Rick's Cabaret International Reports Net Earnings Of 12 Cents Per Share For First Quarter 2006; Conference Call Scheduled For Feb. 14, 4:30 PM



HOUSTON-
(February 14, 2006)- Rick's Cabaret International, Inc. [NASDAQ:RICK], operator of gentlemen's clubs in four states, today reported net income of 12 cents per share for its first quarter in fiscal 2006 which ended December 31, 2005, compared to no earnings per share in the first quarter of the previous year.

Eric Langan, President and CEO, said: "The opening of our upscale club in Midtown Manhattan at 50 West 33rd Street has increased brand awareness of Rick's Cabaret and enhanced market value of Rick's in all areas where we operate. The Company will continue to focus on marketing activities as we seek additional opportunities to expand nationally."

The Company said net income for the quarter ended December 31, 2005 was $525,396 compared to a net loss of $6,485 for the same three months in the previous year.

Driven by improved sales at existing clubs as well as the effect of new nightclubs in New York City and Charlotte, NC, first quarter consolidated total revenues increased by 73.45 percent to $5,779,735.

Revenues generated by existing clubs increased to $3,943,217, a 25.45 percent gain, while the new clubs contributed $1,625,499 to first quarter revenues.

Internet revenues increased by 12.7 percent to $211,019 for the quarter.

The Company noted that a pay down of long-term debt and reduced accounts payables lowered its total liabilities by $691,128 to $14,731,617 as of December 31, 2005 from $15,422,745 on September 30, 2005.

The company has scheduled a Webcast conference call February 14th at 4:30 p.m. EST to discuss first quarter results. The conference call will be available through Vcall at http://www.vcall.com/IC/CEPage.asp?ID=100384. Callers in the United States can participate by calling toll free, 877-407-8031. International callers should dial 201-689-8031. The Webcast will be available for replay until May 14, 2006. Teleconference replay is available until February 21, 2006 in the U.S. toll free at 877-660-6853 and from international points at 201-612-7415. The replay passcodes (both required for playback) are account #: 286 and conference ID #: 189940.




RICK'S CABARET INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

 

 

 

For the Three Months Ended December 31,

 

 

 

 

 

2005
(UNAUDITED)

 

2004
(UNAUDITED)

 

Continuing Operations Revenues:

 

 

 

 

 

 

 

 Sales of alcoholic beverages

 

 

 

$2,169,995

 

$1,210,276

 

Sales of food and merchandise

 

 

 

638724

 

377,102

 

Service revenues

 

 

 

2,594,801

 

1,505,952 

 

Internet revenues

 

 

 

209,157

 

187,231 

 

Other

 

 

 

167,058

 

51,650

 

Total Revenues

 

 

 

5,779,735

 

3,332,211 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

Cost of goods sold

 

 

 

709,237

 

397,770

 

Salaries and wages

 

 

 

1,669,711

 

1,207,948

 

Other general and administrative:

 

 

 

 

 

 

 

Taxes and permits

 

 

 

695,316

 

444,591

 

Charge card fees

 

 

 

102,236

 

59,687

 

Rent

 

 

 

296,846

 

71,949

 

Legal and professional

 

 

 

150,657

 

167,326

 

Advertising and marketing

 

 

 

290,668

 

141,807

 

Depreciation and amortization

 

 

 

232,482

 

126,789

 

Other

 

 

 

848,472

 

559,117

 

Total Operating Expenses

 

 

 

4,995,625

 

3,176,984

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

 

 

784,110

 

155,227

 

Other income (expense):

 

 

 

 

 

 

 

Interest income

 

 

 

6,436

 

9,188

 

Interest expense

 

 

 

(263,052)

 

(89,115)

 

Minority interests

 

 

1,387

 

463

 

Other

 

 

 

(3,485)

 

(780)

 

Net Income from continuing operations

 

 

 

525,396

 

74,983

 

 

 

 

 

 

 

 

 

Discontinued operations:

 

 

 

 

 

 

 

Loss from discontinued operations

 

 

--

 

(81,468)

 

Net income (loss)

 

 

525,396

 

(6,485)

 

 

 

 

 

 

 

 

 

Basic and diluted earnings (loss) per share:

 

 

 

 

 

 

 

Income from Continuing operations

 

 

$0.12

 

$0.02

 

Loss from discontinued operations

 

 

 

0.00

 

(0.02)

 

Net income (loss), basic

 

 

 

$0.12

 

$0.00

 

Net income (loss), diluted

 

 

 

$0.11

 

$0.00

 

Weighted average number of common shares outstanding

 

 

 

 

 

Basic

 

 

 

4,321,061

 

3,700,148

 

Diluted

 

 

 

4,599,779

 

3,700,148

 

Comprehensive income for the three months ended December 31, 2005 and 2004 was $525,396 and ($50,975), respectively.  This includes the changes in available-for-sale securities and net income (loss).


About Rick's Cabaret

Rick's Cabaret International, Inc. (NASDAQ: RICK, www.ricks.com) 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, New Orleans, Houston, Minneapolis and other cities under the names "Rick's Cabaret," "XTC," "Club Onyx" and "Hummers." No sexual contact is permitted at any of these locations. Rick's Cabaret also owns the adult Internet membership Web site, www.couplestouch.com, and a network of nine online auction sites for adult products under the flagship URL www.naughtybids.com. Rick's Cabaret common stock is traded on the NASDAQ SmallCap 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 New York City and elsewhere, the success or lack thereof in launching and building the company's businesses in New York City and elsewhere, 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 go to www.ricks.com.

Contact for further information: Allan Priaulx, 212-338-0050, ir@ricks.com