Rick’s Cabaret International, Inc. Acquires “Joy of Austin” Gentlemen’s Club
December 21 2009 - 9:00AM
Business Wire
Rick’s Cabaret International, Inc. (NASDAQ: RICK), the
nation’s leading operator of upscale gentlemen’s clubs, said today
it has purchased an adult nightclub located just off Interstate 35
north of Austin, Texas.
The company estimates the new location will add about $800,000
annually in earnings before income tax, depreciation and
amortization (EBITDA).
Total purchase price for the club currently known as Joy of
Austin was $5.2 million. Rick’s Cabaret paid $2.7 million in
cash, plus five year seller notes of $1.85 million at 4.75 percent
interest, and assumption of $650,000 in existing mortgage debt. The
transaction includes the business and real property.
Eric Langan, President and CEO of Rick’s Cabaret, said:
“We have long believed the Austin market is ideal for the Rick’s
Cabaret business model. The location we have purchased is more
attractive from the standpoint of visibility and accessibility than
our previous location in this market.”
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.
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