Nightclubs have been a big part of RCI's success, as outlined in this breakdown of the sector: "Revenues of $48.2 million increased by 56.5 percent compared to the prior-year quarter, when COVID-19 related government restrictions were just starting to ease newly acquired clubs contributed 50 percent of the $17.4 million increase in segment revenues same-store sales growth contributed 20 percent, and eight northern ntributed 30 percent operating margin expanded primarily due to an 88 percent year-over-year increase in high-margin service revenues." This graphic details sizable earnings jumps for the first three months of 2022 as compared to the same period a year earlier: But RCI's latest earnings report, released on May 9, shows business picking up substantially.
The COVID-19 pandemic has presented significant challenges both PT's Showclub and PT's Showclub Centerfold were cited by the City of Denver for virus-related safety violations when they were still in Lowrie's portfolio. For the six-month period ending March 31, 2021, RCI reported revenues of $82.5 million, while the eleven clubs generated $40 million in revenue for the 2019 fiscal year.
The purchases were RCI's biggest deal since it was founded in 1995, as well as "one of the largest in the history of the gentlemen's club industry," the firm maintained - and it expected them to make a sizable contribution to its bottom line. We believe the quality of the clubs' licenses and locations enhance the value of the collective acquisition to us." Troy and his team should be recognized for their accomplishments. All the clubs are well-established and proven cash generators. We look forward to being significant RCI shareholders and participating in the company's long-term growth."Īdded Eric Langan, RCI's president and CEO: "This is exactly the type of sizable transaction for which we have been searching. Their future will now be in the best hands in the industry. We're pleased to have realized their value. Lowrie offered this quote at the time of the deal: "These clubs have been my father's and my life's work. Nine of the local clubs had been controlled by Lakewood-based entrepreneur Troy Lowrie, an outsized personality known for speaking his mind: Back in 2011, he railed against the Denver Police for a prostitution bust that was later dropped. The Denver properties were among eleven adult nightclubs purchased for $88 million by the company in six states (Missouri, Kentucky, Indiana, North Carolina, Maine and Colorado), along with six related real estate parcels and associated intellectual property. The businesses operate under brand names such as Rick's Cabaret, XTC, Club Onyx, Vivid Cabaret, Jaguars Club, Tootsie's Cabaret, Scarlett's Cabaret and, for its sports bar/restaurant chain, Bombshells Restaurant & Bar. Louis, Charlotte and Pittsburgh in addition to Denver. RCI has many other establishments in its portfolio - more than forty, including clubs in New York City, Chicago, Dallas/Fort Worth, Houston, Miami, Minneapolis, St. RCI spokesperson Gary Fishman responded with this statement: "We don’t have any comment on your inquiry." Westword reached out to RCI to ask about this latest incident and any changes in policy.
The transaction, announced July 26, 2021, instantly transformed RCI into Denver's most prominent strip-club empire. However, this month's shooting was the first since the venue was purchased by Houston-based RCI Hospitality Holdings Inc., which describes itself as "the country's leading company in gentlemen's clubs and sports bars/restaurants." Also acquired were four other Denver area nightspots: Mile High Men's Club, 4451 East Virginia Avenue PT's Showclub Centerfold, 3480 South Galena Street La Boheme Gentlemen's Cabaret, 1443 Stout Street and the Diamond Cabaret, 1222 Glenarm Place. Of the sixteen killings or attacks at Colorado strip clubs since 2011, four took place at the venue. The Denver Police Department has not yet announced any arrests in connection with a May 1 double shooting outside PT's Showclub, a strip joint at 1601 West Evans Avenue that's been the setting for numerous violent episodes.