HOUSTON, June 29, 2020 /PRNewswire/ -- RCI Hospitality
Holdings, Inc. (Nasdaq: RICK) today announced new reopenings and
closings of subsidiary locations in response to changing COVID-19
conditions and regulations in different regions.
Reopenings
- Two locations in Illinois –
Rick's Cabaret Chicago and Kappa Men's Club — reopened on
Friday, June 26, at 25% occupancy.
The third location in Illinois,
Scarlett's Cabaret St. Louis in Washington Park, on Friday reopened to guests
inside its building with similar restrictions. Its new outdoor
patio has been open since June 5 with
no occupancy restrictions other than social distancing.
- The three locations in Minneapolis and the one in Charlotte, NC reopened to 50% occupancy the
week of June 8.
- Tootsie's Cabaret Miami plans to reopen July 6.
- The three locations in New York
City should reopen in July as long as the city enters phase
three of its planned easing of restrictions.
Regulatory Closings and Occupancy Changes
- Nine Texas club locations,
most of them smaller units operating at 50% occupancy, closed on
Friday in response to new state restrictions, while all BYOB
locations continue to remain open at 50% occupancy.
- New Texas restrictions also
called for the 10 Bombshells locations to reduce indoor occupancy
to 50% as of last Friday from 75% as of the week of June 8. There are no occupancy restrictions on
Bombshells outdoor patios other than social distancing.
- New Allegheny County, PA
restrictions will cause Rick's Cabaret Pittsburgh to close on
Tuesday.
Temporary Voluntary Closings
- All club and restaurant locations have and will continue to
follow all required state and local practices for the health and
well-being of staff and guests. On top of that, should a staff
member report having Covid-19, locations may voluntarily close
temporarily for several days for sanitizing and deep cleaning
following CDC guidelines.
- Temporary voluntary closings since reopenings have begun
include Bombshells on I-10 in Houston, on Stemmons Freeway in Dallas, and in the Houston suburb of Pearland, which is scheduled to reopen today;
and Cabaret East in Fort Worth,
XTC Cabaret Houston-South, and Tootsies Cabaret Miami.
CEO Comment
Eric Langan, President & CEO,
said, "Based on a combination of revenues generated, locations
currently operating and those anticipated to reopen, and cash on
hand, we believe we are well positioned to weather temporary
closings due to regional conditions. We anticipate having
approximately $12-$13 million in cash as of June 30.
"Revenues have grown eight consecutive weeks from approximately
$500,000 in May when Bombshells first
started to open, to more than approximately $2.4 million the week ending June 21st. Sales for last week were approximately
$1.8 million due to the transition
between reopenings and closings. Some softness is typical through
the July 4th holiday. After that, we
hope to resume growth, especially if there is enough progress with
Covid-19 where our subsidiaries operate to enable reopenings.
"Since reopenings started, there have been temporary voluntary
closures. Subsidiaries have learned from and dealt with them, and
they haven't disrupted operations. Looking ahead, there may be
other temporary closings ordered in various regions of the country,
but we believe we are geographically diverse enough to deal with
them, too.
"We are disappointed at our subsidiaries' staff being laid off
again at certain locations but pleased to report quick recovery
times for all those who have had the coronavirus, and we hope that
trend continues. We also hope government officials will only keep
bars closed for a short time so staff at affected subsidiaries will
be able to return to earning a living as quickly as possible."
RCI plans to report club and restaurant sales for the third
quarter ending June 30, 2020 on
July 9.
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, but not limited to, the risks and
uncertainties associated with (i) operating and managing an adult
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, (vi) our ability to maintain
compliance with the filing requirements of the SEC and the Nasdaq
Stock Market, (vii) the impact and uncertainty of the coronavirus
pandemic, and (viii) numerous other factors such as laws governing
the operation of adult entertainment 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, 2019 and its latest Form 10-Q 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.
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.