Rick's Cabaret International, Inc., Completes Aquisition of Midtown Manhattan Gentlemen's Club That Will Become It's Flagship Location
HOUSTON--(January 19, 2005)--Rick's Cabaret International
has completed (Jan. 18, 2005) the acquisition of the Paradise Club
in Midtown Manhattan (50 West 33rd Street). When renovations
are completed, Rick's Cabaret-NYC will become one of the
premiere gentlemen's clubs in New York City and will be the company's
extensive remodeling of the three-level site near Penn Station and
Madison Square Garden, Rick's Cabaret-NYC will open with a gala
launch in the summer of 2005. Rick's currently operates or licenses
clubs in Texas, Minnesota and Louisiana.
CEO of Houston-based Rick's Cabaret, said: "Rick's Cabaret
NYC will be one of the finest venues in New York for adult entertainment,
and we expect to differentiate ourselves in this exciting market
by a combination of the most beautiful entertainers, an unprecedented
levelof friendly customer service, fine food, and a luxurious atmosphere
unique to the city.
said the company expects to begin work next week on a $2 million
remodeling project. The club will utilize the maximum allowable
10,000 square feet, with an additional 4,000 square feet in the
building to be used for office space. The company is in the process
of finalizing building permits and completing other details typical
of transactions of this type.
Cabaret NYC will be without peer as a gentlemen's club in New York,"
Mr. Langan said. "We're known for our beautiful and gracious
entertainers and I assure you that customers will be amazed at the
welcome they get at the New York Rick's Cabaret. We will have full
restaurant service until 2 a.m., making if one of the few places
in the city where you can get a great meal after midnight."
Cabaret paid a total of $7.625 million for the assets and stock
of the former Paradise Club, which had operated on the site for
more than a decade. The transaction consisted of $2.5 million in
cash and $5.125 million in a promissory note bearing simple interest
at the rate of 4.0% per annum, part of which is convertible to restricted
shares of Rick's Cabaret common stock at prices ranging from $4.00
to $7.50 per share (Rick's Cabaret shares closed at $4.14 on the
NASDAQ SmallCap exchange on January 18).
Cabaret reported income from operations of $1,065,569 for its 2004
fiscal year ending September 30, 2004, nearly three times the $357,947
reported in the previous year. The company reported revenue of $15,959,684
for 2004 compared with $15,059,569 and net income of $775,253 compared
with $438,294 in 2003. Earnings were 21 cents per share compared
to 12 cents per share in 2003.
its launch in the mid-1980s, Rick's Cabaret's upscale nightclubs
have enjoyed a reputation for offering high quality entertainment
featuring beautiful women and fine restaurant service in Houston,
Minneapolis, San Antonio and Austin. Anna Nicole Smith met
her wealthy husband while dancing at a Rick's Cabaret and 13 performers
from the clubs have become Penthouse Pets (three have
been named "Pet of the Year") while three have become
Playboy Playmates. The company went public in 1995
and was the first gentlemen's club to be listed on a major U.S.
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, operates or licenses ten adult
nightclubs in New York City, New Orleans, Houston, Minneapolis and
other cities under the names "Rick's Cabaret," "XTC,"
"Club Onyx" and "Hummers." No sexual contact
is permitted at any of these locations. Rick's Cabaret also owns
an adult Internet membership Web site, www.couplestouch.com,
and a network of nine online auction sites under the flagship URL
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]