United States

Securities and Exchange Commission

Washington, D.C. 20549

 

FORM 8-K

 

Current Report

Pursuant To Section 13 or 15(d) Of

The Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): April 10, 2018

 

RCI HOSPITALITY HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

 

Texas   001-13992   76-0458229

(State or other jurisdiction

of incorporation)

 

(Commission

file number)

 

(IRS Employer

Identification No.)

 

10737 Cutten Road

Houston, Texas 77066

(Address of principal executive offices, including zip code)

 

(281) 397-6730

(Registrant’s telephone number, including area code)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

[  ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
   
[  ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a -12)
   
[  ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d -2(b))
   
[  ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e -4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company [  ]

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [  ]

 

 

 

 
 

 

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

 

On April 10, 2018, we issued a press release announcing total and same-store sales at nightclubs and restaurants for the second fiscal quarter ended March 31, 2018. A copy of the press release is furnished as Exhibit 99.1 to this current report on Form 8-K.

 

This information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

 

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS

 

(d) Exhibits.

 

No.   Exhibit
     
99.1   Press release dated April 10, 2018

 

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SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report on Form 8-K to be signed on its behalf by the undersigned hereunto duly authorized.

 

  RCI HOSPITALITY HOLDINGS, INC.
     
Date: April 10, 2018 By: /s/ Eric Langan
    Eric Langan
    President and Chief Executive Officer

 

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RCI 2Q18 Club & Restaurant Total & Same-Store Sales Continue to Grow

 

● Total Club and Restaurant Sales of $40.8 Million—Up 19.7% YOY
   
● Same-Store Sales of $35.3 Million—Up 4.8% YOY

 

HOUSTON—April 10, 2018—RCI Hospitality Holdings, Inc. (Nasdaq: RICK) today announced total and same-store sales for its Nightclubs and Bombshells restaurant segments for the second fiscal quarter ended March 31, 2018. The company plans to report complete 2Q18 results on May 10, 2018.

 

2Q18 vs. 2Q17

 

● Total club and restaurant sales: $40.8 million compared to $34.0 million
   
● Consolidated same-store sales: $35.3 million compared to $33.7 million
   
● Nightclubs segment sales: $35.2 million compared to $29.7 million (38 units vs. 37)
   
● Bombshells restaurant segment sales: $5.6 million compared to $4.4 million (5 units vs. 4)

 

 

CEO Comment

 

Eric Langan, President and CEO, commented: “Fiscal 2018 sales have continued to do well with record second quarter club and restaurant sales and strong same-store sales, in line with the positive year over year trends we’ve been seeing.

 

“Sales improved across the board in 2Q18. Nightclubs increased 18.5% in total sales and 5.1% on a same-store basis, while Bombshells grew 28.0% in total sales and 2.7% on a same-store basis. New units added $5.4 million in sales, primarily due to Scarlett’s Cabaret Miami, which we acquired in 3Q17, and the second full quarter of Bombshells Restaurant & Bar on Highway 290 in Houston.

 

“January was good despite tough weather in some markets. February benefitted from traffic in multiple markets created by the pro football championship. March was our strongest month in the quarter for both segments, in particular, our Bombshells sports bars in Texas, which were driven by the continued success of the Houston Rockets and major college basketball tournaments.

 

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“During 2Q18, the status of two small clubs changed. We decided to close Club Onyx Dallas after numerous attempts to improve results. We are now actively marketing the property. We also closed Hollywood Hunt Club and are now renting out the property.

 

“To sum up, our existing portfolio of clubs and restaurants are doing well. On top of this, we have the imminent opening of our newest Bombshells in the fast growing Houston suburb of Pearland, and three more Bombshells in various stages of development in the Greater Houston market. In addition, we have renewed our discussions with prospective club acquisition targets.”

 

Notes

 

● Nightclubs and Bombshells segment sales do not include sales 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.

 

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 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 [email protected] and [email protected]

 

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