RICK RCI Hospitality Holdings Inc

Rick’s Cabaret International, Inc. (NASDAQ: RICK) today reported consolidated total revenues of $20 million for its first quarter ending Dec. 31, 2009, a 16.8 percent increase over the same period a year ago. The increase was primarily attributed to a 14.5 percent increase in same store sales plus revenues from new nightclubs in Austin and Ft. Worth.

Net income attributable to Rick’s shareholders for the period was $782,688, compared with $790,832 in the same quarter in the previous year or eight cents per fully diluted share, the same as in 2009. Income from continuing operations before income tax was $1.4 million for the quarter, compared with $1.6 million for the same quarter in the previous year.

Eric Langan, President and CEO of Rick’s Cabaret International, said net income was impacted by expenses associated with acquisition activities and aggressive marketing costs, which totaled $2.9 million compared with $1.2 million in the same quarter one year ago.

“These expenses are largely behind us now and we are on track with our earnings guidance,” Mr. Langan said.

“Our income was impacted by a very aggressive and successful campaign in Las Vegas to capture market share and prepare for upcoming national conventions,” Mr. Langan said. “This program is already paying off because we had a profit of about $100,000 in Las Vegas in January, and we have now been able to significantly lower our Vegas marketing costs. We also spent considerable sums on marketing in advance of the Super Bowl, Pro-Bowl and NBA All-Star Game, and for the launch of newly acquired clubs. These costs have now been largely eliminated.”

Mr. Langan will discuss the results in a conference call at 4:30 p.m. ET today. The call is being webcast by Vcall and can be accessed at the Rick’s Cabaret website, ricks.com or www.InvestorCalendar.com. The toll free Live Participant Dial In number is 877-407-8033, while international callers should use 201-689-8033. The toll free replay number 877-660-6853, while international callers should use 201-612-7415. Replay passcodes required for playback are: Account #: 286 and Conference ID #: 344435.

   

RICK'S CABARET INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF INCOME

 

Three Months Ended

December 31,

2009

 

2008

  (UNAUDITED) Revenues: Sales of alcoholic beverages $ 8,049,465   $ 6,633,571 Sales of food and merchandise 1,590,011 1,420,066 Service revenues 9,292,249 8,139,890 Internet revenues 145,005 176,763 Media revenues 256,757 183,636 Other   671,099   579,769 Total revenues 20,004,586 17,133,695   Operating expenses: Cost of goods sold 2,456,107 2,229,474 Salaries and wages 4,310,305 4,220,886 Stock-based compensation 44,037 20,044 Other general and administrative: Taxes and permits 2,835,564 2,319,300 Charge card fees 346,188 338,541 Rent 993,133 917,962 Legal and professional 649,609 504,049 Advertising and marketing 2,938,173 1,172,371 Depreciation and amortization 842,358 844,352 Insurance 261,851 239,237 Utilities 405,869 428,918 Other   1,535,644   1,422,340 Total operating expenses   17,618,838   14,657,474   Income from operations 2,385,748 2,476,221   Other income (expense): Interest income 3,673 5,734 Interest expense (1,028,583 ) (833,471 ) Gain on change in fair value of derivative instruments   44,275   -   Income from continuing operations before income taxes 1,405,113 1,648,484   Income taxes   513,548   576,746   Income from continuing operations 891,565 1,071,738 Loss from discontinued operations, net of income taxes of $19,899 and $111,680   (35,377 )   (207,406 )   Net income 856,188 864,332 Less: net income attributable to noncontrolling interests     (73,500 )   (73,500 ) Net income attributable to Rick’s Cabaret International, Inc. $ 782,688 $ 790,832 Basic earnings (loss) per share attributable to Rick’s shareholders: Income from continuing operations $ 0.09 $ 0.11 Loss from discontinued operations   (0.00 )   (0.02 ) Net income $ 0.08 $ 0.08 Diluted earnings (loss) per share attributable to Rick’s shareholders: Income from continuing operations $ 0.09 $ 0.10 Loss from discontinued operations   (0.00 ) (0.02 ) Net income $ 0.08 $ 0.08   Weighted average number of common shares outstanding: Basic 9,370,175 9,366,033 Diluted 9,385,209 9,599,954  

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.

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.