HOUSTON, Nov. 6, 2018 /PRNewswire/ -- RCI Hospitality
Holdings, Inc. (Nasdaq: RICK) today announced subsidiaries have
completed the acquisition of Blush Gentlemen's Club & Sports
Bar and related real estate at 135 9th Street and
901-903 Penn Avenue in Pittsburgh
on the same terms as previously announced.
"We're pleased to have Blush join our portfolio of quality
establishments in top metro markets," said Eric Langan, RCI's President & CEO. "With
its ability to generate $3
million-plus annually in adjusted EBITDA, Blush is a
profitable, cash-flowing number one club in a market that is home
to great sports teams, leading universities, and well-established
and emerging industries."
The 16,000 square-foot upscale, recently remodeled Blush is the
only gentlemen's club in downtown Pittsburgh. It has been in business close to
50 years with grandfathered use dating back to the 1930s and
features a full liquor license and restaurant. Located in the
Cultural District, Blush is close to the convention center,
stadiums, and hotels, and is open until 2 AM Sunday through
Thursday nights and 3 AM on Friday and Saturday nights.
Consideration for the club was $2.5
million in cash and $7.5
million in seller financing (consisting of a $2.0 million, 7%, two-year balloon note and a
$5.5 million, 8%, fully amortizing,
10-year note). Consideration for the real estate was $5.0 million in cash for the two connected
buildings. One includes the club while the other benefits from
long-term, income producing, retail tenants.
The cash portion of the transactions was funded through
available cash, which includes cash from operations, proceeds from
a $5.0 million unsecured bank term
loan, and third-party debt financing, as previously announced.
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.