HOUSTON, Jan. 12, 2016 /PRNewswire/ -- RCI Hospitality Holdings, Inc. (Nasdaq: RICK) today announced total net sales at adult clubs and bars/restaurants for the first fiscal quarter ended December 31, 2015. The company also announced total 1Q16 share repurchases.
Sales figures for 1Q16 and the year ago period are being reported net of sales taxes and other revenue related taxes, RCI having chosen to early adopt new revenue accounting standards. The figures do not include net sales from the company's internet, media and other subsidiaries. RCI expects to announce 1Q16 results on February 9, 2016.
- Total club and restaurant net sales of $32.9 million compared to $33.6 million in the year ago quarter.
- 43 units in operation in both 1Q16 and 1Q15.
- Same store net sales were $30.0 million compared to $32.0 million.
- Nightclubs segment net sales totaled $28.5 million compared to $29.1 million.
- Bombshells segment net sales totaled $4.4 million compared to $4.5 million.
CEO Comment
Eric Langan, President and CEO, commented: "As we discussed on our most recent 4Q15 shareholders conference call in mid-December, total sales and same store sales were down as expected.
"Same store sales reflect big spenders spending less per visit at adult clubs, and clubs located in energy producing areas in Texas have come down, we believe temporarily, off their peak.
"In response, we have revamped marketing in many areas to utilize more effective and less costly social media instead of more expensive radio advertising. While this transition may reduce sales in some areas, it is expected to reduce costs even more, which should ultimately benefit margins.
"Based on historical same store revenue cycles, we hope to show improvement as the year progresses, and especially by the second half of fiscal 2016. Bombshells results were slightly askew due to the year ago launch of new units.
"As a whole, we continue to expect flat revenues for fiscal 2016. However, due to measures we've instituted to expand margins combined with the accretive nature of our share buyback program, we look forward to growth in cash flow and EPS, and continuing our share repurchases."
Share Buybacks
- In 1Q16, the company used a total of approximately $2.8 million to buy back 282,762 shares as part of its ongoing program.
- These repurchases, plus initial buy backs in 2Q16, have now reduced shares outstanding to less than 10 million.
- For all of FY15, the company only used $2.3 million to buy back 225,280 shares.
About RCI Hospitality Holdings, Inc. (Nasdaq: RICK)
With 43 units, RCI Hospitality Holdings, Inc., through its subsidiaries, is the country's leading company in adult gentlemen clubs and sports bars/restaurants. Adult 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 the operational and financial results of its Web sites, 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.
*All references to, the "company," "we," "our," and similar terms include RCI Hospitality Holdings, Inc. and its subsidiaries, unless the context indicates otherwise.
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SOURCE RCI Hospitality Holdings, Inc.