Business
RCI Reports 2Q20 Results and COVID-19 Update
HOUSTON, May 11, 2020 /PRNewswire/ -- RCI Hospitality Holdings, Inc. (Nasdaq: RICK) today reported results for the second quarter ended March 31, 2020 and
About this update from Rci Hospitality Holdings, Inc.
[{"type":"text","content":"HOUSTON, May 11, 2020 /PRNewswire/ -- RCI Hospitality Holdings, Inc. (Nasdaq: RICK) today reported results for the second quarter ended March 31, 2020 and filed its corresponding Form 10-Q. RCI also updated its response to the coronavirus situation.\n\n \n \n \n \n \n \n\n \n2Q20 results are not comparable to prior periods. All company club and restaurant subsidiaries had to close in March 2020 because of the COVID-19 pandemic. There will be no conference call this quarter.\nKey Points\nEPS: 2Q20 basic and diluted loss per share of $0.37. Non-GAAP* basic and diluted earnings per share of $0.47. The quarter included an $8.2 million non-cash impairment of clubs and restaurants triggered by the pandemic, partially offset by a $1.4 million income tax benefit. Revenues: 2Q20 total revenues of $40.4 million. Nightclubs contributed $31.4 million and Bombshells $8.8 million. Cash: $9.8 million in cash and $3.6 million in accounts receivable ($2.6 million of which is income tax refundable) at March 31, 2020. Share Repurchases: 132,719 shares at an average price of $15.42, all of which were acquired before club and restaurant subsidiaries closed. Reopenings: Based upon the small sampling of early openings in Texas, revenues seem favorable despite 25% occupancy restrictions. As of today, nine Bombshells restaurants and Club Onyx Houston (operating as a restaurant) have reopened. The 10th Bombshells is expected to reopen Thursday, May 14. Employment: To date, subsidiaries have reemployed more than 700 full and part time staff. This was particularly significant for those who had not yet received unemployment or stimulus checks. Subsidiaries plan to return all employees to work as soon as possible. Working Capital: Based on our current working capital and current store openings, we believe we have enough resources to fund operations through the end of Fiscal 2020. Please see our 10-Q for further discussion.CEO Comment\n\"After coming to a full stop in March, we're encouraged by what's happening two months later,\" said Eric Langan, President & CEO. \"Stay-at-home restrictions are easing in Texas and other parts of the country. Our subsidiaries are doing everything they can to reopen as many units and rehire as many people as possible. We are not taking our reopenings lightly. First and foremost, we are concerned about the health and well-bein...