RCI Reports 4Q19 Club & Restaurant Total Sales Up 11.8%, Full Year Up 9.1% to $178 Million
HOUSTON—October 8, 2019—RCI Hospitality Holdings, Inc. (Nasdaq: RICK) today announced total and same-store sales for its Nightclubs and Bombshells restaurants for the Fiscal 2019 fourth quarter and fiscal year ended September 30, 2019.
4Q19 vs. 4Q18
- Total club and restaurant sales: $44.0 million compared to $39.4 million – up 11.8%
- Consolidated same-store sales: $38.0 million compared to $37.4 million – up 1.5%
- Nightclubs total sales: $35.5 million compared to $33.8 million (37 units in both periods) – up 4.9%
- Nightclubs same-store sales: $32.6 million compared to $32.9 million – down 0.9%
- Bombshells total sales: $8.5 million compared to $5.5 million (8 units vs. 6) – up 53.9%
- Bombshells same-store sales: $5.3 million compared to $4.5 million – up 19.4%
FY19 vs. FY18
- Total club and restaurant sales: $177.8 million compared to $163.0 million – up 9.1%
- Consolidated same-store sales: $154.9 million compared to $155.4 million – down 0.3%
- Nightclubs total sales: $146.9 million compared to $138.9 million – up 5.8%
- Nightclubs same-store sales: $136.1 million compared to $135.3 million – up 0.6%
- Bombshells total sales: $30.8 million compared to $24.1 million – up 27.9%
- Bombshells same-store sales: $18.9 million compared to $20.1 million – down 6.1%
* Current and historical Nightclubs and Bombshells sales data do not include revenues from non-core operations.
Eric Langan, President and CEO, said: "Both new and existing Nightclubs and Bombshells continued to perform well in 4Q19, producing record total club and restaurant sales for both the quarter and the year. 4Q19 Nightclubs same-store sales were off less than $300K year-over-year, which was particularly impressive given 4Q18's strong 6.1% same-store sales increase. 4Q19 Bombshells same-store sales – up 19.4% - continued to rebound. Restaurant same-store sales are now up double-digits year-over-year four months in a row."
- New Rick's Cabaret clubs in Pittsburgh and Chicago—both acquired November 2018—added $2.9 million in 4Q19.
- Scarlett's St. Louis, which was closed due to a small fire in May 2019 and not included in 4Q19's same-store sales, is expected to reopen in November after remodeling.
- The second Studio 80, this one much smaller in Webster, TX, closed in July and was sold in September.
- All of the "first five" Bombshells locations were included in the 19.4% same-store sales increase in 4Q19 and in the year ago period.
- Contribution from new units increased 38.3% to $3.2 million in 4Q19 from three Houston area locations—Pearland (opened April 2018), I-10 (December 2018), and Tomball (March 2019).
- Two upcoming Houston locations – Katy and US 59 – await final inspections and are anticipated to open this month, which would expand the chain to a total of 10 units in Texas.
- Current and historical Nightclubs and Bombshells 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.
- Effective 3Q19, Bombshells same-store sales include locations open at least 18 months versus 12 months so the calculation is not affected by the "honeymoon" period experienced in the first six months of a new unit when revenues are higher compared to more normalized subsequent rates. This change in methodology is based on more than six years of experience successfully building out the restaurant chain and is in keeping with industry practices for casual dining chains owned by a number of larger publicly traded companies. Nightclubs are not affected by this change as nearly all have been acquired and had prior operating histories.
- All references to the "company," "we," "our," and similar terms include RCI Hospitality Holdings, Inc. and its subsidiaries, unless the context indicates otherwise.
- Planned opening dates are subject to change due to weather, which could affect construction schedules, and scheduling of final municipal inspections.
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, Tootsie's Cabaret, and Scarlett's Cabaret. Sports bars/restaurants operate under the brand name Bombshells Restaurant & Bar. Please visit http://www.rcihospitality.com
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) our ability to maintain compliance with the filing requirements of the SEC and the Nasdaq Stock Market, and (vii) 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.
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