HOUSTON, Oct. 19, 2021 /PRNewswire/ -- RCI
Hospitality Holdings, Inc. (Nasdaq: RICK) announced closing
yesterday on the acquisition of 11 adult nightclubs in six states,
the clubs' intellectual property, and six related real estate
properties. The company previously announced definitive agreements
for the acquisition on July 26.
Financial terms remained the same.
Eric Langan, President and CEO of
RCI Hospitality Holdings, Inc., said, "We're excited about this
acquisition and the new team members who are joining us. The new
clubs increase our current unit count by 23%, to 58 locations. They
expand our footprint with five in Denver,
CO; two near St. Louis, MO;
and one each in Indianapolis, IN,
Louisville, KY, Raleigh, NC, and Portland, ME. They generated approximately
$40 million in revenue and
$14 million in adjusted EBITDA in the
year ended December 31, 2019. We
expect them to be accretive to earnings and cash flow in year one
and hope to improve upon their run rate."
Approximately $3 million in
maintenance capital expenditures is expected to be spent on the
newly acquired locations in the current fiscal 2022 to
significantly revitalize the clubs and improve the customer
experience. Company-wide, RCI FY22 maintenance capex is expected to
total about $7 million.
Clubs Acquired
|
Club
Name
|
Location
|
URL
|
|
Mile High Men's
Club
|
Denver,
CO*
|
https://milehighmensclub.com/
|
|
PT's Showclub
Centerfold
|
Denver,
CO*
|
https://ptscenterfold.com/
|
|
The Diamond Cabaret
Denver
|
Denver, CO
|
https://thediamondcabaret.com/
|
|
PT's Showclub
Denver
|
Denver,
CO*
|
https://ptsshowclubdenver.com/
|
|
La Boheme Gentlemen's
Cabaret
|
Denver, CO
|
https://labohemegc.com/
|
|
PT's Showclub
Indianapolis
|
Indianapolis,
IN*
|
https://ptsshowclubindy.com/
|
|
PT's Showclub
Louisville
|
Louisville,
KY*
|
https://ptsshowclublouisville.com/
|
|
PT's Showclub
Portland
|
Portland,
ME*
|
https://ptsshowclubportland.com/
|
|
The Men's Club of
Raleigh
|
Raleigh,
NC
|
https://mensclubraleigh.com/
|
|
The Diamond Cabaret
St Louis
|
Sauget, IL
|
https://diamondcabaretstlouis.com/
|
|
Country Rock
Cabaret
|
Sauget, IL
|
https://countryrockcabaret.com/
|
* Real estate being acquired.
About RCI Hospitality Holdings, Inc. (Nasdaq: RICK)
With more than 50 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, Denver, St.
Louis, Charlotte,
Pittsburgh, Raleigh, Louisville, 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 of the COVID-19
pandemic, (vii) the acquisition of the clubs and real estate that
are the subject of this press release, 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, 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.