Rick’s Cabaret International Inc. Takes Steps to End Las Vegas Club Losses by Curtailing Its Operation
April 12 2011 - 1:46PM
Business Wire
Rick’s Cabaret International, Inc. (NASDAQ: RICK) said
today it has sharply reduced operations at its Las Vegas location
in order to eliminate losses as it seeks a buyer for the
property.
“We have done everything possible to make this location viable
since its acquisition in 2008 and we now believe it is in our
shareholders’ best interests not to continue these efforts,” said
Eric Langan, President and CEO of Rick’s Cabaret. “We do not
believe the Las Vegas market itself will return to its former
strength in the near future, and thus it is more logical for us to
use our financial and management resources to focus on viable
acquisitions and grow our other properties. While the curtailment
of operations in Las Vegas will result in a top-line revenue
decline for the company, the bottom line benefit will be immediate,
and we will make use of potential future tax benefits.”
About Rick’s Cabaret: Rick’s Cabaret International, Inc.
(NASDAQ: RICK) is home to 22 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 www.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. Additional
factors that could cause the Company’s results to differ materially
from those described in the forward-looking statements are
described in forms filed with the SEC from time to time and
available at www.ricksinvestor.com or on the SEC's internet website
at www.sec.gov. 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
www.ricksinvestor.com.
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