Rick’s Cabaret International, Inc. Says It Will Take an Impairment Charge Primarily Because of Its Las Vegas Nightclub
October 29 2010 - 4:30PM
Business Wire
Rick’s Cabaret International, Inc. (NASDAQ: RICK), the
nation’s leading chain of upscale gentlemen’s clubs, said today it
will take an impairment charge of between $20 million and $23
million in fiscal 2010, primarily because of the poor performance
of the Rick’s Cabaret Las Vegas nightclub it purchased in 2008.
The exact amount of the impairment charge, which also will
include lesser amounts from two other underperforming properties,
will be determined after a final valuation is performed and will be
recorded in the quarter ending September 30. It will be reported in
December in the company’s Form 10-K. The impairment charges will
have no effect on the company’s debt covenants under any existing
real estate loan arrangements and will not result in future cash
expenditures.
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
or visit ricksinvestor.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 ricksinvestor.com.
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