• Home
  • Careers
  • Contact
  • Company & Investor Information
  • Press Releases
  • Nightclubs
  • Bombshells

  • SEC Filings
  • Beneficial Ownership of Insiders
  • Corporate Governance
  • Executive Biographies
  • Company Profile
  • Stock Ticker
  • Press Releases
  • Contact RCI
Join Our Newsletter
If you would like to receive all corporate news releases by email, send your request to [email protected]. We’ll make sure you are on the list. You can remove yourself at any time by clicking the "Unsubscribe" button at the bottom of these emails.
Rick's Cabaret Logo

Rick's Cabaret International Reports Fourth Quarter Revenues And Earnings Gain Over Previous Year

Full Fiscal Year Revenues up 29.8 Percent to $75.15 Million; Earnings Impacted by Economy and Las Vegas Marketing Costs

HOUSTON -
(December 17, 2009) - Rick's Cabaret International, Inc. [NASDAQ-GM:RICK], the nation's leading chain of upscale gentlemen's clubs, today reported consolidated total revenues of $18.85 million for the fourth quarter ended Sept. 30, 2009 compared with $16.13 million in the quarter ended Sept. 30, 2008, with net income of $1.79 million compared with $1.44 million last year. Earnings per diluted share for the fourth quarter were 19 cents this year, compared with 14 cents in the same quarter last year.

For the fiscal year ended Sept. 30, 2009 the company had consolidated total revenues of $75.15 million, compared to consolidated total revenues of $57.9 million in fiscal 2008, an increase of 29.8 percent. The increase in total revenues was primarily due to revenues generated both at new and existing clubs, especially from the midtown Manhattan club. Same-club revenues from nightclubs operated by the company for more than 12 months decreased by 4.1 percent.

Net income for the full fiscal year was $5.21 million compared to $7.66 million for the previous year. Net earnings were 55 cents per diluted share, compared with 91 cents in the previous year. The decrease was due principally to the impact of the poor U. S. economy in 2009 and abnormally high marketing expenses at the Rick's Cabaret in Las Vegas club.

"Our results in the fourth quarter indicate we have begun to emerge from the impact of the worst overall economic period the country has seen in more than a decade," said Eric Langan. "Our clubs overall are beginning to improve, we have resumed our acquisition program and we are beginning to see a decline in the unusually high marketing costs we experienced earlier this year at our Las Vegas club."

Mr. Langan predicted that results in the company's January-March 2010 quarter should be strong because of increased business at Tootsie's Cabaret in Miami, which hosts both the 2010 Super Bowl and the Pro Bowl, and at the company's four Dallas/Ft. Worth clubs, because the NBA All-Star Game will be played Feb. 14th at the new Dallas Cowboys Stadium in Arlington.

The company said service revenues were $36.08 million, compared with $28.02 million in 2008, while alcoholic beverage revenues increased to $28.29 million, compared with $21.17 million last year. Sales of food and merchandise increased to $6.17 million from $5.04 million in 2008. The company’s Internet division had revenues of $640,667, compared with $715,759 a year ago while the Media division brought in $1.40 million compared with $801,215 last year.

While most major cost items remained proportionately level with the prior year, the costs for legal and professional services increased to $2.95 million from $1.62 million and advertising and marketing expenses were $8.09 million compared with $2.23 million in 2008. Interest expense was $3.42 million, compared with $2.64 million, primarily due to the increase in debt related to the purchase of new clubs in 2008 and the $7.2 million in new convertible debt issued in August 2009. Long term debt was $37.81 million as of Sept. 30, 2009 compared to $33.56 million as of Sept. 30, 2008, and cash on hand was $12.75 million compared to $5.43 million at the end of the prior year.

Overall operating margins were 17.8 percent for the year ended September 30, 2009 compared to 26.3 percent for the prior year, a decline attributed to the poor U. S. economy in 2009 and operating costs in especially tough markets such as Las Vegas.

RICK'S CABARET INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF INCOME

 

Year Ended September 30,

2009

2008

Revenues:

Sales of alcoholic beverages

  28,298,098

  21,168,798

Sales of food and merchandise

6,174,763

5,043,526

Service revenues

36,083,703

28,024,450

Internet revenues

640,667

715,759

Media revenues

1,404,238

801,215

Other

2,548,127

2,153,979

Total revenues

75,149,596

57,907,727

Operating expenses:

Cost of goods sold

8,773,312

6,539,189

Salaries and wages

16,135,304

12,963,804

Stock-based compensation

96,171

157,080

Other general and administrative:

Taxes and permits

9,172,484

7,021,950

Charge card fees

1,603,044

1,048,903

Rent

3,415,557

2,051,019

Legal and professional

2,947,033

1,619,284

Advertising and marketing

8,091,745

2,231,005

Depreciation and amortization

3,205,205

2,222,960

Insurance

1,084,729

820,088

Utilities

1,594,600

1,153,068

Other

5,618,430

4,856,213

Total operating expenses

61,737,614

42,684,563

Income from operations

13,411,982

15,223,164

Other income (expense):

Interest income

16,384

134,156

Interest expense

(3,416,911)

(2,640,987)

Gain on change in fair value of derivative instruments

145,374

-

Minority interests

(294,000)

(147,000)

Gain on sale of property and other

180,506

(73,896)

Income from continuing operations before income taxes

10,043,335

12,495,437

Income taxes

3,414,734

3,873,585

Income from continuing operations

6,628,601

8,621,852

Loss from discontinued operations, net of income taxes of $718,663 and $433,607

(1,420,504)

(961,185)

Net income

  5,208,097

     7,660,667

Basic earnings (loss) per share:

Income from continuing operations

           0.72

              1.09

Loss from discontinued operations

(0.15)

(0.12)

Net income

           0.56

              0.97

Diluted earnings (loss) per share:

Income from continuing operations

           0.70

              1.02

Loss from discontinued operations

(0.15)

(0.11)

Net income

           0.55

              0.91

Weighted average number of common shares outstanding

Basic

9,265,784

7,931,121

Diluted

9,427,397

8,413,183

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]

© RCI Internet Services, Inc., All Rights Reserved. Rick’s Cabaret, Club Onyx, Silver City, XTC Cabaret, Foxy’s Cabaret, Hoops Cabaret, The Seville Club and Bombshells Restaurant and Bar are registered trademark of RCI Hospitality Holdings, Inc.
Webmaster   |   Contact