HOUSTON, Janu. 18, 2012
/PRNewswire/ -- Wholly owned subsidiaries of Rick's Cabaret
International, Inc. (NASDAQ: RICK), the nation's leading group
of upscale gentlemen's clubs, have completed the purchase of the
Silver City Cabaret, an adult nightclub on Stemmons Freeway
near Love Field, and related real estate. The acquisition
brings to nine the number of clubs operated by subsidiaries of
Rick's Cabaret in the Dallas/Ft. Worth Metroplex.
(Logo:
http://photos.prnewswire.com/prnh/20110418/MM85342LOGO)
The subsidiaries paid an aggregate total of $9.0 million for the club and real estate, with
$1.0 million in cash and $8.0 million in the form of promissory notes
payable over 11 years at an interest rate of 5.5 percent with a
one-time adjustment provision.
"We have purchased both a fine gentlemen's club in a terrific
location as well as the potential to create a great new
entertainment complex at the site," said Eric Langan, President and CEO of Rick's
Cabaret. He noted that the club occupies just 14,000 square feet of
a 54,000 square foot building that the company plans
to develop into a sports bar and after-hours nightclub.
Mr. Langan said he will announce a rebranding program for the
Silver City Cabaret shortly, along with plans for a grand
opening. "Meanwhile, as of today we are open with the famous
Rick's Cabaret-style of unmatched hospitality and service that
characterize our clubs around the nation," he added.
A related transaction involving property at 1449 Inwood Road in
Dallas is expected to close next
month.
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.
Forward-looking Statements: Certain statements contained
in this release regarding Rick's Cabaret 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 the company or its 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 company. Accordingly, the statements
are subject to significant risks, uncertainties and contingencies,
which could cause the company's 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, risks and uncertainties associated with (i) operating
and managing an adult business, (ii) the business climates in
cities where the company operates, (iii) the success
or lack thereof in launching and building the company's
businesses, (iv) the operational and financial results of the
company's adult nightclubs, (v) conditions relevant to real estate
transactions, (vi) the loss of key personnel, and (vii) laws
governing the operation of adult entertainment businesses.
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. Unless required by law, Rick's Cabaret does
not undertake any obligation to update publicly any forward-looking
statements, whether as a result of new information, future events,
or otherwise.
SOURCE Rick's Cabaret International, Inc.