Rick's Cabaret Completes Acquisition Of An Upscale Gentlemen's Club In Ft. Worth, Texas
HOUSTON -(April 24, 2007)- Rick's Cabaret International,
publicly traded chain of gentlemen's clubs, said today it has completed
the acquisition of New Orleans Nights, an upscale
nightclub in the heart of Ft. Worth, Texas, and that its subsidiary
RCI Holdings, Inc. has purchased the building and
surrounding land (at 7101 Calmont Avenue). The club will be
converted to a Rick's Cabaret.
The company paid $4.9 million in cash for the 12,000 square foot
club and $2.5 million for the building and land, of which the seller
is financing $2.4 million. The transaction brings to 14 the number
of clubs operated by the company under the brand names Rick's
Cabaret, Club Onyx and XTC Cabaret.
Eric Langan, President and CEO of Rick's Cabaret,
said the company believes the newest Rick's Cabaret will add in
excess of $4 million in annual revenue and more than $1 million
in EBITDA. The acquisition is part of the company's strategy
to grow revenue and profit through acquisition of facilities that
are already in operation and can be quickly accretive to income.
The Ft. Worth club, located on heavily traveled Calmont Avenue near
the confluence of I-30 and Highway 183, has been a popular nightspot
in Ft. Worth for more than 15 years. "The club has a
relaxed and comfortable atmosphere that will be consistent with
the Rick's Cabaret format of great entertainment, terrific food
and beautiful entertainers," Mr. Langan said. "We plan
to remodel the second floor of the club very soon and turn it into
a VIP area that will have no equal in the area."
Mr. Langan added, "We were delighted that the opportunity arose
to acquire the land and building as well as the club. This increases
the overall value of the asset. We are also pleased to be in Ft.
Worth, which in recent years has become a premier business and cultural
About Rick's Cabaret
Rick's Cabaret International, Inc. (NASDAQ: RICK, www.ricks.com)
operates upscale adult nightclubs serving primarily businessmen
and professionals that offer live adult entertainment, restaurant
and bar operations. The company owns and operates or licenses adult
nightclubs in New York City, New Orleans, Charlotte, Houston, Minneapolis
and other cities under the names "Rick's Cabaret," "XTC"
and "Club Onyx." No sexual contact is permitted at any
of these locations. Rick's Cabaret also owns the adult Internet
membership Web site, www.couplestouch.com,
and a network of online adult auction sites under the flagship URL
Cabaret common stock is traded on NASDAQ under the symbol RICK.
For further information contact [email protected]
or visit www.ricks.com.
This document contains forward-looking statements that involve a
number of risks and uncertainties that could cause the company's
actual results to differ materially from those indicated in this
document, including: the risks and uncertainties associated
with operating and managing an adult business; the business
climates in New York City and elsewhere; the success or lack thereof
in launching and building the company's businesses in New York City
and elsewhere; the Company's ability to identify and secure suitable
locations for new nightclubs on acceptable terms, open the anticipated
number of new nightclubs on time and within budget; achieve anticipated
rates of same-store sales; hire and train additional nightclub personnel
and integrate new nightclubs into its operations; unexpected increases
in costs of sales or employee, pre-opening or other expenses; the
economic conditions in the new markets into which the Company expands
and possible uncertainties in the customer base in these areas;
fluctuations in quarterly operating results; the impact of any negative
publicity or public attitudes; competitive pressure from other national
and regional nightclub chains; risks and uncertainties related to
the operational and financial results of our Web sites, conditions
relevant to real estate transactions, and numerous other factors
such as laws governing the operation of adult entertainment businesses,
competition and dependence on key personnel. Rick's has no obligation
to update or revise the forward-looking statements to reflect the
occurrence of future events or circumstances. For further information
go to www.ricks.com.