RCI Reports 2Q23 Club & Restaurant Sales

HOUSTON, April 11, 2023 /PRNewswire/ -- RCI Hospitality Holdings, Inc. (Nasdaq: RICK) reported sales for its Nightclubs and Bombshells restaurants of $70.8 million for the fiscal second quarter ended March 31, 2023, a 12.3% year-over-year (YoY) increase. Sales do not include non-core operations and are preliminary and subject to final closing. Full 2Q23 financial results are expected on or around May 10.

Eric Langan, President & CEO of RCI, said: "Nightclubs sales totaled $56.6 million, an increase of 18.6% YoY, reflecting organic growth and acquisitions. Sales of clubs owned prior to FY22 increased 2.1% YoY as we more than offset intermittent softness at some blue collar clubs and clubs affected by bad weather or other local conditions. Congratulations to the management team at the 11 clubs acquired October 2021 for a 19.5% YoY sales increase. With regard to Bombshells, we are still in the process of implementing our turnaround program."

Club & Restaurant Sales ($ in Millions)

2Q23 Notes

• Club sales included $15.1 million from the acquisitions of 15 clubs acquired in FY22, $1.8 million from the six clubs acquired in FY23 to date, and $1.2 million from three renamed/reformatted clubs reopened in FY22-FY23.
• Of the above-mentioned clubs, the 12 clubs acquired in October-November of 2021 became part of same-store sales as of 2Q23.
• Restaurant sales included $1.3 million from Bombshells San Antonio (acquired from a franchisee in February 2023) and Grange Food Hall (acquired in December 2022, but being remodeled in the March quarter). Bombshells Arlington (opened December 2021) faced challenging comparisons due to 2Q23 highway closures and a strong year-ago "honeymoon" performance.
• Revenues from non-core operations, such as third-party rents, and Other segment revenues, are not included in Nightclubs and Bombshells sales above.
• All references to "RCI Hospitality Holdings, Inc.," "company," "we," "our," and similar terms refer to RCI and/or its subsidiaries, unless the context indicates otherwise.

About RCI Hospitality Holdings, Inc. (Nasdaq: RICK) (Twitter: @RCIHHinc)

With more than 60 locations, RCI Hospitality Holdings, Inc., through its subsidiaries, is the country's leading company in adult nightclubs and sports bars/restaurants. See all our brands at 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, including, but not limited to, the risks and uncertainties associated with (i) operating and managing an adult entertainment or restaurant 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) the impact of the COVID-19 pandemic, and (vii) numerous other factors such as laws governing the operation of adult entertainment or restaurant businesses, competition and dependence on key personnel. For more detailed discussion of such factors and certain risks and uncertainties, see RCI's annual report on Form 10-K for the year ended September 30, 2022, as well as its other filings with the U.S. Securities and Exchange Commission. The company has no obligation to update or revise the forward-looking statements to reflect the occurrence of future events or circumstances.

Media & Investor Contacts

Gary Fishman and Steven Anreder at 212-532-3232 or [email protected] and [email protected]

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SOURCE RCI Hospitality Holdings, Inc.