HOUSTON, Aug. 9, 2011 /PRNewswire/ -- Rick's Cabaret
International, Inc. (NASDAQ: RICK), the leading group of upscale
gentlemen's clubs, had revenues of $20.8
million in its third quarter ended June 30, a 15.4 percent increase over the
$18.0 million in the same period last
year. The company reported adjusted EBITDA* of $6.0 million a 52.7 percent increase over
$3.9 million in the same period last
year.
(Logo:
http://photos.prnewswire.com/prnh/20110418/MM85342LOGO)
The company reported net income from continuing operations for
the quarter of $2.5 million, compared
with $1.1 million in 2010, with
earnings per diluted share from continuing operations of
25 cents versus 11 cents last year. After accounting for a loss
from discontinued operations including the now closed club in
Las Vegas, net income was
$888,000 versus $857,000. Net income per diluted share for both
periods was nine cents.
"With this quarter we have now put the pain of the Las Vegas situation behind us and we are well
positioned to move forward on an apples-to-apples basis," said
Eric Langan, President and
CEO of Rick's Cabaret. "Apart from the Las Vegas loss, we had a strong third quarter,
with increases in cash flows, EBITDA and income from continuing
operations. Our larger clubs across the country are doing
well and we will have a positive outlook on the remainder of the
year as long as the general economy maintains its present
levels."
Mr. Langan will discuss the third quarter results in detail at a
conference call and webcast today at 4:30 pm
EDT that can be accessed
at http://www.investorcalendar.com/IC/CEPage.asp?ID=165509 or
though the Rick's Cabaret investor website,
www.ricksinvestor.com. The toll free participant dial-in
number is 877-407-8033 (International 201-689-8033). The toll free
replay number is 877-660-6853 (international 201-612-7415). Replay
pass codes required for playback are: Account number 286 and
Conference ID 376967.
The increase in total revenues was primarily attributable to
clubs acquired during the past year, additional traffic generated
during the NBA Championship series in Dallas and Miami, and gains at the Rick's locations in
San Antonio, North Austin and Minneapolis.
Total revenues for same-location-same-period of club operations
open more than one year increased by 9.0 percent to $19.2 million in the quarter from $17.6 million for the same period last year.
Comparable club operating income was $5.7 million compared with $4.7 million last year.
Net cash generated from continuing operations was $13.7 million, compared with $12.0 million last year. Interest expense
dropped to $1.0 million from
$1.2 million.
*Adjusted EBITDA is a financial statement measure that was not
derived in accordance with GAAP. We use adjusted EBITDA (earnings
from continuing operations before interest expense, income taxes,
depreciation, amortization and impairment charges) as a non-GAAP
performance measure. In calculating adjusted EBITDA, we exclude our
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, we
exclude interest cost in our calculation of adjusted EBITDA. The
results are, therefore, without consideration of financing
alternatives of capital employed. We use adjusted EBITDA as one
guideline to assess our unleveraged performance return on our
investments. Adjusted EBITDA is also the target benchmark for our
acquisitions of nightclubs.
