Rick's Cabaret International, Inc. Reports Record Third Quarter Revenues Exceeding $20 Million, Up 31% From Previous Year; Net Income At $1.78 Million
HOUSTON- (August 12, 2009) -
Rick's Cabaret International,
Inc. [NASDAQ-GM:RICK], the leading chain of upscale gentlemen's clubs nationwide, today reported record consolidated revenues of $20.9 million for its third quarter ended June 30, 2009, a 31 percent increase over the $15.9 million reported in the same period last year. The previous revenue high was $18.36 million in the second quarter of fiscal 2009.
Net after tax income was $1.78 million, compared with $1.83 million in the same quarter a year ago, a drop primarily attributed to higher marketing costs in connection with the nightclub in Las Vegas. Fully diluted income per share was 19 cents, compared with 21 cents a year ago. Compared with the results of the previous quarter ended March 31, 2009, after tax income was more than double the $839,471 reported for the second quarter and fully diluted earnings per share were also more than double the nine cents reported in the last quarter.
"We are pleased with the third quarter results, which clearly show a continuing improvement in both revenue and income," said Eric Langan, President and CEO of the company, who will discuss the quarter and outlook for the future in a webcast and conference call at 4:30 p.m., ET, August 12th. The call is being webcast by
Vcall and can be accessed at the Rick's Cabaret website,
www.ricks.com or
www.InvestorCalendar.com. The toll free live participant dial-in number is
877-407-8033; international callers should dial
201-689-8033. The toll free replay number is
877-660-6853 (international callers dial
201-612-7415) and the call will be available until when August 19, 2009. Please enter the number
286 when asked for the account, and then conference ID number
329965.
Revenues at nightclubs open for more than a year were $14.9 million, a decline of less than one percent compared with the same period a year earlier, and a significant improvement from the 6.9 percent decline reported for the second quarter. Media division revenues increased to $238,064 from $182,452 in the same quarter a year ago.
The company reported a significant improvement in operations for the quarter at Rick’s Cabaret Las Vegas, which trimmed losses to approximately $300,000 before income taxes. Meanwhile expense reductions and more aggressive marketing campaign at this location are in place, although we anticipate the club will continue to lose money until the Las Vegas economy improves.
RICK'S CABARET INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
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FOR THE THREE MONTHS
ENDED JUNE 30,
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FOR THE NINE MONTHS
ENDED JUNE 30,
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2009
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2008
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2009
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2008
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(UNAUDITED)
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(UNAUDITED)
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Revenues: |
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| Sales of alcoholic
beverages
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8,036,630
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5,893,332
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21,559,360
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|
15,453,834
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| Sales of food and
merchandise
|
1,653,317
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1,335,247
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4,633,122
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|
3,670,545
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| Service revenues
|
10,137,435
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|
7,722,864
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26,997,164
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20,321,251
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| Internet revenues
|
151,989
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|
194,105
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|
493,384
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|
537,606
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| Media revenues
|
238,064
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|
182,452
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|
707,030
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182,452
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| Other
|
717,398
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|
612,006
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1,911,553
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1,610,075
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Total revenues |
20,934,833
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15,940,006
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56,301,613
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41,775,763
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Operating
expenses: |
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Cost of goods sold |
2,276,895
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1,817,417
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6,701,022
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4,641,398
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Salaries and wages |
4,061,735
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3,694,824
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12,209,897
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9,269,903
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Stock compensation |
20,044
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39,270
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60,132
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117,810
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Other general and administrative: |
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Taxes and permits |
2,407,100
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1,937,975
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7,043,013
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5,016,950
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Charge card fees |
421,524
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291,683
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1,203,164
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739,671
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Rent |
853,879
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461,254
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2,561,064
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1,090,894
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Legal and professional |
567,790
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540,910
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1,878,540
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1,419,008
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Advertising and marketing |
3,365,079
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607,414
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6,178,445
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1,355,438
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Insurance |
330,496
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158,502
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833,881
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508,802
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Utilities |
381,465
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349,823
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1,177,504
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806,809
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Depreciation and amortization |
808,823
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584,227
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2,424,480
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1,606,001
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| Other
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1,471,905
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1,439,224
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4,158,183
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3,495,665
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Total operating expenses |
16,966,735
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11,922,523
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46,429,325
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30,068,349
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Operating income |
3,968,098
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4,017,483
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9,872,288
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11,707,414
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Other income (expense): |
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Interest income |
1,113
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22,083
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8,507
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91,555
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| Interest expense
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(811,686)
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(682,788)
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(2,447,989)
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(1,785,344)
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| Loss on change in fair
value of derivative instruments
|
(121,904)
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-
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(121,904)
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-
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| Minority interests
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(73,500)
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(73,500)
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(220,500)
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|
104,412
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Income from continuing
operations before income taxes |
2,962,121
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3,283,278
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7,090,402
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10,118,037
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Income
taxes |
1,067,423
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1,247,323
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2,567,615
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3,179,722
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Income
from continuing operations |
1,894,698
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2,035,955
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4,522,787
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|
6,938,315
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Loss
from discontinued operations, net of income taxes |
(110,205)
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(206,751)
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(1,107,991)
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(720,459)
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Net
income |
1,784,493
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1,829,204
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3,414,796
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6,217,856
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Basic
earnings per share: |
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Income from continuing operations |
0.21
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0.25
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0.49
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0.92
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| Loss from discontinued operations
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(0.01)
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(0.03)
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(0.12)
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(0.10)
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| Net income
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0.19
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|
0.22
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0.37
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0.83
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| Diluted earnings per share:
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Income from continuing operations |
0.20
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0.23
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|
0.48
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|
0.86
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| Loss from discontinued operations
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(0.01)
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(0.02)
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(0.12)
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|
(0.09)
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| Net income
|
0.19
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|
0.21
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|
0.36
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|
0.77
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| Weighted average number of common shares outstanding:
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| Basic
|
9,185,758
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8,240,914
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9,288,536
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7,536,104
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| Diluted
|
9,409,562
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8,860,699
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9,499,015
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|
8,238,094
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About Rick's
Cabaret:
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 operates a media division, ED Publication, and owns the adult Internet membership Web site, couplestouch.com as well as a network of online adult auction sites under the flagship URL naughtybids.com. Rick's Cabaret common stock is traded on the NASDAQ Global Market under the symbol RICK. For further information contact [email protected].
Forward-Looking Statements:
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 cities where it operates, the success or lack thereof in launching and building the company’s businesses, 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]