HOUSTON, April 8, 2021 /PRNewswire/ -- RCI Hospitality
Holdings, Inc. (Nasdaq: RICK) today reported sales for its
Nightclubs and Bombshells restaurants for the fiscal 2021 second
quarter ended March 31, 2021. Results
reflected a continued rebound through the COVID-19 pandemic.
2Q21 vs. 2Q20
- Total club and restaurant sales: $43.5
million compared to $39.8
million (+9.5%)
- Total club and restaurant same-store sales: $16.9 million compared to $13.4 million (+26.3%)
- Nightclubs total sales: $30.4
million compared to $31.0
million (-1.9%)
- Nightclubs same-store sales: $6.9
million compared to $6.6
million (+3.6%)
- Bombshells total sales: $13.2
million compared to $8.8
million (+49.5%)
- Bombshells same-store sales: $10.0
million compared to $6.7
million (+48.6%)
- Many locations were not open enough days in 2Q21 and 2Q20 to be
part of same-store sales. This was due to different restrictions in
both periods and weather in 2Q21 that primarily affected
clubs.
CEO Comment
Eric Langan, President & CEO,
said, "We are very excited about our first quarterly increase in
total club and restaurant sales in 12 months and ending the quarter
with approximately $20 million in
cash.
"Total sales in January were better than December. February was
affected by the Texas Freeze. In March, RCI recorded the highest
monthly club and restaurant sales in company history. We believe
the continued sequential quarterly improvement reflects more
locations open on a more consistent basis, less restrictive
curfews, and the ongoing return of our loyal customer base, all of
which are generally benefitting from increased vaccinations. This
was despite the fact that most of our larger locations in northern
states still operated under more restrictive curfews, which are
starting to end.
"We continue to move full speed ahead with our growth plans. The
first of our previously announced 10 new company owned Bombshells
planned over the next three years is now under construction in
Arlington, TX, while we continue
to look for new locations. Our first franchisee is about to begin
construction on the first of its three planned locations in
San Antonio, TX. Now that we have
all of our appraisals, we are working on finalizing the refinancing
of our bank real estate debt. We expect to report 2Q21 financial
results by May 10th, and
we look forward to EXPO, the adult nightclub industry's national
convention, tradeshow and awards, on May
23-26 in Miami.
"We greatly appreciate the loyalty of our customers. Special
thanks to our team members for making everything possible. We urge
all customers to continue to be COVID-safe and get their vaccines
so we can remain open to serve you and keep our team members
working."
Open Status
- During 2Q21, 29 of 38 clubs were open the full quarter and 37
by period end. All 10 Bombshells were open. But the Texas Freeze
caused 21 clubs and all the Bombshells to close for several days
mid-February. The only club not open is in Sulphur, LA which is under
reconstruction.
- Most locations continued to limit occupancy voluntarily or in
accordance with coronavirus safety plans, and not all clubs
operated at full schedules in line with local government
restrictions, although curfews became less restrictive,
particularly in March.
- Restrictive curfews ended March
26 in Charlotte (where we
have 1 club) and this past Monday in Pittsburgh (1 club). The 11 PM bar and restaurant curfew is being
evaluated in New York State, where
we have 3 clubs in Manhattan.
Restrictive curfews continue in Chicago (1 club) and Minneapolis (3 clubs).
- During 2Q20, 38 clubs, 9 existing Bombshells, and a new
Bombshells that opened late in January
2020, were all closed by mid-March
2020 with the declaration of the COVID-19 pandemic. Until
the first part of March, 2Q20 sales had been strong for clubs and
restaurants due in part to the professional football championship
in Miami (location of our two
largest clubs) and the opening of the 10th Bombshells.
Notes
- Sales do not include non-core operations and are preliminary
and subject to final closing.
- All references to "RCI Hospitality Holdings, Inc.," "company,"
"we," "our," and similar terms refer to RCI and/or its
subsidiaries, unless the context indicates otherwise.
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 of the COVID-19
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, 2020 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.