In the news release "RCI 3Q16 Club & Restaurant Sales Slightly Higher; Continues Share Buybacks," issued July 12, 2016 by RCI Hospitality Holdings, Inc. over PR Newswire, we are advised by the company that RCI Hospitality Holdings, Inc. (Nasdaq: RICK) repurchased 106,093 shares for $1,076,110 in the third fiscal quarter ended June 30, 2016, for a total of 606,995 shares for approximately $5.8 million in the first nine months of Fiscal 2016 (instead of 78,544 shares for $813,102 in 3Q16 and 579,446 for approximately $5.5 million in 9M16). The complete, corrected release follows:
RCI 3Q16 Club & Restaurant Sales Slightly Higher; Continues Share Buybacks
- Total Club & Restaurant Sales of $33.103 Million; Up 0.13% from 3Q15
- Same Store Sales of $31.624 Million; Up 0.07% from 3Q15
- 606,995 Shares Repurchased First 9 Months of FY16
HOUSTON, July 12, 2016 /PRNewswire/ -- RCI Hospitality Holdings, Inc. (Nasdaq: RICK) today announced total sales at nightclubs and restaurants for the third fiscal quarter ended June 30, 2016. The company also announced 3Q16 share repurchases. RCI expects to report 3Q16 results on August 4, 2016.
Highlights (3Q16 vs. 3Q15)
- Total club and restaurant sales of $33.103 million compared to $33.062 million.
- 43 units compared to 45. Two nightclubs reopened mid-3Q16 after undergoing re-concepting.
- Same store sales of $31.624 million compared to $31.601 million.
- Nightclubs segment sales totaled $28.098 million (38 units) compared to $28.637 million (40 units).
- Bombshells segment sales totaled $5.005 million (5 units) compared to $4.425 million (5 units).
CEO Comment
Eric Langan, President and CEO, commented: "Total sales and same store sales continued to move in the right direction, as we have been planning.
"Year over year, total sales were up 0.13% and same store sales were up 0.07% in 3Q16 compared to being down the first half of FY16. Although small, the increases represent a steadily improving trend this year.
"Total sales by month in 3Q16 were up year over year in April, down in May primarily due to heavy rains in Texas, and then rebounded in June. 3Q16's performance was noteworthy considering we were operating with 43 units versus 45 in 3Q15, two club units undergoing re-concepting didn't reopen until mid-3Q16, and we were going up against a 6.9% increase in total sales in the year ago quarter.
"The Bombshells segment continued to perform well with 3Q16 sales increasing 13.11% year over year on the same number of units. The Nightclubs segment continued to rebound with 3Q16 sales down only 1.88% year over year on fewer units, compared to being down 2.45% in the first half.
"Looking ahead, nightclub sales should benefit from the opening of a new club in Manhattan in 4Q16, and Bombshells sales should get a boost from the opening of a sixth unit in 1Q17."
Share Buybacks
- During 3Q16, RCI used $1,076,110 to buy back 106,093 shares as part of its ongoing program.
- During the first nine months of FY16, the company used approximately $5.8 million to buy back 606,995 shares.
- For all of FY15, RCI only used $2.3 million to buy back 225,280 shares.
Note
- Club and restaurant sales data does not include the company's other subsidiaries.
- Starting with 1Q16, total club and restaurant revenues (including prior comparable periods) are being reported net of sales taxes and other revenue related taxes, RCI having chosen to early adopt new revenue accounting standards.
- Unit counts are at period end.
- All references to, the "company," "we," "our," and similar terms include RCI Hospitality Holdings, Inc. and its subsidiaries, unless the context indicates otherwise.
About RCI Hospitality Holdings, Inc. (Nasdaq: RICK)
With 43 units, RCI Hospitality Holdings, Inc., through its subsidiaries, is the country's leading company in gentlemen clubs and sports bars/restaurants. Clubs in New York City, Miami, Philadelphia, Charlotte, Dallas/Ft. Worth, Houston, Minneapolis, Indianapolis and other cities operate under brand names, such as "Rick's Cabaret," "XTC," "Club Onyx," "Vivid Cabaret," "Jaguars" and "Tootsie's Cabaret." Sports bars/restaurants operate under the brand name "Bombshells." Please visit http://www.rcihospitality.com/
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 in this press release, including the risks and uncertainties associated with operating and managing an adult business, the business climates in cities where it operates, the success or lack thereof in launching and building the company's businesses, risks and uncertainties related to cybersecurity, conditions relevant to real estate transactions, and 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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SOURCE RCI Hospitality Holdings, Inc.
