RCI Reports 2Q19 Club & Restaurant Total Sales Up 8.2%

HOUSTON—April 9, 2019—RCI Hospitality Holdings, Inc. (Nasdaq: RICK) today announced total and same-store sales for its Nightclubs and Bombshells restaurants for the Fiscal 2019 second quarter ended March 31, 2019. The company plans to report 2Q19 results on May 9, 2019.

2Q19 vs. 2Q18

  • Total club and restaurant sales: $44.1 million compared to $40.8 million – up 8.2%
  • Consolidated same-store sales: $38.8 million compared to $39.9 million – down 2.8%
  • Nightclubs total sales: $36.6 million compared to $35.2 million (39 units vs. 38) – up 4.0%
  • Nightclubs same-store sales: $33.9 million compared to $34.3 million – down 1.2%
  • Bombshells total sales: $7.5 million compared to $5.6 million (8 units vs. 5) – up 34.4%
  • Bombshells same-store sales: $4.9 million compared to $5.6 million – down 12.7%

CEO Comment

Eric Langan, President and CEO, commented: "New Nightclubs and Bombshells restaurants performed very well in 2Q19, helping to generate record total club and restaurant sales in what we knew would be a tough quarter for same-store sales. "Nightclubs same-store sales were up against strong year-ago increases from our three large Minneapolis clubs due to high traffic from the pro football championship there, whereas the big game was not in any of our markets in 2Q19. However, it will be in North Miami next year near two of our largest locations. "While Bombshells same-store sales are still rebounding from year-ago levels, we are making noticeable progress, significantly reducing the percentage decline from its low in 4Q18."

Nightclubs

  • New clubs added approximately $2.5 million from the November 2018 Pittsburgh and Chicago acquisitions and the May 2018 acquisition of a smaller club in Kappa, IL. All three continue to perform in line with expectations.
  • Excluding Minneapolis locations, Nightclubs same-store sales increased 1.0%, continuing to reflect effective marketing, management and appeal, combined with a good economy. This was partially offset by unusually cold weather from the "polar vortex" in the northern half of the US late January-early February 2019.

Bombshells

  • New units added approximately $2.6 million from Houston area locations that opened April 2018 (Pearland), December 19, 2018 (I-10), and March 27, 2019 (Tomball). Bombshells I-10 continued to run strong while Tomball had a solid opening week.
  • On a sequential quarter basis, sales for the five locations open more than 12 months increased 5.5% from 1Q19 to 2Q19, reflecting increases at all five, compared to a 3.9% decline from 1Q18 to 2Q18.

Notes

  • 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.
  • 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, 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 a restaurant and bar 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 restaurant and bar 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