Business
RCI Reports 3Q23 Club & Restaurant Sales
HOUSTON, July 11, 2023 /PRNewswire/ -- RCI Hospitality Holdings, Inc. (Nasdaq: RICK) reported sales for its Nightclubs and Bombshells restaurants of $76.4
About this update from Rci Hospitality Holdings, Inc.
[{"type":"text","content":"HOUSTON, July 11, 2023 /PRNewswire/ -- RCI Hospitality Holdings, Inc. (Nasdaq: RICK) reported sales for its Nightclubs and Bombshells restaurants of $76.4 million for the fiscal third quarter ended June 30, 2023, an 8.9% year-over-year increase. Sales do not include non-core operations and are preliminary and subject to final closing. Full 3Q23 financial results are expected on or around August 9.\n\n \n \n \n \n \n \n\n \nEric Langan, President & CEO of RCI, said: \"Third quarter sales reflected the benefit of acquisitions, partially offset by macroeconomic uncertainty, which negatively affected same-store sales. Projects coming online should contribute new sales in 4Q23 and FY24.\"\nNightclubs\nSales totaled $62.0 million, an increase of $7.7 million or 14.1% year over year. Key factors contributing to the increase were $12.2 million from FY22-FY23 acquisitions not in SSS and $1.1 million from two reopened/reformatted clubs not in SSS. This was partially offset by a 7.3% SSS decline and a $0.5 million decrease from three small Texas clubs that were closed prior to or during the quarter. 3Q23 was the first SSS decline after nine consecutive quarters in a row of increases once Nightclubs began to recover from COVID.Looking ahead, sales should benefit from the late June completion of the newly remodeled/expanded Baby Dolls Fort Worth, the July reopening of one of the Texas clubs that had been closed, and two new clubs under construction in Fort Worth and Lubbock that should open in FY24.Bombshells\nSales totaled $14.4 million, a decline of $1.4 million or 9.0% year over year. Key factors were $1.8 million from the FY23 acquisitions of Bombshells San Antonio and Grange Food Hall which partially offset an 18.2% SSS decline.Looking ahead, sales should benefit from the opening of a new location in the Houston suburb of Stafford in 4Q23. In addition, construction has started on the Rowlett, TX location and should start this month on the Lubbock, TX location. Property for a previous restaurant space was acquired in Downtown Denver and remodeling should begin soon. All three of these locations are expected to open in FY24.Casinos\nThe liquor license process has begun and gaming licenses are continuing through the review process for two casino locations in Central City, CO. Both are planned to open in FY24.Building permits have been subm...