Rick’s Cabaret International, Inc. Reports Record Revenues in Its Fourth Quarter Driven by New Acquisitions & Positive Same...
October 09 2008 - 9:00AM
Business Wire
Rick�s Cabaret International, Inc. (NASDAQ: RICK), the premier
operator of upscale gentlemen�s clubs, had record nightclub
revenues in its fourth quarter ending September 30, 2008 of $16.6
million, an increase of 89 percent over the previous year total of
just under $8.8 million. The company also announced a modest gain
in comparable same-club-same-period sales compared with the
previous year, driven by a strong performance of the Rick�s
Cabaret-New York City club in Midtown Manhattan. The previous
quarterly record for nightclub revenues of $15.89 million was
reported in the third quarter of this year. The company said sales
at its 13 clubs open more than one year were $8,826,436, compared
with $8,789,258, a .43 percent increase. Rick�s Cabaret President
and CEO Eric Langan said the comparable sales results were hurt by
the impact of Hurricane Ike, which shut the company�s five clubs in
the Houston market for as much as a week causing an estimated loss
of approximately $160,000 in revenues. Without this loss in
revenues�the company estimates comparable club growth would have
been about 2.2 percent. �Based on the nightclub revenues and
additional revenues from our media and internet divisions we expect
to come in at around $60 million in revenues for the year, which we
projected in�the guidance given in our last conference call,� Mr.
Langan said.�The company will report its full-year results in the
latter part of December, as usual, he said. Mr. Langan also
reaffirmed the company�s capability, if it became necessary, to
repurchase the outstanding stock put options issued in connection
with recent acquisitions. �We estimate that approximately $3.8
million of our cash would be required in fiscal 2009 to redeem
171,000 shares that could be put; in fiscal 2010 it would require
only about $5.5 million to fully redeem all 244,000 shares that
could be put under the terms of the options. This assumes a full
purchase of the puts with no stock to be sold into the market. We
are confident that we will be able to redeem all of the existing
put options with our existing and anticipated free cash flow. We
currently have approximately $4 million in cash on hand and are
generating significant new cash each month. It is important to
remember that in return for these options we got solid assets.�
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
www.ricks.com.
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