Rick's Cabaret International, Inc. reports 39 cents per share non-GAAP earnings; GAAP earnings of 29 cents

HOUSTON – (May 9, 2013) – Rick’s Cabaret International, Inc. (NasdaqGM: RICK) today reported financial results for the second quarter, which ended March 31, 2013. Revenues were $28.7 million, up 13% from the $25.4 million recorded in the second quarter of 2012. Non-GAAP* net income was $3.8 million or 39 cents per share fully diluted, with GAAP net income of $2.7 million or 29 cents per share fully diluted.

Rick’s Cabaret will host a conference call to discuss the results at 4:30 p.m. EDT on May 9th. Participant dial-in is 877-407-0778 (International): 201-689-8565. The live webcast can be accessed at the company’s investor Relations website, www.ricksinvestor.com along with the company's earnings press release, financial tables and slide presentation. Following the call, a replay is available until June 9th at 877-660-6853 (International): 201-612-7415 with Conference ID 413980.

"Our growth continues as planned, with outstanding performance from our Jaguars acquisition, a terrific rollout of our new restaurant/nightclub concept in Dallas, and excellent progress on the five additional locations currently in the works," said Eric Langan, president and CEO of Rick’s Cabaret.

The increase in revenues was primarily attributable to clubs acquired during the last year, which contributed $3.7 million. Total revenues for same-location-same-period of club operations decreased slightly to $24.1 million from $25.0 million for the same period, principally due to the Super Bowl not being in a city where we have a club and also due to certain other sporting events impacted by player strikes and lower attendance.

 

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* Non-GAAP Net Income. We exclude from non-GAAP net income amortization of intangibles, patron taxes, income tax expense, impairment charges, gains and losses from asset sales, stock based compensation, litigation and other one-time legal settlements and acquisition costs, and include the Non-GAAP provision for income taxes, calculated as the tax-effect at 35% effective tax rate of the pre-tax non-GAAP income before taxes less stock-based compensation, because we believe that excluding such measures helps management and investors better understand our operating activities.

* Non-GAAP Operating Income. We exclude from Non-GAAP operating income amortization of intangibles, patron taxes, gains and losses from asset sales, stock-based compensation charges, litigation and other one-time legal settlements and acquisition costs. We believe that excluding these items assists investors in evaluating period-over-period changes in our operating income and operating margin without the impact of items that are not a result of our day-to-day business and operations.

Our Form 10-K contains additional details relative to each of the non-GAAP financial measures and is posted on our website at www.ricksinvestor.com.

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 are named "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. 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 Facebook: http://www.facebook.com/rickscabaretintl.

Forward-looking Statements: This press release 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 press release, 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

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