RICK'S CABARET INTERNATIONAL, INC. REPORTS RECORD REVENUES IN ITS FOURTH QUARTER DRIVEN BY NEW ACQUISITIONS AND POSITIVE SAME CLUB GROWTH
HOUSTON - (October 9, 2008) - Rick's Cabaret International,
, the premier operator of upscale gentlemen's clubs, had record nightclub revenues in its fourth quarter ending September 30, 2008 of $16.6 million, an increase of 89 percent over the previous year total of just under $8.8 million.
The company also announced a modest gain in comparable same- club-same-period sales compared with the previous year, driven by a strong performance of the Rick's Cabaret-New York City club in Midtown Manhattan. The previous quarterly record for nightclub revenues of
$15.89 million was reported in the third quarter of this year.
The company said sales at its 13 clubs open more than one year were $8,826,436, compared with $8,789,258, a .43 percent increase. Rick's Cabaret President and CEO Eric Langan said the comparable sales results were hurt by the impact of Hurricane Ike, which shut the company's five clubs in the Houston market for as much as a week causing an estimated loss of approximately $160,000 in revenues. Without this loss in revenues the company estimates comparable club growth would have been about 2.2 percent.
"Based on the nightclub revenues and additional revenues from our media and internet divisions we expect to come in at around $60 million in revenues for the year, which we projected in the guidance given in our last conference call," Mr. Langan said. The company will report its full-year results in the latter part of December, as usual, he said.
Mr. Langan also reaffirmed the company's capability, if it became necessary, to repurchase the outstanding stock put options issued in connection with recent acquisitions. "We estimate that approximately $3.8 million of our cash would be required in fiscal
2009 to redeem 171,000 shares that could be put; in fiscal 2010 it would require only about $5.5 million to fully redeem all 244,000 shares that could be put under the terms of the options. This assumes a full purchase of the puts with no stock to be sold into the market.
We are confident that we will be able to redeem all of the existing put options with our existing and anticipated free cash flow. We currently have approximately $4 million in cash on hand and are generating significant new cash each month. It is important to remember that in return for these options we got solid assets."
Rick’s Cabaret International, Inc. (NASDAQ: RICK) operates upscale adult nightclubs serving primarily businessmen and professionals that offer live adult entertainment, restaurant and bar operations. The company owns, operates or licenses adult nightclubs in New York City, Miami, Philadelphia, New Orleans, Charlotte, Dallas, Houston, Minneapolis and other cities 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 Web site, couplestouch.com
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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 [email protected]
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.ricks.com.
Media Contact: Allan Priaulx, 212-338-0050, [email protected]