Houston
-- (BUSINESS WIRE)
-- Aug. 13, 2004
-- Rick's Cabaret International, Inc. [NASDAQ:
RICK],
a leading operator of gentlemen's clubs and other adult entertainment
venues, reported increased operating income of $186,349 for its third
period ending June 30, 2004, compared with an operating loss of $32,012
in the prior year.
Total
revenues for the company rose to $3,887,176 for the period, compared
with $3,822,141 in the prior year. Revenues from nightclub operations
rose to $3,686,876 for the quarter from $3,572,112 in the prior
year. The company's Internet and online auction sector reported
a drop to $200,300 in revenue from $250,029 in the prior year as
the planned reduction in Internet activities continued.
Rick's
Cabaret reports net income of $90,575 or $.02 per share for the
period. This compares with net income of $276,201 or $.07 in the
prior year, which had benefited from a $327,381 one-time gain on
the sale of the Taurus Entertainment Companies subsidiary.
Operating
income from the company's clubs increased to $473,355 during the
period, from $358,257 in the year earlier, despite the fact that
the Rick's Cabaret nightclub in the Galleria district of Houston
was closed for two weeks while it was being converted at a cost
of about $70,000 and reopened as Club Onyx, which has already become
a popular venue catering to urban businessmen and professional athletes.
Operating income in the Internet and auction segment increased to
$36,227 from $11,757. Both segments benefited from lower operating
expenses.
"We
are pleased with our results from the third quarter and are confident
that we are on track for an excellent year," said Eric S. Langan,
CEO of Rick's Entertainment. "Our expense control program is having
a beneficial impact on earnings. Plus, our new Club Onyx in Houston
catering to the urban gentleman is off to a fine start and we are
continuing to explore other expansion opportunities."
For
the nine months ending June 30th total company revenues are $11,890,532
compared with $11,095,443 in the prior year, with net income of
$698,087 versus $341,903 in the prior year. Earnings per share for
the year to date are $.19 versus $.09 in the prior year.
RICK'S CABARET INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE THREE MONTHS FOR THE NINE MONTHS
ENDED JUNE 30, ENDED JUNE 30,
2004 2003 2004 2003
Revenues
Sales of alcoholic
beverages $1,527,029 $1,702,038 $5,250,470 $4,847,104
Sales of food and
merchandise 428,042 448,671 1,240,266 1,233,650
Service revenues 1,664,234 1,353,834 4,534,864 3,939,650
Internet revenues 200,300 250,029 603,723 846,681
Other 67,571 67,569 261,209 228,358
Total revenues 3,887,176 3,822,141 11,890,532 11,095,443
----------- ----------- ----------- -----------
Operating expenses
Cost of goods sold 418,154 568,003 1,446,680 1,652,124
Salaries and wages 1,415,847 1,390,943 4,057,287 4,027,421
Other general and
administrative
Taxes and permits 530,257 561,475 1,669,825 1,558,995
Charge card fees 70,347 64,832 198,982 191,267
Rent 142,319 101,448 394,489 218,361
Legal and
professional 130,336 157,840 410,911 564,674
Advertising and
marketing 260,445 232,329 660,410 610,809
Depreciation 131,235 133,528 396,199 394,393
Other 601,887 643,755 1,733,028 1,668,079
Total operating
expenses 3,700,827 3,854,153 10,967,811 10,886,123
----------- ----------- ----------- -----------
Income from operations 186,349 (32,012) 922,721 209,320
Interest income 6,270 3,643 21,096 13,103
Interest expense (87,953) (92,762) (256,541) (289,618)
Gain from sale of
marketable securities 2,929 --- 19,807 (1,874)
Gain on sale of
subsidiary --- 327,381 --- 327,381
Minority interests (17,471) 69,951 (6,925) 83,591
Other 451 --- (2,071) ---
Net income $ 90,575 $ 276,201 $ 698,087 $ 341,903
=========== =========== =========== ===========
Basic and diluted
earnings per share:
Net income $ 0.02 $ 0.07 $ 0.19 $ 0.09
=========== =========== =========== ===========
Weighted average number
of common shares
outstanding 3,700,148 3,715,048 3,700,148 3,724,304
=========== =========== =========== ===========
RICK'S CABARET INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
6/30/04 9/30/03
(UNAUDITED) (AUDITED)
CURRENT ASSETS
Cash and cash equivalents $ 365,936 $ 604,865
Accounts receivable:
Trade 28,269 45,319
Other, net 203,606 213,886
Marketable securities 100,104 135,000
Inventories 282,766 230,451
Other current assets 844,076 106,332
------------ ------------
Total current assets 1,824,757 1,335,853
------------ ------------
PROPERTY AND EQUIPMENT
Buildings, land and leasehold
improvements 9,369,448 9,131,870
Furniture and equipment 2,348,042 2,068,648
------------ ------------
11,717,490 11,200,518
Accumulated depreciation (2,797,475) (2,423,461)
------------ ------------
Total property and equipment, net 8,920,015 8,777,057
------------ ------------
