RCI Reports Club and Restaurant Sales of $61.1 Million in 1Q22

Rhea-AI Summary

RCI Hospitality Holdings, Inc. (Nasdaq: RICK) reported strong sales for the first quarter of fiscal 2022, reaching $61.1 million, a 61.6% increase compared to the same period last year. The Nightclubs segment saw $46.3 million in sales, up 86.6%, while Bombshells restaurants generated $14.8 million, a 13.8% increase. The results benefited from the opening of new locations, including the 11th Bombshells in Arlington, TX. The company expects to report full financial results by February 9. Potential impacts from the Omicron variant were minimally felt during this quarter.

Positive

• Sales increased to $61.1 million, up 61.6% year-over-year.
• Nightclub sales rose to $46.3 million, an increase of 86.6%.
• Bombshells restaurant sales reached $14.8 million, a rise of 13.8%.
• Successful opening of the 11th Bombshells location in Arlington, TX.

Negative

• Potential impact from the Omicron variant on future sales.

HOUSTON, Jan. 10, 2022 /PRNewswire/ -- RCI Hospitality Holdings, Inc. (Nasdaq: RICK) reported sales for its Nightclubs and Bombshells restaurants for the fiscal 2022 first quarter ended December 31, 2021.

Eric Langan, President and CEO of RCI Hospitality Holdings, Inc., said, "We had a strong first quarter as we benefited from legacy as well as new locations, namely our 11th Bombshells in Arlington, TX, which opened December 6, and the 12 clubs we acquired mid-October and early November. We didn't experience any noticeable impact from Omicron until late 1Q22 and hope it will cycle through our markets quickly. We look forward to our first Bombshells franchisee opening its San Antonio location in our March quarter. Full financial results for 1Q22 are expected to be reported by February 9th."

($ in Millions)			Total Sales				Same-Store Sales
	1Q22 Sales		vs. 1Q21		vs. 1Q20		vs. 1Q21		vs. 1Q20
Combined	$61.1		+61.6%		+27.9%		+21.8%		+24.9%
Nightclubs	$46.3		+86.6%		+23.8%		+30.6%		+20.2%
Bombshells	$14.8		+13.8%		+42.7%		+7.6%		+35.0%

• RCI is providing comparisons to its pre-COVID 1Q20 (ended December 31, 2019) for illustrative purposes.
• Sales do not include non-core operations and are preliminary and subject to final closing.
• The COVID pandemic first impacted sales in RCI's 2Q20 when all locations were required to close mid-March 2020. Bombshells and some Nightclubs began to reopen May 2020 in RCI's 3Q20. All Nightclubs were not fully reopened to their full operating hours until 4Q21.
• All references to "RCI Hospitality Holdings, Inc.," "company," "we," "our," and similar terms refer to RCI and/or its subsidiaries, unless the context indicates otherwise.

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 gentlemen's clubs 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, and Scarlett's Cabaret. 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 and 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 were RCI Hospitality's sales for Q1 2022?

RCI Hospitality reported sales of $61.1 million for Q1 2022.

How much did Nightclubs contribute to RCI's sales in Q1 2022?

Nightclubs contributed $46.3 million to RCI's sales in Q1 2022.

What is the percentage increase in Bombshells restaurant sales compared to last year?

Bombshells restaurant sales increased by 13.8% compared to last year.

When will RCI Hospitality report its full financial results for Q1 2022?

RCI Hospitality is expected to report full financial results by February 9, 2022.

What impact did Omicron have on RCI's Q1 2022 performance?

RCI did not experience noticeable impacts from Omicron until late in Q1 2022.