Rick's Cabaret International, Inc. Completes Acquisition Of A Fourth Club In Dallas-Ft. Worth Market
HOUSTON- (September 30, 2009) - Rick's Cabaret International,
Inc. [NASDAQ-GM:RICK], the premier publicly traded chain of upscale gentlemen's clubs, today completed the acquisition of Cabaret North in Ft. Worth, paying $2.3 million in cash. The company also acquired an option to buy the property occupied by the club within 19 months for approximately $2.4 million.
Eric Langan, President and CEO of Rick's Cabaret, said company's two-story, 17,000 square foot club should add revenues of $2.5 to $3 million annually and EBITDA (earnings before income tax, depreciation and amortization) of between $800,000 and $1 million.
The acquisition brings to four the number of Rick's Cabaret clubs in the Dallas-Ft. Worth market, where the company already operates Rick’s Cabaret/Ft. Worth plus XTC Cabaret and Club Onyx in Dallas.
"The acquisition of Cabaret North is In line with our announced plan to use our strong cash position to resume an active program of buying additional clubs. We have other targets in mind and will announce deals as they are completed," Mr. Langan said.
The two-story Cabaret North was built in mid-2008 and is centrally located at 5316 Superior Parkway near the intersection of I-820 and Routes 287/81, and close to Ft.Worth Meacham Airport and the Texas Motor Speedway NASCAR race track.
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].
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]