RCI 2Q21 Total Club & Restaurant Sales Up 9.5% Year-over-Year
HOUSTON—April 8, 2021—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.
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."
- 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.
- 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.
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.
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