Rick's Cabaret Plans To Buy Upscale Gentlemen's Club in Dallas-Fort Worth Metroplex
HOUSTON -(February 7, 2007)- Rick's Cabaret International,
the publicly traded chain of gentlemen’s clubs, has signed
a letter of intent to purchase an adult nightclub in the Dallas-Ft.
that the company believes will add in excess
of $4 million in annual revenue and more than $1 million in EBITDA.
The name and location of the fully licensed venue and its seller
are being kept confidential until closer to the scheduled closing
of the transaction, which will take place on or before April 30,
2007, subject to execution of a definitive agreement and contingent
upon normal due diligence and closing activities associated with
purchases of this type, including financing. Rick’s Cabaret
will pay $4.9 million for the club.
Rick’s Cabaret President and CEO Eric Langan
said the purchase is part of the company’s strategy to grow
revenue and profit both organically and through acquisition of facilities
that are already in operation and can be quickly accretive to income.
The company acquired four venues in calendar 2006.
"The club we are acquiring is an excellent facility in a premiere
location in the fast-growing Dallas-Ft. Worth area and has excellent
prospects for growth," Mr. Langan said. "It is exactly
the kind of acquisition we have targeted in our strategic plan and
we are continuing to examine other opportunities that are consistent
with this program."
About Rick's Cabaret
Rick's Cabaret International, Inc. (NASDAQ: RICK, www.ricks.com)
operates upscale adult nightclubs serving primarily businessmen
and professionals that offer live adult entertainment, restaurant
and bar operations. The company owns and operates or licenses adult
nightclubs in New York City, New Orleans, Charlotte, Houston, Minneapolis
and other cities under the names "Rick's Cabaret," "XTC"
and "Club Onyx." No sexual contact is permitted at any
of these locations. Rick's Cabaret also owns the adult Internet
membership Web site, www.couplestouch.com,
and a network of online adult auction sites under the flagship URL
Cabaret common stock is traded on NASDAQ under the symbol RICK.
For further information contact [email protected]
or visit www.ricks.com.
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
document, including the risks and uncertainties associated with
operating and managing an adult business, the business climates
in New York City and elsewhere, the success or lack thereof in launching
and building the company's businesses in New York City and elsewhere,
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 go to www.ricks.com.