HOUSTON, May 10, 2012 /PRNewswire/ -- Rick's Cabaret
International, Inc. (NASDAQ:RICK), the nation's only publicly
traded group of gentlemen's clubs, reported revenues of
$25.4 million for the quarter ended
March 31, 2012, a 17.8 percent
increase over the same period last year. Operating income was
$4.5 million, compared with
$5.6 million in the same period last
year, a decrease primarily due to one-time legal expenses of
$1.8 million.
(Logo:
http://photos.prnewswire.com/prnh/20110418/MM85342LOGO)
Fully diluted earnings per share for the quarter were
22 cents, compared with 29 cents in the same quarter a year ago. The
one-time legal expense reduced per share earnings by 12 cents.
"Our new clubs are adding revenues as expected. We are
continuing to tighten cost controls and will maintain that pressure
throughout our operations," said Eric
Langan, President and CEO of Rick's Cabaret
International. Mr. Langan will discuss the results at
4:30 pm ET today during a conference
call for investors. The participant dial-in number is 877-407-8033
(domestic) or 201-689-8033 (international).
The increase in total revenues was primarily attributable to
clubs acquired during the last year and an increase in same-store
sales. Revenues improved as a result of pricing plans and marketing
programs implemented at the club level.
Total operating expenses during the quarter increased to
$20.9 million from $16 million, primarily due to increases in cost
of goods sold and payroll costs for the increased employee
headcount at new clubs acquired in the past year. Payroll for
same-location-same-period of club operations was $3.8 million compared to $3.6 million for the same period a year ago.
Without the legal settlement, the operating margin would have been
24.7 percent, compared with 25.9 percent last year. Margins were
also impacted by an increase in higher-end "bottle sales" revenues
that carry a lower gross margin compared with single drink
sales.
Adjusted EBITDA* for the three months ended March 31, 2012, without the lawsuit settlement
would have been $7.5 million versus
$6.9 million last year,
*Adjusted EBITDA is a financial statement measure 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, and 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 STATEMENTS OF INCOME
|
|
(in
thousands, except per share data)
|
FOR THE
THREE MONTHS
ENDED
MARCH 31,
|
|
FOR THE
SIX MONTHS
ENDED
MARCH 31,
|
|
|
|
|
|
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
(UNAUDITED)
|
|
(UNAUDITED)
|
Revenues:
|
|
|
|
|
|
|
|
Sales of alcoholic beverages
|
$
10,406
|
|
$
8,405
|
|
$
19,322
|
|
$
16,163
|
Sales of food and merchandise
|
2,335
|
|
1,879
|
|
4,333
|
|
3,578
|
Service revenues
|
11,281
|
|
10,076
|
|
21,167
|
|
19,084
|
Internet revenues
|
100
|
|
120
|
|
201
|
|
245
|
Media revenues
|
176
|
|
192
|
|
359
|
|
409
|
Other
|
1,116
|
|
907
|
|
2,050
|
|
1,768
|
Total revenues
|
25,414
|
|
21,579
|
|
47,432
|
|
41,247
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Cost of goods sold
|
3,390
|
|
2,665
|
|
6,322
|
|
5,083
|
Salaries and wages
|
5,204
|
|
4,460
|
|
10,130
|
|
8,821
|
Stock compensation
|
12
|
|
-
|
|
21
|
|
-
|
Other general and administrative:
|
|
|
|
|
|
|
|
Taxes and permits
|
3,953
|
|
3,306
|
|
7,404
|
|
6,221
|
Charge card fees
|
373
|
|
321
|
|
681
|
|
642
|
Rent
|
721
|
|
773
|
|
1,424
|
|
1,549
|
Legal and professional
|
741
|
|
472
|
|
1,441
|
|
912
|
Advertising and marketing
|
1,040
|
|
842
|
|
2,035
|
|
1,813
|
Insurance
|
347
|
|
280
|
|
638
|
|
549
|
Utilities
|
406
|
|
380
|
|
807
|
|
745
|
Depreciation and amortization
|
1,190
|
|
949
|
|
2,310
|
|
1,854
|
Settlement of lawsuit
|
1,831
|
|
-
|
|
1,831
|
|
-
|
Other
|
1,750
|
|
1,541
|
|
3,568
|
|
3,021
|
Total operating expenses
|
20,958
|
|
15,989
|
|
38,612
|
|
31,210
|
Operating
income
|
4,456
|
|
5,590
|
|
8,820
|
|
10,037
|
|
|
|
|
|
|
|
|
Other
income (expense):
|
|
|
|
|
|
|
|
Interest income
|
1
|
|
44
|
|
3
|
|
56
|
Interest expense
|
(1,106)
|
|
(1,110)
|
|
(2,079)
|
|
(2,234)
|
Gain on change in fair value of derivative
instruments
|
40
|
|
333
|
|
138
|
|
481
|
Income
from continuing operations before income taxes
|
3,391
|
|
4,857
|
|
6,882
|
|
8,340
|
Income
taxes
|
1,134
|
|
1,573
|
|
2,342
|
|
2,709
|
Income
from continuing operations
|
2,257
|
|
3,284
|
|
4,540
|
|
5,631
|
Loss from
discontinued operations, net of income taxes
|
(87)
|
|
(308)
|
|
(133)
|
|
(526)
|
Net
income
|
2,170
|
|
2,976
|
|
4,407
|
|
5,105
|
Less: net
income attributable to noncontrolling interests
|
(53)
|
|
(53)
|
|
(106)
|
|
(107)
|
Net income
attributable to Rick's Cabaret International, Inc.
|
$
2,117
|
|
$
2,923
|
|
$
4,301
|
|
$
4,998
|
Basic
earnings (loss) per share attributable to Rick's
shareholders:
|
|
|
|
|
|
|
|
Income from continuing operations
|
$
0.23
|
|
$
0.33
|
|
$
0.46
|
|
$
0.55
|
Loss from discontinued operations
|
$
(0.01)
|
|
$
(0.03)
|
|
$
(0.01)
|
|
$
(0.05)
|
Net income
|
$
0.22
|
|
$
0.29
|
|
$
0.44
|
|
$
0.50
|
Diluted
earnings (loss) per share attributable to Rick's
shareholders:
|
|
|
|
|
|
|
|
Income from continuing operations
|
$
0.23
|
|
$
0.32
|
|
$
0.46
|
|
$
0.55
|
Loss from discontinued operations
|
$
(0.01)
|
|
$
(0.03)
|
|
$
(0.01)
|
|
$
(0.05)
|
Net income
|
$
0.22
|
|
$
0.29
|
|
$
0.44
|
|
$
0.50
|
Weighted
average number of common shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
9,720
|
|
9,937
|
|
9,703
|
|
9,990
|
Diluted
|
9,731
|
|
10,771
|
|
9,710
|
|
10,004
|
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/Ft. Worth, Houston, Minneapolis, Indianapolis and other cities as "Rick's
Cabaret," "XTC," "Club Onyx" and "Tootsie's Cabaret" and other
brand names. Sexual contact is not permitted at any 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. Twitter: @rickscabaret; Facebook:
http://www.facebook.com/rickscabaretintl.
Forward-looking Statements: This document may contain
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.