OTHER ASSETS
Goodwill 1,982,848 1,962,848
Notes receivable 168,925 179,754
------------ ------------
Total other assets 2,151,773 2,142,602
------------ ------------
Total assets $12,896,545 $12,255,512
============ ============
RICK'S CABARET INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND STOCKHOLDERS' EQUITY
6/30/04 9/30/03
(UNAUDITED) (AUDITED)
CURRENT LIABILITIES
Accounts payable - trade $ 328,330 $ 189,208
Accrued liabilities 533,582 622,216
Deferred revenues 21,753 ---
Current portion of long-term debt 500,894 449,439
------------- -------------
Total current liabilities 1,384,559 1,260,863
Long-term debt, less current portion 3,422,462 3,576,896
------------- -------------
Total liabilities 4,807,021 4,837,759
------------- -------------
COMMITMENTS AND CONTINGENCIES --- ---
MINORITY INTERESTS 42,956 36,032
STOCKHOLDERS' EQUITY
Preferred stock, $.10 par, 1,000,000
shares authorized; none outstanding --- ---
Common stock, $.01 par, 15,000,000
shares authorized; 4,608,678 shares
issued at June 30, 2004 and September
30, 2003 46,087 46,087
Additional paid-in capital 11,273,149 11,273,149
Accumulated other comprehensive income 86,757 120,000
Accumulated deficit (2,065,645) (2,763,735)
Less: 908,530 shares of stock held in
treasury at cost at June 30, 2004 and
September 30, 2003 (1,293,780) (1,293,780)
------------- -------------
Total stockholders' equity 8,046,568 7,381,721
------------- -------------
Total liabilities and stockholders'
equity $12,896,545 $12,255,512
============= =============
FINANCIAL INFORMATION RELATED TO THE COMPANY'S SEGMENTS
FOR THE THREE MONTHS FOR THE NINE MONTHS
ENDED JUNE 30, ENDED JUNE 30,
2004 2003 2004 2003
REVENUES
Club operations $ 3,686,876 $ 3,572,112 $11,286,809 $10,248,762
Internet websites 200,300 250,029 603,723 846,681
------------ ------------ ------------ ------------
$ 3,887,176 $ 3,822,141 $11,890,532 $11,095,443
============ ============ ============ ============
NET INCOME/(LOSS)
Club operations $ 473,355 $ 358,257 $ 1,809,615 $ 1,298,912
Internet websites 36,227 11,757 62,135 48,187
Corporate expenses (419,007) (93,813) (1,173,663) (1,005,196)
------------ ------------ ------------ ------------
$ 90,575 $ 276,201 $ 698,087 $ 341,903
============ ============ ============ ============
Corporate
expenses for the three and nine months ended June 30, 2003 included
the $327,381 gain on the sale of a subsidiary.
About
Rick's Cabaret
Rick's
Cabaret International, Inc. (ricks.com)
owns and operates upscale adult nightclubs serving primarily businessmen
and professionals that offer live adult entertainment, restaurant
and bar operations. The company owns and operates six adult nightclubs
under the name "Rick's Cabaret" and "XTC" in Houston, Austin and
San Antonio, Texas, and Minneapolis, Minnesota; licenses a "Rick's
Cabaret" in New Orleans; owns and operates "Club Onyx" catering
to urban gentlemen, owns an adult-themed club called "Encounters"
that serves the couples or "swingers'" market and a owns a sports
bar called the "Hummers," all three in Houston. No sexual contact
is permitted at any of these locations. Rick's Cabaret also owns
two adult Internet membership Web sites at couplestouch.com
and xxxpassword.com
that contain content acquired from wholesalers, and a network of
nine online auction sites a under the flagship site naughtybids.com.
These highly automated sites provide a sales platform for adult
products and services in an auction format and generate revenues
through transactional service fees. Rick's Cabaret common stock
is traded on the NASDAQ Small Cap market under the symbol RICK.
For further information contact [email protected].
Forward-Looking
Statements:
This
press release may contain forward-looking information within the
meaning of Section 21E of the Securities Exchange Act of 1934 that
involves significant risks and uncertainties, and is subject to
the safe harbors created by this section. Important factors that
could cause actual results for Rick's Cabaret to differ materially
from those indicated in this press release include the risks and
uncertainties as to the future operational and financial results
of our Web sites, the future operational performance of our partners,
the laws governing the operation of adult entertainment businesses,
competitive and economic factors, dependence on key personnel and
the ability to manage operations. Rick's Cabaret has no obligation
to update or revise the forward-looking statements to reflect the
occurrence of future events or circumstances. Please refer you to
the documents Rick's Cabaret files from time to time with the Securities
and Exchange Commission, in particular the most recent quarterly
reports on Form 10-QSB and annual report on Form 10-KSB.
Contact:
Rick's Cabaret International, Inc.
Allan Priaulx, 212-338-0050
[email protected]