Rick's Cabaret International, Inc. Reports Record Third Quarter Revenues Exceeding $20 Million, Up 31% From Previous Year; Net Income At $1.78 Million


HOUSTON- (August 12, 2009) - Rick's Cabaret International, Inc. [NASDAQ-GM:RICK], the leading chain of upscale gentlemen's clubs nationwide, today reported record consolidated revenues of $20.9 million for its third quarter ended June 30, 2009, a 31 percent increase over the $15.9 million reported in the same period last year. The previous revenue high was $18.36 million in the second quarter of fiscal 2009.

Net after tax income was $1.78 million, compared with $1.83 million in the same quarter a year ago, a drop primarily attributed to higher marketing costs in connection with the nightclub in Las Vegas. Fully diluted income per share was 19 cents, compared with 21 cents a year ago. Compared with the results of the previous quarter ended March 31, 2009, after tax income was more than double the $839,471 reported for the second quarter and fully diluted earnings per share were also more than double the nine cents reported in the last quarter.

"We are pleased with the third quarter results, which clearly show a continuing improvement in both revenue and income," said Eric Langan, President and CEO of the company, who will discuss the quarter and outlook for the future in a webcast and conference call at 4:30 p.m., ET, August 12th. The call is being webcast by Vcall and can be accessed at the Rick's Cabaret website, www.ricks.com or www.InvestorCalendar.com. The toll free live participant dial-in number is 877-407-8033; international callers should dial 201-689-8033. The toll free replay number is 877-660-6853 (international callers dial 201-612-7415) and the call will be available until when August 19, 2009. Please enter the number 286 when asked for the account, and then conference ID number 329965.

Revenues at nightclubs open for more than a year were $14.9 million, a decline of less than one percent compared with the same period a year earlier, and a significant improvement from the 6.9 percent decline reported for the second quarter. Media division revenues increased to $238,064 from $182,452 in the same quarter a year ago.

The company reported a significant improvement in operations for the quarter at Rick’s Cabaret Las Vegas, which trimmed losses to approximately $300,000 before income taxes. Meanwhile expense reductions and more aggressive marketing campaign at this location are in place, although we anticipate the club will continue to lose money until the Las Vegas economy improves.

RICK'S CABARET INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME

FOR THE THREE MONTHS

ENDED JUNE 30,

FOR THE NINE MONTHS

ENDED JUNE 30,

2009

2008

2009

2008

(UNAUDITED)

(UNAUDITED)

Revenues:

Sales of alcoholic beverages

8,036,630

5,893,332

21,559,360

15,453,834

Sales of food and merchandise

1,653,317

1,335,247

4,633,122

3,670,545

Service revenues

10,137,435

7,722,864

26,997,164

20,321,251

Internet revenues

151,989

194,105

493,384

537,606

Media revenues

238,064

182,452

707,030

182,452

Other

717,398

612,006

1,911,553

1,610,075

Total revenues

20,934,833

15,940,006

56,301,613

41,775,763

Operating expenses:

Cost of goods sold

2,276,895

1,817,417

6,701,022

4,641,398

Salaries and wages

4,061,735

3,694,824

12,209,897

9,269,903

Stock compensation

20,044

39,270

60,132

117,810

Other general and administrative:

Taxes and permits

2,407,100

1,937,975

7,043,013

5,016,950

Charge card fees

421,524

291,683

1,203,164

739,671

Rent

853,879

461,254

2,561,064

1,090,894

Legal and professional

567,790

540,910

1,878,540

1,419,008

Advertising and marketing

3,365,079

607,414

6,178,445

1,355,438

Insurance

330,496

158,502

833,881

508,802

Utilities

381,465

349,823

1,177,504

806,809

Depreciation and amortization

808,823

584,227

2,424,480

1,606,001

Other

1,471,905

1,439,224

4,158,183

3,495,665

Total operating expenses

16,966,735

11,922,523

46,429,325

30,068,349

Operating income

3,968,098

4,017,483

9,872,288

11,707,414

Other income (expense):

Interest income

1,113

22,083

8,507

91,555

Interest expense

(811,686)

(682,788)

(2,447,989)

(1,785,344)

Loss on change in fair

value of derivative instruments

(121,904)

-

(121,904)

-

Minority interests

(73,500)

(73,500)

(220,500)

104,412

Income from continuing operations before income taxes

2,962,121

3,283,278

7,090,402

10,118,037

Income taxes

1,067,423

1,247,323

2,567,615

3,179,722

Income from continuing operations

1,894,698

2,035,955

4,522,787

6,938,315

Loss from discontinued operations, net of income taxes

(110,205)

(206,751)

(1,107,991)

(720,459)

Net income

1,784,493

1,829,204

3,414,796

6,217,856

Basic earnings per share:

Income from continuing operations

0.21

0.25

0.49

0.92

Loss from discontinued operations

(0.01)

(0.03)

(0.12)

(0.10)

Net income

0.19

0.22

0.37

0.83

Diluted earnings per share:

Income from continuing operations

0.20

0.23

0.48

0.86

Loss from discontinued operations

(0.01)

(0.02)

(0.12)

(0.09)

Net income

0.19

0.21

0.36

0.77

Weighted average number of common shares outstanding:

Basic

9,185,758

8,240,914

9,288,536

7,536,104

Diluted

9,409,562

8,860,699

9,499,015

8,238,094


About Rick's Cabaret:
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, Las Vegas, 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 Publication, and owns the adult Internet membership Web site, 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 the NASDAQ Global Market under the symbol RICK. For further information contact ir@ricks.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.ricks.com.


Media Contact: Allan Priaulx, 212-338-0050, ir@ricks.com