Rick’s Cabaret International, Inc. Reports Record $7.65 Million Nightclub Sales in February; Same Club Comps Rise 28.2%
March 09 2010 - 9:00AM
Business Wire
Rick’s Cabaret International, Inc. (NASDAQ: RICK), the
nation’s premier operator of upscale gentlemen’s clubs, said sales
at its nightclubs in February were $7.65 million, a 34.7 percent
increase over sales of $5.58 million in February 2009.
Revenues at clubs open more than 12 months were $7.15 million, a
28.2 percent increase over sales of $5.58 million recorded at those
clubs in February 2009.
“We had the anticipated positive results during the Super
Bowl and Pro Bowl weekends in Miami and the NBA
All-Star Game in Dallas, which together contributed an
estimated $1 million in additional revenues,” said Eric
Langan, President and CEO of Rick’s Cabaret International. “We
are also pleased that we achieved strong results despite severe
snowstorms in several markets that often made it difficult for
customers to get to our clubs. Aggressive marketing programs in the
first quarter have paid off and we are continuing to benefit from
them even though marketing spending has been cut dramatically.”
Mr. Langan said that while the company continues to battle the
effects of weak economic conditions in certain markets,
particularly Philadelphia and Charlotte, the overall trend of the
company’s nightclubs reflects higher numbers of entertainers
generally and more customers coming to the clubs, who are spending
more on drinks and entertainment than they were a year ago.
On February 16, 2010 Rick's Cabaret International, Inc
announced it had signed a letter of intent to acquire the
outstanding shares of VCG Holding Corp (NASDAQ: VCGH) to
form the largest publicly traded operator of upscale gentlemen's
clubs in North America. The two companies are working on definitive
documents for this transaction.
Additional Information and Where to Find It: In
connection with the proposed merger, Rick's Cabaret International,
Inc. ("Ricks") and VCG Holding Corp. ("VCG Holding") intend to file
documents relating to the transaction with the SEC, including a
registration statement containing a joint proxy
statement/prospectus on Form S-4 to be filed by Rick's.
Investors are urged to read the joint proxy statement/prospectus
regarding the proposed merger, if and when it becomes available,
because it will contain important information. When it becomes
available, shareholders and other investors will be able to obtain
a free copy of the joint proxy statement/prospectus, and are able
to obtain free copies of other filings and furnished materials
containing information about Rick's and VCG Holding at the SEC's
internet website at www.sec.gov. Copies of the joint proxy
statement/prospectus, when it becomes available, and any SEC
filings incorporated by reference in the joint proxy
statement/prospectus can also be obtained, without charge, by
directing a request to Rick's Cabaret International, Inc., 10959
Cutten Road, Houston, Texas, 77066, telephone (281) 397-6730,
Attention: Phil Marshall, or to VCG Holding Corp., 390 Union
Boulevard, Suite 540, Lakewood, Colorado 80228, telephone (303)
934-2424, Attention: Courtney Cowgill.
Interests of Participants in the Solicitation of Proxies:
Each of the Rick's and VCG Holding and their respective directors
and executive officers may be deemed to be "participants" in the
solicitation of proxies in respect of the proposed transaction
under SEC rules. Information regarding Rick's directors and
executive officers is available in its definitive proxy statement
on Schedule 14A filed with the SEC on July 7, 2009 and in its
annual report on Form 10-K filed with the SEC on December 17, 2009
and information regarding VCG Holding's directors and executive
officers is available in its definitive proxy statement on Schedule
14A filed with the SEC on April 30, 2009. Copies of these documents
can be obtained, without charge, at the SEC's internet website at
www.sec.gov or by directing a request to the Rick's or VCG Holding,
as applicable, at the addresses above. Other information regarding
the participants in the proxy solicitation and a description of
their direct and indirect interests, by security holdings or
otherwise, will be contained in the joint proxy
statement/prospectus and other relevant materials to be filed with
the SEC when they become available.
Forward Looking Statements: Certain statements contained
in this press release regarding Rick's and VCG Holding's future
operating results or performance or business plans or prospects and
any other statements not constituting historical fact are
"forward-looking statements" subject to the safe harbor created by
the Private Securities Litigation reform Act of 1995. Where
possible, the words "believe," "expect," "anticipate," "intent,"
"would," "will," "planned," "estimated," "potential," "goal,"
"outlook," and similar expressions, as they relate to either
company or their management have been used to identify such
forward-looking statements. All forward-looking statements reflect
only current beliefs and assumptions with respect to future
business plans, prospects, decisions and results, and are based on
information currently available to the companies. Accordingly, the
statements are subject to significant risks, uncertainties and
contingencies, which could cause the companies' actual operating
results, performance or business plans or prospects to differ
materially from those expressed in, or implied by, these
statements. Such risks, uncertainties and contingencies include,
but are not limited to, statements about the benefits of the
merger, including future financial and operating results, the
companies' plans, objectives and expectations and other intentions
and other statements that are not historical facts. The following
factors, among others, could cause actual results to differ from
those set forth in the forward-looking statements: (1) the risk of
the failure of the companies' shareholders to approve the merger;
(2) the risk that the businesses would not be integrated
successfully; (3) the risk that the cost savings and any revenue
synergies from the merger may not be fully realized or may take
longer to realize than expected; (4) the risk that Rick's
applicable average trailing twenty day average stock price per
share may not equal or exceed $8.00 pursuant to the formula in the
merger agreement; (5) the applicable disruption from the merger may
make it more difficult to maintain relationships with customers,
employees ore suppliers; and general economic conditions and
uncertainties or consumer sentiment in the companies' markets.
Additional factors that could cause the companies' results to
differ materially from those described in the forward-looking
statements are described in Rick's annual report on Form 10-K filed
with the SEC December, 17, 2009 and VCG Holding's annual report on
Form 10-K, as amended, filed with the SEC June 10, 2009, and Rick's
and VCG Holding's other periodic and current reports filed with the
SEC from time to time and available on the SEC's internet website
at www.sec.gov. Unless required by law, neither Rick's nor VCG
Holding undertakes any obligation to update publicly any
forward-looking statements, whether as a result of new information,
future events, or otherwise.
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.
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