RCI Announces Acquisition of Cheetah Gentlemen's Club in South Florida

Rhea-AI Summary

RCI Hospitality Holdings, Inc. (Nasdaq: RICK) has finalized its acquisition of the Cheetah Gentlemen's Club in Hallandale Beach, Florida, along with its real estate. The deal, costing $10 million in cash plus $15 million in seller financing, marks RCI's 15th acquisition this fiscal year, bringing its total to 52 clubs. The Cheetah club is expected to generate approximately $4 million in adjusted EBITDA. Located on a 2.2-acre property, the club enhances RCI's South Florida presence alongside other brand-name clubs.

Positive

• Acquisition expands RCI's presence in South Florida with a fourth adult nightclub.
• Expected to generate $4 million in adjusted EBITDA, contributing positively to annual revenue.
• Strategic fit with existing South Florida clubs catering to diverse market segments.

Negative

• None.

HOUSTON, July 28, 2022 /PRNewswire/ -- RCI Hospitality Holdings, Inc. (Nasdaq: RICK) today announced closing on the acquisition of the Cheetah Gentlemen's Club in Hallandale Beach, Florida and its associated real estate.

Eric Langan, RCI President & CEO, said: "Cheetah becomes our fourth adult nightclub in South Florida, 15th club acquisition this fiscal year, and 52nd club in our portfolio. We believe it should generate approximately $4 million in adjusted EBITDA."

Ed Anakar, President of RCI Management, said: "Cheetah fits perfectly with our renowned Miami area brands, each of which appeals to different market segments – the Tootsie's Cabaret mega club in Miami Gardens, the Scarlett's Cabaret party club in Pembroke Park, and the hot Playmates Club of Coral Gables."

RCI subsidiaries acquired the 14,000 square-foot Cheetah club and its 2.2-acre property at 100 Ansin Boulevard, Hallandale Beach, FL, for $10.0 million in cash and $15.0 million in two, 10-year, 6% seller financing notes.

Cheetah opened in 2002 and was named Best Strip Club of Broward-Palm Beach by the New Times in 2014. The club has been extensively remodeled, features a full kitchen, and offers lunch and dinner. Hours are 11:30 AM to 6 AM daily.

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

With more than 50 units, RCI Hospitality Holdings, Inc., through its subsidiaries, is the country's leading company in adult nightclubs and sports bars/restaurants. Clubs in New York City, Chicago, Dallas-Fort Worth, Houston, Miami, Minneapolis, Denver, St. Louis, Charlotte, Pittsburgh, Raleigh, Louisville, and other markets operate under brand names such as Rick's Cabaret, XTC, Club Onyx, Vivid Cabaret, Jaguars Club, Tootsie's Cabaret, Scarlett's Cabaret, Diamond Cabaret, and PT's Showclub. Sports bars/restaurants operate under the brand name Bombshells Restaurant & Bar.

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, 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, 2021, 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.

Media & Investor Contacts

Gary Fishman and Steven Anreder at 212-532-3232 or gary.fishman@anreder.com and steven.anreder@anreder.com

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SOURCE RCI Hospitality Holdings, Inc.

FAQ

What is the purpose of RCI's acquisition of Cheetah Gentlemen's Club?

The acquisition aims to expand RCI's footprint in South Florida's adult entertainment market and is expected to enhance overall revenue.

How much did RCI pay for the Cheetah Gentlemen's Club?

RCI acquired the Cheetah Gentlemen's Club for $10 million in cash and $15 million in seller financing.

What is the expected EBITDA from the Cheetah Gentlemen's Club?

The Cheetah Gentlemen's Club is anticipated to generate approximately $4 million in adjusted EBITDA.

How does this acquisition affect RCI's total number of clubs?

With this acquisition, RCI now owns a total of 52 clubs, marking 15 acquisitions in the current fiscal year.

When was the closing date for the Cheetah Gentlemen's Club acquisition?

The acquisition was announced and closed on July 28, 2022.