RICK'S
CABARET INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS
ASSETS
|
|
|
(in
thousands, except per share data)
|
|
|
June
30,
2011
|
|
September
30,
2010
|
|
|
Assets
|
|
|
(UNAUDITED)
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
$
12,356
|
|
|
|
$
18,614
|
|
|
Accounts
receivable:
|
|
|
|
|
|
|
|
|
|
Trade, net
|
|
|
840
|
|
|
|
662
|
|
|
Other, net
|
|
|
3,133
|
|
|
|
207
|
|
|
Marketable securities
|
|
|
500
|
|
|
|
-
|
|
|
Inventories
|
|
|
1,169
|
|
|
|
1,093
|
|
|
Deferred tax
asset
|
|
|
2,285
|
|
|
|
2,037
|
|
|
Prepaid expenses and other
current assets
|
|
|
1,292
|
|
|
|
333
|
|
|
Assets of discontinued
operations
|
|
|
129
|
|
|
|
4,629
|
|
|
Total current
assets
|
|
|
21,704
|
|
|
|
27,575
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment,
net
|
|
|
62,507
|
|
|
|
56,900
|
|
|
|
|
|
|
|
|
|
|
|
|
Other assets:
|
|
|
|
|
|
|
|
|
|
Goodwill and indefinite
lived intangibles, net
|
|
|
63,706
|
|
|
|
61,835
|
|
|
Definite lived
intangibles, net
|
|
|
904
|
|
|
|
1,139
|
|
|
Other
|
|
|
2,987
|
|
|
|
922
|
|
|
Total other
assets
|
|
|
67,597
|
|
|
|
63,896
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
$
151,808
|
|
|
|
$
148,371
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
(in
thousands, except per share data)
|
|
|
|
June
30,
2011
|
|
|
September 30,
2010
|
|
|
|
Liabilities
and Stockholders' Equity
|
|
|
|
|
(UNAUDITED)
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
|
|
|
$
782
|
|
|
$
699
|
|
|
Accrued
liabilities
|
|
|
|
|
3,187
|
|
|
4,313
|
|
|
Texas patron tax
liability
|
|
|
|
|
6,136
|
|
|
3,955
|
|
|
Current portion of
derivative liabilities
|
|
|
|
|
1,143
|
|
|
1,276
|
|
|
Current portion of
long-term debt
|
|
|
|
|
6,238
|
|
|
5,461
|
|
|
Liabilities of
discontinued operations
|
|
|
|
|
127
|
|
|
2,995
|
|
|
Total current
liabilities
|
|
|
|
|
17,613
|
|
|
18,699
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred tax
liability
|
|
|
|
|
21,275
|
|
|
15,288
|
|
|
Other long-term
liabilities
|
|
|
|
|
769
|
|
|
719
|
|
|
Long-term debt
|
|
|
|
|
30,699
|
|
|
34,803
|
|
|
Derivative liabilities at
fair value, less current portion
|
|
|
|
|
238
|
|
|
1,243
|
|
|
Total
liabilities
|
|
|
|
|
70,594
|
|
|
70,752
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Temporary equity - Common
stock, subject to put rights 84 and 198 shares,
respectively
|
|
|
|
|
1,932
|
|
|
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; 9,723 and 9,766 shares issued and
outstanding, respectively
|
|
|
|
|
97
|
|
|
98
|
|
|
Additional paid-in
capital
|
|
|
|
|
62,446
|
|
|
62,326
|
|
|
Accumulated other
comprehensive loss
|
|
|
|
|
(5)
|
|
|
-
|
|
|
Retained
earnings
|
|
|
|
|
13,401
|
|
|
7,515
|
|
|
Total Rick's permanent
stockholders' equity
|
|
|
|
|
75,939
|
|
|
69,939
|
|
|
Noncontrolling
interests
|
|
|
|
|
3,343
|
|
|
3,314
|
|
|
Total permanent
stockholders' equity
|
|
|
|
|
79,282
|
|
|
73,253
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
|
|
|
|
$
151,808
|
|
|
$
148,371
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RICK'S
CABARET INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF
INCOME
|
|
(in
thousands, except per share data)
|
FOR THE
THREE MONTHS
ENDED JUNE
30,
|
|
FOR THE NINE
MONTHS
ENDED JUNE
30,
|
|
|
|
|
|
|
|
