Bombshells Grows Sales Despite Hurricanes
RCI Hospitality Holdings, Inc. announced total and same-store sales for its Nightclubs and Bombshells restaurant segments for the fourth fiscal quarter ended September 30. The company plans to report complete 4Q17 results December 14, 2017.
Fourth quarter 2017 versus fourth quarter 2016.
- Total club and restaurant sales: $38.1 million compared to $32 million.
- Consolidated same-store sales: $32.4 million compared to $30.4 million.
- Nightclubs segment sales: $32.6 million compared to $27.3 million (40 units vs. 38).
- Bombshells restaurant segment sales: $5.6 million compared to $4.7 million (5 units vs. 5).
Eric Langan, president and CEO, says: “We’re pleased to report both strong same-store and total club and restaurant sales for our fourth quarter, resulting in full year Fiscal 2017 growth of 4.9 percent in same-store sales and 8.1% in total club and restaurant sales.
“The Nightclubs segment increased 19.2 percent in total sales and 7.3 percent on a same-store basis, while the Bombshells segment grew 18.8 percent in total sales and 2.1 percent on a same-store basis. These results are a credit to our outstanding staffs across the country, in particular, everybody who went above and beyond the call of duty to help our restaurants and clubs reopen within days after the hurricanes.
“In the Greater Houston area, our three Bombshells lost four days in August due to Hurricane Harvey, but were among some of the first restaurants and bars to reopen. There were relatively minor impacts on our smaller nightclubs in the area. In South Florida, our larger Tootsie’s Cabaret Miami and Scarlett’s Cabaret Miami lost one weekend and some important weekdays in September due to Hurricane Irma.
“We expect complete 4Q17 results will be impacted by some expenses from helping our most severely impacted employees deal with the aftermath of the hurricanes. We also plan to submit claims under our business interruption insurance, but have not recognized any potential proceeds at this time under GAAP.
“Otherwise, total sales for the quarter were positively impacted by $4.5 million from our first full quarter of Scarlett’s Cabaret Miami and Scarlett’s Cabaret St. Louis, both of which were acquired in 3Q17, along with a partial quarter of the highly successful debut of our new Bombshells Restaurant & Bar on Highway 290 in Houston.
“Both same-store and total sales benefitted from strong marketing related to televised professional football, boxing, and mixed martial arts sporting events. In addition, we are continuing to see a broad based recovery around the country both in VIP spend and customer count. This was a pleasant surprise given our fourth quarter is normally a seasonally weaker period.”