day when these affordable homes are complete and we can share in the joy they will bring to families in Līhu'e,' said Chris Flaherty at ʻIkenākea Development. The initiative serves as a critically needed addition to the region's housing infrastructure, providing relief for families who earn up to 30%, 40%, 50%, and 60% of the Area Median Income (AMI). The community will set aside a total of 14 homes for extremely low-income households at 30% of the AMI. Thirty-one of the homes will be supported by 20-year Section 8 project-based rental assistance contracts. 'We are grateful to the many partners, agencies and community members who worked alongside our team to bring Uahi Ridge to life,' said Chris Flaherty at ʻIkenākea Development. 'With construction now underway, we look forward to the day when these affordable homes are complete and we can share in the joy they will bring to families in Līhu'e.' Uahi Ridge emerges at a critical time as housing shortages continue to impact the economic and social fabric of Hawai'i. On Kaua'i, statistics reveal that the island faces a shortfall of 1,400 affordable homes for low-income residents, with median home prices exceeding $1 million, putting homeownership out of reach for many. Renters in Kaua'i County need to work 2.3 full-time jobs with the mean hourly wage of $19.92 per hour to affordably maintain a two-bedroom home with market-rate rents. "Uahi Ridge represents our commitment to bring affordable housing to families throughout Hawai'i's counties, Kaua'i now included," said Dana Mayo at Hunt Capital Partners. "We appreciate the opportunity to direct tax credit equity to assist our development partners in Hawai'i in delivering housing relief for low-income families. Access to affordable housing is critical to providing positive outcomes and enables local families to spend more of their hard earned income on other essential costs." The development team has thoughtfully designed the community and its homes, incorporating a variety of features that enhance its appeal. Residents will have access to an array of amenities, including two clubhouses, two central laundry facilities, on-site management, a playground, picnic areas, maintenance facilities, intercom entry security systems, and eight designated ADA-compliant units for enhanced inclusivity. Once completed, Uahi Ridge will be set to achieve LEED Silver certification by incorporating Energy Star-certified appliances, LED lighting, photo voltaic (PV) solar panels, and infrastructure for future electric vehicle (EV) charging stations. These features not only reduce environmental impact but also help lower living costs for residents by optimizing energy efficiency. The development team, Mark Development, Inc. and ʻIkenākea Development, brings with them an extensive background of affordable housing with communities developed across the state. In addition to their role as developer, Mark Development, Inc. will also serve as property manager. Goodfellow Bros, Inc. will be the general contractor for the site work, and Shioi Construction, Inc. will be the general contractor for the vertical construction. Bow Engineering and Development, Inc. is the civil engineer, and Marc Ventura AIA, LLP is the architect of record. To help make the development a reality, Phases I and II of Uahi Ridge utilize a cumulative $49.3 million in federal Low-Income Housing Tax Credits (LIHTCs), $24.65 million in Hawai'i state LIHTC, and $600,000 in Solar Tax Credits syndicated by Hunt Capital Partners, with JPMorgan Chase as the federal tax credit investor and First Hawaiian Bank as the state tax credit investor. Uahi Ridge is the result of a public-private partnership with financial support from American Savings Bank, Kaua'i County, and the Hawai'i Housing Finance Development Corporation (HHFDC) through its Rental Housing Revolving Fund. Environmental Social and Corporate Governance ('ESG') Investing Hunt Capital Partners recognizes that its institutional investors are seeking to increase the social value of their investments to help further their ESG initiatives. Investment in affordable housing improves the living conditions of its residents. It helps remove obstacles that impede creation of a healthy, safe, and stable home environment for low-income families and seniors' families spend less on housing-related expenses, they have more resources for other essentials such as food and clothing, extracurricular activities, and educational programs. One of the most significant benefits of providing quality affordable housing is an increase in an individual's physical and mental health. Hunt Capital Partners' affordable housing investments create a lasting effect on the people and communities they serve for generations to come. About Hunt Capital Partners Hunt Capital Partners (HCP) is the tax credit syndication division of Hunt Companies, Inc. (Hunt). HCP specializes in the sponsorship of Federal and State Low-Income Housing, Historic, and Solar Tax Credit Investments funds. Since its inception in 2010, HCP has raised over $3.9 billion in tax credit equity in over 48 proprietary and multi-investor funds, financing development in 48 states and territories. Founded in 1947, Hunt is a privately held company that invests in businesses focused in the real estate and infrastructure markets. The activities of Hunt's affiliates and investors include investment management, asset management, property management, development, construction, consulting and advisory. For more information on HCP, please visit or for Hunt, please visit
Business Wire
a few seconds ago
- Business Wire
Continual Engine Collaborates with Colorado Municipalities to Advance Document Accessibility Compliance
AUSTIN, Texas--(BUSINESS WIRE)--States and local governments face increasing pressure to make public-facing documents accessible, but must do so at scale, with limited budgets and internal resources. Colorado municipalities are now turning to PREP, Continual Engine's AI-powered platform, to bridge that gap. Continual Engine, a leader in AI-powered digital accessibility solutions, has announced a collaboration with municipalities across Colorado to streamline document accessibility compliance. Through this partnership, Continual Engine 's platform, PREP (PDF & Document Remediation Platform), is helping local governments to remediate public-facing documents more efficiently and cost-effectively, supporting compliance with Colorado's HB 24-1454 and broader accessibility standards such as the ADA, Section 508, WCAG, updated Title II regulations, and more. The partnership reflects a broader trend where U.S. municipalities are seeking scalable, cost-effective solutions to meet digital accessibility requirements amid staffing and resource limitations. By automating over 90% of the document remediation process, PREP significantly reduces manual workload while