HOUSTON, May 10, 2011 /PRNewswire/ -- Rick's Cabaret
International, Inc. (NASDAQ: RICK), the nation's leading group of
upscale gentlemen's clubs, today reported total revenues for its
second quarter ended March 31, 2011
of $22.8 million, compared with
$22.4 million for the same period
last year. Rick's Cabaret had total net income for the quarter of
$2.9 million, the same as in the
previous year, with fully diluted earnings per share of
29 cents, compared with 31 cents last year. Adjusted EBITDA
(earnings before income tax, depreciation and amortization) for the
quarter rose to $6.6 million from
$6.4 million in 2010.
(Logo:
http://photos.prnewswire.com/prnh/20110418/MM85342LOGO)
The company will hold an investor conference call at
4:30 p.m. EDT today at which
President and CEO Eric Langan
will discuss the results. The toll-free domestic call in
number is 877-407-8033 and a webcast of the call is available at
www.ricksinvestor.com or
http://www.investorcalendar.com/IC/CEPage.asp?ID=164373.
Following the call the company will hold a "Due Diligence Ball" at
its New York City Club (50 West 33rd Street) for investors and
other interested persons.
"We had a solid quarter and I'm looking forward to discussing it
in detail with our investors today," said Mr. Langan. "Despite a
big ice storm in Texas that
weakened revenues anticipated from this year's Super Bowl compared
with 2010, we still did very well for the quarter and we are happy
with our overall club results. We are also pleased with the
Adjusted EBITDA number, which is a key metric we use to measure our
performance.
"We have begun to eliminate losses at our Las Vegas location through the sharp reduction
in operations we announced last month as we seek a buyer for the
club. We believe that we did everything possible to make the
club work, but the Las Vegas
market remains troubled and we believe it is now in our
shareholders' best interests to exit," Mr. Langan said. "Once
our exit from this market it is complete we will have a better idea
how we will do for the remainder of the year."
For the six-month period ending March
31st Rick's Cabaret had consolidated total revenues of
$43.7 million compared to
$42.4 million for the six months
ended March 31, 2010. Six month
net income attributable to Rick's Cabaret International Inc. was
$5.0 million, compared with
$3.7 million during the first six
months of last year. Adjusted EBITDA for the six months ended
March 31st was $11.9 million, compared with $9.5 million last year.
Note: Adjusted EBITDA is a financial statement measure
that was not derived in accordance with GAAP. The company uses
Adjusted EBITDA (earnings before interest expense, income taxes,
depreciation, amortization and impairment charges) as a non-GAAP
performance measure. In calculating adjusted EBITDA, the company
excludes the largest recurring non-cash charge, depreciation,
amortization and impairment charges. Adjusted EBITDA provides a
core operational performance measurement that compares results
without the need to adjust for Federal, state and local taxes,
which have considerable variation between domestic
jurisdictions. Also, the company excludes interest cost
in the calculation of Adjusted EBITDA. The results are, therefore,
without consideration of financing alternatives of capital
employed. The company uses Adjusted EBITDA as one guideline to
assess unleveraged performance return on investments. Adjusted
EBITDA is also the target benchmark for acquisitions of
nightclubs.
