RCI Hospitality sees Q2 revenue $70.8M, consensus $72.02M

RCI Hospitality Holdings reported sales for its Nightclubs and Bombshells restaurants of $70.8M for the Q2, a 12.3% year-over-year increase. Sales do not include non-core operations and are preliminary and subject to final closing. Full Q2 financial results are expected on or around May 10. Eric Langan, President & CEO of RCI, said: "Nightclubs sales totaled $56.6M, 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." Q2 highlights include: Club sales included $15.1M from the acquisitions of 15 clubs acquired in FY22, $1.8M from the six clubs acquired in FY23 to date, and $1.2M 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 Q2; Restaurant sales included $1.3M from Bombshells San Antonio and Grange Food Hall. Bombshells Arlington faced challenging comparisons due to Q2 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.