RCI Announces Houston Restaurants & Clubs Start Reopening for Business

HOUSTON—August 31, 2017—RCI Hospitality Holdings, Inc. (NASDAQ: RICK) is pleased to announce all three of its Houston area Bombshells Restaurant & Bars will reopen for business starting today and three of its four smaller Houston area nightclubs will reopen starting on Friday.

As a result of Hurricane Harvey, one of RCI's smaller Houston clubs, XTC South Houston, flooded and will require remodeling. RCI will start working on getting it reopened as soon as possible. RCI's corporate office in Houston experienced minor water damage from rain, but is fully operational. Other than a smaller Temptations nightclub in Beaumont, TX, none of RCI's other Texas locations suffered any disruptions. All have property and casualty as well as business interruption insurance. XTC South Houston and Temptations Beaumont are not significant EBITDA contributors.

“Most important, our most valuable asset—our staff and their families—are safe and okay,” said Eric Langan, President & CEO of RCI. “We expect the financial impact of Harvey on our Houston units will be minimal, but we will have some expenses helping our most severely impacted employees get back on their feet.

“We want to thank all of the first responders and volunteers in the Houston area for their incredible dedication during this unparalleled event. We also are extremely grateful for the extraordinary efforts of our staff in helping their fellow employees and in working to restore service to our customers.

“The people of Houston have been through a lot. Everybody wants to return to normalcy—getting back to work, seeing familiar faces, going out, eating a hot meal. Starting with our Bombshells locations, we'll do our best to bring that sense of normalcy back to both our customers and our staff.”

Mr. Langan encouraged RCI shareholders to donate to legitimate charities helping Houston. For its part, RCI's Bombshells locations in Dallas and Austin have been collecting donations of blankets, diapers, baby formula, and bottled water, and will be trucking it all to Houston this weekend for local distribution.

Through its subsidiaries, RCI operates a total of 40 nightclubs in Texas and around the country. RCI subsidiaries also operate a total of five Bombshells units, all in Texas. Active military members and veterans receive 20% discounts on food at Bombshells.

RCI Houston Area Locations

  • Bombshells Houston-South, 12810 Gulf Freeway, Houston, 77034, (281) 484-3279
  • Bombshells Spring, 21005 IH 45 North, Spring, 77388, (281) 288-2769
  • Bombshells 290, 14191 Northwest Freeway, Houston, 77040, (281) 845-6411
  • Studio 80 Webster, 803 Nasa Road 1, Webster, 77598, (281) 286-2662
  • Club Onyx Houston, 3113 Bering Drive, 77057, (713) 785-0444
  • XTC Cabaret Houston North, 11415 North Freeway, 77060, (281) 820-6833
  • XTC Cabaret Houston South, 802 Houston Blvd, 77587, (713) 944-7172

About RCI Hospitality Holdings, Inc. (Nasdaq: RICK)

With 45 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, Philadelphia, Charlotte, Dallas/Ft. Worth, Houston, Minneapolis and other cities 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