Rick's Cabaret International, Inc. Believes Its Growth Through Acquisition Strategy For 2008 Will Add More Than $40 Million In Revenues
HOUSTON-(January 16, 2008)-Rick's Cabaret International, Inc.
operator of upscale gentlemen's clubs, said today it believes its ongoing
growth-through-acquisition strategy in 2008 will add in excess of $40
million in new revenues.
, President and CEO of Rick's Cabaret, said
the company intends to complete several acquisitions before the end of
the company's fiscal year on September 30, 2008, but because of non-disclosure
clauses it cannot discuss details of any of the transactions until they
"Assuming completion of acquisitions that are now covered by letters
of intent or are in review by our legal counsel, we believe we will begin
fiscal 2009 with a revenue run rate of approximately $100 million and
our earnings will be approximately $2.00 per share," Mr. Langan said.
"We also believe we will make further acquisitions in 2009 that will
He said the new outlook assumes the company will have approximately 10
million shares outstanding by the end of 2008. He emphasized that these
projections are subject to change depending upon several factors, including
the number of new shares actually issued, the share price at the time
transactions are finalized, and the mix of debt and equity financing to
fund the acquisitions.
The planned acquisitions are subject to the completion of due diligence,
execution of definitive documents, securing appropriate financing, plus
the transfer of all necessary permits and other authorizations.
Rick's Cabaret currently owns and operates 15 adult nightclubs in Texas,
Minnesota, New York, North Carolina and Florida.
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.
for further information: Allan Priaulx, 212-338-0050, [email protected]