Rick's Cabaret International Board Increases Stock Buyback Authorization to $5 Million
September 29 2008 - 9:00AM
Business Wire
The Board of Directors of Rick�s Cabaret International, Inc.
(NASDAQ: RICK), the nation�s premier operator of upscale
gentlemen�s clubs, has authorized the buyback of up to $5 million
of the company�s common stock. In a special meeting the Board
increased the buyback authorization from the previous level of
$500,000. �The Board agreed that our stock is currently undervalued
and that it makes sense for us to buy our own equity at these
levels,� said Eric Langan, President and CEO of Rick�s Cabaret. �I
have always said that when we could buy our stock at a price that
was better than investing in a new acquisition we would do so.
Meanwhile, we are continuing to look at potential acquisitions at
the right price.� Mr. Langan said he saw no reason other than
general market conditions for the current dip in the share price of
the company�s stock, noting that revenues and other fundamentals
remain solid for the company, which operates 19 nightclubs in seven
states. �We will announce our quarterly nightclub sales in early
October and we anticipate reporting record nightclub revenues
again, particularly now that the newest Rick�s Cabaret in Las Vegas
has begun contributing,� Mr. Langan said. The company has completed
five important acquisitions in the past year: Tootsie�s Cabaret in
Miami Gardens, Fl; Crazy Horse II in Philadelphia now operating as
Rick�s Cabaret, two clubs in Dallas that now operate as Rick�s
Cabaret and a Club Onyx; and the former Scores-LV that now operates
as Rick�s Cabaret-Las Vegas. In addition the company purchased the
49% of its Rick�s Cabaret- Austin it did not already own. The
company also launched a Media Division with the acquisition of ED
Publications and its annual convention business. 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 owns the adult Internet membership Web site,
couplestouch.com, and a network of online adult auction sites under
the flagship URL naughtybids.com. Rick�s Cabaret common stock is
traded on NASDAQ under the symbol RICK. For further information
contact ir@ricks.com. 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 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 visit ricks.com.
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