|
RICK'S
CABARET INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS
ASSETS
|
|
|
(in
thousands, except per share data)
|
|
|
March
31,
2011
|
|
September
30,
2010
|
|
|
|
Assets
|
|
|
(UNAUDITED)
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
$
17,344
|
|
|
|
$
18,817
|
|
|
|
Accounts
receivable:
|
|
|
|
|
|
|
|
|
|
|
Trade, net
|
|
|
859
|
|
|
|
662
|
|
|
|
Other, net
|
|
|
284
|
|
|
|
206
|
|
|
|
Marketable securities
|
|
|
485
|
|
|
|
-
|
|
|
|
Inventories
|
|
|
1,136
|
|
|
|
1,100
|
|
|
|
Deferred tax
asset
|
|
|
2,037
|
|
|
|
1,503
|
|
|
|
Prepaid expenses and other
current assets
|
|
|
1,620
|
|
|
|
871
|
|
|
|
Assets of nightclub held
for sale
|
|
|
3,035
|
|
|
|
3,160
|
|
|
|
Total current
assets
|
|
|
26,800
|
|
|
|
26,319
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment,
net
|
|
|
59,632
|
|
|
|
57,915
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other assets:
|
|
|
|
|
|
|
|
|
|
|
Goodwill and indefinite
lived intangibles, net
|
|
|
63,226
|
|
|
|
62,076
|
|
|
|
Definite lived
intangibles, net
|
|
|
916
|
|
|
|
1,139
|
|
|
|
Other
|
|
|
1,064
|
|
|
|
922
|
|
|
|
Total other
assets
|
|
|
65,206
|
|
|
|
64,137
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
$
151,638
|
|
|
|
$ 148,371
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
|
(in
thousands, except per share data)
|
March
31,
2011
|
September
30,
2010
|
|
|
Liabilities
and Stockholders' Equity
|
(UNAUDITED)
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
740
|
$
700
|
|
|
Accrued
liabilities
|
4,369
|
4,414
|
|
|
Texas patron tax
liability
|
5,446
|
3,955
|
|
|
Current portion of
derivative liabilities
|
1,015
|
1,276
|
|
|
Current portion of
long-term debt
|
6,223
|
5,461
|
|
|
Liabilities of nightclub
held for sale
|
2,723
|
2,582
|
|
|
Total current
liabilities
|
20,516
|
18,388
|
|
|
|
|
|
|
Deferred tax
liability
|
16,818
|
15,566
|
|
|
Other long-term
liabilities
|
752
|
719
|
|
|
Long-term debt
|
32,078
|
34,803
|
|
|
Derivative liabilities at
fair value, less current portion
|
417
|
1,243
|
|
|
Total
liabilities
|
70,581
|
70,719
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
Temporary equity - Common
stock, subject to put rights 102 and 198 shares,
respectively
|
3,676
|
4,366
|
|
|
|
|
|
|
PERMANENT STOCKHOLDERS'
EQUITY:
|
|
|
|
|
Preferred stock, $.10 par,
1,000 shares authorized; none issued and outstanding
|
-
|
-
|
|
|
Common stock, $.01 par,
20,000 shares authorized; 9,677 and 9,766 shares issued and
outstanding, respectively
|
97
|
98
|
|
|
Additional paid-in
capital
|
61,447
|
62,326
|
|
|
Accumulated other
comprehensive loss
|
(20)
|
-
|
|
|
Retained
earnings
|
12,512
|
7,515
|
|
|
Total Rick's permanent
stockholders' equity
|
74,036
|
69,939
|
|
|
Noncontrolling
interests
|
3,345
|
3,347
|
|
|
Total permanent
stockholders' equity
|
77,381
|
73,286
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$
151,638
|
$
148,371
|
|
|
|
|
|
|
|
|
RICK'S
CABARET INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF INCOME
|
|
|
(in
thousands, except per share data)
|
FOR THE
THREE MONTHS
ENDED MARCH
