Rick's Cabaret International, Inc. Reports $16.94 Million In Nightclub Sales For Its First Quarter, VS $10.88 Million A Year Ago
HOUSTON - (January 12, 2009) - Rick's Cabaret International,
the premier chain of upscale gentlemen's clubs, said its nightclub sales in its first quarter ending December 31, 2008 were $16,942,864 versus $10,774,293 for the same period a year earlier, a 57 percent improvement.
Sales for clubs it has operated for more than one year were $8,767,191 for the quarter, essentially level with the $8,772,902 reported in the same period a year ago.
"Despite strong sales at Rick's Cabaret in New York City our overall same location sales were flat compared with last year and our margins are being squeezed, so we believe our first quarter earnings will fall below our earlier expectations," said Eric Langan
, President and CEO of the company. "We have begun to make operating changes in the clubs that are not meeting expectations and this is already having an impact. For example, we have converted our Philadelphia location to a Club Onyx and have seen an immediate improvement there. We will re-brand our Rick's Cabaret in Dallas as an all-nude XTC Cabaret later this week and we expect a quick and positive impact. Our primary focus at this time is improving revenues and margins, and if we determine that certain clubs do not have the potential for improvement we will sell them or shut them."
Rick's Cabaret International, Inc. (NASDAQ: RICK) operates upscale adult nightclubs serving primarily businessmen and professionals that offer live adult entertainment, restaurant and bar operations. The company owns, operates or licenses adult nightclubs in New York City, Miami, Philadelphia, Las Vegas, New Orleans, Charlotte, Dallas, Houston, Minneapolis and other cities under the names "Rick's Cabaret," "XTC," "Club Onyx" and "Tootsie's Cabaret". Sexual contact is not permitted at these locations. Rick's Cabaret also owns the adult Internet membership Web site, couplestouch.com; a network of online adult auction sites under the flagship URL naughtybids.com; ED Publications, the national trade magazine and convention for the adult nightclub industry; and Storerotica, the national trade magazine and convention for the adult product and intimate apparel industries. Rick's Cabaret common stock is traded on the NASDAQ Global Market under the symbol RICK. For further information contact [email protected].
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, 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 visit www.ricks.com.
Media Contact: Allan Priaulx, 212-338-0050, [email protected]