Operator

Greetings, and welcome to the Diversified Energy’s First Quarter 2026 Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce Douglas Kris, Senior Vice President, Investor Relations and Corporate Communications. Thank you. You may begin.

Douglas Kris
Senior Vice President of Investor Relations & Corporate Communications

Good morning, and thank you all for joining us today, and welcome to the First Quarter 2026 Results and Camino Acquisition Conference Call. With me today are Diversified’s Founder and Chief Executive Officer, Rusty Hutson; and President and Chief Financial Officer, Brad Gray.

Before we get started, I will remind everyone that the remarks on this call reflect the financial and operational outlook as of today, May 7, 2026. Certain statements made on today’s call are forward-looking and may be subject to risks and uncertainties related to future events and the future financial performance of the company. Actual results could differ materially from those that are anticipated. The risk factors that may affect results are detailed in the company’s public filings with the SEC, including the annual report on Form 10-K for the fiscal year ended December 31, 2025, filed on February 26, 2026.

During this call, we also make reference to certain non-GAAP financial measures. Our disclosures regarding those items are found in our

Bradley Chhay

Greetings, and welcome to RCI Hospitality Holdings First Quarter Conference Call. My name is Bradley Chhay. You can find the company’s presentation on RCI’s website. Go to the Investor Relations section. All the links are on the top of the page.

Please turn to Slide 2 of our presentation. Our speakers today are Travis Reese, Interim President and CEO; and Albert Molina, Interim CFO.

Please turn to Slide 3. RCI is making this call exclusively on X Spaces. [Operator Instructions] This conference is being recorded.

Now please turn to Page 4. I want to remind everyone of our safe harbor statement. You may hear or see forward-looking statements that involve risks and uncertainties. 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 occur afterwards.

Please turn to Page 5. I also direct you to the explanation of RICK’s non-GAAP financial measures. Now I’m pleased to introduce Travis Reese, Interim President and CEO.

Travis Reese
Interim President, CEO, Secretary & Chairman

Thanks, Brad, and thanks, everyone, for joining us. Please turn to Slide 6. I’m pleased to report we filed our 10-Q today and announced our results for the first quarter ended December 31. All comparisons are year-over-year unless otherwise noted.

Nightclubs revenues were stable. Contributions from newer venues offset the same-store performance and the closure of underperforming locations. Of note, higher-margin club service revenues increased 6.7% year-over-year. This was despite consumer uncertainty as a result of the U.S. government shutdown in October and November. Similarly, newer