US-based RCI Hospitality Holdings has reported total revenues of $47m for the third quarter (Q3) 2019 period ending 30 June 2019, an increase from $42.6m for the same period last year.
The growth reflected a 10.8% increase in alcoholic beverages, 6% in service, 14.1% in food and 25.2% in other services. The company noted that the revenues increased mainly due to the addition of Rick’s Cabarets in Chicago and Pittsburgh in Nightclubs and two new Bombshells (I-10 and 249).
The restaurant company also reported a net income of $5.67m, compared to $5.4m for the corresponding period in 2018.
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of the restaurant chain increased 2.6% to $12.2m for Q3 2018, compared to $11.9m the prior year.
Operating income of the hospitality company was $10.0m, up from $9.5m (22.3%).
RCI Hospitality president and CEO Eric Langan said: “Third quarter total revenues grew 10.3% primarily due to our Nightclubs and Bombshells segments, operating income increased 5.1%, and EPS totalled $0.59.
“Nightclubs revenues benefitted from our solid club line-up and Bombshells from the strong performance of new locations. In July, Bombshells same-store sales were up year-over-year for the second month in a row.
“We continued to achieve progress with part of our Bombshells development strategy through the sale of a second excess parcel for a gain of more than 40% of cost. We also continued the liquidation of other non-income producing assets.
“During and subsequent to the quarter, this resulted in cash proceeds of $2.5m and the pay down of $2.2m in related debt. We hope to conclude the sale or lease of remaining non-income-producing properties by year-end FY19 or early FY20.”
RCI subsidiaries own more than 40 Gentlemen’s clubs, sports bars and restaurants across the US, including New York City, Miami, Charlotte, Houston, Minneapolis and St. Louis.
Brands include Rick’s Cabaret, XTC, Club Onyx, Vivid Cabaret, Jaguars, Tootsie’s Cabaret, and Scarlett’s Cabaret.