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
(UNAUDITED)
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
Sales of
alcoholic beverages
|
$
8,149
|
|
$
7,029
|
|
$
24,312
|
|
$
21,371
|
|
Sales of
food and merchandise
|
1,891
|
|
1,578
|
|
5,469
|
|
4,648
|
|
Service
revenues
|
9,553
|
|
8,331
|
|
28,637
|
|
25,507
|
|
Internet
revenues
|
113
|
|
144
|
|
359
|
|
433
|
|
Media
revenues
|
176
|
|
203
|
|
585
|
|
771
|
|
Other
|
911
|
|
737
|
|
2,678
|
|
2,202
|
|
Total
revenues
|
20,793
|
|
18,022
|
|
62,040
|
|
54,932
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
Cost of
goods sold
|
2,710
|
|
2,254
|
|
7,793
|
|
6,887
|
|
Salaries and
wages
|
4,683
|
|
4,109
|
|
13,503
|
|
12,074
|
|
Stock
compensation
|
-
|
|
44
|
|
-
|
|
132
|
|
Other
general and administrative:
|
|
|
|
|
|
|
|
|
Taxes and
permits
|
3,101
|
|
2,750
|
|
9,333
|
|
8,426
|
|
Charge card
fees
|
405
|
|
315
|
|
1,047
|
|
907
|
|
Rent
|
756
|
|
668
|
|
2,305
|
|
1,957
|
|
Legal and
professional
|
635
|
|
854
|
|
1,547
|
|
2,207
|
|
Advertising
and marketing
|
838
|
|
665
|
|
2,651
|
|
2,465
|
|
Insurance
|
300
|
|
244
|
|
851
|
|
687
|
|
Utilities
|
394
|
|
349
|
|
1,143
|
|
1,077
|
|
Depreciation
and amortization
|
980
|
|
837
|
|
2,855
|
|
2,363
|
|
Other
|
1,626
|
|
1,419
|
|
4,646
|
|
4,341
|
|
Total
operating expenses
|
16,428
|
|
14,508
|
|
47,674
|
|
43,523
|
|
Operating income
|
4,365
|
|
3,514
|
|
14,366
|
|
11,409
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
Interest
income and other
|
2
|
|
5
|
|
57
|
|
11
|
|
Interest
expense
|
(1,033)
|
|
(1,231)
|
|
(3,170)
|
|
(3,227)
|
|
Gain on
settlement of debt
|
903
|
|
-
|
|
903
|
|
-
|
|
Gain (loss)
on change in fair value of derivative instruments
|
(216)
|
|
(407)
|
|
266
|
|
22
|
|
Income from continuing
operations before income taxes
|
4,021
|
|
1,881
|
|
12,422
|
|
8,215
|
|
Income taxes
|
1,500
|
|
762
|
|
4,231
|
|
2,869
|
|
Income from continuing
operations
|
2,521
|
|
1,119
|
|
8,191
|
|
5,346
|
|
Loss from discontinued
operations, net of income taxes
|
(1,580)
|
|
(202)
|
|
(2,146)
|
|
(555)
|
|
Net income
|
941
|
|
917
|
|
6,045
|
|
4,791
|
|
Less: net income attributable to
noncontrolling interests
|
(53)
|
|
(60)
|
|
(159)
|
|
(207)
|
|
Net income attributable to
Rick's Cabaret International, Inc.
|
$
888
|
|
$
857
|
|
$
5,886
|
|
$ 4,584
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per share
attributable to Rick's shareholders:
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
$
0.25
|
|
$
0.11
|
|
$
0.81
|
|
$
0.54
|
|
Loss from
discontinued operations
|
$
(0.16)
|
|
$
(0.02)
|
|
$
(0.22)
|
|
$
(0.06)
|
|
Net
income
|
$
0.09
|
|
$
0.09
|
|
$
0.59
|
|
$
0.48
|
|
Diluted earnings (loss) per
share attributable to Rick's shareholders:
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
$
0.25
|
|
$
0.11
|
|
$
0.80
|
|
$
0.53
|
|
Loss from
discontinued operations
|
$
(0.16)
|
|
$
(0.02)
|
|
$
(0.21)
|
|
$
(0.06)
|
|
Net
income
|
$
0.09
|
|
$
0.09
|
|
$
0.59
|
|
$
0.48
|
|
Weighted average number of
common shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
9,924
|
|
9,905
|
|
9,968
|
|
9,546
|
|
Diluted
|
9,941
|
|
9,958
|
|
9,983
|
|
9,876
|
|
|
|
|
|
|
|
|
|
|
|
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, 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.