HOUSTON, Feb. 7, 2012 /PRNewswire/ -- Rick's Cabaret
International, Inc. (NASDAQ:RICK), the nation's leading group
of upscale gentlemen's clubs, had total revenues of $22.0 million in its first quarter ended
December 31, 2011, an increase of 12
percent over the same period last year. Net income
attributable to Rick's Cabaret shareholders was $2.2 million, compared with $2.1 million in the prior year, yielding
23 cents earnings per share versus
21 cents last year.
(Logo:
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The company will hold a conference to discuss results at
4:30 p.m. EST today. The call
is being webcast by Vcall and can be accessed at the Rick's
Cabaret investor website, www.ricksinvestor.com or
www.InvestorCalendar.com. The toll free participant dial-in
number is 877-407-8033 (International 201-689-8033). The toll free
replay numbers are: domestic 877-660-6853, international
201-612-7415. Required replay pass codes are: Account 286 and
Conference ID 387989. The replay will be available until
March 9, 2012.
The increase in revenues was primarily attributable to sales
increases at most of the company's existing clubs, along with sales
at new clubs acquired within the past year. As earlier
announced, comparable sales at clubs open for more than one year
rose by 6.7 percent to $20.6 million.
Cash flow generated from operating activities during the
quarter was $5.2 million, compared
with $2.9 million in the same quarter
a year earlier.
Operating income (exclusive of corporate overhead) for
same-location-same-period of club operations increased to
$5.7 million for the three months
ended December 31, 2011 from
$5.4 million for same period ended
December 31, 2010, or by 4.5 percent.
Adjusted EBITDA* for the three months ended December 31, 2011 was $5.5
million, compared with $5.3
million in the previous year.
"We had a solid quarter with better than expected revenue
increases from several of our clubs in Texas, Minnesota and the Club Onyx locations," said
Eric Langan, President and
CEO of Rick's Cabaret. "We experienced increases in some expenses
that we are now addressing in areas such as cost of goods sold;
wages, depreciation and amortization related to the new clubs;
legal; other operating costs; and taxes due to the new clubs in
Texas. We remain on track
for a strong year."
*Adjusted EBITDA is a financial statement measure that was not
derived in accordance with GAAP. We use adjusted EBITDA (earnings
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.
CONSOLIDATED
STATEMENTS OF INCOME
|
|
|
|
|
Three Months
Ended
December 31,
|
|
(in
thousands, except per share data)
|
|
|
2011
|
|
2010
|
|
|
|
|
(UNAUDITED)
|
|
Revenues:
|
|
|
|
Sales of alcoholic
beverages
|
|
|
$
8,916
|
|
|
$
7,758
|
|
Sales of food and
merchandise
|
|
|
1,997
|
|
|
1,699
|
|
Service
revenues
|
|
|
9,886
|
|
|
9,008
|
|
Internet
revenues
|
|
|
102
|
|
|
125
|
|
Media revenues
|
|
|
183
|
|
|
216
|
|
Other
|
|
|
935
|
|
|
862
|
|
Total revenues
|
|
|
22,019
|
|
|
19,668
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
|
2,932
|
|
|
2,418
|
|
Salaries and
wages
|
|
|
4,925
|
|
|
4,361
|
|
Stock-based
compensation
|
|
|
8
|
|
|
-
|
|
Other general and
administrative:
|
|
|
|
|
|
|
|
|
Taxes and
permits
|
|
|
3,447
|
|
|
2,914
|
|
Charge card
fees
|
|
|
308
|
|
|
320
|
|
Rent
|
|
|
703
|
|
|
775
|
|
Legal and
professional
|
|
|
700
|
|
|
440
|
|
Advertising and
marketing
|
|
|
995
|
|
|
971
|
|
Depreciation and
amortization
|
|
|
1,120
|
|
|
906
|
|
Insurance
|
|
|
292
|
|
|
269
|
|
Utilities
|
|
|
404
|
|
|
366
|
|
Other
|
|
|
1,818
|
|
|
1,480
|
|
Total operating
expenses
|
|
|
17,652
|
|
|
15,220
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
|
4,367
|
|
|
4,448
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
Interest income and
other
|
|
|
2
|
|
|
12
|
|
Interest
expense
|
|
|
(973)
|
|
|
(1,076)
|
|
Gain on change in fair
value of derivative instruments
|
|
|
98
|
|
|
148
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations before income taxes
|
|
|
3,494
|
|
|
3,532
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
|
1,208
|
|
|
1,153
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
|
|
2,286
|
|
|
2,379
|
|
Loss from discontinued
operations, net of income taxes
|
|
|
(48)
|
|
|
(250)
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
2,238
|
|
|
2,129
|
|
Less: net income attributable to
noncontrolling interests
|
|
|
(53)
|
|
|
(53)
|
|
Net income attributable to
Rick's Cabaret International, Inc.
|
|
|
$
2,185
|
|
|
$
2,076
|
|
Basic earnings (loss) per share
attributable to Rick's shareholders:
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
|
|
$
0.23
|
|
|
$
0.21
|
|
Loss from
discontinued operations
|
|
|
(0.00)
|
|
|
(0.00)
|
|
Net
income
|
|
|
$
0.23
|
|
|
$
0.21
|
|
Diluted earnings (loss) per
share attributable to Rick's shareholders:
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
|
|
$
0.23
|
|
|
|
$
0.21
|
|
Loss from
discontinued operations
|
|
|
(0.00)
|
|
|
|
|
(0.00)
|
|
Net
income
|
|
|
$
0.23
|
|
|
|
$
0.21
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of common shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
9,685
|
|
|
|
10,043
|
|
Diluted
|
|
|
9,687
|
|
|
|
10,045
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, Charlotte, Dallas, Houston, Minneapolis, Indianapolis 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. 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.