Rick's Cabaret Continues Expansion with Purchase of an Adult Night Club in North Houston that will be Re-Launched as its Fifth XTC Cabaret
Houston -- (March 5, 2004)
-- Rick's Cabaret International, Inc. [NASDAQ:
leading publicly traded company operating adult entertainment clubs,
said today it has purchased a 7,000 square foot gentlemen's club in
North Houston and will re-launch it as its fifth XTC Cabaret club.
The new venue (at I-45 at Aldine-Bender) will become the third XTC
Cabaret to be operated by Rick's in Houston. Two other XTC clubs,
which feature all-nude dancing, are located in Austin and San Antonio,
Texas. The Rick's network includes upscale Rick's Cabaret gentlemen's
clubs in Texas and Minnesota plus a Hummers sports bar and an Encounters
club for couples in Houston.
"We expect the new XTC Club will be accretive to earnings by the next
quarter," according to Eric Langan, CEO of Rick's Cabaret. "We will
realize significant economies of scale in advertising, marketing and
purchasing. The new club will be upgraded to bring it to the high
standards our customers are accustomed to. This purchase is part of
a planned expansion into locations where the efficient business model
we have developed can contribute significantly to our company's growth."
As part of the purchase of the former Chances Cabaret club from private
owners, Rick's Cabaret is entering into a new five-year lease with
an option for five additional years.
"I believe this newest location is a good decision for Rick's Cabaret,"
Mr. Langan said. "There is little competition in this category in
North Houston market and the cross promotion benefits that we will
be able to do with our Rick's Cabaret and XTC locations in Houston
will generate additional marketing efficiencies. We continue to be
the price and quality leader in the all-nude dancing segment in Houston,
where we are clearly the premier chain of adult entertainment night
About Rick's Cabaret
Rick's Cabaret International, Inc. (www.ricks.com)
owns and operates upscale adult nightclubs serving primarily businessmen
and professionals that offer live adult entertainment, restaurant
and bar operations. The company owns and operates seven adult nightclubs
under the name "Rick's Cabaret" and "XTC Cabaret"
in Houston, Austin and San Antonio, Texas, and Minneapolis, Minnesota,
licenses Rick's Cabaret in New Orleans, and owns an adult-themed club
called "Encounters" that serves the couples or "swingers'"
market and a sports bar called the "Hummers," both in Houston.
No sexual contact is permitted at any of these locations. Rick's Cabaret
also owns two adult Internet membership Web sites at www.couplestouch.com
that contain content acquired from wholesalers, and a network of nine
online auction sites a under the flagship site www.naughtybids.com.
These highly automated sites provide a sales platform for adult products
and services in an auction format and generate revenues through transactional
service fees. Rick's Cabaret common stock is traded on the NASDAQ
Small Cap market under the symbol RICK.
For further information contact [email protected].
This press release may contain forward-looking information within
the meaning of Section 21E of the Securities Exchange Act of 1934
that involves significant risks and uncertainties, and is subject
to the safe harbors created by this section. Important factors that
could cause actual results for Rick's Cabaret to differ materially
from those indicated in this press release include the risks and uncertainties
as to the future operational and financial results of our Web sites,
the future operational performance of our partners, the laws governing
the operation of adult entertainment businesses, competitive and economic
factors, dependence on key personnel and the ability to manage operations.
Rick's Cabaret has no obligation to update or revise the forward-looking
statements to reflect the occurrence of future events or circumstances.
Please refer you to the documents Rick's Cabaret files from time to
time with the Securities and Exchange Commission, in particular the
most recent quarterly reports on Form 10-QSB and annual report on