We’re sticklers for keeping your mask on here at Calcbench — but it looks like everything else is coming off as usual at strip club operator RCI Hospitality Holdings, which just posted an update to earnings.
RCI ($RICK, naturally) published its guidance on Nov. 19. Let’s peep at what the business had to say.
On the perky side: October revenue from its clubs and restaurants totaled $15.3 million — the firm’s best performance since April, when all 48 locations were closed due to covid lockdowns. October sales were up 34 percent over September, and equaled 97 percent of October 2019 sales.
Moreover, all of RCI’s locations still operate under at least some occupancy restrictions. So if the business is seeing almost the same volume of revenue as it did prior to the pandemic but with fewer people allowed inside, we presume that means its establishments are generating more revenue per customer (although the guidance doesn’t specifically say that.)
OK, good news so far. Can RCI keep it up?
That’s less clear. The company warns in its guidance that our current second wave of the pandemic is leading to new occupancy restrictions and closures. For example, the firm had 47 locations open in October, but only 42 were open as of Nov. 19. (The five locations that closed were all strip clubs; the 10 sports bars RCI operates under the Bombshells brand all remain open.)
If there are no additional closings or restrictions, RCI estimates November sales will be around $11 million to $12 million.
For comparison purposes, revenue for the year-ago quarter was $48.4 million. That averages to $16.1 million per month, or $32.2 million for two months. This quarter, RCI is looking at $27.3 million for the first two months of the quarter ($15.3 million in October plus $12 million in November) if nothing gets any worse. We all hope that is the case, but who knows what coronavirus may bring.
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