Rick's Cabaret International, Inc. Reports Third Quarter Revenue Increase To $20.8 Million and Adjusted EBITDA of $6.0 Million
HOUSTON – (August 9, 2011) – Rick’s Cabaret International, Inc.
(NASDAQ: RICK), the leading group of upscale gentlemen’s clubs, had revenues of
$20.8 million in its third quarter ended June 30, a 15.4 percent increase over
the $18.0 million in the same period last year. The company reported adjusted
EBITDA* of $6.0 million a 52.7 percent increase over $3.9 million in the same
period last year.
The company reported net income from continuing operations for the quarter of
$2.5 million, compared with $1.1 million in 2010, with earnings per diluted
share from continuing operations of 25 cents versus 11 cents last year. After
accounting for a loss from discontinued operations including the now closed club
in Las Vegas, net income was $888,000 versus $857,000. Net income per diluted
share for both periods was nine cents.
“With this quarter we have now put the pain of the Las Vegas situation behind
us and we are well positioned to move forward on an apples-to-apples basis,”
said Eric Langan, President and CEO of Rick’s Cabaret. “Apart from the Las Vegas
loss, we had a strong third quarter, with increases in cash flows, EBITDA and
income from continuing operations. Our larger clubs across the country are doing
well and we will have a positive outlook on the remainder of the year as long as
the general economy maintains its present levels.”
Mr. Langan will discuss the third quarter results in detail at a conference
call and webcast today at 4:30 pm EDT that can be accessed at
http://www.investorcalendar.com/IC/CEPage.asp?ID=165509
or though the Rick’s Cabaret investor website,
www.ricksinvestor.com . The toll
free participant dial-in number is 877-407-8033 (International 201-689-8033).
The toll free replay number is 877-660-6853 (international 201-612-7415). Replay
pass codes required for playback are: Account number 286 and Conference ID
376967.
The increase in total revenues was primarily attributable to clubs acquired
during the past year, additional traffic generated during the NBA Championship
series in Dallas and Miami, and gains at the Rick’s locations in San Antonio,
North Austin and Minneapolis.
Total revenues for same-location-same-period of club operations open more
than one year increased by 9.0 percent to $19.2 million in the quarter from
$17.6 million for the same period last year. Comparable club operating income
was $5.7 million compared with $4.7 million last year.
Net cash generated from continuing operations was $13.7 million, compared
with $12.0 million last year. Interest expense dropped to $1.0 million from $1.2
million.
*Adjusted EBITDA is a financial statement measure that was not derived in
accordance with GAAP. We use adjusted EBITDA (earnings from continuing
operations 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. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
|
(in thousands, except per share data) |
June 30, 2011
(UNAUDITED)
|
September 30, 2010 |
|
Assets
Current assets:
Cash and cash equivalents
Accounts receivable:
Trade, net
Other, net
Marketable securities
Inventories
Deferred tax asset
Prepaid expenses and other current assets
Assets of discontinued operations
Total current assets
Property and equipment, net
Other assets:
Goodwill and indefinite lived intangibles, net
Definite lived intangibles, net
Other
Total other assets
Total assets
|
$ 12,356
840
3,133
500
1,169
2,285
1,292
129
21,704
62,507
63,706
904
2,987
67,597
$ 151,808
|
$ 18,614
662
207
-
1,093
2,037
333
4,629
27,575
56,900
61,835
1,139
922
63,896
$ 148,371
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
(in thousands, except per share data) |
June 30,2011
(UNAUDITED)
|
September 30, 2010 |
|
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
Accrued liabilities
Texas patron tax liability
Current portion of derivative liabilities
