HOUSTON, May 10, 2019 /PRNewswire/ -- RCI Hospitality
Holdings, Inc. (Nasdaq: RICK) filed a Form 12b-25 with the
Securities and Exchange Commission today reporting that it will not
be able to timely file its Form 10-Q for the second fiscal quarter
ended March 31, 2019.
In its filing, the company explained that in mid- and late 2018
a series of negative articles about RCI was anonymously published
in forums associated with the short-selling community. Subsequent
thereto in 2019, the SEC initiated an informal inquiry. In
connection with these events, a special committee of the company's
Audit Committee engaged independent outside counsel to conduct an
internal review. RCI and its management are cooperating with both
the internal review and the SEC inquiry. Because the internal
review is still ongoing, the company will be delayed in filing its
Form 10-Q. RCI will take steps to file its second quarter 10-Q as
soon as practicable.
The company also reported preliminary results for the
March 31, 2019 quarter compared to
the year-ago period as follows:
- Total revenues of $44.8 million
compared to $41.2 million on 47 and
43 units, respectively
- Diluted EPS in the range of $0.65
to $0.70 compared to $0.48
- Free cash flow of $8.8 million
based on net cash provided by operating activities of $9.5 million, less maintenance capital
expenditures of $0.7 million. For the
first six months of FY19, free cash flow totaled $19.9 million based on net cash provided by
operating activities of $21.0
million, less maintenance capital expenditures of
$1.1 million.
These results are preliminary, unaudited, and subject to change
based on the completion of our internal review and finalization of
the company's 10-Q. Accordingly, the review of interim financial
information by our independent registered public accounting firm is
also not complete.
Eric Langan, President & CEO
of RCI, said, "Our businesses and financial condition remain
strong, and we plan to continue to actively pursue our capital
allocation strategy. In 2Q19, the company repurchased 70,700 shares
for $1.6 million, for an average of
$22.71 per share."
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.