Rick's Cabaret International, Inc. reports $95.2 million revenues for 2012, with net income of $7.6 million
HOUSTON – (December 14, 2012) –
International, Inc. (NASDAQ:RICK), the nation’s premier publicly traded
group of gentlemen’s clubs, reported revenues of $95.2 million for its fiscal
year ended September 30, 2012, a 14 percent increase over the $83.5 million in
“In the just concluded year we completed a major acquisition and resolved
several lawsuits. We are now fully focused on achieving our goal of 20-30
percent annual growth,” said Eric Langan, President and CEO of Rick’s
Cabaret International, Inc., which now operates 35 clubs nationwide.
“We have sharpened this growth strategy with a number of new projects, including
the Bombshells “breastaurant” in Dallas and the Vee Lounge in Ft. Worth, both
which will open in January 2013, as well Ricky Bobby's Sports Saloon slated to
open in April. Before March we expect to open the Los Angeles club that we are
doing as a joint venture with another multi-club operator, our second New York
City location will open before year end, and several clubs are currently in our
acquisition pipeline." he added
The company will hold a conference call to discuss today’s results at 4:30 pm
ET. Participant dial in number is 877-407-8033 (international, 201-689-8033) or
online at www.ricksinvestor.com.
Replays are available at 877-660-6853.
Some highlights from the company’s Form 10K filed today with the Securities &
Net income per non-GAAP accounting was $10.5 million
compared with GAAP income of $7.6 million and non-GAAP fully diluted income
per share was $1.08 compared with GAAP EPS of 78 cents. The non-GAAP figures
exclude amortization of intangibles, sale of assets and debt settlement,
change in value of derivatives, stock-based compensation, litigation and
one-time legal settlements, income tax expense, acquisitions costs, loss
from discontinued operations net of income tax, and add-back of non-GAAP
provision for income taxes (see explanation of non-GAAP financial measures
The growth in revenues was achieved through the
contribution of $4.3 million by nightclubs acquired in 2012, plus $4.0
million from clubs purchased in 2011, and a 4.2 percent increase in revenues
at existing clubs, especially the flagship midtown New York City Rick’s
Cash flow from operations was $18.4 million.
Expenses for the year that kept earnings lower than
forecast included legal and professional expenses of $5.9 million, compared
with $2.3 million in 2011. The 2012 costs included the payment of about $2.2
million to settle three law suits.
Salaries and wages remained the same at 21.9 percent of
total expenses, or $20.9 million in 2012 compared with $18.3 million the
Interest expense was $4.0 million, about the same as the
$3.9 million for 2011 as the company added more debt from acquisitions while
paying off existing debt and amortizing loans. As of September 30, 2012, the
balance of long-term debt was $63.5 million compared to $35.6 million a year
earlier. The increase is principally attributable to adding $30 million in
debt with the 2012 acquisitions.
For the company’s fourth quarter ended Sept. 30th, revenues
were $23.9 million compared with $21.5 million in 2011; net income was $1.5
million compared with $2.0 million last year; earnings per share were 15 cents
compared with 20 cents in the prior year.
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, Charlotte, Dallas/Ft. Worth,
Houston, Minneapolis, Indianapolis and other cities as "Rick's Cabaret," "XTC,"
“Club Onyx” and “Tootsie’s Cabaret” and other brand names. Sexual contact is not
permitted at any locations. Rick’s Cabaret also operates a media division, ED
Publications. Rick’s Cabaret common stock is traded on NASDAQ under the symbol
RICK. For further information contact [email protected]
or visit www.ricksinvestor.com.
Explanation of non-GAAP Financial Measures: In addition to our financial
information presented in accordance with U.S. GAAP, management uses certain
“non-GAAP financial measures” within the meaning of the SEC Regulation G, to
clarify and enhance understanding of past performance and prospects for the
future. Generally, a non-GAAP financial measure is a numerical measure of a
company’s operating performance, financial position or cash flows that excludes
or includes amounts that are included in or excluded from the most directly
comparable measure calculated and presented in accordance with GAAP. We monitor
non-GAAP financial measures because it describes the operating performance of
the company and helps management and investors gauge our ability to generate
cash flow, excluding some recurring charges that are included in the most
directly comparable measures calculated and presented in accordance with GAAP.
More complete information relative to these non-GAAP financial measures can be
found in the Company’s Form 10K, filed with the SEC and available at
Forward-looking Statements: This press release may contain
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 press release, 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.ricksinvestor.com.
Contact: Allan Priaulx, 212-338-0050,