RCI Announces 1Q21 Sales Trends, Current Cash Levels, and Bombshells Expansion Plans

About this update from Rci Hospitality Holdings, Inc.

[{"type":"text","content":"HOUSTON, Nov. 19, 2020 /PRNewswire/ -- RCI Hospitality Holdings, Inc. (Nasdaq: RICK) today announced first quarter Fiscal 2021 sales trends, current cash levels, and plans to double the number of company-owned locations of its Bombshells Restaurant & Bar chain.\n\n \n \n \n \n \n \n\n \nSales Trends & Cash\nOctober sales for clubs and restaurants totaled $15.3 million, their best monthly performance since April when all locations were closed due to government related Covid-19 measures. October sales were up 34% compared to September and equaled 97% of year ago October sales.\nDuring October, 47 of 48 locations were open (37 clubs and all 10 Bombshells). All locations continued to limit occupancy in accordance with coronavirus safety plans. Many clubs and restaurants continued to experience strong sales and a steady flow of business. Not all clubs operated at full schedules, in line with other restrictions. That included some of our biggest clubs in South Florida and New York City.\nAs of today, the latest wave of Covid is leading to increased restrictions, including reduced occupancy levels and operating hours for some clubs, causing some to close temporarily. Currently, 32 clubs and all 10 Bombshells are open. If there are no additional closings or restrictions, November revenues should total around $11 million to $12 million. RCI currently has approximately $18 million cash on hand.\n\"The Next 10\" Bombshells\nRCI plans to develop 10 new Bombshells over the next three years assuming it can find the right locations and structure the development of each in line with the company's capital allocation strategy. The expansion is being launched due to the chain's overall success since its 2013 founding, including its particularly strong performance through the coronavirus, Bombshells' ability to easily self-fund the new units, and a significantly improved market for accessing prime locations and/or buying and leasing them at attractive prices.\nFor the fourth fiscal quarter ended September 30, 2020, total Bombshells sales were $15.5 million, up more than 80% year over year and 50% on a same-store basis. Since inception of the concept through Fiscal 2020, the cash on cash return of \"The First 10\" has met RCI's capital allocation objectives and more than paid back all of the cash invested in them, including the cash invested in the ...

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