31,
|
|
FOR THE SIX
MONTHS
ENDED
MARCH 31,
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
(UNAUDITED)
|
|
(UNAUDITED)
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
Sales of
alcoholic beverages
|
$
9,205
|
|
$
9,029
|
|
$
17,564
|
|
$
17,078
|
|
|
Sales of
food and merchandise
|
1,982
|
|
1,782
|
|
3,766
|
|
3,372
|
|
|
Service
revenues
|
10,396
|
|
10,225
|
|
19,807
|
|
19,518
|
|
|
Internet
revenues
|
120
|
|
144
|
|
246
|
|
289
|
|
|
Media
revenues
|
192
|
|
311
|
|
409
|
|
567
|
|
|
Other
|
944
|
|
948
|
|
1,905
|
|
1,620
|
|
|
Total
revenues
|
22,839
|
|
22,439
|
|
43,697
|
|
42,444
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
Cost of
goods sold
|
2,807
|
|
2,639
|
|
5,325
|
|
5,096
|
|
|
Salaries and
wages
|
4,762
|
|
4,411
|
|
9,438
|
|
8,722
|
|
|
Stock
compensation
|
-
|
|
44
|
|
-
|
|
88
|
|
|
Other
general and administrative:
|
|
|
|
|
|
|
|
|
|
Taxes and
permits
|
3,483
|
|
3,339
|
|
6,553
|
|
6,179
|
|
|
Charge card
fees
|
374
|
|
370
|
|
738
|
|
717
|
|
|
Rent
|
1,076
|
|
1,028
|
|
2,155
|
|
2,051
|
|
|
Legal and
professional
|
523
|
|
759
|
|
1,009
|
|
1,409
|
|
|
Advertising
and marketing
|
1,176
|
|
1,507
|
|
2,359
|
|
4,445
|
|
|
Insurance
|
310
|
|
260
|
|
617
|
|
524
|
|
|
Utilities
|
425
|
|
415
|
|
831
|
|
828
|
|
|
Depreciation
and amortization
|
1,125
|
|
903
|
|
2,207
|
|
1,745
|
|
|
Other
|
1,663
|
|
1,632
|
|
3,240
|
|
3,177
|
|
|
Total
operating expenses
|
17,724
|
|
17,307
|
|
34,472
|
|
34,981
|
|
|
Operating income
|
5,115
|
|
5,132
|
|
9,225
|
|
7,463
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
Interest
income
|
44
|
|
6
|
|
56
|
|
9
|
|
|
Interest
expense
|
(1,110)
|
|
(1,079)
|
|
(2,234)
|
|
(2,108)
|
|
|
Other
|
-
|
|
(3)
|
|
-
|
|
(3)
|
|
|
Gain on
change in fair value of derivative instruments
|
333
|
|
385
|
|
481
|
|
429
|
|
|
Income before income
taxes
|
4,382
|
|
4,441
|
|
7,528
|
|
5,790
|
|
|
Income taxes
|
1,406
|
|
1,423
|
|
2,423
|
|
1,917
|
|
|
Net income
|
2,976
|
|
3,018
|
|
5,105
|
|
3,873
|
|
|
Less: net income attributable to
noncontrolling interests
|
(53)
|
|
(73)
|
|
(107)
|
|
(146)
|
|
|
Net income attributable to
Rick's Cabaret International, Inc.
|
$
2,923
|
|
$
2,945
|
|
$
4,998
|
|
$
3,727
|
|
|
Basic earnings per share
attributable to Rick's shareholders:
|
|
|
|
|
|
|
|
|
|
Net
income
|
$
0.29
|
|
$
0.31
|
|
$
0.50
|
|
$
0.40
|
|
|
Diluted earnings per share
attributable to Rick's shareholders:
|
|
|
|
|
|
|
|
|
|
Net
income
|
$
0.29
|
|
$
0.31
|
|
$
0.50
|
|
$
0.40
|
|
Weighted average number of
common shares outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
9,937
|
|
9,361
|
|
9,990
|
|
9,366
|
|
|
Diluted
|
10,771
|
|
10,238
|
|
10,004
|
|
9,394
|
|
|
|
|
|
|
|
|
|
|
About Rick's Cabaret: Rick's Cabaret International, Inc.
(NASDAQ: RICK) is home to 23 upscale adult nightclubs serving
primarily businessmen and professionals that offer live
entertainment, dining and bar operations. Nightclubs in
New York City, Miami, Philadelphia, 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.
SOURCE Rick's Cabaret International, Inc.