Rick's Cabaret International, Inc., Expects to Close January 18th on Acquisition of Midtown Manhattan Club
HOUSTON--(January 14, 2005)--Rick's Cabaret International
expects to close January 18, 2005 on the acquisition of a nightclub
in Midtown Manhattan that will become the flagship establishment
of the company that now has gentlemen's clubs in Texas, Louisiana
and Minnesota. The parties have agreed on an extension to January
25th, but the company presently expects to close on January 18th.
Rick's Cabaret is acquiring the former Paradise Club at 50 West
33rd Street near Madison Square Garden, Penn Station and the Empire
State Building. The total purchase price is $7.6 million, with an
additional $1.4 million set aside for renovations to create a posh,
upscale environment. The club is expected to open formally during
the summer of 2005.
Rick's Cabaret announced full year earnings last week of 21 cents
per share versus 12 cents in the previous year with net income of
$775,253 compared with $438,294, on 2005 revenues of just under
Rick's Cabaret International, Inc. www.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 seven adult nightclubs under the name
"Rick's Cabaret" and "XTC" in Houston, Austin
and San Antonio, Texas, and Minneapolis, Minnesota, licenses Rick's
Cabaret in New Orleans, and owns a sports bar called the "Hummers"
in Houston. No sexual contact is permitted at any of these locations.
Rick's Cabaret also owns an adult Internet membership Web site,
and a network of nine online auction sites under the flagship URL
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].
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, conditions relevant to real estate transactions,
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 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 for further information: Allan Priaulx, 212-338-0050, [email protected]