HOUSTON, Nov. 19, 2020 /PRNewswire/ -- RCI
Hospitality Holdings, Inc. (Nasdaq: RICK) today announced first
quarter Fiscal 2021 sales trends, current cash levels, and plans to
double the number of company-owned locations of its Bombshells
Restaurant & Bar chain.
Sales Trends & Cash
October sales for clubs and restaurants totaled $15.3 million, their best monthly performance
since April when all locations were closed due to government
related Covid-19 measures. October sales were up 34% compared to
September and equaled 97% of year ago October sales.
During October, 47 of 48 locations were open (37 clubs and all
10 Bombshells). All locations continued to limit occupancy in
accordance with coronavirus safety plans. Many clubs and
restaurants continued to experience strong sales and a steady flow
of business. Not all clubs operated at full schedules, in line with
other restrictions. That included some of our biggest clubs in
South Florida and New York City.
As of today, the latest wave of Covid is leading to increased
restrictions, including reduced occupancy levels and operating
hours for some clubs, causing some to close temporarily. Currently,
32 clubs and all 10 Bombshells are open. If there are no additional
closings or restrictions, November revenues should total around
$11 million to $12 million. RCI currently has approximately
$18 million cash on hand.
"The Next 10" Bombshells
RCI plans to develop 10 new Bombshells over the next three years
assuming it can find the right locations and structure the
development of each in line with the company's capital allocation
strategy. The expansion is being launched due to the chain's
overall success since its 2013 founding, including its particularly
strong performance through the coronavirus, Bombshells' ability to
easily self-fund the new units, and a significantly improved market
for accessing prime locations and/or buying and leasing them at
attractive prices.
For the fourth fiscal quarter ended September 30, 2020, total Bombshells sales were
$15.5 million, up more than 80% year
over year and 50% on a same-store basis. Since inception of the
concept through Fiscal 2020, the cash on cash return of "The First
10" has met RCI's capital allocation objectives and more than paid
back all of the cash invested in them, including the cash invested
in the four most recent locations, which opened in FY19 and
FY20.
RCI is currently negotiating leases or real estate purchases and
bank financing for four of the proposed new locations. Target
markets are Dallas-Fort Worth,
where the first Bombshells is located; Houston, where there are eight Bombshells; and
Miami-Fort Lauderdale, where RCI subsidiaries own
two large nightclubs.
Sidoti Virtual Investor Conference Today
RCI plans to discuss the above developments in its presentation
today at the Sidoti Virtual Investor Conference at 12:15 PM ET / 11:15 AM
CT. To access the live webcast, slides, ask questions, and
replay, visit:
https://sidoti.zoom.us/webinar/register/WN_iSrSEJllSs-KZB1Zw0fAPQ.
Visit the webcast link in advance to pre-register or download any
necessary software.
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 Club, 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, 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) the impact and uncertainty of the
coronavirus pandemic, and (vii) 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.