RCI Shareholder Update on COVID-19
HOUSTON—March 17, 2020—RCI Hospitality Holdings, Inc. (Nasdaq: RICK) updated shareholders today regarding its response to the coronavirus situation.
"In line with city, county or state requests regarding bars and restaurants, our subsidiaries have temporarily closed a number of nightclubs or limited their occupancy, and we are arranging for many of our Bombshells restaurants to provide take out service," said Eric Langan, President & CEO."
"We want our investors to know we are confident we have the financial resources to weather this storm. Sales were strong in the second fiscal quarter through the second week of March. We have enough cash and resources, including excess borrowing capacity based on the composition of our asset base."
"We have been and are continuing to plan and prepare for this uncertain time. We have developed contingency plans and have already reduced many costs, and we will be lowering expenses further. In addition, our pending Northeast Corridor club acquisition will not close in the March quarter as anticipated."
"We want to do our part to help protect our guests, staff, and entertainers, to prevent the spread of the coronavirus in their communities."
"For our shareholders, we plan to be in a strong position and ready to reopen all locations as soon as possible when able to do so."
RCI will provide another update when it announces 2Q20 nightclub and restaurant sales in April.
About RCI Hospitality Holdings, Inc. (Nasdaq: RICK)
With more than 40 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/Ft. Worth, Houston, Miami, Minneapolis, St. Louis, Charlotte, Pittsburgh, and other markets operate under brand names, such as Rick's Cabaret, XTC, Club Onyx, Vivid Cabaret, Jaguars, Tootsie's Cabaret, and Scarlett's Cabaret. Sports bars/restaurants operate under the brand name Bombshells Restaurant & Bar. Please visit http://www.rcihospitality.com
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 in this press release, 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) our ability to maintain compliance with the filing requirements of the SEC and the Nasdaq Stock Market, and (vii) numerous other factors such as laws governing the operation of adult entertainment businesses, competition and dependence on key personnel. The company has no obligation to update or revise the forward-looking statements to reflect the occurrence of future events or circumstances.
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