Current portion of long-term debt
Liabilities of discontinued operations
Total current liabilities
Deferred tax liability
Other long-term liabilities
Long-term debt
Derivative liabilities at fair value, less current portion
Total liabilities
Commitments and contingencies
Temporary equity - Common stock, subject to put rights 84 and 198
shares, respectively
PERMANENT STOCKHOLDERS' EQUITY:
Preferred stock, $.10 par, 1,000 shares authorized; none issued and
outstanding
Common stock, $.01 par, 20,000 shares authorized; 9,723 and 9,766
shares issued and outstanding, respectively
Additional paid-in capital
Accumulated other comprehensive loss
Retained earnings
Total Rick’s permanent stockholders’ equity
Noncontrolling interests
Total permanent stockholders’ equity
Total liabilities and stockholders’ equity
|
$782
3,187
6,136
1,143
6,238
127
17,613
21,275
769
30,699
238
70,594
1,932
-
97
62,446
(5)
13,401
75,939
3,343
79,282
$ 151,808 |
$699
4,313
3,955
1,276
5,461
2,995
18,699
15,288
719
34,803
1,243
70,752
4,366
-
98
62,326
-
7,515
69,939
3,314
73,253
$ 148,371
|
RICK'S CABARET INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
|
(in thousands, except per share data) |
FOR THE THREE MONTHS
ENDED JUNE 30,
|
FOR THE NINE MONTHS
ENDED JUNE 30,
|
Revenues:
Sales of alcoholic beverages
Sales of food and merchandise
Service revenues
Internet revenues
Media revenues
Other
Total revenues
Operating expenses:
Cost of goods sold
Salaries and wages
Stock compensation
Other general and administrative:
Taxes and permits
Charge card fees
Rent
Legal and professional
Advertising and marketing
Insurance
Utilities
Depreciation and amortization
Other
Total operating expenses
Operating income
Other income (expense):
Interest income and other
Interest expense
Gain on settlement of debt
Gain (loss) on change in fair value of derivative instruments
Income from continuing operations before income taxes
Income taxes
Income from continuing operations
Loss from discontinued operations, net of income taxes
Net income
Less: net income attributable to noncontrolling interests
Net income attributable to Rick’s Cabaret International, Inc.
Basic earnings (loss) per share attributable to Rick’s shareholders:
Income from continuing operations
Loss from discontinued operations
Net income
Diluted earnings (loss) per share attributable to Rick’s
shareholders:
Income from continuing operations
Loss from discontinued operations
Net income
Weighted average number of common shares outstanding:
Basic
Diluted
|
|
2011 |
2010 |
|
(UNAUDITED) |
$ 8,149
1,891
9,553
113
176
911
20,793
2,710
4,683
-
3,101
405
756
635
838
300
394
980
1,626
16,428
4,365
2
(1,033)
903
(216)
4,021
1,500
2,521
(1,580)
941
(53)
$ 888
$ 0.25
$ (0.16)
$ 0.09
$ 0.25
$ (0.16)
$ 0.09
9,924
9,941
|
$ 7,029
1,578
8,331
144
203
737
18,022
2,254
4,109
44
2,750
315
668
854
665
244
349
837
1,419
14,508
3,514
5
(1,231)
-
(407)
1,881
762
1,119
(202)
917
(60)
$ 857
$ 0.11
$ (0.02)
$ 0.09
$0.11
$ (0.02)
$ 0.09
9,905
9,958
|
|
|
2011 |
2010 |
|
(UNAUDITED) |
$ 24,312
5,469
28,637
359
585
2,678
62,040
7,793
13,503
-
9,333
1,047
2,305
1,547
2,651
851
1,143
2,855
4,646
47,674
14,366
57
(3,170)
903
266
12,422
4,231
8,191
(2,146)
6,045
(159)
$ 5,886
$ 0.81
$(0.22)
$ 0.59
$ 0.80
$ (0.21)
$ 0.59
9,968
9,983
|
$ 21,371
4,648
25,507
433
771
2,202
54,932
6,887
12,074
132
8,426
907
1,957
2,207
2,465
687
1,077
2,363
4,341
43,523
11,409
11
(3,227)
-
22
8,215
2,869
5,346
(555)
4,791
(207)
$ 4,584
$ 0.54
$ (0.06)
$ 0.48
$ 0.53
$ (0.06)
$ 0.48
9,546
9,876
|
|
About Rick’s Cabaret: Rick’s Cabaret International, Inc. (NASDAQ: RICK)
is home to 22 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 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 [email protected] 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.
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 . 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.
Contact: Allan Priaulx, 212-338-0050,
[email protected]