HOUSTON, Oct. 9, 2018 /PRNewswire/ -- RCI Hospitality
Holdings, Inc. (Nasdaq: RICK) today announced total and same-store
sales for its Nightclubs and Bombshells restaurant segments for the
fourth quarter and fiscal year ended September 30, 2018. The company expects to report
complete 4Q18 and FY18 results on or before December 14, 2018.
4Q18 vs. 4Q17
- Total club and restaurant sales: $39.4
million compared to $38.1
million
- Consolidated same-store sales: $37.7
million compared to $36.9
million
- Nightclubs sales: $33.8 million
compared to $32.6 million (37 units
vs. 40)
- Bombshells sales: $5.5 million
compared to $5.6 million (6 units vs.
5)
FY18 vs. FY17
- Total club and restaurant sales: $163.0
million compared to $142.4
million
- Consolidated same-store sales: $144.8
million compared to $138.4
million
- Nightclubs sales: $138.9 million
compared to $123.6 million
- Bombshells sales: $24.1 million
compared to $18.8 million
CEO Comment
Eric Langan, President and CEO,
commented: "Fourth quarter Nightclubs sales – up 3.8% year over
year on a total basis and 6.1% on a same-store basis – continued
strong even though it is our weakest seasonal period. Business was
up in 7 of 8 states where units are located, with North Carolina off less than 1% due to lost
business from Hurricane Florence. Results reflect effective
marketing, management and appeal combined with the strong economy,
including a continued rebound in the Texas oil patch.
"Fourth quarter Bombshells sales were nearly level year over
year on a total basis, but declined 21.3% on a same-store basis.
This was due to one-time issues, such as the heat wave in July and
August in Texas, which reduced
late night patio business; the follow-on effect of one top store
closed for 19 days in June; the closing of a freeway next to
another top store almost every weekend in 4Q18; and difficult
comparisons to a year ago when the Houston locations were among the first
restaurants open after Hurricane Harvey.
"On a sequential monthly basis, Bombshells steadily improved
through 4Q18. August sales grew 3.9% from July, and September sales
expanded 10.1% from August. Sales should continue to normalize in
1Q19 with guests attracted to a great fight and sports lineup,
including the Houston Astros in the pro baseball playoffs and the
start of the Houston Rockets pro basketball season.
"Company-wide, new units added $1.4
million in 4Q18 sales. This reflected the Bombshells
Restaurant & Bar in Pearland,
just south of Houston, which
opened in April, and Kappa Men's Club in Central Illinois, acquired in May. Last year's
two major acquisitions, Scarlett's Cabarets in St. Louis and Miami in 3Q17, were included in same-store
sales, while the Bombshells on Highway 290 in Houston, which opened in July 2017, transitioned into same-store
sales.
"We continue to anticipate exceeding our FY18 free cash flow
target of $23 million, which is based
on estimated net cash provided by operating activities of
approximately $25.5 million, less
projected maintenance capex of approximately $2.5 million.
"Looking ahead, we are making steady progress with our
previously announced plans for FY19. We have signed definitive
agreements to acquire leading nightclubs in Chicago and Pittsburgh which should generate $5.0 million in combined annual EBITDA. Closings
on these acquisitions are expected in 1Q19, assuming the timely
transfer of all necessary permits, licenses and other
authorizations, and subject to usual conditions for transactions of
this kind, including due diligence.
"The first of four new Bombshells for the Houston market, on Interstate 10 in
East Houston, is expected to open
shortly, followed by new units on US 249 in Tomball, just north of Houston, in January
2019; US 59 in Southwest
Houston in March 2019; and
Katy, just west of Houston, in June
2019. As we launch each new Bombshells, it becomes more
cost-effective to begin increasing advertising and promotion to
drive traffic."
Notes
- Current and historical Nightclubs and Bombshells segment 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.
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, Miami, Charlotte, Dallas/Ft. Worth, Houston, Minneapolis, St.
Louis, 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.