ensuring compliance and accuracy. Summer Quintana Rapp, IT Tech & Communications Administration Assistant & ADA Compliance Coordinator, Saguache County, states, 'PREP has significantly reduced both the time and cost involved in making our municipal documents accessible. What once took weeks of manual effort is now completed in a fraction of the time. It helped us keep pace with compliance demands without overextending internal resources." How Municipalities Are Using PREP to Meet Accessibility Mandates Municipalities are leveraging PREP to address rising compliance requirements. With automation at its core, PREP reduces the time, cost, and effort typically associated with document remediation, enabling even resource-constrained local governments to meet accessibility mandates at scale. PREP has processed millions of documents, saved tens of millions in remediation costs, and helped municipalities, from small towns to large cities, meet accessibility mandates. The platform combines advanced automation—tagging, alt text generation, and scanned form conversion—with flexible deployment options (cloud, on-premise, or hybrid). It supports multiple formats, handles complex tables and visuals, and ensures compliance at scale. To support municipalities with urgent or complex projects, PREP also offers dual workflows—self-service remediation for internal teams or document outsourcing to Continual Engine's accessibility experts via a secure platform. Accessibility Assurance with Screen Reader Simulation PREP integrates screen reader previews directly into its remediation flow, enabling government staff to detect and resolve accessibility gaps before publishing materials like emergency alerts, meeting minutes, or budget reports. Mousumi Kapoor, Founder and CEO of Continual Engine, says, 'Municipalities today are navigating evolving accessibility regulations, rising digital expectations, and increasing public scrutiny. We designed PREP to be a dependable partner in that journey, helping local governments accelerate accessibility, reduce operational burden, and deliver real, lasting impact.' About Continual Engine Continual Engine is an award-winning artificial intelligence (AI) technology company dedicated to building smarter, affordable, and scalable solutions for digital accessibility. Its platform, PREP, supports enterprise-level document remediation needs across diverse industries including municipalities, government, education, healthcare, and finance, by leveraging AI and human expertise to deliver scalable accessibility. For more information, visit
Fast Company
a few seconds ago
- Fast Company
Palantir, Nvidia stocks slip as Wall Street edges away from its records
Wall Street is edging lower on Tuesday following drops for Palantir and other stars that had been riding the mania surrounding artificial-intelligence technology. The S&P 500 slipped 0.4% and is on track for a third straight modest loss after setting its all-time high last week. The Dow Jones Industrial Average was up 8 points, or less than 0.1%, as of 11:50 a.m. Eastern time, and the Nasdaq composite was down 1%. The heaviest weight on the market was Nvidia, whose chips are powering much of the move into AI. It sank 2%. Another AI darling, Palantir Technologies, dropped 5.7% for the largest loss in the S&P 500. It has seen bets build up sharply among investors this year that its stock price will drop, according to S3 Partners. Only Meta Platforms has seen a bigger increase in what's called 'short interest,' where traders essentially bet a stock's price will fall. Meta, the owner of Facebook and Instagram, fell 1.7%. Criticism has been rising that stock prices have shot too high, too fast and have become too expensive. One way companies can make their stock prices look less expensive is to deliver solid growth in profits. Palo Alto Networks climbed 4.7% after reporting earnings and revenue for the latest quarter that topped analysts' expectations. The cybersecurity company also gave forecasts for profit and revenue in its upcoming fiscal year that were above Wall Street's. Home Depot's rise of 3.1%, meanwhile, was the biggest reason the Dow was doing better than other indexes. The Dow had been flirting earlier in the morning with its own record, which was set in December. The retailer reported results for the latest quarter that were a bit short of what analysts expected. But it nevertheless delivered growth in revenue and stood by its prior forecasts for revenue and profit over the full year. Other big retailers will deliver their latest profit updates in coming days. Lowe's and Target are on deck for Wednesday, while Walmart and Ross Stores will report on Thursday. The week's likely headliner for Wall Street is arriving on Friday. That's when the chair of the Federal Reserve, Jerome Powell, will give a highly anticipated speech in Jackson Hole, Wyoming. The setting has been home to big policy announcements from the Fed in the past, and the hope on Wall Street is that Powell may give a hint that cuts to interest rates are coming soon. The Fed has been keeping its main interest rate steady this year, primarily because of the fear of the possibility that President Donald Trump's tariffs could push inflation higher. But a surprisingly weak report on job growth across the country may be superseding that. Traders on Wall Street widely expect the Fed to cut interest rates at its next meeting in September in order to give the economy a boost. Treasury yields have come down notably in the bond market as a result, and they fell on Tuesday. The yield on the 10-year Treasury eased to 4.31% from 4.34% late Monday. Strategists at Bank of America, though, warn that Powell may not sound as inclined to cut interest rates as the market is expecting. He could remain non-committal and discuss the possibility of a worst-case scenario for the economy called 'stagflation.' The Fed has no good tool to fix that situation, where the economy stagnates at the same time as inflation remains high. On Wall Street, Tegna rose 4.1% after Nexstar Media Group said it will buy the owner of 64 television stations across the country for $22 per share in cash, giving the deal a total value of $6.2 billion, including debt. Nexstar, which owns the CW and local television broadcasters of its own, added 0.4%. The companies said combining will give them a broader reach and allow them to better compete with Big Tech and legacy media. Viking Therapeutics tumbled 43% after the biopharmaceutical company released results from a clinical trial of its oral tablet, which could treat obesity and other metabolic disorders. In stock markets abroad, indexes rose in Europe after falling modestly in Asia. Tokyo's Nikkei 225 index slipped 0.4% as market heavyweight SoftBank Group Corp. fell 4% after it announced it was taking a $2 billion stake in U.S. chip maker Intel.
