HOUSTON, July 10, 2018
/PRNewswire/ -- RCI Hospitality Holdings, Inc. (Nasdaq: RICK)
today announced total and same-store sales for its Nightclubs and
Bombshells restaurant segments for the third fiscal quarter ended
June 30, 2018. The company plans to
report complete 3Q18 results on August 9,
2018.
3Q18 vs. 3Q17
- Total club and restaurant sales: $42.1
million compared to $36.9
million
- Consolidated same-store sales: $36.6
million compared to $34.8
million
- Nightclubs segment sales: $34.9
million compared to $32.3
million (38 units vs. 40)
- Bombshells restaurant segment sales: $7.1 million compared to $4.6 million (6 units vs. 4)
CEO Comment
Eric Langan, President and CEO,
commented: "Fiscal 2018 sales have continued to do well with record
third quarter club and restaurant sales and strong same-store
sales.
"Nightclubs increased 8.2% in total sales and 5.1% on a
same-store basis, while Bombshells grew 54.5% in total sales and
4.1% on a same-store basis. Last year's two major acquisitions,
Scarlett's Cabarets in St. Louis
and Miami, which occurred during
3Q17, transitioned into same-store sales over the course of
3Q18.
"New units added $2.7 million in
sales. This reflected a full quarter of a Bombshells Restaurant
& Bar on Highway 290 in Houston that opened in 4Q17, nearly a full
quarter of another Bombshells in the Houston suburb of Pearland that opened in early April, and the
late May acquisition of Kappa Kabanna, a small, well known
gentlemen's club in Central
Illinois.
"Our locations, in particular, our six Bombshells sports bars in
Texas, benefited from increased
traffic created by the Houston Rockets getting into the NBA Western
Conference Finals, and the champion Houston
Astros' start of the professional baseball season.
"During 3Q18, an RCI subsidiary acquired Kappa Kabanna
in Kappa, IL for $1.5 million ($0.5
million in cash and $1.0
million in 8% seller financing), including its real estate.
The purchase was in line with our capital allocation strategy,
which calls for valuations of 3-4x trailing 12-month EBITDA and
cash on cash returns of at least 25-33%. Thrillist.com calls Kappa
Kabanna one of the top gentlemen's clubs in Illinois. We also decided to close Club Onyx
Philadelphia after numerous attempts to improve results. We are now
actively marketing the property.
"To sum up, our existing portfolio of clubs and restaurants
continues to do well. We are in active discussions with prospective
club acquisition targets. We also look forward to opening two more
Bombshells in calendar 2018 and two more in calendar 2019, for a
total of eight locations in the Greater
Houston market and 10 in Texas."
Notes
- Current and historical Nightclubs and Bombshells segment sales
data in quarterly sales news releases do not include revenues from
non-core operations.
- Sales numbers are preliminary and subject to final
closing.
- Unit counts are at period end.
- All references to the "company," "we," "our," and similar terms
include RCI Hospitality Holdings, Inc. and its subsidiaries, unless
the context indicates otherwise.
About RCI Hospitality Holdings, Inc. (Nasdaq: RICK)
With more than 40 units, RCI Hospitality Holdings, Inc., through
its subsidiaries, is the country's leading company in gentlemen's
clubs and sports bars/restaurants. Clubs in New York City, Miami, Philadelphia, Charlotte, Dallas/Ft. Worth, Houston, Minneapolis and other cities operate under
brand names, such as Rick's Cabaret, XTC, Club Onyx, Vivid Cabaret,
Jaguars, Tootsie's Cabaret, and Scarlett's Cabaret. Sports
bars/restaurants operate under the brand name Bombshells Restaurant
& Bar. Please visit http://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
in this press release, including the risks and uncertainties
associated with operating and managing an adult business, the
business climates in cities where it operates, the success or lack
thereof in launching and building the company's businesses, risks
and uncertainties related to cybersecurity, conditions relevant to
real estate transactions, and numerous other factors such as laws
governing the operation of adult entertainment businesses,
competition, and dependence on key personnel. The company has no
obligation to update or revise the forward-looking statements to
reflect the occurrence of future events or circumstances.
Media & Investor Contacts
Gary Fishman and Steven Anreder at 212-532-3232 or
gary.fishman@anreder.com and steven.anreder@anreder.com
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SOURCE RCI Hospitality Holdings, Inc.