HOUSTON, July 9, 2019 /PRNewswire/ -- RCI Hospitality
Holdings, Inc. (Nasdaq: RICK) today announced total and same-store
sales for its Nightclubs and Bombshells restaurants for the Fiscal
2019 third quarter ended June 30,
2019.
3Q19 vs. 3Q18
- Total club and restaurant sales: $46.2
million compared to $42.1
million – up 9.9%
- Consolidated same-store sales: $39.1
million compared to $39.6
million – down 1.4%
- Nightclubs total sales: $37.5
million compared to $34.9
million (38 units in both periods) – up 7.2%
- Nightclubs same-store sales: $34.2
million compared to $34.1
million – up 0.1%
- Bombshells total sales: $8.8
million compared to $7.1
million (8 units vs. 6) – up 23.0%
- Bombshells same-store sales: $4.9
million compared to $5.5
million – down 10.6%
Effective 3Q19, Bombshells same-store sales now include
locations open at least 18 months versus 12 months so the
calculation is not affected by the "honeymoon" period experienced
in the first six months of a new unit when revenues are higher
compared to more normalized subsequent rates. This change in
methodology is based on more than six years of experience
successfully building out the restaurant chain and is in keeping
with industry practices for casual dining chains owned by a number
of larger publicly traded companies. Nightclubs are not affected by
this change as nearly all have been acquired and had prior
operating histories.
CEO Comment
Eric Langan, President and CEO,
commented: "New Nightclubs and Bombshells restaurants continued to
perform very well in 3Q19, helping to generate record total club
and restaurant sales.
"Looking at same-store sales, Nightclubs were slightly ahead
year-over-year, which was particularly impressive given that it was
on top of 3Q18's 5.1% increase, while Bombshells continued to
rebound, crossing over into positive year-over-year monthly
comparisons in June 2019 for the
first time in 12 months.
"During 3Q19, we also sold or leased four more non-income
producing-properties in line with our capital allocation strategy.
We hope to conclude the sale or lease of remaining
non-income-producing properties by year-end FY19 or early
FY20."
Nightclubs
- New clubs added $3.0 million from
Rick's Cabarets in Pittsburgh and
Chicago (both acquired
November 2018) and a smaller club in
Kappa, IL (acquired at the end of
May 2018 and part of same-store sales
as of June 2019). Chicago is exceeding original expectations
while Pittsburgh and Kappa are performing in line.
- Strong same-store sales increases at clubs such as Hoops
Cabaret and Sports Bar and Rick's Cabaret in New York City, Downtown Cabaret and Rick's
Cabaret in Minneapolis, and Silver
City Cabaret in Dallas and Rick's
Cabaret in Odessa, more than
offset declines at Tootsies Cabaret and Scarlett's Cabaret in the
Miami area which did particularly
well in 3Q18.
- While Scarlett's St. Louis was
included in the total nightclubs count for 3Q19, it was closed due
to a small fire in May 2019 and not
included in same-store sales for May and June 2019. It expects to reopen soon after
remodeling.
Bombshells
- New units added $3.8 million from
Houston area locations that opened
April 2018 (Pearland), December
2018 (I-10), and March 2019
(Tomball). Two new Houston locations nearing completion (Katy and
US 59) are on track to open this summer, giving the chain a total
of 10 units in Texas.
- The Bombshells Houston-Fuqua location was not included in
same-store sales for June 2019
because it was closed temporarily in June
2018 as a consequence of a local matter that was
subsequently resolved favorably.
- On a sequential quarter basis, sales for all five locations
open at least 18 months as of the end of 3Q19 increased 6.4% from
2Q19 to 3Q19, 5.5% from 1Q19 to 2Q19, and 4.1% from 4Q18 to
1Q19.
Other
- During 3Q19, both the former Club Onyx and Foxy's Cabaret
locations in Dallas were leased
out, and a small property in Lubbock,
TX was sold.
- Another parcel of excess Bombshells property, this one adjacent
to the new I-10 location, was sold for a hotel development, and an
excess aircraft was also sold. Proceeds from both of these sales
were used to reduce associated debt.
Notes
- Current and historical Nightclubs and Bombshells 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.
- Planned opening dates are subject to change due to weather,
which could affect construction schedules, and scheduling of final
municipal inspections.
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, Chicago, Dallas/Ft.
Worth, Houston,
Miami, Minneapolis, St.
Louis, Charlotte, Pittsburgh, and other markets 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.