RCI Announces Better than Expected 2Q16 Club & Restaurant Sales and Share Repurchase Update
Total Club & Restaurant Sales of $33.7 Million; Down Only 1.9% from 2Q15’s Record
Same Store Sales of $32.9 Million Nearly Level with 2Q15
More than 500,000 Shares Repurchased First Half of FY16
HOUSTON, TX—April 12, 2016—RCI Hospitality Holdings, Inc. (Nasdaq: RICK) today announced total sales at nightclubs and restaurants for the second fiscal quarter endedMarch 31, 2016.The company also announced2Q16 share repurchases. RCI expects to report2Q16 results on May 10, 2016.
Highlights (2Q16 vs. 2Q15)
Total club and restaurant sales of $33.7 million compared to the year-ago record of $34.4 million.
41units in operation compared to 45. Two nightclubs in 2Q16 were temporarily closed while undergoing re-concepting. Theyare scheduled to reopen this quarter.
Same store sales of $32.9 million compared to $33.1 million.
Nightclubs segment sales totaled $29.1 million compared to $29.9 million.
Bombshells segment sales increased to$4.6 million from $4.4 million.
Eric Langan, President and CEO, commented:“Total sales and same store sales performed much better than our original expectations for 2Q16. During 2Q16, total sales grew sequentially month to month. Toward the end of the quarter, we began to see year over year weekly increases.
“2Q16’s performancewas particularly impressive given the fact the year ago period was our largest revenue quarter ever. In addition, even with two units temporarily closed,total sales grew2.5%from our first fiscal quarter, which is typically our largest seasonal quarter.
“As a result, 2Q16 appears to represent the start of a rebound from when we reported same store sales fell 5.6% in 4Q15 and 6.3% in 1Q16.
“The Bombshells segment performed well in 2Q16 as we continue to fine tune the concept. Same store sales increased 4.1% year over year and total sales grew 5.7%from 1Q16.
“The Nightclubs segment began to come back with 2Q16 total sales up 2.0%compared to 1Q16.This reflects what looks likean initial turnaround in purchasing by big spending customers and increases from new marketing strategies.
“Looking ahead, nightclub sales should benefit from the reopening of two clubs in 3Q16 and the opening of a new club in Manhattan in the second half of Fiscal 2016. Bombshells sales should get another boost from the opening of a sixth unit in 1Q17.”
Sales data does not include the company’s other subsidiaries.As previously announced, sales data for Fiscal 2016 and year ago periods is being reported net of sales taxes and other revenue related taxes, as RCI has chosen to early adopt new revenue accounting standards.
During 2Q16, RCI used approximately $1.9 million to buy back 218,140 shares as part of its ongoing program.
During the first six months of FY16, the company used approximately $4.7 million to buy back 500,902 shares.
For all of FY15, RCI only used $2.3 million to buy back 225,280 shares.
About RCI Hospitality Holdings, Inc. (Nasdaq: RICK)
With 43 units, RCI Hospitality Holdings, Inc., through its subsidiaries, is the country’s leading company in gentlemen clubs and sports bars/restaurants. Clubs in New York City, Miami, Philadelphia, Charlotte, Dallas/Ft. Worth, Houston, Minneapolis, Indianapolis and other cities operate under brand names, such as “Rick's Cabaret,” “XTC,” “Club Onyx,” “Vivid Cabaret,” “Jaguars” and “Tootsie’s Cabaret.” Sports bars/restaurants operate under the brand name “Bombshells.” 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 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.
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