|Over a month ago|
RCI Hospitality acquiring The Mansion Gentlemen's Club in Newburgh, NY » 09:0208/1808/18/21
RCI Hospitality signed…
RCI Hospitality signed definitive agreements to acquire The Mansion Gentlemen's Club and Steakhouse of Newburgh, NY, and its real estate. The Mansion was completely renovated in 2018, has been in business for nine years, and is the only gentlemen's club with a liquor license in Orange County, NY. Consideration is $500K in cash and $1.0M in 4.00%, 7-year seller financing for the club and $2.0M for the real estate. Closing is currently anticipated to occur within approximately 90 days.
RCI Hospitality to purchase 11 adult nightclubs in six states » 09:0407/2607/26/21
RCI Hospitality announced…
RCI Hospitality announced the signing of definitive agreements to acquire for $88M 11 adult nightclubs, nine of which are controlled by club entrepreneur Troy Lowrie of Lakewood, CO; six related real estate properties; and associated intellectual property. The establishments, all fully open, will expand RCI's geographic footprint with five locations in Denver, CO; two near St. Louis, MO; and one each in Indianapolis, IN, Louisville, KY, Raleigh, NC, and Portland, ME. The collective acquisition will be RCI's largest since its 1995 founding and is anticipated to be accretive in year one. The clubs generated approximately $40M in revenue and $14M in adjusted EBITDA in their fiscal year ended December 31, 2019. For the six months ended March 31, 2021, RCI reported revenues of $82.5M and adjusted EBITDA of $22.3M. The collective acquisition also is one of the largest in the history of the gentlemen's club industry. Closing is subject to transfer of all necessary permits, licenses, and other authorizations; closing on the bank financing; and other customary closing conditions for transactions of this kind. The intent is to close on all 11 clubs as close together in time as possible, but due to the timing of required approvals and transfers of licenses, multiple closing dates are anticipated.
|Over a quarter ago|
RCI Hospitality files $100M mixed securities shelf 17:0205/1405/14/21
RCI Hospitality reports Q2total club & restaurant sales up 9.5% Y-O-Y » 09:1104/0804/08/21
RCI Hospitality reported…
RCI Hospitality reported sales for its Nightclubs and Bombshells restaurants for Q2. Compared vs. 2Q20, total club and restaurant sales were $43.5M , up 9.5%; total club and restaurant same-store sales were $16.9M, up 26.3%; nightclubs total sales were $30.4M, down 1.9%; Nightclubs same-store sales were $6.9M, up 3.6%; Bombshells total sales were $13.2M, up 49.5%; Bombshells same-store sales were $10.0M, up 48.6%. Many locations were not open enough days in 2Q21 and 2Q20 to be part of same-store sales. CEO Eric Langan said, "Total sales in January were better than December. February was affected by the Texas Freeze. In March, RCI recorded the highest monthly club and restaurant sales in company history. We believe the continued sequential quarterly improvement reflects more locations open on a more consistent basis, less restrictive curfews, and the ongoing return of our loyal customer base, all of which are generally benefitting from increased vaccinations. This was despite the fact that most of our larger locations in northern states still operated under more restrictive curfews, which are starting to end" .During 2Q21, 29 of 38 clubs were open the full quarter and 37 by period end. All 10 Bombshells were open. But the Texas Freeze caused 21 clubs and all the Bombshells to close for several days mid-February.
RCI Hospitality encouraged by opening of more clubs » 16:3602/0902/09/21
Eric Langan, President…
Eric Langan, President & CEO, said: "Looking ahead, we're encouraged more clubs have been allowed to reopen and hope this trend continues as the COVID-19 vaccines are rolled out. As of today, 31 clubs and all 10 Bombshells are open. We're also evaluating potential club acquisitions. To expand Bombshells, we recently acquired a great site in the Dallas area and are conducting due diligence on three more. In addition, we are closely collaborating with our initial franchisee on their first location and continue to speak with potential new franchisees. As part of the effort to refinance our real estate debt at better terms, we are awaiting results of appraisals."
RCI Hospitality reports Q1 non-GAAP EPS 39c, one estimate 32c » 16:3602/0902/09/21
Reports Q1 revenue…
Reports Q1 revenue $38.4M, consensus $38M. Reports Q1 nightclubs segment revenues of $25.2M with 33.7% operating margin; and bombshells segment revenues of $13.0M with 20.9% operating margin. Eric Langan, President & CEO, said: "1Q21 saw the best overall company and Nightclubs performance since the pandemic began in our March 2020 quarter, as well as continued strong Bombshells results. This enabled us to keep our teams employed, generate free cash flow, build cash, and achieve operating and net profitability on a GAAP and non-GAAP basis. Once again, we thank our loyal customers, dedicated team members, and steadfast investors.
RCI Hospitality price target raised to $42 from $35 at Sidoti » 14:2101/1201/12/21
Sidoti analyst Gregory…
Sidoti analyst Gregory Pendy raised the firm's price target on RCI Hospitality to $42 from $35 and keeps a Not Rated rating on the shares following the company's better than expected Q1 sales report. While adult night club same store sales declined 6.6% annually, sequentially improving trends drove total divisional sales to $24.8M, says the analyst, above his estimate of $21.6M. Pendy sees the primary catalyst for further earnings upside being easing year-over-year compares.
RCI Hospitality reports Q1 club and restaurant sales $37.8M, down 20.9% YoY » 09:1301/1201/12/21
RCI Hospitality Holdings…
RCI Hospitality Holdings reported sales for its Nightclubs and Bombshells restaurants for the Q1. Results reflect a continued rebound from April 2020 when all locations were closed due to the COVID-19 pandemic. Q1 of FY21 vs. Q1 of FY20: total club and restaurant sales were $37.8M compared to $47.8M, or down 20.9%, consolidated same-store sales were $30.4M compared to $30.9M, or down 1.5%; nightclubs total sales were $24.8M compared to $37.4M, or down 33.7%; nightclubs same-store sales were $20.7M compared to $22.2M, or down 6.8%, bombshells total sales were $13.0M compared to $10.3M, or up 25.4%; and bombshells same-store sales were $9.8M compared to $8.7M, or up 12.0%. During Q1, 24 clubs were open during the full quarter and 26 by period end, and all 10 Bombshells were open, 38 clubs were open, and the ninth Bombshells opened October 2019. As of yesterday, 39 of 48 locations were open. All locations continue to limit occupancy in accordance with coronavirus safety plans, and not all clubs are operating at full schedules, in line with local government restrictions
RCI Hospitality signs franchise agreements for Bombshells chain in Texas » 09:0212/2312/23/20
RCI Hospitality signed…
RCI Hospitality signed the first Franchise Development Agreement for Bombshells Restaurant & Bar. Terms call for the opening of three locations over five years in San Antonio, TX, and the right of first refusal for three more locations in Corpus Christi, New Braunfels, and San Marcos, also in Texas. The agreement was signed with a newly formed entity established by six Houston-based private investors who have experience in retail and hospitality, as well as multiple other industries. This experience includes franchise management and restaurant ownership. The brand currently has 10 company-owned locations: eight in the Houston area and one each in Dallas and Austin. Bombshells recently announced plans for 10 more company-owned locations.
RCI Hospitality options imply 14.7% move in share price post-earnings » 15:0412/1412/14/20
Pre-earnings options volume in RCI Hospitality is normal with calls leading puts 6:1. Implied volatility suggests the market is anticipating a move near 14.7%, or $4.17, after results are released. Median move over the past eight quarters is 4.8%.