Rick's Cabaret International, Inc. Issues New Guidance For 2008 And Outlook For 2009
HOUSTON-(October 31, 2007)-Rick's Cabaret International,
operator of upscale gentlemen's clubs, today issued new guidance for its
revenues and income for the 2008 fiscal year and its outlook for 2009.
For its 2008 fiscal year the company said it expects to have sales of
approximately $52 million, with after tax net income of about $7 million
on which it anticipates earning 95 cents per basic share. Calendar 2008
revenues should equal about $58 million, with net income of about $9 million
and projected earnings of approximately $1.25 per share.
The company's outlook for fiscal 2009 anticipates revenues of approximately
$75 million, net income of about $13 million and earnings of about $1.70
per basic share.
These projections are based on closing two previously disclosed acquisitions
by December 31, 2007 for 51 percent interest in an adult night club in
Philadelphia and 100 percent ownership of a major club in the Southeastern
U.S., plus same store sales growth of six percent. The company has reached
a definitive agreement for the Philadelphia transaction and has signed
a letter of intent for the club in the Southeastern U.S.
In addition the projections anticipate issuance of 225,000 new shares
of common stock for the Philadelphia transaction and up to 1.2 million
shares, plus the assumption of $10 million in debt in connection with
financing other acquisitions. These projections assume the acquisition
of one additional club in 2008 and further assume completing two acquisitions
in early 2009. The 2009 outlook assumes issuing an additional 400,000
shares of common stock in connection with acquisitions. Actual financing
terms may differ from these assumptions and could affect the earnings
per share projections.
, President and CEO of Rick's Cabaret, said
factors that could impact these projections include the company's ability
to reach satisfactory terms in the definitive document for the acquisition
of the club in the Southeastern U.S., to complete its planned acquisitions
and other new acquisitions in the time assumed, to obtain satisfactory
financing on acceptable terms and conditions, and to continue to grow
revenues at existing clubs as well as any unforeseen events that may impact
the company's ability to complete the assumed acquisitions as anticipated.
These projections update the company's previous guidance issued on February
13, 2007. The company operates on a fiscal year ending September 30. Some
projections have also been stated on a calendar year basis for ease in
comparison with other companies.
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 and operates or licenses adult nightclubs in New
York City, New Orleans, Charlotte, Houston, Minneapolis and other
cities under the names "Rick's Cabaret," "XTC"
and "Club Onyx." No sexual contact is permitted at any
of these locations. Rick's Cabaret also owns the adult Internet
membership Web site, couplestouch.com,
and a network of online adult auction sites under the flagship URL
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 New York City and elsewhere; the success or lack thereof
in launching and building the company's businesses in New York City
and elsewhere; the Company's ability to identify and secure suitable
locations for new nightclubs on acceptable terms, open the anticipated
number of new nightclubs on time and within budget; achieve anticipated
rates of same-store sales; hire and train additional nightclub personnel
and integrate new nightclubs into its operations; unexpected increases
in costs of sales or employee, pre-opening or other expenses; the
economic conditions in the new markets into which the Company expands
and possible uncertainties in the customer base in these areas;
fluctuations in quarterly operating results; the impact of any negative
publicity or public attitudes; competitive pressure from other national
and regional nightclub chains; 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.
for further information: Allan Priaulx, 212-338-0050, [email protected]