I agree with this, fully and unequivocally. I have to wonder if "there are ladies present" might also be construed as sexist. Maybe we just shouldn't use toilet humor in situations where we're not absolutely sure everyone will find it appropriate. Warning: offensive, but to demonstrate a point... I once interviewed a guy who decided to wear a t-shirt to the interview that read "Thousands of my potential children died…
Serious question, and I don't mean this disrespectfully to you, but why did you not turn him away immediately and proceed to waste everyone's time?
Sadly you can't even give feedback on what people did wrong because anything that you say can and sometimes will be held against you in a court of law.