Rick's Cabaret International, Inc. Reports Third Quarter Revenue Of $19.93 Million
HOUSTON - (August 16, 2010) – Rick's Cabaret International, Inc. [NASDAQ-GM:RICK], the nation's leading group of upscale gentlemen's clubs, had revenues of $19.93 million in its third quarter ending June 30, 2010. After one-time non-cash write-offs the company had net income of $856,701 and earnings per share of nine cents for the quarter.
The 2010 results compared with revenues for the same quarter in 2009 of $21.03 million, net income of $1.78 million and earnings per share of nineteen cents.
Eric Langan, President and CEO of Rick's Cabaret, said: "Several factors contributed to the net income result, including a one-time $275,000 write off taken in connection with an early loan redemption; a loss on change in fair value of derivative instruments of approximately $400,000; high legal expenses in connection with a New York City law suit; and an increase in income taxes, which rose to 41.5 percent from 35.2 percent of pretax income, because of the change in the fair value of derivative instruments that is not deductible for tax purposes."
He added: "I think it is important to focus on the fact that we generated cash from operations of $12.2 million in the first nine months of this fiscal year. Even after three acquisitions in the past twelve months we have about $18.4 million in cash available to continue our expansion program or for other uses."
Despite a $2.5 million drop in revenues at the Rick's Cabaret in Las Vegas, that club cut its before tax loss to about $200,000 for the quarter compared to a loss of approximately $300,000 in the 2009 quarter, due to lower marketing costs. The Las Vegas sales decline was the largest factor in an overall 13.5 percent decline in same store sales for the quarter. Overall sales benefited from contributions by new clubs in Fort Worth and Austin.
Mr. Langan will discuss the results in a conference call today at 4:30 p.m. EDT that 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 participant dial-in number is 877-407-8033
(International 201-689-8033). The toll free replay numbers are: domestic 877-660-6853, international 201-612-7415. Replay passcodes required for playback are: Account #: 286 and Conference ID #: 354976.
The company’s Form 10-Q as filed with the SEC is now available on the Rick’s Cabaret investor website at www.ricksinvestor.com and the company's main website, www.ricks.com.
About Rick's Cabaret:
Rick's Cabaret International, Inc. (NASDAQ: RICK) is home to upscale adult nightclubs serving primarily businessmen and professionals that offer live entertainment, dining and bar operations. Nightclubs in New York City, Miami, Philadelphia, New Orleans, Charlotte, Dallas, Houston, Minneapolis and other cities operate 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 Publications, and owns the adult internet membership website www.couplestouch.com as well as a network of online adult auction sites under the flagship URL www.naughtybids.com. Rick's Cabaret common stock is traded on NASDAQ 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.
Contact: Allan Priaulx, 212-338-0050, [email protected]