Rick’s Cabaret International, Inc. (NASDAQ: RICK),
the nation’s leading chain of upscale gentlemen’s clubs, today
reported consolidated total revenues of $18.85 million for the
fourth quarter ended Sept. 30, 2009 compared with $16.13 million in
the quarter ended Sept. 30, 2008, with net income of $1.79 million
compared with $1.44 million last year. Earnings per diluted share
for the fourth quarter were 19 cents this year, compared with 14
cents in the same quarter last year.
For the fiscal year ended Sept. 30, 2009 the company had
consolidated total revenues of $75.15 million, compared to
consolidated total revenues of $57.9 million in fiscal 2008, an
increase of 29.8 percent. The increase in total revenues was
primarily due to revenues generated both at new and existing clubs,
especially from the midtown Manhattan club. Same-club revenues from
nightclubs operated by the company for more than 12 months
decreased by 4.1 percent.
Net income for the full fiscal year was $5.21 million compared
to $7.66 million for the previous year. Net earnings were 55 cents
per diluted share, compared with 91 cents in the previous year. The
decrease was due principally to the impact of the poor U. S.
economy in 2009 and abnormally high marketing expenses at the
Rick’s Cabaret in Las Vegas club.
“Our results in the fourth quarter indicate we have begun to
emerge from the impact of the worst overall economic period the
country has seen in more than a decade,” said Eric Langan. “Our
clubs overall are beginning to improve, we have resumed our
acquisition program and we are beginning to see a decline in the
unusually high marketing costs we experienced earlier this year at
our Las Vegas club.”
Mr. Langan predicted that results in the company’s January-March
2010 quarter should be strong because of increased business at
Tootsie’s Cabaret in Miami, which hosts both the 2010 Super Bowl
and the Pro Bowl, and at the company’s four Dallas/Ft. Worth clubs,
because the NBA All-Star Game will be played Feb. 14th at the new
Dallas Cowboys Stadium in Arlington.
The company said service revenues were $36.08 million, compared
with $28.02 million in 2008, while alcoholic beverage revenues
increased to $28.29 million, compared with $21.17 million last
year. Sales of food and merchandise increased to $6.17 million from
$5.04 million in 2008. The company’s Internet division had revenues
of $640,667, compared with $715,759 a year ago while the Media
division brought in $1.40 million compared with $801,215 last
year.
While most major cost items remained proportionately level with
the prior year, the costs for legal and professional services
increased to $2.95 million from $1.62 million and advertising and
marketing expenses were $8.09 million compared with $2.23 million
in 2008. Interest expense was $3.42 million, compared with $2.64
million, primarily due to the increase in debt related to the
purchase of new clubs in 2008 and the $7.2 million in new
convertible debt issued in August 2009. Long term debt was $37.81
million as of Sept. 30, 2009 compared to $33.56 million as of Sept.
30, 2008, and cash on hand was $12.75 million compared to $5.43
million at the end of the prior year.
Overall operating margins were 17.8 percent for the year ended
September 30, 2009 compared to 26.3 percent for the prior year, a
decline attributed to the poor U. S. economy in 2009 and operating
costs in especially tough markets such as Las Vegas.
RICK'S CABARET INTERNATIONAL, INC. CONSOLIDATED
STATEMENTS OF INCOME Year Ended September 30,
2009 2008 Revenues: Sales of alcoholic
beverages $ 28,298,098 $ 21,168,798 Sales of food and
merchandise 6,174,763 5,043,526 Service revenues 36,083,703
28,024,450 Internet revenues 640,667 715,759 Media revenues
1,404,238 801,215 Other 2,548,127 2,153,979 Total revenues
75,149,596 57,907,727
Operating expenses: Cost of
goods sold 8,773,312 6,539,189 Salaries and wages 16,135,304
12,963,804 Stock-based compensation 96,171 157,080 Other general
and administrative: Taxes and permits 9,172,484 7,021,950 Charge
card fees 1,603,044 1,048,903 Rent 3,415,557 2,051,019 Legal and
professional 2,947,033 1,619,284 Advertising and marketing
8,091,745 2,231,005 Depreciation and amortization 3,205,205
2,222,960 Insurance 1,084,729 820,088 Utilities 1,594,600 1,153,068
Other 5,618,430 4,856,213 Total operating expenses 61,737,614
42,684,563
Income from operations 13,411,982
15,223,164 Other income (expense): Interest income 16,384
134,156 Interest expense (3,416,911 ) (2,640,987 ) Gain on change
in fair value of derivative instruments 145,374 - Minority
interests (294,000 ) (147,000 ) Gain on sale of property and other
180,506 (73,896 )
Income from continuing operations
before income taxes 10,043,335 12,495,437 Income taxes
3,414,734 3,873,585 Income from continuing operations
6,628,601 8,621,852 Loss from discontinued operations, net of
income taxes of $718,663 and $433,607 (1,420,504 ) (961,185 )
Net income $ 5,208,097 $ 7,660,667 Basic earnings
(loss) per share: Income from continuing operations $ 0.72 $ 1.09
Loss from discontinued operations (0.15 ) (0.12 ) Net income $ 0.56
$ 0.97
Diluted earnings (loss) per share: Income from
continuing operations $ 0.70 $ 1.02 Loss from discontinued
operations (0.15 ) (0.11 ) Net income $ 0.55 $ 0.91
Weighted
average number of common shares outstanding: Basic 9,265,784
7,931,121 Diluted 9,427,397 8,413,183
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, New Orleans, Charlotte, Dallas, Houston,
Minneapolis and other cities operate 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
operates a media division, ED Publications, and owns the adult
Internet membership Website couplestouch.com as well as 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 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 ricks.com.
RCI Hospitality (NASDAQ:RICK)
Historical Stock Chart
From Jun 2024 to Jul 2024
RCI Hospitality (NASDAQ:RICK)
Historical Stock Chart
From Jul 2023 to Jul 2024